Justice League: 2011-10-09

Saturday, October 15, 2011

Fannie, Freddie, MERS, LPS & dozen of bankers meet

THE mortgage business is moribund. New loans are down. New foreclosures are up. But why let a little sorry news get in the way of a good party? Last week, almost 3,000 people descended on the Hyatt Regency in Chicago for the 98th annual convention of the Mortgage Bankers Association.

The price of admission: about $1,000 a head. But for that grand, you got to hear the band Chicago play hits from the ’70s. And David Axelrod and Jeb Bush give speeches. And experts discuss things like demographics, the politics of housing and the future of the mortgage industry, according to a flier for the event.

“Gather the information you need to help your business and our industry drive change,” the pitch went.

The city of Chicago was no doubt grateful for the conventioneers’ dollars. Besides, Mayor Rahm Emanuel knows something about this industry: he used to be a director at the mortgage giant Freddie Mac.

Nothing wrong with a bit of schmoozing. But it might seem jarring that Freddie, which was rescued by Washington and today exists at the pleasure of taxpayers, paid $80,000 to become a “platinum” sponsor of this shindig. Fannie Mae, that other ward of the state, paid $60,000 to become a “gold” sponsor.

Keep in mind that taxpayers bailed out Fannie and Freddie to the tune of about $150 billion.

Today, Fannie and Freddie are about the only games in mortgage town. Yes, banks make loans, but more often than not they hand them off to one of the two. So it’s a mystery why Fannie and Freddie needed to help foot the bill for the gathering.

Freddie’s companions in the platinum sponsor list make for interesting reading. One was the Mortgage Electronic Registration System, or MERS, which has repeatedly foreclosed on troubled homeowners and made a hash of the nation’s real estate records. Another was Lender Processing Services of Florida, which made robo-signing a household word.

MERS and Lender Processing Services are at the center of the foreclosure crisis. Why would Freddie keep such company?

Perhaps more disturbing is that Fannie and Freddie sent an army of their own to Chicago: 87 people in all. According to a list of registrants, that’s more than hailed from the Mortgage Bankers Association (60 people), Bank of America (58), Wells Fargo (54) and JPMorgan Chase (24).

Read on.

Protester disrupting the foreclosure auction, Justice Arthur Schack: They have a right to express themselves

Reports Thursday afternoon said that nine people were arrested for disrupting the auction, led out in plastic zip-tie handcuffs by NYPD officers and Brooklyn court officers.

The judges at the Kings County Supreme Court Civil Term didn’t seem too ruffled by the protest outside their offices overlooking Court Street.

“They have a right to express themselves,” said Brooklyn Supreme Court Justice Arthur Schack when asked whether he thought the protesters were misguided. “I have no problem with the First Amendment and the Bill of Rights.”

Read on.

Exclusive: SEC warns staff their stocks data was exposed

(Reuters) - The Securities and Exchange Commission is warning staffers that their personal brokerage account information may have been compromised, after it uncovered security flaws with an ethics compliance program.

The SEC put the program in place after its internal watchdog raised concerns about possible insider trading among SEC staffers.

In an October 7 letter to SEC employees, Chief Information Officer Thomas Bayer said that the contractor hired to operate a computer program that tracks trades had violated its agreement with the SEC by providing names and account numbers to a subcontractor without permission

Read on.

Biloxi Buzz for Saturday

Obama Sending Troops To Africa

LESSONS IN GREED: Goldman-Backed For-Profit Colleges Make Billions Pushing Questionable Degrees

Warren Buffett's Son: 'We Saw Large Corporations Really Screw People'

Al Qaeda Owes $9.3 Billion For 9/11 Damage, Judge Recommends

IFR-Credit Suisse closes CMBS loan-origination operation

White House Axes Part of Health-Care Overhaul

Community Bank to pay, not charge, $5 a month to new bank customers

MANATEE -- Community Bank, which has 17 branches throughout Manatee and four other southwest Florida counties, is joining the outcry against bank debit fees by offering new customers the opposite: a monthly payment.

The $5 per month Community Bank is offering anyone who opens a Value Checking account is a direct response to the $3 to $5 monthly debit card fees larger banks are starting to charge, bank officials said.

“We needed to do something to help consumers who are under attack from behemoth national banks charging fees that just don’t make sense,” said Katie Pembles, Community Bank president. “People have a choice of where to bank, and at Community Bank, we thought paying people $5 per month rather than charging them $5 per month was a good way to set us apart

Read more: http://www.bradenton.com/2011/10/12/3563762/community-bank-to-pay-not-charge.html?storylink=addthis#.Tpc5zvxneR5.facebook#ixzz1ame4VHoP

Friday, October 14, 2011

CA AG Harris 11-0014 “Foreclosure Modification Act”-Prohibits lenders from foreclosing on CA’s citzen personal home

11055km

Litton/Ocwen Foreclosure Threats | Not missed a payment and yet foreclosure warnings keep arriving

Orlando, Fla —

Several local families claim an Orange County loan company is threatening to foreclose, even though they haven't missed a payment. Michelle Martinez can't believe she's fighting to keep her parents Deltona home out of foreclosure. Since she says the bank records show they have not missed a payment and yet foreclosure warnings keep arriving. "Countless calls to this company and never get a straight answer." Michelle blames Litton Loan for creating the problem. Litton was sold to Ocwen Loan Servicing near UCF. She claims it's done nothing to resolve her parents nightmare. "Instead of resolution the problem it just gets bigger."

Pastor Daisy Fisher claims she too battled Litton and now Ocwen after it bought her mortgage. She says both lenders demanded escrow payments for insurance she already paid and fears losing her property. " It's been like hell sleepless nights, never bad I just want to get rid of it."

Ocwen, which bought Litton Loan earlier this year has an F rating at the Better Business Bureau with nearly 890 complaints nationwide. BBB president Judy Pepper says many consumers disputed surprise fees and payment histories without success. "We're talking about people who have the paperwork and sent it to them time and time again and it never gets there."
Read on.

CFPB Outlines Mortgage Servicer Supervision

The U.S. Consumer Financial Protection Bureau said it will focus on mortgage servicing as it begins supervision of the nation’s largest banks.

“Mortgage servicing has a huge impact on consumers and is a priority for the CFPB,” Raj Date, special adviser to the Treasury Secretary for the consumer bureau, said in an e-mailed statement today.

“We are going to take a close and measured look at whether servicers are following the law,” he said.

The supervisory program will focus initially on loans that are in default and homeowners who are struggling to make payments, the bureau said in the statement.

For example, the bureau will examine loan modification procedures to ensure that servicers are “providing information about alternatives to foreclosure that is accurate, prominent and clear,” the statement said. The agency will scrutinize the foreclosure process to make sure that “the borrower is actually in default and all of the necessary records have been carefully reviewed.”

Read on.

Now I see where the BofA CEO get his financial advice: Check out this comic strip

Biloxi Buzz for Friday

Solyndra CEO Resigns

Koch-Owned Plant Allegedly Linked To High Cancer Rates

Cheating Atlanta Teachers Face Losing Licenses

House Passes Controversial Anti-Abortion Bill

Ex-NYPD Cop: We Planted Drugs On Innocent People To Reach Quotas

House Passes Bill That EPA Warns Will Kill Thousands Prematurely

Fannie Mae Believes They Are Above the Law

Fannie Mae is attempting to evict a senior citizen who was unaware his house foreclosed on because he was in the hospital recovering from a stroke. His attorney, Perry Thompson argued that Fannie Mae lacked the legal authority because of a break in the assignment chain. Fannie Mae’s foreclosure mill attorney, Schneiderman and Sherman claim the homeowner can not question the assignment transfers if they are legitimate or not. In this case, there are at least two breaks and a forged signature on one of the assignments Perry Thompson addresses. Here are two news reports on the case. The first is from WILX in Lansing, Michigan and the second is from Todd Heywood at the Michigan Messenger.

Local Foreclosure Case Could Okay Robo-Signing

Sherene Tagharobi, WILX

Fannie Mae is taking an Ingham County home owner to court, and the federal mortgage lending giant says there’s nothing he can do about it. If Fannie Mae succeeds, this could set a frightening precedent for mortgage fraud victims across the state, and across the country.

See the video here

Defense denies standing in foreclosure fraud case

Todd Heywood, Michigan Messenger

With mounting evidence of robo-signing and other alleged fraud perpetrated by banks, foreclosure law firms and others, Fannie Mae and Flagstar Bank have filed a new defense of such actions in Ingham County Circuit Court — and Ingham County Register of Deeds Curtis Hertel, Jr. is crying foul.

“What they are basically saying is they can forge an assignment and there is nothing the citizen or court can do about it. It is a brazen attempt to legalize robosigning,” says Hertel. “It’s just another example of Fannie Mae thumbing its nose at the American people, and unfortunately while they are under federal bailout we are paying for it.”

This is happening in the case of a Haslett man who suffered a stroke and fell behind on his mortgage payments. As a result, Flagstar Bank and Fannie Mae foreclosed on him and are now in the final stages of evicting him from his Haslett home, says Hertel.

Lawyers representing Flagstar and Fannie Mae put the issue this way in a court filing:

“In this case, Flagstar was and always has been the foreclosing party. MERS assigned its interest in the mortgage to the note holder. The defendant lacks standing to challenge the assignment as the defendant was not party to the assignment. The only party that may object to the language of the assignment is MERS or Flagstar Bank. Because defendant is not a party to the assignment, the defendant cannot challenge the assignment. Further, the Defendant expressly allows MERS to assign the mortgage at any time without notice per the mortgage itself.”

By this reasoning, Hertel says that he has no way to assist homeowners who are being victimized by fraudulent filings, such as robosigned documents his office has been uncovering since April.

Banks backing off on foreclosures in Palm Beach County

In an unexpected bit of fallout from the real estate crash, lenders are filing far fewer foreclosures.

Alas, that’s not because the economic picture is improving but because the housing market is flooded with repossessed homes, and banks and courts are inundated with default proceedings.

Foreclosure filings in Palm Beach County plunged 70 percent in July, August and September compared to the same three months a year ago, research firm RealtyTrac says in a report to be released today. Filings fell 57 percent in Florida and 34 percent nationwide.

In normal times, a sharp decline in foreclosure filings would be cause for celebration. But these aren’t normal times.

Nearly 2 million Floridians owe more than their homes are worth, and the state’s unemployment rate has been stuck above 10 percent for more than two years.

Foreclosure experts say several factors have lenders taking back fewer homes. One is simple supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

“The banks don’t have a motivation to push these through quickly,” said Tom Ice, a foreclosure attorney in Royal Palm Beach. “There’s a lot of expense involved in owning the houses. And they understand that flooding the market with properties is going to push down the resale value of their own properties.”

John Tuccillo, chief economist for the Florida Realtors, agrees.

“Banks are in business to make as much money as they can, or to lose as little money as they can,” he said. “It’s a bad business decision to flood the market.”

Thursday, October 13, 2011

Work In Banking? Find Out If You Will Be Laid Off... And If You Work At Bank Of America Click Here Now: Update - And Goldman Sachs

Zerohedge:

Presenting the Department of Labor's Worker Adjustment and Retraining Notification program, aka the "advance notice of mass layoffs on Wall Street" website. A great example of why 554 people should not look forward to the holidays presented below (our condolences Bank of Americans and Goldman Saches).

Date of Notice: 9/29/2011

Control Number: 2011-0098

Rapid Response Specialist : Linda Foehr

Reason Stated for Filing: Plant Layoff

Company:

Bank of America

2 & 4 World Financial Center

New York, NY 10080

County: New York | WIB Name: NEW YORK CITY| Region: New York City

Contact: John Collingwood, Senior Vice President

Phone: (202) 661-7130

Business Type: Financial

Number Affected: 33

Total Employees: -----

Layoff Date: First separation will occur on 11/30//2011

Closing Date: -----

Reason for Dislocation: Economic

ERNUM: -----

Union: No bumping rights exist. Associates are not represented by a union.

Classification: Plant Layoff

Other Bank of America locations affected:

2011-0099: 1 Bryant Park, New York, NY – 250 affected, First separation to occur on 12/14/2011

2011-0100: 222 Broadway, New York, NY – 41 affected, First separation to occur on 12/14/2011

And for Goldman Sachs:

Date of Notice: 6/29/2011

Control Number: 2010-0387

Rapid Response Specialist : Linda Foehr

Reason Stated for Filing: Plant Layoff

Company:

Goldman, Sachs & Co.

200 West Street

New York, NY 10282

County: New York | WIB Name: NEW YORK CITY| Region: New York City

Contact: Regina S. Palumbo, Managing Director, Associate General Counsel

Phone: (212) 357-2191

Business Type: Financial

Number Affected: 230

Total Employees: ------

Layoff Date: Will occur between 9/26/2011 and 3/31/2012

Closing Date: -----

Reason for Dislocation: Economic

ERNUM: -----

Union: Employees are not represented by a union and are not entitled to any bumping rights.

Classification: Plant Layoff

And some bad news for Bank of New Yorkers:

Date of Notice: 9/30/2011

Control Number: 2010-0199 Amended

Rapid Response Specialist : Linda Foehr

Reason Stated for Filing: Plant Unit Closing

Company:

The Bank of New York Mellon

101 Barclay Street Floor 6W

New York, NY 10286

County: New York | WIB Name: NEW YORK CITY| Region: New York City

Contact: Gloria Kingston, Human Resources Consultant

Phone: (212) 815-3632

Business Type: Treasury Services Operations Lockbox

Number Affected: 124

Total Employees: 124

Layoff Date: Layoffs will occur in stages beginning on 7/1/2011 and continuing through 5/31/2012.

Closing Date: 2/28/2012

Reason for Dislocation: Economic

ERNUM: -----

Union: -----

Classification: Plant Unit Closing

h/t Bloomberg

Trott & Trott’ attorney: A robosigner

MFI Miami:

Yesterday, I posted an article about how documents allegedly signed by Kenneth Kurel, an attorney at Detroit based foreclosure mill, Trott & Trott appear to have been robo-signed by other people. It now appears his colleague at Trott & Trott, Ellen Coon is poised to give Marshall Isaacs at Troy based Orlans Associates some serious competition as Michigan’s reigning robo-signing champion. MFI-Miami has found dozens of mortgage assignments from across Michigan allegedly signed by Ellen Coon, an attorney at Orlans’ cross town rival Trott & Trott.

Ellen Coon’s signature varies from document to document. All of which look nothing like her signature on any of the mortgage documents on the properties she has owned. The signatures also look nothing like the signature on a copy of a settlement agreement she signed in regards some litigation she and her husband were involved with in Leelanau County.

In all of these mortgage assignments filed with the various Register of Deeds across Michigan, Ellen Coon signs as Vice-President of MERS except for the second to last document where she signs as an “agent” for MERS.

Contrary to popular belief, there is nothing wrong with Ellen Coon signing as a Vice President of MERS as long as she is named on any corporate resolutions giving her authority to do so. There is a problem if these documents were signed by someone other then Ellen Coon. It appears that the majority of documents were not signed by Ellen Coon.

Ellen Coon Docs

Biloxi Buzz for Thursday

Major Bank's CEO Makes Surprising Statement About Occupy Wall Street

Notorious Leader Makes Startling Remarks About Occupy Wall Street

Bilingual Voting Ballots Ordered In 25 States

Walsh Says Ex-Wife Is Lying About Child Support Payments

Senators press for mass mortgage refi plan

SENSELESS: 8 Confirmed Dead In California Hair Salon Shooting

Women dump garbage from foreclosed home at Bank Of America offices

Five women - the eldest 80 years old - were arrested Tuesday afternoon for dumping garbage in front of the Bank of America Chicago offices downtown in a protest.

The women were protesting over the buildup of trash at vacant buildings in Chicago, which were foreclosed and are now held by Bank of America.

They dumped the garbage in bags in front of the Bank of America building at 135 S. LaSalle St.

Read on.

Wednesday, October 12, 2011

Schwab S&P 500 Index files BofA on secrets at Merrill

The Schwab S&P 500 Index investment fund filed a multibillion-dollar lawsuit against Bank of America (BAC: 6.645 +4.32%) and its former CEO Ken Lewis this week, claiming the bank's former leadership hid losses at Merrill Lynch from shareholders and made material misrepresentations about Merrill before acquiring the investment bank three years ago.

In their capacity as shareholders, the Schwab S&P 500 plaintiffs, and several other similar Schwab funds, claim the bank's leadership failed "to communicate with BofA shareholders" about details of Merrill's financial situation and the government bailout funds that made the merger possible.

Read on.

Open thread for Wednesday

Ren and Stimpy, Romney and Christie the GOP's dream ticket.............

Ren Höek and Stimpson "Stimpy" J. Cat

Countrywide loan underwriter: “I realized I was in dangerous territory, The mortgage industry is nothing but legalized fraud.’”

After she lost her job in the fall of 2007, Cassandra Daniels had a word with a trio of her managers. As she recalls it, she told them she was praying that, someday, they’d learn to use their positions of power “to uplift your staff instead of destroying people.”

She cleaned out her desk and taped a handwritten sign to her computer screen, quoting one of her favorite gospel songs: “GIANTS DO FALL.”

That marked the end of Daniels’ tumultuous relationship with Countrywide Financial Corp., the nation’s largest home lender during the mortgage boom.

For Daniels, her four years as a loan underwriter inside Countrywide’s mortgage-production machine were a blur of 12- and 14-hour workdays and frequent clashes with managers and salespeople regarding loans she believed were tainted by fraud.

Read on.

State may expedite Florida foreclosures

Source: Orlando Sentinel

Retirees Neil and Marilyn Strawbridge haven't made a mortgage payment so far this year, and yet Bank of America has not sent them even a foreclosure notice.

With foreclosures taking an average of 21 months to get through the court system in Florida — longer than in almost any other state — the couple could presumably continue forgoing payments and still stay for years in the three-bedroom, waterfront home with pool that they bought a quarter century ago.

Read the full story >>

Tuesday, October 11, 2011

Governor Rick; Open thread

Click for full comic - Tom the Dancing Bug

Next on Governor Rick, Science Hick: Geology or naming rocks

Missing links in the chain of ownership lead to some foreclosure postings being challenged

Ezequiel Martinez, a San Antonio real estate investor who helps homeowners avoid foreclosure, recently found himself in the same predicament as his clients.

Rather than simply fight to stop the foreclosure on his Live Oak investment home, Martinez filed suit against his lender, saying the mortgage should be voided because of phony loan documents and because he doesn’t think the bank can prove it owns the mortgage note.

If Martinez wins the case, he just might be done making mortgage payments on the house at 7502 Forest Fern.

“We’re not trying to get a free house,” he explained. “We’re trying to save the house from foreclosure fraud.”

Finding that Martinez “will probably prevail” at trial, state District Judge Karen Pozza on Aug. 26 prohibited the foreclosure until the case either is settled or goes to trial in March.

Martinez’s case is one of thousands across the country where homeowners are challenging the validity of foreclosure postings.

Mass Robo-signing Found In Fort Wayne

Allen County Recorder John McGauley knew property documents with suspect signatures were prevalent. After all, there were so many that a year ago the nation’s largest banks had to halt foreclosures to deal with the sea of paperwork that could not be trusted.

The problem was so big it spawned a new word to describe it: “robo-signing,” meaning offices filled with low-paid workers signing documents they had never read, documents they were not qualified to sign and often signing someone else’s name.

Still, McGauley was surprised to hear that robo-signing was not limited to foreclosure documents but was being found on thousands of homeownership documents having nothing to do with seized homes.

He was even more surprised when a quick check of Allen County records revealed more than 8,000 suspect documents have been filed here since 2006 – records McGauley’s office is charged with preserving as the final word in property ownership.

“It was just like reaching into a hat where your number was on more slips of paper than it wasn’t on,” McGauley said. “Everything you pulled out was another one.”

But the real surprise was when McGauley looked through the documents for his own home. The mortgage release on the house he and his wife sold in 2005 bears the signature of Linda Green – the most notorious robo-signer in the nation.

“This is the kind of thing that can really upset people because the biggest investment most people will ever make is their home,” McGauley said. “It’s frustrating me.”

It could be frustrating millions soon and frustrating an already-battered real estate market.

If invalid documents are discovered in the chain of ownership, it could delay a home sale or make it difficult for buyers to get a mortgage because title insurers will not write a policy for the property, said Justin Ailes, vice president of government affairs of the American Land Title Association, which represents the title insurance industry.

Banks and other mortgage lenders will not write a home loan without title insurance.

Stewart Lender Services Offers Foreclosure Review Services

HOUSTON, Oct 10, 2011 (BUSINESS WIRE) -- Stewart Lender Services (SLS), a wholly owned subsidiary of Stewart Title Company, now provides nationwide foreclosure file processing reviews for mortgage servicers to ensure their compliance with standard foreclosure practices. These services can also prove beneficial to servicers in preparation for the continued scrutiny and subsequent response to federal and state law enforcement agencies investigating mortgage loan servicing and foreclosure processing practices.

Stewart's foreclosure file review services are designed to permit servicers to be proactive in their efforts to determine if their foreclosure processes have been in step with state and local foreclosure requirements. Further, the company will assist servicers in providing both a review of default servicing practices, as well as a review of the foreclosure process itself.

"All eyes are on the mortgage industry right now," said Jason Nadeau, president of Stewart Lender Services. "We assist our clients in evaluating their loans to determine compliance with accepted loss mitigation timelines and foreclosure practices. Stewart Lender Services combines experience, solid technology and flexible infrastructure to customize the review process for each lender's specific requirements."

Read on.

On a side note: Stewart Lender Services is a subsidiary of Stewart Title co. who is shareholder of MERS. And Lender Processing Service’s current Vice President Tim Anderson was a Vice President of Stewart Lender Services. http://www.linkedin.com/in/timmanderson

State AGs Foreclosure Settlement Imminent, Bank Sources Say

Sources at Citigroup and Bank of America tell FOX Business that bank officials worked through the weekend and were in close talks with state attorneys general and the Department of Justice to try to wrap up a potential $20 billion settlement that could come as early as this week or next over improper mortgage practices and robosigning.

The would-be settlement involves foreclosure papers that were rubberstamped, allegedly pushing many out of their homes. JPMorgan Chase, Ally Financial and Wells Fargo are also involved in the talks, sources say.

Biloxi Buzz for Tuesday

'Joe The Plumber' Makes Decision On His Political Future: Runs For Congress

Former Supreme Court Justice Blasts Bush Over 2000 Election

California Governor Signs Two Historic Transgender Bills Into Law

County In Georgia Mulls Putting Inmates To Work As Firefighters

Protesters descend on MBA

Robo-signing scandal hits Allen County, IN recorder John McGauley’s personal residence

FORT WAYNE – Allen County Recorder John McGauley knew property documents with suspect signatures were prevalent. After all, there were so many that a year ago the nation’s largest banks had to halt foreclosures to deal with the sea of paperwork that could not be trusted.

Still, McGauley was surprised to hear that robo-signing was not limited to foreclosure documents but was being found on thousands of homeownership documents having nothing to do with seized homes.

“It was just like reaching into a hat where your number was on more slips of paper than it wasn’t on,” McGauley said. “Everything you pulled out was another one.”

“This is the kind of thing that can really upset people because the biggest investment most people will ever make is their home,” McGauley said. “It’s frustrating me.”

Read on.

MFI-Miami Finds Evidence Of Robo-signing Committed By Trott &Trott

MFI-Miami:

MFI-Miami has discovered 8 different and unique signatures for Kenneth Kurel (P58771) on file with four different Register of Deeds across Michigan. Kenneth Kurel is an attorney with the law firm of Trott & Trott. Although his signature lacks the diverse creativity of his cross town rival Marsall Isaacs at Orlans Associates, you can still see distinct differences in his various signatures

Trott & Trott’s David Trott’s holdings include the Detroit Legal News and it’s sister publications legal publications across the state. Last year, he bought Greco Title Company and in 2009 bought a controlling share of Phillip R. Seaver Title Company and merged both with his Lawyers Title Agency. Since 2009, Trott has also acquired Weir Manuel Realtors and Coldwell Banker Schweitzer in metro Detroit.

Kenneth Kurel Signatures

A mortgage dispute with a twist

In a strange twist in the ongoing saga of shoddy recordkeeping surrounding mortgage documents, Chase bank last month sued a San Antonio couple because they were mistakenly released from having to make any more house payments — nine years ago.

Chase filed suit in U.S. District Court in San Antonio last month against Ramiro and Delia Guerrero Jr. to rescind a mortgage-lien release recorded in 2002. The bank also wants the mortgage declared valid so the couple will have to resume making payments.

Stephen Cochran, the Guerreros' lawyer, acknowledged the couple never made their mortgage payments after a 2001 refinancing — blaming that on the then-lender apparently losing the note and the couple's confusion over where to send their payments.

Monday, October 10, 2011

AppraiserLoft closes its doors, workers told firm insolvent: Sources

The recorded message to a call to AppraiserLoft, the San Diego-based appraisal management company, says the offices are closed in observance of Columbus Day.

But insiders told HousingWire AppraiserLoft is closed for good.

"On Friday employees were notified the company was insolvent," according to a source inside the AMC. "They were told they would be paid later. [CEO] Aman [Makkar] told them at lunch they will get paid next week, and they won't," the source alleged.

Rumblings about AppraiserLoft's financial woes have swirled for months. A number of entities have said they are owed money from AppraiserLoft and haven't been paid, including HousingWire. Others noted slow payments for some time.

When questioned about payment timelines Makkar said the government-sponsored enterprises were taking 90 to 120 days to compensate his AMC and this impacts his payment timelines.

"The GSEs are taking longer and longer to pay, and as a result payments to appraisers are delayed," Makkar said in an interview with HousingWire.

Read on.

Open thread for Monday

Are Banks Using Money To Silence their Critics?

A very interesting story by Steve Dibert from his blog MFI Miami:

I found this blog entry by Adam Levitan at Credit Slips this morning. I found it interesting because about six months ago a major bank approached me about a job (bribe actually) because they were looking for someone with my expertise in the mortgage lending to counter all the claims of fraud by homeowners ironically discovered by me and others who actually know something about lending.

Now with revelations that Countrywide Financial under the leadership of Angelo Mozillo encouraged the frequent use of razor blades and White-out, the banks are now preparing for an onslaught of fraud claims. This bank was willing to pay me $250,000 a year for working 3 days a week for 3 years.

Then last week, it was discovered that two major banks invested hundreds of millions of dollars into Twitter which is the social media network of choice for the protesters organizing Occupy Wall Street and the organizers in other cities. It appears the banks believe they can buy people’s silence. -Steve

Read on.

Biloxi Buzz for Monday

BLOODY CAIRO: At Least 19 Killed In Egyptian Riots

American Basketball Player Player Dies After Attack In Romania

DADT Repeal Advocate Begins Process To Re-Enlist

Last week's poll had asked:

Do you think the U.S. political system is broken? JL readers answered yes. This week's poll is now up.

M. John Kennerty, Wells Fargo Witness, More Robo Signing Depositions….

Wells Fargo's Elusive Robo-Signer - Full Deposition of Superstar John Herman Kennerty

Sunday, October 09, 2011

Robosigning 2.0: Check out this job ad for mortgage foreclosure file reviewers

Hat tip to Adam Levitin

Do you have what it takes to be a Mortgage Foreclosure File Reviewer Level 2? An intrepid researcher forwarded to me a job ad for a mortgage foreclosure reviewer who will be reviewing bank foreclosures per the OCC/Fed servicing fraud consent orders. I have seldom seen a document that says more about the
~~bullshit~~ malarkey that the OCC and Fed are trying to pass off to cover for the banks than this job ad. I think it demolishes even the thin fiction that the OCC/Fed servicing consent orders are anything more than Potemkin villages. Instead, what we have here is nothing less than a federally-blessed Robosigning 2.0.

The ad is for a Mortgage Foreclosure File Reviewer Level 2 (whatever Level 2 means). It states that the:

Key responsibility will be to determine if there was financial harm to the borrower.

It further states that the MFFR-L2 will:

Conduct a complete review of the foreclosure file to ensure all default timeframes were processed accurately.

Review to determine if ownership of the note and mortgage was properly documented when foreclosure was initiated, and document any exceptions.

Determine if the foreclosure was processed in accordance with applicable state and federal laws, to include SCRA and US Bankruptcy Codes, and document any exceptions.

Validate fees and penalties charged and assessed were reasonable, customary and within the applicable state and federal laws, and document any exceptions.

Now I'm just a simple law professor, but gosh, these sure look like legal questions to me. A determination of whether there is financial harm (as in whether the harm is legally cognizable) is a question of law, not a question of fact--it would go to a judge, not a jury. The amount of the damages are a fact question, but that's a secondary inquiry after one determines that there was a legally cognizable harm. Similarly, proper documentation of the "ownership" of the note and mortgage is a legal question (and the legal terminology is not about "ownership" if the note is negotiable--itself a serious and unresolved legal issue). And how about determining of the foreclosure was processed in accordance with applicable state and federal laws? That sure seems like something one would want a lawyer reviewing. Same thing with the legality of fees and penalties.

So given this job requires a determination of a whole number of legal questions, it's a job ad for a lawyer right?

Nope. No law degree required, much less experience in legal issues relating to foreclosure (and appropriate conflicts screening). Instead, consider the "Minimum Requirements" for the position:

Mortgage Servicing/Foreclosure experience (minimum of one year with Foreclosure experience)

Read on.

Oh and check out Citigroup's ad and qualifications. Click here.