from Washington's Blog, very interesting and truth telling article on the actual state of the economy.  The government spin on the numbers is mind blowing and their willingness to deceive the public is growing greater and greater. 

ILLUSION OF RECOVERY – FEELINGS VERSUS FACTS

Posted on February 6, 2012 by JimQ

“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as the final and total catastrophe of the currency involved.” – Ludwig von Mises

The last week has offered an amusing display of the difference between the cheerleading corporate mainstream media, lying Wall Street shills and the critical thinking analysts like Zero Hedge, Mike Shedlock, Jesse, and John Hussman. What passes for journalism at CNBC and the rest of the mainstream print and TV media is beyond laughable. Their America is all about feelings. Are we confident? Are we bullish? Are we optimistic about the future? America has turned into a giant confidence game. The governing elite spend their time spinning stories about recovery and manipulating public opinion so people will feel good and spend money. Facts are inconvenient to their storyline. The truth is for suckers. They know what is best for us and will tell us what to do and when to do it.
The false storyline last week was the dramatic surge in new jobs. This fantastic news was utilized by the six banks that account for 80% of the stock market trading to propel the NASDAQ to an eleven year high and the Dow Jones to a four year high. The compliant corporate press did their part with blaring headlines of good cheer. The entire sham was designed to make Joe the Plumber pull out one of his 15 credit cards and buy a new 72 inch 3D HDTV for this weekend’s Super Bowl. When you watch a CNBC talking head interviewing a Wall Street shyster realize you have the 1% interviewing the .01% about how great things are.
What you most certainly did not hear from the MSM is that the NASDAQ is still down 42% from its 2000 high of 5,048. None of the brain dead twits on CNBC pointed out the S&P 500 is trading at the exact same level it reached on April 8, 1999. Twelve or thirteen years of zero or negative returns are meaningless when a story needs to be sold. On Friday the hyperbole utilized by the media mouthpieces was off the charts, leading to an all-out brawl between the critical thinking blogosphere and the non-thinking “professionals” spouting the government sanctioned propaganda. Accusations flew back and forth about who was misinterpreting the data. I found it hysterical that anyone would debate the accuracy of BLS (Bureau of Lies & Swindles) data.
The drones at this government propaganda agency relentlessly massage the data until they achieve a happy ending. They use a birth/death model to create jobs out of thin air, later adjusting those phantom jobs away in a press release on a Friday night. They create new categories of Americans to pretend they aren’t really unemployed. They use more models to make adjustments for seasonality. Then they make massive one-time adjustments for the Census. Essentially, you can conclude that anything the BLS reports on a monthly basis is a wild ass guess, massaged to present the most optimistic view of the world. The government preferred unemployment rate of 8.3% is a terrible joke and the MSM dutifully spouts this drivel to a zombie-like public. If the governing elite were to report the truth, the public would realize we are in the midst of a 2nd Great Depression.


The unemployment rate during the Great Depression reached 25%. Without the BLS “adjustments” the real unemployment rate in this country is 23%. Cheerleading and packaging the data in a way to mislead the public does not change the facts:

• There are 242 million working age Americans. Only 142 million Americans are working. For the math challenged, such as CNBC analysts, that means 100 million working age Americans (41.5%) are not working. But don’t worry, the BLS says the unemployment rate is only 8.3%. Things are going so swimmingly well in this country the other 33.2% are kicking back enjoying the good life.
• The labor force participation rate and employment to population ratio are at 30 year lows. The number of Americans supposedly not in the labor force is at an all-time record of 87.9 million. A corporate MSM pundit like Steve Liesman would explain this away as the Baby Boomers beginning to retire. Great storyline, but the facts prove that old timers are so desperate for cash they have dramatically increased their participation in the labor market.

• The data being dished out by the government on a daily basis does not pass the smell test. The working age population since 2000 has grown by 30 million people. The number of people working has grown by only 4.7 million. A critical thinker would conclude the unemployment rate should be dramatically higher than the reported 8.3%. But the government falsely reports the labor force has only increased by 11.8 million in the last eleven years. They have the gall to report that 17.9 million Americans just decided to leave the workforce. The economy was booming in 2000. It sucks today. Don’t more people need jobs when times are tougher? The Boomers retiring storyline has already proven to be false. The fact that 46 million (15% of total population) people are on food stamps is a testament to the BLS lie. A look at history proves how badly the current figures reek to high heaven:
• 2000 to 2011 – Not in Labor Force increased by 17.9 million.
• 1990′s – Not in Labor Force increased by 5 million.
• 1980′s – Not in Labor Force increased by 1.7 million.
• The Not in the Labor Force category is utilized to hide how bad the employment situation in this country really is. They conclude that 17 million out of 38 million Americans between the ages of 16 and 24 are not in the labor force. That is complete bullshit. From the time I turned 16, I worked. Everyone I knew worked. I worked through high school and college. It is a lie that 45% of these people don’t want a job. If you dig into their data, you realize the horrific state of employment in this country:
• 74% of 16 to 19 year olds are not employed
• 85% of black 16 to 19 year olds are not employed
• 31% of black 25 to 54 year old men are not employed
• 40% of 20 to 24 year olds are not employed
• 22% of 25 to 29 year old males are not employed
• 22% of 50 to 54 year old males are not employed
• According to the BLS, 11% of men between 25 and 54 are not in the labor force

Not only is real unemployment at Depressionary levels, but those that do have jobs are falling further and further behind. Wages have gone up less than 2% in the last year and have been rising at an annual rate below 3% for the last four years. According to our friends at the BLS, inflation has risen 3% in the last year. This is almost as ludicrous as their unemployment rate. Anyone living in the real world, as opposed to the BLS model world, knows that inflation on the things we need to live has been rising in excess of 10%. It is a fact that if you measure CPI exactly as it was measured in 1980, at the outset of our great debt inflation, it exceeds 10% versus the fake 3% reported without question by the MSM to a non-thinking public. A poor schmuck making the median salary of $25,000 who gets a 2% raise thinks he has $500 more to spend when in reality he has lost $2,000 of purchasing power. Federal Reserve created inflation is an insidious hidden tax that destroys the 99%, while enriching the 1%.

Until Debt Do Us Part

“Insanity is doing the same thing, over and over again, but expecting different results.” – Albert Einstein

The recovery storyline being touted by the oligarchy of politicians, bankers and media is designed to make consumers feel better. This is a key part of their master plan. Any honest assessment of the financial disaster that struck in 2008 would conclude it was caused by too much debt peddled to too many people incapable of paying it back, too few banks having too much power, the Federal Reserve keeping interest rates too low for too long, and that same Federal Reserve doing too little regulating of the Too Big To Fail Wall Street mega-banks. I wonder what Albert Einstein would think about the “solutions” rolled out to fix our debt problem. Would he find it insane that total credit market debt has actually risen to an all-time high of $53.8 trillion, up $533 billion from the previous 2008 peak? Our leaders have added $6.1 trillion to our National Debt in the last four years, a mere 66% increase. This unprecedented level of borrowing certainly did not benefit the American people, as real GDP has risen by $96 billion, or 0.7%, over the last four years.

Would Einstein find it insane that the governing elite would encourage the 4 biggest banks, that were the main culprits in creating a worldwide financial collapse, to actually get bigger? The largest banks in the U.S. now control 72% of all the deposits in the country versus 68.5% in 2008. The Too Big To Fail are now Too Bigger To Fail. Rather than liquidating the bad debts, breaking up the insolvent banks, selling off the good assets to well run banks, firing the executives, and wiping out the shareholders & bondholders foolish enough to invest in these badly run casinos, the powers that be chose to protect their fellow .01% brethren and throw the 99% under the bus.

Ben Bernanke, in conjunction with Tim Geithner and his masters on Wall Street, implemented a zero interest rate policy designed to enrich the Wall Street banks, force investors into the stock market, and encourage Americans to borrow and spend like it was 2005 again. Rather than accepting that our economy has been warped for decades, with over-consumption utilizing debt as the driving force, and allowing a reset, the Federal Reserve insanely encouraging banks and consumers to do the same thing again. We do know Bernanke has stolen $450 billion of interest income going to savers and senior citizens and handed it to Jamie Dimon, Vikrim Pandit, Lloyd Blankfein and the rest of the Wall Street cabal. The “austerity is bad” storyline is pounded home on a daily basis by the politicians, corporate chieftains, Wall Street billionaires, and MSM pundits. The definition of austere is “practicing great self-denial”. Did you see the mob scenes on Black Friday? Americans are incapable of any self-denial, let alone great self-denial, and the masters of our country will not allow it to happen. One look at our GDP figures confirms the non-austerity occurring in this country. In 2007, prior to the collapse, consumer spending accounted for 69.7% of GDP. Today, consumer spending accounts for 71% of GDP, with investment accounting for 12.7% of GDP. In the good old days of 1979 prior to the epic debt bubble, when the financial industry do not run this country, consumer spending accounted for 62% of GDP and investment accounted for 19% of GDP. What an insane concept. You spend less than you make and save the difference. You then invest that money where you can get a reasonable return (.15% in a money market account is not exactly reasonable).

As Ludwig von Mises pointed out, a false boom created by credit expansion will ultimately collapse. We had the chance in 2008 – 2009 to voluntarily abandon the Wall Street induced credit expansion and allow our country to reset. The pain and misery would have been great, especially for the 1% who own most of the stocks, bonds and peddle the debt to the ignorant masses. As you can see in the chart below, the powers that be need debt per employed American to grow at an ever increasing rate to maintain their power and wealth. The miniscule reduction in debt from 2009 to 2011 was unacceptable. The governing powers will not be satisfied until von Mises’ final currency catastrophe is achieved.

Bernanke and his Wall Street puppet masters’ plan is actually quite simple. It’s essentially a confidence game. A confidence game (also known as a con, flim flam, gaffle, grift, hustle, scam, scheme, or swindle) is an attempt to defraud a group by gaining their confidence. The people who commit such tricks are often known as con men, con artists, or grifters. The con man often works with one or more accomplices called shills, who help manipulate the mark into accepting the con man’s plan. In a traditional confidence game, the mark is led to believe that he will be able to win money or some other prize by doing some task. The accomplices may pretend to be random strangers who have benefited from successfully performing the task. Bernanke and the 1% are the con men. They are attempting to defraud the 99% by convincing them their “solutions” will benefit them. The shills acting as accomplices are Wall Street bankers, bought off economists, politicians, journalists, and mainstream media pundits. You are the mark. The game has multiple facets but is based on more freely flowing low interest easy debt. The con man has reduced interest rates to zero at the behest of his puppet masters. The Wall Street accomplices offer enticing financing to the marks for big ticket items like automobiles, furniture and electronics. As the marks go further into debt, the Wall Street shills report record earnings ($26 billion from loan loss reserve accounting entries), consumer spending rises and GDP goes higher. The mainstream media accomplices dutifully report an improving economy. The government accomplices massage the employment and inflation data and declare a jobs recovery with no inflation. The marks are supposed to feel better about the future and spend even more borrowed money. This is what is considered a self-sustaining recovery by the psychopaths running this country.
All you have to do is open your daily paper to see the confidence game in full display. Last week the MSM reported another surge in automobile sales. Our beloved American automobile manufacturers are back baby!!! Automobile sales are now pacing above 14 million on an annual basis. This is up from the depths of the recession in 2009 when the annual rate was below 10 million. We’ve breached the Cash For Clunkers level and there is nowhere to go but up. The storyline is that Obama was right to save GM and Chrysler with your tax dollars. They are now making splendid vehicles (except for the exploding Chevy Volts) and employing millions of Americans. This is a true American comeback success story. Clint Eastwood should do a commercial about it.

There is one little problem with this storyline. It’s bullshit. Remember GMAC? You bailed them out when all their subprime auto and mortgage loans went bad in 2009. They have a brand new business plan. Change your name to Ally Bank and start making as many subprime auto loans as possible. You will be happy to know that according to Experian, 45% of all auto loans being made today are to subprime borrowers. What could possibly go wrong? In addition, the average loan term has grown to almost 6 years. Executives at Ally Financial said that subprime car lending had become “very attractive” because profit margins on the loans more than cover the cost of expected losses from borrowers who fail to repay what they owe. I’m sure they have everything completely under control. Gina Proia, a company spokeswoman, said the company places “greater emphasis on the higher end of the nonprime spectrum” and only lends to people who show they can pay. I can’t believe they are restricting their loans to only people who they think can pay. I’m surprised Obama isn’t condemning them for such restrictive loan terms. If you open your paper to the auto section you will see financing offers of $0 down-payment, and 0% interest for 7 years across the board on most models. But why buy, when you can lease a luxury automobile for $300 per month? It is simply amazing how many vehicles you can “sell” when “credit challenged” Americans can rent them for seven years. I wonder if this explains why I see dozens of $40,000 luxury autos parked in front of $25,000 dilapidated hovels during my daily commute through West Philadelphia. It also seems the Big Three are “selling” a few extra vehicles to their dealers in January as pointed out by Zero Hedge. No need to let a few facts get in the way of a feel good story.

• Ford month-end inventory 86-day supply at end of Jan. (492k vehicles) vs 60-day supply (466k) as of Dec. 31
• Chrysler had 83-day supply (349k units) end of Jan. vs 64-day (326k units) as of Dec. 31
• GM month-end inventory 89-day supply (619k units) vs 67-day supply (583k) Dec. 31

The facts prove the issuance of billions in easy credit is creating the illusion of recovery. Non- revolving (auto & student loans) consumer credit outstanding is now at an all-time high of $1.7 trillion. Even with billions in bad debt write-offs since 2009 the amount outstanding has risen by $100 billion. Does this sound like austerity is gripping the nation? The Federal government is dishing out student loans like candy, as hundreds of thousands of students get worthless degrees from for-profit diploma mills like the University of Phoenix and its ilk. By keeping them occupied in school, the government is able to keep them in the Not in the Labor Force category. Not to be outdone, our friends at GE Capital, Wells Fargo and the other too big to fail entities have been doing their part on the revolving credit side of the scam. I’ve recently been seeing an ad by the largest U.S. furniture retailer, Ashley Furniture, offering 0% interest with no payments for 7 years. I don’t know about you, but my kids destroy a couch in less than 7 years. Wells Fargo Credit doesn’t seem too worried. A critical thinker might ask, how can Wells Fargo possibly make money offering these terms? But there is the rub. Ben Bernanke is loaning Wells Fargo money at 0% so they can perpetuate the confidence game. These insane bankers truly believe they can kick start this moribund debt saturated economy by issuing billions more in debt to people incapable of repaying them. Einstein would be amused.

The McKinsey Group put out a report a couple weeks ago analyzing the amount of American household debt and optimistically concluding that it could be back on a sustainable path by 2013. Mike Shedlock pointed out that sustainable is in the eye of the beholder. It seems the bright fellows at McKinsey haven’t grasped the concept of regression to the mean. First of all their analysis is flawed because real disposable personal income is actually declining and Ben Bernanke’s master scam is working and Americans are now adding to their household debt. The little blue line has turned upwards since they gathered their data. Secondly, as Mish so accurately points out, the sustainable level of household debt is really at the levels prior to the debt bubble that began in the early 1980s. That is a debt level of approximately 70% of disposable personal income, as opposed to the current level of 110%.

The implications of household debt levels regressing to their long-term mean would be catastrophic to the 1%. Their kingdom of debt would come crashing down. Their power and wealth would be swept away. This is why it is so vital for them to create the illusion of recovery. Their confidence game is built upon an ever increasing flow of credit expansion. It will not work. There is no avoiding the final collapse of a boom created solely by credit expansion. Those in power will never voluntarily relinquish their grand game of pillaging the wealth of the nation, so economic collapse will be the ultimate result. They will continue to use propaganda, printing presses, and half-truths to further their agenda. But those who examine the facts will come to a logical conclusion that we are being sold a great lie.

“Half the truth is often a great lie.” – Benjamin Franklin

TENNESSEE UPDATE: BANK OF AMERICA (INCONSISTENTLY) ADMITS THAT THE NOTE IS OWNED BY A THIRD PARTY AFTER TAKING THE POSITION IN LITIGATION THAT IT DID | Foreclosure Defense Nationwide

TENNESSEE UPDATE: BANK OF AMERICA (INCONSISTENTLY) ADMITS THAT THE NOTE IS OWNED BY A THIRD PARTY AFTER TAKING THE POSITION IN LITIGATION THAT IT DID |

From Foreclosure Defense Nationwide -

We previously advised on this website that in a case pending in the Tennessee Federal Court where the homeowner is represented by Jeff Barnes, Esq. and local counsel John Higgins, Esq. that Defendant Bank of America’s Motion to Dismiss the Plaintiff’s Complaint for Declaratory Relief was denied, as was a subsequent Motion by BOA for the Court to “Reconsider” its denial of BOA’s Motion to Dismiss. The Court determined that BOA had not shown that it owned the Plaintiff’s mortgage loan despite alleging that it purchased the loan in 2005. Defendant BOA took the position that it owned the loan throughout the motion stage of the litigation, with the Motion to Reconsider having been denied on September 29, 2011.
However, just over one month later on November 3, 2011, counsel for Defendant BOA admitted to Plaintiff’s counsel, in an e-mail, that “The Bank of New York Mellon, N.A. is the current holder of the Note.” There was no information, however, as to (a) when Bank of New York came into ownership of the Note; (b) by what manner, means, or vehicle BONY came into ownership of the Note; (c) under what circumstances BONY came into ownership of the Note; or (d) when BOA knew that BONY was the alleged owner of the Note.
The Plaintiff is filing a Motion to amend his Complaint to now add BONY as a Defendant. The Amended Complaint also contains a claim for unjust enrichment to the extent that any payments made to Defendant BOA by Plaintiff which were not legally entitled to be demanded or retained by BOA, and any payments which were transferred to BONY without any authority, be returned to the Plaintiff. The Court in a pending case in California (the Javaheri case) has previously determined that the Plaintiff may state such a cause of action to the extent that any payments made to a third party (who was not the original lender) under circumstances where there was no right for that third party to demand or accept payments from the homeowner gives rise to a claim for unjust enrichment.

MORE ON FRAUDULENT PRACTICES OF NEW CENTURY: MERS ASSIGNMENTS CANNOT BE EFFECTIVE AS NEW CENTURY REPUDIATED ITS CONTRACT WITH MERS AS PART OF ITS BANKRUPTCY

 Here is a recent article taken from Foreclosure Defense Nation Wide website. You can read the full article by following the link at the end of this post. 

You can see that quite possibly we are seeing the uncovering of evidence that may get the country to open its eyes to how extensive the fraud and abuse have been by the banks.  It would be nice to have banks held accountable after screwing the entire country for years and for screwing so may hard working Americans out of their retirement.  They massive fraud and abuse has been seen as acceptable by the government crooks and the banksters who work in tandem to fleece the hard working people of our country.  All of the propaganda efforts by the government to pretend they are doing something is absurd and has been more wasted tax dollars taken by the banks to line their own pockets.  
You can see the arrogance factor still in play as Chase CEO brags of how deep their pockets are to fight to allow the banks to continue to commit fraud.  This has been the trump card in the past for the TBTF banks.  They have always had the deepest pockets and could intimidate anyone in order to keep them from filing fraud charges against them. 

The world is finally starting to wake up to the massive, pervasive, nationwide fraud which has been engaged in with impunity by MERS, Deutsche Bank, Wells Fargo, Bank of America, US Bank, and their servicers and “trustees” in their never-ending quest to reap massive profits at the expense of homeowners and damn the consequences. It is no longer homeowners who are seeking relief. Attorneys General are also taking action: the Attorney General of Massachusetts has sued several of the “banksters” for fraudulent mortgage practices; the Attorney General of Delaware has sued MERS for fraudulent practices both in foreclosure and its attempt to avoid recording fees; and yesterday, the Attorneys General of California and Nevada formed a joint task force to pursue foreclosure fraud. It is no longer a situation of simply foreclosure defense: the new wave is grounded in affirmative claims against the banks and their agents for their outright fraudulent conduct all over the United States.
The good news is that the CEO of one of them, that being JPMorgan Chase CEO Jamie Dimon, has publicly announced that JPM has plenty of reserves to defend the lawsuits against it. On behalf of the Attorneys General and  private litigants who are going after JPM for its nationalized pattern of fraudulent conduct, we thank you, Jamie, for affirming that JPM is a still a collectible entity.

MORE ON FRAUDULENT PRACTICES OF NEW CENTURY: MERS ASSIGNMENTS CANNOT BE EFFECTIVE AS NEW CENTURY REPUDIATED ITS CONTRACT WITH MERS AS PART OF ITS BANKRUPTCY

LPS Foreclosure Fraud Whistleblower Found Dead (Updated) « naked capitalism

The story about the robo signing and fraud committed by banks continues to get more and more interesting.  The death of Nevada Notary Tracy Lawrence could be completely innocent and as a result of natural causes but the timing of her death has to make most reasonable people raise an eyebrow.

Here is the original article from Naked Capitalism and written by Yves Smith:  It is a great read as is the chatter to follow from other readers. 

Nevada notary Tracy Lawrence, who was due to be sentenced today to up to a year in jail for a single count of misdemeanor fraud, went missing from her sentencing hearing today and was found dead. Per the Associated Press (hat tip reader Scott):

Las Vegas police say it could be weeks before investigators know how 43-year-old Tracy Lawrence died.

Her body was found about 11:30 a.m. Monday at her Las Vegas apartment.
Police Sgt. Matt Sanford says there’s no apparent sign of foul play, and coroner toxicology tests could take up to eight weeks.
Lawrence would have faced up to a year in jail and a $2,000 fine earlier Monday for her guilty plea Nov. 17 to one criminal charge of notarizing the signature of a person not in her presence.
KSNV-TV reports ( http://bit.ly/vWSDtv) that Lawrence admitted notarizing tens of thousands of fraudulent documents as part of a wider foreclosure fraud scheme.

Reader Peter W fills in the blank (pun intended) that Lawrence’s document chicanery involved the staff of Lender Processing Services. The version of the story posted at The Fly on the Wall has as its final sentence:

Lawrence had earlier admitted to notarizing “tens of thousands of fraudulent documents” as part of a wider foreclosure fraud scheme involving employees of Lender Processing Services (LPS).

As sad as this is for Lawrence’s friend and family, the more the foot soliders of foreclosure abuses start to face real costs, meaning jail time, the harder it will become to perpetrate these sorts of frauds. That is the way the law is supposed to work, after all.
Update: Holy moley, the initial press reports omitted the key fact: it was Lawrence who turned Nevada Attorney General Catherine Cortez Masto on to two mid level LPS employees who face up to 30 years in jail each if found guilty. From MSNBC:

Lawrence came forward earlier this month and blew the whistle on the operation, in which title officers Gary Trafford, 49, of Irvine, Calif., and Geraldine Sheppard, 62, of Santa Ana, Calif. — who worked for a Florida processing company used by most major banks to process repossessions — allegedly forged signatures on tens of thousands of default notices from 2005 to 2008.
Trafford and Sheppard were charged two weeks ago with 606 counts of offering false instruments for recording, false certification on certain instruments and notarization of the signature of a person not in the presence of a notary public. You can read a .pdf version of their indictment here.

Our post on this case, which includes the indictment, is here.
Needless to say, this puts a very different complexion on things..

LPS Foreclosure Fraud Whistleblower Found Dead (Updated) « naked capitalism

Federal Judge Refuses to Dismiss Bank Break-In Case Against JP Morgan, Lender Processing Services

This story is a must read for anyone questioning validity of claims regarding fraudulent activity by the major banks.  You can see this case clearly reveals major failures by the bank do its due diligence and to not forge documents.  The case here reveals that Jp Morgan chase had broken into a woman's home what not only did not have a mortgage but had no relationship with the bank whatsoever.  How could this happen TWICE  no less?  Did the documents claiming the bank had any right to the property appear out of think air?  I don't think so!  It seems impossible to make the case that there is not rampant fraud occurring throughout the banking system if a bank can create enough legal paperwork to make a claim against a property that had no mortgage and with which the bank had no relationship with the home owner. 

There is no possible way to say it wasn't an act of fraud without some ridiculous story by the bank.  Where did the documentation even come from to foreclose on a property with no mortgage and an owner has no business with JP Morgan?  Read the full story here at Naked Capitalism



Federal Judge Refuses to Dismiss Bank Break-In Case Against JP Morgan, Lender Processing Services

Nevertheless, her attorney, Matt Weidner, is appealing this order. Why? Get this: JP Morgan had NO legal relationship to Jacobini at the time of the break ins. It has filed a robo-signed assignment of mortgage that post-dates the break-in. The practical implication is that random financial institutions are being allowed to barge into people’s properties, and the only recourse they have is a slow, costly adjudication.
Let’s hope that Jacobini succeeds in making this sort of abuse costly for JP Morgan. Hitting banks in the wallet may be the only way to get their attention.

Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

 This is what I was talking about last week in a story stating that everyone is part of the 99% even thought they felt removed from the foreclosure crisis because they are paying off their mortgage or have paid their mortgage off.  This article reveals the depth of the issues.  This case dates back to 2005 and finally the judge denied a Well's motion for summary judgement.  The bank, again showing no shame, dared to motion for summary judgement when the already admitted under oath that they didn't have the proper documents to confirm they indeed had the right to foreclose. 

Here is the problem.  100s of these situation exist across the country where the banks are making claims on property when they have no proof of ownership.  If we have a 10, 000 cases that end up the same way, the economy will a giant mess. 


This Article is from:

Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

October 4, 2011
Wells Fargo has voluntarily dismissed a foreclosure action in Iowa after the state Court Judge denied Wells Fargo’s Motion for Summary Judgment and set the case for trial. This case, which began in 2005, has been discussed several times on this website throughout its interesting history.
The homeowner, who had originally represented herself, had been told by Wells Fargo back in 2005 that Lehman Brothers was the “investor” on the loan. Notwithstanding this issue relating directly to chain of title to the note and mortgage and the ability of the servicer (WF) to foreclose, the Court granted summary judgment to WF in 2005, which it later vacated in 2010 after WF brought Lehman into the case as a party Defendant and made certain admissions as to lack of ownership of the mortgage loan. The Court was concerned as to many issues, including how WF could claim under oath in 2005 that it owned the loan but admitted in 2010 that it did not and that the Note was lost, with WF not knowing the details as to the “loss”.
WF nonetheless moved for summary judgment a second time in 2011. The homeowner asserted numerous disputed issues of material fact, including the failure of WF to file or record any Assignment pursuant to a Servicing Agreement between WF and Lehman; failure of WF to demonstrate compliance with the Seller’s Warranties in the Servicing Agreement; failure to demonstrate compliance with the Custodial Agreement; Plaintiff’s admission that it has no knowledge of the true and present owner of the Note; failure to offer any proof as to when the Note was lost; failure to identify the nature and extent of admitted interests in the Note on the part of a Lehman securitized trust; infirmities in WF’s “Affidavit” of the “Default Litigation Specialist”; and failure to satisfy Iowa Code Sec. 554.1201 (relating to proof requirements in lost note claims).
The Court issued a written opinion denying WF’s second Motion for Summary Judgment. The case was thereafter set for trial. Today, the Notice of Voluntary Dismissal was received.
The homeowner is represented by Jeff Barnes, Esq. (who was admitted pro hac vice in the case and prepared the opposition to WF’s second Motion for Summary Judgment) and local Iowa counsel Christine Sand, Esq. of the Beverly Wild Law Office.

Wake up you are in the 99%. Don't think you are in the clear unless your are an oligarch or politician

This recession is not about dead beats or people trying to milk the system.  The foreclosure crisis is not about the people wanting to get a free home either.  What it is about is the reality that  Corporate Finance, Too big to fail banks, and a bought and paid for Federal Government created a system that was set up to fail.  The politicians that now say they tried to do something to stop it from happening are lying to save their hide.  The corporate executives that are having the companies commit fraud on a daily basis in order make up for the fact that they made horrible business decision and tried to ignore hundreds of years of precedent by creating a new way to transfer legal title in a real estate transaction.  By the way the did this just because they thought they could get away with it and it would save the banks a lot of money along with screw the local governments out of billions of dollars in transfer fees and taxes that they were due.   

This recession isn’t about people being lazy and not wanting to work.  This recession is about highly intelligent, hard working, and dedicated Americans who embraced the entrepreneurial spirit in the country and relied on themselves because of the long held belief that the United States of America was a country of the people.  They found out a long the way that it didn’t matter if you were in the safest investments because the oligarchs were on a mission to transfer whatever wealth the middle class had amassed over the past 40 years back to the coffers of Wall Street, corrupt politicians and corporate executives. 

This recession is about people losing everything.  Yes everything.  The most vulnerable are often the entrepreneurs who had taken so many risks to succeed and to help grow the economy.  They are now living in an environment that has little opportunity to grow a business that was related to their life long passion. 

What about those who started in their 20s and spent 20 years working to build a thriving business only to have to crushed by this “recession”?  How to you expect them to recreated 20 years of dedication into a living in a new business over night?  How?  These people don’t get unemployment, most will lose their health insurance as their business declines and many will lose their homes where they raised their children or care for a sick parent. 

This translates into a huge emotional toll that goes unnoticed by the media and the Federal Government and it is seen in increased suicide rates as well as spiking numbers in child abuse cases.  If that is not bad enough for people to take notice it also has been well documented that during these extremely stressful times people are more prone to sickness and stress related illnesses.  Those who have lost insurance also tend to not go to the doctor soon enough when they become ill.  This waiting period then makes it more difficult to regain health as rapidly because they are in much worse condition by the time the do see the doctor. 

Anyone who is not in the extremely wealthy 1% of the country that is influencing government policy and pillaging the country should consider themselves part of the 99% that is getting screwed.  You also need to get prepared because if you haven’t suffered yet yours is on the way.  If we are not a bit lucky we might be seeing 6500 on the Dow Jones Industrial Average by the next election. 

Anyone who thinks the title issues that have been created by banks regarding home loans, proof of home ownership by not securitizing mortgages properly will not be their problem needs to evaluate the situation one more time.  If you own a home, buy a home or are selling a home then this issue IS YOUR PROBLEM.  It won’t matter if you are paying your mortgage or not because as it is now those with enough influence, power and money can persuade a judge that they own your property.  They may have to commit fraud to do so but they have been doing for the past 3 years with no repercussions at all.  Even when the judges have found fraud to be committed no one has been held accountable.  People who have their homes paid in full have gotten repossession notices and had to fight to keep their home when the banks claimed they had a right to it. 

You are in the 99% and if you don’t pay attention you are going find out you are in the 99% when it is too late.  How much of your life savings are you going to want to spend defending yourself against fraudulent claims of the bank? 

I am sure that will not go over too well but people are standing by as it is happening across the country.  Many Americans have bought into the Oligarchs lies claiming that the crisis was caused by greedy homeowners or people buying a home they could not afford.  People need to wake up.  No one bought a home that wasn’t appraised by the bank for proper value, nor did they buy a home that they did not go through a qualifying process, whether it was a no documentation loan or a full doc loan.  People could not just show up at the bank and say give me a loan.  Even no doc loans check over a person’s assets, bank account balances, bank statements and tax returns.  No bought a home that was out of their price rage according to the lender or they wouldn’t have qualified.  If they did get qualified for a home they couldn’t afford then it should be the banks responsibility for giving the people the loan that is stuck on a home that is work 50 % less that the original mortgage.  Why is the lender the victim?  The banks created the system with the government blessing. They failed to properly maintain chain of title and then the fraudulently begin taking back homes after the government mad sure they would stay in business.  Wake up people because you are in the 99%.  This affects everyone and if you are not smart enough to notice the when you are getting used by the government and oligarchs you need to get prepared for a big surprise ahead. 
Here is a quote from an article by Janet Tavakoli read the entire article HERE

Countrywide Broke the Law"It would be easy to turn away from this and blame the borrowers. Some of the borrowers were absentee landlords who knew what they were doing. Some borrowers overreached. But in many cases, people were victimized by predatory lenders. For example, a complaint of alleged fraud against Goldman Sachs, includes allegations of fraudulent practices by Countrywide, now owned by Bank of America. A former Countrywide employee stated that approximately 90% of all "liars' loans, loans that allowed reduced documentation about borrowers' income and assets, sold out of a Chicago office had inflated incomes. 
The borrowers weren't inflating the income. Countrywide routinely doubled the amount of the potential borrower's income to qualify borrowers for loans they couldn't afford so that Countrywide and its mortgage brokers could continue to earn fees and commissions. Prior to a settlement in which Countrywide paid a paltry $8 billion--the damage done is much greater-- to eleven states, Illinois Attorney General Lisa Madigan stated: "Countrywide broke the law, homeowners did not."

The article ends with the following paragraph:

"Despite evidence of widespread interconnected mortgage lending, securitization, and foreclosure wrong-doing and fraud, there are no meaningful felony indictments of senior executives at mortgage lenders or of senior executives of banks bailed out by taxpayers." 

Your 401 k will be history and your insurance that you have now will cover less and less and by the time you retire you will be waiting in line for low cost care that you still have to pay for just like everyone else. 

It is time for the 99% to wake up, stand up and take back the country if it is not already too late.  

Who owns the note?

Who owns the Note?  From the Florida Bar News 
http://www.floridabar.org/

John Adams, as a new lawyer, was very nervous when he tried his first case in court, according to biographer David McCullough.

The future second president of the United States was representing a man whose crops were damaged when a neighbor’s horses broke through a fence.

He lost the case because, in preparing the necessary writ, Adams omitted the required words “the county in the direction to the constables of Braintree.” (Or perhaps that technicality was important because his opposing counsel was the son of the judge.)

There’s an echo of Adams’ woes resounding in mortgage foreclosures and the scandals surrounding faulty paperwork filed in Florida and around the country by lenders and those servicing mortgages.

Questions raised include: How widespread is the problem with “robosigned” documents, that is, foreclosure paperwork signed by people who aren’t familiar with the cases and who haven’t personally verified the information is correct? Or problems with improper notarization of foreclosure documents, with improper service, or with missing mortgage assignments, or in some cases outright forged documents?

What’s the Significance?
Beyond that, are the problems with the documents significant? Are they just technical and don’t affect the underlying failure of the borrower to repay the lender? Is a missing assignment as mortgage notes change hands more or less significant than a robosigned affidavit? Are paperwork snafus significant challenges to the functioning of the legal system that also carry implications on the trustworthiness of the title of foreclosed property?

The answers may well affect the ability of Florida courts to handle nearly 400,000 pending cases. Florida’s court funding is also heavily dependent on forclosure filing fees. The slowdown in filings following the revelations a year ago of paperwork problems turned a surplus in court funding into a deficit and forced the courts to borrow money to finish the last fiscal year and begin the current one.

For the moment, title insurers, key to a functioning real estate market, say they are still underwriting titles for foreclosed properties sold by banks (but not if the banks retain the title). That’s because of Florida case law and what they see as due process protections in the foreclosure process that give foreclosed property owners a chance to challenge.

Boca Raton’s Margery Golant, who defends homeowners in foreclosure actions, said she thinks robosigning is nearly universal in foreclosure paperwork.

“Most of these cases are not litigated. Those that are, the plaintiffs fight tooth and claw to avoid discovery,” Golant said. “They don’t want to explain themselves, and when they do have to explain themselves, they can’t.”

“If you know what you’re looking for, you can find the fraud on the face of the document. It’s systemic,” said April Charney, a Jacksonville Area Legal Aid attorney and acknowledged expert on foreclosure defense. “It’s like paperwork HIV; everyone has the same virus because it was so systemic.”

She said the problem extends beyond foreclosures into the paperwork of most mortgages in recent years, because they were handled the same way to get them ready to be bundled and sold as mortgage-backed securities.

“It’s likely in any residential mortgage loan where there has been some transfer from the originating lender. Then you almost definitely have fraudulent paperwork in the chain of title on that loan,” she said.


READ the REST HERE ON WHO OWNS THE NOTE 

Corrupt White House? Surprise Surprise

It is of little surprise that the Obama administration is taking sides with the bank in order to wash away all the sins committed in the mortgage fraud scandal.  Yves Smith called the Obama Administration "corrupt" today on her blog Naked Capitalism.  I agree with her 100% but I would add a question to her statement. 
Who isn't corrupt in Washington or in any branch of the state governments today?  I think getting into power either bring out the criminal in all those who are elected or it corrupts even the honest people.  I don't know the answer but there is no shortage of criminals in government today. 
What we have seen in the past few years has been a travesty.  The freedom to life, work and prosper in the United States of America has been pillage by the politicians who are in bed with the banks.  It is a disgusting time in politics for everyone and we will see that nothing will change the way of politics.  The new parties will bet  the same as the old parties and the gap between the haves and the have nots will continue to widen until we are living in a world of rich and poor. 
Those who have sought bower have taken it with the intention of confiscating as much of it as necessary to make the country fall apart.  It blows me away that people are not more outraged at what has happened to our financial system.  We have witnessed the most brazen and egregious transfer of wealth in the history of the world and our PRESIDENT, thinks it is OK.  He is not in jeopardy of ever having to work for a living and his book deals made him an instant millionaire after doing absolutely nothing extraordinary in micro biologyhis life until he become president.  Of course it is now clear that he was no more qualified to be president than a college student studying micro biology.  

The fat cats on Wall Street and the politicians have rolled a giant snowball to the side of the hill and it is ready to go over the edge.  Once it starts it will be too late for anything to be done.  This wrecking ball will get bigger and bigger until it is unstoppable.  The banks will have re-written the books on how to get away with the crime of the century and the biggest chapter will be on properly screwing as many citizens as you can because the government elites will always go where they think the money for their next election will be most abundant.  Of course that is with the to big to fail banks and the Washington power brokers. 

What have we been hearing the past 4 years or so?   That therecession is contained, it is over, we are growing again, jobs are picking up, the economy is coming back, never count out the American economy etc etc....
what has happened?  Banks have held the country hostage waiting for the government to give them another get out of jail free card for their hand in the mortgage crisis.  The government is giving free money to the banks so they can sit on all of their capital and make millions of dollars risk free by investing in treasury bonds.   They pay O percent to the government so any return they get is complete profit.  We are stuck with putting money in  savings or checking account to ensure liquidity.   It is a stroke of luck if we make 2% on either account and of course real estate is still declining and the stock market is again becoming an elitist game that is dictated by high frequency trading as the removal of the uptick law has taken stock trading off the list of jobs were the common man could make it big in America.  Now that real estate is gone from that list there isn't much left for the individual. Real estate and stocks were available to everyone even if they had very little money to start.  Now they are off the table which leaves anyone who want to create a wealthy lifestyle searching for a starting place. 





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Banks still using Robo signers and fraudulent tactics

 Naked Capitalism highlighted how the banks are continuing to use robo signers and perjuring themselves repeatedly, even after their propaganda campaigns saying they are dedicated to doing everything by the book. 
Read the Full Article here at Naked Capitalism

Two stories were published yesterday, one a long form Reuters investigation (hat tip April Charney), the other a shorter report by AP (hat tip Lisa Epstein and Daniel Pennell). First from Reuters:

Reuters has found that some of the biggest U.S. banks and other “loan servicers” continue to file questionable foreclosure documents with courts and county clerks. They are using tactics that late last year triggered an outcry, multiple investigations and temporary moratoriums on foreclosures.

In recent months, servicers have filed thousands of documents that appear to have been fabricated or improperly altered, or have sworn to false facts.

Reuters also identified at least six “robosigners,” individuals who in recent months have each signed thousands of mortgage assignments — legal documents which pinpoint ownership of a property. These same individuals have been identified — in depositions, court testimony or court rulings — as previously having signed vast numbers of foreclosure documents that they never read or checked.

 So the reality again is put in front of us and no one seems to care in the federal government or the administration.  The banks are back up to their old tricks again and they are getting away with perjury and fraud.  How could anyone think that they were going to clean up the industry over night as they claimed they were doing when foreclosures where briefly halted.  The banks have ruined the housing market and wiped out years of hard work and dedications of millions of Americans. 

One would think that would be bad enough and since they had been caught red handed they would start to play by the rules.  However, since regulators and the government are failing Americans the banks are just back to their old tricks.

Remarkably, the head of the industry lobbying group admits this is happening and offers a weak defense:

One of the industry ’s top representatives admits that the federal settlements haven’t put a stop to questionable practices.
Some loan servicers “continue to cut corners,” said David Stevens, president of the Mortgage Bankers Association. Nearly all borrowers facing foreclosure are delinquent, he said, but “the real question is whether the servicer complied with all legal requirements.” The loss of a home is “the
most critical time in a family’s life,” and if foreclosure paperwork is faulty homeowners should contest it. “Families should be using every opportunity they can to protect their rights.”

This commentary is an interesting shift in stance. The MBA chief still tries to justify the abuse of legal procedures and contractual requirements as “cutting corners” against people who are really undeserving (they were delinquent anyhow, right?). The problem, which does not get the press it deserves, is that many foreclosures are servicer driven. One or two late payments (and they may not even have been late; servicers have been found to hold checks to make them late or simply be dilatory about processing payments) can quickly compound into a foreclosure due to impermissible but nevertheless common misapplication of payments and junk fees. Borrower attorneys as of last year estimated that 50% to 70% of the parties that fought foreclosures were victims of servicer fee abuses (the problem is it is very costly to contest foreclosures on that basis; it’s generally easier to go after standing). Yet for the MBA to concede that borrowers should fight foreclosures if the mortgage transfers were botched is a major change in posture.
The Reuters report begs an additional question: why has no Federal regulator done the sort of review the journalists undertook? As they describe it:

Reuters reviewed records of individual county clerk offices in five states -– Florida, Massachusetts, New York, and North and South Carolina -– with searchable online databases. Reuters also examined hundreds of documents from court case files, some obtained online and others provided by attorneys.
The searches found more than 1,000mortgage assignments that for multiple reasons appear questionable: promissory notes missing required endorsements or bearing faulty ones; and “complaints” (the legal documents that launch foreclosure suits) that appear to contain multiple incorrect facts.

By contrast, 11 Federal agencies, which have vastly greater access to bank records, were satisfied to look at a mere 2800 loan files, only roughly 100 of which were foreclosures. Predictably the review found pretty much no foreclosures to be unwarranted. This wasn’t merely a dereliction of duty; it was a cover-up.

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Washington Mutual/ Chase Bank attempting more acts of fraud

Here is an excellent article from Foreclosure Defense NationWide that gets to the heart of the issue regarding certain that are evidence of bank fraud.  This article specifically deals with the Washington Mutual/Chase take over.  Chase is acting as is the successor to all the WaMU loans but the court in California denied this claim based on president set in an east coast case.  It appears banks are willing to push the envelope as long and as far as possible until the court orders them to stop. 

These such cases could not provide more evidence of bank fraud and bank willingness to manipulate the system to their benefit.  Otherwise we have to assume that the highly esteemed and highly paid lawyers working for the bank have little knowledge of the law.  It is ridiculous to think that so many highly paid lawyers would not know that banks are committing such acts that are outside the boundaries of the law.  It seems like this should be pasted on the front page of every mainstream media outlet in the country.   More evidence of the MSM biased for the corporatacracy. 

June 22, 2011

In an 11-page Order dated June 2, 2011, the United States District Court for the Central District of California has denied JPMorgan Chase Bank’s Motions to dismiss a borrower’s claims for violations of CA Civ. Code 2923.5, Wrongful Foreclosure, Quiet Title, Quasi Contract, Declaratory Relief, and Injunctive Relief in the matter of Javaheri v. JPMorgan Chase Bank, Case No. CV10-08185 ODW. The decision cites case law from the United States Supreme Court, the United States Court of Appeals for the 9th Circuit, and California state courts.

The borrower filed a Second Amended Complaint for numerous causes of action including those identified above. The loan had been originated by Washington Mutual Bank (WaMu), with the loan thereafter being securitized. JPM relied upon the Purchase and Assumption Agreement between JPM and the FDIC as Receiver for WaMu, contending that it had succeeded to all of WaMu’s assets, including the borrower’s note. (Significantly, and although not mentioned in the Javaheri Order, JPM has affirmatively represented to the United States District Court for the District of Columbia in separate Federal litigation that it is NOT the “successor in interest” to WaMu, and that it only purchased certain assets of WaMu from the FDIC.)

The borrower claimed that between November 13 and 30, 2007, WaMu transferred his Note to Washington Mutual Mortgage Securities Corporation and that the Note was sold to an investment trust and became part of a loan pool, PSA, CDO, mortgage-backed security or pass-through certificate, credit default swap, investment trust, and/or a special purpose vehicle. The loan was identified with a CUSIP number and the pool number. The court found that “Coupled with Plaintiff’s allegation that JPMorgan never properly recorded its claim of ownership in the subject property, the above mentioned facts regarding the transfer of Plaintiff’s Note prior to JPMorgan’s acquisition of WaMu’s assets raise Plaintiff’s right to relief above a speculative level”, warranting denial of JPM’s Motions to Dismiss as to the claims set forth above.

One of the more interesting theories raised was the “Quasi Contract” claim, where the borrower alleged that JPM was unjustly enriched by any payments made by the borrower to JPM which were not paid to the lender or beneficiary. The Court concluded, for purposes of pleading, that “if indeed JPMorgan did not own the Note yet received payments therefrom, those payments may have been received unjustly”. We believe that if in fact JPM fraudulently represented to the borrower that it did own or have rights to collect monies under the Note when in fact it did not, this would support a fraud-based claim as well.

The Court specifically found that “in the face of these specific factual allegations (by the borrower as to the securitization of the loan) JPMorgan’s assertion that the P&A Agreement suffices to establish their ownership of the Note is no longer viable. Indeed, the P&A Agreement does not specifically identify Plaintiff’s Note.”

That quote exemplifies a central issue we have been confronted with in the numerous Chase/WaMu cases we have in litigation in various states: Chase claims to be the “successor in interest” to WaMu by virtue of its “acquisition” of the “assets” of WaMu, when in fact no such wholesale “acquisition” of mortgage loans across the board ever occurred, as evidenced in Javaheri and in the Federal litigation in the District of Columbia. Honestly, does JPM think that it can get away with taking one position in its contract and in “East Coast” Federal litigation and take a completely contradictory position in California Federal court?

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Critical Mers Decision in Michigan

Another monster decision in Michigan effecting MERS and the transfer of mortgages into Trusts.  It has been discussed that the banks were failing to abide by the Pooling Service Agreements for transferring loans into trusts for securitization.  The Michigan ruling clearly states that if the banks have not complied with the terms of the PSA then the loan has never been properly transferred into the trust. 

Why is this such a huge issue?  It involves the complete disregard the banks have had for proper chain of title for transfer of real estate.  It calls into question any authority that MERS claims to have and it calls into question the fraudulent attempts to create documents showing proper paperwork months and even years after the PSA agreement time lines had not been met. 

For those of you still crying that people just want a free house, get your head out of your... or just open your eyes to the facts.  This is the foundation of the mortgage crisis.  The banks knew they were doing questionable things to profit as much as possible.  As soon as the house of cards started to crumble they locked their doors and came begging to the government for a bailout. 
Even after the bailout banks didn't trust each other because they knew they had not followed the PSA stipulations and that they could complete freeze the economy by holding congress hostage.  The banks created this crisis and have perpetuated with more and more lies. 
They still will not come clean and do what they could to get the housing market moving.  They have taken billions from the government and have continued to deny any responsibility for decimating the economy. 
People are not looking for a free home.  But if the banks had not committed the egregious acts of fraud for years with no repercussions we would not have had a housing crisis.  The crisis can not be handled by the banks and it is clear the banks are running and hiding because they know this could get much worse for them.  There is no way to speed up the process to get through this unless the banks begin to make prudent business decisions to reduce principal and restructure loans.  They have milked the country out of everything and the government has played into their hands.  Banks are profiting from free money from the government that was meant to be used to aid in housing recovery but the banks have continued to invest in Treasuries to collect interest on the money they are getting at 0%. 

People would be wise to wake up and realize that banks can go on in this fashion forever.  As long as the congress is afraid to act on the truth and the Federal Reserve is willing to float banks free money, and Tim Geithner keeps acting as a tool for the banks, we will sit as we are and there will be no recovery. 

The Right is no better than the Left.  We can see that nothing has happened since the influx of new blood into congress.  They all are more concerned with re election than any thing else.  The banks and their lobbyist are always at the tip of the spear influencing congress.  We are all being sold down the river by our elected government.  Anyone supporting Obama as president for the people needs to own up to the reality that you have all been duped.  Just because he is a minority doesn't mean he represents the people.  This all should be clear just by looking at who he has turned to for help during the financial crisis.  Who?  Just about every single person who had a hand in creating the crisis and wiping out the fortunes of many hard working Americans. 

The problem now is growing and the longer the banks are let off the hook the deeper the crisis.  There is no one in the next election that will do the right thing and do something to re create trust within the economic system.  No one will have the fortitude to take on the money centers.  The corporations that are called banks are quasi government entities that have taken over the government.  They have either bought off or brainwashed every one in Washington. 

The Michigan case once again proves the banks have committed fraud repeatedly.  So far they have all gotten away with it and until everyone stops their self righteous behavior, and realizes that everyone who has ever had a mortgage is at risk.   If the banks are capable of wiping out years of proper chain of title evidence just because they don't want to pay fees and transfer costs, it effects ownership everywhere. 

If you can't see the truth to this then you are missing the point.  If you value the country as much as your own current state of affairs, you will see that the fabric of the country is in jeopardy. 

Read more on the Michigan case Here at Naked Capitalism
and HERE at 4closurefraud


From 4closure Fraud


“Failure to strictly comply with the terms of the PSA means that the loan at issue was never properly transferred to the trust”

Defendants’ failure to strictly comply with the terms of the PSA means that the loan at issue was never properly transferred to the trust. Any transfer of mortgage loans, such as Plaintiffs, was mandated to comply with New York Trust law and the terms and conditions of the PSA governing conveyance of mortgage loans into the Trust. PSA pp 155 and 36. This the Defendants did not do.

The Court finds that the “Assignment”, recorded on December 30, 2009 in the Washtenaw County Register of Deeds, serves to transfer nothing. The alleged conveyance failed to comply with the terms and conditions of the PSA and New York Trust law which governs the PSA. The alleged conveyance stated that MERS assigned the Mortgage and Promissory Note to USB, however, there has been no evidence presented to support the chain of the required assignments and endorsements of the mortgage and note as required by the terms and conditions of the PSA.

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Larry Platt, Prominent Securitization Lawyer, Made False Statements About BofA Mortgage Transfers « naked capitalism

Here is a follow up article regarding story in Fortune regarding the cover up by the big banks and some of there representatives who have recently been caught in several different lies. 

From Yves Smith at Naked Capitalism (yves is the authority on the housing crisis and how corruption on wall street and within the major banks have screwed the american public)

Among other things, its shows prominent securitization attorney Larry Platt, who accused judges who interfered with the imperial rights of banks to foreclose of engaging in an “assault on the legal system,” to be a liar. Funny how that type is eager to try to say everyone else is engaged in bad conduct.




Contrast Platt’s statements with Field’s findings:

 

To check DeMartini’s testimony, Fortune examined the foreclosures filed in two New York counties (Westchester and the Bronx) between 2006 and 2010. There were 130 cases where the Bank of New York (BK) was foreclosing on behalf of a Countrywide mortgage-backed security. In 104 of those cases, the loan was originally made by Countrywide; the other 26 were made by other banks and sold to Countrywide for securitization.



None of the 104 Countrywide loans were endorsed by Countrywide – they included only the original borrower’s signature. Two-thirds of the loans made by other banks also lacked bank endorsements. The other third were endorsed either directly on the note or on an allonge, or a rider, accompanying the note.



The lack of Countrywide endorsements, combined with the bank’s representation to the court that these documents are accurate copies of the original notes, calls into question the securitization of these loans, as well as Bank of New York’s right, as trustee, to foreclose on them. These notes ostensibly belong to over 100 different Countrywide securities and worse, they were originally made as long ago as 2002. If the lack of endorsement on these notes is typical — and 104 out of 104 suggests it is — the problem occurs across Countrywide securities and for loans that pre-date the peak-bubble mortgage frenzy.



In other words, DeMartini and the supposedly incompetent were truthful, and the damage control team, including outside counsel, lied. I wonder, given the dive that Bank of America stock has taken, whether Bank of Americas’ misstatements on this topic constitute securities fraud. If so, Platt has not only enabled but participated in it directly.



The reason I am harping on this is the American Securitization Forum, SNR Denton, K&L Gates and others went on a full bore campaign to defend their meal tickets last fall, and their rearguard action is looking increasingly to be an utter fabrication. Yet the media took up their line because they were large recognized players. What is offensive is not only is Platt not about to suffer any reputational consequences, but small firm attorneys like Nick Wooten who are targeting banking industry malfeasance get hit with frivolous sanctions motions and industry mouthpieces like Housing Wire trumpet them as if they are serious.



Yes, Virginia, we have a two tier system of justice in this country. And we need to understand all its ugly manifestations if we are to have any hope of rooting it out.

 

Larry Platt, Prominent Securitization Lawyer, Made False Statements About BofA Mortgage Transfers « naked capitalism

Fortune Confirms Pervasive Defects in Bank of America Mortgage Documents « naked capitalism#comment-404611#comment-404611#comment-404611

This story as found on Naked Capitalism is a must read for anyone who has interest is seeing just how big the mortgage securitization and foreclosure crisis has grown. It appears that the banks and the courts, along with their lawyers, have been in on a scam that has drastic consequences for the banks as well as homeowners. The reality that CountryWide never followed the pooling and servicing agreements can no longer be hidden. The article from Fortune points out that CountryWide was batting 1ooo for following the proper steps to securitize mortgages for many years. It baffles the mind to think anyone could just say well their is an implied write inherent for B of A to foreclose on property that they actually have no real ownership. The effect of the wrongly repossessing property could effect title chaings for decades. Also if the banks would have been held accountable in the beginning of the foreclosure mess, it is likely that the housing meltdown would have been much less severe. The major issue that the banks were allowed to proceed illegally and long enough to ruin the housing industry. Now there is no recovery. The banks are in possesion of millions of properties yet to hit the market and furthermore could have been taken back illegally or without merit.

Read on:

Do you remember the brouhaha over testimony by a senior executive in Countrywide’s mortgage servicing unit last year? It called into question whether mortgages had been conveyed properly to securitizations, which in turn would impair Bank of America’s ability to foreclose.




Let me refresh your memory. As we wrote last year:



Testimony in a New Jersey bankruptcy court case provides proof of the scenario we’ve depicted on this blog since September, namely, that subprime originators, starting sometime in the 2004-2005 timeframe, if not earlier, stopped conveying note (the borrower IOU) to mortgage securitization trust as stipulated in the pooling and servicing agreement….



As we indicated back in September, it appeared that Countrywide, and likely many other subprime orignators quit conveying the notes to the securitization trusts sometime in the 2004-2005 time frame. Yet bizarrely, they did not change the pooling and servicing agreements to reflect what appears to be a change in industry practice. Our evidence of this change was strictly anecdotal; this bankruptcy court filing, posted at StopForeclosureFraud provides the first bit of concrete proof. The key section:



As to the location of the note, Ms. DeMartini testified that to her knowledge, the original note never left the possession of Countrywide, and that the original note appears to have been transferred to Countrywide’s foreclosure unit, as evidenced by internal FedEx tracking numbers. She also confirmed that the new allonge had not been attached or otherwise affIXed to the note. She testified further that it was customary for Countrywide to maintain possession of the original note and related loan documents.

Countrywide tried, in a thoroughly unconvincing manner, to retreat from the damaging testimony.

Abigail Field, an attorney who has regularly written on the mortgage mess at Daily Finance, published an article at Fortune that looks into whether DeMartini was simply being truthful and the notes were not conveyed correctly, which would mean Bank of America has a very big mess on its hands. Her conclusions are damning :

Fortune has examined dozens of court records that corroborate the employee’s testimony. And if Countrywide’s mortgage securitizations systematically failed as it appears they did, Bank of America’s potential liability dwarfs its shareholder equity, as the Congressional Oversight Panel points out…..



DeMartini….testified that Countrywide didn’t deliver the notes to the securitization trustee, and that Countrywide notes weren’t endorsed except on a case-by-case basis generally long after securitization ostensibly occurred. Both steps are required, in one form or another, under all securitization contracts.



Only the delivery issue was really scrutinized at the time, because without a doubt the failure to deliver the notes would invalidate the securitization. The other issue, failure to endorse the notes, sparked a debate: the American Securitization Forum argues the notes would still have been securitized without endorsement, while Adam Levitin, associate professor of law at Georgetown Law, convincingly argues that they would not have been…



Although law enforcement should be able to answer the delivery question easily — DeMartini indicated that Bank of America has FedEx tracking records for each note — it’s impossible for the public to check. But the endorsement of notes is easy to test. In every foreclosure, the bank must give the court the note or an accurate copy of it. And those notes are either properly endorsed or they’re not.

To check DeMartini’s testimony, Fortune examined the foreclosures filed in two New York counties (Westchester and the Bronx) between 2006 and 2010. There were 130 cases where the Bank of New York (BK) was foreclosing on behalf of a Countrywide mortgage-backed security. In 104 of those cases, the loan was originally made by Countrywide; the other 26 were made by other banks and sold to Countrywide for securitization.

None of the 104 Countrywide loans were endorsed by Countrywide – they included only the original borrower’s signature. Two-thirds of the loans made by other banks also lacked bank endorsements. The other third were endorsed either directly on the note or on an allonge, or a rider, accompanying the note. (Emphasis Added by FRR)

The lack of Countrywide endorsements, combined with the bank’s representation to the court that these documents are accurate copies of the original notes, calls into question the securitization of these loans, as well as Bank of New York’s right, as trustee, to foreclose on them. These notes ostensibly belong to over 100 different Countrywide securities and worse, they were originally made as long ago as 2002. If the lack of endorsement on these notes is typical — and 104 out of 104 suggests it is — the problem occurs across Countrywide securities and for loans that pre-date the peak-bubble mortgage frenzy.



This is about as bad as it could get, and confirms what we reported last year, that the failure to convey the note was pervasive, if not endemic. We wrote last September, prior to the DeMartini testimony:



We provided a report that suggests all the notes from Countrywide deals are still with Countrywide, even though it securitized 96% of the mortgages it originated. We got even stronger confirmation over the weekend.



One of my colleagues had a long conversation with the CEO of a major subprime lender that was later acquired by a larger bank that was a major residential mortgage player. This buddy went through his explanation of why he thought mortgage trusts were in trouble if more people wised up to how they had messed up with making sure they got the note. The former CEO was initially resistant, arguing that they had gotten opinions from top law firms. My contact was very familiar with those opinions, and told him how qualified they were, and did not cover the little problem of not complying with the terms of the pooling and servicing agreement. He also rebutted other objections of the CEO. They guy then laughed nervously and said, “Well, if you’re right, we’re fucked. We never transferred the paper. No one in the industry transferred the paper.”



And although the sample of non-Countrywide-originated notes in the Fortune study is small, the widespread use of allonges is a tell (an allonge is a separate piece of paper, which is supposed to be very firmly attached to the original note, to allow for more signatures to be added). They were simply unheard of prior to the mortgage meltdown and have this funny way of appearing and solving all the problems with the note conveyance. Quite a few have visible signs of being forgeries (signatures that are pixtillated and shrunk to fit when notes are required to have wet ink signatures).



So sports fans, this is looking to be as bad as it could be. As we said, the only reason for attorneys to be engaging in widespread document fabrications and forgeries was if they have a very bad fact set on their hands. Perversely, things have to get worse before they get better. The mortgage securitization system, which could have operated well if the industry had not gotten greedy and violated its own procedures, is hopelessly broken. The industry has engaged in a massive PR campaign to deny that fact but too much contrary information keeps coming forward. We can only hope that enough judges have become skeptical of banks to give the documentation a real look. Only when we admit the depth of failure can we have a chance of addressing the mortgage crisis and reconstituting our system of transferring residential real estate.

Fortune Confirms Pervasive Defects in Bank of America Mortgage Documents « naked capitalism#comment-404611#comment-404611#comment-404611

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