My husband and I were notified yesterday that our loan was being sold effective 7/31/07 to Wilshire Credit Corporation. Our loan has bounced around quite a bit in the last few years and being a Certified Housing Counselor familiar with predatory lenders and Servicing companies, I check on the new servicer whenever we are notified of a change. After googleing Wilshire last night, I was (needless to say) a little freaked out by what I have read on the internet. I am so sorry that many of you have become victims of this unscrupulous company and suffered such harsh realities. I am planning on being very proactive to ensure the proper servicing of my loan. If the information I have read is false, no harm done. If it is true, I am prepared to fight for my home and credit score.
Unfortunately in the housing counseling industry (at least in my experience) the training provided for assisting homeowners with mortgage issues focuses on mortgages that are insured by the FHA (Federal Housing Administration) under the US Dept of Housing and Urban Development (HUD). Those loans are very regulated and the lenders and servicers of those loans (including Wilshire) are required to handle them in a very specific manor or face HUD. Sub-Prime loans and/or non-conventional loans are often not insured by FHA and therefore do not have the power of the government department specifically designed to address housing issues behind them. Most lenders and servicers out there follow HUD standards anyway, but there are those of the predatory nature that just do what they want because few people know how to fight them.
There are two regulating Agencies operating under the United States Treasury that oversee the operations of banks:
The Office of the Comptroller of the Currency (OCC) (www.occ. Treas. Gov) charters, regulates, and supervises all national banks. It also supervises the federal branches and agencies of foreign banks. Headquartered in Washington, D.C., the OCC has four district offices plus an office in London to supervise the international activities of national banks.
And:
The Office of Thrift Supervision (OTS) (www.ots. Treas. Gov) is the primary federal regulator of federally-chartered and state-chartered savings associations, their subsidiaries, and their registered savings and loan holding companies. OTS was established as a bureau of the U.S. Department of the Treasury on August 9,1989, and has five regional offices located in Jersey City, Atlanta, Chicago, Dallas, and San Francisco. OTS is funded by assessments and fees levied on the industry it regulates.
Wilshire Credit Corporation (and Merrill Lynch) is regulated by the Office of Thrift Supervision.
If you are not receiving a satisfactory response to your inquiries or poor (horrible!) customer service and they are mishandling your account, tell them you will be filing a complaint with the OTS if they do not assist you or service your loan properly.
If their collection department is harassing you, tell them you will file a complaint with the Federal Trade Commission for them violating the Fair Debt Collection Practices Act.
If they change the terms of your loan or asses you late fees within 60 days of the transfer, tell them you will file a complaint with HUD for violating the The Real Estate Settlement Procedures Act (RESPA).
See the HUD article below for specifics about writing your complaint. You should complain in writing to the president of the corporation first (see instructions) and I would Copy the president of Merrill Lynch sending both letters Certified Mail Return Receipt Requested.
Document EVERYTHING. Keep a phone log or journal with date and time of your calls, who you spoke to and a summary of what happened. Keep ALL correspondence.
If you have been scammed by any lender/servicer. PLEASE file complaints with these agencies and your state Attorney General.
From HUDs website:
http://www.hud. Gov/offices/hsg/sfh/res/rightsmtgesrvcr. Cfm
When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today's market mortgage servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute. Sections 6 and 10 of RESPA provide you with certain rights regarding the servicing of your mortgage and escrow account. Please read this important information concerning your rights and the responsibility of your loan servicer.
Duty of Loan Servicer to Respond to Complaints. If you have questions or problems with the servicing of your loan, the servicer is required to respond to you. Write to your servicer and call it a "qualified written request under Section 6 of RESPA." It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. (See Sample Written Complaint to Lender.)
Loan Transferred to New Servicer. Your loan servicer is required to notify you in writing at least 15 days before the servicing of your loan is transferred to a new servicer. The notice must include the following information:
The effective date of the transfer, the date your current servicer will stop accepting payments and the date the new servicer will begin accepting them.
The name, address, and toll-free or collect call telephone number for the new servicer.
Information that tells whether you can continue any optional insurance, such as mortgage life or disability insurance, and what action, if any, you must take to maintain coverage.
A statement that the transfer of servicing does not affect any term or condition of your mortgage documents other than the terms directly related to the servicing of the loan.
Treatment of Payments During Transfer Period. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.
Escrow Account. RESPA does not require that you maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc. Nor does RESPA have any jurisdiction over the decision of the lender or servicer to require or terminate an escrow account. RESPA does, however, provide you with the following protections with regard to the escrow account:
If your lender or mortgage servicer requires you to maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc., RESPA requires that the servicer pay such items by the dates due to avoid a penalty or late charge.
RESPA sets limits on the maximum amount of money the servicer may require you to maintain and pay in the escrow account. (More information about escrow accounts, including how to calculate the maximum amount RESPA allows the lender to require in the escrow account.)
PMI (Private Mortgage Insurance). RESPA has no jurisdiction over the lender's decision to require PMI. Nor does it have any jurisdiction over the lender's decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.)
HUD Hotlines
(FHA BORROWERS PLEASE INDICATE THAT YOUR LOAN IS AN FHA INSURED LOAN.)
Office of RESPA
Office of Housing, Room 9154
US Department of Housing and Urban Development
451 Seventh Street, S.W.
Washington, DC 20410
PHONE 1-800-347-3735 (10:00 A.M. -4:30 P.M. Monday-Friday)
FAX 202-708-4829 Attn: Robert Ashworth
E-MAIL hotline@hudoig. Gov
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Consumer Response Center's toll free number: 877-FTC-HELP
Office of Thrift Supervision
Complaints regarding a Federally-Chartered Savings Bank (FSB) should also be sent to the Office of Thrift Supervision (OTS). See the OTS website for appropriate regional office to send your complaint. Http://www.occ. Gov/index.htm
I am not an attorney but am speaking from my experience as a counselor with Loss Mitigation experience.
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