Kingcast and Mortgage Movies recently released a short movie titled, “Trouble in Paradise: Maui Foreclosures Allowed by Judge Peter T. Cahill without Proof of Standing or HRS 667-17 Compliance.”
HRS 667-17 requires any attorney who files on behalf of a mortgagee seeking to foreclose on a residential property under this part shall sign and submit an affirmation that the attorney has verified the accuracy of the documents submitted, under penalty of perjury and subject to applicable rules of professional conduct.
Flaws still being found in filings
However, it has recently been under fire due to the numerous and widespread insufficiencies in foreclosure filings in various courts around the nation (not just Hawaii).
These insufficiencies were reported by major mortgage lenders and other authorities, including: the failure to review documents and files in order to establish standing and other foreclosure requisites, filing of notarized affidavits which falsely attest to a review taken place when it indeed did not, and the e-signature, or “robosignature” of documents.
Now on to the touchiest of issues
Now that we have an overview of the issues, the Kingcast and Mortgage Movies feature can be discussed. This movie brought into light some of the “touchy” issues surrounding foreclosures; especially wrongful foreclosures. One of the first things I picked up on was the repeated message that homeowners have the right to challenge the chain of title and blindly accepting this policy is not a good idea.
Here’s why: Christopher King states in the movie that form 1003 (uniform residential loan application) is a security issue. Bank of America previously held a patent on this form until 2006 when Fannie Mae forced the removal of the patent fee. The real problem begins as soon as you fill out the form; it begins the chain of approval or rejection mentioned above.
However, this data is being farmed to Mindbox, a software company used by Ocwen.
Wells Fargo offers a generic statement
Wells Fargo has illegally pushed thousands of borrowers into subprime mortgages, falsified loan documents, and generally made life miserable for more than a few homeowners. The case is no different in Hawaii where King is investigating. He contacted Wells Fargo regarding several cases where homeowners had been refused loan modifications and stays.
Initially when King contacted Wells Fargo, he received no response even though he knew the messages were received thanks to an email tracking program. After he showed them proof that they indeed received the emails, he got back a very generic response stating they had no comment at this time.
Meanwhile, homeowners are stressing out about their homes, in many cases making a bad situation worse, simply because they are being ignored. Every single mortgage/loan situation is different and the very least lenders could do is actually look at the papers, especially since some of the papers were formulated in a dishonest manner in the first place.