Showing posts with label Federal Deposit Insurance Corporation. Show all posts
Showing posts with label Federal Deposit Insurance Corporation. Show all posts

Wednesday, August 24, 2011

STOP FORECLOSURE FRAUD KEEPS YOU UP WITH ALL THE IMPORTANT FORECLOSURE NEWS


                         __________________________________________________________________________________
Stop Foreclosure Fraud presents the following...
HousingWire- Lender Processing Services Inc. (LPS: 17.07 -2.29%) and its DocX affiliate caused American Home Mortgage Servicing Inc. to lose millions from the robo-signing of mortgage documents, a lawsuit filed Tuesday contends. Coppell, Texas-based AHMSI filed suit in a Dallas district court against Jacksonville, Fla.-based LPS alleging more than 30,000 residential mortgages across the [...]

IN RE SCHWARTZ | MASS. BK Court Re-Opens Case “The fact that it had possession of the mortgage instrument did not render Deutsche the mortgagee and thus it lacked the power to sell the property” - 2011-08-23 17:03:27-04
UNITED STATES BANKRUPTCY COURT DISTRICT OF MASSACHUSETTS CENTRAL DIVISION In re: SIMA SCHWARTZ Debtor SIMA SCHWARTZ Plaintiff v. HOMEQ SERVICING, AGENT FOR DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE and DEUTSCHE BANK NATIONAL COMPANY, AS TRUSTEE Defendants MEMORANDUM OF DECISION AND ORDER After the plaintiff, Sima Schwartz, presented her case in chief during the first day of the trial in this adversary proceeding, upon oral motion of the defendants, HomEq Servicing and [...]

FDIC has to face $10 billion WaMu-related lawsuit - 2011-08-23 18:08:49-04
REUTERS- A federal judge ruled that the Federal Deposit Insurance Corp has to face a $10 billion lawsuit tied to the failure of Washington Mutual Bank. The judge refused the FDIC’s request to dismiss the lawsuit brought by Deutsche Bank National Trust Co over bad mortgages that were securitized by Washington Mutual. Washington [...]

BREAKING: New York Removed From State Group Working on Foreclosure Fraud Settlement Deal - 2011-08-23 18:30:23-04
Truly remarkable that no one can convince Attorney General Eric Schneiderman agree to back down! NY should support his team in any way, shape and form. He is NOT willing to let go of what is right for the NY people! Aug. 23 (Bloomberg) — The New York Attorney General’s office was removed [...]

Deutsche Bank knew mortgage co it bought lied: Justice Dept - 2011-08-24 00:30:10-04
(Reuters) – Deutsche Bank AG knew in 2006 that a mortgage company it was preparing to buy lied to the U.S. government about its mortgages, yet went ahead with the purchase and should be held financially responsible, the Justice Department said on Monday. According to the department’s amended $1 billion complaint [...]
 
 
 
 
 
 
 
 
Legal information is NOT legal advice.
The information herein should NOT be taken as legal advice and is NOT a substitute for the assistance of a licensed advisor.
I AM NOT AN ATTORNEY.
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Sunday, August 7, 2011

WAMU TRUST ASSIGNMENTS ALL FRAUDULANT

STUDY: Mortgage Assignments to Washington Mutual Trusts Are Fraudulent

Posted on August 7, 2011 by Neil Garfield

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EDITOR’S NOTE: We know the foreclosures were gross misrepresentations of fact to the Courts, to the Borrowers and to the Investors. This article shows the crossover between the MegaBanks — sharing and diluting the responsibility for these fabrications as they went along. If you are talking about one big bank you are talking about all the megabanks.
The evidence is overwhelming. The reasons are many. But the fundamental theme here is that Banks are committing widespread fraud using the appearance of credibility just because they are banks.
Thus the strategy of pushing hard in discovery and persevering through adverse rulings appears to be getting increasing traction. Every time anyone, including judges, take a close look at this mess the conclusion is the same — the Banks’ foreclosures have been a sham. The homeowners still legally own their home and the lien is unenforceable or non-existent.
What part of the obligation of the borrower still exists? To whom is it payable? These are questions the Banks as servicers refuse to answer. It’s a simple set of questions that never had any bite to them until now.
From Lynn Symoniak
Mortgage Fraud
Bank of America
JP Morgan Chase
Lender Processing Services
WaMu Trusts
Washington Mutual
WMABS Trusts
WMALT Trusts
Action Date: August 6, 2011
Location: Jacksonville, FL
An examination of over 5,000 Mortgage Assignments to Washington Mutual
Trusts shows that these Trusts (WaMu, WMALT and WMABS) used Mortgage
Assignments signed by employees of JP Morgan Chase to foreclose. The
most prolific of the Chase signers, all from Jacksonville, Florida,
include Elizabeth Boulton, Margaret Dalton, Barbara Hindman, Patricia
Miner, Roderick Seda and Shelley Thieven. These Chase employees sign
as MERS officers on behalf of at least 30 different mortgage companies
to convey mortgages AND NOTES to Washington Mutual trusts that closed
years earlier.
In the vast majority of these cases, Bank of America is the Trustee.
Because the original loan documents are missing, Bank of America
allows Chase to make up new documents as needed to foreclose. The vast
majority of these Assignments state that the Trusts acquired these
mortgages in 2009 and 2010.
There are two separate frauds here:
1. not having the documents despite the promises to investors that the
documents were obtained and safely held; and
2. fabricating the replacement documents to foreclose.
In almost every case, Bank of America is the Trustee.
Did the FDIC just not notice any of this? There are thousands of these
specially-made Assignments signed by Chase employees for WaMu, WMALT
and WMABS trusts used across the country.
When Bank of America did not use documents fabricated by Chase to
foreclose, it used documents fabricated by LPS in Dakota County, MN.

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Monday, July 25, 2011

CRIMINAL CHARGES WILL BE FILED AGAINST WELLS FARGO IN THE VERY NEAR FUTURE

OP-ED COLUMNIST

This Is Considered Punishment?

By 
Published: July 25, 2011
Last Wednesday, nearly lost in the furor over Rupert-gate and the debt ceiling crisis, came the surprising news that the Federal Reserve has issued a cease-and-desist order against a Too-Big-to-Fail bank. The bank was Wells Fargo, which was also fined $85 million and ordered to compensate customers it had unfairly — indeed, illegally — taken advantage of during the subprime bubble.
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What made the news surprising, of course, was that the Federal Reserve has rarely, if ever, taken action against a bank for making predatory loans. Alan Greenspan, the former Fed chairman, didn’t believe in regulation and turned a blind eye to subprime abuses. His successor, Ben Bernanke, is not the ideologue that Greenspan is, but, as an institution, the Fed prefers to coddle banks rather than punish them. That the Fed would crack down on Wells Fargo would seem to suggest a long-overdue awakening.
Yet, for anyone still hoping for justice in the wake of the financial crisis, the news was hardly encouraging. First, the Fed did not force Wells Fargo to admit guilt — and even let the company issue a press release blaming its wrongdoing on a “relatively small group.” The $85 million fine was a joke; in just the last quarter, Wells Fargo’s revenues exceeded $20 billion. And compensating borrowers isn’t going to hurt much either. By my calculation, it won’t top $20 million.
Most upsetting of all, the settlement raises the question that just won’t go away: Why can’t the federal government prosecute financial wrongdoers?
I realize that the Federal Reserve can’t bring a criminal case (and, to be fair, there are statutory limits on how big a fine it can levy). But the Justice Department certainly can. Yet ever since it lost an early case against two Bear Stearns fund managers in 2009, it has gone after only the smallest of small fry: individual borrowers, brokers and appraisers who lack the means to do much more than plead guilty.
In March, for instance, I wrote about the sad case of Charlie Engle, the ultra-marathoner, who was convicted of lying on a liar loan — that is, exaggerating his income on a subprime mortgage application — even though the evidence against him was thin. Prosecuted by Neil H. MacBride, the U.S. attorney for the Eastern District of Virginia, Engle was sentenced to 21 months in prison.
Now compare Engle’s alleged crime to the case the Federal Reserve brought against Wells Fargo Financial, which, until it was shut down last summer, was the subprime subsidiary of Wells Fargo, based in Des Moines. There were several allegations, but the one that caught my eye was that Wells employees “falsified income information on mortgage applications.” In other words, they lied on liar loans! The only difference is that the lying was done by a group of Wells Fargo brokers rather than by some poor sap like Charlie Engle.
What’s more, this practice appears to have been quite widespread — “fostered,” as the Fed puts it, “by Wells Fargo Financial’s incentive compensation and sales quota programs.” Matthew R. Lee, the executive director of Inner City Press/Community on the Move and Fair Finance Watch, spent years bringing Wells’ subprime abuses to the attention of the Federal Reserve. “The way the compensation was designed insured that abuses would take place,” he says. “It was a predatory system.”
These are exactly the kind of loans — built on illegal practices — that gave us the financial crisis. Brokers working for subprime mortgage companies routinely doctored incomes to hand out subprime loans they knew the borrowers could never repay — and then, after taking their fat fees, shoveled the loans to Wall Street, which bundled them into subprime securities. This was the kindling that lit the inferno of September 2008. So again, I ask: Why is there no criminal investigation into what went on at Wells Fargo Financial?
The person I called for answers was the press secretary to Nicholas A. Klinefeldt, the U.S. attorney for the Southern District of Iowa, which includes Des Moines. A glance at Klinefeldt’s 2011 press releases suggests that he takes the MacBride approach to mortgage fraud: only the little guy has anything to fear. Needless to say, his press secretary knew nothing about the Wells Fargo case and even questioned whether the Southern District of Iowa had jurisdiction.
The next day, he referred me to a Justice Department spokeswoman. I wrote her an e-mail laying out my question as plainly as I could: “I am trying to understand why the mortgage brokers who work at a major bank are getting a pass when they have lied on liar loans,” I said.
That was Friday. On Monday, at 8:30 p.m., a half-hour from press time, the Justice Department sent me a statement claiming that in 2010 “the number of defendants in mortgage fraud cases more than doubled” from 2009.
Not one of those defendants ever worked for Wells Fargo Financial.

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Friday, July 22, 2011

BEHIND THE CORNER-CUTTING, VAST TROVES OF MISSING DOCUMENTS

BEHIND THE CORNER-CUTTING,
VAST TROVES OF MISSING DOCUMENTS

WHY HAVE SKETCHY MORTGAGE procedures been so difficult to root out?  some lawyers blame misguided efforts to cut costs. Most foreclosures are uncontested, they note. And so servicers save money by avoiding costly searches for missing original documents or hiring additional staff to deal with the surge in
foreclosures.  There are signs, however, that servicers resort to doubtful documents because they have no choice if they are determined to foreclose:  to a great extent, originals simply don’t exist.  It’s one of the overlooked legacies of the housing boom.

In the rush to make new home loans and sell them off as fast as possible to investors on Wall  street, the original lenders --big banks as well as now defunct makers of subprime loans -- destroyed original
documents, or never turned them over as required to the ownership pools that scooped them up. From 2004 through the end of the housing boom in 2006, more than half of all new mortgages were securitized and sold to such pools, known as mortgage-securitization trusts, according to the  securities Industry and
Financial Markets Association.

So, banks and intermediaries in many cases never turned over the two essential documents underpinning a home loan -- promissory notes and mortgages -- that would convey ownership to the investor trusts.  that means many pension funds, insurance companies and hedge funds that invested in the trusts never got formal title to mortgages they had paid for.

One example: Public records in foreclosure cases indicate that New century Mortgage, the nation’s second largest subprime lender until it collapsed in 2007, almost never endorsed promissory notes or assigned mortgages to trusts that bought its mortgages. A Reuters sampling of 50 foreclosure cases filed in Duval  County, Florida, involving New  century mortgages found that none of the promissory notes filed in the cases had any endorsements at all on them. Records show that similar large-scale lapses occurred with other big
lenders.  The result is that trusts may be out many billions of dollars, says Matthew Weidner, a lawyer who specializes in mortgage litigation.  If proper procedures are followed now, foreclosures could slow to a trickle. 

And a cloud would hang over title to millions of homes, potentially further depressing the housing market.  Sheila Bair, who recently stepped down as Federal deposit Insurance corp. chairman, in Congressional testimony has called for a wide-ranging audit of the problem.  But other regulators so far haven’t backed the
idea, possibly fearing the consequences if the extent of the problem became known.

(Editing by Michael Williams)

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SENATORS WANT BANKS' FORECLOSURE RECORDS REVEALED


Cantwell, 9 other senators want banks' foreclosure records revealed











  • Kelly Gilblom
  • Staff Writer
  • Email: kgilblom@bizjournals.com



Sen. Maria Cantwell (D-Wash.) joined nine other senators Wednesday in writing a letter to regulators, asking them to release information on how well banks have carried out foreclosures. She and others hope the letter -- addressed to the Office of the Comptroller of the Currency, theFederal Deposit Insurance Corp.and the Federal Reserve-- will help prevent illegal foreclosure practices.


Washington state had the 15th highest foreclosure rate in the country in the first half of this year with 29,398 foreclosures, according to California data company RealtyTrac. The senators say that illegal practices, such as "robo-signing" (signing foreclosure documents without reading them), are rampant.


Cantwell and others think if they ask regulators to reveal how each banks are performing, it will help the problem.


However, there have been numerous measures already taken to improve the practices, including lawsuits against banks, enforcement orders and fines. If what the senators say is true, that illegal practices still exist, that means previous efforts didn't eliminate the problems.
"We believe that the full disclosure of these documents to the public is necessary given the recent reports by both the Associated Pressand Reutersof the continued widespread practice of 'robo-signing' among mortgage servicers," said the letter.
Separately, a new oversight board intended to be a watchdog for financial consumers, called the Consumer Financial Protection Bureau, opened its doors today. The creation of the bureau was part of the 2010 Dodd-Frank bill, which put new regulations on financial institutions.


For the full text of the letter click here.


KELLY GILBLOM covers wealth management and banking for the Puget Sound Business Journal. Phone: 206-876-5428 | Email: kgilblom@bizjournals.com | Twitter: KellyGilblom | Click here to sign up for the PSBJ Daily Update.

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