Norman and Oriane Rousseau were one more couple pushed by a huge, greedy bank to the brink of homelessness. On Sunday, desperate and with nowhere to go, Norman Rousseau shot himself.

This is the story of what happens when an average couple is up against a giant, wealthy, powerful bank. Unfortunately the result is what the result always is when people are on their own against the wealthy and powerful: the bank ends up with all of their money, takes their house to sell and throws them out onto the street. In this case the bank is Wells Fargo.

The quick version of this terrible story is that Norman and Oriane Rousseau of Newbury Park, California were scammed into a predatory mortgage. But they made their payments anyway, always paying with a cashier’s check in person at the same branch. Then one day the bank misapplied their payment and said they still owed the money. This started a long, nasty process that led to the bank evicting the Rousseaus from their home.

Here’s the shocker: right at the start the Rousseaus came up with proof that Wells Fargo bank had received the payment and had cashed the check. But Wells Fargo bank continued to claim it had missed the payment, gave the Rousseaus the runaround, started applying fees, and used it as an excuse to foreclose on the house anyway.

The Rousseaus fought back, the bank dragged it out for so long and pulled so many tricks, getting its way every step of the process, until this last Sunday Norman Rousseau finally gave up and shot himself in despair – two days before the scheduled eviction, Tuesday, May 15. (The Rousseau’s lawyer just said he was able to win a 2-week delay.)

It is a tragic story, but when you dig into the details it becomes much worse.

See for yourself. The court case filed by the Rousseaus puts on the record the facts as they state them. The complaint reads as one more story like so many others that we have been hearing about the abuses by banks and banksters and the tricks they pulled on people. Never mind the big “National Mortgage Settlement” – this story shows that the abuses are still going on, with the same tragic consequences.

The following describes the facts in the lawsuit filed in Norman Rousseau and Oriane Rousseau vs. Wells Fargo Bank in the Superior Court of California, County of Ventura.

In March 2000, Norman and Oriane Rousseau put 30 percent down to buy a house at 580 Wilshire Place, Newbury Park, CA. In the following years they were solicited to refinance their loan. In October 2007 they met with the loan officer and “stated that they were only interested in obtaining a conventional 30-year, fixed-rate loan, and explained their desire to have consistent payments over the life of the loan.”

They were “assured … that they could significantly reduce their monthly payments, by more than $600 per month, with a lower interest refinance loan.” The bank assured them that the Payment Option ARM was “the new industry standard” that had “historically low rates that were continuing to decrease” and in “the worst case scenario [they were] assured that historical data for the index indicated that changes in interest rate were slight, and if an increase should occur it would have a negligible effect on their monthly payments of no more than a few dollars.”

They should “expect to refinance within the next two years to take advantage of even more favorable interest rates and as the steadily rising housing values increased the amount their equity in the property.”

There were lots of assurances, smiles, don’t worry, we’re taking care of you, etc.

In May 2009 the bank claimed the couple had missed their April payment. They proved they had made a payment in person at the bank, using a cashier’s check and that the check had been cashed by the bank. The bank then claimed they had ordered a stop payment on the check, even though a cashier’s check payment cannot be stopped.

The teller’s receipt establishes that the cashier’s check was in the custody and control of Wachovia on April 1, 2009, and the research by the Cashiering Department should have concluded that Wachovia screwed up by not applying the cash-equivalent funds to the Rousseau’s account. After delivery and acceptance to the branch office, it was Wachovia’s responsibility to safeguard the instrument; Wachovia itself effectively stopped payment on the cashier’s check.

The runaround began. The bank began harassing them for payment, sometimes as many as six-eight calls per day, sometimes even late at night. On August 3, 2009 the bank claimed the Rousseaus hadn’t paid June or July’s payments either, demanding $3,406.50. But then on August 8 the bank assured them they were current on payments. Then the bank again claimed it had not been paid and that the bank had been trying to contact them without success, and that they now owed $3,478,25.

The Rousseaus hired a lawyer. From the lawyer the Rousseaus learned that the loan they received was not the loan they were promised, including, “the 7.2% interest rate for the … loan was actually higher than the 2006 loan and greater than the 6.8% quoted,” had enormous fees, and the bank had increased the income the Rousseau had stated, from $76,000 to $136,800.

In other words, the lender had scammed them to get those fees, which was a widespread practice at the time.

This continues, with the bank scamming, lying, obfuscating, ignoring, contradicting, even producing signatures it claimed were the Rousseau’s but were not, every step of the way. And, of course, adding late fees to the amount it claimed was due.

In September the bank stopped accepting payments at the branch, saying checks had to be mailed. About the same time the Rousseaus applied for a loan modification. They were told they were accepted for review in the loan modification program, were told the “pre-foreclosure” notices were “routine” and not to worry about them.

Wells Fargo then of course told the Rousseau family not to make their payments, that they were being considered for a loan modification and that making their payments would immediately disqualify them.

So, they saved their payments just in case Wells decided to deny them a modification. Saved every single one just in case the bank decided to act like… well, Wells Fargo Bank.

Then Wells sent them a Notice of Default, but when they called to say they wanted to reinstate their loan, Wells said what they always say… IGNORE IT… don’t worry about it, everything’s fine, it’s just an automated sort of thing… why, you’re being considered for a loan modification.

Then Wells filed a Notice of Sale on October 28, 2010. Their home would be sold on November 22, 2010. And still Wells said… IGNORE IT… it’s just another automated sort of thing… your loan modification is still pending… and please re-submit some documents.

It was November 10, 2010… just 12 days before their home was to be sold… when the Wells Fargo representative told the Rousseau’s that their loan modification had been denied. The reason: Insufficient income.

Yeah, but you know the funny thing about that is that their income hadn’t changed a nickel since they applied for the loan modification. So, what’s the deal? Did it take Wells Fargo a year to figure out the Rousseau’s income was insufficient? Is that the story we supposed to be buying into?

That same day the Rousseaus found a lawyer and discovered they had a RIGHT TO REINSTATE their loan. (Nice of Wells not to tell them that, by the way.) They contacted Wells and requested a reinstatement quote… TWO DAYS LATER Wells finally gave them the phone number for RCS, the trustee.

But, RSC said that reinstatement would take two weeks and trustee sale was going off as planned in 8 days. Wells got them their reinstatement quote too… it was dated November 15, but received via email on November 17, 2010.

And it expired in two days and had to be received in Texas by November 19, 2010.

The Rousseaus had more than enough in savings to reinstate their loan, they told Wells Fargo that… but now they couldn’t get the money from their IRA in time for the 2-day deadline and Wells refused to postpone the sale.

Next the Rousseaus go through a series of lawyers. Finally, they get a good one and in July of 2011, the court grants an injunction contingent on them making a monthly payment of $1800.

But, by December of 2011, Wells finally wore the Rousseaus down and they just couldn’t make December’s payment. They used up all their money fighting Wells Fargo, and Norm had been unemployed since the foreclosure. He was taking odd jobs as a handy man to make ends meet.

Wells Fargo immediately goes to court… gets the injunction dissolved… then proceeds with the Unlawful Detainer… the lockout is set for May 15th, 2012… at 6:00 AM.

Next the Rousseaus go through a series of lawyers. Finally, they get a good one and in July of 2011, the court grants an injunction contingent on them making a monthly payment of $1800.

But, by December of 2011, Wells finally wore the Rousseaus down and they just couldn’t make December’s payment. They used up all their money fighting Wells Fargo, and Norm had been unemployed since the foreclosure. He was taking odd jobs as a handy man to make ends meet.

Wells Fargo immediately goes to court… gets the injunction dissolved… then proceeds with the Unlawful Detainer… the lockout is set for May 15th, 2012… at 6:00 AM.

Norman and Oriane Rousseau had bought their home in Ventura, California in 2000, putting nearly 30 percent down, which was their life savings. In 2006, every time they went into the World Savings branch they’d get pitched on refinancing into one of World’s infamous Option ARM loans… that are now illegal, I believe. After a couple of years of being pitched, they finally bought into World Saving’s lies.

They had told World Saving’s loan officer, ERIC COOPER, that they were only interested in obtaining a conventional 30-year, fixed-rate loan. They wanted consistent payments over the life of the loan.

But COOPER assured them that they could significantly reduce their monthly payments… by more than $600 per month, with a lower interest refinanced loan. COOPER said that the new Pick-A-Payment loan product was better suited to their situation.

He described the Payment Option ARM as the new industry standard. He pointed out that the lower interest rate and payment flexibility were valuable advantages that were not available with other loan products. And he said that even more importantly, unlike the previous WORLD loans, the interest rate was tied to an index with historically low rates that were continuing to decrease.

On the condition that the Rousseaus apply for the new loan that very day, he would agree to waive their pre-payment penalty, stating that there would be virtually no costs to refinance beyond a $35.00 application fee.

COOPER also convinced the Rousseaus that it was in their best financial interests to consolidate approximately $25,000 in unsecured debt in the refinance transaction, citing the benefits of the lower interest rate and the convenience of having only one payment.

The Rousseaus provided COOPER with accurate and truthful information regarding their income and assets, and COOPER was such a nice guy that he offered to complete the Quick Qualifying Loan Application on their behalf.

It was right around November 1, 2007, that WACHOVIA arranged for a notary to complete the closing at the Rousseau’s home. The notary discouraged their review of the documents and directed them straight to the signature lines, but the Rousseaus noticed that a pre-payment penalty in excess of $4000.00 was included in the closing costs… the fee that COOPER had promised to waive if they applied that same day. They called COOPER and he apologized for the oversight, but tried to get them to sign anyway, because it would only add a couple of bucks to their payment.

They said… no… they’d reschedule the appointment and wait for the four grand to be taken off their bill, thank you very much.

Two weeks later, the notary returned and they signed the paperwork for their new $368,000 state of the art loan.

Now, the Rousseaus didn’t know it at the time, but COOPER was a lying sack of garbage that had misrepresented just about everything having to do with their new loan.

The 7.2% interest rate of the new loan was actually higher than their old loan and higher than the 6.8% quoted by COOPER. The “significant reduction in monthly payments” was an illusion accomplished by comparing the fully amortized payment of the 2006 loan with the negative amortizing minimum payment due under the new loan.

The new loan, at annual change dates, added deferred interest to principal and the loan amortized, with payment increases capped at 7.5% for ten years. Then, the new loan recast when negative amortization reached 125%.

The Rousseaus were never told about the new loan’s fully amortizing payment of $2,497.94 per month, in fact their payment amount was intentionally misrepresented by COOPER. And the new monthly payment could never decrease because it represented the minimum payment possible… the negatively amortizing option that meant payments would increase at each change date.

But that wasn’t enough for our boy COOPER. The Rousseaus were charged $2,640.00 in origination fees for the “low cost” refinance, which made a tidy profit for World/Wachovia/Wells/Whatever bank.

And best of all, an undisclosed Yield Spread Premium (“YSP”) of $4,195 was charged for placing them in a loan with an interest rate .50% higher than they qualified for, and that YSP increased their monthly payments by $123.32, or $44,395.20 over the life of the loan.

The truth is that the Rousseaus were a heck of a long way from being considered well qualified for their new loan. Their fully amortized payment represented a total debt-to-income ratio of 27.91%, but that percentage was based on income figures that were grossly overstated by guess who? That’s right… COOPER.

The Rousseaus told COOPER their total gross annual income was, $76,000, but somehow it got listed as $136,800 on the application. You know… the application that good old COOPER was nice enough to fill out for the Rousseaus.

"So, it was Sunday… yesterday, May 14… around 10:00 AM… and Norm couldn’t get the motorhome running. He must have realized that he couldn’t handle the shame of seeing his wife and stepson evicted with nowhere to go… living on the street. I don’t know how anyone could face that reality. I don’t think I could.

How could it be that just 12 years before they had put their life savings down on their first and likely last home? They had done everything right, but nothing was right anymore, and I’m sure to Norm Rousseau, nothing would ever be right again.

Their church had offered to help them, maybe find them somewhere to stay temporarily, and that would be fine for his wife and her son… but not for him. I’m sure he wept as he looked at the engine parts laying there, realizing that it was over.

Norm Rousseau called me a couple of months ago. He wasn’t asking me to help him, in fact, he never even told me about what he was going through with Wells Fargo. No, Norm was concerned about someone else who was losing a home. A really good person who’s done so much for so many others, was how he described her. It wasn’t right what the banks were doing he said. He was hoping that I could do something to help someone he knew, because she was someone who had helped others… but he didn’t say a word about himself.

Norman Rousseau gave up over that engine that sits in pieces in his driveway today, the sun shining down making the metal parts hot to the touch. Maybe it was the frustration of having nowhere to turn for justice, maybe it was the shame he felt that somehow he had let his family down… even though that was not the case at all.

Sometime mid-morning on Sunday Norm Rousseau ended his own life. He went into his bedroom, covered his head with a blanket so as to contain the mess… and shot himself. At one point he could have reinstated his loan, that’s what he had planned to do, but Wells Fargo had made that impossible… they stripped him of everything he had." Martin Mandelman  at Mandelmann Matters 

Read the court case the Rousseaus filed. It’s all there, and is even worse than this summary.

Source