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Internet “Terrorism” — Target: Mortgage Servicing
by Alan S. Wolf
The Wolf Firm — USFN Member (CA)

Mortgage servicers know that it’s probably a bad day when they arrive at their office to find reporters from 60 Minutes waiting in their lobby to speak to them regarding some mortgage servicing problem. 60 Minutes, a CBS syndicated news program, has a reputation for featuring liberal causes. Its 20-minute segments on various issues reach millions of households each week, and despite exposing problems in often a very one-sided manner, its segments almost invariably have a great influence on public opinion. That influence is further enhanced by the news media, which often pick up on the 60 Minutes segments and add their own investigations and twists. In short, a 60 Minutes segment has tremendous influence, even beyond the initial broadcast.

What’s Out There Can Hurt You

Those being investigated by 60 Minutes understand this power and know that they must act carefully to survive the assault. Accordingly, when 60 Minutes calls, companies respond. Top executives, public relations firms, and a battery of attorneys all join in a coordinated effort to mitigate the attack. In some cases, it is truly a fight for survival. While the power of 60 Minutes is awesome, it pales in comparison to the power of the Internet. That bears repeating: The power of 60 Minutes pales in comparison to the power of the Internet.

Every day on the Internet, mortgage servicers are attacked by individuals whose reach and influence now exceed that of 60 Minutes. And while 60 Minutes is subject to the rules of journalism, where at least the matters presented are first reviewed and edited, the Internet has no such controls. Yet, despite this immense threat, mortgage servicers have essentially ignored attacks launched from the Internet. They do not call in their top executives, public relations firms, or legal counsel to tackle the problem. Instead, they largely do nothing. This is in part because while mortgage servicers regularly use the Internet, they do not understand the power of the Internet as employed by the groups that regularly attack the industry. It’s time to change that.

If you think about it, the Internet, by its very nature, is in many ways an ideal arena for activity by those dedicated to attacking the mortgage industry. Most notably, it offers:

▪ ease of access
▪ rapid flow of information
▪ little or no censorship, regulation, or other form of governmental control
▪ anonymity of communication
▪ inexpensive development and maintenance of a Web presence
▪ the ability to influence coverage in the traditional mass media, which increasingly use the Internet as a source for stories

When you add to this foundation the growth of the Internet, these factors alone become alarming. In 1995, there were merely 16 million people on the Internet. In 2000, that number had reached 500 million worldwide. Today, there are over a billion people using the Internet across the world, and over 75 percent of all Americans (approximately 205 million) have Internet access. And these numbers continue to climb.

Unfavorable Forums

Mortgage servicers are vaguely aware of these factors. You would almost have to be brain-dead not to have used the Internet or know of its tremendous growth. And, obviously, mortgage servicers regularly use the Internet for email and to review industry websites for information. Most mortgage servicers even provide their own websites at which their borrowers can get loan-level information. But beyond these basics, there is a dangerous lack of knowledge. Very few servicers know anything about forums, blogs, or RSS. Yet, all of these Internet tools are regularly, and quite adeptly, used by individuals, and even whole consumer groups, to attack our industry.

The most nefarious Internet tool is the forum. An Internet forum (also known as Web forum, message board, electronic bulletin board, discussion board, discussion forum, or discussion group) is a place on a website where electronic discussions can be held. The discussion is held by a forum member posting a typed comment or question (called a “posting”), which can be viewed by other members. Those members can then reply, and those replies, in turn, can be viewed, and additional responses can be made. The initial question and the subsequent responses are organized on the webpage so that each posting is shown immediately after the prior posting in chronological order. This is known as a “thread.” By reading the thread, the member can determine the thoughts of the members on the topic and add his or her own comments. These threads generally remain saved on the forum website for future reading indefinitely.

Know Your Foes

Internet forums create a sense of community to discuss any variety of topics: a hobby, an illness, a political thought. Unfortunately, individuals and consumer groups angry at the mortgage servicing industry have started their own forums where borrowers create a community to regularly discuss the purported misdeeds of our industry. Like a snowball rolling downhill, the claims in these forums become enhanced and build to such a size that soon class action attorneys take notice, and litigation begins.

There are literally hundreds of such forums directed at attacking our industry. And forums sometimes disappear, only to be reincarnated on some other site. Currently, the three leading forums attacking our industry are www.msfraud.org (mortgage servicing fraud), www.ripoffreport.com and www.scam.com/forumdisplay.php?f=30. Each has it own approach.

The mortgage servicing fraud site is narrowly directed at only our industry. A quote from the home page puts its approach into perspective: “The American Dream of homeownership is being turned into a NIGHTMARE! This nightmare is orchestrated by a growing number of well-known, corrupt, and ruthless mortgage servicers who manufacture defaults on performing loans to then flood the account with illegal fees strategically designed to STEAL the borrower’s equity — and ultimately the property. In addition, the borrower’s credit is destroyed to prevent them from refinancing with another lender.”

There are a number of adverse articles on the site and other informational resources that negatively reflect on our industry, but the guts of the site is its forum (http://www.msfraud.org/forum.htm). Here, every imaginable problem is discussed; every adverse case is referenced; and like sharks that smell blood, class action attorneys tout their successes and seek new clients. This site alone should keep everyone in the industry up late at night. Nonetheless, it is a must-read to gain insight into just how serious this problem has become.

Troubling Blogs

Following close on the heels of forums is the relatively new Internet tool known as a blog. A blog is a website, most often authored by one person, who picks the topics or posts for the blog in the form of his or her own personal opinion. Others can then link to that person’s posts or comment right there on the blog.

Blogs differ from forums in subtle ways. A blog is, first and foremost, a publishing tool; a means to provide a voice to the individual blogger’s single point of view. Because blogs often include the ability for readers to comment on blog posts, they are somewhat like forums; however, the interaction is limited to responding to the blog post. Unlike forums, new discussions cannot be created.

Blogs cover a plethora of topics. It is estimated that there are nearly 50 million blogs currently in existence with more being added every day. Unfortunately, some of those blogs are set up to attack our industry. Two such examples are http://www.mymortgagedisaster.com/ and http://www.mortgageabuse.com/archives/cat-mortgage-servicing.html. These sites exist because they have developed a following, and all influence public opinion.

To make matters even worse, most blogs are syndicated through the use of an Internet tool called RSS (Really Simple Syndication). RSS is a way for websites to send their articles to news bureaus and anyone else who subscribes to this free service. Accordingly, it lets Web users freely subscribe to their choice of content sources across the Internet. Aggregation tools (e.g., personalized start pages, RSS readers) display summaries of these subscriptions, which update automatically when new information is available. RSS reduces the need for users to visit many individual websites and provides the user with near instantaneous information. The traditional news media often subscribe to RSS feeds to keep on top of various subjects, including the claims of those who would attack our industry.

Case in Point

On September 8, 2004, CBS News’ 60 Minutes aired a segment entitled “For the Record” concerning President Bush’s Texas Air National Guard service. The segment referred to certain documents that were adverse to President Bush’s claims, and 60 Minutes reported that it had “consulted with a handwriting analyst and document expert who believes the material is authentic.” Within minutes after the segment aired, questions about the authenticity of the documents were raised on numerous Internet blogs. Since these blogs were syndicated through RSS, the traditional media were immediately tipped off, creating a firestorm in print, on the air, and on the Internet about the documents’ authenticity. 60 Minutes was forced to retract its statements, and Dan Rather, the prominent news anchor who reported the story, apologized and later resigned. That same power is now being directed against the mortgage servicing industry.

The Internet is a potent force. Mortgage servicers need to play catch-up and educate themselves on the Internet tools used by those who seek to unfairly attack our industry, and they need to develop methods and procedures to mitigate the harm.

source

http://www.usfn.org/AM/Template.cfm?Section=Home&CONTENTID=5794&TEMPLATE=/CM/HTMLDisplay.cfm&SECTION=Article_Library

Ramblings of An Internet “Terrorist”
By Michael C. Dillon
Mortgage Servicing Fraud victim (NH)
www.getdshirtz.com

Let me begin by saying that my career goals never included becoming an “internet terrorist”. After wandering aimlessly through several years worth of college education I developed an interest in the entertainment industry and, after a brief stint as maintenance worker at a small venue I embarked on what would become a 12-year run as a freelance stagehand in the Boston area for the most part. Back then, I’m not sure if I knew what the “Internet” was or if Al Gore had even invented it yet. However, here I sit, so many years later, being charged with “internet terrorism” by the likes of Attorney Alan S. Wolf of The Wolf Firm and member of The United States Foreclosure Network – USFN for those prone to acronym brevity.

First, let me say that I take tremendous exception to this label. I, for one, have never heard of a terrorist, in any form, spending years openly opposing and/or litigating issues (in my case an illegal foreclosure instigated at the hands of Fairbanks Capital Corp. / n/k/a Select Portfolio Servicing, Inc.) that they opposed. Likewise, I have never heard of any “terrorist” being awarded both permanent injunctions and contempt orders by a United States Judge as a result of any litigation brought forth by said “terrorist”. In my case, I have been awarded both injunctions and contempt orders against Fairbanks/Select Portfolio.

“Terrorists”, from my limited knowledge of their thinking, generally operate covertly seeking to inflict various degrees of physical, psychological, emotional and/or financial damage on their victims in the name of their own “cause”. I, unlike any “terrorist”, am relatively easy to find and even contact via my website, www.getdshirtz.com . I have both telephone numbers and physical mailing addresses at which I can be contacted and I’ve even been known to publicly patronize various area Dunkin’ Donuts or grocery stores on fairly regular intervals thereby being easily tracked for surveillance. But let’s go back to my understanding of just what a “terrorist” is for a minute.

I had loosely defined a “terrorist’s” goals as physical, psychological, emotional and/or financial damage in furtherance of their own cause. Now, granted, I am far from an expert on the topic but given the current state of world affairs, this definition seems fairly accurate to me. That being said, let’s examine what is experienced by a Mortgage Servicing Fraud victim during the course of a given experience. An MSF victim, much like the victim of a terrorist, will experience varying degrees of each and every one of the parameters of my understanding of what a “terrorist” hopes to achieve. MSF victims, especially those that have been victimized at length, experience real physical symptoms brought on by unrelenting and increasing levels of stress brought on when a mortgage servicer decides to target them for a manufactured default and subsequent illegal foreclosure. The MSF victim likewise experiences various levels of psychological and emotional trauma over the course of events during a mortgage servicing fraud event. And, finally, the MSF victim is usually financially crippled by the effects of fraudulent reporting to their credit, which only further destroys them and likewise deprives them of various rights to which they are entitled and should be able to freely enjoy under the plain terms of their mortgage agreements .

If anyone should be labeled a “terrorist”, Attorney Wolf, one may only need to look as far as the clients represented by the various members of the USFN and other firms who operate covertly by fabricating late charges, improperly assessing force placed insurance, and deliberately delaying the recordation of assignments at county registries of deeds in attempts to conceal the transferences of ownership of notes from the very home owners that agreed to those notes in the first place. And the “cause” that these mortgage servicing “terrorists” choose to put their faith in? Greed. Economics. The Almighty Dollar. Interestingly enough, the concealing of the transference of true ownership of notes sounds incredibly similar to the very actions and uses of the Mortgage Electronic Registration System or MERS for those acronym junkies. But that is a topic best left to those more knowledgeable than I. I believe that that should sufficiently cover Attorney Wolf’s casting of “terrorist” labels. Incidentally, the 60 Minutes quip made by Attorney Wolf is in reference to the 2003 coverage of several complaints and/or legal actions filed against then Ocwen FSB made by victim Attorney Kweku Hanson among others. Mortgage Servicing Fraud knows few boundaries.

Attorney Wolf attempts to paint mortgage servicers as only “vaguely aware” of the “powers of the Internet”. This statement could in no manner, shape or form be further from the truth. The entire Broker Price Opinion/Real Estate Owned (BPO/REO) industry alone, which is a huge part of the mortgage servicing fraud enterprise, is geared almost entirely toward and relies on web access/usage in order for BPO and/or REO agents to gather and submit data on pre and post foreclosure properties. Additionally, mortgage servicers have harnessed the power of the Internet in order to attempt to give homeowner’s access to their own loan accounts with the servicers. This, however, usually does little to assist a homeowner as the same “erroneous” information that shows up on paper monthly mortgage statements and coupons shows up in accounts accessed via the Internet.

From a mortgage servicing fraud victim’s standpoint, the Internet has been an absolute godsend. Were it not for the Internet, MSF victims would stand absolutely zero chance of either educating themselves about how they are being victimized or stand any chance of mounting any kind of plausible defense against an illegal foreclosure. Likewise, the Internet has allowed MSF victims to seek each other out and compare their experiences. Were it not for this possibility, MSF victims would largely be in the dark and on their own to figure out how to defend themselves against the actions of a fraudulent mortgage servicer.

One of the few times that Attorney Wolf is correct in his information is in stating that various topic specific forums created on the internet do create a sense of community for Mortgage Servicing Fraud victims. They also allow victims to come together and share their own experiences with the various mortgage-servicing entities that employ fraudulent tactics in the servicing of victims’ loans. Attorney Wolf makes specific reference to www.msfraud.org as one of the “foes” that the servicing industry should be familiar with. Attorney Wolf states that, “This site alone should keep everyone in the industry up late at night. Nonetheless, it is a must-read to gain insight into just how serious this problem has become.” Once again, this is one of the few times that Attorney Wolf is correct in his article. As a participant on the site’s forum, I can honestly say that MSFraud.org is a site that should keep everyone in the mortgage servicing fraud industry up late at night. And, as Attorney Wolf points out, it most certainly is a “must read” in order to gain insight into just how serious the issue of mortgage servicing fraud has become within the industry. Admittedly it is refreshing, albeit somewhat puzzling to see Attorney Wolf, a member of the USFN and partner of a large California “foreclosure mill” law firm, depart from the “party line” and acknowledge the fact that Mortgage Servicing Fraud really has become a serious problem in the mortgage and banking industry.

Unfortunately, with reference to the MSFraud.org forum, very few attorneys ever stop by to offer assistance to MSF victims. Only recently, largely through websites like www.msfraud.org and the efforts of the victims themselves, have the media and law firms become more aware that Mortgage Servicing Fraud actually exists. Until only a few years ago, Mortgage Servicing Fraud was a “non-issue”. No one knew what it was, how to define it, how to defend against it or how to bring charges against those servicing entities perpetrating it. I, myself, was called a “deadbeat” and was told to “stop trying to get out of paying my mortgage” by attorneys when I first went looking for legal representation several years ago. It was only after great effort and interviewing with more than 150 firms that I was able to find an attorney who not only recognized that what had been done to my loan by Fairbanks/Select Portfolio was wrong but was able to both stop the foreclosure action and obtain the first injunction on my behalf. As a result of that and since then I have been awarded a second injunction and a contempt order against Fairbanks/Select. I have also been fortunate enough to continue with the legal process and recently filed my own litigation in the hope of recovering damages suffered as a result of Fairbanks/Select’s fraudulent actions.

Attorney Wolf attempts to portray the mortgage servicing industry akin to much of this country’s senior population with regard to its unfamiliarity with the Internet. Likewise, as a result of that unfamiliarity, Attorney Wolf attempts to paint the mortgage servicing industry as being unfairly persecuted by individual Mortgage Servicing Fraud victims – victims that have been physically, psychologically, emotionally and/or financially tortured and/or destroyed by, in many cases, years of Mortgage Servicing Fraud abuse but nonetheless with greater Internet savvy than the multi-billion dollar servicing entities that sometimes take advantage of the true “least sophisticated debtors” that the industry serves.

The September 8, 2004 60 Minutes piece is indeed an excellent example of what the Internet can accomplish. Much like in many Mortgage Servicing Fraud cases, questions arose as to whether or not the truth was being told. I would venture to guess that this is what makes Attorney Wolf so concerned about the Internet, various forums and blogs, and the fact that Mortgage Servicing Fraud Victims have relatively easy access to it. Fortunately for MSF victims, there are fellow victims ahead of the curve out there who have chosen not to stand idly by and succumb to the actions of fraudulent servicers. Through the Internet, e-mail, blogs, forums and websites they are able to each new cycle of Mortgage Servicing Fraud victims exactly how to protect themselves and how to recognize when their loans may be at risk.

Yes, Attorney Wolf, the Internet absolutely is a potent force. But it is Mortgage Servicing Fraud victims who need to play catch-up and educate themselves about the various ways that they are unfairly and, in many, many cases illegally being attacked by your industry. And trust me when I say that there are methods and procedures being developed to not only mitigate but hopefully eradicate the harm - the physical, psychological, emotional and financial terror – being inflicted on Mortgage Servicing Fraud victims by your industry.

If anyone would care to discuss any of the opinions stated here I can easily be contacted through my website www.getdshirtz.com . I will be more than happy to discuss either my own case, as much as I safely can while litigation is pending, or mortgage servicing fraud in general.

http://www.care2.com/c2c/group/PredatoryLending

http://groups.google.com/group/emc-mortgage-servcing-fraud

http://www.freepowerboards.com/emcfraud/viewtopic.php?p=58#58