WRONG WAY FHFA

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S NOTE; THE FOCUS CONTINUES TO BE IMPROPERLY DIRECTED TOWARD SPEED RATHER THAN ACCURACY. COMPLETELY ABSENT IS A REPORT OF DUE DILIGENCE, THE AUTHOR OF THE REPORT, THE SIGNATURE OF SOMEONE, AND THE A COPY OF THE REPORT SO THE REPORT CAN BE CHALLENGED IF NECESSARY. THE CONTENT OF THE REVIEW IS NOT SPECIFIED, BUT ONLY THAT THERE BE A REVIEW.

IT LEAVES TO THE SOLE DISCRETION OF THE PARTY CLAIMING TO BE AUTHORIZED TO BE FORECLOSED, WHETHER THEY ARE IN FACT AUTHORIZED, AND WHETHER THE PAPERS ARE IN ORDER. THIS CREATES A WHOLLY UNWARRANTED PRESUMPTION THAT ONCE SUCH A REVIEW IS COMPLETED, THE FORECLOSURES CAN AND SHOULD PROCEED BECAUSE THE FORECLOSING PARTY SAYS SO. THIS IS 180 DEGREES CONTRARY TO THE DIRECTION THAT SHOULD BE TAKEN. NOW THE FHFA IS TAKING ON A JUDICIAL FUNCTION AND PRESUMING THAT IT IS ONLY THE PAPERWORK THAT IS FAULTY, NOT THE LOAN.

Statement By FHFA Acting Director Edward J. DeMarco On Servicer  Financial Affidavit Issues

“On October 1, FHFA announced that Fannie Mae and Freddie Mac are working  with their respective servicers to identify foreclosure process deficiencies  and that where deficiencies are identified, will work together with FHFA to  develop a consistent approach to address the problems. Since then, additional  mortgage servicers have disclosed shortcomings in their processes and public  concern has increased.

Today, I am directing the Enterprises to implement a four-point policy  framework detailing FHFA’s plan, including guidance for consistent remediation  of identified foreclosure process deficiencies. This framework envisions an  orderly and expeditious resolution of foreclosure process issues that will  provide greater certainty to homeowners, lenders, investors, and communities  alike.

In developing this framework, FHFA has benefitted from close consultation  with the Administration and other federal financial regulators.

The country’s housing finance system remains fragile and I intend to  maintain our focus on addressing this issue in a manner that is fair to  delinquent households, but also fair to servicers, mortgage investors,  neighborhoods and most of all, is in the best interest of  taxpayers

Four-Point Policy Framework  For Dealing with Possible Foreclosure Process Deficiencies

1. Verify Process — Mortgage  servicers must review their processes and procedures and verify that all  documents, including affidavits and verifications, are completed in compliance  with legal requirements. Requests for such reviews have already been made by  FHFA, the Enterprises, the Federal Housing Administration, and the Office of  the Comptroller of the Currency, among others. In the event a servicer’s  review reveals deficiencies, the servicer must take immediate corrective  action as described below.

2. Remediate Actual Problems — When a servicer identifies a foreclosure process deficiency, it must be  remediated in an appropriate and timely way and be sustainable. In particular,  when a servicer identifies shortcomings with foreclosure affidavits, whether  due to affidavits signed without appropriate knowledge and review of the  documents, or improperly notarized, the following steps should be taken, as  appropriate to the particular mortgage:

a. Pre-judgment  foreclosure actions: Servicers must review any filed affidavits to ensure  that the information contained in the affidavits was correct and that the  affidavits were completed in compliance with applicable law. If the servicer’s  review indicates either (a) that the information in a previously filed  affidavit was not correct or (b) that the affidavit was not completed in  compliance with applicable law, the  servicer must work with foreclosure counsel to take appropriate  remedial actions, which may include preparing and filing a properly prepared  and executed replacement affidavit before proceeding to judgment.

b. Post-judgment  foreclosure actions (prior to foreclosure sale): Before a foreclosure sale  can proceed, servicers must review any affidavits relied upon in the  proceedings to ensure that the information contained in the affidavits was  correct and that the affidavits were completed in compliance with applicable  law. If the servicer’s review indicates either (a) that the information in a  previously filed affidavit was not correct or (b) that the affidavit was not  completed in compliance with applicable law, the servicer must work with foreclosure  counsel to address the issue consistent with local  procedures. Potential remedial measures could include filing an  appropriate motion to substitute a properly completed replacement affidavit  with the court and to ratify or amend the foreclosure judgment.

ci. Post-foreclosure sale (Enterprise owns the property): Eviction actions:  Before an eviction can proceed, servicers with deficiencies must confirm that  the information contained in any affidavits relied upon in the foreclosure  proceeding was correct and that the affidavits were completed in compliance  with applicable law. If the servicer’s review indicates either (a) that the  information in a previously filed affidavit was not correct or (b) that the  affidavit was not completed in compliance with applicable law, the servicer must work with foreclosure  counsel to address the issue consistent with local procedures before the  eviction proceeds. Potential remedial measures could include seeking an order  to substitute a properly prepared affidavit and to ratify the foreclosure  judgment and/or confirm the foreclosure sale.

cii, Real  Estate Owned (REO): With respect to the clearing of title for REO  properties, servicers must confirm that the information contained in any  affidavits relied upon in the foreclosure proceeding was correct and that the  affidavits were completed in compliance with applicable law. If the servicer’s  review indicates either (a) that the information in a previously filed  affidavit was not correct or (b) that the affidavit was not completed in  compliance with applicable law, the  servicer must work with foreclosure counsel to address the issue  consistent with local procedures and take actions as may be required to ensure  that title insurance is available to the purchaser for the subject property in  light of the facts surrounding the foreclosure actions.

d. Bankruptcy  Cases: Servicers must review any filed affidavits in pending cases to  ensure that the information contained in the affidavits was correct and that  the affidavits were completed in compliance with applicable law. If the  servicer’s review indicates either (a) that the information in a previously  filed affidavit was not correct or (b) that the affidavit was not completed in  compliance with applicable law, the  servicer must work with bankruptcy counsel to take appropriate remedial  actions.

3.  Refer Suspicion of Fraudulent Activity — Servicers are reminded that  in any foreclosure processing situation involving possible fraudulent  activity, they should meet applicable legal reporting obligations.

4. Avoid Delay — In the absence of identified process  problems, foreclosures on mortgages for which the borrower has stopped  payment, and for which foreclosure alternatives have been unsuccessful, should  proceed without delay. Delays  in foreclosures add cost and other burdens for communities, investors, and  taxpayers. For Enterprise loans, delay means that taxpayers must continue to  support the Enterprises’ financing of mortgages without the benefit of payment  and neighborhoods are left with more vacant properties. Therefore, a servicer that has identified  no deficiencies in its foreclosure processes should not postpone its  foreclosure activities.

FHFA will provide additional guidance should it become necessary.

————————————-

Notice I called attention to the phrase “the servicer must work with  counsel”. I am not sure if this guidance was intended to be a  solution or not.  If it was, it seems like the borrowers who have claimed  to be victims of  “robosigning” will still need to be dealt with  individually, on a case by case basis, which tells me only time will heal this  problem.  It also means borrowers must be willing to work with servicers.  This is a technicality that can be corrected if all parties involved are  willing to play ball. Unfortunately common sense tells me that borrowers will  not give in without a fight.

The FHFA made the consequences clear/guilt tripped all the robosigned  folks…

“Delays in foreclosures add cost and  other burdens for communities, investors, and taxpayers. For Enterprise loans,  delay means that taxpayers must continue to support the Enterprises’ financing  of mortgages without the benefit of payment and neighborhoods are left with  more vacant properties. Therefore, a  servicer that has identified no deficiencies in its foreclosure processes  should not postpone its foreclosure activities.”

Foreclosures should go as scheduled if the servicer has all their ducks in  a row. Lets get on with the correction process already….

(View  More <http://www.mortgagenewsdaily.com/10132010_robosigning_fhfa_fix.asp> )

11 Responses

  1. This is just more of the same as with my own loan with AHMSI that no matter how many documents you send in and no matter how much time is spent, they do not cooperate and continue to tell you that you need to send them more money. This is just more of the same in the ole debt collection merry-go-round. They are also making it appear to the public at large that once again the borrower is a dead beat jerk who is sucking the public trough. It is basically the same techniques that debt collectors use. You are unworthy of being alive. Their entire business model is created to operate outside the law. Your editorial comment illustrates those same practices.

  2. In a az newspaper there are notices posted foreclosing in the name if MERS as beneficiary STILL. These foreclosure mills don’t give a fig why dontt they give a fig. Why do they feel so secure are they truely convinced that they are doing their job well they are party to the destruction of society trust and common law

  3. LMAO @ this:

    “The equivalent of trying to get the Crips and the Bloods to abide by the Marquis of Queensbury Rules at a street fight.
    “Everybody play nice now. I’ll be back later to check up on you boys.”

  4. These hateful banks and FHFA are falsely propagandizing that, pursing foreclosures are going to ‘save’ neighborhoods. Kicking a jobless family out, and taking their kids away from their friends and environs, does not ‘save’ neighborhoods.

    The Bankers have repeated this lie about 100 times in the last three days in all major media, including the WSJ & CNBC.

    No, the endless foreclosure funds ‘save’ the corporate bank servicers from the scrutiny of their innumerous felonious Ponzi schemes.

    We the Livinglies readers, need to constantly counteract all claims of ‘saving neighborhoods and housing’, through ‘foreclosures’…. It’s an outright bold-faced self-serving lie every time.

    Instead, liquidate ALL of the foreclosing banks including Goldman Sachs for FRAUD. Nullify their foreclosures*, transfer their remaining liquid assets to the depositors, and any remaining profits, assets, & buildings prorata to the cheated pension funds.

    That’s how you honestly ‘save neighborhoods’, housing prices, families, and our beloved America while you’re at it!

    Counteract the Lies!

    *Carpenter v. Longan 83 U.S. 271, at 274, “…an assignment of the latter alone is a nullity”

  5. Na. This mess is so big and complex that it will take along time to clean up. We must be vigilante and get our message out. There are people that still dont get it.

  6. It might be time to impeach Barak Obama.

  7. how can they even talk abou doing this !!!! ” Potential remedial measures could include filing an appropriate motion to substitute a properly completed replacement affidavit with the court and to ratify or amend the foreclosure judgmen”

    this is what im talking about , no jail time , no prosecutions, no law enforcment, no dissmisal of case, no TRO’s , what is this country coming to , they just want to replace all the fraudulent paper work now , and that makes it ok?, ! All those lawyers for the banks should be disbarred and thrown in jail for presenting false affidavits and false and made up notes , allonges …etc, The remedy for fraud upon the court should be atleast a dissmisal.

    When you bring a false doument in court, and the Judge notices , he Crawls on the walls , he wants to eat your children , rip your head out …. but when a bank comes along and does the same thing the judge is tolerant to the situation , everything is allraight as long as they correct the paperwork “destroying evidence of fraud i guess in this country is not illegal.

    They have taken eveything from us, and now they will implement the new rules as they see fit “WITHOUT RECOURSE”.

  8. Chase should be on “COPS” bank presidents being chased on the highway by state troopers!
    Al Capone and all the gangsters, at their worst, comes off like a choir of angels compared to Chase, BoA, Wells Fargo and the rest!
    They have stolen billions since this debacle began, tens of billions!
    It’s like being raped every night and the cops keep blaming you, if you go to court the judge refuses to believe anything you say and you try to put you in jail for being raped!
    Meanwhile your rapist is free and going thru town, breaking into homes, raping men, women and children, with no fear of anyone stopping him!
    Being illegally foreclosed on and evicted is equal to being raped, and raped repeatedly.
    It’s a major trauma to move under good circumstances, imagine being evicted illegally!
    I believe that if the banks hadn’t tried to evict a Senator for asking questions about her mortgage, things would still be undercover and homeowners treated like deadbeats.
    I hope and pray that all the investors and groups that bought MBS and CDO’s and anything else the banks were bundling and selling, I hope that they sue them for every dime they ever made from now until Jesus comes back! I hope and pray that the banks pay back every cent they stole, every house they took and make up for every family displaced since 1995!
    Let them see how it feels to be under constant attack from all sides, to lose, to be treated like the criminals they are, to have no mercy, no leniency shown, to be imprisoned and denied your freedoms.
    That might begin to make up for the damage that has been done to our nation and people!

    smib

  9. Well, well I’m not too surprised, it was evident which way things were going to turn last week.
    First the media keeps saying that it’s only the paperwork, that it couldn’t be major fraud committed by the banks, they were only trying to take care of business. Just a few renegade notaries and overworked managers.
    Then everybody who had something to do with foreclosures started pointing fingers at everybody else.
    Next step was to promote the idea that we must give the banks the benefit of the doubt and that the deadbeat homeowners are the root of the problem and if some hadn’t fought against being thrown out for their own negligence and desire for a free home, none of these problems would have ever surfaced.
    Homeowners were wrong to buy, wrong to expect honesty and fair treatment, and too stupid to understand that banks are gods.
    How dare we complain that just because we got cheated, lied to and conned into mortgages the banks knew were bad and would fail.
    Our job is to pay, and pay and never complain, never question the banks, and to pack up and leave quietly when we are foreclosed on.
    The banks have been running the mortgage show for too long, all the information has been coming from them on how and what is supposed to be part of the process.
    It’s the lender’s ballgame and they are still calling the shots.
    WHY THE RUSH TO FORECLOSE ON MILLIONS OF HOMES IMMEDIATELY?
    WHAT IS THE RUSH?
    WHAT WILL HAPPEN IF THERE IS A MORATORIUM, WILL SOMETHING ELSE ILLEGAL BE REVEALED?
    The banks have been trying to cover their asses since spring when the PRODUCE THE NOTE became widespread. They have been recording sales at the county since spring. They had already pushed thru a bill to wipe out anything illegal the banks did, make everything they did legal and justified!
    They did this back in APRIL AND ZAPPED IT THRU THE SENATE ON SEPT. 28TH.
    THANK GOD PRESIDENT OBAMA REFUSED TO SIGN THE BILL!
    Tell me that all that wasn’t intentional, that they weren’t trying to cover their asses?
    TELL ME!
    Everyone that has faced foreclosure should be filing lawsuits against all the lenders, taking back their homes any way they can, filing quiet titles and satisfaction of mortgage and quit claim deeds.
    We need people reporting what has happened to them, expose all the things we have been victimized with.
    I’m tired of trying to go by the rules, and I refuse to stay down just because they blindsided me and knocked me down!
    I’ve already lost everything, I’ve nothing more to lose, I won’t go quietly and I’m not alone!
    WE NEED TO STAND UP AND FIGHT BACK, SCREAM FROM THE STEPS OF EVERY CITY HALL THAT WE HAVE BEEN ROBBED AND PRESS CHARGES AGAINST THE THIEVING BANKERS!
    TO HELL WITH BEING PEACEFUL AND PATIENT WITH THESE BRAZEN THIEVES!
    NO MORE PLAYING MIND GAMES AND CATCH ME IF YOU CAN.
    WE HAVE CAUGHT THEM RED HANDED AND THEY SHOULD GO TO JAIL.
    THEY ARE TRYING TO CONVINCE THE WORLD THAT WE DESERVE TO LOSE OUR HOMES, THEN WE NEED TO DEMAND THAT THEY DO HARD TIME IN JAIL FOR FRAUD AND TAX EVASION.
    YES, THEY HAVE EVADED PAYING CITY AND COUNTY TAXES ON EVERY MORTGAGE THEY FAILED TO RECORD, FOR EVERY SALE OF THOSE SAME MORTGAGES, OVER AND OVER.
    DO YOU THINK ONE OF US WOULD BE ALLOWED TO GET AWAY WITH OUTRIGHT STEALING THIS WAY?
    NO, NO NO, NOT EVER!
    WHY ARE THEY BEYOND THE LAW?
    I’m surprised that families haven’t taken over a bank branch, camped out in the lobby after throwing out the staff!
    You take my house, I’ll take your bank!
    I will tell you one thing, if the FEDS and the AG’s allow these gangsters to get away with a wrist slap, it will be the end of America as we know.
    The legal system will fall apart, the rule will be CRIME DOES PAY!
    WHO WILL OBEY LAWS THAT ARE MEANINGLESS?
    HOW WILL THEY CONTROL THE PEOPLE, CONTROL ANYTHING OR ANYONE, IF THEY LET THE BANKS AND LENDERS OFF SCOT FREE?
    IT WILL BE TOTAL ANARCHY AND CHAOS!
    THE BANKS ARE LEADING THE WAY TO DESTRUCTION!

  10. The “GSE Business Model” the genesis of it all. De Marco is derelict in his duty as all of this has been in the “guides:” for years. Just one problem, since day one, no one audits for compliance with the “guides”.

    De Marco wants to appear “to be doing something”. Lock their front doors and all will be better off.

  11. Seems to me that they still have to comply with “local” procedures, aka state rules of evidence and the UCC as applicable. Methinks these guys are clueless as to the real state of affairs. The equivalent of trying to get the Crips and the Bloods to abide by the Marquis of Queensbury Rules at a street fight.

    “Everybody play nice now. I’ll be back later to check up on you boys.”

Leave a Reply

%d bloggers like this: