Mortgage Loan Servicers Profit From Foreclosures
“Servicers” Post Losses: Why? Because most of their revenue and profit comes from foreclosures not servicing
by Neil Garfield
If servicers were actually collecting money and dispersing money they would not be reporting heavy losses. The truth is that they don’t collect any money and they don’t make any disbursements to “investors.” That is why they can’t answer questions about collection or disbursements.
They are not servicers as we think of servicers. The only real purpose for these companies is to serve as placeholders for the prosecution of wrongful foreclosures. That is where they make their money. The moratoriums have reduced that flow of money to the “servicers”. So now they have reported losses. None of them were intended to be anything other than vehicles to throw under the bus in the event that the securitization scheme was blown wide open.
The relevance of this fact is simply that the “payment histories” they send or proffer in court are really reports of reports from data owned, operated, and maintained by third-party vendors who are accountable not to the “servicer” but rather to an intermediary for the investment bank that leads the securitizations scheme. And that means that the payment history is hearsay and not qualified as an exception to the hearsay rule. It is inadmissible. But without raising a proper foundation and objection, it will be admitted into evidence and used against the homeowner.