http://www.zerohedge.com/article/whistleblower-speaks-fraudclosure
The Federal Reserve wants to initiate GE2 because all the crap that this person speaks about here has hit the fan, and the only way for the banks to clean it up is for the FED (who's your Daddy) to buy it up for them and stick the taxpayer with the tab.
How convenient.
The FED is a private banking institution America, it's made up of share holders like JP Morgan, Goldman..ect..
Their loyalty is not to the American economy, it's to their own.
This is a National Security problem.
It's called "High Treason".
It's one of those specifics written about in the Constitution of the United States.
The willful purpose of the devaluation of the Dollar.
The penalty is execution.
Zero Hedge has been approached by an individual who participated directly in the various aspects of what is now broadly known as Fraudclosure. The below narrative recounts his experience in the due diligence process of selecting loans for the MBS pipeline. And far more than just legalese "technicalities" or a broad abrogation of property rights, as he points out there is a far more palpable issue for all those who hold Mortgage Backed Securities or other pool aggregations of mortgage loans: "we have no idea what is in those packages." This coming from the person who helped pick, diligence and sort through the various loans...
Full exposition:
The truth behind the foreclosure crisis.
Yes, I am choosing to remain an anonymous coward. I just have been waiting this shoe to drop for a long time. The last thing I want to do is have to explain myself and get my ass sued for defamation. Not worth it.
This much I can tell you. We have no idea what is in those packages. I personally packaged billions in MBS which have been placed on public shelves. Those assets were underwritten by Goldman, Morgan or name your investment bank.
I started packaging loans as early as 2003, at the beginning of the crisis
Showing posts with label Mortgage banking industry. Show all posts
Showing posts with label Mortgage banking industry. Show all posts
Tuesday, October 19, 2010
Thursday, October 14, 2010
Look At The Market Reaction....
http://market-ticker.org/akcs-www?post=169169
Yeah please do look at market reaction to Grayson's letter to the head of the FBI,
But I want to draw your attention back to this
Laundering drug money......NO CRIMINAL CHARGE for either Bank Of America or Wells Fargo.
More Federal crimes just over looked, because it was the "Bankers"
And if they do get busted, it ONLY rates a fine!
And if it was YOU busted for it?......a Federal prison sentence!
Heh, you know, it's not like it's the first time they've done something like this. What's money-laundering when it comes to Iran? We've reported on that here at The Ticker. What did it get 'em? A fine. Then there's the long and sordid story of Birmingham Alabama, which hasn't even drawn a fine for the banks involved - even though that case produced multiple prison terms for the county officials.
Or we could talk about enabling criminal drug gangs in Mexico to run their money around - and buy planes with it. The penalty? Nothing. No big US bank has ever been indicted for violating any of these federal laws.
And now that there's a reaction in the market to yet another exposition of rank lawlessness by the "banking cartel",
Yeah please do look at market reaction to Grayson's letter to the head of the FBI,
But I want to draw your attention back to this
Laundering drug money......NO CRIMINAL CHARGE for either Bank Of America or Wells Fargo.
More Federal crimes just over looked, because it was the "Bankers"
And if they do get busted, it ONLY rates a fine!
And if it was YOU busted for it?......a Federal prison sentence!
Heh, you know, it's not like it's the first time they've done something like this. What's money-laundering when it comes to Iran? We've reported on that here at The Ticker. What did it get 'em? A fine. Then there's the long and sordid story of Birmingham Alabama, which hasn't even drawn a fine for the banks involved - even though that case produced multiple prison terms for the county officials.
Or we could talk about enabling criminal drug gangs in Mexico to run their money around - and buy planes with it. The penalty? Nothing. No big US bank has ever been indicted for violating any of these federal laws.
And now that there's a reaction in the market to yet another exposition of rank lawlessness by the "banking cartel",
Assigning Blame in Foreclosure Drama: Incompetence, Greed?.
http://blogs.wsj.com/developments/2010/10/14/assigning-blame-in-foreclosure-drama-incompetence-greed/
If they don't own the loan, how on earth can they modify it?
And if all the loans were modified, who has to make up the difference in payment to the MBS investors?
One can only assume that would be the bank that sold it to them.
And that ain't gonna happen.
That's why we have Fannie and Freddie now, so the taxpayer can make up the difference for them.
And you better believe we do.
You can Thank Hank Paulson for that slick move!
That has put major stress on the banks’ back-office mortgage servicing operations, which were never designed to deal with hundreds of thousands of borrowers that need help.
The warning signs have been there all along: While they’ve been adding staff, the big banks have struggled mightily to modify loans, approve short sales, and manage foreclosures effectively.
It’s not unusual to hear about frantic borrowers
If they don't own the loan, how on earth can they modify it?
And if all the loans were modified, who has to make up the difference in payment to the MBS investors?
One can only assume that would be the bank that sold it to them.
And that ain't gonna happen.
That's why we have Fannie and Freddie now, so the taxpayer can make up the difference for them.
And you better believe we do.
You can Thank Hank Paulson for that slick move!
That has put major stress on the banks’ back-office mortgage servicing operations, which were never designed to deal with hundreds of thousands of borrowers that need help.
The warning signs have been there all along: While they’ve been adding staff, the big banks have struggled mightily to modify loans, approve short sales, and manage foreclosures effectively.
It’s not unusual to hear about frantic borrowers
Bernanke And 'Remedies' For Foreclosuregate
http://market-ticker.org/akcs-www?post=169158
How did you fix deliberate and willful fraud?
You don't!
Unless your helping to cover it up.
So what Ben is saying is that it was not only OK to fuck over a nation of individual people doing business with the banks but it was actually OK to fuck over the investors of the products the banks were selling.
Only in America folks.
A criminal investigation needs to be started now and not by those that would help to cover it up!
John Dillinger had nothing on these guys.
How did you fix deliberate and willful fraud?
You don't!
Unless your helping to cover it up.
So what Ben is saying is that it was not only OK to fuck over a nation of individual people doing business with the banks but it was actually OK to fuck over the investors of the products the banks were selling.
Only in America folks.
A criminal investigation needs to be started now and not by those that would help to cover it up!
"Chairman Bernanke informed us that they have in fact discussed the issue with the major lenders, and that they are meeting with other regulatory agencies to review the problems associated with foreclosures; that they will pursue appropriate remedies relative to document signing and MERS issues," National Community Reinvestment Coalition President John Taylor said in a statement.This from the regulator that allowed all these hinky securities to be assembled by the very institutions he oversees, who stuck his head up his ass while they were being packaged and marketed, who has done nothing about the apparent refusal of these firms to actually adhere to the quality standards under which they sold these things to investors, and who now seems to think that national banks hiring a gang of thugs to literally break into someone's house meets the standard of a firm that should have a banking license.
John Dillinger had nothing on these guys.
Tuesday, October 12, 2010
The Robo-Signing Mess Is Just the Tip of the Iceberg, Mortgage Putbacks Will Be the Harbinger of the Collapse of Big Banks that Will Dwarf 2008!
http://www.zerohedge.com/article/robo-signing-mess-just-tip-iceberg-mortgage-putbacks-will-be-harbinger-collapse-big-banks-wi
Outstanding read
Now that the Robo-Signing scandals have achieved full notoriety through the media, it is time to address the real issues facing investors in bank stocks. I also believe that the media is staring at the wrong target. Each major media outlet is copying what is popular or what the next outlet broke as a story versus where the true economic risks actually lie – which is essentially the real story and where the meat actually is. Here's what's truly at stake – the United States is now at risk of losing its hegemony as the financial capital of the world! Why? Because when we had the chance to put the injured banks to sleep and redirect resources to into new productivity, we instead allowed politics to shovel 100's of billions in tax payer capital into zombie institutions as they turned around and paid much of it right back out as bonuses. As a result, significant capital has been destroyed, the original problem has metastized, and the banks are still in zombie status, but with share prices that are multiples of the actual values of the entities that they allegedly represent – a perfect storm for a market crash that will make 2008 look like a bull rally! For those who feel I am being sensationalist, I refer you to my track record in making such claims.
The Japanese tried to hide massive NPAs in its banking system after a credit fueled bubble burst by sweeping them under a rug for political reasons. Here’s a newsflash – it didn’t work, it hasn’t worked for 20 years, and despite that Japan is embarking on QE v3.3 because it simply doesn’t believe that it is not working. Here are the steps the US is consciously taking it its bid to enter a 20 year deflationary spiral like Japan, and may I add that these steps were clearly delineated on BoomBustBlog ONE YEAR ago (Bad CRE, Rotten Home Loans, and the End of US Banking Prominence? Thursday, November 12th, 2009), so no one can say this is a surprise.
Step one: Hide the Truth!
Outstanding read
Now that the Robo-Signing scandals have achieved full notoriety through the media, it is time to address the real issues facing investors in bank stocks. I also believe that the media is staring at the wrong target. Each major media outlet is copying what is popular or what the next outlet broke as a story versus where the true economic risks actually lie – which is essentially the real story and where the meat actually is. Here's what's truly at stake – the United States is now at risk of losing its hegemony as the financial capital of the world! Why? Because when we had the chance to put the injured banks to sleep and redirect resources to into new productivity, we instead allowed politics to shovel 100's of billions in tax payer capital into zombie institutions as they turned around and paid much of it right back out as bonuses. As a result, significant capital has been destroyed, the original problem has metastized, and the banks are still in zombie status, but with share prices that are multiples of the actual values of the entities that they allegedly represent – a perfect storm for a market crash that will make 2008 look like a bull rally! For those who feel I am being sensationalist, I refer you to my track record in making such claims.
The Japanese tried to hide massive NPAs in its banking system after a credit fueled bubble burst by sweeping them under a rug for political reasons. Here’s a newsflash – it didn’t work, it hasn’t worked for 20 years, and despite that Japan is embarking on QE v3.3 because it simply doesn’t believe that it is not working. Here are the steps the US is consciously taking it its bid to enter a 20 year deflationary spiral like Japan, and may I add that these steps were clearly delineated on BoomBustBlog ONE YEAR ago (Bad CRE, Rotten Home Loans, and the End of US Banking Prominence? Thursday, November 12th, 2009), so no one can say this is a surprise.
Step one: Hide the Truth!
The MERS Edifice Quavers....
The MERS Edifice Quavers....
http://market-ticker.org/akcs-www?post=168845
Busted by the kids in class!
The "finer minds of government swilled garbage" as well as the "talking heads" of MSM need to take note here!
How pathetic is it that the "law school kids" can see the full illegality
of the MERS operation when our own elected officials are either to cowardly to openly admit it or either to stupid to see it.
Either way it's the blind leading the blind rather than representing their own constituents against the fraud of the mortgage banking industry.
Heads should be rolling at this point.
When the average American can understand an issue that their representatives are refusing to discuss, out of fear of reprisal that their campaign funds will be cut off by the banking industry, it's time to change the rules of donation as well as lobbying.
Money cannot be ever considered more important than "the People", and yet it obvious that the decision that our elected officials have made.
And threatens to crumble into dust....
Yes, this is a draft. But it is coming from a law school's scholarly paper mill - not exactly the sort of place you want to ignore. A few good cites will set the table for those willing to dig into what's really not that hard to understand...
What do you call an artifice designed to evade the payment of taxes - which these fees are?
http://market-ticker.org/akcs-www?post=168845
Busted by the kids in class!
The "finer minds of government swilled garbage" as well as the "talking heads" of MSM need to take note here!
How pathetic is it that the "law school kids" can see the full illegality
of the MERS operation when our own elected officials are either to cowardly to openly admit it or either to stupid to see it.
Either way it's the blind leading the blind rather than representing their own constituents against the fraud of the mortgage banking industry.
Heads should be rolling at this point.
When the average American can understand an issue that their representatives are refusing to discuss, out of fear of reprisal that their campaign funds will be cut off by the banking industry, it's time to change the rules of donation as well as lobbying.
Money cannot be ever considered more important than "the People", and yet it obvious that the decision that our elected officials have made.
And threatens to crumble into dust....
Yes, this is a draft. But it is coming from a law school's scholarly paper mill - not exactly the sort of place you want to ignore. A few good cites will set the table for those willing to dig into what's really not that hard to understand...
In the mid-1990s mortgage bankers decided they did not want to pay recording fees for assigning mortgages anymore.11 This decision was driven by securitization—a process of pooling many mortgages into a trust and selling income from the trust to investors on Wall Street. Securitization, also sometimes called structured finance, usually required several successive mortgage assignments to different companies. To avoid paying county recording fees, mortgage bankers formed a plan to create one shell company that would pretend to own all the mortgages in the country—that way, the mortgage bankers would never have to record assignments since the same company would always “own” all the mortgages.12
What do you call an artifice designed to evade the payment of taxes - which these fees are?
They incorporated the shell company in Delaware and called it Mortgage Electronic Registration Systems, Inc.13.14
Even though not a single state legislature or appellate court had authorized this change in the real property recording, investors interested in subprime and exotic mortgage backed securities were still willing to buy mortgages recorded through this new proxy system
What do you call selling something to someone that claims an ownership right as an inherent part of the bargain - indeed, it's the only consideration that is offered in exchange for money, yet the state legislatures have not ratified this as proper, and in fact the county and state legislatures say it is not?
Because the new system cut out payment of county recording fees it was significantly cheaper for intermediary mortgage companies and the investment banks that packaged mortgage securities. Acting on the impulse to maximize profits by avoiding payment of fees to county governments much of the national residential mortgage market shifted to the new proxy recording system in only a few years. Now about 60% of the nation’s residential mortgages are recorded in the name of MERS, Inc. rather than the bank, trust, or company that actually has a meaningful economic interest in the repayment of the debt.15 For the first time in the nation’s history, there is no longer an authoritative, public record of who owns land in each county.Oh yes there is. It's at the county, where it always was.
Both the MERS-as-an-agent and the MERS-as-an-actual mortgagee theories have significant legal problems. If MERS is merely an agent of the actual lender, it is extremely unclear that it has the authority to list itself as a mortgagee or deed of trust beneficiary under state land title recording acts. These statutes do not have provisions authorizing financial institutions to use the name of a shell company, nominee, or some other form of an agent instead of the actual owner of the interest in the land. After all the point of these statutes is to provide a transparent, reliable, record of actual—as opposed to nominal—land ownership.
Sunday, October 10, 2010
In foreclosure controversy, problems run deeper than flawed paperwork
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/06/AR2010100607227.html?waporef=obinsite
You can't sell without a clear title, and who in their right mind would buy unless you could provide one?
Millions of U.S. mortgages have been shuttled around the global financial system - sold and resold by firms - without the documents that traditionally prove who legally owns the loans.
Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title.
These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate "robo-signers."
The court decisions, should they continue to spread, could call into doubt the ownership of mortgages throughout the country, raising urgent challenges for both the real estate market and the wider financial system.
You can't sell without a clear title, and who in their right mind would buy unless you could provide one?
Millions of U.S. mortgages have been shuttled around the global financial system - sold and resold by firms - without the documents that traditionally prove who legally owns the loans.
Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title.
These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate "robo-signers."
The court decisions, should they continue to spread, could call into doubt the ownership of mortgages throughout the country, raising urgent challenges for both the real estate market and the wider financial system.
Saturday, October 9, 2010
The bogus propaganda that Congress better not buy
http://4closurefraud.org/2010/10/09/bankers-propaganda-letter-to-congressional-staffers-efforts-mortgagers-are-making-for-at-risk-homeowners/
America has actually been listening, and fully understand the lies that are being stated in this letter.
What Congress better understand is the fact that if there is anymore of their fully agreed upon collusion with the Mortgage Bankers, America will demand their arrest and trial for their compliance in this crime.
The Honorable XYZ
United States House of Representatives
Washington DC 20515
Dear Representative XYZ,
We are writing to set the record straight on the efforts mortgage servicers are making to assist
at-risk homeowners, as well as to address the issues that are being raised about the processing of documents for mortgages that are in foreclosure.
Foreclosure Document Reviews
As we have said consistently, foreclosure helps no one, and it is the last thing our mortgage servicing companies want to have happen. That is why our members work hard every day with their customers who are behind on their mortgage to try to find a solution that avoids a foreclosure. This effort has produced dramatic positive results for homeowners. Mortgage servicers have completed 1.3 million loan modifications for homeowners thus far in 2010 and more than 3.7 million since 2007.
Unfortunately, there are circumstances when a modification or other potential solution such as a short sale is not possible and foreclosure proceedings must be undertaken. As has always been the case, no change in the terms of the loan will help a homeowner if they don’t have adequate income to make even greatly reduced monthly payments, or if they have no desire to remain in the home. If that is the case, a foreclosure must be pursued by the servicer.
We want to assure you that foreclosure is not initiated by servicers until many months of delinquent payments, after repeated attempts to work with the homeowner, and only when all other foreclosure prevention efforts have failed.
In several states, some mortgage servicers have
America has actually been listening, and fully understand the lies that are being stated in this letter.
What Congress better understand is the fact that if there is anymore of their fully agreed upon collusion with the Mortgage Bankers, America will demand their arrest and trial for their compliance in this crime.
From Urban Dictionary: The term “pigs ass” is used in many situations. It is most commonly used when someone claims something is not true.October 8, 2010
Here is a taste of the propaganda bombarding our elected officials daily. Refuse to let this deception continue undisputed and unrefuted. Please contact your US & State representatives with a copy of the predators’ drivel below and your rebuttal.
There is much work to do.
The Honorable XYZ
United States House of Representatives
Washington DC 20515
Dear Representative XYZ,
We are writing to set the record straight on the efforts mortgage servicers are making to assist
at-risk homeowners, as well as to address the issues that are being raised about the processing of documents for mortgages that are in foreclosure.
Foreclosure Document Reviews
As we have said consistently, foreclosure helps no one, and it is the last thing our mortgage servicing companies want to have happen. That is why our members work hard every day with their customers who are behind on their mortgage to try to find a solution that avoids a foreclosure. This effort has produced dramatic positive results for homeowners. Mortgage servicers have completed 1.3 million loan modifications for homeowners thus far in 2010 and more than 3.7 million since 2007.
Unfortunately, there are circumstances when a modification or other potential solution such as a short sale is not possible and foreclosure proceedings must be undertaken. As has always been the case, no change in the terms of the loan will help a homeowner if they don’t have adequate income to make even greatly reduced monthly payments, or if they have no desire to remain in the home. If that is the case, a foreclosure must be pursued by the servicer.
We want to assure you that foreclosure is not initiated by servicers until many months of delinquent payments, after repeated attempts to work with the homeowner, and only when all other foreclosure prevention efforts have failed.
In several states, some mortgage servicers have
Thursday, October 7, 2010
Dylan Ratigan: property rights gone wrong
http://www.huffingtonpost.com/dylan-ratigan/property-rights-gone-wron_b_754586.html
When the answers don't come quick enough
And you can bet a lot of people are sweatin it righ now to
This is the reason why.
Why isn't the government dealing with it now?
Most mortgages in America are now backed by our government. And in order for a bank to get that backing from our government it must fill two criteria:
1. The borrowers must be verified by the banks and their agents as qualified.
2. Lenders must fill out paperwork accurately and make sure that when the home's title changes hands, so does the documentation.
But in the past two decades, a whole lot of the time, that never happened.
Why?
When the answers don't come quick enough
And you can bet a lot of people are sweatin it righ now to
This is the reason why.
Finally, the last and most important why:
Why isn't the government dealing with it now?
Simply because it could reveal systematic criminal and civil fraud at the highest levels of America's banks and in its political corridors.
Why isn't the government dealing with it now?
Most mortgages in America are now backed by our government. And in order for a bank to get that backing from our government it must fill two criteria:
1. The borrowers must be verified by the banks and their agents as qualified.
2. Lenders must fill out paperwork accurately and make sure that when the home's title changes hands, so does the documentation.
But in the past two decades, a whole lot of the time, that never happened.
Why?
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