The mortgage servicing company formerly known as Fairbanks Capital Corporation
(now known as Select Portfolio Services - "SPS
") appears to have gained much of its notoriety by being accused of screwing individual homeowners through alleged predatory mortgage servicing practices.
However, at least according to the allegations contained in one lawsuit filed in an Austin, Texas Federal Court, Fairbanks has also been alleged to be screwing the owners of the mortgages held in one securitization pool that it services. Some of the allegations involve Fairbanks' conduct after the ownership of a consumer's home is acquired through foreclosure.
Among the allegations are: (1)
self-dealing in connection with money it indirectly received (ie. kickbacks???) for real estate commissions, commissions on "force placed" insurance, property inspections, and broker price opinions; (2)
allegedly setting up what the lawsuit describes could be straw or dummy companies for this purpose (see Plaintiff's First Amended Complaint
- page 18, paragraph 38), and (3)
" homeowner defaults, thereby driving homeowners into foreclosure.
In addition, the lawsuit alleges that, when selling foreclosed property ("REO
"), a compensation arrangement was set up between Fairbanks and the real estate broker that, with respect to property in the $70K to $120K range, "[n]either the broker nor Fairbanks had any incentive to sell REO property for more than $60,000.00, demonstratably leading to fire-sale prices when the objective appraisals before and after the sale supported a much higher price
." (see Plaintiff's First Amended Complaint
- page 18, paragraph 39; and also footnote 4 contained therein).
A summary of these points and the names of the entities allegedly set up and controlled by Fairbanks / SPS can be found on the website, GetDShirtz.com
(beginning about a third of the way down the page).
For a copy of the entire lawsuit containing all the allegations and a description of how Fairbanks / SPS allegedly structured their business transactions in the conduct of their mortgage servicing business, see Ellington Credit Fund, Ltd. vs. Select Portfolio, Inc., et al.
(Plaintiff's First Amended Complaint
- 19 counts - 52 pages, 2.35 MB approx.) - available online courtesy of Michael Dillon and GetDShirtz.com
Go here for other posts on the company formerly known as Fairbanks Capital Corporation
, go here
, and go here
for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra
For consumer complaints referring to Fairbanks Capital/Select Portfolio Services appearing on Ripoff Report