Fannie Will Hold Servicers Responsible for Robo-gate REO Losses

http://www.nationalmortgagenews.com/dailybriefing/2010_210/fannie-will-hold-servicers-1021905-1.html?ET=nationalmortgage:e451:11255a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_102910

Fannie is publicly stating they're going to eat the cost, the banks are going to.

Fannie Mae, which has temporarily suspended certain REO sales because of the foreclosure-gate scandal, plans to hold its servicers responsible for increased carrying costs on these properties, industry sources told
Moreover, the GSE has already come up with a loss estimate on what that cost might be: upwards of $150 million, said one REO manager close the situation.

As National Mortgage News went to press, a company spokeswoman had not returned two telephone calls about the matter.

"Over the past 45 days, there's been a lot of fall-out from this scandal," said a source close to Fannie. "When a property gets pulled off the market, that results in the carrying cost becoming greater. Lawns need to be cut and houses need to be cleaned. It can add up."

The low estimate on what Fannie might lose is $50 million, sources said.

Home Lenders May Meet States Over Foreclosures Soon

http://www.bloomberg.com/news/2010-10-27/mortgage-lenders-may-meet-with-states-over-foreclosure-probes-this-week.html

A deal for loan modifications.
I'm not hearing criminal procecution here at all.
The question is:
Why not?



A 50-state task force investigating U.S. foreclosure practices may meet with lenders as early as this week, less than a month after JPMorgan Chase & Co. and Bank of America Corp. suspended some home seizures.

“We’ve had several conference calls with major lenders,” Colorado Attorney General John Suthers said in an interview, declining to specify which ones. “The banks want to sit down with the attorneys general. These meetings are being set up,” said Suthers, whose office is a member of the executive committee of the task force

Bank of America Finds Foreclosure Mistakes: Report

http://www.cnbc.com/id/39826960

Now which lack of signatures would that be?
On the title transfers? Oh that right, it can't on those since they failed to assign them to anything but blank.
It makes them easy to swap back and forth that way.
No messy paper work to state who actually owns them or holds responsibility for them.
No tax quota to compensate for there,
Just plain old fraud and embezzlement, all the way around,
To the MBS Investor, as well as the homeowner for services paid for that were never received, and right down to the counties we live in for the theft of the recording fees that they were entitled to.
We call that "White Collar Crime" where I come from,
not a mistake.



Bank of America acknowledged some mistakes in foreclosure files as it begins to resubmit documents in 102,000 cases, the Wall Street Journal said.

The bank found errors in 10 to 25 out of the first several hundred foreclosure it examined starting last Monday, the newspaper said.

The problems included improper paperwork, lack of signatures and missing files, as well as cases in which information about the property and payment history being unmatched, the Journal said

The bank found the errors while preparing less than 1 percent of the first foreclosure files that it intends to resubmit to the courts in 23 states, the Journal said.

Foreclosure-gate: Fed agency concludes fraud not widespread

http://www.examiner.com/mortgage-in-washington-dc/fed-housing-agency-concludes-fraud-not-widespread

For being the biggest chump, of the Government sponsored Corporate Mouth Piece,
HUD Secretary Shaun Donovan is awarded the "shit shovel" of the week award, so that he can dig his own self respect of stupidity back out of the pile of shit he just buried it in.
It was a toss up this week between Shaun and Homeland Security head Janet Napolitano, but his personal involvement in the federal government’s Financial Fraud Task Force toss out edged Janet out by a nose in light of Bank of America's admittance in court that mortgages had been sold simultaneously to a variety of different MBS investment holdings.
Shaun's brown just seemed to show just a little bit more luminously upon his nose.


How big is widespread? In the wake of reports about mishandling foreclosure documents by major loan servicers and the admission of negligence by their reviewers, HUD Secretary Shaun Donovan said, “We have not found any evidence at this point of systemic issues in the underlying legal documents.” His statement leaves one wondering if he is talking about the success of loan modification and not the thousands of homeowners who lost their homes due to overly aggressive processors, who were paid incentives to speed up the day when an auctioneer said “Sold.”

For five months the federal government’s Financial Fraud Task Force has been looking into possible crimes connected to foreclosure documentation errors reported by at least five mortgage servicers. At the top of the list is Bank America.

William K. Black: Foreclose on the foreclosure fraudsters

http://www.huffingtonpost.com/william-k-black/foreclose-on-the-foreclos_b_772434.html

Damn this was explosive. A total must read!
I don't know about using the FDIC though, it seems to me that they have their hand in this cookie jar to, as well as the SEC.
I trust none of the supposed regulating institutions at this point.
They didn't bother to do their jobs before or chose to disregard what those jobs actually were, why should they be trusted now to fulfill those duties?

Note that the Justice Department is not investigating foreclosure fraud. HUD Secretary Donovan's statement shows why:

"We will not tolerate business as usual in the mortgage market," he said. "Where there have been mistakes made or errors, we will hold those entities, those institutions, accountable to stop those processes, review them and fix them as quickly as possible."

Note the language: "mistakes", "errors", "processes" (following the initial use of "paperwork"). No mention of "fraud", "felony", "criminal investigations", or "prosecutions" for the tens of thousands of felonies that representatives of the entities foreclosing on homes have admitted that they committed. Note that Donovan does not even demand that the felons remedy the harm caused by their past fraudulent foreclosures. Donovan wants them to "fix" "processes" -- not repair the harm their frauds caused to their victims.





President Obama, Attorney General Eric Holder, Donovan, and Barr cannot even bring themselves to use the "f" word -- fraud. They substitute euphemisms designed to trivialize elite criminality. The administration officials do not call for Bank of America to be the subject of a criminal investigation. They do not demand that Fannie, Freddie, Ambac, the FHFA, and Pimco file criminal referrals about Countrywide's frauds. They do not demand that Fannie, Freddie, and the Fed refuse to purchase or take as collateral any mortgage instrument from Bank of America. No one at the Harvard Club in New York moves to kick Bank of America's officers out of their club! The financial media treats Bank of America as if it were a legitimate bank rather than a "vector" spreading the mortgage fraud epidemic throughout much of the Western world.

Tuesday, October 19, 2010RULING BY THE LAW! SUPREME COURT Judge In New York, Dismisses WACHOVIA BANK Foreclosure Attempt with Prejudice! No Right to Foreclose - No Note or Debt - Lacks Standing to Foreclose!

http://sherriequestioningall.blogspot.com/2010/10/ruling-by-law-supreme-court-judge-in.html


Paging little Timmy or big Ben
EMERGENCY...line 1

The SUPREME COURT OF New York ruled Wachovia Bank has NO Standing Nor Right to Foreclose, did not Provide Note nor Debt to the judge!

EXCERPT:
Plaintiff has not provided a copy of an alleged servicing agreement between Plaintiff and Wells Fargo Bank, N.A. A vice president of Wells Fargo Bank, N.A. has provided what purports to be an affidavit of facts, however it is not clear that they are authorized to do so.
Additionally the subject mortgage was allegedly modified by Defendant Vargas and yet another entity known as Americas Servicing Company (“Wells Fargo Bank, N.A. doing business as America’s Servicing Company).
The Plaintiff herein lacks standing to bring this action. The purported assignment assigned the mortgage but makes no mention of the debt or note. (Kluge v. Fugazy, 145 2d 537, 536 N. 2d 92 (2d Dept., 1988); U.S. Bank, N.A. v. Collymore 68 A.D.3d 752, 890 N. 2d 578 [2d Dept., 2009]).
Under the circumstances Plaintiff has failed to establish that it is entitled to the relief sought and the complaint is dismissed with prejudice.

Attorneys General in 49 States Join Foreclosure Probe

http://www.businessweek.com/news/2010-10-13/attorneys-general-in-49-states-join-foreclosure-probe.html

The AG's better dig a little deeper than just the foreclosure process and ask why all of the crimes had to be committed for the simple process as a foreclosure.
They're a missing the big picture or choosing to willingly ignore it, in which case,it would seem the possibility is there that they themselves are also aiding and abetting the banks as well as being in collusion regarding the political cover up of one of the greatest financial crimes committed against the taxpayer in the history of the United States..
With the fraudulent use of MERS the banks decided their own fate regarding the state of fairness.
America is not going to let this go.
The banks plied Fannie and Freddie with this crap that can't be traced to legally foreclose on. They just billed the taxpayer a few more billion the last quarter to take care of the financial obligations to the bondholders that come with the getting dumped with Fannie and Freddie.
The FED wants to buy more of this same crap up and stick the taxpayer with the tab, as well as devaluing your dollar even more in the process of doing it.

Top legal officers of 49 states opened a joint investigation into home foreclosures, saying they will probe practices at banks and mortgage companies.

The states, including Texas, Iowa and New Mexico will conduct a coordinated inquiry into whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures, Minnesota Attorney General Lori Swanson said today in an e-mailed statement.

“Our multistate group has begun inquiring whether or not individual mortgage servicers have improperly submitted affidavits or other documents in support of foreclosures,” the attorneys said in a statement. “The facts uncovered in our review will dictate the scope of our inquiry.”

Alabama is the only state that didn’t join the probe

“This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible,” Iowa Attorney General Tom Miller, who is leading the group, said in a statement.

“Since this issue affects people’s homes and has clear economic implications, this probe and its outcome need to be fair both to homeowners and also to lenders,” Miller said.

First Steps

The group’s initial goals include putting an immediate stop to improper mortgage practices, reviewing past and present practices by mortgage servicers, evaluating potential remedies and establishing a mechanism for more effective independent monitoring of future mortgage foreclosure practices, Miller’s office said in its statement.

States aim to force changes in foreclosure process

http://finance.yahoo.com/news/States-aim-to-force-changes-apf-3243525447.html?x=0

Here are your state attorney generals all on crack.
They're already talking settlement, what happened to criminal prosecution?
How can you make a deal when you never investigated the case?
The home owner knows that no records were kept and the investors do to.
The use of MERS screwed everyone all the way around, and now it's the banks turn, and they deserve to take it.
Ask yourself, who your Attorney General is really selling out, in an attempt to appease the citizens and cover this nightmare back up.


The top law enforcement officials of states around the country are launching a joint investigation into the problems with foreclosure documents that surfaced in recent weeks. They are already weighing the outlines of a potential settlement with the industry, said Iowa Attorney General Tom Miller, who will lead the investigation. The inquiry will be announced Wednesday morning.

Miller said one idea being discussed is to create an independent monitor to review whether banks have fixed their problems.

Statement by CEO of Mortgage Electronic Registration Systems (MERS)

http://4closurefraud.org/2010/10/09/statement-by-ceo-of-mortgage-electronic-registration-systems-mers-the-mers-system-is-not-fraudulent-and-mers-has-not-committed-any-fraud/

Right off the rip a false statement has been made.
MERS cannot track the mortgage.
In a Federal court in Oregon, in undesputable testimony to the court, it was stated on the record, that the MERS system could not transfer a promisory note.
MERS does nothing more than to hold the titles of all properties registered into it's program. They don't have the capabilities to be able to track the transfers upon sale or purchase, that was left up to companies like LPS, who as it turns out didn't actually track the loans or transfers of title either.

MERS helps the mortgage finance process work better. The MERS process of tracking mortgages and holding title provides clarity, transparency and efficiency to the housing finance system. We are committed to continually ensuring that everyone who has responsibilities in the mortgage and foreclosure process follows local and state laws, as well as our own training and rules

.”

Kudlow gets into foreclosure-gate

http://market-ticker.org/

Lol The talking head trying to figure out how to solve it.
This is Karl's blog, I left it straight up instead of giving you the individual article on purpose.
Karl has 2 more articles that are the fallout from this, that come right after this one.
Do not let the talking heads scare you or sway you.
Read what Karl has to say about it, trust me, he know volumes more than they do or ever will, about exactly what is going on.
They are paid to implant ideas, especially at this point, which is a prison point for an awful lot of people.
I have to laugh over someone must get paid, I'm pretty sure AIG already took care of that, at your expense, without your consent.
I only have one question for Karl, why did you leave Hank Paulson out?



Yes, I've dubbed it: Foreclosuregate.



I'd love to tell you that I think there's some reasonable way to get out of this.

There isn't.

The reality of this is far worse than it appears. Kudlow is still downplaying it, really, even though I emailed him today with the source documents of a half-dozen Tickers. Whether they prompted him to spend the time on it tonight I'll never know.

The real problem isn't the foreclosures. It's the REMICs.

The "loose document standards" of the go-go years were all predicated on this never happening - all the way up to now. In fact, the entire premise of the last three years of Bernanke, Geithner and everyone else's actions in the government has been under the (false) belief that they could "re-inflate" house prices. This would allow everyone to refinance out of the mess, and since nobody would ever see the inside of a court, nobody would be the wiser, other than a few REMIC holders who went after each other when a note was sold twice.

Instead, what we have is a nightmare. House prices are not going to go back up. As a direct consequence, we have an intractable problem.

The REMICs - the foundational conduits for all this paper - are to a large degree defective. I bet some of Fannie and Freddie's are too. Many notes were not conveyed, and in the states where recordation is necessary, most of them weren't recorded either. Many of these original notes are known to be sitting with the originator, never endorsed over and in some cases shipped overseas or deliberately destroyed. For all intents and purposes they're gone, because once the MBS closes they can't be put in later on.

This can't be fixed because both the offering circulars and IRS regulations set hard cut-offs for these things by which time everything has to be "in" and done. Further, you can't put anything in a REMIC that's defaulted - only good paper. So a defaulted note can't be put in, and nothing can be put in now, as the time has lapsed. Violate either of these and the REMIC's tax preference is destroyed. Don't violate it and some of the REMICs are empty boxes with, at best, naked promissory notes (legally a signature loan) and no standing to foreclose.

On Larry's show they were calling for "emergency legislation." It won't matter. The REMIC issues are the ones you can't fix. If those are defective then attempting to fix it triggers tax liabilities in the hundreds of billions of dollars. Forget that idea