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.

The ASF is not above rewriting history to side with Banks in Foreclosure Fraud Quagmire

We heard recently in testimony by the American Securitization Forum that they believed insignificant the fact that the Pooling Service Agreements were not followed by the banks and mortgage houses.  There has been plenty of evidence to stating the banks have  did not meet their obligations to the trust, but that appeared to have little influence on testimony by the ASF executive director Tom Deustch.
See Kemp vs. Countrywide for more on the chain of title issues. 

"The ASF position was, effectively, to ignore the requirements of the PSA and argue that the transfers were valid under the Uniform Commercial Code. The wee problem with that position is that Article 1 of the UCC allows parties to contract out of the UCC and opt for different conveyance methods, which clearly was the case here. And the other major leg of their argument was that the mortgage (the lien) follows the note (which as we have said repeatedly, is the case in 45 of 50 states). Therefore, they concluded, if the trustee had possession of the note, it could foreclose." from Naked capitalism Dec 2, 2010

The testimony from ASF seemed to be falling on deaf ears.  Even though they are completely in the tank for the banks, there seems to be mounting resistance pushing back against the bank foreclosure steam roller as evidenced here.

" Judge F. Dana Winslow of New York in testimony before the House Judiciary Committee described how there is substantial uncertainty and widespread problems with title, standing, ownership, not to mention bad affidavits and improper service, in foreclosures. And many of his remarks directly contradict what Deutsch asserted the day prior. " naked capitalism December 3, 2010"

This story is not over.  It has the potential to be a long and ugly affair as the US economy struggles.  It will be difficult to see a turn around without a reasonable resolution to the banks PSA violations.

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