Guild Mortgage To Go Down in Shame?

Captain's Chair hand made 1800's Who is running the ship?

United States Files Lawsuit Alleging That Guild Mortgage Improperly Originated and Underwrote FHA-Insured Mortgage Loans

The United States has filed a complaint in the U.S. District Court for the District of Columbia against Guild Mortgage Company (Guild) under the False Claims Act for improperly originating and underwriting mortgages insured by the Federal Housing Administration (FHA), the Justice Department announced today.  Guild is a mortgage lender headquartered in San Diego, California. 

“This case is another example of the  Justice Department’s continued efforts to ensure that lenders that participate in the FHA mortgage insurance program act in good faith and conduct appropriate due diligence when committing the United States to insure home loans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “To protect the housing market and the FHA fund, we will continue to hold responsible lenders that knowingly violate the rules.”

Guild participated in the FHA insurance program as a direct endorsement (DE) lender.  As a DE lender, Guild had the authority to originate, underwrite and certify mortgages for FHA insurance.  If a DE lender such as Guild approves a mortgage loan for FHA insurance and the loan later defaults, the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, is responsible for the losses resulting from the defaulted loan.  Under the DE lender program, neither the FHA nor HUD reviews the underwriting of a loan before it is endorsed for FHA insurance.  HUD therefore relies on DE lenders to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and DE lenders must certify that every loan endorsed for FHA insurance is underwritten according to the applicable FHA standards.

The government’s complaint alleges that, from January 2006 through December 2011, Guild knowingly submitted, or caused the submission of, claims for hundreds of improperly underwritten FHA-insured loans.  The complaint further alleges that Guild grew its FHA lending business by ignoring FHA rules and falsely certifying compliance with underwriting requirements in order to reap the profits from FHA-insured mortgages.  For example, Guild allegedly allowed underwriters to waive compliance with FHA requirements when underwriting a loan.  Additionally, Guild used unqualified junior-underwriters who did not have a DE certification to waive mandatory conditions on higher risk loans where HUD required underwriting only by highly trained DE underwriters. (so much for the days of processors signing off conditions)

The government’s complaint further alleges that Guild’s senior management focused on growth and profits and ignored quality.  From 2006 to 2012, Guild conducted at least 125 branch audits in which almost 40 percent resulted in either a qualified rating or unsatisfactory rating.  A qualified rating was defined as having a “significant number of findings, and/or findings noted that have more serious impact or risk to Guild,” or “Knowledge of procedures and controls; however, they appear to be inefficient.”  An unsatisfactory rating was defined as one where “serious concerns were noted: lack of knowledge, procedures, and/or controls in branch.”  The complaint alleges that, through Guild’s quality control reviews, significant defects were found in over 20 percent of the FHA loans reviewed between 2006 and 2011 and over half the loans had either significant or moderate defects.  Significant defects included fraud, misrepresentation and other serious findings while moderate defects included not following guidelines.  However, Guild did not calculate or distribute any error rate during the relevant time period, thus management was not presented with these findings.  Additionally, for many of the quarters from 2006 through 2009, Guild did not even distribute any of the quality control findings to management.  As a result, Guild management often did not review or remediate findings from quality control audits during these years.  In the quarters where Guild management actually did review quality control findings, it did so almost a year after the loans closed and failed to timely address any identified problems.  

In 2013, Guild finally began addressing the quality of its FHA underwriting, Guild’s head of quality control pointed out the ineffectiveness of its past efforts at addressing loan quality:  “I’m not optimistic about training reminders and individual follow-ups being all that effective.”

The government’s complaint alleges that as a result of Guild’s knowingly deficient mortgage underwriting practices, HUD has already paid tens of millions of dollars of insurance claims on loans improperly underwritten by Guild, and that there are many additional loans improperly underwritten by Guild that are currently in default and could result in further insurance claims on HUD.  For example, the government’s complaint identifies a mortgage loan that was improperly underwritten in violation of HUD requirements, causing the borrower to default and HUD to pay the loss on the loan.  Specifically, Guild failed to verify the borrower’s prior rental payments, overstated the borrower’s income, failed to develop a credit history for the borrower who had no credit score, exceeded FHA’s qualifying debt to income ratio without determining whether certain compensating factors were present, and failed to identify the source of a large deposit made to the borrower’s account.  The underwriter at Guild improperly waived multiple conditions and allowed an unauthorized junior underwriter to do the same for other conditions.  In sworn testimony, the Guild underwriter admitted the loan failed to comply with FHA underwriting requirements.

“The Federal Housing Administration’s insurance program is meant to encourage lenders to expand opportunity for homeownership by providing financing to prospective buyers who otherwise might not be able to enter the housing market,” said U.S. Attorney Channing D. Phillips for the District of Columbia.  “To ensure that prospective homebuyers realize the dream of long term homeownership, the program has strict rules and is not a license for lenders to carelessly subject federal dollars to risk. This lawsuit is designed to help the FHA – and American taxpayers -- recoup tens of millions of dollars in losses attributable to a lender accused of improperly underwriting FHA-insured mortgages and committing the government’s guarantee to mortgages that failed to comply with program rules.”

“The decision to intervene in this matter should serve as a reminder of the priority given to pursuing lenders that violate HUD program rules in order to hold them accountable and the value of private citizen participation, including whistleblowers, in pursuing lenders that violate the rules,” said HUD Inspector General David A. Montoya.

“FHA relies on the honesty and integrity of those lenders participating in our program,” said HUD’s General Counsel Helen R. Kanovsky.  “The action we take today should send a clear message that we will not tolerate the abuse of our programs or of the families who should benefit from them.”

Falsifying documents, white outs, blind eye, ignoring guidelines oh my oh my.

The lawsuit was brought under the qui tam, or whistle blower, provisions of the False Claims Act by a former employee of Guild.  Under the act, a private party may bring suit on behalf of the United States and share in any recovery.  The government may intervene in the case, as it has done here.  The False Claims Act allows the government to recover treble damages and penalties from those who violate it. This not a disgruntled employee to be this huge. Offices were disrupted by gentlemen in black suits, thousands of empty legal boxes and access to emails and computer files.

The investigation of this matter was a coordinated effort among HUD, its Office of Inspector General, and the U.S. Attorney’s Office for the District of Columbia and the Civil Division’s Commercial Litigation Branch.

The action is captioned United States ex rel. Dougherty v. Guild Mortgage Company (D.D.C.).  The claims asserted in the complaint are allegations only and there has been no determination of liability.  

Losses to Guild could be in 100-600 millions'. 

Guild Mortgage does purchase, resale, and refinance mortgage loans. 

After decades of successful innovation and growth, Guild Mortgage Company is a mortgage banking company with more than 250 branches and satellites across the United States.

Guild may lose ability to sell loans to our government which is 99% of their business. What does this mean to the consumer? Apply somewhere else if your loan is in process. 

Martin Gleich frowns in his grave. A ship without a captain.

Mary Ann MCGarry who is at the helm?

Anyone who got a Guild FHA loan will line up for class action lawsuit next...

Protect Your Assets and Credit from Hackers

...

PROTECT YOUR CREDIT AND ASSETS from HACKERS

Your social security number should be kept private. The easiest way for a criminal to steal a social security number from you is by going through your trash. Mail sometimes has your number, name, address and account numbers.

Reduce the amount of mail that comes to your home. 

Throw away junk mail in your recycle bin, envelopes and items that are not credit card, brokerage, or asset related. All asset related items should be shredded and separated half in the recycle and half somewhere else.

Pay your utility bills by auto pay online.

Opt out of junk mail and soft credit offers.  HERE is link: https://www.optoutprescreen.com/opt_form.cgi  
My eighty two year old mother has been a victim twice. I reviewed her habits and we came up with a plan to change. Mom likes the comfort of receiving stock statements and saves some for ten years. This information is available without keeping all that paper in her garage. I took the statements and scanned them and put on labeled CD's that she keeps in a secure place. Then I shredded the three boxes and discarded a third in the recycle, a third into my office shredder and kept a third to discard the next week. Seven years ago her brokerage accounts had her social and the full account numbers prominently printed on each page. It wasn't quite as easy to convince her to change her habit of paying for gas with a card at the pump. She doesn't like to carry a pile of twenties in her small wallet. She even dangerous used stand alone ATM machines which are often skimmed. Solution was to open a checking account at a bank down the street whereby she could easily walk up (during the daytime) and withdraw a hundred dollars, and the account doesn't have a large balance. Inconvenient, yes, but she hasn't had the problem occur again.

TIPS: 

Don’t close your existing accounts, that can lower your FICO score. 

Look at the monthly bills and mid month look at the charges online. 

I suggest you DO NOT signup for any service that monitors your credit. DO Not pay for any service that runs your credit every month. This is another source of possible fraud.

There are many ways bad guys can get your information.

Superhero Captain Credit Saver at the Turkey Trot in Dana Point

·         Never give out your social security number to any third-party unless you know they need it (e.g. a credit application or mortgage loan). Medical offices should not be using your social as I. D.

·         Before handing over your social security number to any company, ask if it will ever appear on a document they send you in the mail. Also find out how it is securely stored on their servers so it will be protected in case of a hack. All systems can be hacked (Target is an example, and many banks don't publicly report being hacked.)

·         Avoid entering your social security number online unless you are absolutely sure you're on a secure connection and dealing with a company you trust. If you're not, call them to verify or don't do it.

·         Set up activity alerts on your accounts. Most bank and credit card online accounts let you set text or email alerts for activity, such as charges over a certain limit.

·         DO NOT USE BILL GUARD, CREDIT SESAME, FREE CREDIT REPORT.com, Mint, Life lock, TRUSTD ID… none of these services are there to protect you. They hold your information in the cloud, on paper and are just as likely to be hacked as anyone else. Some guy in Kazakhstan and Mongolia will be able to get in with your user name and password tomorrow.

·         DO NOT USE A CREDIT CARD OR DEBIT CARD EVER AGAIN AT SHELL and CHEVRON gas pumps. Perhaps all gas stations are targets of the Armenian Mafia and organized crime in India and elsewhere. CHEVRON and SHELL will tell you a bogus story about how they have identification bar code tape covering the computer box on every pump thus preventing skimmers. This is a joke. The criminals can get your debit code password by a remote camera and the electronic strip on the card is duplicated sometimes thousands of times. Use cash at gas stations. IF you MUST use a card, pay inside. The register inside the store is manned by a person, and assuming they aren’t the gangster at least there is some protection from skimming your card.
    If you use a debit card, NEVER leave a large balance sitting in the debit account. Don’t choose overdraft protection. Transfer small amounts from savings or deposit small checks as needed.

·         CHANGE YOUR PASSWORDS.
    Don't carry your social security card in your wallet

IF you have been compromised:

Notify the police and FTC, and keep the report

Notify your banks, credit card companies, the IRS and social security office IN WRITING and call.

Putting a fraud alert on your credit with Trans Union, CBI and Equifax will slow down a thief but it doesn’t stop the pretty teenager at Bloomingdales from opening a fraudulent $1000 line for the criminal to buying a Chloe purse and then return it for cash.

Identity theft is painful, messy and time consuming. It can crash your FICO score and make it difficult to get a mortgage.
As always I am happy to answer your questions and help you fix your FICO for free.

SSN Printouts No More

Blue shingles

Yellow House

 

Dear Prospective Mortgage Borrower:

Important upcoming changes to the services at Social Security offices across the country.

As of February 2014, the Social Security Administration will no longer offer Social Security number (SSN) printouts and benefit verification information in our field offices.  However, to ensure a smooth transition, we will continue providing these services if requested until April 2014.  We are making these changes to meet the increasing demands for our services at the same time that our agency budget has been significantly cut by over $1B in each of the last three years.  During this same time period we have invested in technology that offers more convenient, cost-effective, and secure options for our customers to obtain certain services without visiting a local office.

Because the SSN printout is not an official document with security features, and is easily duplicated, misused, shared illegally, or counterfeited, eliminating it helps prevent fraud.  Employers, departments of motor vehicles, and other entities requiring SSN verification can obtain this information in real time or overnight using online government services such as E-Verify and Social Security’s Business Services Online.  Beneficiaries and recipients needing a benefit verification letter can obtain one immediately by registering for a my Social Security account at www.socialsecurity.gov/myaccount, or through the mail within 5–7 days by calling our national toll-free number, 1-800-772-1213.

I appreciate your support for this effort as we work to provide the best possible service to the American people.  For future updates and news visit www.socialsecurity.gov/thirdparty .

If you have questions, please feel free to contact me directly:  Caroline Gerardo at

Eagle Home Mortgage, A Lennar Company,  (949) 637-8190   NMLS# #324982

This is about Federal cost savings.

Make sure you keep your pink white and black long fold 1099 over forms.

 

You may need them to apply for a loan, or reverse mortgage 

 

Public Affairs Specialist

Social Security Administration of The United States

Target Boycott

Dear Gregg Steinhafel CEO of Target:

I am a victim of the Target fraud. Offering ProtectMyID is a foolish move.

Experian's software does not do anything to protect from fraudulently charging

on a credit card.

 

I don't expect Target to hunt down the Armenian Mafia, and the Russian mob

who hack credit cards in the billions BUT an insider closed their eyes, allowed

someone access and or saw someone install a scanner and some camera equipment.

Target employees know more than you admit to the public.

Banks also get hacked, they are often silent about the crimes- they pay the loss

and pray the FBI or local police will accidentally run into the criminals.

You need better security because this is still happening today.

My loss was over eight thousand dollars, some of which VISA paid but they won't

point a finger at Target, instead they point blame to some unknown gas station attendant.

Fraud is eating away at the security and confidence in America. While I appreciate your apology,

Target needs to actually do something. ProtectMyID is a joke and an insult to your customers.

Although I have been a red ball flag waver for your brand, a stock holder and a frequent shopper

who spends hundreds of dollars each visit. I will be shopping elsewhere until you tell me you have

reviewed video of every scanning machine at each register to find embed devices that capture card numbers. I suggest everyone boycott your brand. Target likely still has pinhole cameras in stores, in your credit card hubs and headquarters that offer up information to these criminals.

That you take so long to find out they got into your online business is an example of sleeping at the helm. As a shareholder - I say, "you are fired." 

#target #breach thanks for sharing my email, home address, telephone number, social security number, credit card, spending habits and dog license with organized crime

Calling Target Shoppers

 Caroline Gerardo Barbeau
 

 copyright 2014

 

 http://cgbarbeau.blogspot.com/

 

From: Target.com
To: carolinegerardo@
Sent: Wednesday, January 15, 2014 6:00 AM
Subject: Important message from Target to our guests

Dear Target Guest, As you may have heard or read, Target learned in mid-December that criminals forced their way into our systems and took guest information, including debit and credit card data. Late last week, as part of our ongoing investigation, we learned that additional information, including name, mailing address, phone number or email address, was also taken. I am writing to make you aware that your name, mailing address, phone number or email address may have been taken during the intrusion. I am truly sorry this incident occurred and sincerely regret any inconvenience it may cause you. Because we value you as a guest and your trust is important to us, Target is offering one year of free credit monitoring to all Target guests who shopped in U.S. stores, through Experian’s® ProtectMyID® product which includes identity theft insurance where available. To receive your unique activation code for this service, please go to creditmonitoring.target.com and register before April 23, 2014. Activation codes must be redeemed by April 30, 2014. In addition, to guard against possible scams, always be cautious about sharing personal information, such as Social Security numbers, passwords, user IDs and financial account information. Here are some tips that will help protect you: Never share information with anyone over the phone, email or text, even if they claim to be someone you know or do business with. Instead, ask for a call-back number. Delete texts immediately from numbers or names you don’t recognize. Be wary of emails that ask for money or send you to suspicious websites. Don’t click links within emails you don’t recognize. Target’s email communication regarding this incident will never ask you to provide personal or sensitive information. Thank you for your patience and loyalty to Target. You can find additional information and FAQs about this incident at our Target.com/databreach website. If you have further questions, you may call us at 866-852-8680. Gregg Steinhafel Chairman, President and CEO

Barclay's SHAME

Causes of the foreclosures and the meltdown:
fraud

Will lawsuits follow from consumers against Barclays?

Barclays Chief Executive Bob Diamond ought to be terminated and refund to every homeowner who were fraudlently overcharged based on his and senior executives price fixing on an index that controls interest rates on mortgages on about 90% of all American Adjustable rate loans. (Five Year Seven Year and Ten Year Mortgage rates were manipulated falsely/ increased by this scam.)

Barclays' Bank particular submissions to LIBOR - THE rate compiled daily through a panel of banks quoting the rate at which each bank estimates what they can borrow from one another, in various currencies - were much higher than many competitors.

I would love to read the internal emails and instructional power points that FSA, CFTC were able to view. This certainly is only the tip of the iceberg. Shame on you Bob Diamond

Novel live on Amazon, stores soon

Toxic Assets
See below for more details.

Party at my house next week
The link is live.
Already made sales this morning.

Thank you Heavens I am so blessed.

What a great Valentines Day.