Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Saturday, November 10, 2012
Wells' Whistleblower Claims Foreclosure Retaliation After Providing Negative Testimony Against Outfit In Suit; Says Feds Used Her Affidavit To Score Big, Then Left Her Out To Dry
In Baltimore, Maryland, Baltimore City Paper reports:
A former Wells Fargo loan officer whose affidavit about company practices played a key roll in multiple lawsuits against the bank says her former employer is retaliating by illegally trying to take her Eastern Shore house in foreclosure.
Elizabeth Jacobson has written to Federal Housing Finance Agency and other regulators, claiming that Wells Fargo, which services the loan on the $529,000 house she bought in 2007, returned all seven of the payments she made under a government-sponsored loan workout. She was scheduled to face a foreclosure hearing on Nov. 5.
“I was denied [a loan modification] five days after the president of Wells Fargo testified before Congress that he had read my affidavit,” Jacobson says. “I contend they singled me out by returning the payments.”
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Jacobson’s affidavit—made part of Baltimore City’s landmark suit against Wells Fargo—said the company paid her and others bonuses for targeting high-interest loans to African-Americans and Hispanics. Wells Fargo settled the case last summer for an estimated $175 million (“Bank Payback,” Mobtown Beat, July 18). The company admitted no wrongdoing. It has always said that Jacobson’s charges were false.
When she worked for Wells, Jacobson said she earned six figures routinely, clearing $700,000 in 2004. After she left the company and blew the whistle, her financial status changed. Today she and a partner operate a foreclosure consultancy company from the Eastern Shore.
“We’re admitted as bank foreclosure examiners and loan securitization auditors,” Jacobson says by phone from the passenger seat of her partner’s car. “In six or seven circuit courts in Maryland we’re admitted as experts.”
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Armed with knowledge of sloppy foreclosure practices, Jacobson says she plans to fight her former employer on every front. “I want the foreclosure to be dismissed, then I want to go after Wells Fargo under the civil rights laws,” she says. “The DOJ [Department of Justice] used my affidavit to settle that big lawsuit . . . [then] they left me out to dry.”
For more, see Whistleblower Blowback (Wells Fargo employee who exposed questionable practices faces foreclosure).
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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