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IBM subsidiary scammed nearly $13 million from Fannie Mae – whistleblower

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Mortgage Professional America | 09 Aug 2016, 08:15 AM Agree 0
An IBM mortgage servicing subsidiary has been accused of defrauding the government out of millions
  • angie | | 09 Aug 2016, 04:39 PM Agree 0
    Seterus still has my mortgage title in someone elses name, since 2009 to now. I;ve told them about this and i sent them certified letters/notarized letters, and they still turned a blind eye to fixing the problem. They said as long as the mortgage gets paid, that's all that matters!! BULLCRAP. My whole life has been based around Seterus' error to commit fraud, by preventing me to move into a bigger house to care for my mother with cancer and my brother with mental illness. I hope this gets fixed asap!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • my advice get a good attorney | | 03 Oct 2016, 04:20 AM Agree 0
    I'm a current employee Seterus.they can't even get my pay correct.what makes you think that they're going to get your name on your mortgage correct.my advice get a good attorney
  • Allan, Father Veteran, and Struggling Homeowner | | 24 Oct 2016, 03:21 PM Agree 0


    A Band-Aid on a wound that required a tourniquet is not sufficient to fix the evolving and morphing "Housing Crisis" in America. There is no doubt in my mind that as a Nation we have completely undervalued how much intervention is needed to correct the corruption in our Country.

    1) The Housing Crisis is a direct result of greed which was not supervised by Regulators who were totally asleep at the wheel. Who the heck knew what a Credit Default Swap was until we saw "The Big Short", or "2 Big to Fail". The lack of vigilance was due to lack of knowledge.

    a. Banks and Mortgage Officers were qualifying consumers that truly were not able to purchase homes by giving them ARMS that skyrocketed in year 3 or year 5 while prices of homes also skyrocketed at alarming rates inflated home equity.

    b. That gave us all the open-door to take second mortgages, lines of credits, and an refinancing with document verification got the Nation drunk on easy money that no one could pay back. Bet you the consumer confidence index was super high back then.

    c. The everyday consumer's confidence in their jobs came tumbling down when the domino effect of the Housing Market took the Job Market down with it. Naturally, when the ARMS matured, and interest rates took off, who could pay back?

    d. The Banks knew about the potential collapse and they agreed to allow betting on it through Credit Default Swaps

    The Gov gives the Big Banks including the Auto Industry a Bail Out, CEOS still get paid big bonus checks while we are struggling and the American Family left to HAMP, HARP, Foreclosure, an array of save your home scams, parasitical attorney conduct, and the most wonderful of all, the Mortgage Servicing 3rd Party industry explosion.

    Seterus is just one of the formerly "Top Knotch" Mortgage Loan Servicing Firms previously mentioned in the top 5 of Fannie Mae's "STAR" report. How wonderful it is to know that there is more incentive for Mortgage Servicing Agents in forms of "Bonus" payment directly from Fannie Mae when that good old "Struggling Homewoner" happens to not meet the requirements to modify their home mortgage. Lose a paper here, don't post that timely Home Owner payment on time, force insurance, dual track, etc... There are over 140 Seterus employee comments on Glass Door, and endless complaints from consumers to Federal Agencies on the same topic and it takes years to get the ball to begin rolling. This should have been an Office of Inspector General investigation with Criminal Charges.

    How many people have lost their homes to fraudulent forms, misplacement of documents by Banks and Mortgage servicing agents which in actuality Plaintiff Attorneys washed their hands and closed their eyes as the "Poor Struggling Homeowners" begged a Judge to not foreclose. Then we wonder why people flocked to submit last minute bankruptcies in an effort to not land on the curb on the road.
    Meanwhile, where is our Congress on this? Where are our politicians? Where is the honesty in our Government?

    Struggling Home Owners, it is time we stand up and not take this anymore. We don't need one attorney, we need to start a movement that is loud and clear to those people that we elected to be stewards, overseers, of our overall interest to actually do their jobs.

    In my honest opinion, Rep. Honorable Elijah Cummings, Ranking Member of the Committee on Oversight & Government Reform and although he is human, and not infallible has shown the necessary gull to grill the crooks that undermine our everyday confidence in our Government. Heads up: I have no affiliation politically to this committee or the Honorable Representative, I base my recommendation to all who are fed up to reach out to this committee as it is their role to demand answers and ask the tough questions that many of us will never have a chance to due to lack of financial resources and simply due to being emotionally drained and worn out with the corruption implosion that we are facing.

    http://democrats.oversight.house.gov/investigations/investigation-of-housing-and-foreclosure-crisis

    While we watch the news, I am afraid there is a second "housing bubble" forming by way of the Mortgage Servicing Industry who has only shown reluctance to follow even the latest guidelines and changes to Consumer Protection Laws.
  • Brian | | 27 Oct 2016, 12:43 AM Agree 0
    According to Oregon law enforcement, Seterus/IBM had one of the largest homicide cover ups in the states history, four IBM employees where charged with conspiracy in the death of a woman.

    http://www.oregonlive.com/portland/index.ssf/2012/11/cover-up_of_fatal_hit-and-run.html
  • Brian | | 27 Oct 2016, 12:51 AM Agree 0
    Lender Services n/k/a Seterus: Stupidest Strategic Move Since AOL-Time Warner Merger

    February 13, 2012Michael Olenick

    IBM is the second most valuable brand in the world, according to Intebrand’s 2011 Ranking of the Top 100 Brands. Not the second most value technology brand, nor the second most valuable American brand .. the second most valuable of any brand, anywhere.

    IBM’s name alone is worth a whopping $69.9 billion dollars. Only Coca-Cola is worth more, and just barely, at $71.9 billion. Microsoft comes in third at $59 billion, Google fourth at $55.3 billion, GE at $42.8 billion .. Apple is a all the way down at eighth, with their iconic apple valued at $33.5 billion.

    IBM’s market cap is $223 billion, so their good name alone accounts for 31% of the company’s value. Let’s think about that: almost one out of every three dollars this 100 year-old tech behemoth is worth comes from their good name, their reputation as the bedrock of technology, integrity, and brilliance.

    When I think of IBM I think of scientists wearing white lab coats toiling away around the world to build HAL, the self aware computer that even entry-level Geeks recognizes as a one-letter decrement of IBM.

    HAL, which IBM is still trying to build, lost his mind, somebody within IBM’s strategic planning group seems to have done the same and decided to ramp up “IBM Lender Services,” a foreclosure fraud-factory.

    Somebody in corporate communications must have recognized that putting almost $70 billion at risk to run a document sewage plant seemed like a bad bet, so in 2011 they changed the name to “Seterus.” I don’t know if Seterus is derived from the Indonesian name “Seteru,” meaning enemy, though if so the point’s well taken: IBM Lender Services/Seterus is the worst enemy to IBM’s good name in the company’s history.

    For the sake of simplicity, and because they deserve to be mocked for this wildly irresponsible move, I’ll continue to use their own original name — the name stamped on countless fraudulent court records — IBM Lender Services.

    It seems like at the end of every bubble there’s an obligatory insane strategic move by a major corporation; moving a business with $107 billion in revenue into fraudulent foreclosure processing is arguably worse than the infamous AOL-Time Warner acquisition. Let’s review that deal. On Jan. 10, 2000 AOL announced it was acquiring Time Warner in a “historic merger.” Time-Warner’s stock was trading at $189.75. Two and a half years later, on Jul. 29, 2002, a share of that same stock was worth $39.90.

    Granted, during the dot-com bust many stocks tumbled off a cliff. Except that Time Warner was not a dot-com; they’re a roll-up from a series of media-company acquisitions going back to 1922. They should have weathered the dot-com bust reasonably well; instead their stock slid 83.7%.

    Similarly, when I tell people that IBM is in the mortgage servicing business, with a special focus on foreclosures and foreclosure document processing, they’re usually dumb-struck. Time Warner wasn’t a dot-com .. except that they were. Similarly, IBM isn’t a sleazy mortgage servicer .. except that, for whatever reason, they decided to become one.

    IBM stock, which I don’t hold any position in, mainly because I’ve been meaning to write about this for a long time, deserves the same fate as Time-Warner.

    If IBM think’s that’s unfair they should think about how people who were evicted from their homes felt when IBM’s fraudulent documents were used to justify the evictions.

    Would those evictions have happened anyway if IBM, and the mortgage servicers who employed them, acted carefully and responsibly? As they say in court “objection .. irrelevant,” because they didn’t; they used every slimy shortcut in the book, and a few others that same book frowns upon.

    Just to be clear, besides (poorly) managing the back-office functions for other banks IBM also buys servicing right and services mortgages; they’ve become what people think of as “the bank,” .. a mortgage lender, or at least the public face of one. They’ve been at this since the mid 2000’s but they’re not slowing down: less than two years ago IBM announced the acquisition of Wilshire Credit Corporation from Bank of America, an acquisition BOA inadvertently swallowed with Merrill Lynch.

    Just as a reminder, “servicers” are who borrowers think of as “the bank,” the entity they engage with. Servicers collect money they send to investors, or prosecute foreclosures on behalf of investors. However, it is uncommon for services to put much, if any, of their own money into a mortgage mortgage.

    I don’t know how government agencies — including court houses and public records repositories — could remain comfortable with the company that produced this mess. Even Fidelity had the common sense to spin-off Lender Processing Services (LPS), even as IBM was apparently doing exactly the opposite.

    In an inquiry by the New Jersey Supreme Court titled “In the Matter of Residential Mortgage Foreclosure Pleadings and Document Irregularities,” Joseph M. Perry, IBM Lender Business Process Services Vice President of default management, defends the company. It’s telling that the first sentence highlights the name change.

    I spent years focused on corporate strategy. I know from personal experience that sometimes corporate strategy sessions, especially when forming new product lines, can run wildly off the rails.

    As a group proceeds through an exercise it’s not uncommon, after days of research, to unveil an entirely illogical or even illegal “great idea.” Every time I’ve seen this happen most participants quickly realize their exercise has taken a wrong turn; sometimes they’re annoyed, usually they laugh, but they never move forward.

    IBM Lender Services is clearly an idea that should have been put to bed when it was born in some boardroom full of bored strategists. Based on IBM’s recent behavior it seems clear they’ve now realized this, but it’s not so clear what they plan to do about it (hint: recognize the loss and shut it down .. quickly).

    IBM Lender Services is like a cancer to an otherwise great company. But cancer’s grow. It’s only a matter of time until Interbrand and other clients react to the reputational damage this tiny group has done, and the damage to brand value alone will more than offset even the wildest upside potential of this deal.
  • Lorren | | 27 Oct 2016, 04:22 PM Agree 0
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