Lenders Face Lawmaker Wrath Over Foreclosures

November 14, 2010
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WASHINGTON/CHARLOTTE, North Carolina (Reuters) –
Banks under fire over their foreclosure practices face
twin hearings in Congress this week, at which they
will come under renewed pressure to find ways to
keep borrowers in their homes.

The hearings on Tuesday and Thursday will include
the first appearances by executives from major
lenders like Bank of America <BAC.N> and
JPMorgan Chase since the furor over
sloppy foreclosure paperwork erupted in September.

Banks are accused of having used “robo-signers” to
sign hundreds of foreclosure documents a day, a
fiasco that has reignited public anger with banks that
received billions of dollars in taxpayer aid during the
financial crisis.

Lenders will be pressed on whether the paperwork
problems are further evidence that modifying loans is
a better alternative to eviction.

“Foreclosure should be the last option and we need to
examine barriers to mortgage modifications,”
Democratic Senator Tim Johnson, expected to lead the
Banking Committee next year, said in an emailed
response to Reuters.

Other witnesses at Tuesday’s Senate Banking
Committee hearing include Iowa Attorney General
Tom Miller, who is leading a 50-state probe of
foreclosure practices.

Miller’s testimony will be closely watched. A
settlement with lenders could include fines or
commitments to loan modifications.

Bank of America and JPMorgan were among banks that
temporarily suspended foreclosures pending internal
reviews of their practices, but have since begun to
resume sales of foreclosed properties.

Some lawmakers and consumer activists called in
October for all lenders to institute a national
moratorium on foreclosures, but they failed to gain

traction due to fears it would further depress home
sales and crimp economic growth.

Real estate data company RealtyTrac said the
temporary suspensions by banks led to a 9 percent
drop in U.S. foreclosures in October from the month
prior.

Republican Representative Spencer Bachus, the front-
runner to be chairman of the House Financial Services
Committee next year, said the paperwork problems
are “disturbing,” but singled out federal regulators for
criticism.

“It is disappointing that the regulators didn’t catch
this before the media since most of the problems in
the contested foreclosure proceedings occurred at
the nation’s largest banks,” Bachus told Reuters in an
email.

The House panel’s foreclosure hearing is set for
Thursday.

COST TO BANKS

The mortgage paperwork mess threatens to eat into
bank profits by delaying sales of bank-owned
properties, drawing fines from regulators, and
spawning lawsuits from both homeowners and

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By Dave Clarke and Joe Rauch

20 Responses

  1. usjustice4all

    Most of us know little about organizing a major march on DC.

    Also, if we are stretching our budgets to try to hire an attorney, we don’t have funds for a trip to DC. That is where the bankers have all the advantages.

    Too bad the only involvement by the ACLU seems to be in the FL courts that were denying public access to the court proceedings.

    We need them to help us. I wonder if they could assist in organizing a movement and peaceful demonstrations?

    What Wall Street has done should be characterized as UN-AMERICAN and the messy foreclosure documents are an unjust trampling of our constitutional rights.

  2. Foreclosure paperwork miscues piling up

    CitiMortgage paid off, Attorney still trying to foreclose after Judge says NO…I have wrote to the AG several times, he has ignored ALL and EVERY letter that we have sent to his office since May of this year. Yet he claims he is “looking into the foreclosure mess” no he isn’t! He is ALL talk and no action. He is like all Government officials (but two) who say one thing and do another. Why is this so difficult? Why isn’t anything being done? I am just starting my crusade on getting what is rightfully ours..

    http://www.denverpost.com/search/ci_16601567

    Respectfully submitted
    Brent and Wendy Diers

  3. THE LOCAL COURTS NEVER HAD ANY JURISDICTION OVER A FEDERAL SUBROGATION CLAIM PAID FOR BY US TAXPAYERS. http://www.forelcosurewebpage.com

    M.Soliman
    expert.witness@live.com

    Press Release / November 16, 2010; Los Angeles, Calif – – – As you entered the court you did so as you left. “Ignorant”. Defendants who are Ignorant of the facts cannot rely on the judicial process we love so much. Its not there to give homes away!

    Our system does reward those who elect to Think, Think and Think. We did not fight the system but walked in the back door. That’s the door to the Dept of Treasury or “Receiver” or similar appropriate agency approach. The system was liquidating homes that your were eligible to receive. ..And while you talked to a boiler room.

    These foreclosure claims in Superior court were deceiving you while an earlier Federal Circuit Court ruling allowed for a judgment to remain in place.

    Case law . . . you asked me time and again for case law. Case law – Enron; Tyco; Adelphia; World Com; Nigerian Barge Case (Wall Street criminal prosecution).Philadelphia newspaper; Lehman Bros. Fed. Trustee Investigation; Craig Electronics

    The Horror of Audits, QWR and MERS
    The Horror of guessing….Audits, QWR and MERS added up equals nothing! You were our cases and over 20 wins! You write them off as “whatever” and then talk about things that are not relevant. Then you contemplate and consider more irrelevant things.

    As of late these web Mortgage Relief Chit Chat Clubs continued discussions have little meaning or effect on the cause. People attack the messenger again and again; maybe I am closer to the other side than you think! And maybe I am still here because my cause was never to save a home. It was to expose and punish Wall Street for crimes that caused me to leave the industry as the right thing to do.

    I said i was going to fight back and have and will continue. There and then you get you home and maybe…maybe even more.

    Our data was accurate like a surgeon or purveyor of the real and hard hitting evidentiary needed to overcome the real lenders who are MERS and the FDIC. A Trustee or agent is not a debt collector. They are FDIC subrogation claims agents and government contractors.

    I believe you gradually win back a home. Spoon feed the court the truth in all this garbled and ambiguous language. You may win ten times the award if you let go of possession.

    If my message was too hard to understand and too difficult to comprehend, i get nailed ot the tree. I mean the things people say ….wow! Am I lecturing you? No not at all. Look, there are a series of dominos dropping here and now they shall fall faster and faster. Are your remedies and rights done with? No way.

    If your clueless or do not have the time to learn things i have spoke of in past when publishing – i.e. Derecognition, sop fas140, 1122AB, derivatives and beneficial interests, MERS, basis accounting in assets held, mark to marketability, Contribution of Loans as Capital , FIRRA violations, financial versus beneficial interests….

    If you don’t know by now . . . Then you’re in trouble. This is a sector of finance way too broad and difficult to understand. And many people tried to learn and profit from this mess by taking advantage of others. They were not equipped to do what they did.

    These audits, i never believed were worth anything and the government told you this. QWR?

    _ S*T*O*P_please let it go! Like they say in maritime law journals “Sail”! That’s the sucker play. That’s the rip off “Mas ma”.

    Robo signatures, pretender benders, fender lenders, protest and molest to digest, cream of wheat…. There is nothing there. And know this – You will never prosecute the culprits (sorry raja). You will never prosecute a Robo Hobo signature.

    Karl Kop is an attorney who took a lot of heat fighting the good fight. We both never relinquished our storylines…and now look where we all are. It’s just too late in the game for many to get up to speed.

    As Kop said today, “…do they (government) really think they can immunize the culprits here for criminal acts and allow the criminal conduct to stand in to affirm all these wrong decisions? Judge after judge and court after court across this nation failed us. They did not want to hear us. Wow. What a judicial mess i see coming on the state court level with appeals and claims of lost due process.

    And yes, time to let some judges go home.

    I have at least a dozen affirmative defenses for the preemptive strike coming January 1st 2011. Obama will announce MERS is federalized and now on par with Fannie and Freddie. These foreclosures were a smoke and mirror procedure to rob you of quieting title. (Robo signatures— who cares. The local courts never had any jurisdiction as you entered the court with a FEDERAL CIRCUIT COURT ruling and judgment in place.

    And you kept calling ‘them” asking for relief and modifications. They lost your seventh file? What’s that…, Yes? Send them another, and another and another . . . . Oh lord…why?

    But that’s okay.

    There are still a landslide of opportunity and hope for saving homes and receiving settlements for these acts. It’s no longer about civil torts or tortuous interference, Mis joinder of parties, estoppels and laches. Now it’s about exposing the process for what it really is.

    First – securitization rewards borrowers who do not make the payments – it’s a fact! Second – on the “reverse side” they must repurchase the loan which violates FAS 140. Third – the process ends with no condition precedent using a Credit Bid

    It’s a sham…Let’s get to work!

    M.Soliman
    expert.witness@live.com
    http://www.forelcosurewebpage.com

  4. after a good 3 years of this and we have not marched to DC at one time. Let’s pick a date. I am too worn out emotionally to blog anymore. I want to SHOW them!!

  5. It is my understanding that it was the lawfirms handling the foreclosures that were robo signing, not the banks themselves. For all the Fannie Mae loans the banks were servicing Fannie Mae provided a “retained attorneys” list which the banks must use. So Fannie Mae told banks to foreclose and set strict time limits to do so. They also chose which attorneys banks could hire for the foreclosure process. When the attorneys chosen by Fannie Mae turn out to be crooked and the banks do what Fannie Mae is telling them to do,it’s somehow the fault of the banks?

  6. This stuff is phony BS, nobody in government gives a damn about the People and posting CRAP like this gives everyone the FALSE impression that things are improving. Please read the article to the bottom link…

    “Banker Hit and Run… left the bicyclist for DEAD. He was found, but the police have opted to NOT charge him with a Felony of Hit and Run and only with a Misdemeanor, because they say it would “Hurt His Job and Pay”!!… The bicyclist had a severed spinal cord and bleeding in the brain!”

    http://sherriequestioningall.blogspot.com/2010/11/words-can-not-describe-what-i-think.html

    original story from Huffington Post

    http://www.huffingtonpost.com/2010/11/08/martin-erzinger-morgan-stanley-hit-and-run-_n_780294.html

  7. Chris Dodd has a conflict of interest issue He needs to be exposed.

    NEVER AGAIN

  8. This is a must see. Senate Hearing on foreclosures Attorney General Miller and Professer Levitin is a must see about one hour and fifty four minutes into it.

    We need Mr. Garfield and his crew also.

    http://www.c-spanvideo.org/program/296595-1

  9. http://www.scribd.com/doc/42848458/NDEX-LETTERS-TO-PLAINTIFF-ALL-Letters-Patel-All-06-24-10

    They fight to keep the truth out of the record.

  10. Get Anderson Cooper 360 CNN – he loves ‘keeping them honest’ – I bet he could get a lot out there if given a chance.

  11. How did we get to this point again in less than 2 weeks? We have evidence from the start to the finish. If they try to blow this over and sugar coat it again we are finished as a nation. Take the hit and move forward, the horse is already out of the barn.We will not leave no matter what you do,possesion is 9/10th’s of the law.And we have it.

  12. I only caught an hour of the proceedings, but it sounded very sanitized to eliminate the actual causes and true abuses. Funny how the BoA spoke talked about not wanting to foreclose when they make more money doing it? How about the nice gentleman that denied they make money as servicers, when we know they pick up the biggest share if they foreclose?
    The white paint isn’t dry and Tom Sawyer has gone down river.

  13. WHAT wrath are the banks feeling?

    The OCC is in the banks hip pocket, no make that breast pocket. He gets thumped every time they beat their chests over how hard they have worked to put people into mods.

  14. CALL YOUR ag’S AS WELL

  15. DIANA DO AN ACTION TO QUIET TITLE. NO LEGAL ADVICE JUST A THOUGHT

  16. Diana
    do not be discouraged. even tho you have been evicted…you can still fight in court to regain your property

  17. What needs to happen next is a rock solid defense for all.
    In other words have all of the defenses for foreclosure all ready done for all to download. This would include all discoveries and all interrogatories . With all rebuttals so that normal American’s could fight the fight with very little money out of pocket. This would put the power back into the hands of the people. Could you imagine over 1 million Americans being empowered. The person our law firm that would do this first would go down in history as being true American Hero’s.

  18. These blogs and comments are good and informative. The truth is the banks are winning and homelessness is increasing. I had 100% proof of fraud, every document was robo-signed. Proof of collusion with MERS, Aurora and Cal Western.
    Net result – I LOST – Aurora hoodwinked the judge and he granted their writ to evict me. But, I did what I could and fought the best way I knew how. Bottom line, congress and other will keep talking and talking while homelessness increases. The banks and servicers will go scott-free. And that is the truth.

  19. We need moratoriums in non judicial states until this is all sorted and resolved.

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