Can't keep up with Rick Perry's gaffes:
Saturday, December 10, 2011
Class of homebuyers claim BofA found a new dirty trick to illegally extract money from homeowners
Lead plaintiffs Rick and Susan Dolfo say that’s what Bank of America did to them.
“This is yet another tale of Bank of America cheating its customers,” the complaint states. “In 2005, plaintiffs obtained a residential mortgage loan. Bank of America subsequently bought the servicing rights to the loan. From the time the loan was issued, plaintiffs complied with their obligations under the loan agreement. They made their monthly payments, maintained the required homeowner’s insurance coverage and timely paid their property taxes. Nonetheless, in December 2009, plaintiffs noticed on their monthly mortgage statement that Bank of America paid their property taxes and homeowner’s insurance without the plaintiffs’ knowledge or consent, and even though plaintiffs also paid them. To fund the impound account, and without informing the plaintiffs, Bank of America took money from plaintiffs’ monthly mortgage payment, not leaving enough to cover plaintiffs’ monthly mortgage payment, throwing plaintiffs into default. Once in default, Bank of America, as the loan servicer, was able to charge additional fees and penalties. Bank of America also falsely reported to credit agencies that plaintiffs were in default on their mortgage.”
The Dolfos say Bank of America had no authority to set up an impound account because they were already paying their insurance and taxes.
“Plaintiffs were not notified that Bank of America intended to create an impound account or that it created one. Plaintiffs never agreed to it. Bank of America had no authority, contractual or otherwise, to open or fund the impound account. There also was no need for an impound account as plaintiffs were already paying their insurance and taxes.
“Prior to filing this suit, plaintiffs spent months trying to work with Bank of America to solve the problems created by Bank of America: to close the impound account, stop the double payment of homeowner’s insurance and property taxes, stop the improper deduction from the monthly mortgage payments, reverse the improper default and have Bank of America correct the improper credit reporting. But, just like millions of other Americans who have tried to work with Bank of America, plaintiffs made no progress, and were constantly put off by Bank of America, mislead and ignored,” the complaint states.
Read more here
Nebraska Fraudclosure Cover-Up! ISO Citizen who filed the Sealed Notary Complaint Against Joann Rein Resulting in Loss of Her Commission
Joann Rein, or perhaps a surrogate signor, executed an estimated tens of thousands of questionable documents filed in courts and land records across America. She works at Aurora Loan servicing in Scotts Bluff, Nebraska.
The Nebraska Secretary of State revoked Joann Rein’s notary commission in the summer of 2011.
The complaint and the entire file has been stipulated as confidential. Supposedly the only way this decision can be reversed is by order of the NE Attorney General. This is pure cover up!
We are searching for the citizen who filed the complaint to contact us at ForeclosureHamlet [at] gmail [dot] com .
All you Nebraska people, get on this one. Get the word out to the media and to activists and to citizens who want our elected officials to stop covering up for financial industry fraud. Transparency? Accountability? Call your Secretary of State and your Attorney General!
Here’s one case where a NJ judge spells it out in Aurora v Toledo.
On January 30, 2009, plaintiff purportedly obtained an assignment of the $320,000 note from Lehman and the mortgage securing that note.1 This assignment was signed by a person named Joann Rein, with the title of Vice-President of Mortgage Electronic Systems, Inc. (MERS). MERS was described in the assignment document as a “nominee for Lehman Brothers Bank.”
This document is discussed in greater detail later in the opinion.
There is an additional potential problem with this purported assignment. The assignment was not made by Lehman, as payee of the promissory notes secured by the mortgage, but rather by MERS, “as nominee for Lehman.” Although the notes and mortgages appointed MERS as Lehman’s nominee, Lehman filed a petition for bankruptcy protection in September 2008, see Andrew Ross Sorkin, Lehman Files for Bankruptcy; Merrill is Sold, N.Y. Times (Sept. 14, 2008), which was before the purported assignment of defendant’s mortgage and note on January 30, 2009.
Therefore, we question whether Lehman’s designation of MERS as its nominee remained in effect after Lehman filed its bankruptcy petition, absent ratification of that designation by the bankruptcy trustee. On remand, the trial court should address the question whether MERS was still Lehman’s nominee as of the date of its purported assignment of defendant’s note and mortgage to plaintiff.
Full deposition of Joann Rein Aurora robo-signer below:
Joann Rein Depo - Aurora Robosigner
Friday, December 09, 2011
L.A. Housing Authority hired and fired; Walked away with $1.2M
Rudolf Montiel, an executive who was hired and then fired by the L.A. Housing Authority, has walked away with a cool $1.2 million. Or, as his critics like to put it, money that could be used to house people.
Grand Jury transcripts in NV Attorney General foreclosure fraud case released
h/t to 4closurefraud:
The grand jury transcripts from the massive robo-signing scam are in. they shed light on the foreclosure fraud scandal that has thrown into question tens of thousands of Las Vegas foreclosures.
The transcripts include testimonies of investigators homeowners and notaries.
Three notaries have all been charged with notarization of the signature of a person not in their presence. a fourth was found dead the day of her sentencing hearing.
Title officers Gary Trafford and Geraldine Sheppard of Lender Processing Services are accused of running the scam by advising employees to forge signatures on default notices between 2005 and 2008.
Full transcripts below…
Transcript Day 1
Transcript Day 2
And here is more:
The transcripts include last month's testimonies from investigators, homeowners, temp workers and four notaries.
The workers, who were employed at Lender Processing Services (LPS) under Gary Trafford and Geraldine Sheppard, admitted to forging signatures on tens of thousands of notices of default.
Most blamed fear of unemployment for their decision to forge signatures and break the law. One notary said she needed to keep her job while getting through graduate school, another said he had a family to support.
Trafford and Sheppard are accused of running the scam by advising their employees to forge signatures on notices of default between 2005 and 2008. Those documents got the ball rolling on many Las Vegas foreclosures.
Notary Tracy Lawrence struck a plea deal with the state's Attorney General's Office for one count of notary fraud. She admitted to notarizing about 25,000 false documents. Lawrence was found dead in her home the day of her sentencing hearing a few weeks ago. Lawrence said during the Grand Jury hearing that LPS handled notices of default for trustees representing many major lenders, including Washington Mutual, Bank of America, Fannie Mae and Freddie Mac.
Todd Grosz, a criminal investigator for the Nevada Attorney General’s office, said that out of tens of thousands of documents from LPS that his investigation of the fraud examined, an overwhelming majority seemed suspicious.
“It’s hard to find [a document] that you wouldn’t be suspicious of,” Grosz said, adding that legitimate documents from the company seemed to be the exception instead of the rule.
It wasn’t just the signatures that were fraudulent. According to Grosz, some of the forged documents contained information that had not been verified by those signing them. This sometimes led to the wrongful foreclosure of houses because of the innacuracies.
“We’ve had individuals who said ‘I was never late in my payments, but yet my house has been foreclosed on,’” Grosz said.
The grand jury transcripts from the massive robo-signing scam are in. they shed light on the foreclosure fraud scandal that has thrown into question tens of thousands of Las Vegas foreclosures.
The transcripts include testimonies of investigators homeowners and notaries.
Three notaries have all been charged with notarization of the signature of a person not in their presence. a fourth was found dead the day of her sentencing hearing.
Title officers Gary Trafford and Geraldine Sheppard of Lender Processing Services are accused of running the scam by advising employees to forge signatures on default notices between 2005 and 2008.
Full transcripts below…
Transcript Day 1
Transcript Day 2
And here is more:
The transcripts include last month's testimonies from investigators, homeowners, temp workers and four notaries.
The workers, who were employed at Lender Processing Services (LPS) under Gary Trafford and Geraldine Sheppard, admitted to forging signatures on tens of thousands of notices of default.
Most blamed fear of unemployment for their decision to forge signatures and break the law. One notary said she needed to keep her job while getting through graduate school, another said he had a family to support.
Trafford and Sheppard are accused of running the scam by advising their employees to forge signatures on notices of default between 2005 and 2008. Those documents got the ball rolling on many Las Vegas foreclosures.
Notary Tracy Lawrence struck a plea deal with the state's Attorney General's Office for one count of notary fraud. She admitted to notarizing about 25,000 false documents. Lawrence was found dead in her home the day of her sentencing hearing a few weeks ago. Lawrence said during the Grand Jury hearing that LPS handled notices of default for trustees representing many major lenders, including Washington Mutual, Bank of America, Fannie Mae and Freddie Mac.
Todd Grosz, a criminal investigator for the Nevada Attorney General’s office, said that out of tens of thousands of documents from LPS that his investigation of the fraud examined, an overwhelming majority seemed suspicious.
“It’s hard to find [a document] that you wouldn’t be suspicious of,” Grosz said, adding that legitimate documents from the company seemed to be the exception instead of the rule.
It wasn’t just the signatures that were fraudulent. According to Grosz, some of the forged documents contained information that had not been verified by those signing them. This sometimes led to the wrongful foreclosure of houses because of the innacuracies.
“We’ve had individuals who said ‘I was never late in my payments, but yet my house has been foreclosed on,’” Grosz said.
OCC Assesses Civil Money Penalty Against Wells Fargo, Requires Restitution to Municipalities Harmed by Bid-Rigging on Financial Products
WASHINGTON — The Office of the Comptroller of the Currency announced today that it has assessed a civil money penalty of $20 million against Wells Fargo Bank, N.A. (“bank”), and required it to pay more than $14.5 million in restitution for the involvement of the bank’s predecessor institutions, Wachovia Bank N.A. and First Union National Bank (“predecessor banks”), in a bid rigging scheme involving the marketing and sale of certain derivative financial products to various municipalities and Section 501(c)(3) organizations harmed by the predecessor banks’ misconduct during the period 1997 – 2006. The restitution amount includes improper gains and prejudgment interest calculated thereon from 42 rigged transactions.
The OCC also executed a formal agreement with the bank that requires it to implement a detailed plan to enhance and strengthen its policies, procedures, and internal controls related to competitively bid transactions conducted within the bank’s Municipal Derivatives Marketing and Trading groups, and to take steps to ensure that adequate policies, procedures, and controls are in place related to transactions involving competitive bidding bank-wide. The OCC’s formal enforcement action against the bank is part of a global resolution of actions coordinated with the U.S. Department of Justice, U.S. Internal Revenue Service, U.S. Securities and Exchange Commission, Federal Reserve Board, and approximately twenty-six State Attorneys General.
SOURCE: OCC.GOV
Civil Money Penalty and Formal Agreement below…
nr-occ-2011-144a
The OCC also executed a formal agreement with the bank that requires it to implement a detailed plan to enhance and strengthen its policies, procedures, and internal controls related to competitively bid transactions conducted within the bank’s Municipal Derivatives Marketing and Trading groups, and to take steps to ensure that adequate policies, procedures, and controls are in place related to transactions involving competitive bidding bank-wide. The OCC’s formal enforcement action against the bank is part of a global resolution of actions coordinated with the U.S. Department of Justice, U.S. Internal Revenue Service, U.S. Securities and Exchange Commission, Federal Reserve Board, and approximately twenty-six State Attorneys General.
SOURCE: OCC.GOV
Civil Money Penalty and Formal Agreement below…
nr-occ-2011-144a
Thursday, December 08, 2011
Bank of America/Countrywide whistleblower details wrongdoing, loan fraud, drug abuse and sexual harassment
Background
Countrywide Home Loans hired Foster in 2005 as a First Vice President overseeing borrower complaint risk in the Corporate Office of the President. Nine months later she was promoted to Senior Vice President, and in March 2007 to Executive Vice President of Fraud Risk Management. In that role, she supervised 30-40 staff responsible for investigating mortgage origination fraud. Foster was also responsible for reporting fraud and suspicious activity to regulators and the company’s Board of Directors.
Foster oversaw an investigation in the summer of 2007 of multiple branches in the Boston area of the subprime division. Investigators found massive evidence that employees had forged borrower signatures, altered and fabricated income and asset documentation, and manipulated the company’s automated underwriting and property valuation systems. The investigation was opened after receiving a tip from a former branch employee who had been fired after objecting to the fraudulent practices.
By February 2008, Foster had found equally shocking activities in investigations in Miami, Chicago, Cincinnati, San Diego, Las Vegas and Los Angeles. Foster believed that Countrywide Employee Relations and Lending Managers were colluding to circumvent fraud reporting channels in order to conceal the fraud perpetrated by high-producing loan officers and managers. Whistleblowing employees directed to report fraud and wrongdoing to Employee Relations were being transferred, demoted, harassed or terminated. In March of 2008, five employees of a branch in the Consumer Markets Division reported egregious levels of loan fraud, drug abuse and sexual harassment, and in doing so pleaded with the investigator not to reveal their names to Employee Relations out of fear of retaliation.
When Foster asked Countrywide’s Internal Audit to investigate Employee Relations, the company not only chose to conceal Foster’s allegations from BofA, it directed Employee Relations to investigate Foster.
In the meantime, BofA was identifying Countrywide employees for roles in the newly merged entity. In July 2008, after an intense vetting process, BofA offered Foster the position of Senior Vice President (SVP), Mortgage Fraud Investigations Division Executive.
Foster eventually learned of the investigation and that Countrywide’s Employee Relations managers had been questioning her staff and using coercion and intimidation in an attempt to obtain derogatory characterizations. Soon after that, Foster was interviewed by an SVP of Employee Relations and an SVP of Internal Audit. Although Foster’s manager raised concerns of retaliation to Countrywide executives prior to her interview, and Foster complained of the retaliatory acts during her interview, those allegations were ignored. Instead, Countrywide’s Employee Relations convinced BofA managers to terminate Foster, which occurred on September 8, 2008.
Case Status
Instead of accepting a payment of almost $228,000 for her silence, Foster wanted to ensure the corrupt practices at Countrywide were exposed and that the wrongdoers were held accountable. Foster filed a Sarbanes-Oxley Act whistleblower complaint with OSHA challenging the legality of her firing. In September 2011, OSHA ruled that Foster had been retaliated against in violation of the employee protection provision of the Sarbanes Oxley Corporate and Criminal Fraud Accountability Act of 2002. The Department of Labor ordered her reinstatement and $930,000 in damages.
OSHA Assistant Secretary Dr. David Michaels stated, "It's clear from our investigation that Bank of America used illegal retaliatory tactics against this employee. This employee showed great courage reporting potential fraud and standing up for the rights of other employees to do the same."
BofA has challenged OSHA’s ruling and is seeking a hearing. In the meantime, the Bank is required to reinstate Ms. Foster pending a final determination by the Department of Labor in the case.
The OSHA press release about the decision can be read here: http://goo.gl/zCzf4
Robo Signer-Notary Fraud-OCWEN-Johnna Miller, no longer notarize
Foreclosure Hamlet:
An example: Deutsche Bank executes this document via is attorney in fact for Ocwen representative, Johnna Miller and notarized by Letecia N. Arias SubstitutionofTrustee Arias Notary.pdf
Attention Homeowners!!
I recently challenged the signatures on an assignment used to unlawfully foreclose and to no surprise I was right. The notary Johnna Miller commission# 1025775 an employee at Ocwen, can no longer notarize ANYTHING! There is a full investigation underway and I will keep updating as things transpire.
An example: Deutsche Bank executes this document via is attorney in fact for Ocwen representative, Johnna Miller and notarized by Letecia N. Arias SubstitutionofTrustee Arias Notary.pdf
R.I. Senator Moura Complaint To The Department of Treasury RE: Misrepresentation of Loan Mod By Wells Fargo
Check out this letter from the RI Senator to Treasury Dept. Where are the rest of the Senators???
RI Senator Beth Moura to Wells Fargo Office of the CEO
RI Senator Beth Moura to Wells Fargo Office of the CEO
Five get jail, owe millions in mortgage scheme
Source: Albany Times Union
Five former employees of a Colonie firm that conned property owners, banks and lenders in a large-scale mortgage fraud scheme are all headed behind bars and owe millions of dollars.
The ex-members of the now-defunct Rivertown Investments at 1762 Central Ave. shed tears, apologized to victims and pleaded for leniency. The company's former owner denied being a criminal — and said it would be "simply impractical" to imprison him.
That failed to move County Judge Stephen Herrick before a packed courtroom of victims and weeping relatives of the defendants.
Wednesday, December 07, 2011
This day on December 7
Pearl Harbor
And former CEO of MF Global Jon Corzine's appearance at the House committee hearing:
BOMBSHELL- IRS enters the fraudclosure fight, weighs tax penalties on mortgage securities
The IRS confirmed to Reuters that the review comes in response to mounting evidence that banks violated tax requirements by mishandling the transfer of mortgages to REMICs, short for Real Estate Mortgage Conduits.
Should the IRS find reason to take tough action, the financial impact could be enormous. REMIC investments are held by pension funds, in individual retirement plans such as 401(k)s and by state and local government entities.
As of the end of 2010, investments in REMICs totaled more than $3 trillion, according to data supplied by the Securities Industry and Financial Markets Association.
In a brief statement in response to questions from Reuters, the agency said: "The IRS is aware of questions in the market regarding REMICs and proper ownership of the underlying mortgages as set out in federal tax law, and is actively reviewing certain aspects of this issue."
The statement said the IRS would not make any further comment. An IRS spokesman declined to say anything about the extent of the review, or whether the agency is likely to take action.
The review, however, is a sign that the widespread bank misdeeds in home foreclosure cases are spilling over to threaten the interests of investors in mortgage-backed securities. The banks originated the mortgages and packaged them into securities.
Should the IRS find reason to take tough action, the financial impact could be enormous. REMIC investments are held by pension funds, in individual retirement plans such as 401(k)s and by state and local government entities.
As of the end of 2010, investments in REMICs totaled more than $3 trillion, according to data supplied by the Securities Industry and Financial Markets Association.
In a brief statement in response to questions from Reuters, the agency said: "The IRS is aware of questions in the market regarding REMICs and proper ownership of the underlying mortgages as set out in federal tax law, and is actively reviewing certain aspects of this issue."
The statement said the IRS would not make any further comment. An IRS spokesman declined to say anything about the extent of the review, or whether the agency is likely to take action.
The review, however, is a sign that the widespread bank misdeeds in home foreclosure cases are spilling over to threaten the interests of investors in mortgage-backed securities. The banks originated the mortgages and packaged them into securities.
Presenting How Wells Fargo Nickel And Dime Clients To (Account) Death
Pewtrusts website:
The Transaction Infraction graphic demonstrates how banks can post debits and withdrawals in non-chronological order – a practice that can greatly impact the number of overdraft fees charged to a customer. Pew is encouraging an end to this practice and for banks to post transactions in a fully disclosed, objective and neutral manner that does not maximize overdraft fees.
The Transaction Infraction graphic demonstrates how banks can post debits and withdrawals in non-chronological order – a practice that can greatly impact the number of overdraft fees charged to a customer. Pew is encouraging an end to this practice and for banks to post transactions in a fully disclosed, objective and neutral manner that does not maximize overdraft fees.
Rep. Towns Introduces Bill to Alleviate Post-Foreclosure Financial Burden
Rep. Edolphus “Ed” Towns (NY-10) today introduced H.R. 3566, the Fairness in Foreclosure Act that will alleviate some of the financial burden for homeowners facing foreclosure.
Currently, foreclosure law is handled at the state level and varies widely. But in some states, banks have up to six years to pursue a homeowner for a deficiency judgment— that is, a money judgment against a borrower whose mortgage foreclosure sale did not produce enough funds to pay the underlying loan in full. In general, when a time frame is longer, it favors lenders over borrowers.
The Fairness in Foreclosure Act standardizes the length of time after a foreclosure that a mortgage company can bring a deficiency judgment against a homeowner, while also prohibit lenders from bringing a deficiency judgment against low-income borrowers.
The bill will provide the shorter of one year, or whatever the state law provides, as the time period during which lenders may bring forward a deficiency judgment action.
Currently, foreclosure law is handled at the state level and varies widely. But in some states, banks have up to six years to pursue a homeowner for a deficiency judgment— that is, a money judgment against a borrower whose mortgage foreclosure sale did not produce enough funds to pay the underlying loan in full. In general, when a time frame is longer, it favors lenders over borrowers.
The Fairness in Foreclosure Act standardizes the length of time after a foreclosure that a mortgage company can bring a deficiency judgment against a homeowner, while also prohibit lenders from bringing a deficiency judgment against low-income borrowers.
The bill will provide the shorter of one year, or whatever the state law provides, as the time period during which lenders may bring forward a deficiency judgment action.
Paragraph 22 Of Your Mortgage Matters
This is an interesting decision by the 2nd District Court of Appeals in Florida. In this case, the homeowner, Bryson argued that BB&T had violated the terms of the mortgage contract by not providing a notice to cure as required by paragraph 22 of the mortgage.
At a hearing held on the summary judgment motion, Bryson argued that BB&T had not refuted the affirmative defenses related to paragraph 22 of the mortgage and that the two default notice letters were not authenticated and could not be considered for summary judgment purposes. BB&T responded that the letters were”self-authenticating” because they were created by the bank. The court granted summary judgment to BB&T. The 2nd DCA disagreed and reversed and remanded the case back to the Circuit Court.
Bryson-v-BBT 2nd FL DCA Ruling
At a hearing held on the summary judgment motion, Bryson argued that BB&T had not refuted the affirmative defenses related to paragraph 22 of the mortgage and that the two default notice letters were not authenticated and could not be considered for summary judgment purposes. BB&T responded that the letters were”self-authenticating” because they were created by the bank. The court granted summary judgment to BB&T. The 2nd DCA disagreed and reversed and remanded the case back to the Circuit Court.
Bryson-v-BBT 2nd FL DCA Ruling
Tuesday, December 06, 2011
Art imitates life. Anarchy or heroism? Harry’s Law
Check out this clip of the show Harry’s Law as this show hits home and captured the current events of the financial crisis in this country in a courtroom:
JP Morgan Chase Zippy Cheats & Tricks memo
The Oregonian wrote a piece in 2008 about JP Morgan Chase memo that had surfaced that gave a glimpse into the mentality of JP Morgan Chase employees that fueled the mortgage mess. Here was the JP Morgan Chase memo by an employee. This memo was posted in the newspaper on Friday March 28, 2008. Hat tip to The Oregonian:
ZiPPY Cheats & Tricks...
If you get a "refer" or if you DO NOT get
Stated Income / Stated Asset findings....
Never Fear!! ZiPPY can be adjusted (just ever so slightly)
Try these steps next time you use Zippy!
You just might get the findings you need!!
* Always select "ALTERNATE DOCS" in the documentation drop down.
* Borrower(s) MUST have a mid credit score of 700.
* First time homebuyers require a 720 credit score.
* NO! BK's OR Foreclosures, EVER!! Regardless of time!
* Salaried borrowers must have 2 years time on job with current employer .
* Self employed must be in existence for 2 years. (verified with biz license)
* NO non-occupant co borrowers.
* Max LTV/CLTV is 100%
Try these handy steps to get SISA findings . . .
1) In the income section of your 1003, make sure you input all income in base income. DO NOT break it down by overtime, commissions or bonus.
2) NO GIFT FUNDS! If your borrower is getting a gift, add it to a bank account along with the rest of the assets. Be sure to remove any mention of gift funds on the rest of your 1003.
3) If you do not get Stated/Stated, try resubmitting with slightly higher income.
Inch it up $500 to see if you can get the findings you want. Do the same for assets.
It's super easy! Give it a try!
If you get stuck, call me . . . I am happy to help!
Tammy Lish
(503) 307-7079
tammy.d.lish@chase.com
ZiPPY Cheats & Tricks...
If you get a "refer" or if you DO NOT get
Stated Income / Stated Asset findings....
Never Fear!! ZiPPY can be adjusted (just ever so slightly)
Try these steps next time you use Zippy!
You just might get the findings you need!!
* Always select "ALTERNATE DOCS" in the documentation drop down.
* Borrower(s) MUST have a mid credit score of 700.
* First time homebuyers require a 720 credit score.
* NO! BK's OR Foreclosures, EVER!! Regardless of time!
* Salaried borrowers must have 2 years time on job with current employer .
* Self employed must be in existence for 2 years. (verified with biz license)
* NO non-occupant co borrowers.
* Max LTV/CLTV is 100%
Try these handy steps to get SISA findings . . .
1) In the income section of your 1003, make sure you input all income in base income. DO NOT break it down by overtime, commissions or bonus.
2) NO GIFT FUNDS! If your borrower is getting a gift, add it to a bank account along with the rest of the assets. Be sure to remove any mention of gift funds on the rest of your 1003.
3) If you do not get Stated/Stated, try resubmitting with slightly higher income.
Inch it up $500 to see if you can get the findings you want. Do the same for assets.
It's super easy! Give it a try!
If you get stuck, call me . . . I am happy to help!
Tammy Lish
(503) 307-7079
tammy.d.lish@chase.com
United Foreclosure Attorney Network alleges JP Morgan Chase to have improperly indorsed and assigned mortgage notes in order to foreclose
Chase is one of the major banks that announced a suspension of its foreclosure efforts in the fall of 2010 amid revelations of industry-wide mortgage document fraud according to media reports at the time. In the rush to process hundreds of thousands of foreclosures, Chase allegedly employed people to supply the necessary signatures for the documents that allowed the foreclosures to go forward. This practice, common among the major banks, came to be known as “robo-signing” and has been the target of lawsuits ever since.
Despite supposedly having put a stop to these practices last year, Chase has continued to face allegations of wrongful foreclosure. The United Foreclosure Attorney Network has filed suit against JP Morgan Chase recently in Superior Court in Martinez (case # C-11-02390) alleging, among other things, that JP Morgan Chase has not followed proper endorsement and transfer procedure before it has attempted to enforce Plaintiffs’ mortgage notes.
UFAN’s suit is just one instance of many such examples of alleged wrongful foreclosure. Spotlighted as one of the more egregious cases of mortgage and foreclosure fraud in recent memory, JPMorgan Chase was recently found to have presented false assignments of mortgages in court in order to foreclose on properties (case # 16-2008-CA-3989, 4th Judicial Circuit, Florida). A motion to dismiss JP Morgan Chase’s foreclosure action argued that the bank presented itself as the holder of the note and mortgage when it was actually only the servicer of the loan. The Bank’s attorneys had allegedly prepared false assignment documents that they attempted to use in court to justify the action.
Court documents reveal that while the Bank blamed the episode on a clerical error, the Court found "clear and convincing evidence" that Chase had engaged in a "knowing deception intended to prevent the defendants from discovery essential to defending the claim.”
Mayor Bloomberg's girlfriend was paid $109,954 for a days work on Brookfield board of Directors
Not Paying Your Taxes Is Very Lucrative (PDF)
Monday, December 05, 2011
Richard Bowen, Citi's whistleblower on 60 Minutes, gave testimony to FCIC last year
Senior Vice President and whistleblower Richard Bowen appeared on 60 Minutes last night on the segment "Prosecuting Wall Street," testified to the Financial Crisis Inquiry Commission last year on the subprime origination and securitization. Here are the links:
And here is part of Bowen's written testimony and warnings include his emails to the execs (see above):
Delegated Flow – Prime. Warnings Issued
The delegated flow channel purchased approximately $50 billion of prime mortgages annually. These mortgages were not underwriten by us before they were purchased. My Quality Assurance area was responsible for underwriting a small sample of the files post-purchase to ensure credit quality was maintained.
These mortgages were sold to Fannie Mae, Freddie Mac and other investors. Although we did not underwrite these mortgages, Citi did rep and warrant to the investors that the mortgages were underwritten to Citi credit guidelines.
In mid-2006 I discovered that over 60% of these mortgages purchased and sold were defective. Because Citi had given reps and warrants to the investors that the mortgages were not defective, the investors could force Citi to repurchase many billions of dollars of these defective assets. This situation represented a large potential risk to the shareholders of Citigroup. Testimony of Richard M. Bowen, III page 2
I started issuing warnings in June of 2006 and attempted to get management to address these critical risk issues. These warnings continued through 2007 and went to all levels of the Consumer Lending Group.
We continued to purchase and sell to investors even larger volumes of mortgages through 2007. And defective mortgages increased during 2007 to over 80% of production.
Check out FCIC's video of Bowen's testimony:
60 Minutes Overtime: Behind the financial crisis: A fraud investigator talks
Be sure to watch part 1 and part 2 of Prosecuting Wall Street with reporter Steve Kroft:
Biloxi Buzz for Monday
Morgan Stanley CFO: Raise Taxes On The Rich
U.S. official says no sign Iran shot down drone — (Reuters) - Iranian media reported on Sunday that their country's military had shot down a U.S. reconnaissance drone in eastern Iran, but a U.S. official said there was no indication the aircraft had been shot down.
Banks Are Claiming Bogus Homestead Exemptions In RI
Banks and other lenders have saved hundreds of thousands of dollars on foreclosed homes in Providence, thanks to tax breaks that were intended to help homeowners, according to data obtained by GoLocalProv.
This year, 44 banks and other companies have foreclosed on just over 341 properties in Providence, as of September. But those banks retained owner-occupied homestead exemptions on about 200 of those properties. In all, the exemptions—some as high as 50 percent—saved those banks about $422,615 on their 2011 tax bills, a GoLocalProv review of city data found. (See below chart for the complete breakdown.)
To Brenda Clement, executive director of the Housing Action Coalition of Rhode Island, the exemptions were blatantly unfair: “You shouldn’t be getting an exemption if you’re not a homeowner,” she told GoLocalProv.
Six figure savings for big banks
Those banks that racked up the most savings in exemptions are some of the biggest names in the mortgage industry. Topping the list were Fannie Mae and Freddie Mac, two mortgage giants that are government-sponsored companies. Fannie Mae got a $121,722 in tax breaks on 61 properties it had foreclosed as of this month. Had it been billed at the full 2011 tax rate of $30.38 per $1,000 in value, the company would have owed an additional $121,000 in taxes.
Freddie Mac saw its total tax bill sawed nearly in half, owing $53,124, instead of the $101,582 it would have had to pay without the homestead exemption.
Other banks that gained the most were Deutsche Bank, Bank of America, the U.S. Bank National Association, and Wells Fargo. Those four institutions alone saved well over a total of $100,000 on their 2011 tax bills, according to the city data.
To Michael McCarthy, a member of Occupy Providence, it’s just another case of banks doing what they do best—whatever they can do to maximize profits for shareholders and investors. “They can’t be expected to use reason when they could otherwise use lawyers,” McCarthy told GoLocalProv. “I definitely don’t think the market is going to fix it for us.”
As the name suggests, the homestead exemption is meant for homeowners who live in their houses. But banks were able to collect this exemption as well if they filed a foreclosure deed after the annual December 31 property tax assessments. The exemption then was not revoked until the next annual assessment.
Read more here
This year, 44 banks and other companies have foreclosed on just over 341 properties in Providence, as of September. But those banks retained owner-occupied homestead exemptions on about 200 of those properties. In all, the exemptions—some as high as 50 percent—saved those banks about $422,615 on their 2011 tax bills, a GoLocalProv review of city data found. (See below chart for the complete breakdown.)
To Brenda Clement, executive director of the Housing Action Coalition of Rhode Island, the exemptions were blatantly unfair: “You shouldn’t be getting an exemption if you’re not a homeowner,” she told GoLocalProv.
Six figure savings for big banks
Those banks that racked up the most savings in exemptions are some of the biggest names in the mortgage industry. Topping the list were Fannie Mae and Freddie Mac, two mortgage giants that are government-sponsored companies. Fannie Mae got a $121,722 in tax breaks on 61 properties it had foreclosed as of this month. Had it been billed at the full 2011 tax rate of $30.38 per $1,000 in value, the company would have owed an additional $121,000 in taxes.
Freddie Mac saw its total tax bill sawed nearly in half, owing $53,124, instead of the $101,582 it would have had to pay without the homestead exemption.
Other banks that gained the most were Deutsche Bank, Bank of America, the U.S. Bank National Association, and Wells Fargo. Those four institutions alone saved well over a total of $100,000 on their 2011 tax bills, according to the city data.
To Michael McCarthy, a member of Occupy Providence, it’s just another case of banks doing what they do best—whatever they can do to maximize profits for shareholders and investors. “They can’t be expected to use reason when they could otherwise use lawyers,” McCarthy told GoLocalProv. “I definitely don’t think the market is going to fix it for us.”
As the name suggests, the homestead exemption is meant for homeowners who live in their houses. But banks were able to collect this exemption as well if they filed a foreclosure deed after the annual December 31 property tax assessments. The exemption then was not revoked until the next annual assessment.
Read more here
Future of foreclosures in N.J. hinges on state Supreme Court decision
In the nearly five months since the state Supreme Court effectively allowed six of the country’s biggest banks to begin filing foreclosures again, attorneys and court officials have been expecting a flood of new filings to hit the courts.
Except it hasn’t happened. Foreclosure filings are down 83 percent as of October this year, compared with the same time period last year, according to court figures, and there are at least 100,000 cases either pending in the system or waiting to be submitted.
Attorneys involved in the work in New Jersey point to at least one reason for the significant delay: a court case that has reached the state Supreme Court, with oral arguments on Wednesday.
The case, US Bank National Association v. Guillaume, is important because the court is asked to determine who must be named as a point of contact on the document that initiates the foreclosure process, known as the Notice of Intent to Foreclose. The state Fair Foreclosure Act requires identifying the lender and its contact information. But because the original lender has often bundled and sold the loans to investors, the current lender lists the servicer, a third party that collects monthly payments and dispurses it to the mortgage holder. In this situation, the lender’s attorney argued it was unnecessary to name his client on the notice because the servicer had been assigned the mortgage rights.
Attorneys for the homeowners, Maryse and Emilio Guillaume, said listing the servicer is not sufficient, should the homeowner want to work out a solution and stay in the house, and any foreclosure judgment without the lender having been named should be voided.
Except it hasn’t happened. Foreclosure filings are down 83 percent as of October this year, compared with the same time period last year, according to court figures, and there are at least 100,000 cases either pending in the system or waiting to be submitted.
Attorneys involved in the work in New Jersey point to at least one reason for the significant delay: a court case that has reached the state Supreme Court, with oral arguments on Wednesday.
The case, US Bank National Association v. Guillaume, is important because the court is asked to determine who must be named as a point of contact on the document that initiates the foreclosure process, known as the Notice of Intent to Foreclose. The state Fair Foreclosure Act requires identifying the lender and its contact information. But because the original lender has often bundled and sold the loans to investors, the current lender lists the servicer, a third party that collects monthly payments and dispurses it to the mortgage holder. In this situation, the lender’s attorney argued it was unnecessary to name his client on the notice because the servicer had been assigned the mortgage rights.
Attorneys for the homeowners, Maryse and Emilio Guillaume, said listing the servicer is not sufficient, should the homeowner want to work out a solution and stay in the house, and any foreclosure judgment without the lender having been named should be voided.
Read on.
Us Bank v Guillaume w
Us Bank v Guillaume w
Let’s not forget the case that goes into the heart of this NJ case: Bank of New York vs. Laks. Click here.
Michigan Attorney Vanessa Fluker understands the bank abuse towards her clients. Check out the video. Click here.
Sunday, December 04, 2011
Be sure to watch 60 minutes tonight.
Received this tweet today from Michael Hudson, investigator reporter for iWatch news:
Tonight's @60Minutes: Whistleblowers offer window into mortgage frauds
Eileen Foster, the fraud sleuth profiled in iWatch News' "Great Mortgage Cover-Up" series, is scheduled to appear on CBS News' "60 Minutes" on Sunday night (12-4-11)
Reminder to Settlement Class Members in Wells Fargo Mortgage-Backed Certificates Litigation: The Deadline to Submit Claim Forms Is December 7, 2011
NEW YORK, NY, Nov 10, 2011 (MARKETWIRE via COMTEX) -- Settlement Class Members who wish to participate in the proposed settlement obtained in the In re Wells Fargo Mortgage-Backed Certificates Litigation ("Action") are reminded that a completed Proof of Claim and Release ("Proof of Claim") and supporting documentation must be mailed to the Claims Administrator, postmarked no later than December 7, 2011.
The Settlement Class includes: ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED MORTGAGE PASS-THROUGH CERTIFICATES PURSUANT OR TRACEABLE TO WELLS FARGO ASSET SECURITIES CORPORATION'S JULY 29, 2005 REGISTRATION STATEMENT, OCTOBER 20, 2005 REGISTRATION STATEMENT, OR SEPTEMBER 27, 2006 REGISTRATION STATEMENT, AND THE ACCOMPANYING PROSPECTUSES AND PROSPECTUS SUPPLEMENTS IN THE FOLLOWING 28 OFFERINGS AND WERE DAMAGED THEREBY: The WFMBS 2006-1 offering, WFMBS 2006-2 offering, WFMBS 2006-3 offering, WFMBS 2006-4 offering, WFMBS 2006-6 offering, WFMBS 2006-AR1 offering, WFMBS 2006-AR2 offering, WFMBS 2006-AR4 offering, WFMBS 2006-AR5 offering, WFMBS 2006-AR6 offering, WFMBS 2006-AR8 offering, WFMBS 2006-AR10 offering, WFMBS 2006-AR11 offering, WFMBS 2006-AR12 offering, WFMBS 2006-AR14 offering, WFMBS 2006-AR17 offering, WFMBS 2007-11 offering, WFMBS 2006-7 offering, WFMBS 2006-10 offering, WFMBS 2006-AR16 offering, WFMBS 2006-18 offering, WFMBS 2006-AR19 offering, WFMBS 2006-20 offering, WFALT 2007-PA1 offering, WFMBS 2007-AR4 offering, WFMBS 2007-10 offering, WFMBS 2007-13 offering, and WFMBS 2006-AR15 offering.
REST HERE
http://www.marketwatch.com/story/reminder-to-settlement-class-members-in-wells-fargo-mortgage-backed-certificates-litigation-the-deadline-to-submit-claim-forms-is-december-7-2011-2011-11-10?reflink=MW_news_stmp
The Settlement Class includes: ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED MORTGAGE PASS-THROUGH CERTIFICATES PURSUANT OR TRACEABLE TO WELLS FARGO ASSET SECURITIES CORPORATION'S JULY 29, 2005 REGISTRATION STATEMENT, OCTOBER 20, 2005 REGISTRATION STATEMENT, OR SEPTEMBER 27, 2006 REGISTRATION STATEMENT, AND THE ACCOMPANYING PROSPECTUSES AND PROSPECTUS SUPPLEMENTS IN THE FOLLOWING 28 OFFERINGS AND WERE DAMAGED THEREBY: The WFMBS 2006-1 offering, WFMBS 2006-2 offering, WFMBS 2006-3 offering, WFMBS 2006-4 offering, WFMBS 2006-6 offering, WFMBS 2006-AR1 offering, WFMBS 2006-AR2 offering, WFMBS 2006-AR4 offering, WFMBS 2006-AR5 offering, WFMBS 2006-AR6 offering, WFMBS 2006-AR8 offering, WFMBS 2006-AR10 offering, WFMBS 2006-AR11 offering, WFMBS 2006-AR12 offering, WFMBS 2006-AR14 offering, WFMBS 2006-AR17 offering, WFMBS 2007-11 offering, WFMBS 2006-7 offering, WFMBS 2006-10 offering, WFMBS 2006-AR16 offering, WFMBS 2006-18 offering, WFMBS 2006-AR19 offering, WFMBS 2006-20 offering, WFALT 2007-PA1 offering, WFMBS 2007-AR4 offering, WFMBS 2007-10 offering, WFMBS 2007-13 offering, and WFMBS 2006-AR15 offering.
REST HERE
http://www.marketwatch.com/story/reminder-to-settlement-class-members-in-wells-fargo-mortgage-backed-certificates-litigation-the-deadline-to-submit-claim-forms-is-december-7-2011-2011-11-10?reflink=MW_news_stmp
Bifurcation: Bellistri vs. Ocwen Loan Servicing case of MERS splitting the note and mortgage
Bifurcation means the splitting of a main body into two parts. Check out the chart of the Bellistri vs. Ocwen Loan Servicing case:
How debt collectors pursue family members of deceased debtors
After Linda Long's husband died of colon cancer last year, the phone calls poured in.
The 68-year-old retired office worker says she got as many as 10 calls a day from a debt-collection firm asking for $16,651.52 that her husband, Millard, had racked up on a Bank of America Corp. credit card.
An employee at West Asset Management in Omaha, Neb., explained that she wasn't legally obliged to pay, according to a recording of the November call reviewed by The Wall Street Journal. Then he veered into a discussion about how she could "get this taken off your plate."
Biloxi Buzz for Sunday
Last week's poll had asked:
How did you shop on Black Friday? JL readers answered that they didn’t. New poll is now up.
Portugal Is Latest Country To Go "MF Global", Raid Pensions Funds To Delay Fiscal Death
From Telegraph:
The cabinet agreed to transfer the assets from four of Portugal’s biggest banks to the state balance sheet.
The assets will be used to bridge a gap needed to meet the fiscal deficit target of 5.9pc of GDP set by the terms of the country’s €78bn bail-out from around 10pc in 2010.
"This measure is more than sufficient to meet the budget deficit goal in 2011," said Helder Rosalino, secretary of state for central administration, on Friday.
Portugal said it had informed the EU and IMF and assured them it would be a “one-off”. However the 2010 budget was met by shifting three pension plans from Portugal Telecom on to the public social security system. The liabilities don’t count, yet.
There have been no complaints from Eurostat but Raoul Ruperal from Open Europe said: “This can’t be seen as a future revenue stream in any way.”
The cabinet agreed to transfer the assets from four of Portugal’s biggest banks to the state balance sheet.
The assets will be used to bridge a gap needed to meet the fiscal deficit target of 5.9pc of GDP set by the terms of the country’s €78bn bail-out from around 10pc in 2010.
"This measure is more than sufficient to meet the budget deficit goal in 2011," said Helder Rosalino, secretary of state for central administration, on Friday.
Portugal said it had informed the EU and IMF and assured them it would be a “one-off”. However the 2010 budget was met by shifting three pension plans from Portugal Telecom on to the public social security system. The liabilities don’t count, yet.
There have been no complaints from Eurostat but Raoul Ruperal from Open Europe said: “This can’t be seen as a future revenue stream in any way.”
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