Posted 2 years ago on Jan. 12, 2012, 5:46 p.m. EST by nighttalker
from New York, NY
This content is user submitted and not an official statement
• These are not "predatory lenders."
These companies do not loan money. They operate in the lending industry after-the-fact. They take on a function that a lender doesn’t want - the backroom functions of handling payments, escrow accounts, annual statements, dealing with borrowers, collections, etc. The perpetrators of the loan servicing scam acquire the servicing rights to loans that other companies have already made. (Loans that were deliberately constructed by predatory lenders are ideal for processing through servicers that specialize in aggressive collections or rapid foreclosure processing, but the loan servicing scam can be operated against any mortgage loan if the servicer acquires the rights from the lender.) http://msfraud.org/howtheysteal.html