Ginnie Mae

Please find this Complaint against Caliber Home Loans and their branch, PennyMac, collectively Countrywide Financial to whom Ginnie Mae entrusted servicing of my loan originated by Perl Mortgage Inc.

I am a victim of Caliber Home Loan, Inc. deceptive practices with escrow, insurances; Government-backed securities, identity theft; unjust enrichment; breach of fiduciary duties; bad faith ; corruption and bribes.

On July 29, 2016 I signed a VA mortgage loan with Perl Mortgage Inc. (“Perl”) who offered me monthly payments of $896.94. A big chunk of this payment was my escrow account which included $1,177 per year FEMA Flood Insurance for properties located in a flood zone.

However, based on a recent survey from a local Company, my property is not even included in FEMA Flood Map, so my $98 per month payment for FEMA's Flood insurance was obviously a fraudulent attempt to extort more money.

The conditional approval of my VA loan came from Caliber Home Loans, Inc, aka Countrywide Financial - which did not catch my attention until I started to closer review my documents due to their deceptive business practices; scam with my escrow and obvious identity theft.

The document which I signed as a Mortgage was in fact a camouflaged Initial Intent to Issue Mortgage-Backed Securities using my name, my home, my signature and my reputation as a collateral to sell and resell it myriads of times by all possible companies, without any disclosures and without my consent to be sold like a cow hundreds of times per day; making millions of profits for Caliber, PennyMac; and their co-conspirators like CoreLogic who likely purchased my data from Caliber and resells it to predatory lenders for profits, without my consent, which is clearly an identity theft.

Moreover, it appears that my home, name, signature and reputation are used for private offerings aka IPO by certain companies, particularly PennyMac whom Caliber sold my loan. Since May 2, 2019 PennyMac is my Servicer. On May 1, 2019 PennyMac sold 8 million of their shares backed in part by MY name and signature, to investors for about $168 million. Furthermore, PennyMac offers 8.9% yeld of MBS in their REIT Trust which is obviously coming from multiply trading on the same loan sliced on hundreds of parts, aka Ponzi scam. Basically, my loan was put in a cross-cut shredder and the pieces are sold for $23 per share. I purchased my $134K loan with with a substantial amount of money, over $90K on top of the house price, and I am authorized to be informed about all transactions with my loan; and receive a fair share of the profits from trades. In fact, my loan is not a loan anymore but an unsecured instrument sliced and diced in thousands of pieces and traded several times a day.

Of course nobody disclosed me profits received from selling my home and my private information; and millions received by trading on my name.

Perl was the original Servicer of my loan where Ginnie Mae (GNMA) was a Guarantor. As you know, GNMA does not directly issue, sell or buy pass-through MBS nor does it purchase mortgage loans. Instead, private lenders approved by Ginnie Mae originate loans that are eligible, pool them into securities, and issue the instruments. GNMA guarantees the loans, but does not service them.

Perl is a smaller lender, so I think that they sold my loan to an investment bank or likely Countyrwide's Caliber who within 30 days had to place my loan in some MBS Trust, which basically, destroyed the nature of the loan and converted it into an unsecured trading instruments. This investment bank probably appointed a Trustee,and started to sell my identity and my home on the open market making substantial profits.

However, I doubt if my loan was actually legally placed in any legit Trust. I also doubt if GNMA is still a guarantor for my loan. Here is a good possibility that my loan was somehow transferred to Lone Star Funding, who owns a huge part of Caliber . I think my loan is actually claimed to be an asset as part of some of their Delaware Statutory Trusts that is being concealed. It would be under a “private label”. The reason is that the loan is guaranteed by VA.

I further suspect that my loan was recently purchased by BlackRock who owns a huge stock at PennyMac whom Caliber transferred servicing of my loan.

Both, Caliber and Penny Mac are actually the SAME company, Countrywide, who operates these Delaware-incorporated and closely related to each other predatory organizations. Almost ALL executives at Caliber and PennyMac are Countrywide executives; and deploy the same criminal practices which collapsed US economy in 2006.

According to PennyMac's 2012 Prospectus, at least 51% of their portfolio are fictitious empty REMIC Trusts, including Citigroup Mortgage Loan Trust 2007-WFHE2, which Shareholders Foundation accused in fraud in 2008. Clearly, PennyMac/Countrywide II continues its criminal practices by trading thin-air void securities, many of which are fraudulent foreclosures based on forged documents; and creates a huge liability and damages to investors. Trusts in PennyMac's 2012 prospectus can be found below. None of them registered with SEC and IRS.

On August 17, 2016 Perl sold its servicing rights to Caliber Home Loan, Inc. who started manipulating with my mortgage payments shortly after accrued the loan. As soon as Caliber became a Servicer, my mailbox was swamped with letters from predatory lenders who were amazingly informed about my loan, including amounts owed and monthly payments; and who offered me adjustable rate loans without income verification and with substantial cash-outs. Sometimes several letters a week.

One of the most annoying was Prime Choice Funding who sent me numerous letters which looked like official Government's documents. Worth to mention, Prime Choice was sued in Washington for predatory and deceptive business practices, the legal case link is below. Prime Choice also sells VA loans likely subsidized by Caliber or PennyMac.

When I contacted Prime Choice and demanded explanations where they found my private information, they said that it was provided by CoreLogic, a subsidiary of First American Title and the owner of Countrywide’s Landsafe Appraisal Management Company. First Title of one of the main Title Insurers for fraudulent foreclosures sold to new buyers by fake REMIC Trusts non-existing Boards of Directors.

The same CoreLogic in 2013 purchased Middletown, CT-based business mapping who provides evaluations for flood zones.

Neither Perl Mortgage or Caliber never provided me any disclosures how my property was assigned in FEMA's flood map if FEMA even never did any research on it.

From the beginning of its servicing Caliber systemically violated their duties to disclose and refused to communicate with me when I specifically ask for explanations about payments changes.

After several months of $896.94 payments, Caliber suddenly reduced my monthly bill to $794.10, without any explanation about this change. Now I understand that this deceptive tactic is used to make a false impression that homeowners owe less payments on their loans; and artificially create a deficiency, which is a part of a fraudulent scheme created to push owners into defaults and confiscate their homes for shady investors.

For example, Caliber billed me for about a year $794.10 - while they were perfectly aware about any possible deficiencies when they paid taxes and insurance, so, in 6 months the deficiency should be obvious. But Caliber continued its reduced billing while apparently covered shortages from their own funds and never told me about any "shortages". Amazing charity!

Worth to mention, Lone Star Funding were Caliber has interest in at least five funds, makes their main profits by buying distressed mortgages guaranteed by the Government; and massively foreclose on them. Lone Star does not need our mortgage payments; they need our homes; and Caliber, who has a fatal conflict of interest to be a Servicer on Government-backed loans, works hard to supply Lone Star with the inventory by pushing borrowers in default using this simple trick with artificially created by Caliber "escrow shortages".

BlackRock who invested $200 million in PennyMac, also makes their billions from illegal foreclosures; and in 2018 was sued by Ocwen for criminal conspiracy to defraud investors and borrowers who claimed that BlackRock is engaged in a “covert criminal conspiracy” with the “specific intent and purpose of gouging enormous profits from the forced foreclosures and confiscation of the homes of hundreds of thousands of struggling families all across the United States”. Which is very true.

On January 1, 2018 Caliber suddenly sent me an Annual Escrow Account Disclosure Statement where they said that my new monthly payment will be…$1,066.74 due to “escrow shortage” – while none of my mortgage terms or other payments were not changed. It is a well-known “Escrow Shortage Scam” conducted by Servicers to accumulate additional funds for their benefits by overcharging customers; and intentionally push them into foreclosures by suddenly and substantially increasing their monthly payments by up to 50%. My actual mortgage payment with principal and interest is $606.21, while Caliber tried to collect from me $1,066.74.

I tried to communicate with Caliber about this “shortage” – without any accord, so I had to submit a Complaint with CFPB and Caliber suddenly reduced my monthly statement from $1,066.74 to $950.10 – again, without any explanations. It is very clear that here was no $1,066.74 “shortage”, Caliber merely wanted to defraud me and steal $116.64 per month under false pretenses; and I suspect Caliber’s scam worked well with many other borrowers, which substantially enriched Caliber at the detriment of defrauded home owners, most of whom have limited fixed incomes.

Caliber manipulations with my escrow account have other ill-driven pecuniary interest. By claiming false "escrow shortage" - which Caliber originally calculated at $1,066.74 - they attempted to push me into a hardship - which substantially benefits Servicers. It is not a secret that Servicers make their revenue from servicing loans on behalf of the beneficiary. When a servicer works for a securitized trust they make a steady fee based on the total sum value of all the loans they service for the trust. Missed payments are added as principle to a balance which increases the loan pool which increases the servicer’s fee. The longer loans stays in default, the more arrears borrowers build up, the larger their loan balance gets and the more money the servicer makes. Servicers make additional fees if a borrower defaults in the form of late fees or “process management fees.” The servicer charges these fees to the borrower often without any supervision by the beneficiary. Thus, the sudden increase in payments due to non-existing "escrow shortages" intend to put homeowners in default which will guarantee Servicer Caliber handsome profits by (1) accumulating unjust enrichment by overcharging borrowers (in my case it was $116.64 per month); (2) force homeowners to miss payments to increase Caliber's fees.

My loan is relatively small, yet Caliber managed to accumulate over $1,750 in "deficiency". People who have $300-400K loans and received $12-15K "escrow shortage" simply would not be able to afford additional $1-2K payments on their loans and fall into defaults.

Based on consumer's reviews, PennyMac utilizes the same practices hitting customers with huge "escrow shortage" bills - which combined with unnecessary "flood insurances" create a huge hardship on borrowers whose identities Countrywide Mob steal and resell on daily basis.

In January 2019 I received two important documents from FEMA and County’s Tax Assessor’s office which significantly reduced my escrow balance. FEMA sent me a Map Amendment Letter which allowed me to remove $1,177.00 for flood insurance; and The Assessor reduced my property taxes as a veteran.

On January 19, 2019 I sent a letter to Caliber, along with supporting documents, asking to remove these charges from my mortgage bill and adjust my escrow. My monthly statements are usually coming on 11th of each month, so Caliber had plenty of time to recalculate my payments for February 2019 statement.

Caliber never acknowledged the receipt of my letter, failed to make adjustment, and continued to charge me $950.10 in February while Flood Insurance much be removed.

On February 22, 2019 I sent a second letter to Caliber, again asking to adjust my escrow. Caliber failed to respond or acknowledge receipt of my letter but reduced my monthly statement to $854.76.

The flood insurance was $1,177.00, which is $98.08 per month. Caliber calculation of $950.10 - $854.76 makes it $95.34 per month, which they deducted from my escrow, which is $2.74 difference, in favor of Caliber of course. This is a small amount of money, but if Caliber has at least 100,000 customers and regularly overcharge them by at least by $2.74, it brings Caliber a handsome profit of $274,000 per month without moving a finger, just by manipulating borrowers’ escrow funds; plus overcharging me by $98.08 in February, when Caliber knew that FEMA flood insurance was removed but charged me for it.

On March 21, 2019 I again sent Caliber a letter asking to explain, itemize and recalculate my escrow account. Again, no response.

I had to submit a Complaint with CFPB, where I demanded Caliber’s explanation; refund of unlawfully collected funds; and disclose me following information, as required by TILA and RESPA.

1. When my loan was converted into a security and why they never provide me any disclosures or asked for my consent;

2. The name of the REMIC Trust which currently holds my mortgage and Note as a security instrument;

3. The name is the current Trustee for the Trust;

4. Copies of valid registration with SEC and IRS (Pub 938);

5. Copies of a valid Pooling and Servicing Agreement for ALL Trusts who ever held my loan as a security.

6. How many securities , derivatives or other products were created based on my loan, my home, my name, my signature and my reputation;

7. How many times my home was resold as securities; to how many investors; and how much profits Caliber and other parties received from trading on my loan, my house, my name and my reputation.

8. Why Caliber never made any disclosures regarding converting my home into a security and about compensation they received from trading

9. How my mortgage payment was calculated and why Caliber refused to adjust the escrow amount according to recent changes in FEMA’s insurance and taxes.

10. Order Caliber to refund me any overpayments on my escrow; disclose amount of trading profits; and pay me a fair share from their trades.

ALL of stated above information is a public record, under SEC Act of 1933, 1934; and not privileged. When fraud was suspected, SEC disclosures are mandatory to ALL securities, including GNMA.

On May 3, 2019 Caliber responded to my Complaint and made following false and misleading statements.

According to Caliber, they conducted an annual escrow analysis on my loan on January 30, 2019. The analysis determined an escrow account shortage of (-) $478.76, which was spread over 12 months. The total monthly payment adjusted from $950.10 to $854.76, effective April 1, 2019.

I never received any annual escrow analysis; and Caliber’s calculation of my new payment is fatally wrong. According to Caliber, my new “shortage” was $478.76. If spread over 12 months it would be $39.89 per month. But the difference between $950.10 and $854.76 is $95.34, or about the amount of Flood Insurance which I asked to remove. I respectfully demand Caliber to explain how they calculated my “shortages” and “adjustments” if none of them match. I think Caliber fabricated this "Review" after I submitted my complaint to CFPB and even did not bother to put a somehow suitable amount.

Caliber further stated that “Caliber has not received any documentation indicating the property is no longer located in a designated flood hazard area”. This is a lie. I could understand if Caliber misplaced one letter – but I mailed it three times, in January, February and March – so even such negligent company as Caliber should receive at least some of my correspondence (checks mailed the same days they received and cashed promptly).

Caliber also advised me that the information I requested in questions 1-8 (above) is proprietary and will not be provided. This is another lie. All this information is a part of mandatory SEC filings and IRS registration under Pub. 938, thus public information and must be provided under 12 CFR § 1024.36.

Caliber further stated that Caliber is the “current note holder” This is a blatant lie. Ginnie Mae have a special document custodian who handles the paperwork, not Servicers. The document custodian is required to certify to Ginnie Mae that the loans constituting the pools of mortgages (as collateral for Ginnie Mae securities) are represented by the documents placed in the document custodian’s control. The document custodian works under direct contract with the Issuer, but has a fiduciary responsibility to Ginnie Mae. A loan servicer who wants to see a Fannie Mae loan, for example, has to register for Web access to the custodian's portal, confirming his identity in the process.

Caliber intentionally tried to mislead me about their relationship to my loan which supports my conclusion that my loan was likely sold some shady investors, likely Lone Star, who engaged in illegal trading with unregulated US Securities; and now transferred from one Countrywide branch (Caliber) to another, even more criminal branch, PennyMac, which is basically the same Countrywide.

I will not be surprised to learn that Ginnie Mae, whose recent president Michal Bright is former Countrywide trader; and an executive for BlackRock and PennyMac, sells performing Gov't loans to Caliber and PennyMac who would do anything possible to convert them into defaulted loans and promptly foreclose since 99% of their crime victims do not understand this Ponzi scam.

Both, Lone Star and BlackRock do not want our pathetic mortgage payments, they want our houses since foreclosures are the main reason for these companies to exist. Both are swamped with customers’ complaints for deceptive business practices, particularly the same scam with escrow shortages.

These practices created a new housing crisis which will dwarf 2002-**** collapse since US real estate market is full of properties whose owners have no ownership rights due t fatally defective Titles; and merely have unsecured lines of credit "mortgages" which are again sliced and diced into mini-pieces behind borrowers backs, without our knowledge and consent, which is a text-book identity theft; theft of loans; and theft of homes. I have a reason to believe that this double Countrywide will collapse our economy again very soon and respectfully demand Ginnie Mae to stop their criminal conduct and Ponzi scam with unregulated US securities.

Sincerely

Elena