It is hard to state this strongly enough. The entire mortgage backed securitization structure was based upon FRAUD. An intentional misstatement of a material fact known to be untrue and which the receiving party reasonably relies to his detriment is fraud. BOTH ends of this deal required fraud for completion. The investors had to believe the securities were worth more and carried less risk than reality. The borrowers had to believe that their property was worth more and carried less risk than reality. Exactly the same. Using ratings/appraisals and distorting their contractual and statutory duties, the sellers of this crap defrauded the investors, who supplied the money and the borrowers were accepted PART of the benefit.

See this article posted by our friend Anonymous:

Posts by Aaron Task
“A Gigantic Ponzi Scheme, Lies and Fraud”: Howard Davidowitz on Wall Street
Jul 01, 2010 08:00am EDT by Aaron Task in Newsmakers, Banking
Related: XLF, AIG, GS, JPM, BAC, C, FNM
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Day one of the Financial Crisis Inquiry Commission’s two-day hearing on AIG derivatives contracts featured testimony from Joseph Cassano, the former head of AIG’s financial products unit. Goldman Sachs president Gary Cohn was also on the Hill.
Meanwhile, the Democrats are still trying to salvage the regulatory reform bill, with critical support from Senator Scott Brown (R-Mass.) reportedly still uncertain.
According to Howard Davidowitz of Davidowitz & Associates, what connects the hearings and the Reg reform debate is the lack of focus on the real underlying cause of the financial crisis: Fraud.
“It was a massive fraud… a gigantic Ponzi Scheme, a lie and a fraud,” Davidowitz says of Wall Street circa 2007. “The whole thing was a fraud and it gets back to the accountants valuing the assets incorrectly.”
Because accountants and auditors allowed Wall Street firms to carry assets at “completely fraudulent” valuations, he says the industry looked hugely profitable and was able to use borrowed funds to make leveraged bets on all sorts of esoteric instruments. “Their bonuses were based on profits they never made and the leverage they never could have gotten if the numbers were right – no one would’ve given them the money in their right mind,” Davidowitz says.

To date, the accounting and audit firms have escaped any serious repercussions from the credit crisis, a stark difference to the corporate “death sentence” that befell Arthur Anderson for its alleged role in the Enron scandal.
To Davidowitz, that’s perhaps the greatest outrage of all: “Where were the accountants?,” he asks. “They did nothing, checked nothing, agreed to everything” and collected millions in fees while “shaking hands with the CEO.”

20 Responses

  1. BSE im working on proving this any help would be appreciated and sugguestions would be appreciated i have a case pending in district court AZ oral argument july 26th so pending so far, i have the strength to prevail ive been to hell n back, i know that place and the devil i know yeh you guessed it…the developer

  2. Michael Willis
    With your situation you seem to be the poster boy for originator fraud.. and if what you say is true about the property description being wrong from the beginning I don’t see how this can go foreward.. Please post a brief “need help” comment with your state and county , that’s probably the best way to find an attorney that “gets it” .. even if not listed here someone probably has a good contact name..

  3. Had this comment exchange at my blog today…….

    Comment on Pissed Off CountryWide Borrower has a Point by Foreclosureblues
    Today, July 04, 2010, 20 minutes ago | Foreclosureblues
    i understand where you are coming from, and you may very well be as right as anyone can be. I will say that I too believed in honor and justice for all at one time. But this particular war has just begun and there are casualties. In any war, casualties are heroic, but those who live to fight another day are sometimes more effective. Until shots ring out, we have got to fight on the conditions of battle as they presently exist, and that means that you and your family have to survive. You can’t throw yourself under the bus just to make a point.
    Not knowing the specifics of your case (I am not an attorney) it is hard for me to assess your probability of economic survival, which is my area of expertise. The question becomes, what is the highest probable action that can legally hurt them in your favor, with the least amount of cost, that allows you to survive financially. Based on what information you have described I believe that I know a simple strategy that an attorney friend of mine is using that focus’ directly on the mill itself, and so far has been very effective. If you would like to discuss this please call anytime 24/7, my contact info is in the ‘about’ page.

    Comment on Pissed Off CountryWide Borrower has a Point by David
    Today, July 04, 2010, 45 minutes ago | David
    My goal is to win our case – and use our case to shut down this foreclosure mill. I want to have them disbarred for filing false affidavits – forging signatures, forging notary, put them down like the rabid dogs they are.

    Our case has the potential to expose the dirty skidmarks in their underwear and I want to EXPOSE IT ALL for ALL to see. Our freaking house does NOT even meet code – pass inspection – or have a legal U&O – so the loan is illegal. This was done by the LENDER. It was pre-sold into as MBS which equates securities fraud – they’ve violated the REMIC Provision which is retro-active to the time of violation (2006) and that means their Pass-Through (tax exempt) status is revoked which carries a penalty of paying 100% income tax…

    I want blood from these bastards for attempting to steal our house. I want the money in their savings accounts for their great-great grand kids. I want everything they own and I want them left exactly how they attempted to leave my wife & I.

    My sincerest hope is to bust these lenders open so hard they gag having to write our check. They have stolen the last 5-7 yrs of our lives and my wife & I never broke the law. We never exaggerated our income and we did everything possible to settle this reasonably with respect. Each & every time we were stomped on – and they’ve made every attempt to drive us into poverty. Filing false affidavits – forgery – forge notary – etc – we have it all documented. Sitting down with a judge he told me he could probably force a respectable settlement of a few 100k or so… I got up and told him if that’s the outcome after what my wife & have lost and have been through – they can write that damn check out to al-Qaeda because that’s exactly where I’ll send it. There is no freaking way I am settling for anything less than for what they taken & destroyed – they better bring several big-ass checks or I’ll settle it my way. I got up and walked out. Pissed isn’t the word – these lying bastards tried to manipulate us and left us hanging. We had already gone through a hurricane that wiped out our house and the insurance company paid out 2500 bucks – I was ready to go shoot some bastards then… so now after this and knowing that these people conspired to commit fraud against us – even a local gov official involved and I have the documentation to prove it all…

    I want to help others being burned by these criminals and hopefully hire an attorney with the disposition of a junkyard dog to relentless rip into these lenders and take them down.

    If something isn’t done shortly, I think there will violence in the streets. IMHO – these lenders and foreclosure mills deserve everything they get to them and their families. Sounds crazy maybe – but until they understand the consequences will greater than any economical value, I do not believe they will ever stop. Strange – 10 yrs ago some one could not have convinced me that I would ever say something like that but after what we’ve been through and seeing the lies and manipulation first hand against my wife & I… not a freaking channce will ever trust them again. IMHO – this is now eye for eye – tooth for tooth – life for life and I have no intention of walking away or giving in to anything less than what “I” believe we should get. Otherwise – they better lock my ass up – because I will be coming for them…. We did not break the law – we did not lie – cheat or exaggerate a damn thing. This has cost us everything we own – now it’s their turn…

    Comment on Pissed Off CountryWide Borrower has a Point by Foreclosureblues
    Today, July 04, 2010, 3 hours ago | Foreclosureblues
    what is your goal…what are you trying to accomplish?

  4. Well, I recieved notice last week that I have another hearing set for 07/07/2010. I again am pro se in superior court against Fannie Mae and the 2 law firms they hired as council. I really need help but can’t afford an attorney much less, when I had saved up a little to hire an attorney, I couldn’t even get the opportunity to talk with one. I have always been turned away immediately and it has been extremely frustrating. I have been attempting to draft a wrongful foreclosure action along with adding the fraud committed by the original lender but damn, there is just so so much that has happened along the way and the laws seem endless even though I have studied in depth for the past 3 and a half years. I have withstood the bombardment of 6 attempts to take my home for the past 3 and a half years but I’m weary and worried about this next hearing although I should be able to stop the hearing from proceeding because of my appeal I made over 2 years ago has never been brought forth by the court and Fannie Mae is attepting to stand firm that they have voluntarily dismissed their action that I appealed from. Legally they can’t do that, right? I have been somewhat silent on those grounds and allowed the last hearing to come to trial about 2 months ago just to see exactly what they were going to use as proof that my home is the correct property foreclosed on June 5, 2007. I was able to recuse the judge that sat on the bench during the last hearing to months ago so now it is before a different judge. The reason they have supposedly dismissed the action that I raised appeal to, is simply that they had a survey done after the original hearing that I appealed from over 2 years ago but its my understanding that Fannie Mae wouldn’t be able to use that as evidence to show any proof that my home is the correct property by referencing the metes and bounds stated as exhibit A attached to the security deed because if the appeal still stands, they did not have it for that original hearing and they would only be able to have the same standing as what they had in that original hearing. So, I think that is why they say they dismissed that action and initiated a completely different claim. Anyone share that thought with me? Just before the last hearing 2 months ago, I submitted a motion to dismiss on the grounds of re judicata and also judicial estoppel but the judge continued with the hearing even after he confronted the attorneys for Fannie Mae and stated that they could not voluntarily dismiss my appeal to which the attorneys just laughed and told the judge that he would have to take that issue up with some other attorneys becuase he didn’t do the dismissal. So the hearing continued and their attorney also went on a rave about the case didn’t fall into any reasoning for res judicata to apply. I raised judicial estoppel because of the signed and sworn affidavits submitted to the lower court stating that it was a different property with a different address but now since they were sued for a wrongful eviction on that property that they supposedly proved ownership of, they now have this action that they filed sworn and signed affidavits that it is the property that my home is on with a completely different address. Shouldn’t judicial estoppel be a correct defense since they won the first hearing because the court took it as truth of the property they were after being the correct property that was stated on their affidavits even though I stated in open court that day that they were incorrect and I gave my correct property address and was called a lier and it was obvious I had moved from the property and had a different address now and wasn’t telling the truth to the court? How can they now attempt to take my home with a different property address than what they used in the first hearing they one? Just to note, the property address listed in the legal section to be foreclosed on stated a different street adress, different city, different zip code and I never recieved any notice of default or foreclosure because they were sending the notices to the wrong address. Also, the note and security deed both have that wrong address on them and actually that address doesn’t even exist anywhere and I gave the closing attorney and the bank notice at closing that it was all incorrect on their paerwork. I was told to sign it anyway because it had to close that day and that day only. The reason for this was, I believe, after studying the situation over and over I found all the fraudulent acts by the bank leading up to closing of the loan. It took over 5 months for them to close the loan even though the house had been completed that entire time. They sold the loan after signing. They had deposited over $13,000.00 into my account 3 days before the closing of the loan that I had no knowledge of, had transferred $10,000.00 of my debt 30 days before closing the loan into a third party name for 90 days obviously looking back on it now so they could hide that amount of debt from whoever would end up purchasing the loan from them after closing and the money deposited by them was to make me look more liquid than I actually was at the time. I had no knowledge of the deposit during that time and didn’t really understand the delay from closing the loan to permanent or why I had to pay construction loan interest for that 5 month period of waiting for them to close on the loan. I also recieved from the FDIC a copy of the original hand written in application for the construction permanent loan that I submitted which shows the change and drastic increase of my income amount by the bank VP. I was never aware that change made on my application until Irecieved a copy from the FDIC. The bank told the FDIC all my records had been destroyed and that I had lied about my income on the application which I did not lie at all but submitted the correct info but they changed it themselves after I submitted it. The bank also stated I was obviously not intelligent enough to understand that a deposit made after 2pm would be accounted for and applied the following business day but that wasn’t even the issue at all. The $13,000.00 was deposited in my account without my knowledge 3 days before closing of the loan by the banks VP and I have the handwritten deposit receipt with his signature on it and it stating that it was loan proceeds. It wasn’t and was hidden from me during that time. So, can anyone help me out on a quick draft for wrongful foreclosure and fraud and also a motion to enjoin the ongoing dispossessory so the dispo will be stayed until the fraud and wrongful foreclosure has been heard in court? I know its very short time but I beleive I can still get it submitted before wednesdays hearing. Pleae help if you can. I know I may have talked in circles in this comment on what is going on but I do have an extremely timelined accounting for every detail that has occurred and beleive me, this is just the tip of the iceburg. Everhome was the foreclosing mortgage company and they didn’t even file transfer of the security and note with the court until 3 months after the wrongful foreclosure. So what standing did they even have to proceed in the first place? It sucks to be having to fight Aa dispossessory action with no ability to bring forth the fraud and wrongful foreclosure in defense because of the way I’m viewed as a tenant at sufference although they didn’t even cry out or foreclose legally on the property that my house is on. Crazy but all of this is true. Anyway, thanks for any help anyone can give. Wish me luck!!! Ohh. Almost forgot!!! The loan number that Everhome stated as the correct loan number is a completely different loan number that I have never even heard of!! Is that legal to change the loan number or note number and then say that I defaulted on that loan number but I have never, ever signed a different note or loan number ever?

  5. Hi Mike,

    In a situation as you’ve described – where the borrower was overly optimistic there are several issues to be determined…

    The “Gullibility” is a real part of these cases – yet, is also very subjective. Gullibility that leads to a bad decision is exactly that – a bad decision. Thus the folks need to sell or take the hit. However, that does NOT negate any “illegal” actions by the lender/broker. That’s where I see the hypocrisy of the courts. It leaves the borrower holding the “ENTIRE” bag of bs – without any (or very little) liability with the culprit that KNEW and/or had reason to KNOW the likely outcome. Asking and receiving permission to take a young lady to her high-school Prom Dance – is NOT permission to gang-rape her after the dance. Gullibility also has an innocent aspect called naiveté… There are higher standards for certain so-called professions i.e. banker, lawyers, judges, loan agents, etc, for good reasons.

    If the borrower inflated their income, then they should bare the consequences… If the loan agent knew it, then they should be held accountable and prosecuted. If the lender knew the borrower could not afford the loan and inflated their income without the borrower’s knowledge, then that loan should be immediately rescinded and that loan agent should be prosecuted for defrauding the bank, state & federal governments.

    Here’s another point typically not considered… In most cases, these folks were given HIGHER interest rates because they were a higher loan risk. This is why the subprime loan was even created then usually offered – HOWEVER – because the loans were INSURED – they actually did NOT carry MORE risk to the lender.

    IMHO – The lenders controlled the entire ordeal – Borrowers may have been gullible, naïve, or just plain dumb, but none of that is illegal, OR at least it never used to be illegal. It used to be considered part of the learning curve. However, what the lenders were doing was much more heinous – even malicious. The borrowers were defrauded by a methodology schemed by the lenders that they had very little control or ability to figure out. Obviously if someone is only earning 25k per month and they sign docs for a loan with payments 80% of their income – they SHOULD know better and therefore loose the house. That’s called a dumbass risk… yet, again the lender MUST be held accountable.

    A Thought on Remedy
    If it were found that the borrowers knew they could not afford it but were naïve – yet, the lender hyper-inflated the appraisal – then inflated their income – the remedy could be – the loan is re-written to whatever that family could afford – in this case approx 70k @5% for 30ys = approx 375 per month.

    The Fed holds that note – the house is reappraised at the time of rewriting the loan – then again when and/or if the folks sell the house. The purpose of this would so that WHEN that house was sold the FED would be reimbursed. The lender is prosecuted and ordered to pay the FED the difference in the loan amount and final affordability amount held… So, in this case they lender would be responsible for reimbursing the FED for 125k – PLUS – all payments made by the family during the loan – THEN the loan agent should be jailed and have all personal & business assets striped.

    The most egregious part of the current ordeal is that the criminals that created this mess are being rewarded for the criminal acts. Thus far – 99% of the liability has been dropped on the borrowers.

    That’s the part I think is so freaking crazy – when these moms & dads now being forced to live in subsidized housing – kids falling into drugs from the drug infected neighborhoods – then learn they sold a loan that was all fraud and deception and lies… Sooner or later these will burst with outrage and RIGHTLY SO… When they learn that the courts denied them due process – that the lenders broke the law multiple times and then they took their houses – pocketed the money – and were reimbursed by the insurance – these folks will explode and they SHOULD.

  6. David

    We agree with your comments 100%. There is no recovery in sight for those who can afford the payment.
    Thus we are under house arrest in a deflated ghetto. Consequently, we have to either walk away or remain in usury. Again, this government prefers to punish the innocent and set the guilty free.

  7. I have worked on dozens of cases. The scam is
    always the same, create a debt out of thin air and then
    sell it to investors, keeping a hefty yield spread premium for the “correspondent lender”.
    A typical case in Tampa consisted of a 1928 wood
    frame house worth at most $25,000. Countrywide had
    it appraised at $200,000 and lent the money at 10%
    to a subprime borrower. The seller was a real estate
    company. Countrywide took in $400,000 from investors
    at 5% and pocketed $200,000 after lending half to the
    subprime borrower. The interest payment alone was
    $20,000/year. The borrower only grossed $25,000 so
    the interest was 80% of income. The application was
    falsified to show an income of $50,000/year.
    The gullibility of the buyer/borrower is hard to
    understand, but these subprime borrowers were
    over optomistic about future values and their income
    prospects. They were sold a dream which turned into
    a nightmare!

  8. It is common knowledge that the mortgage industry is pure racketeering and fraud. Securitization brought the fraud to a new level. Did banks know they were creating fraudulent loans to sell on Wall St.? Of course they did. I was there, I saw it. Did Wall St. know it was selling defective products? Of course they did.

    Did millions of ordinary Americans know they were being duped into doomed-to-fail mortgages? No.

  9. Hmmm, Interesting piece… Just a few thoughts…

    To assert that “millions upon millions” of borrowers suddenly some sort-of fraudulent mortgagitis and collectively began defrauding banks/lenders is more than a stretch – though I agree that is exactly what judges and most attorneys repeatedly assert… that is akin to blaming the store clerk as an accomplice because they opened the cash register drawer and handed all the money to the stranger wearing a mask claiming to have a weapon…

    The borrowers went to the lender to borrower. They did not nor do not have any control over the value of the property for the loan. The lender is required by law – banking, lending, regulation, contract, & policy, to do at least a minimum due-diligence when making a loan. How many people tried to get a loan prior to say – 1995 – and were turned down? How about before 1990-1985..? Being turned down by a bank was not uncommon.

    This is not about escaping consequence or responsibility on the part of the borrowers – however – let’s be clear – borrowers have ALWAYS wanted to borrower. That has not changed – so what changed? That is the real question and the answer exposes a whole host of illegalities – many of which have been broached on this website. What changed – well – some say the standards for obtaining a loan – some say the laws, etc. Both might be correct but the REAL CHANGE was the lenders IGNORING the laws and standards. WHY – that becomes the next question – WHY?

    What changed provides the answers for the path to destruction.
    Why provides the motivation for the changes.

    Neither answers to the above point to the Borrowers. Were some part of the problem – SURE – CERTAINLY – YEP – that is a fact. If I were to take a hair-brain guess – I’d say that maybe 5% or LESS was caused by the borrowers. The remaining rests squarely on the shoulders of the lenders.

    The truth of the matter is glaringly clear – the lenders saw a scheme for them to earn Trillions of dollars, but needed to create a method to distance themselves and confuse & frustrate anyone even attempting to slap them with liability. Thus entered the mortgage savior – the creation of MERS.

    IMHO – these mortgages are the EVIDENCE of the “inducement to fraud” by the lender upon the borrower. The borrowers’ signatures on those loans should be considered as FRAUDULENT. They were induced by fraud. This is why I say it…

    Here’s an example to show how massive the mortgage fraud truly is… keep in mind this is merely a “small sliver” of the mortgages…

    Countrywide created 142-billion dollars worth of mortgage loans that they KNOWINGLY sold to borrowers who COULD NOT REPAY. This is FACT – evidence already submitted by deposition and accepted and admitted by Countrywide.

    Those loans were sold to borrowers deceptively AND the borrowers did NOT know nor had reason to suspect they were being duped. Countrywide used teaser rates to induce the fraud – then amortized the loans CONTINUING to use the teaser rates – THEN if that did not wok to get them qualified they re-amortized the loans using 40 yrs and sometimes even 50-yrs – whiling giving the borrowers 30-yr docs – and in many cases “summarized” docs – so the borrower would have not known unless they reworked the amortizations themselves…

    At the same time – Countywide had 14,905 foreclosures on their books – the average foreclosure was 147k. Doing the math – that totals an approx 2-billion dollars.

    However – doing the math on the 142-Billion = is unimaginable. It means this – Countrywide created approx 965-Thousand “ILLEGAL” mortgages – SOLD those mortgages to borrowers that Countrywide KNEW could never repay. That means 965-thousand families tossed to the streets who DO NOT KNOW THEY WERE LIED TO – SCAMMED – CHEATED – and INDUCED BY FRAUD to sign those damn mortgage docs.

    How many of those families are being foreclosed RIGHT NOW – and the foreclosure mills KNOW these people were DUPED into signing?

    Countrywide sold the loans KNOWING these folks could not repay because Countrywide was cashing in on the mortgage insurance. The mortgage was sold into a cesspool along with 100s & 1000s of to the mortgages – where Countrywide then created Trusts – then sold those loans to the depositors – so now they also collect the “separate” mortgage insurance, securities insurance, bond insurance, default insurance, and the one I love most – SPECIAL HAZARD INSURANCE… Note – these are ALL separate insurance policies and the Special Hazard Insurance policy is the one that they use to FIX UP THE HOUSE and resell it – ALL at the insurance companies expense – so the lenders is paid – multiple times for the loan – then paid to fix it up – plus is reimbursed for all legal fees… NOW that explains WHY so many insurance companies went bankrupt and/or needed bailing out.

    So, now the lender disappears and the servicer steps up to the plate to come back and take the house that was SCHEDULED to go into default… Ever wonder how those conversations might sound behind closed doors at these servicers… Hmm, I can’t believe this family hasn’t defaulted yet… man, they must be working 4-5 jobs trying to bust their asses to save their house – what idiots – they’re too damn dumb to know they’ve been burned – it’s hard to believe they are working so hard trying to keep their home – I think I’ll just post-date their payments a few times – that should spin up the tension a little for their family – add a few more thousand dollars to the late payments even if they were never late…

    Yep, I’ve often wondered what these loan-modification folks think… Personally, I think if folks were willing to riot and burn over a Rodney King ordeal – THIS SHOULD START A REVOLUTION.

    For every borrower who was part of the scheme – I think there were 1000s who were not. I believe that because the focus of the loans were on SUBPRIME – and the answer to WHO was getting the subprime loans is easy enough to see… Those folks trusted those lenders – brokers. They believed they were getting a good deal – that the national economy was booming and housing was growing. They were LIED to and deceived.

    These lenders – foreclosure mills – debt collectors – should be exterminated – and treated as al-Qaeda – insurgent terrorists. They should be executed and their buildings left as blown-up terrorist training camps as a reminder for ALL NEW LENDERS & DEBT COLLECTORS. The only possible exception to execution would be to send them and their entire families to Afghanistan and allow them to live there – but they are literally dropped off with NOTHING – and anyone caught helping them via sending them money or relief will join them. They are never permitted to leave that country – ever or they will be shot on sight.

    They have deceived the masses – abused & betrayed the trust of the American People – and they should be EXECUTED AS TRAITORS TO OUR COUNTRY…

    But – that’s just my opinion…

  10. The fraud actually began in 1968. Degaulle was the
    first to complain about it in France in 1969 when the
    price of French farmland doubled in one year. He complained that France was being flooded with fiat
    currency originating in NY and was driving up the price
    of the land, which angered French farmers to no end
    who in turn blamed Degaulle of causing the inflation.
    This is what set off the crisis when the French
    started trading in US currency for gold and led to the
    devaluation of 1971.
    Congress sold out the American people in June
    1968 when they removed the gold reserve requirement
    for the issuance of Federal Reserve Notes and removed all US Notes and Silver Certificates from
    circulation. They allowed the banks to monetize the
    value of real estate which set off a world wide inflationary bubble which finally popped in 2008.
    The banks created the principal, but never the
    interest, so the debts were eventually unpayable.
    Since it was all “debt money”, as the debts get liquidated, an uncontrollable deflationary spiral is
    set loose, which is what is happening now. Gold
    is only being held up by fear, it will soon crash along
    with the price of everything else and the “gold bugs”
    will get a big surprise!

  11. The Joint Ventures between the banks, developers, and builders controlled the supply between 2002 and 2007 in Arizona. Pooled money increased the monetary supply Lotteries and Block releases hyper inflated the values. Not to mention the appraisers were willing to do anything to make the deal happen. So how does that figure to be a free market? There was nothing fair about it. Especially when the most sophisticated parties new the real story. No one else had a clue. Further, the Senators and a Governor had their head up their butts and promoted how much future equity the homeowners were going to gain. No more Budweiser for me.
    These heartless S.O.B.s would kick their own mother out of the house and onto the streets. I am still dam mad and do not think I will ever get over this…

  12. TW, on July 3, 2010 at 8:19 am Said:

    …. The problem (imho) won’t go away until we find a better solution for borrowing & lending.

    The solution has been around for centuries: free and fair supply and demand.

    Ditch intermediaries, blowing hot air at borrowers and lenders alike, messing up free and fair supply and demand, and the problems will be over within minutes.

  13. Fraud backed by the US Government – Graham, Clinton, Bush, and Greenspan. Further, the cover up continues with Obama. Not to mention a few governors and senators who took their share from the banking lobbyist to run for election and / or re-election. No one word from a certain senator or governor to resolve the mess in Arizona. Dam right I am mad as hell ! These S.O.B.s will not get my vote ! Nor my neighbors ! Nor my relatives ! Nor the Mexicans that are drinking Budwiser and living here in AZ legally !

  14. TW ,

    Securitization isn’t the problem … The problem is that the creators of the securitizations were the only people with the real numbers , the actual real money investors were lied to and defrauded and as GS/Lehman/Morgan Stanley/WF created the servicers and trusts and continue to hide the actual numbers (which is necessary from inception to the time the securitization is closed out or dissolved in order to escape detection) … The actual real money lenders are just now getting inserted into the cash stream as replacement servicing agents which has got to be scaring the hell out of the wall streeters… watch the courts.

    Securitization is A-OK if the process is out in the open.

  15. What’s more criminal stealing a car , or stealing a house .

    Grand theft felony for stealing a car. 5 years more or less in a state penitentiary . Usual car thief is poor , uneducated , and stupid .
    Usual house thief is highly paid , well educated , studied law , and an ” Officer of the Court ”
    Fraud is a crime … is it a crime ?? I am not to clear if it is……
    I don’t see much happening…no accusing , no police , no jail time …
    apparentely ” legal stealing” and using fraud is a sport for the well to do ” Officer’s of the Court ”

    Not for the small people …..the small people go to jail if they even steal a candy bar .


  16. I had been having a hard time coming to terms with this (the fraud on the borrowers part), when suddenly, I had an epiphany, which I would like to share:
    A lot of judges and other critics of the fraud on the borrowers part, point to the fact that the borrowers “got the money”, therefore owe the money, while the truth is that the borrowers did not get the money because it was paid to the sellers, who in turn paid it to their sellers when they bought that property (ad infinitum).
    Even if they refinanced and got some cash, it was on top of the purchase price (for example (using some very tame numbers), try to figure out the APR for someone who received $50,000.00 in a cash out refinance, but not “owes” S400.000.00 (which they will be on the hook for 30 years), because they over paid $100,000.00 for the property when they bought it (on top of the fact that most, if not all, of that cash out was or will be returned to the pretender lender in the form of inflated payments for an overvalued property).
    Sounds to me like a form of financial slavery.

  17. What are the alternatives to securitized loans? Is there a way for people to find financing that is NOT going to be used for securitization?

    The problem (imho) won’t go away until we find a better solution for borrowing & lending.

  18. what about our right to make a claim against title insurance companies???

  19. Also absent from the argument was the fact that the entire system was also based on obfuscating the truth via the tracking system known as MERS. The banks hid behind an electronic wall so no one knew who really owned their property. When MERS went on the Deed of Trust, the title to the homeowner’s property was slandered, because MERS in reality is just an electronic database, nominated by the lender to electronically record and shuffle paperwork at the lenders’ discretion. As you all know, it evolved into something more than that, to the detriment of both borrower and investor, but more so on this end to the borrower.

  20. Yes Sir…the problem is that the fraud’s participants have to continue as a matter of survival. And, the article suggests that this fraud was “2007”. What about 2XXX?

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