July 11
Re: Rebuttal to Mr. Ozannes response to the media.
To all who should be concerned:
As one of a growing number of innocent homeowners victimized by this calculated mortgage servicing scam, I am compelled to offer a rebuttal to Mr. Ozannes letter as follows.
Fairbanks Capital Corp.
June 3
My name is James H. Ozanne. I am the new Chief Executive Officer (CEO) of Fairbanks Capital Corp. Since many of you have reported on or are planning to report on our company, I want to tell you, directly and personally, a few important things.
Perhaps the most important, is that we recognize that there are problems in how this company has managed the loans of some borrowers and we are determined to fix those problems.
*RESPONSE*
The problem is, Fairbanks is knowingly, intentionally and voraciously operating outside the boundaries of law. What is truly disturbing; is this racketeering scam has until recently, remained uninterrupted by the courts and government.
Fairbanks problem is they got caught managing loans illegally and are fearing if they have to pay restitution, its going to take all the fun out of it. Unfortunately, the millions of dollars in penalties will only put a minor dent in the amount Fairbanks has extorted from borrowers.
The current government investigations will irrefutably establish Fairbanks guilty of replicating the same calculated scheme captured by a growing number of portentous servicers intentionally defrauding borrowers of their equity and property.
To date, we have not witnessed Mr. Ozannes apparent willingness to fix any of the problems. The number of meritorious complaints has been magnified by complaints referencing Mr. Ozannes attempt to evade the truth.
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The problems flow from a number of causes, including the rapid expansion of both non-prime lending in general and of this company in particular, the fact that Fairbanks manages a disproportionately large number of loans from companies that had failed or were close to failure, and a troubled national economy that has put increased pressure on borrowers.
*RESPONSE*
Mr. Ozanne attempts to excuse Fairbanks problems to rapid expansion. Were that true, it would not explain why Fairbanks would expend the —extra— time going into individual accounts with the sole intent to make false alterations, adding late fees to payments verified to be received on time, or returning payments to create the appearance of a default when in actuality the default was fraudulently manufactured. Marking performing loans in default creates the pass-code to convert these loans into equity and illegal-fee strip-mines.
Homeowners then find themselves in a Black-Hole with no exits. Problems attributed to managing large numbers of loans from failed or troubled companies, is simply not true. One borrowers loan went from Ocwen to Fairbanks and is now back with Ocwen. Fairbanks also obtained loans from Bank of America, (a/k/a Nationsbank, Equicredit, NationsCredit, etc.) Additionally, the unresolved complaints date back prior to any troubled economy. Any increased pressure on borrowers comes from the illegal charges and malicious maltreatment of their accounts. Again, Mr. Ozannes explanation is off point.
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However, I recognize that the reasons for the problems are not your primary concern. Nor are they mine. The principal issue is fixing them. So, let me tell you some of the things that we have done and are doing.
*RESPONSE*
The Fairbanks CEO is not concerned about what created the problems? Any savvy investigative reporter should ask, "Why aren't the REAL reasons behind the problems (i.E., a designed-in method for fraud) your concern?"
If Fairbanks management is not disconcerted with the reasons for the problems, how can they create an effective game plan for resolving them? This statement is disturbingly moronic.
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As you may know, we have a new senior management team here that fully shares my commitment, as well as a new Chairman of the Board, whose comments I think you and your viewers/readers will find interesting. (Our chairmans recent statement on these issues is attached.)
We have created a Consumer Outreach Committee of our board of directors that will oversee the borrower related actions listed below.
We are conducting a top-down review of all servicing processes to see where there are problems and to allow us to fix them expeditiously.
We are publicly committed to resolving in a timely and equitable manner any existing issue with borrowers whose loans the Company services.
We will appoint a consumer ombudsman to assist any borrower who has an unresolved dispute with the company.
We are developing, with the assistance of consumer advocates, a Borrowers Statement of Rights that will be issued to every borrower whose loan we manage.
We have substantially revised our policies and practices with regard to the placement of hazard insurance, including expanding the timeline and communications with borrowers, and enabling them to provide their insurance information through many different options.
We have created a new Customer Assurance Review Department (CARD), charged with conducting a special, additional review of any loan on the verge of foreclosure. CARD will ensure that each of these loans has been handled in accordance with our policies and practices and that there are no outstanding disputes over fees, timely posting, insurance, and the like, as well as for hardship.
*response*
Any miniscule amount of brain activity would alert the reader to see these supposed changes are only trying to polish rust. Respectable and ethical mortgage servicers operating within industry guidelines and laws do not need any of these frivolous improvements. Ozannes comments carry the connotations offered in the Fox Guarding the Hen House scenario and we are witnessing their new management as nothing more than a change into dirty clothes.
Homeowners who are less than 30 days from illegal foreclosure have been forwarded to Fairbanks (CARD) Department. So far, it appears to be a Cant Afford to Resolve Disputes (CARD) Department. We are still waiting for a response!
A Borrowers Statement of Rights? What is this for? Fairbanks is being investigated for violation[s] of law, consistently ignoring industry regulations, consumer laws and the Constitutional Rights of their customers. If Fairbanks/PMI refuses to not honor these, why introduce more confusion?
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A number of these steps were initiated in the months and weeks before I became CEO. My task is to make sure that they live up to their promise expeditiously and that where further actions are called for, they are taken without delay.
*RESPONSE*
If a number of steps were already in place before Ozanne became the CEO, then why the need for executive changes?
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Though there is plenty of work to be done, I am pleased to say that our efforts have begun to produce tangible results. The percentage of loans in which there is a dispute with the borrower has declined by more than 30% over the past two months.
The two most vocal and well-known critics of the company have met with our new management team. They have stated that they believe Fairbanks and its primary shareholders are fully committed to addressing and resolving issues raised by borrowers; and they have offered to lend their advice on our efforts to fix the problems. We have accepted their offer.
*RESPONSE*
Any company under criminal investigation better be fully committed, which raises the question: If the reasons behind the problems do turn out to be criminal, will Fairbanks and PMI defend those individuals found to be responsible?"
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I must say that reading the coverage of this company over the past weeks and months has not been pleasant. Though everyone says it, I am not sure anyone really welcomes media scrutiny, particularly when there are real problems that need to be addressed. Nevertheless, I must also say that some of the coverage has helped us to identify and help borrowers with legitimate grievances and to understand the breadth and depth of the problems the company faced. To this end, we would encourage you to have any borrower that feels that he or she has an unresolved issue contact the Company through a special e-mail we have set up to ensure we are responding to consumers issues, it is [email protected].
*RESPONSE*
If watching the coverage has not been pleasant, consider the nightmares you are putting your targeted victims through on a daily basis. The question we need answered is: How and when is the company planning to satisfactorily compensate the victims whose lives you already destroyed?
It is shameless for Fairbanks and PMI to attempt to persuade anyone that the media coverage helped identify the problems knowingly created by their own design. Keep in mind, former employees revealed Fairbanks goal was forcing loans into default.
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That said, not every story has been accurate. There have been numerous reports of allegations, based solely on an interview with a borrower, that were grossly inaccurate.in almost every case, the reporters on those stories never called to allow us an opportunity to investigate and respond. As you may know, federal consumer privacy laws prohibit us from discussing the details of any borrowers personal financial records. However, we can and will tell you whether there are legitimate issues that we need to address or whether our records tell a different story from the account given to you. I should note that it takes about 24 to 36 hours to gather and thoroughly review records so that we are certain that the response we provide to you is as accurate as we can make it. If you have questions or are going to be reporting on the Company, we ask that you call 202-585-2205 to provide the Company an opportunity to comment.
*RESPONSE*
Mr. Ozanne would have demanded the opportunity to address any story he felt was less than accurate. Mr. Ozanne, lets pick one story you feel is not accurate and allow Jane Miller to examine the documents, with you and the borrower present and on camera. Before you do, understand each complaint was investigated prior to its coverage.
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My primary responsibility is to ensure that we move forward with the Companys comprehensive plan to improve loan servicing for consumers. However, I also recognize that dealing with your questions as accurately and expeditiously as possible is a part of communicating these changes effectively with them. I ask that you give us that opportunity.
*RESPONSE*
Every single reporter covering this issue would welcome Mr. Ozannes on-air comments and would gladly review supporting documentation; if any exists. Mr. Ozanne has had several months to respond. If he could offer a meritorious rebuttal, he would have done so months ago.
MortgageVictim
California
U.S.A.
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