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

BANK OF AMERICA’S “MOTION TO RECONSIDER” ORDER DENYING ITS MOTION TO DISMISS DENIED IN TENNESSEE FEDERAL COURT; SUMMARY JUDGMENT DEFEATED IN HAWAI’I | Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

From Foreclosure Defense Nationwide Bank of America still trying!
September 30, 2011
A Tennessee Federal Judge has issued an Order denying Defendant Bank of America’s “Motion to Reconsider” the Court’s prior Order which denied B of A’s Motion to Dismiss the homeowner’s Complaint for declaratory relief. The homeowner had originally sued B of A in state court claiming that B of A had no interest in either the Note or the Deed of Trust. B of A removed the case to Federal Court and filed a Motion to Dismiss, which the Court denied upon finding that the Court could not find, as a matter of law, whether B of A had legal or equitable rights in either the Note or the Deed of Trust, and could not do so on a Motion to Dismiss.
B of A filed a “Motion to Reconsider”, citing hearsay material about “public knowledge” of B of A’s acquisition of Countrywide, etc., and essentially re-argued the same matters in its Motion to Dismiss. The “Motion to Reconsider” was not grounded upon any of the factors cited in case law set forth by B of A within its own Motion. The Court denied the “Motion to Reconsider”, setting forth its reasoning from its prior Order. Apparently, B of A did not understand the Court the first time.
The homeowner is represented by Jeff Barnes, Esq. and local Tennessee counsel John Higgins, Esq. Mr. Barnes is admitted pro hac vice in the case and researched and prepared both the Response to the Motion to Dismiss and the Response to the “Motion to Reconsider”.
Separately, FDN Maui, Hawai’i counsel James Fosbinder, Esq. has successfully opposed a Motion for Summary Judgment filed by the bank against the homeowner. The same Court has jurisdiction over this case and another case where Mr. Fosbinder represents the homeowner. At a hearing last Friday, the Court cautioned the bank’s counsel in the second case that the issues ”are the same issues” as in the case where the Court already denied the bank’s summary judgment motion.
BANK OF AMERICA’S “MOTION TO RECONSIDER” ORDER DENYING ITS MOTION TO DISMISS DENIED IN TENNESSEE FEDERAL COURT; SUMMARY JUDGMENT DEFEATED IN HAWAI’I | Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

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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Fraud being uncovered in some states regarding foreclosures and big banks

  from FDN web site

This month, FDN attorneys have been successful in both Oregon and New Jersey in compelling, by court Order and over objection of the “bank’s” attorneys, the production of PSAs, trust formation documents, trust prospectuses, and documents as to the alleged authority of MERS. FDN attorneys Jeff Barnes, Esq. and Philip Anderson, Esq. in Oregon, and Jeff Barnes, Esq. and Michael Jacobson, Esq. in New Jersey, have obtained court rulings compelling this critical discovery. In other cases where Mr. Barnes was able to obtain this discovery by court order, it has been revealed that the purported assignment to a trust years after the trust closed violated the very requirements of Mortgage Loan Conveyance provisions of the PSA. Thus and in conformity with Weisband, the loan never made it into the trust. The resultant lack of standing, lack of chain of title, and lack of real party in interest issues are scheduled to be argued by Mr. Barnes before various courts in February, and a trustee in a bankruptcy case in Mississippi has filed an adversary proceeding based on evidence that the purported assignment of the loan, which was done years after the trust closed, was ineffective as it violated the restrictions of the PSA.










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Judges allowing foreclosures without verification of ownership by the banks

Everyday we are seeing more and more stories about how the banks are just rolling along with the foreclosures with little regard for the law.  They are often getting away with improper filings because most homeowners do not have show up in court.  This could be for financial reason or many other things but it gives the banks the upper hand. 

One way to have your rights trampled is to not show up in court. Judges have little patients for cases where only one of the parties is there. The banks take advantage of this everyday. If no one is there to represent the homeowner the judge is not going to do anything but rubber stamp the bank request. They won't even give the file a second look.
The case may be changing in some areas as Yves mentioned but the vast majority of cases where the defendant fails to appear are wins for the bank. It won't matter if they have the right to foreclose or not.
The judges I have seen have had large or fragile egos of course and consider their time extremely valuable. It always seemed to me that the judges considered no shows as disrespectful to the judge and the court.
ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism
I don't think there is a solution that will help homeowners other than the judges being skeptical of the banks. I don't anticipate a great number of judges bending over backwards to stand up for homeowners that fail to appear.
Yes the law is the law but reality is reality. Judges can get away with just about anything and if they can move through cases more quickly I am sure they will do it.

The fact that tarp money was not allowed to be used for legal aid etc, could still prove to a major set back that will keep thousands of homeowners from showing up in court.

Related Story at Naked Capitalism.com

Matt Tiabbi investigating foreclosures

This story is from the November 25, 2010 issue of Rolling Stone Magazine. 
Written by Matt Taibbil

The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This "rocket docket," as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby­rinthine derivative deals of a type that didn't even exist when most of them were active members of the bench. Their stated mission isn't to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

Chris here-  a  part I want to emphasize: 

----judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby­rinthine derivative deals of a type that didn't even exist when most of them were active members of the bench.----------

 The financial industry has used new vocabulary terms, new formulas and lack of transparency to to keep people on the outside from knowing what types of risk they were taking on the inside.  It is a long history of manipulation by the industry to allow Wall Street to gamble with other people's money in order to collect millions of dollars in salary and pay out a nominal return to the average investor.  If it is better than the going rate of a Certificate of Deposit, most people are happy if their investment continues to compound year after year.  People have been willing to accept whatever garbage Wall Street throws at them.  In part due to the smoke screen of complexity that financial institutions use so well, and partly due to being brainwashed that the people on Wall Street are just so much smarter than the rest of us. 
Read More Here at More Financial Reality

Interesting developments on foreclosure fraud and bank fraud

"More on Foreclosure Fraud at Naked Capitalism"
I’ve been in contact for over the last six months with attorneys involved in foreclosure defense. Unlike the foreclosure mills, which seem to coin money, the attorneys on this front are either laboring pro bono or making considerably less than they could in other lines of work. They also can back up their views with depositions and trial transcripts.


One thing they stress is that a significant number of their clients facing foreclosure has made every single mortgage payment. . Read that again.

Chris here-Yves Smith at Naked Capitalism really has the inside story on what is going on with the servicers and foreclosures.  The sentence above in bold face type is really shocking.  It is hard to believe that the incompetence of the servicers or just plain neglect on their part, is being used as an excuse to steam roll property rights. 




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Insurance fraud added to banks woes. How long can they get away with breaking the law?

It seems to be getting deeper and deeper for the banks.  It is amazing they are getting away with such flagrant violations of law.  The abuses were over looked as long as the banks were making money and the politicians were getting their campaigns funded and perks provided.  The trust in the government and banking system will be shattered for years if this is allowed to continue.  If we do not see people prosecuted for knowingly and willfully violating nearly every statute on record  regarding real estate, mortgages and ownership rights, we may never see the bottom. 

The only moral hazard is letting the banks get away with steam rolling multiple laws regarding real property.

Clearer picture of current financial crisis.

m

We Might be in deep trouble with the real estate market. On second thought, YEH we are in deep trouble. 
Since I first wrote this article several months ago the situation has changed as has my knowledge level on the subject of mortgage backed securities. I wanted to update the article so it was more reflective of the current state of the housing market and the economy.

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I am not talking about a minor slow down or continued stagnation. We might be in for a continuation of the disaster that is occurring in certain cities around the country. Regardless of how the government and the National Association of realtors try to spin the current situation into something less that dreadful, there is no demand for real estate at the moment nor is demand likely to increase in the near future.
more on real estate crisis


I am having a hard time connecting the dots as to where the buyers, who will swoop in and buy all of this now affordable real estate, are hiding. The real estate market is not supported by first time home buyers. It never had been and never will be and the more the government tried to bring new home owners into the market to increase the historical average of home ownership, standards for qualification had to be relaxed. The balance of the market was lost when people were enticed to by homes without proper means or knowledge.

CURRENTLY I WOULD HAVE TO DISAGREE WITH WHAT I PREVIOUSL ASSUMMED.   SINCE THEN I HAVE RESEARCHED EXTENSIVELY ON THE REAL ESTATE CRISIS AND IT IS CLEAR TO ME THAT DEFAULTING SUB PRIME MORTGAGES WERE NOT THE CAUSE OF THE FINANCIAL MELT DOWN

However, this should not have been enough to completely wipe out the housing market and lead to a crash of up to 65% in many areas. How could a small number of foreclosures known as the “sub prime” problem derail the entire national housing market? It couldn’t and it never had in the past 70 years.  Those sub prime loans were refinanced or defaulted fairly soon after the recession started.

The sub prime excuse was just a way for the banks to deflect the spotlight from them so they could make a few more billion dollars, bilk the government for more bailout funds, and take giant bonuses. The housing market was heading into free fall and they (TBTFB) were well aware if the government wouldn’t step in and help them out, most of the major banks would have gone the way of Lehman Brothers. Yves smith summarized the issue very well October 31 2010 on her blog and in a New York Times op-ed story. Here is a quote from one of her responses to a comment submitted to her blog Naked Capitalism

Yves Smith says:


October 31, 2010 at 5:30 am


Jojo,


With all due respect, you are falling for the bank narrative on this one.


Yes, many subprime borrowers got in over their head. But the big resets on subprime were in 2007 and were pretty much over by late 2008. Most of those people have already been foreclosed upon, save where the banks have been dragging their feet.


Yves continues educating the commenter:


“You miss the fact that a lot of foreclosures in the past and now are due to servicer errors, plus normal credit losses, the biggie being job loss or hours reductions. This is not a simple “prudent v. imprudent” story.


When banks owned loans, they would ALWAYS restructure the loan of a viable borrower. Always. This is sound lender loss reduction behavior. Lew Ranieri, the father of mortgage backed securities, was clearly upset when he spoke at the Milken conference in 2008 about servicers using the MBS contracts as an excuse not to do mods. In his day, it was done as a matter of course because it reduced investor losses and hence was good business.’
End quote.

  I would also like to add that we don’t know people had gotten in over their heads. We have no record of how many people have avoided foreclosure or default over the past 40 years by selling their home. We can reasonably say that the CDS system substantially added to the housing decline. The effect of the prolonged and dramatic price decline took away the safety valve of selling a home to fend off foreclosure. Even if we had a reasonable real estate market with typically more stable appraisal values, thousands of people could have sold out with a minimal loss or breaking even. This would have accomplished 3 important things for the economy.

1. The banks would have cleared a potential toxic asset from the books.

2. It would have increased money supply by erasing a non- performing or poorly performing asset. Banks would have been in better financial positions with less risk of insolvency.

3. The homeowner would have been able to get out from under their debt if they had lost a job or had been transferred without having major credit score problems. They could have done their own reset until work picked up and they could then buy or rent.

The percentage of price decline has been severe enough to devastate the economy. The additional knockout punch has been the depth and length of this recession. We are now wiping people out completely as the banks bobbed and weaved their way out of the fight unscathed. Many very hard working Americans have faithfully taken their life savings to pay for their underwater mortgage for the past few years because they believed the government and the bankers, who were making claims it was just a sub prime issue housing prices would remain stable.. So now we are moving into year 3, year 4 and likely years 5 and 6 of this meltdown with millions of people still out work and now out of life savings, not because they were in over their head but because the banking system wiped out our economy.

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