SPML/LMC anyone claimed for mis selling and unfair charges?

[enoughisenough]

Not sure whether you are referring to my post or zithers. I'm well aware which bank receives my payments. The whole barclays nearly bought lehmans but pulled out doesn't even begin to tell the story. Does anyone want to get back on song and respond to the post at the bottom of the previous page.

[gustavius rex]

GR I hate burst anyone's bubble but this is old hat. Standard and poor, Fitch and Moodys were totally complicit in giving various CDOs triple A ratings munching on pizza and playing office golf. Their highly prized analysis is part of the puzzle that caused this mess and is nothing more than a rubber stamp of a precis that comes from the spiv themselves. The real clues lie in the offering circulars and the risk assessments contained therein. That's if anyone cares enough to get serious with all this.

 

Zither. No. The money came from Lehmans. Where they got it is a moot point. No one seems to want to follow the money trail. For anybody who is serious check out Wilmington Trust. I've raised barclays before but it seems our friends in the media have been very effective in getting their cover story across.

 

 

 

EiE, of course it's ''old hat'', but we are educating people who do not know here. Both offerings and risk assessments are included in Standard and Poor's rating assessment and many investors used this assessment as basis for their investments. l'm not going to enter in to a knowledge competition here, all l'm doing is trying to clarify what l think and what l believe our subscribers to this thread want's to discuss.

 

As for money, it is irrelevant where the original funds came from, but, if you study the rating you will find that the cash funds did comprise a fraction (some 0.5%) of the total value of the offer. This funds were only provided to cover temporary shortfalls of the mortgage repayments, that is, to redeem mortgage arrears to the investors. So, l have £800,000,000, in mortgages l want to sell and l put up an ''emergency'' fund of £4,000,000, to cover shortfalls who are calculated from arrears of some 1.8% which equals £14,000,000 with an average mortgage rate of 7%, gives you an annual shortfall of £980,000 a year or £81,666.67 a month maximum? These are the figures you sell. Any investor will see this as good business, particularily as the ratio loan to value was no more than 77% average. Hence, no problem! No pay mortgage chuck out and within the year you have got rid of a bad loan and made some profit on the sale of the property. But, this was in 2006, and the **** hit the fan in 2007, why Lehman sat with all thaese mortgages, surely funded by short (very short) term loans from banks like Barclays, RBS, Bank of Scotland, Citibank, BankAmerica, Mellon and so on. Property values drop, the money market dries up and Lehmans and the lending banks are all effed up. Simples!!!!]

 

Gustavius

[enoughisenough]

HI GR excellent observations. What we gonna do about it? I suggest we go back to 62 of this thread and start by looking at origination. Then moving forward if we don't have a half arsed series of questions we won't get a half arsed legal opinion. Agreed?

[gustavius rex]

With reference to the post about brokers and their and the lenders responsibilities, l think this is a very individual issue. My broker was and is excellent and l've known him and done business with him for years. He is paid by the lender only and has never charged me a penny for his services. Both l and my wife knew fully well what we were doing and what we were dealing with. However, that Preferred/SPML were Lehman owned outfits, never entered my mind, as l never checked and in general was not interested. This was my fault and not the brokers, he knew, for sure, who the owners of Preferred/SPML were, but, it was never raised in our discussions. There were and are bad brokers around who are willing to do whatever it takes to arrange a mortgage (as they make their money from that), but, as l said that is an individual issue and should be dealt with in accordance with your consience, i.e. did you request or even beg the broker to make sure you got the mortgage you needed? l do not know about the particular brokers used by the subscribers here, but, at least my broker operated with all known lenders and would always give me several options. l've said somewhere else, that the reason for my mortgage with these people, was that they could provide the mortgage within a week and at a rate that was no more than 0.4% over the best prime rates l was offered. This does not mean that l did not know what they were, sub-prime lenders, but, l did not know that they were nothing more than originators and that my mortgage would end up with some investor in Tonga, or whatever, and that l would lose all control over my mortgage contract performance, which is the main issue here. However, l cannot blame that on my broker, as l never wanted to know and in the end needed that mortgage very badly and within a very short period of time.

Gustavius

[enoughisenough]

I have very little interest in brokers myself. I don't see it as the main issue. However crapstone for instance does. What I'm trying to do here is take all the concerns of all caggers so we can then refine the legal argument that we present for opinion. That's all. I'm not trying to raise anybody's blood pressure here. I just think it's really really important to get this right. I've seen too many false dawns. I have my own concerns about these mortgages but I've tried to put them aside here for the common good. I want to develop the argument here and then refine it. Respect.

[Dangermouse]

"I want to develop the argument here and then refine it...."

 

well said EiE

 

Dangermouse

[Crapstone]

Let's start with origination. How did these mortgages come about? Usually via brokers.

 

In my case Barclays turned me down but helpfully passed me over to some outfit in Slough whose name escapes me. They probably leave footprints all over your credit referencing in the 4-5 months it takes to get an answer by which time they have well and truly duffed up your credit rating. Result much more expensive credit than you might have got at the outset. Nice [problem].

 

Then the brokers come in and this is the first of our references to the prospectus risk assessment. Have a look at this from SPML Offering Circular August 2005.

 

 

 

Lets just chew the fat on this for starters.

 

Good point EIE.

 

Ours started with a cold telephone call from someone plugging SPML. A broker came around and took all the details...then finally revealing his fee would be £2000! At which point he was told to sling his hook.

 

A while later we were called again and this time we were given a list of brokers. After calling one he said he could do it £500 so we agreed. He called around..did all the paperwork and said he would also be claiming the original introduction fee as well even though he shouldn't. We also found out he'd signed us up to block buildings insurance and altered our employment status and supplied fabricated letters.

 

Distance selling regulations should have applied but there was no mention of any of this.

 

As there were problems with the paperwork it took several months and so several credit checks. We didn't have have previous mortgage arrears but did have several defaults but by the time the mortgage went through I had a CCJ so they raised the product margin higher.

 

All the documents relating to the broker and the original application have been convienently lost by Capstone and SPML.

[angmarie]

Dangermouse

 

I have my own thread reclaiming erf from SPML/CRAPSTONE, but your story is so similar to mine. We had never missed a mortgage payment but hubby had couple of defaults, so we were struggling to get a mortgage for the amount we needed. We were so nieve and stupid we never told our family what we were doing but I wish now we had, cause im dam sure they would have stopped us:(.

The beauty of this site is when you read other experience's and you think crikey, it was not just you who in the end was conned.

 

Best of luck

 

Ang

[Crapstone]

Dangermouse

 

I have my own thread reclaiming erf from SPML/CRAPSTONE, but your story is so similar to mine. We had never missed a mortgage payment but hubby had couple of defaults, so we were struggling to get a mortgage for the amount we needed. We were so nieve and stupid we never told our family what we were doing but I wish now we had, cause im dam sure they would have stopped us:(.

The beauty of this site is when you read other experience's and you think crikey, it was not just you who in the end was conned.

 

Best of luck

 

Ang

 

Very true. We all went out of the frying pan into the fire whilst believing they were a reputable company.

 

Even the slightest problem takes them an age to sort out and they'll do their best to dispute nothing is ever their fault even when you have them by the short and curlies.

 

We live and learn..the hard way....:-|

[brassed-off-2]

Thanks-its like watching some sort of film!.

 

Funny you should say that....there happens to be some kind of docu-drama on one of the Beeb channels .3(i think)..Wednesday (i think) about 9pm....should be interesting i suppose, Although i doubt they will be giving too much insider info away..of the sleezy dealings!!!

[zither]

Ta I`ll keep an eye out for that;)

[littledotty27]

Funny you should say that....there happens to be some kind of docu-drama on one of the Beeb channels .3(i think)..Wednesday (i think) about 9pm....should be interesting i suppose, Although i doubt they will be giving too much insider info away..of the sleezy dealings!!!Funny you should say that....there happens to be some kind of docu-drama on one of the Beeb channels .3(i think)..Wednesday (i think) about 9pm....should be interesting i suppose, Although i doubt they will be giving too much insider info away..of the sleezy dealings!!!

 

The programme you are on about is on tonight at 9pm on bbc2, it's called THE LAST DAYS OF THE LEHMAN BROTHERS

Edited September 9, 2009 by littledotty27
Spelling mistake

[sailor579]

Not sure this is going help anyone but I thought I might relate my experiences over the last few months.

 

I was unable to maintain my payments to SPML/Capstone at the begining of the year. They were at first very helpful, until such time as the arrears on the account reached a level they felt that they had to take action. This resulted in a reposession hearing in July this year. I attended the hearing and the Judge while being sympathetic had little choice but to grant the order.

I had put my house on the market prior to the hearing and informed capstone of all the details.. price/solicitor/estate agent etc along with permission for them to contact them to confirm my intentions.

Capstone continued to assure me that they would not enforce the order and apply for eviction right up until the day an eviction notice was served on me !!!

I had been in weekly contact with capstone and 2 days before the arrival of the eviciton notice had informed them I had a buyer for the house (even sent them a copy of the accepted offer).

Once the eviction notice had been served capstone simply ignored any offer/negotiation I presented to them, insisting that the only way to stop they proceeding was to pay all the arrears or give them a completion date for the sale.

During this time I had been talking to CAB and found this web site. Coming from a financial services background I started digging into the shambles that is SPML/Capstone/Eurosail/wilmington etc.

 

If at the time of the original hearing I had known then what I know now I might have been able to highlight quite what a bunch of crooks these people are.

 

Anyway, I approached capstone asking them to explain in detail the relationship between themselves SPML/Eurosail as the CAB where very confused and had advised me to appeal the eviction order, this caused them some constination, comments like "why do cab need to know this" I had also requested a explanation of why I was paying eurosail as the mortgage holder and yet SPML where showing on the land registry as the mortgagee's and I use this information as part of my appeal. In additon I requested a special access request and sent an e-mail to Mr Marek detailing these questions.

 

The response was shocking.. Mr Marek stated he was unable to respond due to security issues but would pass on my enquiry to the departments concerned, who would contact me by post at the address given (bear in mind eviction date was 3 days away by this time !)

 

I then received a phone call from a "senior team" leader in the litigation dept saying that the info I had requested was not relevant and anyway SPML and Eurosail were the same company !!!. He also re-stated their intention to evict me and would actively oppose any appeal.

 

The appeal was heard yesterday and the judge suspended the eviction order for 28 days also stating that even if he had allowed it to go ahead he would instruct SPML to contact my buyer with a view to completing the sale with them. I was instructed to pay the monthly mortgage plus a sum off the arrears (which I can now do) but it was interesting to note that the day before the hearing I received another phone call from capstone stating that my payments had dropped by £200 per month and the settlement figure for the mortgage had fallen by over £7000. This was a bit embarassing for their lawyer as his figures in court were wildly inaccurate.

 

One of the reason's for me posting this account is because this morning I received yet another call from capstone virtually accusing me of mis-leading the judge to obtain the suspension !!! shame I didn't record the call.

 

Just goes to show they are not infallible

 

A

[midge61]

Hi

 

Well done sailor 579 for holding them off.

 

This is on the BBC news site today, although about America just shows the lengths these greedy barstewards went to!

 

BBC NEWS | Business | 'Some didn't know they were getting a loan'

[enoughisenough]

Just for you Capstone!

 

Have the FSA created a rod for their own backs here. Your broker played fast and loose with just about every rule going and it was Capstone who were responsible.

 

FSA takes action against chief executive of mortgage network for poor controls over appointed representatives

 

Hi sailor 579 your story is very revealing for anyone who doubts the true nature of these predators. They are no longer in the mortgage administration business. They are in the mortgage liquidation business.

[zither]

Truely shocking when will they finally be brought to book?

[sailor579]

As a footnote to my post.

 

During a conversation with the CAB advisor after the hearing it would appear that Captone/SPML have raised their profile in the county courts to a level that is causing concern and perhaps having an influence on their success at gaining reposession's and evictions. Not even their contract solicitors seem to understand how they operate and their relationship with each other and the various Eurosail SPV's.

 

It may be advantage to others suffering from their predatory ways try and stress this factor at any hearing.

[angmarie]

Hi Sailor

 

I have my own thread on here regarding SPML/Capstone, but good for you for 2 reasons.

Standing your ground and having the strength to challenge them.

Telling others on here your own experience, that is just what this site is all about.

 

Best of luck

 

Ang

[WormHasTurned]

Hi Sailor

 

Keep strong.

 

I can understand why your monthly payments have fallen by £200 thru' Libor, but where does the £7,000 figure come from? Is this to do with the early exit fee?

[ryde]

I Am Currently Facing An Aggressive Claim From Preffered Mortgages... All Part Of The Capstone/spml/eurosail Etc Shambles.it Is Almost Impossible To Find Out Any In Depth Information About Them But I Have Found This And Would Invite Comments. In A Court Report Published By The Stoke On Trent Sentinel A Local Newspaper It Is Reported 2 Mortgage Brokers Were Jailed On 09/o4/09 For Fraud...if You Google Preferred Mortgages Brokers Jailed For Fraud....... Should Be First Page Up................the Article Says Preferred Are In Administration Which Should Also Apply To Other Tentacles Of This Shower Including Spml As They Were All Owned By Lehman So If This Is True As Reported How And In What Capacity Are They Bringing Any Claims Against Anyone This Can Only Be Done By The Administrators As Far As I Am Aware

[gustavius rex]

I Am Currently Facing An Aggressive Claim From Preffered Mortgages... All Part Of The Capstone/spml/eurosail Etc Shambles.it Is Almost Impossible To Find Out Any In Depth Information About Them But I Have Found This And Would Invite Comments. In A Court Report Published By The Stoke On Trent Sentinel A Local Newspaper It Is Reported 2 Mortgage Brokers Were Jailed On 09/o4/09 For Fraud...if You Google Preferred Mortgages Brokers Jailed For Fraud....... Should Be First Page Up................the Article Says Preferred Are In Administration Which Should Also Apply To Other Tentacles Of This Shower Including Spml As They Were All Owned By Lehman So If This Is True As Reported How And In What Capacity Are They Bringing Any Claims Against Anyone This Can Only Be Done By The Administrators As Far As I Am Aware

 

 

 

Preferred Mortgages are active accordance to Companies House. What that means is anyones guess, but, l suppose that as wholly or partlly owned subsidiaries to Lehman Brothers they may or may not be in administration per se. lf they are healthy (enough) entities with real or book value then it would be in the administrators interest to keep them thus and then sell them as working entities. Until this whole mess is finally sorted out we will know nothing. What makes me a bit uneasy is the relationship Preferred-SPML. l have had mortgage payments to Preferred end up in SPML's account. Unless they are owned by the same company, that is not ok. Finally, Preferreds accounts for 2008 have not been submitted and are late.

GR

[ryde]

the whole bunch are dodgy hiding behind various subsidiaries if you want to email preferred now its a capstone email address,it appears they are all ignoring lehman and carrying on normally.the thing is it must have been stated in court by a representative of preferred in the criminal trial for fraud that they were in administration otherwise it would not have been mentioned in the report how could i get a transcript of the case??? is it possible they would just trade through capstone and not even bother to tell companies house,everything is covered in a veil of secrecy,how can they be investigated?tell me who to write to and i will go to the ends of the earth to nail them!!!!!!!!!??????the f.s.a.

[gustavius rex]

the whole bunch are dodgy hiding behind various subsidiaries if you want to email preferred now its a capstone email address,it appears they are all ignoring lehman and carrying on normally.the thing is it must have been stated in court by a representative of preferred in the criminal trial for fraud that they were in administration otherwise it would not have been mentioned in the report how could i get a transcript of the case??? is it possible they would just trade through capstone and not even bother to tell companies house,everything is covered in a veil of secrecy,how can they be investigated?tell me who to write to and i will go to the ends of the earth to nail them!!!!!!!!!??????the f.s.a.

 

 

 

That this mess is dodgy no-one doubts. The question is how to get to the core. Capstone are mortgage administrators and are wholly owned by Lehman Brothers. Preferred and SPML are registred as ''other lenders'', which l suppose means mortgage lenders, (among other activities). Both Preferred and SPML are or were at least owned by Lehman Brothers, but, through what shell companies is anyones guess. lf you want to investigate the ownerships and how it is operated today, you will have to start through companies house, or one of the companies who will do the job for you at a fee. The other way is to contact the administrators Price Cooper Waterhouse direct and ask them to clarify the situation.

GR

[gustavius rex]

This is the latest company information for Preferred mortgages Limited as of 13 September 2009:

 

preferred Mortgages limited

Oakfield House

35 Perrymount Road

Haywards Heath

RH16 3BX

www.preferredmortgages.com

 

Subsidiary of Preferred group Limited

 

Management

 

Dennis J Pitocco - Chief Executive Officer, also acting CEO for IMC Mortgages USA

Phil Hopes - Managing and Finance Director, no other relationship

John Webster - Business dev. manager?, no other relationship

Roger taylor - Director Sales & Marketing, no other relationship

 

Board of Directors

Owen Clarke - Barclays Private Equity Ltd, also on the board of Cabot and Price Waterhouse Cooper!!! who, of course, are also the administrators for Lehman Brothers.

[zither]

Well there`s a surprise Gus, Owen Clarke on the board of PWC!. Conflict of interests methinks.

Edited September 13, 2009 by zither
my typing!