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D.C. Firm’s Briefing Paper concludes that the curable scourge of Mortgage Servicing Fraud and Abuse is destroying the American Dream. Mortgage servicing fraud and abuse by unscrupulous mortgage companies and their agents is stripping working families of home equity and, in certain instances, foreclosure.
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Home Equity Theft Reporter: In many cases, lenders are giving homeowners just 45 days to buy flood insurance or threatening to obtain it for them, often at exorbitant prices. Some homeowners have been told their premiums could run as high as $6,400 a year. Authorities expect the problem to get worse.