DELAWARE COURT ORDERS BANK OF NEW YORK MELLON AS TRUSTEE TO FULLY COMPLY WITH COURT’S DISCOVERY ORDER UNDER THREAT OF DISMISSAL WITH PREJUDICE AND ASSESSES SANCTIONS

DELAWARE COURT ORDERS BANK OF NEW YORK MELLON AS TRUSTEE TO FULLY COMPLY WITH COURT’S DISCOVERY ORDER UNDER THREAT OF DISMISSAL WITH PREJUDICE AND ASSESSES SANCTIONS
A Sussex County, Delaware Court has entered an Order finding that Bank of New York Mellon as Trustee of a First Horizon securitized mortgage loan trust failed to comply with the Court’s prior order compelling discovery, and has also assessed sanctions against BNYM for the the homeowner’s having to bring a Motion for Sanctions against BNYM for violation of the Court’s discovery Order. The Order also provides that if BNYM continues to not comply with the prior Order that the case will be dismissed with prejudice.
The homeowneer is represented by Jeff Barnes, Esq. and local Delaware counsel Paul G. Enterline, Esq. We believe this to be the first case in Delaware where securitization-related discovery is being compelled under the threat of a dismissal with prejudice for noncompliance with a prior discovery order. Mr. Barnes has already had several foreclosure cases dismissed in Florida and New Jersey for a foreclosing Plaintiff’s failure to comply with discovery, and he has also obtained court orders assessing attorneys’ fees against “banks” for noncompliance with discovery.
The foreclosing Plaintiff styles itself as the trustee for a series of pass-through certificates by a division of a Tennessee bank “Master Association” in its capacity as trustee under a Pooling and Servicing Agreement and assignee of MERS. As such, all issues as to the securitization including the PSA and MERS’ involvement are implicated by virtue of the Plaintiff’s self-chosen denomination.
It is common knowledge that Joseph Biden III, the Attorney General of Delaware, has sued MERS in a 91-page Verified Complaint sounding in deceptive trade practices which have lead to improper foreclosures. We expect many of the issues in the Biden lawsuit to be raised in the Sussex County litigation.

See more on Biden and the suing of MERS     HERE

Wall Street Journal votes for free market regarding foreclosures

Review of WSJ Story on Foreclosure here at Credit Slips

This is my take on the WSJ Story

Simple minded drivel from this WSJ Story. I have heard so many people reveal their ignorance by saying such things. If he was a professional reporter, that would mean actually doing some research on the origins of the housing crisis before writing about it.


I have no interest in hearing anyone cry about free market solution after we paid everyone and their brother on Wall Street for bringing the economy to its knees.

The truth is most people are making a smart business decision to walk away from a home with a 200% LTV. I don't know how many times the banks and brokers what to get paid for this debt. The all were paid to sell the paper, then paid by the government to prop up their balance sheets and now they want to collect full value from the home owner.

There is no slippery slope of strategic default. It is an option that comes with the contract. The problem is that the negative stigma attached to a default makes most people think they have no leverage with the banks. The Reality is that anyone can renegotiate with the bank at anytime and they can leave any time.

The banks have done very well by having people fell so obligated to fulfill their contracts. Even know with people 50 % under water, nearly all of them are trying to keep up with payments.

People just seem to get such a righteous attitude when it comes to housing. I don't remember any news calling Donald Trump a dead beat when he went bankrupt, so why the double standard.

Who in their right mind would turn to Wall Street as their guiding moral compass.? Talk about Dead beats.

Well ok now finally, everyone needs to remember that the banks willingly appraised the property for the amount of the mortgage. They willingly took the property at a much higher price as collateral. It is fair game to give them back the keys.

The banks have been running the country for some time now. And we need to shift the balance of power.

Simple minded drivel from this WSJ Story. I have heard so many people reveal their ignorance by saying such things. If he was a professional reporter, that would mean actually doing some research on the origins of the housing crisis before writing about it.

I have no interest in hearing anyone cry about free market solution after we paid everyone and their brother on Wall Street for bringing the economy to its knees.

The truth is most people are making a smart business decision to walk away from a home with a 200% LTV. I don't know how many times the banks and brokers what to get paid for this debt. The all were paid to sell the paper, then paid by the government to prop up their balance sheets and now they want to collect full value from the home owner.

There is no slippery slope of strategic default. It is an option that comes with the contract. The problem is that the negative stigma attached to a default makes most people think they have no leverage with the banks. The reality is that anyone can renegotiate with the bank at anytime and they can leave any time.

The banks have done very well by having people feel so obligated to fulfill their contracts. Even now with people 50 % under water, nearly all of them are trying to keep up with payments.

People just seem to get such a righteous attitude when it comes to housing. I don't remember any news calling Donald Trump a dead beat when he went bankrupt, so why the double standard.

And finally, who in their right mind would turn to Wall Street as their guiding moral compass. Talk about Dead beats.

Well ok now finally, everyone needs to remember that the banks willingly appraised the property for the amount of the mortgage. They willingly took the property at a much higher price as collateral. It is fair game to give them back the keys.

The banks have been running the country for some time now. And we need to shift the balance of power.

So those who have depleted savings on a mortgage for 3 years should suffer now because the government won't stand up to the banks?

Article from way back in 2008 addresses problems with foreclosures and defaults leading to downward spiral of housing prices. 

It is clear that many economists were aware of the problems with housing but there was only the uninformed leading the push to castigate anyone who was behind on a mortgage.  It was little but senseless dither by people who felt it was fair to give the banks billions of dollars for bringing the economy to its knees.  They were the same people waving the banner of trickle down recovery.  All the talk of how giving money to the banks would save the world just turned out to be complete fabrication in order to fleece the public. 

It seems like many people still think people should have endless amounts of money set aside for a rainy day, or in this case a rainy four years of unprecedented unemployment.  I am sick of hearing from people who say this was caused by irresponsible borrowers who bought homes they couldn't afford.  It is likely they could afford it if they were employed, or if banks were willing to work with people in distress.  The talk of foreclosing to turn the market around is just complete nonsense and any one who has any reasonable intelligence and understanding of real estate would understand the problem. 

We are in trouble because Wall Street and Banks wanted to be able to leverage the consistent payments of homeowners.  The interest wasn't enough for them so they wanted to create more liquid derivatives that would bring returns up to 10 fold.  We have not fixed the problem and when we do recovery they system will be in tact and it will happen again. 


"The recently enacted financial rescue plan does nothing to stop this spiral. Credit will not flow and liquidity will not return to the banking system until financial institutions have confidence in the solvency and liquidity of
of other banks. 
Problem is dowwnard spiral in housing prices



Because of the 20% fall in the price of homes since the bursting of the house-price bubble, there are now some 10 million homes with mortgages that exceed the value of the house. Residential mortgages are generally "no recourse" loans, meaning that if the homeowner stops making payments, the creditor can take the property but cannot take other assets or attach income. Individuals with loan-to-value ratios greater than 100% therefore have an incentive to default even if they can afford their monthly payments, and to rent an apartment or other house until house prices stop declining. When individuals default and creditors foreclose, the property is added to the stock of unsold homes. That depresses prices further, increasing the number and magnitude of negative equity houses.



The prospect of a downward spiral of house prices depresses the value of mortgage-backed securities and therefore the capital and liquidity of financial institutions. Experts say that an additional 10% to 15% decline in house prices is needed to get back to the prebubble level. That decline would double the number of homes with negative equity, raising the total to 40% of all homes with mortgages. The mortgages of five million homeowners would then exceed the value of their homes by 30% or more, which could prompt millions of defaults.



The process of default and foreclosure leading to price declines and further defaults could take house prices far below the long-term sustainable level. But even when prices seem low, prospective buyers will delay buying as long as they expect prices will continue to fall.
The financial rescue plan would bring back the confidence needed to revive the financial system only if the Treasury's asset purchases could eliminate the current impaired securities now held by the financial institutions, and if the remaining securities could be counted on to remain healthy. The legislation will do neither"

Bank of America may not be sure of how bad it is with their mortgages from Country Wide

Story in the WSJ touches on the issues faced by Bank of America.  They are reviewing 102,000 mortgages to see if there are underlying issues that would prevent them from showing actual ownership of the note.  I am not clear on why Bank of America and others, including Wells Fargo, are throwing out these numbers.  Wells said it was reviewing 55000 documents that have problems regarding paperwork and ownership of mortgages.
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But Bank of America is servicing 14 million loans, 10 million of which originated with Country Wide Homes Loans, before the BOA take over.  My question is this:  How can there not be far more errors in more than 102,000 of the 10 million originated mortgages? 
Recovery from depression starts here. 

It looks like we are not getting the full story once again.  It think each time the banks gives an inch it is just a test balloon to see if they can slide by without the public realizing they are trying to scam the country again. 

read the full story here on "trouble at BOA"