EMC Agrees to Pay $28 Million in Settlement – but what about the homeowners who lost their homes due to fraud?

By Denise Richardson:

The Consumer Warning Network has another stunning video that paints a picture of greed and corruption that explains why we are where we are today with the mortgage and credit crises. Many borrowers took their complaints to legislators, regulators and Judges -without finding relief -or justice. Many fought incessantly, (and are still fighting) but ultimately, many lost their homes -even though they never missed a mortgage payment.

Borrowers watched others lose their homes as the media, continued to spin the story and point fingers for the debacle at the borrowers! Judges, Legislators and Regulators also turned a blind eye to their countless complaints.

Now look where we are -and then take a moment to look a little deeper to see why. The mortgage servicing industry is not regulated. In fact, the industry has built in financial incentives, designed to bring them greater profits by not working with the consumer -and affording them higher profits by charging late fees -fabricated or not.

From the Consumer Warning Network;

Former financial giant Bear Stearns and its subsidiary loan servicer EMC have agreed to pay $28 million to settle Federal Trade Commission charges of unlawful loan servicing.

The FTC complaint charges Bear Stearns and EMC with unfair and deceptive loan servicing practices. The companies are accused of misrepresenting the amounts borrowers owed, charging unauthorized fees like late fees, property inspection fees, and loan modification fees.

They are also accused of engaging in unlawful and abusive collection practices. Hundreds of borrowers have shared their stories of how they say EMC mishandled their mortgages, and how law firms such as Grenen & Birsic only seem to further help facilitate this seemingly deliberate fraud upon the courts.