Complaint Review: Fairbanks Capital

Eileen, believe it or not, ..There are many out there that share your plight. If it werent for internet sites like this one I cant imagine where victims would go to get information or to vent. Most are just relieved to find out that they are not alone. Although stories have been done, the word has certainly not be spread enough on television to reach the masses. This site was one of the first that I was able to go to and find anything negative about Fairbanks. I sat in read in shock and disbelief that it many are the target, not just one. If you want to do something productive with your anger please direct it to those that have allowed this tragedy to continue ie: Fairbanks, PMI, government, etc. I believe that this site maintains its open forum for those that still believe in the right to freedom of speech and is and will be a integral piece of the puzzle enabling the shut down of predatory lenders and predatory servicers.

Where are you getting your information that badbusinessbureau.com does not give a darn? Paid off so that no one will hear your story?

Miss Eileen, I have all the sympathy in the world for your plight. Being a victim does NOT give you the right to make false and nasty accusations.

This site works with law-enforcement agencies up to the Federal levelfor YOU. These enforcement agencies monitor this site for crooks and predators to protect YOU.

This site fights numerous costly lawsuits every day to protect your right to post your comments anonymously and without fear of reprisal from, in your case, Fairbanks. For YOU, Eileen.

This site had a lot to do with the FTC and HUD finally going into Fairbanks. Although the settlement was paltry considering the damages, the FTC has forced a code of conduct on Fairbanks, which I have copied here for YOU, Eileen. And here is a link to the FTC for further information as well. For YOU.

And if the EDitor of this site got paid off to keep all this dirt under wraps, he would be much too wealthy to run this site for YOU. It would take all his time to count his money; like Scrooge McDuck, he would be rolling in the vault on tidal waves of gold. Get real.

~~~~~~~~~~~~~~~~~~~~~~~
Thou Shalt Adhere to 'Best Practices'

By Kenneth Harney

November 21, 2003

Call it the new Ten Commandments for the American home mortgage industry,
courtesy of a $40 million settlement with the federal government.

Mortgage companies shall not:

*Count their borrowers' on-time payments as late or assess them bogus late penalties.

* Foul up their customers' home loan escrow accounts by neglecting to make on-time payments of taxes and insurance.

* Compel borrowers to buy a second hazard insurance policy at inflated
premium costs when they know those borrowers already have valid insurance
coverage on their houses.

*Wreck their customers' credit ratings by reporting false information about
their delinquencies to the national credit bureaus.

* Keep homeowners in the dark about how much they owe and when it's due.

* Intimidate customers with predatory debt collection practices such as
nonstop telephone harassment.

* Stonewall borrowers when they seek account information or to complain.

* Refuse to work out legitimate delinquencies through forbearance
arrangements that allow borrowers with problems to get back on their feet, and
stretch out or modify payment terms.

* Stampede innocent homeowners into quick foreclosures.

* Force customers to waive their legal rights as the price of avoiding
foreclosure.

These may sound like barely minimal standards for home mortgage account administration. But they are at the core of new "best practices" guidance
contained in the federal government's $40 million out- of-court settlement Nov. 12 with
giant mortgage company Fairbanks Capital Corp.

Though legally binding only on Fairbanks, the code of practices is expected to be followed by all mortgage servicing companies that want to avoid costly entanglements with the Federal
Trade Commission and the Department of Housing and Urban Development.

Both agencies investigated Fairbanks and signed the settlement agreement.

Utah-based Fairbanks, the country's largest servicer of subprime mortgages, also faces additional settlements of class actions, state government investigations and individual litigation beyond the $40 million.

Federalofficials estimated that as many as 250,000 of Fairbanks' home loan customers may be
victims under the terms of the settlement, and could qualify for monetary relief from
the $40 million fund.

Thousands of Fairbanks borrowers have complained to federal and state government agencies since late 2002, alleging unfair and deceptive practices.

Fairbanks admitted no wrongdoing as part of the agreement, but pledged to follow
the new federal guidelines in its handling of all customers' mortgages.

Its founder and former chief executive, Thomas D. Basmajian, also agreed to pay $400,000, and still faces possible criminal charges from the federal
government.

Fairbanks' majority stockholder, the PMI Group, estimates that forthcoming settlements with class action litigants could cost Fairbanks another
$15 million.

Under the terms of the federal settlement, the FTC will administer the victims fund, paying compensation to borrowers who can document harm by
Fairbanks.

But many victims - especially those who have lost their homes to foreclosure - say no amount of monetary compensation can relieve the pain.

"What about the family breakdowns and divorces that [occurred] after Fairbanks took away people's houses?" said Irma Heras of Amarillo, Texas, in a post-settlement interview. "What about the damage done to people's health - the
high blood pressure they got from fighting day and night to save their homes?

Nothing can help them now, the damage has been done."

Assuming that each of the estimated 250,000 victims receives an equal share
of the $40 million, that works out to just $160 apiece.

But most victims can document far higher costs.

"It took me $11,000 to get out of that ordeal," said Jim Jones of Escondido, Calif. Jones managed to keep his house out of foreclosure after Fairbanks began pyramiding late fees onto his mortgage debt, but only by agreeing to pay
thousands of dollars in legal and other charges to Fairbanks, he said.

"Every one of those [now prohibited] bad practices they did to me," Jones said.

For example, although he had a comprehensive insurance policy covering the house that cost $551 a year, Fairbanks ignored that documented coverage and "force-placed" a second hazard insurance policy on the house that limited its
coverage solely to Fairbanks' own loan balance, but cost Jones an extra $1,800 a year.

Jones also said he experienced the full gamut of negative personal consequences - bad marks all over his national credit bureau files, family
stress, business strains. Jones doesn't expect to get much out of the $40 million settlement, and he is still a Fairbanks customer.

But he's happy about two things: His
mortgage company is now going to have to be a model of fairness and accuracy, as a matter of ongoing federal oversight. And "for all the time I got beat up by them, it's nice to see a little justice get done."

Kenneth Harney is a syndicated columnist.

For detailed information on the relief fund and other aspects of the settlement, including a hotline for victims, go to HREF="http://www.ftc.gov/ftc/news.htm">www.ftc.gov/ftc/news.htm.

Copyright Newsday, Inc.

By the way, I am not a Fairbanks victim and I AM most definitely reading this post. And I hope that this information has been of some help to YOU.

The only little box you are in is the one created in your own suspicious, mean, narrow little mind.

Open your mind and the possibilities are endless; keep it closed and wither in your little box. It is your choice.