The Mortgage Fraud
How Steve Jacobson and Thomas R. Cangemi covered-up fraud and ruined our family
Steve Jacobson (CEO)
Fairway Independent Mortgage
Thomas R. Cangemi (CEO)
NYCB, Inc and Flagstar Bank
Steve Jacobson (CEO)
Fairway Independent Mortgage
Thomas R. Cangemi (CEO)
NYCB, Inc and Flagstar Bank
Fairway covers-up mortgage fraud
Read our latest update (01/17/2025)
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We are Roxanne (mother) and Edward (son). We are victims of Fairway and William B. Murphy's fraudulent mortgage loan origination and predatory lending practices. Our Predatory Mortgage Loan with astronomical 53% DTI ("Debt-to-Income") Ratio was "doomed to fail" from the beginning. According to federal specifications and major banks, this Predatory Loan requires 28% DTI.
On November 3, 2023 Worcester District Court Judge Robert J. Pellegrini reviewed our lawsuit against Fairway and found evidence of:
"Predatory lending" happens when a lender uses deception, fraud, or manipulation to convince a borrower to take out a mortgage with abusive or unfair terms. Federal and state laws prohibit lenders from using predatory tactics.
Generally, predatory mortgage lending means any unscrupulous practice in which a lender takes advantage of a borrower. With a predatory loan, the lender imposes unfair and abusive terms on the borrower, like a higher interest rate than normal, excessive fees, or terms that strip the borrower's equity.
Basically, predatory lending is when a lender makes a loan to benefit the lender, not the borrower. Predatory lenders convince borrowers to get loans they don't need or can't afford.
William Bill Murphy
Loan Originator
Fairway Mortgage
Created our Predatory Mortgage Loan
Rosa Wyse
Our Former Real Estate Agent
Champion Real Estate
Pushed us to go with William B. Murphy who entrapped us in a Predatory Mortgage Loan. View our website for details: Rosa Wyse Truth
May 2022: We had Excellent Credit Scores and $460/month in loans. Our Real Estate agent Rosa Wyse vouched for her friend William Bill Murphy, the Loan Originator at Fairway Mortgage. Mr. Murphy accepted our loan application and pre-approved us for $390,000. But he did not provide us any loan details (estimated monthly payment, interest rate, etc). We went shopping for a house.
June 15, 2022: We agreed to purchase a house for $350,000. A few days before Closing, William Bill Murphy pushed us into a risky, high-cost Predatory Loan with 53% DTI (Debt-to-Income Ratio) $339,500.
Debt-to-Income (DTI) Ratio indicates the percentage of income that goes toward housing costs (mortgage principal and interest, mortgage insurance, hazard insurance premium, property taxes) (Source)
We were shocked by William Bill Murphy's expensive mortgage payment. We told him that we could not afford it. But Mr. Murphy threatened: "Take it or leave it!"
If we terminated the purchase, we would lose our large Security Deposit. We also read about incidents when Seller sued the Buyer for failing to proceed with the purchase. Under this great stress, we were forced to accept William Murphy's Predatory Mortgage Loan.
According to Bankrate website of competitor banks in June 2022, William Bill Murphy charged us an astronomical interest rate for our Excellent Credit Scores. After Closing, we asked him to immediately refinance our mortgage, but he refused: "Your DTI is too high."
July 22, 2022: Fairway sold our Mortgage Loan to Matrix Financial Services Corporation. Then, Matrix Financial Services Corporation sold the loan to Flagstar Bank to service our mortgage on its behalf.
This Predatory Mortgage Loan was unsustainable from Day One. After 6 months of timely payments, our Emergency Funds were depleted. The Predatory Loan payment at 53% DTI will financially ruin us!
May 1, 2023: We filed "Loss Mitigation" Application (60+ pages) asking Flagstar to make our mortgage affordable. The package was delivered to Flagstar via UPS with signature. But Flagstar employees lost the entire application!
June 14, 2023: We filed a brand-new "Loss Mitigation" Application. Flagstar Employee said that our streamline Loan Modification request was denied because it will not be "profitable for the investor" (Freddie Mac). Flagstar demanded we continue paying the expensive mortgage or they would initiate Foreclosure proceedings and sell our house.
This means that investor's profits are more important to Flagstar bank than our lives.
We wrote many letters to Steve Jacobson (President & CEO of Fairway Mortgage and Thomas R. Cangemi CEO of NYCB, Inc & Flagstar Bank asking for help, but nothing changed. Now the banks are preparing foreclosure proceedings to sell our house. We spoke with a Real Estate Attorney and he told us: "The Banks are silent because they are preparing to initiate a foreclosure lawsuit against you."
We spent 2 months studying the law books and mortgage regulations. We discovered that Federal specifications and major lenders require nearly double of our income and 28% - 31% DTI to afford this Predatory Mortgage Loan.
September 12, 2023: We filed an Emergency Lawsuit (63 pages with 28 exhibits) against William B. Murphy, Fairway Mortgage, Matrix Financial Solutions, Flagstar Bank and Real Estate Agent Rosa M. Wyse.
In our lawsuit, we did not request any financial compensation for our suffering. We only asked the Court to force the Banks to modify our Predatory Mortgage Loan per Chapter 206 of the Acts of 2007 to comply with Federal guidelines (28% - 31% DTI).
We decided to fight three powerful Banks in court as Pro Se Plaintiffs (without Attorneys).
Attorney C. Charles Townsend Managing Partner at Hinshaw & Culberston LLP Law Firm (Dallas, TX) represents William B. Murphy and Fairway Mortgage.
Attorney Kevin W. Manganaro from Hinshaw & Culberston LLP Law Firm (Boston, MA) represents William B. Murphy and Fairway Mortgage. Attorney Manganaro immediately filed "Motion to Dismiss" our case and requested the Judge force us to pay his Attorney fees.
Attorney Jacob B. Morris from Rubin & Morris, P.C. Law Firm represents Rosa Wyse (our former Real Estate Agent who personally vouched for William Bill Murphy). Attorney Morris requested that the case be immediately dismissed.
Attorney Dana C. Lumsden from Bradley Arant Boult Cummings LLP Law Firm represents Flagstar Bank and Matrix Financial Solutions. Attorney Lumsden filed "Motion to Dismiss" our case and requested the Judge force us to pay his Attorney fees.
Our lawsuit is focused on Predatory Loan "DTI" or "debt-to-income" ratio. We referenced this topic 118 times.
Bank Attorneys completely avoided this issue. Attorney Kevin W. Manganaro (Fairway and William B. Murphy) referenced "DTI" or "debt-to-income" ratio 3 times (two times by quoting our original lawsuit and once by referencing the Fremont case). Attorney Manganaro answered "denies" (430 times) and "do not require a response" (188 times).
Attorney Dana C. Lumsden (Flagstar Bank and Matrix Financial Solutions) referenced "DTI" or "debt-to-income" ratio 0 times.
October 26, 2023: Fairway sent us Notification of Assignment, Sale or Transfer of Your Mortgage Loan to a New Creditor. This means that Freddie Mac (Investor) decided to dump this Predatory Loan back to Mortgage Creator Fairway:
Notification of Assignment, Sale or Transfer of Your Mortgage Loan to a New Creditor
"The ownership of your first lien mortgage loan located at (address) with an original mortgage note date of 7/7/2022 and an original principal balance of $339,500.00 has been transferred by Freddie Mac (FHLMC) to Fairway Independent Mortgage Corporation ('Fairway'). This transfer of ownership was effective as of 10/24/2023."
Judge Robert J. Pellegrini
November 3, 2023: Judge Robert J. Pellegrini reviewed our lawsuit (8 Counts) and Fairway & Murphy's Motion to Dismiss. Judge refused to dismiss our case because he found evidence of:
November 9, 2023: Flagstar and Matrix Financial Solutions sent us Notice of Servicing Transfer to Fairway. This means that Flagstar and Matrix Financial Solutions transferred the Predatory Loan back to Mortgage Creator Fairway.
To summarize: We believe that Freddie Mac (Investor), Flagstar and Matrix Financial Solutions reviewed our lawsuit and realized this is a junk Mortgage Loan. In our opinion, they "washed their hands" and dumped the Predatory Loan back to Mortgage Creator Fairway.
November 28, 2023: Attorney Dana C. Lumsden (Flagstar Bank and Matrix Financial Solutions) re-filed his motion to try again to dismiss our case and force us to pay his legal fees. Attorney Lumsden referenced "DTI" or "debt-to-income" ratio 0 times.
Massachusetts Rules for Civil Procedures granted Attorney Kevin W. Manganaro (Fairway and William B. Murphy) 20 days to file a response to our lawsuit. But Attorney Manganaro kept delaying for 77 days. During this period, he filed an emergency "Motion to Dismiss" our case. Honorable Judge reviewed our evidence and did not dismiss our case.
December 4, 2023: 77 days after we served our lawsuit and once the Judge refused to dismiss the case, Attorney Kevin W. Manganaro filed his response. Attorney Manganaro referenced "DTI" or "debt-to-income" ratio 0 times. He also answered "denies" (430 times) and "do not require a response" (188 times).
Judge James G. Haddad
December 22, 2023: In November, Judge Robert J. Pellegrini reviewed our lawsuit and found evidence of Fraud, Deceit, Intentional Misrepresentation & Violation of Chapter 93A.
On December 22, 2023, Judge Pellegrini was mysteriously replaced by an aggressive Judge James G. Haddad who was completely biased toward the three banks' Attorneys. During last 10 minutes of our hearing in an empty courtroom, Judge Haddad became hostile and belligerent. The Judge constantly interrupted us. For some reason he had poor pronunciation and it was difficult for us to understand him. Several times, we asked the Judge to clarify his answers, but he became more agitated and refused to answer.
Judge James G. Haddad sided with the Banks Attorneys to break apart our case. But he did not touch 4 counts allowed by Judge Robert J. Pellegrini: Fraud, Deceit, Intentional Misrepresentation & Violation of Chapter 93A.
Finally, Judge James G. Haddad signaled to his staff. Suddenly, four muscular Security Guards completely surrounded us. We realized that the Judge was preparing to arrest us on false charges. We loudly said: "Don't worry. We will leave peacefully." We departed the empty courtroom and went back home.
Judge Robert J. Pellegrini
February 1, 2024: Fairway sent "Top Attorney" from Dallas, Texas C. Charles Townsend to help Attorney Kevin Manganaro.
Previously (November 3, 2023) Judge Robert J. Pellegrini reviewed our lawsuit and found there is evidence of Fraud, Deceit, Intentional Misrepresentation and Originally Structurally Unfair Mortgage was in violation of M.G.L. c.93A, c.183C.
But on February 1, 2024 Judge Robert J. Pellegrini completely changed. He was acting as Fairway's personal Attorney. The Judge discriminated against us by denying all of our motions.
We Non-Attorneys must fight back against 3 aggressive Bank Attorneys and 2 Judges who are acting as Banks' Defense Attorneys.
Fairway continues to cover-up mortgage fraud. Now they are preparing to foreclose (sell) our house and leave us homeless.
March 14, 2024:Attorneys Amy Loftsgordon & Cara O'Neill in The Foreclosure Survival Guide urge readers to ask the Judge for Preliminary Injunction and Approval of Lis Pendens (Lawsuit Pending). This procedure restricts the ability of the Bank to sell the house while the lawsuit is pending. On February 2024, Judge Robert J. Pellegrini denied our request for Preliminary Injunction and Lis Pendens without reason. He gave "green light" to Fairway to sell our house at any time.
Today, we created this beautiful large poster and attached it to our front door. We live on a fairly busy street (50 – 100 cars per day). Now many people (including potential buyers of our house) will know there is a lawsuit pending against bank Fairway.
Attorney C. Charles Townsend
Attorney Kevin W. Manganaro
April 9, 2024: Fairway Bank and William B. Murphy's Attorneys C. Charles Townsend (Dallas, Texas) and Kevin W. Manganaro demanded that we show up for deposition (aggressive interrogation) at their Boston office.
Supreme Judicial Court in Boston ordered that all Massachusetts Plaintiffs and Defendants can attend for remote deposition (such as Zoom) instead of "in-person" physical deposition. We agreed to obey the Supreme Judicial Court order for remote depositions.
Attorneys C. Charles Townsend and Kevin Manganaro ignored Supreme Judicial Court Judges and denied our request for remote deposition. The Attorneys demanded that we show up for "in-person" physical deposition at their office. If we refuse, they would ask their friendly Judge to force us to pay their legal fees.
We consulted with a Massachusetts Attorney who is an expert in depositions. He said:
"Those Attorneys do not have enough evidence against you. But they can entrap you to manufacture new evidence. You show up for deposition in their office. There is no audio-video recording. You answer their questions. But their personal stenographer creates a fraudulent transcript. When you go to Trial, the Bank Attorneys will use this fraudulent transcript to claim that you are lying. Since you do not have audio-video recording of the deposition, you cannot prove that Attorneys are lying! They will ask their friendly Judge to dismiss your lawsuit without Trial. Once the case is closed, the Bank will sell your house."
Judge Robert J. Pellegrini
At our very first court hearing (November 1, 2023) Judge Robert J. Pellegrini reviewed our complaint and found evidence of Fraud, Deceit, Intentional Misrepresentation and Originally Structurally Unfair Mortgage was in violation of M.G.L. c.93A, c.183C.
But on February 1, 2024 and April 23, 2024 Judge Pellegrini was a completely different man. He was highly aggressive, hostile towards us and constantly interrupted us. We believe that someone got to him.
April 23, 2024: Judge Robert J. Pellegrini ignored that Defendant Banks are refusing to provide us critical evidence.
Bank Attorneys C. Charles Townsend and Kevin Manganaro demanded to depose (interrogate) us in their office. This will be a waste of time. We already answered 344 of their written questions and provided our evidence.
We requested that Attorneys obey the Supreme Judicial Court Order and proceed with Remote Depositions via Zoom. But Bank Attorneys ignored the SJC Court Order and demanded In-Person Deposition in their office with their personal stenographer. We believe that Attorneys are preparing a swindle against us. Unfortunately, Judge Pellegrini ignored the SJC Court, sided with the Bank Attorneys and verbally denied our request for Remote Depositions.
We asked Judge Robert J. Pellegrini to limit the Bank Attorneys' Discovery scope to only matters in our lawsuit. We were concerned about Bank Attorneys going on a "fishing expedition" during our deposition. But once again, Judge Pellegrini completely supported the Bank Attorneys and verbally denied our request.
37 days later, Judge Pellegrini denied our motions without reason.
Worcester District Court Judges Pellegrini, Haddad and Greenhalgh discriminated against us:
Steve Jacobson
(Fairway CEO)
Attorney C. Charles Townsend
Fairway Mortgage and William B. Murphy trapped us in our Predatory Mortgage Loan. On March 7, 2024, we wrote an Open Letter to Steve Jacobson, Fairway CEO about mortgage fraud with our Predatory Loan. After this, Fairway's Attorneys asked their friendly Judge Greenhalgh to prevent us from contacting Mr. Jacobson again and she agreed.
May 30, 2024: Fairway Mortgage and William B. Murphy's Attorney C. Charles Townsend ordered us to appear for In-Person Deposition (aggressive interrogation) at his Boston Office.
Let us remind you that Fairway Attorneys still have not answered dozens of critical questions we asked them back in December. They only provided generic (non-answer) objections.
Attorney Townsend asked us hundreds of detailed questions. Many of these were very similar to 344 written questions we already answered previously.
We can see that Fairway CEO Steve Jacobson decided to spend millions of dollars in Attorney fees to cover-up mortgage fraud and prevent us from winning the lawsuit. This explains why Fairway's friendly Judges are completely on their side.
We are getting ready to present our case in front of Jury members. But Fairway Attorneys are desperate to avoid Jury Trial where persons can make an unbiased decision.
In June we will have a critical Pre-Trial Conference with a Judge. We expect Fairway and William B. Murphy's Attorneys file motion to dismiss our case. Their friendly Judges have already approved 100% of Fairway's motions. We anticipate these Judges will dismiss our case using fake reasons.
We will be forced to proceed with our appeal all the way to Massachusetts Supreme Judicial Court.
On May 30, 2024 we completed a thorough ~5 hour deposition at the Attorneys' office for William B. Murphy and Fairway Bank. The Attorneys hired Court Reporter Stephanie Mussen to prepare our deposition transcript. To prevent Ms. Musen from compiling a fraudulent transcript, we brought audio and video equipment to record our depositions.
June 18, 2024: Defendant Attorneys Kevin Manganaro and Jacob B. Morris told Judge they found "new evidence" in our depositions and will prepare a Summary Judgment motion to dismiss our case before Trial.
That same day, Stephanie Mussen prepared the deposition transcripts for us to review. We compared the transcripts with our audio and video recordings. We were shocked to discover 348 transcribing errors (typos, grammatical mistakes or missing data). Using these fraudulent transcripts, the Attorneys could dismiss our case based on total lies. Per Federal Rules of Civil Procedure 30(e), we corrected the deposition transcripts.
For 11 months now, Attorneys C. Charles Townsend, Kevin Manganaro and Jacob B. Morris have been covering-up mortgage fraud by constantly trying to dismiss our case.
The only way these Attorneys can win the lawsuit is with the help of friendly Judges, who allow them to cheat, lie and swindle.
Let us remind you that on November 3, 2023 Judge Robert J. Pellegrini refused to dismiss our lawsuit because he found evidence of Fraud, Deceit, Intentional Misrepresentation and Originally Structurally Unfair Mortgage was in violation of M.G.L. c.93A, c.183C. Unfortunately, we believe that someone got to Judge Pellegrini. After this, he was a completely different man. He now acted as the Banks' aggressive Attorney. Two times, Judge Pellegrini tried to arrest us based on lies.
Right now we are preparing for Summary Judgment hearing in September where the Defendant Attorneys will try again to dismiss our case and prevent it to go Trial. Why are they scared of letting the Jury view the evidence and decide our case?
We expect Judge Robert J. Pellegrini or another "Bank friendly" Judge will cover-up mortgage fraud and close our case.
We will never give up. We will file an appeal all the way to Massachusetts Supreme Judicial Court.
Judge James G. Haddad
Defendants are cowards who are afraid of Jury Trial! We caught them commit mortgage fraud. From Day One, we asked Judges to allow us to present our evidence to a Jury.
Judge James G. Haddad already discriminated against in December 2023. (Read details here)
September 12, 2024: Defendants asked Judge James G. Haddad to dismiss our case with prejudice (not allow us to re-file it again). They claimed that since we did not ask for any "money damages" but only requested the Bank to modify our Predatory Mortgage Loan per Chapter 206 of the Acts 2007, the Judge does not have jurisdiction in our case.
We presented over 30 exhibits proving how the Defendants committed mortgage fraud. We asked the Judge to order the case to Trial where we could present our evidence to the Jury. In parallel, we asked Judge Haddad to allow us amend our lawsuit with money damages and comply with Court Jurisdiction.
September 23, 2024: We were ready to present the evidence at Jury Trial. But Judge James G. Haddad covered-up mortgage fraud. The Judge dismissed our case because he claimed we only demanded the Bank to modify our Predatory Loan and did not request "money damages" for our suffering. Judge Haddad refused to allow us to go to Jury Trial and present the evidence.
Trial was never permitted. Mortgage fraud was covered-up. Justice was not served.
December 17, 2024: Today, we filed an Appeal Brief with evidence (870 pages) to the Massachusetts Appellate Division. We asked the Appellate Judge to reinstate our case and allow us to go to Jury Trial.
Our Real Estate Agent Rosa Wyse used high-pressure sales tactics to convince us to purchase the home at over-inflated price and sign her friend William B. Murphy's Predatory Mortgage Loan. We launched a brand-new website describing how Rosa Wyse betrayed our trust: Rosa Wyse Truth
Cowards Fairway and Flagstar Bank are afraid of Jury Trial.
December 30, 2024: Fairway Mortgage Bank secretly initiated a fraudulent foreclosure against us in Massachusetts Land Court. They are preparing to cover-up mortgage fraud and quickly sell our house before our Appeal has been finished.
Meanwhile, Judge James G. Haddad dismissed our lawsuit against predatory banks (Fairway and Flagstar) before we could go to Trial and present our critical evidence. Our Appeal was accepted by Appellate Court and is currently pending. Fairway Attorneys C. Charles Townsend & Kevin Monganaro and Flagstar Attorney Dana C. Lumsden requested 30 extra days (in addition to 20 days already provided to them) to file their Briefs. Attorneys claim they need more time because they were "busy" due to Holidays. Now we realize they are using stonewall tactics to quickly sell our house.
January 2025: Fairway covers-up mortgage fraud. While our lawsuit against Fairway and Flagstar is pending in Appellate Court, Fairway secretly hired 4 additional attorneys (Marinosci Law Group) in a different state (Rhode Island) to proceed with foreclosure of our house: Brian Kiser (Managing Partner), John T. Sheehan (Managing Partner), Daniel Lailer (VP) and Lauren Devine (Associate Attorney)
To this day we have not received any letters from Marinosci Law Group Attorneys. Fairway Attorneys C. Charles Townsend and Kevin Manganaro were silent about all this. We discovered about pending foreclosure by accident when several Foreclosure Attorneys and Real Estate Agents contacted us about the Foreclosure Filing in Land Court.
According to Law Books, very soon Attorneys from Marinosci Law Group will schedule an auction and quickly sell our house. We have nowhere else to go. We will become homeless and financially ruined. Mortgage fraud will be covered-up.
After we filed our lawsuit against three powerful banks, we experienced various disturbing events. We realize that many influential people are angry at us for exposing the Mortgage Fraud.
Let us be clear: We are not suicidal. We will never give up.
March 7, 2024
TO: Steve Jacobson, President and CEO, Fairway Mortgage
Steve Jacobson:
You are covering-up mortgage fraud and other criminal activities. We are victims of Fairway & William B. Murphy's fraudulent loan origination and predatory lending. According to federal requirements, the Predatory Mortgage Loan that Mr. Murphy and Fairway approved and sold to us (53% DTI) requires nearly double of our income and 28% DTI. From Day One, this Predatory Loan was "doomed to fail."
Now Fairway is extorting us. Your company demands that we pay this Predatory Mortgage Loan or you will foreclose on our house.
Since February 2023, Fairway and Flagstar refused to modify our Predatory Loan per Chapter 206 of the Acts 2007 to comply with federal requirements at 28% DTI.
In September 2023, we filed an emergency lawsuit against Fairway to prevent wrongful foreclosure. Freddie Mac (Investor) immediately dumped this garbage Predatory Loan back to Fairway.
In November 2023, Judge reviewed our 63-page complaint and found there is evidence of Fraud (I), Deceit (II), Intentional Misrepresentation (III) and Originally Structurally Unfair Mortgage was in violation of M.G.L. c.93A, c.183C (VI).
Let us be clear: We will not pay a single cent of this Predatory Mortgage Loan. This garbage loan will ultimately ruin us. We agree to pay a modified Mortgage Loan that complies with federal requirements at 28% DTI.
How to solve this problem:
Option 1: Fairway stops covering-up mortgage fraud and modifies this Predatory Loan per Chapter 206 of the Acts 2007 to comply with federal requirements 28% DTI. Previously, we had Excellent Credit Scores. But due to this Predatory Loan, now we have Poor Credit. Fairway and Flagstar must clean up our Credit Score they have destroyed: "You broke it. You fix it." We agree to remove all of our websites about this issue.
Option 2: Fairway covers-up mortgage fraud and sells our home. We become homeless and financially ruined. We will continue to publicize Fairway and Flagstar criminal activities on our website: TheMortagageFraud.com
Your Attorneys will tell you they can remove our website. Let us remind you: We are protected by Free Speech. All of our websites are based on factual evidence. No slanderous statements.
Once we are homeless, we will open a federal lawsuit against Fairway seeking financial and emotional damages. As Indigent Litigants, it will cost us $0 to file the lawsuit. We are prepared for a long fight.
We have nowhere else to go. Our "Excellent" Credit Scores are "Poor" due to this Predatory Mortgage Loan. After Foreclosure, no one will rent us an apartment. Due to fraud by William B. Murphy and stonewalling by Fairway Mortgage, we face the risk of losing our family home to a wrongful foreclosure sale, becoming homeless and financially ruined.
