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Patrick Pulatie is the CEO of LFI Analytics. He can be reached at 925-522-0371, or 925-238-1221 for further information. www.LFI-Analytics.com, patrick@lfi-analytics.com

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Eastern Savings Bank In The Crosshairs

Over the past two months, I have been hearing of a potential action on the East Coast against Eastern Savings Bank. I have just been cleared to release what I know about the upcoming action.

Eastern Savings Bank is the largest privately owned bank in Maryland. They lent primarily along the East Coast, but they did loans at one time or another in most states, including California.
Eastern engaged in absolutely reprehensible lending practices. These practices resulted in the Office of Thrift Supervision filing a “Cease and Desist Order” against Eastern for many different violations including certain underwriting practices which were characteristic of Predatory Lending. I recently heard second-hand that Eastern admitted wrong doing, and as a result, they were fined the magnificent sum of $25,000. Thank you OTS for such great punishments.

(I have done examinations on two different Eastern loans, one of which was originated in the time frame that the OTS inspection would have reviewed. I can attest to the underwriting issues with these loans.)

The common characteristics of the homeowners that Eastern apparently preferred to lend consisted of the following:

• Credit impaired with scores in the 500’s.

• Large amounts of equity.

• Mortgage Late Payments or Deliquent.

• Borrowers who had no true ability to repay a loan, so Stated Income was the norm.

This type of borrower would usually have few actual lenders outside of “Hard Money” or “Sub-Prime” lenders to look to for financing. In most cases, a “Bad Sub-Prime Loan” would have been better that an Eastern Savings Bank loan.

Common characteristics of an Eastern loan consisted of:

• Loan to Value of 55% or less. This allowed for Eastern to foreclose and make money.

• Interest Rate for the first year usually about 11.5%, then it drops to 11.4% the second year, 11.2% the third year, etc.

• Bottom interest rate after ten years would be 9.5%.

• Broker fees, lender fees and other fees greater than 5%, and usually just below the HOEPA tolerance of 8% and APR’s just below the tolerance level for HOEPA. (The loans were deliberately structured that way to get the maximum profit and fees without triggering HOEPA.)

• After ten years, the loan had a “demand feature” whereby with 30 days notice, the lender could call the loan, and if the borrower could not find financing, the lender could foreclose.

The end result for the flagyl prescription buy homeowner who had these loans was that foreclosure was almost inevitable, and usually within a year or two. They had no ability to repay a loan with such a high interest rate over any extended period of time. If they had taken cash out of the home for loan repayment, once this cash was exhausted, they could no longer make the payment.

Often, the homeowner was told that with this loan, they could refinance to a better loan once their credit score improved in a year or two. What the homeowner was not told was that this scenario was unlikely in that it would usually take much longer to improve the credit score, and long before this happened, the homeowner would have run into financial trouble again, so they could not refinance. Default became inevitable.

The Law Firm taking action against Eastern Savings Bank is considering a major Class Action Lawsuit. It is expected to involve hundreds of plaintiffs, and since it would be in Federal Court, may allow for Plaintiffs from all 50 states. Those who currently have Eastern loans, and those who had the loans and refinanced, and those who were foreclosed upon would all likely qualify for this action.

Homeowners who had loans from Eastern Savings Bank should take heed of this upcoming action and find out if they qualify to be a member of the Class. For contact information for the Law Firm and for a person who is the head of an Eastern Homeowner’s Action Group, you can contact me and I can provide you the contact information.

Disclosure: I am not an employee of the Law Firm or Homeowner’s Group. I do not in any official capacity representative of either, nor am I a spokesperson. I am simply passing along the information as a Public Service. At some point, I may be asked to participate in some manner, but there is nothing contemplated yet.

(Patrick Pulatie is the CEO of Loan Fraud Investigations, a Predatory Lending Examination firm located in California. LFI has worked with attorneys in many different states. Articles by Patrick can be found at http://blog.ml-implode.com/ , www.iamfacingforeclosure.com , and weekly for the Asian Journal in California and other newspapers in California on an intermittent basis.

He can be reached at Patrick@loanfraudinvestigations.com or directly at 925-238-1221. Patrick and LFI are not attorneys, nor are they a law firm, and they do not engage in giving legal advice. Nothing in this article should be construed as giving legal advice.)

There Are 169 Responses So Far. »

  1. BOB! REMEMBER A COPY DOES NOT PROOF JURISDICTION, TWO THINGS WE HAVE WORKING IN OUR FAVOR IS SUBJECT MATTER JURISDICTION AND STANDING.THIS BANK DO NOT SECURITIZE THEY COLLATERALIZE THEIR LOANS WITH THE FEDERAL RESERVE BANK THERE IS A UCC FINANCING STATEMENT LIEN ON ALL EASTERN SAVING BANK LOANS AND ALL ASSETS SINCE NOV 24TH, 2008,THIS BANK IS REALLY IN A SERVCING POSITION MAKING THEM NOT THE HOLDERS IN DUE COURSE. NO HOLDER CAN NOT FORECLOSE GO TO THE STATE SITE OF MARYLAND TO UCC LIENS AND FULL IT UP!!!

  2. REMEMBER THESE ATTORNEYS REPRESENTING EASTERN SAVING BANK WHEN IN COURT,MUST HAVE A FOUNDATIONAL WITNESS PRESENT WITH PERSONAL KNOWLEDGE OF THE ENTIRE CASE BECAUSE A CORPORATION IS A FICTIONAL PERSON.

  3. Thank you for the info….sorry two weeks have gone by. I intend to file a motion. Will be doing it myself next week. Is there anyone in your group that I can talk to directly. Thank you for the info so far.
    Bob

  4. HELP!!! I Have written before and perhaps it has been tossed aside for bigger irons in the fire. I am in Chicago and in desperate need of an organization or pro bono attorney to assist me in fending off Eastern! They have auctioned off my home as of June 12, 2012, are going back in on a motion to Approve the Sale & Distribution Confirming Sale and Order for Possession. According to and attorney friend of mine, they have to serve me with a separate motion for the order of possession as and eviction. Just like they would do anyone else. Is this correct? Since the inception of my loan nothing has been right with these people and just like so many that I have read, I fell behind after two payments and they would not work with me on a loan mod or placing it on the back end of the mortgage. They have wanted this place since I purchased it and it appears they are going to try and get it, but I am fighting with all that I have to not surrender to these awful people. I have had a son pass as a result of stage four testicular cancer, after battling for four years and they could care less. I myself was in a horrific accident that sent me to the hospital for fourteen days and again they could care less, my youngest was only six months old. Then my mother suffered a stroke, again they could care less. Now, she is in a nursing home and I am guardian over her and my father who are both 82 years old, rely totally on me to assist them with all their affairs, I have my ten year old who was just diagnosed with JRA and again Eastern can care less. These are life issues that are documented. Serious life issues that have altered mine, caused serious financial stress, hardship and bankruptcy, but Eastern is still standing there with their hands out. Pay up, or get out! We do not have any other place to go and they are going to take my home, were I take care of my family and have taken care of so many others I need help. They have fraudulently gone into court, lied about me trying to contact them when I could not appear because I was in the emergency room with my father after he had fallen and broken his wrist and I could not make the court date. I contacted the via email, phone and through the clerks office. They still went in and foreclosed on me, because I had requested a forensic audit of the mortgage! They do not want others looking into their paperwork on these loans and me paying 11.99% was like paying a bookie!! And when Obama declared that all loans could be modified to lower the interest rate, they would not comply, even when I was in bankruptcy! Then when they auctioned the building they did so at considerably less then what they were asking for it leaving a surplus and now asking the court for a in personam deficiency judgment to be entered against me for the difference?? Know why would they bid on their own property, bid considerably less and then ask for a judgement against me!! They were the only ones at the sale, duh, no fooling and the amount in their judgement is not the judgement in their recorded documents?? But yet they are going in to ask for another $118K against me and take my home!! Something has never been right, because they received over 79K in the bankruptcy but not one of those payments has ever been mentioned!! Nor, is it in their accounting or any of the documents. That is why I requested the forensic audit, but then my dad fell and I had to be in the hospital and not one person could or would take my request that I was in the hospital with my father. I even have a letter signed by his doctor and the email that I sent to the law firm, plus the printout of the phone calls that I made to the law firm. The case had not been called, when I left the messages, but they indicated to me that it was too late the judgement was against me and that was that. So, what if anything can I do? The next court date is August 3rd at 9:30 here in Chicago and I will not allow these vultures to take a home that my son and I worked so hard on, gave weekends of himself instead of being a typical twenty-two year old and hanging out with his friends, he was here with his mom, pulling up tile and sanding hardwood floors, to get this building in shape and now that we have put a 45K roof on it, a 17K brand new cedar porch last year, redone all the apartments, have it rented, they want to take it from me??? Ever cent that I collect in rent goes back into this building, ever cent. I do not even own a car, I do not have credit cards, nothing. I have not even had my unit renovated because the owners unit is always last and it has been 11 years that I have owned this building and it has been a fight since day one! Please there has to be someone that can assist me with keeping my property, please. Here is all my information: Angelita Kawaguchi, contact me at: angelitakawaguchi@sbcglobal.net so I can give you my address and phone numbers. Thank you so much in advance for your assistance in this matter.

  5. I and my family are also victems of ESB. After taking out a 401k loan to get current with the laon payment and making payments for 12 months, the modified loan they presented was higher than the original loan payment. Needless to say, they forclosed on the house and then bought it back at a fraction of what the house was valued at. If there is a class action law suit going on, I would also like the information.

  6. I have been looking at alll these people wo EBS took for a ride, yes, you can add us to that growong list!! There is no way we can afford to keep this house of 14 years! I also took from my 401k. needless to say- it didnt help. We also had a modified the loan several times but NEVER lowered the 13% intrest! I want in on this class action suit! I will try everything in my power to stop forclosure- but the future is not looking well. My husband lost his job in 2010 found new employment- 4 cut in pay 2011= now 2012 founf a great paying job. It took 2 yrs to get it to this point its gonna take time. i want then to pay for praying on people with their last chance!! Im NOT a free loader or on welfair so please dont judge us!

  7. All these views on this site and I cant find anyone to help? I need to find info on the lawsuit! LZieglmeier@gmail.com. e all need to band together to take EBS down!!!

  8. I have been fighting with Eastern for over 3 years. State court threw it out because they told ESB they were being unreasonable and now they refiled in Federal court which moves faster. We just wanted to be able to get a better rate than what was being offered. I would like information on the lawsuit.

  9. Please send any information about the law firm involved in a class action suit against Eastern Savings Bank.

  10. Kay Hart ~ which state do you reside. That’s interesting that a state court through out an esb case. They seem to win every time. Won’t the federal court acknowledge the state courts standing?? I don’t think the federal courts like to supersede state court findings.

  11. Here is a link to case where it appears ESB lost in court

    http://law.justia.com/cases/new-york/other-courts/2013/2013-ny-slip-op-50019-u.html

  12. That case ESB V Bowen the case was dismiss but eastern is refiling the case again.

  13. Please send me the information, we took a mortgage with Eastern Savings as we had a home worth over $300,000 and only owed $79,000 we thought we would use the equity to do some updates and help out as I was ill and my husband owns his own company and busniess was slowing down. Let your home work for you they said we had already paid 19 years of a 30 year loan and they told us this will be like a bandaide after a year you can refi and credit will be perfect again this is the best option. Well after the first year our payments doubled and now we are in foreclosure we tried to get them to modify the loan but they are not interested as they will make huge profit on the house. We filed Ch13 to hold on to our home we are no making two payments a month to them and still they try to do what ever they can to take the house, well its my home an I’m not giving up I plan on fighting for it as long as I can hold on. We believed the lies and they came to our house had us sign papers not lawyers no title company just my kitchen table should have known then they were up to no good but we believed them and the broker. and the fees they charged by the time it was all said and done we took $20,000 in equity and now owe $220,000 on a house we had only owed $79,000 its all lawyer fees late fees fee fees its crazy.

  14. My group held a meeting 3 weeks ago and there are people in foreclosure with this bank called Eastern Saving Bank fsb wanting others to watch this video on YOUTUBE how someone won there home back from Eastern Saving Bank with prejudice we have learn this is not true the name was changed to protect the homeowner still trying to save their home.STOP BELIEVING EVERYTHING YOU READ,LISTEN TOO, ARE HEAR, PEOPLE JUST WANT YOUR MONEY AND DON’T GIVE A DAMN ABOUT YOUR SITUATION.

  15. A BIG RALLY ILL BE ORGANIZING IN BROOKLYN N.Y.DATE WILL BE POSTED AGAINST EASTERN SAVINGS BANK THESE PRIVATE INVESTORS,HARD MONEY LENDERS, EQUITY STRIPPERS OF PROPERTY THAT WORK UNDER THE NAME OF A BANK ARE OUT RIGHT STEALING PEOPLES HOMES STAYING UNDER THE RADAR AND NEED TO BE FORCE OUT INTO THE OPEN. THIS RALLY IS FOR THE BENEFIT OF ALL HOME OWNERS WITH THIS BANK AND OTHERS THERE HAND MUST BE FORCE THEY PROMISE TO MODIFIED LOANS AND DON’T THEIR FORBEARANCE AGREEMENTS ARE WORSE THE THE ALLEGED ORIGINAL LOAN BECAUSE THERE MAIN OBJECTIVE IS TO TAKE YOUR HOME!! EVERYONE GO TO YOUTUBE WATCH “MARY LEE WARD” PLEASE JOIN US THIS IS YOUR CHANCE ALL MAJOR NEWS CHANNELS WILL BE THERE. STOP TAKING AND BE ABOUT IT!!!!

  16. ERRORS WERE MADE IN SPELLING OF FIRST POSTING OF BROOKLYN RALLY AGAINST EASTERN SAVING BANK THAT’S WHAT HAPPENS WHEN YOUR PASSION IS RUNNING HIGH ON THE WRONG THAT HAS BEEN DONE TO ALL OF USE, PLEASE WATCH YOUTUBE VIDEO “MARY LEE WARD” IT WAS A BIG SUCCESS MS WARD’S HOME WAS SAVED THIS IS THE SAME ORGANIZATION FORMING RALLY CALLED “COMMON LAW” DATED WILL BE POSTED THIS IS FOR ALL OF US PLEASE SUPPORT!

  17. Lost our home. Our payments were outrageous. Finally could not pay. I know we agreed. . They set us up to lose our home. We later found out we were paying double for the amount we borrowed. I will never have any other dealing with them, How could you work for a company with such practice like they have. I could not sleep at night. God Bless all of them

  18. please send me an email with the info to join in the class action law suit. i was steered to esb by the company collecting on my medical bills. under heavy threat i was drawn in thinking they had my best interest at heart. surprise, surprise. md hope hotline and other agencies set up by the state were useless. absolutely useless. now that foreclosure has happened, they now want me to pay them 30k in fees and the like. they charged for things seem like they made up

  19. Good Morning All,

    I have been reading all the post on ESB and I will say that I believe that you will finally see this bank have severe ramifications to face this month. I am very dear friends with a celebrity actor who has taken this bank face on for 9 years and it recently has made the press because of the predatory lending scheme that ESB engages in. This week it will be fully blown open in the media and after reading these heartfelt posts here I want you to know that this bank will have the price to pay. I am asking all of you that are in the NY state area or NJ or close to it to please provide me with your email contacts or phone numbers. The celebrity actor is Armand Assante and with his voice and those of you that are willing to be heard please provide me your email and I will contact you with his attorney as the class action lawsuit will be filed. There have been retired federal investigators that Mr. Assante hired that collaborated SIGNIFICANT EVIDENCE and the is going all the way to CONGRESS! You may google Armand Assante Bankruptcy and see for yourself.

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