Archive for the ‘mortgage fraud by banks’ Category

BANKS WRECK HOUSING MARKET WITH THEIR GREED

April 20, 2010

TRADITIONAL BUILDING SOCIETIES WERE TAKEN OVER AND PUSHED OUT OF MARKET BY BANKS TO INFLATE HOUSE PRICES AND SQUEEZE MORE MONEY OUT OF HOME BUYERS WITH LIFETIME BURDEN OF EVER INCREASING DEBT.

House prices and most mortgages are now a complete rip-off compared with a generation ago. This has been orchestrated entirely by the dishonesty of the banks.

They took over the original mortgage lenders in Modern Times, the building societies, so they could control the whole mortgage market in order to make loads more money out of it for themselves.

Previously, mortgage lending to home buyers was traditionally done by building societies, originally formed by groups of individuals grouping together to help each other buy their houses one by one. Any very modest profits the building societies made were jointly owned by all the building society members.

So, no rip offs going on there then ! No vast profits for predatory, racketeering investors from luckless home buyers trying to provides homes for their families to live in !

No racking up of house prices into an unsustainable bubble of unaffordability, where average house prices rocketed from about three times a worker’s salary to more than ten times annual salary after the greed obsessed banks gained control of the housing market and were able to influence the rapid inflation of house prices by pumping unlimited amounts of cash into it.

Although buildings societies grew larger and larger, they were still mutually owned by all their members until the predatory banks muscled in and took them over.

Banks are desperate to lend more and more money, and they could see the housing market was the biggest lending possibility that had ever existed for the gullible and vulnerable ordinary person to be comprehensibly fleeced by tying him into a lifetime of mortgage servitude.

The banks knew that by lending ever larger amounts for mortgages, they would increase the cost of housing. This would keep nearly all homeowners completely dependent on the banks and locked into a lifetime of paying ever increasing amounts of their wages just to keep a roof over their heads.

This in turn enabled the banks to lend even more – and earn even more profits for themselves at the expense of home owning families whose lives were made a misery with huge amounts of lifelong debt; almost impossible to pay off.

Why hasn’t the government done something about it ?

More and more people think the banks are fraudsters – including Governments. I think they are real bastards too.

What do you think ?

FSA ISSUES WARNING AS SUB-PRIME MORTGAGE THIEVES CONTINUE TO ABUSE HOMEOWNERS

April 13, 2010

From Capstone’s blog today about the sub-prime mortgage thieves.

‘The ever decreasing plausibility with which the awful CAPSTONE MORTGAGES pleads the fairness of its charging regimes is most likely to have taken a further slide south yesterday with the fine and compensation order levied upon another rag tag outfit of sub-prime crooks, Kensington Mortgages, by the newly emboldened Fantastic Services Authority (that’s the Financial Services Authority).

At the heart of the issue is of course the appalling and systemic consumer abuse perpetrated by these shameless thieves whose main goal in life is to convert your cash into theirs by any and all means possible. The abusive phone calls and letters are but a side-show when compared to the cash-grab these vultures have planned for so long.

The charges increase their revenue stream, increase their profits and over time make default on the mortgage or loan a near certainty which of course is what they wanted all along.

This is so they can drag your sorry ass in court, and throw you and your kids out onto the street, grabbing of course whatever equity they can in the meantime. All too often the pathetic courts never even challenge their fictitious standing, their fictitious claims and their fictitious amounts, and I say SHAME ON THE COUNTY COURTS, for siding so readily with this desperate bunch of con-artists and fraudsters.’

From Capstone’s blog

Kensington Mortgages Fine (You said it…)

April 13, 2010

It appears that rip-off mortgage lenders ( thieves really) Kensington, have been fined by the Financial Services Authority for unfair treatment of homeowners foolish enough to be duped into taking out a mortgage with them.

April 12, 2010 From capstonewatch – the blog about the dishonest, immoral and almost certainly criminal mortgage administration company overseeing Lehman Bros sub-prime mortgages.

Capstone routinely evict homeowners for the flimsiest reasons, and generally behave with pathological nastiness to all the mortgage holders in their usurious, Shylock like grip.

Sub-Prime lender Kensington has been found by the Financial Services Authority to be acting unfairly (possibly criminally) towards its mortgage victims which it habitually fleeces of every last penny they own by means of weasil ‘contracts’ cunningly contrived to steal homeowners money and then throw them out on the street – homeless and dis-possessed thanks to the thieves masquerading as banks.

You know, that lot; Lloyds, Lehman Bros, HSBC, Santander, Barclays, Royal Bank of Scotland, and all the seething web of subsidiary financial businesses owned by this cosy little cartel of wickedly manipulative, greedy, immoral , money obsessed financial control freaks holding every man, woman and child in the country to ransom until they are all squeezed dry of every ill-gotten penny the banks can deprive them of.

Bastards and thieves; all of them. Their behaviour is destructive and completely unforgivable.

Capstone is a notorious mortgage administrator, a subsidiary of Lehmans Bros, very busy repossessing as many homeowners as possible who were conned into Lehman Bros sub-prime mortgages in the UK. There’s big money to be made out of repossessing homeowners because financial speculators such as ‘Hedge Funds’ snatch up as many re-possessed houses as they can lay their hands on for much, much less than they are really worth.

This means the properties can be immediately sold off at an immense profit – all at the expense of the hapless homeowner who has been forced out of his home, often to be completely homeless and have his entire life wrecked by these heartless, nasty, greedy grubby little gang of thieves.

This is what capstonewatch – the blog said.

“As part of the press release it is normal for Margaret Cole (Enforcement) of the Financial Services Authority to give a little speech.

“I’m obviously being unrealistic to expect that they mean any of it when it comes to the outrageous consumer abuses perpetrated by the appalling CAPSTONE MORTGAGE SERVICES, but where there’s life there’s hope.

“Here’s what she had to say this time:

‘This case should serve as a strong reminder to firms dealing with retail customers, especially customers in a vulnerable position such as those with mortgage arrears, that the FSA will take robust action where it sees that customers are not treated fairly. Retail firms which fail in their obligations to customers should expect not only a substantial fine but also that they will have to pay back customers who have been disadvantaged.’

“Seems pretty clear to me…..

This is the press release from the Financial Services authority.

FSA/PN/065/2010
12 April 2010

The Financial Services Authority (FSA) has today announced it has fined Kensington Mortgage Company Limited (Kensington) £1.225 million for poor treatment of some customers facing mortgage arrears.

The firm has agreed to redress customers who were in arrears and charged specific unfair and/or excessive charges. It is estimated that the redress will cost the firm up to £1.066 million.

The FSA has identified a number of serious failings by Kensington which occurred between 1 January 2007 and 31 October 2008 in relation to its mortgage arrears handling processes and in its dealings with customers in arrears.

These include:

Failing to ensure mortgage servicing staff acting on its behalf had adequate understanding of treating mortgage arrears customers fairly;

Concentrating on the repayment of mortgage arrears over a short period of time rather than agreeing an arrangement to pay the arrears based on the customer’s individual circumstances;

Applying three charges to customers’ accounts that were unfair and/or excessive. These were:

- A fee for a returned direct debit which was charged regardless of how many times the direct debit had already been returned unpaid;

- An excessive fee for cancelled direct debits which did not reflect administrative costs;

- An early repayment charge on mortgage balances which included arrears fees and charges within that balance.

The firm also failed to take reasonable care to organise and control its affairs responsibly and effectively, and to ensure adequate risk management systems. Its management information focused on the performance of the firm’s mortgage book and the profitability of the business, rather than on treating customers fairly.

Kensington qualified for a 30% discount under the FSA’s settlement discount scheme. Without the discount the fine would have been £1.75 million. The FSA has also taken into account that Kensington has made significant improvements to its arrears and repossession processes since the early part of 2008.

Margaret Cole, director of enforcement and financial crime, said:

“This case should serve as a strong reminder to firms dealing with retail customers, especially customers in a vulnerable position such as those with mortgage arrears, that the FSA will take robust action where it sees that customers are not treated fairly. Retail firms which fail in their obligations to customers should expect not only a substantial fine but also that they will have to pay back customers who have been disadvantaged.”

CROOKS, CONFIDENCE TRICKSTERS & THIEVES – THAT’LL BE THE BANKS THEN !

March 27, 2010

JUST EVERYDAY, ORDINARY BANKS GOING ABOUT THEIR LEGITIMATE BUSINESS ? I DON’T THINK SO

I find it ludicrous that despite it becoming more and more widely known the mortgage market is riddled with criminality, that no legal action is being taken which should protect the unfortunate people losing their homes as a result of what is simply criminal fraud on behalf of banks.

I have been systematically ‘milked’ of the entire equity on my house now worth about £800 000. I was deliberately ‘pushed’ by the original high street lender from a mortgage of only £100 000 on that house into sub-prime mortgage after sub-prime mortgage – churned is the word used by that filthy industry – and now I am about to be made homeless by these bastards, now owning nothing.

In other words, I have lost £700 000. It has been stolen from me by systematic fraud on behalf of the banks.

It isn’t just about one particular mortgage, or just one broker or just one bank. people don’t seem to have grasped the fact that there is just a handful of banks who have a cosy monopoly over the entire mortgage lending market.

These evil, corrupt banks have, collectively, devised a cunning system of mortgage lending, using the Council of Mortgage Lenders, the Financial Services Authority and other weasily pseudo legalities – including ‘credit rating’ and contract law – to knowingly fleece mortgage borrowers with dishonest, misrepresented lending.

You only have to compare it with the ‘old fashioned’ type of building society lending to see the difference. It is the same house and the same idea of borrowing money to buy a house, but instead of an honest loan from a building society to a borrower trying to buy a house, the loans have become mortgage ‘products’ or ‘packages’ which are carefully designed to fleece borrowers and at the same time inflate the overall property market to enable the banks to lend ever larger sums of money on ballooning property prices.

Without the huge value of lending in the property market, the banks would be deprived of a gigantic source of potential lending and therefore profit.

So, in a nutshell, the banks, behaving rather like the Mafia, saw there was tons of money to be made in property lending, and they muscled in on it by destroying the old fashioned building societies that had originally been the honest, moral, reasonable, helpful lenders in the housing market.

This has become so blatantly dishonest and destructive that it has now damaged the whole World Economy.

The banks are nothing more than crooks and confidence tricksters who have found a way to misuse and abuse law and regulation to steal money from other people on a breathtaking scale.

It is time the authorities – Parliament, the FSA and so on, to take legal and regulatory action against these out of control thieving banks. They need to make an instant start by preventing mortgage lenders from causing further damage by repossessing homeowners who should never have been put in that position in the first place by these nasty, dishonest loan sharks.

SOUTHERN PACIFIC MORTGAGE LIMITED HIDES MONEY FROM LEHMANS CREDITORS IN CHARITABLE TRUSTS

March 3, 2010

Southern Pacific Mortgage Limited is a subsidiary of the devious, rather nasty bunch of bankers who were called Lehmans until they went bust recently owing vast sums of money and wrecking the World economy in the process.

Southern Pacific Mortgage Limited, SPML, to all those unfortunate enough to be its victims, is one of those rip-off subprime mortgage lenders that specialise in fleecing borrowers and generally employing trickery to convert other people’s money into their own by any immoral, dishonest and devious means they can get away with.

SPML are still trading here in the UK, apparently. They have two principle activities at present. One seems to be repossessing as many of its borrowers as possible to evict them from their houses and destroy their lives.

The purpose of this is so SPML can get their greedy little hands on as much of those unfortunate householders property as quickly as possible so that SPML can sell it off quick and cheap grab the money and run before someone realises they are part of a bankrupt bunch of thieves and stops them stealing any more money and ruining more people’s lives.

The other main activity of this charmless bunch of financial confidence tricksters is to put all that money they are forcing homeowners to give them by selling their homes and charging extortionate ‘penalty’ fees of one sort or another, into an intricate web of other companies and, wait for it, charitable trusts, to make sure it will be as safe as possible from all those people owed billions by this dishonest bunch of loan sharks.

So, creditors owed money by Lehmans and Lehmans ‘ subsidiary companies will be fresh out – they will not get money that Lehmans subsidiaries have carefully squirreled away beyond the reach of bankruptcy administrators. People owed money by Lehmans will go away empty handed.

Meanwhile, let’s get this right, SPML announce in their annual report ending November 30th 2008 that the company intends to ‘enter into an orderly wind down of its assets and operations and/or seek a disposal of its assets and business’.

Elsewhere in the SPML annual report the company makes clear that mortgages arranged by SPML for its unsuspecting homeowner victims are bundled together, securitised into a ‘derivative’ financial instrument as they laughingly name it, and sold on into a ‘Special Purpose Vehicle’ as SPML describe it ( it just means another separate company that simply holds all those bundled together mortgages as an asset to be further manipulated into a fantasy world of breathtaking deviousness).

Then, guess what ? The SPML annual report proudly announces these Special Purpose Vehicle companies, SPV’s for short in the childish jargon of these idiot ‘Masters of the Universe’, are all ‘legally and beneficially owned’ by charitable trusts and are included in the financial statements of the company (SPML) on a ‘linked presentation basis’. That is more jargon designed to confuse people into not quite realising SPML have hidden all their money in charitable trusts so it is protected from all the people owned money by Lehmans and its subsidiaries.

Clever stuff, or what ? But is it moral ? Is it honest ? It may (possibly) be legal, but it doesn’t look remotely honest to me.

A Charity Commission spokesperson said: “A body is a charity if it is established for exclusively charitable purposes only. To qualify as a charity, an organisation must also demonstrate that its purposes are for the public benefit.

“The 1993 Act requires trustees to register charities in England and Wales with the Charity Commission. Any charity which has a gross income exceeding £5,000 a year is required to register. However, some special classes of charity are free from the requirement to register”.

I do wonder what on earth the ‘public benefit’ of the SPML arranged charitable trusts can be. Does it mean they have had a change of heart and decided to atone for their previously ruthless behaviour which led to Lehmans bankruptcy and global financial meltdown ? Do they now plan to rescue distressed homeowners being repossessed and thrown out onto the street by other mortgage lenders ?

Somehow I think not. There will be no ‘public benefit’ from these charitable trusts. But I rather think there might be a significant benefit to bankers and other investors perhaps. One does wonder. Let’s wait and see.

Actually, I took one look at the weasel like face of Dick Fuld, ex boss of Lehamns and the man that manipulated truth and honestly right out of Lehmans New York Headquarters windows as he steered the World into financial meltdown, and thought he looked completely devious, dishonest, immoral and almost certainly a rotten, nasty person.

Just the sort of person to preside over the setting up of loan shark mortgage lending in the UK and ensuring the fat profits of conversion and theft are carefully placed beyond the reach of honest people into ‘charitable trusts’ for God’s sake.

How can this happen. Where are our UK financial regulators and what the hell do they think they are doing while people like these sub-prime loan shark mortgage lenders like SPML fleece UK homeowners, leaving them destitute and homeless in their thousands.

What is the Financial Service Authority doing about these loan sharks ? What about the the Office of Fair Trading – what are they doing ? What is Parliament doing ?

Why, nothing at all of course. Even the Parliamentary Select Committee that recently produced an excoriating report on sub-prime mortgage loan sharking practices in which they roundly condemn those mortgage lenders such as SPML as social evils, does not seem to have registered on anyone’s radar, anywhere. Nothing is being done.

Something could be done about it. A number of American Federal Governments were so fed up in 2006 with one lender in the USA repossessing so many homes and blighting so many inner cities as the properties were left to become derelict; just rotting away while the homeowners evicted from them camped homeless under plastic in the streets of American cities, that a legal action was brought against that lender by those Federal, governments.

That particular loan sharking mortgage lender was called Ameriquest. Rather than risk going to court this evil lending business caved in and coughed up about $300 million dollars, or some such fantastic sum. Small change to them to buy off the Town Halls with. So, loan sharking Americquest bought off any possibility of proper justice for all those people whose lives it ruined by evicting them from their homes and then letting those homes become derelict and uninhabitable and even unsalable.

What a rotten World we are now living in.

Nurse wins reprieve over repossession

January 4, 2010

By Richard Dyson, Financial Mail

2 January 2010

A nurse whose home was to be repossessed this week has won a reprieve, thanks to Financial Mail and her lawyers.

Rate shock: Payments on Bola Eriksola’s terraced house went from £900 to £1,500 a month.

Bola Eriksola was to attend court on Wednesday as her mortgage lender, Rooftop, founded by failed bank Bear Stearns, sought to repossess her £192,000 terraced house.

Rooftop’s rate was high even in July 2008 when the Bank of England base rate was 5%. But by March 2009 the base rate had fallen to 0.5%. Rooftop, however, like other lenders, did not pass on a proportionate cut in rates.

Many such lenders, which are closed to new business and often owned by organisations not connected with the mortgage industry, escape regulation and are secretive about rates and charges.

Read the rest of the Financial Mail article by clicking here

SANCTIMONIOUS COMMENTS FROM MAIL READERS ATTACK BORROWERS , NOT GREEDY MORTGAGE LENDERS

This reader comment following the article about Bola in the Financial Mail is one of many similar ill thought out attacks on a borrower which seem to implicitly support and approve of the wickedness of Sub-Prime mortgage lenders.

Posted by: Mustafa, Leicester

3 January 2010, 6:32pm

8. This woman made the mistake of increasing her debt and moving to a dodgy sub-prime lender. Now she is not supposed to take responsibility for her mistakes?

This Financial Mail campaign is MISGUIDED and RECKLESS – the economy is wrecked because we need to DISCOURAGE people from taking on unaffordable debts and end the unsustainable asset bubble in housing which has made it so overpriced. Why shouldn’t this woman accept her mistake and go into rented accommodation like many of the rest of us?

Financial Mail should be supporting savers, not bailing out those who have recklessly got themselves into debt.

WHAT ABOUT THE DECEITFUL MORTGAGE LENDERS ?

I am astonished at all these attacks on Bola making out it is entirely her fault for being ‘milked’ by disgustingly devious mortgage lenders who deliberately trap people into a carefully designed structure of what is clearly ‘constructive’ fraud.

There is a legal description for this. It is called ‘conversion’ – whereby ‘artifice’ (that’s deviousness), one person ‘converts’ another person’s property to their own use.

You will see a remarkably similarity between the artifice of sub -prime mortgages and the criminal loan sharks. Loan sharks use escalating physical violence to enforce ever increasing repayments until a borrower is completely ruined and has been stripped of everything they own for the sake of a trivial loan.

Sub-prime mortgage lenders use precisely similar tactics designed to fleece borrowers the moment they have the slightest difficulty with the rising repayments which are specially designed to make it deliberately difficult for borrowers to continue making them.

The only difference between sub -prime lenders and criminal loan sharks using physical violence is mortgage lenders use legally inspired mental violence, together with a huge amount of remorselessly contrived follow up psychological pressure and violence.

Most victims remain damaged and scarred for the rest of their lives.

This is eventually followed by a certain amount of physical violence. That is legal because it occurs when the mortgage lender smugly tell a court that a feckless and irresponsible borrower is simply not repaying the rapidly inflating mortgage. This is now being artificially loaded with increasing penalty fees making it grow into a gargantuan sum of money impossible for the borrower to keep up with.

Like criminal loan sharks, the original sub-prime mortgage loan soon dwarfs into insignificance as all the extra penalty costs are added to the loan in a blizzard of uncontrollable and ever escalating debt quite beyond any borrower’s ability to control.

So the court simply orders that the lender can send in the bailiffs to physically evict the homeowner, using any legally allowed physical violence that may be required to achieve this purpose.

The house becomes possessed by the lender who now has the opportunity to fleece the hapless homeowner even more, invariably doing so to such a degree that often the homeowner loses everything – including all other domestic possessions because there is nowhere else to put them.

“Your whole life is ruined; it just comes to an end” one victim said.

There is really not a lot of difference between the criminal loan sharks using thuggery and physical violence to steal money, and the artfully thought up ‘sub-prime’ mortgage contracts intentionally designed to be increasingly impossible to repay.

It’s just that mortgage lenders have realised they can achieve the same dishonest and immoral results as the loan sharks by using legal and financial gobbledegook to trick thousands of people out of their homes and make billions and billions of pounds of profits for their fat little banker’s bonuses we hear so much about.


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