Effective January 10, 2011, a collective lawsuit was brought in the U.S. District Court for the Eastern District of Washington against credit intermediary EMC Mortgage Corp. and its ultimate parent Bear Stearns. Proceedings are brought on defense of all Washington State mortgage debtors administered by EMC who have made payment under a transitional credit amendment schedule or a redemption arrangement while seeking to achieve a lasting credit change (allegedly with a number of "hundreds, if not thousands").
EMC is alleged to have been acting in good faith and to have been involved in incorrect bookkeeping, poor bookkeeping, and misrepresentation during transactions concerning the credit amendment with mortgage debtors in Washington State. In particular, the alleged spokesman claims that EMC, despite EMC's continued pledges to change its and other mortgage banks' mortgages and their adherence to the change conditions, is unreasonably deferring their and other mortgage banks' lending while at the same times overcharging, blowing up arrears and threatening enforcement.
Specifically, the complaint seeks allegations of violation of the Washington Consumer Protection Act and EMC's arrangement with the Federal Trade Commission, as well as allegations of noncompliance, violation of good faith belief, unfair trading practices, promise of legal effect, and unfair gain.
The EMC Mortgage Corporation is outsourcing fiscal accounting to FIS.
The Fidelity National Information Systems (NYSE:FIS) today announces that EMC Mortgage Corporation (EMC), a fully owned affiliate of The Bear Stearns Companies (NYSE:BSC), has entered into a multi-year agreement to transfer its revenue collection and reporting operations to Fidelity National Taxi Systems (FNTS), a related FIS company. The FIS offers a broad spectrum of property taxation related products and related information to mortgage providers and contractors throughout the country through insourced and outsourced software packages.
Utilizing these sevices in an off-site enviroment allows EMC to deliver better client service, higher efficiencies, higher capacity, and lower risks. "The Fidelity National Tax Service agreement is an ease of service transfer and provides a win-win for EMC and FIS," said Bill Glasgow, Jr., EMC's senior VP of Loan Administration.
"FNTS' extensive services will help EMC clients to be sure that their taxes will be correctly and on time." "The Fidelity National Taxi Services' customer relationship with various EMC providers, our new technology development and recent integrations will allow EMC to further optimize its operations," said Eric Swenson, FIS Mortgage Information Services department President.