Wednesday, November 21, 2012

Two Original “WET INK” Notes Discovered in Same Foreclosure Case – Beth Cottrell JPMorgan Chase Team – 18,000 Documents a Month!

As the writer of this post states, we have had our suspicions of fraudulently created original "wet ink" notes as well - especially when the note is lost for 6-18 months, then suddenly appears and is presented to the Court, or where we get multiple copies of the purported same allonge but the endorsements are in different places, sometimes the allonges are even on different bank letterheads (!)(First National Bank of Arizona / Nevada).

As noted in the story, GMAC has referred to this in court as a "technical" problem.  No, it is not.  It is blatant fraud.  Yet, when we have presented this evidence in court, often the case was dismissed as the Court asserts that the homeowner cannot file a suit and raise the issue on a "suspicion."  A suspicion?  Really?  This is how you catch people when they commit fraud - you have a good faith basis to assert they are committing fraud, you sue, you investigate, and maybe its true, maybe its not, but you get to find out because the court wants to know (or it should).

We stay hopeful that the approach of the courts to these documents (fraudulent assignments, allonges and endorsements on notes) continues to shift towards justice.

Guilty Pleas in Foreclosure Fraud Cases by DocX Founder - the document prep company used by banks


From the Article comes this quote:

"We are sending a signal to the financial industry that these mortgage documents have meaning, they are legal documents and if you are going to file them in the courthouses of this country then they had better be honestly drafted," said Chris Koster, the Missouri attorney general.

And this:

"If citizens had filed these types of documents with a bank in an attempt to get a loan, the banks would have filed criminal cases against them," Mr. Koster said. "The mortgage servicing industry has to be held to the same standard that the banks hold the rest of us to."

Truer statements could not be made.  At BB&B we have been raising those very issues for five years with the courts.  Simply, an entity may not used fraudulent documents as the basis to take someone's home.  Yet, all too often this fraud is overlooked in an effort to protect creditors.  But that is the point, if the documents are fraudulent, there is no evidence that the foreclosing entity is, in fact, the creditor.

Further, the rule of law must prevail over the inconvenience of a foreclosure that must be overturned, or denied prior to occurring.  When the rule of law does not prevail, our system of justice is tainted.  

Thursday, November 8, 2012

Secret Documents Show Weak Oversight of Key Foreclosure Program

Pro Publica is doing incredible work - the hard work none of us wants to / can do.  Once again, they expose the inherent problems of having the fox guard the henhouse.

Asking why it is done that way is an entirely different question.

Read more at the link for more depressing goodness.


Wednesday, November 7, 2012

Why Mortgage-Backed Securities Aren't (Backed by Securities): How MERS Toasted the Banks

MERS and the mortgagebacked-securities

Great article from December 2010 - so much of this has come to light since.

The Bailout of AIG: Mission Accomplished?


Yes, Virginia, Servicers Lie to Investors Too: $175 Billion in Loan Losses Not Allocated to Mortgage Backed Securities (and Another $300 Billion on the Way)


Just In | FDIC Sues JPMorgan, Citigroup, BofA Securities, Deutsche Bank


FDIC Sues Major Banks for $2.1 Billion that Pushed and Sold Residential Mortgage Backed Securities with False Statements About Quality


Wells Fargo Wachovia Unit Faces Probe Over Mortgage Practices


Eurozone Composite PMI October 2012: Eurozone Economy Endures Worst Month Since June 2009


Massachusetts Senate Race 2012: Warren Win Is Big Wall Street Loss


Wall Street Must Rebuild Obama Ties In Face Of Stricter Financial Regulation After Election Win


Monday, November 5, 2012

Australian Judge rules Standard & Poor, the credit rating agency, misled investors with AAA ratings, the case will proceed


In a 1,500 page opinion, a judge in Australia has ruled that a lawsuit against the rating agency, S&P, will go to trial.  This is the first of its type to survive, with those cases filed in the US usually dismissed on grounds that the ratings are merely the credit rating agency's exercising their First Amendment rights.

As noted in the article:

"The 1,500-page ruling marks the first time a rating agency has stood a full trial over a structured finance product. The decision will be closely studied by rival rating agencies and also by investors and investment banks around the world."

Keep an eye on this one.

Sunday, November 4, 2012

Thursday, November 1, 2012

Mortgage Fraud - the Crime of the Century

While this article really says nothing new, it sheds light on the elephant in the room, which was a major cause of the financial crisis (coupled with massive deregulation thanks to lobbying by those same banks and the Federal Reserve's policy of keeping interest rates low during the bubble): the massive amount of fraud lending institutions engaged in during the peak of the housing bubble (2004-2006). 

The claim that no one saw this coming is nonsensical.  Yet, it is repeated still today.  This helps the reader understand why those claims need to be shut down.  At some point, "truthiness" (a fabulous term coined by Stephen Colbert) has got to end, the truth has to be acknowledge, and people need to go to jail.  Period.

Check out the article on here: