Are We Surprised By This? Conniving on the way up, conniving on the way down

NYT: Subprime Brokers Resurface as Dubious Loan Fixers

By Mr. Soussana’s own account, his customers fared less happily. He
specialized in the exotic mortgages that have proved most prone to
sliding into foreclosure, leaving many now scrambling to save their
homes.

Yet the dangers assailing Mr. Soussana’s clients have
yielded fresh business for him: Late last year, he and his team —
ensconced in the same office where they used to broker mortgages —
began working for a loan
modification company. For fees reaching $3,495, with most of the money
collected upfront, they promised to negotiate with lenders to lower
payments on the now-delinquent mortgages they and their counterparts
had sprinkled liberally across Southern California.

“We just
changed the script and changed the product we were selling,” said Mr.
Soussana, who ran the Los Angeles sales office of Federal Loan
Modification Law Center. The new script: You got a raw deal, and “Now,
we’re able to help you out because we understand your lender.”

This entry was posted in Uncategorized. Bookmark the permalink.