Pennymac's David Spector makes $7 million from 'Mortgage Escrow Shortage!'
Vol.2, No.35, December 31, 2024: ... PENNYMAC created 'MORTGAGE ESCROW SHORTAGE" as a form of mortgage racism to rob black and Latino home homeowners.
… A PENSIONERS’ ‘MORTGAGE ESCROW SHORTAGE’ HORROR STORY UNDER PENNYMAC FINANCIAL …
Norris R McDonald
Mary, a pensioner, (not her real name) has had mortage at a fixed rate off interest of 3.79 % with Bank of America in 2014. Mortgage payments which included escrow, home insurance and taxes was $1, 365.
In the first few years, as payments were made, Bank of America sent a check back to Mary which represented declining mortgage and interest rate payments over time.
Bank of America later sold the mortgage to Pennymac, in an incestous relationship. That was when Mary’s horror story started.
Despite mortage and interest payment being paid for over 10 years and, despite having fixed mortgage rates, homestead taxes have gone down, home owners insurance have not risen Mary’s mortgage has now risen to a whopping $1,732 for 2024-2025.
Pennymac has never been able to explain to Mary or, the hundreds of consumers who have filed complaint with the Consumer Financial Protection Bureau, how they arrived at this ‘mortgage escrow shortage.’
Pennymac is the rebranded crooked Countrywide that Bank of America bought in 2006 for $4 billion.
After the 2008 financial crisis, President Barack Obama bailed out the crooked financial losers such as bank of America.
There was a pretentious divestment of Countrywide. Then they changed their name to Pennymac and was re-accquired by Bank of America.
This incestous relationship has allowed Bank of America to practice mortgage racism through these loan shark operators such as Pennymac.
There is little or no accountability in the banking, investment or real estate world.
The Consumer Financial Protection Bureau have over 350 complainst against Pennymac all to no avail.
…. UNJUST ENRICHMENT …
David A. Spector
CHAIRMAN & CEO’s PAY …
BASE PAY
$1,000,000
BONUS + INCENTIVE COMP
$1,631,250
TOTAL CASH COMPENSATION
$2,631,250
STOCK AWARD VALUE
$3,374,957
OPTION AWARD VALUE
$1,184,278
TOTAL EQUITY
$4,559,235
TOTAL OTHER
$67,998
TOTAL COMPENSATION
$7,258,483.
This exorbitant unjust enrichment is mostly made fromDavid Spector’s abilty to use ‘mortgage escrow shortage,’ among other things, to boost Pennymacs’ profit to over $20 billion in just a few years.
COMPLAINTS
“PennyMac are thieves,” a REDDIT writer, Vince said.
“It is Countrywide Loans, with a changed name,“Re-branded,” Vince writes on REDDIT
THE 'BITTA' TRUTH ON ...PENNYMAC's SORDID MORTGAGE SCHEMES TO ROB HOMEOWNERS!
MORTGAGE FRAUD
In 2021 a Class Action lawsuit was filed against Pennymac for alleged FRAUDULENT fees they charged when people call to pay their mortgage.
There are hundreds of complaints online about mortgage fraud.
The FBI’s 2008 MORTGAGE FRAUD REPORT …
“Mortgage fraud continued to be an escalating problem in the United States during 2008” has become a self-fulling prophesy. Untrammeled mortgage fraud schemes is now an every day fact of life.
A 2023 Mortgage Fraud Report by CORELOGIC, reported on by HOUSEWIRE, says that although “housing sales are tepid mortgage fraud is still common.”
There have been some enforcement action but it has not been assertive enough. The Consumer Financial Protection Bureau have taken some actions against Bank of America, Wells Fargo and some other banks for violating federal law.
In July 2023, the Consumer Financial Protection Bureau and, the Office of the Comptroller of the Currency (OCC) ordered Bank of America to pay over $250 million for fleecing customers.
Lawsuits have however, being filed against both Pennymac and Bank of America for alleged wrongdoing but homeowners’ horror story gets worse.
This is once again being done in order to create sordid schemes to get unjust enrichment.
Having bought homeowners’ mortgages from Bank of America --- and elsewhere -- Pennymac started to charge consumers for “mortgage escrow shortages” that can’t be properly explained.
Your homeowners tax did not increase, mortgage rates are fixed, home insurance rates did not go up, but PennyMac arrives at a bogus MORTGAGE ESCROW SHORTAGE IN ORDER TO fleece homeowners.
Several court cases are on the docket against PennyMac. But it should not have been left to homeowners to take action against financial entities such as this BLACK ROCK-financed PennyMac.
RACIAL DISCRIMINATION
Financial distress, low wages, racial discrimination are pervasive problem in the American society. And no government, whether Democrats or Republicans have addressed this problem
According to a recent study by the Urban Institute, “Black and Latino applicants remained more likely than white applicants to have their mortgage applications denied, regardless of neighborhood racial makeup.”
And yet Bank of America and Pennymac are accused of once again up being to their old tricks from all indications, investigation, lawsuits, fines and press reports. But there is no Adiminstractive action.
In fact, the Security and Exchange Commission started an investigation then dropped it becase “it would be embarassing for PENNYMAC!!!”
WHAT HAPPENED TO THE “DREAM?”
Higher interest rates are offered and charged to Black people. The Fair Housing Act prohibits discrimination in the sale and rental of housing.
Homelessness and hopelessness are rising …
Where is the hope for the future?
Where is the vision?
What happened to the DREAM?
More urgent actions are needed to protect minorities from bad financial behaviors
My friends, according to the Urban Institute, “systemic racism is woven into the fabric of our housing finance system, but it manifests differently in different states and cities.”
This is extremely bad.
Meanwhile America is facing a drastic homelessness crisis. More than 50% of all homeless people in America are Black. This disproportionate high impact of housing crisis in America shows the dangerous consequences of allowing home mortgage fraud or scam to go unchecked.
Homelessness is now a nationaL public health and societal crisis. According to a 2023 estimate, over 653, 104 people are living on the streets. Over 50% of the homeless persons are black people.
Here we have some 56 years after Dr. Martin Luther King, Jr. “I HAVE A DREAM,” speech and we are living in a HOUSING, RENTAL AND MORTGAGE CRISIS NIGHTMARE in which MONEY LAUNDERERS ARE FLEECING HOMEOWNERS, especially LATINOS AND BLACK PEOPLE!
