BLOOMBERG: INVESTORS PUSHING FOR SETTLEMENTS AND MODIFICATIONS

Foreclosure Probe Talks Include Investors Urging Resolution

By Margaret Cronin Fisk and David McLaughlin – Nov 24, 2010 10:01 PM MT Thu Nov 25 05:01:49 GMT 2010
Foreclosure Probe Talks Include Investors Urging Resolution

All 50 U.S. states are investigating whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures. Photographer: Jacob Kepler/Bloomberg

Mortgage-backed securities holders are pushing for a resolution of a 50-state probe of foreclosure practices, attorneys general in Iowa and Arizona said as talks with lenders and servicers expand to include investors.

“The mortgage backed securities are worth pennies on the dollar, so any kind of recovery would be better,” Arizona Attorney General Terry Goddard said in an interview. Owners of mortgage-backed securities are “one of the players urging a resolution,” he said. State officials have begun informal talks with some investors, Iowa Attorney General Tom Miller said.

All 50 U.S. states are investigating whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures. The probe, announced Oct. 13, came after JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC mortgage unit said they would stop repossessions in 23 states where courts supervise home seizures and Bank of America Corp., the largest U.S. lender, froze foreclosures nationwide.

The probe has since widened to include other mortgage practices, with attorneys general suggesting any potential resolution should include improving the loan modification process, barring foreclosures when people are modifying loans and creating a general fund to compensate homeowners who may have been victims of wrongful foreclosures.

“Robosigning was the straw that broke the camel’s back,” Goddard said, referring to the practice of loan servicer employees signing thousands of documents without determining if they were accurate. “It was proof positive that it wasn’t just in one state and virtually every financial institution was complicit.”

Expand Their Talks

Miller, the leader of the 50 attorneys general in the investigation, said Nov. 23 that the states plan to expand their talks with investors to face-to-face meetings.

“They are an important part of the resolution,” he said in an interview.

Dallas attorney Talcott Franklin and Houston lawyer Kathy Patrick, who represent investors in mortgage-backed securities, didn’t return calls or emails seeking comment.

A group of investors coordinating through Franklin’s RMBS Investor Clearing House owns at least 25 percent of voting rights in more than 3,000 mortgage securitizations, he said Nov. 12. Patrick represents bond investors including the Federal Reserve Bank of New York and BlackRock Inc., which are seeking to force Bank of America to buy back bad home loans.

No Quick Accord

A quick settlement is unlikely, Miller said.

Reports of a quick resolution are “totally wrong,” the Iowa official said. “It’s going to take a little longer.”

The interests of some investors are one obstacle to a quick settlement, said Miller.

Pooling and servicing agreements may dictate rights on loan modifications, and there are restrictions on gaining approval for adjustments on portfolios owned by government sponsored enterprises, such as Freddie Mac and Ginnie Mae.

“We’re working with our federal partners” to resolve this, Miller said.

Laurie Goodman, an Amherst Securities Group LP analyst, said at a conference in October that investors owning mortgage- backed securities fear any settlement with the attorneys general will involve “a large scale modification effort” that hurts bondholders. This reluctance isn’t universal, Miller said.

“Some of them tell us they’re not opposed to modifications,” he said.

Payment Beats Foreclosure

Investors are realizing that “foreclosure takes them out of the picture,” said Arizona Attorney General Goddard. “It’s far better to have someone pay, even if it’s a reduced value.”

Banks have suggested the securities owners may block a settlement that includes loan modifications, said Chris Katopis, executive director of the Association of Mortgage Investors.

“The servicers are painting us as a convenient patsy,” he said. “We find it absolutely inaccurate that we’re holding up the modification process.”

The mortgage investors oppose eliminating the so-called dual track, in which homeowners can be facing foreclosure while being considered for a loan modification, Katopis said.

“The dual track is a tool for avoiding foreclosures,” he said in a phone interview. “You have to hold people’s feet to the fire somehow.”

Iowa’s Miller rejected that argument, saying “dual track is fundamentally a bad practice. It creates great anxiety and uncertainty for the homeowner. The problems in modifications have not been to get homeowners to agree.”

No Global Accord

Miller has said that there wouldn’t be a global settlement of the 50-state investigation.

“It would be one bank at a time,” he said on Nov. 8.

A universal settlement is unlikely because the banks and servicers have been “all over the board” about whether they have a problem with their foreclosure procedures or whether they’ve done anything wrong, said Mark Kaufman, the Maryland Commissioner of Financial Regulation.

While the 50-state group has begun talking to banks as part of its investigation, individual attorneys general are continuing with separate probes.

Illinois Attorney General Lisa Madigan is reviewing information provided by mortgage companies, spokeswoman Robyn Ziegler said. The office demanded information from 26 companies, including Wells Fargo & Co. She declined to comment about which companies have provided information or about any meetings with them.

“We’re reviewing information they provided to us, and we’re in discussions with them,” Ziegler said.

Florida Talks

Florida Attorney General Bill McCollum’s office has spoken with representatives of Bank of America, JPMorgan, Detroit-based Ally, PNC Financial Services Group Inc. and Goldman Sachs Group Inc.’s Litton Loan Servicing, according to his spokeswoman, Sandi Copes. McCollum asked to meet with the companies in October to discuss their foreclosure practices.

The office had follow-up discussions with Bank of America, New York-based JPMorgan and Litton.

“We have had constructive meetings with attorneys general and a number of positive steps have been discussed,” Jumana Bauwens, a Bank of American spokeswoman said in an e-mail. She declined to elaborate.

Donna Marie Jendritza, a spokeswoman for Litton, declined to comment immediately. Thomas Kelly, a JPMorgan spokesman, declined to comment.

McCollum also is seeking to meet with San Francisco-based Wells Fargo. The request came after the bank said that it found problems with foreclosure affidavits, Copes said

Talks ‘Will Continue’

“I think the conversations will continue for the foreseeable future,” Copes said. “It’s too early to determine what resolutions will be pursued.”

Vickee Adams, a spokeswoman for Wells Fargo, didn’t return a phone call seeking comment.

If banks fail to reach an agreement with the attorneys general group, “they could be facing 50 separate pieces of litigation,” Arizona’s Goddard said.

While the states have recently begun talks with investors, negotiations with banks and mortgage services continue, said Richard Blumenthal, Connecticut’s attorney general.

“Loan servicers and lenders are cooperating with our investigation, which has expanded beyond robosigning. Ongoing discussions with lenders and servicers include reforming the loan modification process and greater foreclosure relief for homeowners,” Blumenthal, who was elected U.S. senator for Connecticut this month, said in a statement.

“We will explore all options, including possible legal action, if discussions fail to produce a settlement assuring the rule of law, property rights and fair treatment,” he said.

To contact the reporters on this story: Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net and; David McLaughlin in New York at dmclaughlin9@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.

43 Responses

  1. Anonymous:

    Absolutely this is and has been the true path of the courts – “You owe the money” and everything else relative to the case is completely ignored even as the fraud has been shown to be so prevalent in such cases. However, this mindset will not hold now that so much has surfaced. Good over evil is what will prevail, particularly now that the masses are behind the movement for the Courts to “get it right”. Let’s hope for the best and all will come to their senses to resolve these issues at the earliest possible time.

  2. Concerned,

    Believe you are referring to the TILA 2009 Amendment. Yes, they would subject to it – and they have to identify the creditor and provide address and contact information. The Fed Res Interim Opinion (now codified as Rule) clearly states that pass-through beneficial security investors are not the creditor – this rules out the trust/trustee – on behalf of security investors – as the creditor. The creditor is the entity that holds the largest current interest in your loan on their balance sheet. If there are several creditors, only the one with the largest interest in your loan on their balance sheet must notify according to the Amendment and the Fed Res rule.

    Surprised that this is not being used in courts – but, then, again, courts remain fixated on “you owe the money” – and they, most often, ignore everything else.

  3. ANONYMOUS,

    Are all the LATE assignments that CountryWIde/BofA/Litton and others aare doing regarding the “America’s Wholesale Lender” loans, assignments that aare the first change from the 2005 loan docs that named the lender as AWL, are ALL of those assignments now subject to them needing to send notification of the new document that has been filed with the County Recorder’s office?

    My ‘A to D’ assignment attempted by Litton’s Debra Lyman (using MERS) was both generated AND filed in July 2010.

    I did NOT get any notice that they filed the document. I stumbled upon it, filed at a time that also is a breach of a BK stay.

    A friend notice that there are thousands of ‘AWL’ documents being filed with the local recorder’s office.

    Is is only assignment of the DOT (aside from change of servicer) that would be a RESPA violation?

    Would a change of the trustee named within the DOT also be cause for a ‘RESPA’ notice?

  4. Alessandro Machi,

    Supported you before, but you are incorrect on this. The loans were table-funded – with the identify of the actual creditor concealed – and by prearranged agreements (most important to table funding designation). And, all of this in violation of RESPA. But, RESPA only has has a 3 year Statute of Limitations. By the time anyone really ascertains what really went on – it is too late. This was the Congressional purpose of the May 2009 Amendment to the TILA.

    Homeowners signed documents with a phantom party. Yes, investors came later – but RESPA had already been violated by not identifying the warehouse lender – subsidiary of true lender- that concealed itself at mortgage loan origination.

    All in violation of federal law – but by the time discovery is available – if discovery is available at all – it is TOO LATE.

    Well thought out by the banks —- right????? Yes.

  5. Alessandro Machi:

    Your contention that “the ‘true owner of the note is whomever signed the note when the home buyer signed the sme legal document within the same proximaate time period” is interesting.

    For a note such as my own, where no-one seems to have signed ANYTHING on the record for at least 4 YEARS: do you agree that there is no owner of my note? I guess this is what Neil has called a ‘WILD NOTE”.

    We are talking here in my instance, about one of the MANY CountryWide loans were the securitization chain of recordings of transfers of the Deed of Trust were not done AND they appeaar to have never transferred the Note at all.

    The Bankruptcy court received a COPY of the COPY of the note that the title company had scanned in back in 2005 WITHOUT ANY ENDORSEMENTS AT ALL. The ‘note copy ‘ on file with the court is even MARKED as having been provided by the TITLE company..

    The only evidence of having done any part of the securitization is the assignment that was filed THIS YEAR, trying to assign a defaulted loan INTO a pool that would have CLOSED in December of 2005.

    No chain of assignments from the named ‘lender’ to the parties specified in the PSA for the particular pool was performed. The assignment on record goes directly (using MERS) from America’s Wholesale Lender to the CWABS 2005 certificate-holders with BONY-Mellon as trustee. [AWL is a TRADE-NAME for the supposedly defunct CountryWIde.]

    The note has PLENTY of BLANK space for any assignment.

    I do not know the point of even presenting this copy of the purported note is.

  6. “The true owner of the note” is whomever signed the note when the home buyer signed the same legal document within the same proximate time period.

    The “investors” came afterwards and therefore HAVE NO SAY in whether or not a HAMP loan or home loan refinancing happens.

    This is the scam that has been wrought by several different factions working together to get theirs at the expense of the homeowner.

    Government uses taxpayer money to “replenish/bailout the banks”. Banks then claim that there hands are tied because mysterious investors won’t approve any home loan modifications.

    Barack Obama then says, “Well, I tried, sorry.”

    Until it is shown in a court of law that nothing can supercede the ORIGINAL agreement the homeowner had with whomever originated their loan, then the shenanigans of denying help to main street from the very people who caused the problems won’t cease because logical solutions affect their illegally wrought profiteering.

  7. Now, one more comment before I sign off and am sorry if I am burdening some of you, but this has to be offered up:

    As an option, and there are many benefits to the homeowner and the bankster as you all call them, if I had lost my home through a wrongful foreclosure and someone else had already purchased the home then, in that event, the bankster would need to allow me, the homeowner, to find another like house, finance it at a fixed interest rate for a 30 year term. Guess what, I may be able to find another house for a lot less than I owed on the home which was wrongfully foreclosed and the bank would end up further reducing the inventory of homes on the market. The realtors can go take a hike unless they want to do it at no charge. Remember, they too could have done much more to prevent this meltdown. I have no faith in them whatsoever or the investors which they put together to buy my foreclosed home if any when it should ever be foreclosed. The homeowner may not get his original home back, but he may buy one a lot cheaper – isn’t that something to think about. There has to be conditions such as the homeowner must be employed or he gets a rain check to the time when he can become employed and make the note. In the meantime, the bank can make these loans and resell them later once they are seasoned to legitimate buyers who are not interested in victimizing me. Now I am signing off. If that deal is cut for those who were wrongfully foreclosed, then hey that first 1.4 million will buy a lot of homes and reduce the market and make a demand a real sure thing for future appreciation of home values. Food for thought, may not work, but my guess is with a little tweaking it will be. No courts, some degree of loss by the bank taken on the first sale of the the foreclosed property and the homeowner may win. Not in all cases, but I could win in some. Now I am signing off.

  8. All through my postings I have asked for comments regarding changes or ideas. What an idiot I would be to think I had all the right answers. I don’t and didn’t say I did. This was a plan for me and I do not speak for the homeowners as I would not have the right to do that. But you are dealing with someone who has been on the front line and in the trenches with the homeowners for many years. I thought perhaps the 40 years of experience in the business might offer some insight as to possible solutions whereby the homeowner might prevail. I have gone up against Fannie in the 1980’s when they were the best of the best and could be dealt with, now we have a different breed and in order to get what we believe is fair, we must have a strategy. I was hired by the VA in the 1980’s as a liason to go after the servicers because the VA felt they may not be making the proper decisions as ti whether the servicers were doing the right thing when they attempted to foreclose. For now, I have done all that I can to put what I thought might be helpful out there. There are other ways and means that can be utilized, get after it. Signing off – from someone who cares and always has, about we the people.

  9. Concerned: You decide what is fair, this was just a scenario to show you how a payment subsidizing your mortgage could work. It can be anywhere you want it to be based on the detailed terms of your notes and how it meet with your satisfaction. There can be no justice for the homeowner and certainly no payback for what they have done. I am not and never will condone what the banks have done. Why don’t some of you come up with figures that can be realisticly obtained by you. Right now, I am just trying to get the diaglogue started, and perhaps some constructive cricticism. I knew I was going out on a limb and at risk for putting something out there. Listen, I have been working 24/7 defending homeowners against banks for over five years and never took a cent and 98% of them were never thrown out of their homes. Again, some constructive criticism would be appreciated to help those that need it. Every cent I had has gone to help homeowners save their homes. Perhaps you need to understand that we have to reach a satisfactory medium to make something happen besides the Congress coming up with laws that may take us out altogther. Thank you for your confidence.

  10. The modification has to be based on the current market value, less the pilferage at origination, less fines applicable and can only be done by the real legal party of interest, which would be the true owners of the note and mortgage/deed of trust, and these must be the absolute true, and verifiable originals, which borrower signed at closing.

    Spare those stips send a satisfaction of debt and register same in land records applicable and rest the matter forever in peace.

  11. Joyce Louise,

    We need a DIFFERENT PLAN than what YOU are proposing.

    Your plan “calls for the banks to advance from the $300 to $400 per month for each of the homeowners that finds themselves in hardship”

    GET REAL. That is an extremely inequitable plan and would only work for the people with mortgages where the payment is say $1000 per month, at best, depending on the depth of financial problem they have encountered.

    For those with mortgages of less than your ‘magic’ number, there would be no paymnent while those of us who need much more of a contribution to reach the 31% point are left out in the cold with a ridiculously tiny offer of help?

    I have a breached mod that is better than the GARBAGE you are presenting.

    Are you REALLY working for the borrowers, or trying to insert yourself here while actually working for the banksters?

    If that is what you are trying to get in front of the AGs and represent that you are working for the homeowners, we do not want your bandaid plan. It will not work.

  12. That’s an affirmative, ANONYMOUS.

  13. Let’s get it straight: The investors are no longer in this equation and should not have a say until the issue has been resolved with the homeowner because it is the homeowner’s loan that is key to the whole nature of getting this resolved.

    The Servicers have made a major contribution in the dismantling of what could have ever been a method for helping homeowners keep their homes, because they themselves were tied into contracts as master servicers and were at risk. We see now where Homeq was sold to Ocwen – Why was that? They couldn’t stand the heat I am sure not to mention the conflict of interest with the trustees and depositors which clearly showed they were representing their interest rather than the interest of the homeowner for a modification.

    The government is out of the equation as well. A royal screwup – excellent at creating the fiasco but didn’t know the first thing about cleaning it up. Another failure which contributed heavily to the demise of this economy.

    The attorneys involved supporting investors of pools need to get with the program: Assure that the homeowners are compensated in such a way that they can once again perform on their home loans. As for the foreclosures, there is a plan for that as well. See the other post on investors req buy backs – I don’t think this is the thing to do, at least not just yet. Yes they would rather collect some money rather than foreclose. Well, here you go. In the meantime, those attorneys who ill advised the banks when these loans were being originated, purchased and funded, are going to need to take responsibility. In my day, Vinson Elkins, Bracewell and Juliani (?) and Dunn Kacal and Pappas knew how to take care of their clients and they taught us well and had the proper oversight to make sure the banks did not pursue such programs or any other issues that may have not been good for the public. Where are these firms now, I sure hope they didn’t turn the other cheek like so many other firms that clearly may have done just that. Why do you think we did not start making these dangerous loans until after 1998 when second chance car financing became the second chance home financing era. I was for deregulation, but not for throwing caution and ethics to the wind for out and out greed.

  14. usedkarguy , trespass unwanted, Eule

    Thanks.

    So – the date of last activity means the account has been delinquent for some time – and creditor has ceased reporting???

  15. MODIFICATIONS WILL NOT WORK TO RESOLVE THIS ISSUE NOW – SO IT IS NOT THE ANSWER. MAYBE LATER WHEN REAL PEOPLE WITH KNOWLEDGE CAN DETERMINE WHAT IS BEST OVER A PERIOD OF TIME WITHOUT CONTINUING TO DESTROY THIS HOUSING MARKET AND ITS ECONOMY. READ ON MY FRIEND i HOPE i am not offending anyone, but just trying my darnest to get something going from the very people and their families who have so been victimized.

  16. And another thing, if the bank needs help putting up the money, that is not the homeowner’s problem. They are going to expect payment for the injustices that they have been subjected to.

    Now to make sure we get all of the players in on this Plan and what liability they may have, I suggest that we do whatever is necessary to go after the foreclosure mills and any other attorney that may have ill advised their clients. They have mal practice insurance, errors and omissions so I think they need to step up to assist the banks in their repayment to the homeowners, along with of course the title companies as I mentioned earlier. There are lots of resources to help the bank come up with the funds so that the stockholders of those banks do not take a direct hit if you will. I know some live on the funds they get off of their stocks in these banks. However, the underlying insurance companies that covered the liability of the banks, attorneys, realtors and all the rest had best see that some settlement is reached where all parties will benefit. I hope this is what the AG’s are demanding of the lenders. None of this had to happen and the plan would have worked had we started in 2007 rather than setting up the phony Home Affordable,and the Housing Recovery Acts which were a total failure. Instead we spent time cleaning up Bear Stearns for 27 billion dollars and then allowed Chase bank to purchase it for 287 million. Had they come up with a realistic plan to subsidize the homeowner rather than the fall of the economy, loss of jobs, etc., never would we have had the damage that this country has been subjected to nor the embarrassment of what our financial servicers have done to its own people. This is why we are not standing tall in the community if you will among other countries even though they were right in there doing the same thing to their people. We had great systems in the 80’s that worked and we need to go back to that. Other than real oversight of Wall Street and the deregulation of the banking industry and its effects, that too can easily be resolved. But next time, it won’t be a monoply game, they will go straight to jail, just like the rest of us when we commit an illegal act. Please read the prior two parts to understand what I am trying to convey. There is a plan also for those that have already been foreclosed and that is where the underlying insurance companies are going to come into play. They took the premiums from the big banksters and the MI coverages (see PSA) and attorneys mal practice insurance carriers will have to come into play. Their best bet is to support the subsidy payments to the homeowner without delay. Just look at all the resources we have for resolving this very critical issue and making it right with a minimum of time, cost and effort, to everyone.

  17. Alessandro:

    I know exactly what you are saying and in fact, covered that very issue in an article that I wrote back in 2007 – “Not in My backyard Mr. Lender”. That gave back in 2007, samplings of the nightmare stories caused by the servicers starting in 2005. Believe me, none of this was new to a lot of us then but is just now coming out. No one wanted to hear what we had to say., particularly the administrations.

  18. The banks need to think of it this way. For those who have to repurchase from Fannie and Freddie (and they need to be torn up for their ways and means), it would seem it would be far better for the banks to fund 10 to 40 billion over a 3 year period on 2 million loans rather than purchase the whole loan with interest from that date of purchase by Fannie or Freddie. If you had the five major banks, each bank’s layout would be on the order of 2 billion to 8 billion for the three years. There has to be a way this can work. Why would the just one bank pay out over a trillion dollars to repurchase all of these loans. Bank of America is fighting it out with MGIC. Well, I have been down that road myself. And they had to pay at that time but that was because they were aware of how the loans had been underwritten and in fact had signed off on the actual underwriting of the loan. Again, if MGIC is involved, one would have to make sure they too would not be included in the partnership between the banks and the homeowner if indeed a repurchase of the loan is followed through on. This plan could be called the “Homeowner-Bankers Partnership Subsidy Plan of 2011. The thought of having a partnership with a bank to me is just phenomical since they have done so much to victimize the homeowners. Remember the bean counter, the one who measures risk and liabilty for its companies. We need him now to tell the banks, hey you are going to spend a lot more money if you don’t come up with a reasonable settlement for the homeowners who will have on going and far reaching claims on just about everyone involved in their transactions, including the title companies so they need to get on their horse as well. They issued the policies even though they knew at the time the home was foreclosed, they went back after the fact and got the servicer to send them in so the title company could record them. Aiding and abetting appears to be the name of the game so I hope they will stand tall and not try to get out of all of those trustee deeds they issued policies on. They may have even had a deal set up between the bankster and the title company to bond around, who knows what went on in the back room. The banks had to move the foreclosures and this I believe is what they may have done. At any rate, we need a plan. We cannot keep talking rather than putting forth any action.

  19. Alessandro :

    If there is no other better way than to help the homeowners keep and maintain their homes I would say that a modification, if they could possibly get it, might work for them. My plan calls for the banks to advance from the $300 to $400 per month for each of the homeowners that finds themselves in hardship. Rather than throwing the money from TARP and stimulus spending to loan servicers and to property investors and cities and towns so they can buy up the f/c properties from the banks (again saving the banks), on low interest non recourse notes, the money should be used to subsidize the homeowner’s monthly payment for no less than 3 years, possibly 5, until we can stabilize the housing market. All of this foolishness about approving and non approving and delaying and providing false hopes to the homeowner by servicers who do not know the first thing about what they are doing, will be over with. It is time for the homeowner to have an option that will have a direct effect, immediately so he can regroup and get his own house in order. Here again the buyers of the loans from originators are trying to put the money in their pockets when they had the due diligence and the choice to buy or not buy, but they bought them and they knew exactly what was going on. End of story, as compensation the homeowners will get justification for what the banking industry has done to them and this economy. Repurchase only puts the loan back in the hands of the bank that originated it in the first place. Homeowners were not a signing party to the securitizations of their loan and they should not be guided by what the provisions of the securities dealers have agreed to. Also remember, the deed of trust or mortgage that the homeowner signed says the lender will follow “applicable law”. That is state law and as such our rules will be used to judge whether or not these old boys are going to get their way. The feds are running the shop, but I think the States who supposedly are on the job, had best not negotiate for modifications until we have looked at more cost effective settlements for what the banks have done. No need to involved PSA agreements because they are not going to rule. With this program, rather than spending 600 billion to trillions to repurchase why not just turn the non performing loan into a peforming loan. After 12 months of payments, the loan will then become no longer be a scheduled item on the bank’s financial condition, PSA’s, much as I detest them, will get paid, homeowners will save their homes from foreclosures without ridiculous delay and ploys of a modification, biggest benefit of all is we will begin to reduce the inventory of homes which means appeciation of the homes will set in and in my mind, those investors who stole the homes in the 80’s at the homeownr’s expense, will not be able to buy our homes for 30 and 40 cents on the dollar which is what they ended up in 1980. If you look at the picture, it takes only $10,800 to keep a homeownr in his home for three years with a $300 a month reduction in his monthly payment. Just look at all the time we would have had to come up with realistic plans while we bought that 3 or 5 years for the homeowner. Yes, there are some issues with this, but that is why I was trying to get some of the people on this site like Anonymous, Lucy and others to weigh in. Just think what would happen if we could find a way to take care of the homeowner first, stabilize the housing market and our economy because jobs would come back in and also allow the homeowner to win and the banks to win by settleling out of COURT. We need time to go back and set the wheels in motion to reinforce the very excellent system we had prior to 1995 for recording property ownership by both the homeowner and the creditor of record, not to mention servicing rights. The banks will pay for these recordings and if they have a problem with that, they can have the homeowner pay for it at the closing. Guess what each and every state will have the real income due them for such going’s on and the record will be clear. That home will have one creditor maybe two, but the record will reflect the true ownership of the note and lien as assignments will have to be recorded. The government through away a $7500 credit to new home buyers when we were throwing the homeownrs out in the street rather than keeping them in t heir for two or three years. What idiots. We have a bunch of idiots at the helm. Sadly to say, most investors will reap the benefits as an end result if we are to utilize this plan. Give the money to the homeowner, not the banks. If the banks have to repurchase, we will still be fighting their loan servicing groups who are trying to following provisions of a contract we are not even a party to. You cannot tell me there are not some people out there who know how to come up with some plan that will help the homeowners and stablize the market and the job market as well. This plan has not been provided in full detail because it takes time, but this one and others need to be put on the table and fast. One other thing. If you wanted to save the next 60 to 90 day defaulted homeowners who have a legitimate hardship, as many as 2 million homes could be saved by going this route. It is a simple debit and credit each and every month that is posted along with the borrowers remaining portion of his payment. Yes, it is a modification of type, but look at the time, cost and effort the loan servicer is going to save. In the old days, it just wan’t done for a mortgage servicer to assist a homeowner payment as they would be in lots of trouble with the investor. Now, this may be the only way we can get back on track. We will see. There most surely are some issues that I haven’t forseen, but that is why we need help from those who have the knowledge.

  20. Joyce, the investors should hold no sway over the homeowners because they came after the fact. To allow them to prevent a home loan modification is just a macabre fantasy the banksters are just trying to get the rest of us to believe is reality.

    Which came first, the mortgage note, or the investor?

    http://swarmthebanks.blogspot.com/2010/11/so-which-came-first-mortgage-note-or.html

  21. Listen up everyone – the time is now. I have a plan that I think has a lot of merit to resolve this issue. Is it possible that some of you that are so knowledgeable and creative, that you too have a good idea of what can be done so that a resolution to this crisis can be reached. No more talking. Nothing to date has been put forward and I am frightened that the AG’s who are behind the times and behind the eight ball the way I see it, will come up with a settlement that does nothing for the resolkving the crisis and more specifically, just and fair dealing for the homeowner. just like the the last two recovery programs which the feds came up with, they accomplished nothing but instead their lack of performance only muddied the water more. I know there are people out there that have good ideas. So let’s, we the people, present our on plan for this resolution and require that the feds and the AG’s attend our meeting. I am not kidding and I am sick and tired of these one sided meetings where the supposedly representatives of the people keep kissing the ### of the very scoundrels who brought us and our economy to such depths. I am ready and prepared to answer any questions about my plan to test out its merit and I am sure there are others that can do the same thing. Does the plan have merit or not. Forget the modifications as what we will basically do under the plan will resolve no less than 2 million loans that are now facing foreclosure. Lots of detail regarding the benefits of the plan and to those in trouble as well as those not in trouble on the mortgages. Although servicers have not performed in the past and in fact have been a detriment to our recovery, we will bring in people who understand the ways of General Patton and /or Four Star General Curtis LeMay, who will shape em up or ship em out. They can get the financial services back on track and as much as I hate to admit it, the homeowners are going to need all the help they need if they are to overcome the AG’s possibly soft peddaling to the lenders and Homeowners coming up short. I went through the 80’s and the 90’s and now the 2000’s. Where there is a will there is a way. Let’s do it and do it now. Neil needs to set up a special site for plans to be submitted and someone needs to invite the attorney general leading the 50 states in the negotiation before he runs cuts a deal on our behalf. In fact, it would be good to have some of the tea party leaders come over and give us a hand. This has to be done right but it has to be done now before they get further along in negotiations that cannot be changed.

  22. Anybody paying attention to the FBI sweeps serving subpoenas on hedge funds? Anybody? Buehler?
    Remember the line about FBI defining the fraud as “fraud on the lenders”? That’s gonna change as well. If this takes the turn I expect it to take, the banks will be discovered to be conducting the unauthorized practice of law to foreclose on behalf of the hedge funds. Now wouldn’t that be interesting? Or, it could go the way Soliman predicts: executive order to ratify the fraud already committed. Better stap it in or strap it on, it’s gonna get wild!

  23. Sorry ANONYMOUS , I lost the link :

    http://www.sovereigntrust.info/id8.html

  24. I’ve said all I can say in this blog, Thank you, Neil. I may have said too much..forgive me for my trespass as we forgive those who trespass against us. I have no right to infringe on your free will not ‘not’ know something without warning.

    Seek and ye shall find.

    I love you,

    Light and Love,
    Trespass Unwanted, alive, allodial, not a vassal, not a person, not a human being, free, live, life.

    And I made a typo, I never sign as Esq…I was putting my thoughts in a separate doc and copied that word over in the wrong place…to bad I can’t edit that.

    Our future is our future…and that’s a great thing, no matter which direction it goes..it is ‘ours’.

  25. “creating a general fund to compensate homeowners who may have been victims of wrongful foreclosures.”

    Bull$#!* People who have had their homes wrongfully taken deserve their homes back nothing less. You right wrongs, not try to buy off the victims wronged on the cheap because you know they’re desperate. This is INSIDIOUS!!!!!

  26. The only reasons why AGs are investigating any of this is because it effects each State’s Public Employment Retirement Systems (investors), look at the case from Mass.’s AG vs. Goldman Sachs and Merrill Lynch, why did they sue? Because their state lost money on the MBSs they invested in.

    The fact that the ‘investors’ keep their identities concealed from the public and from parties in lawsuits fighting foreclosures just shows that they know their criminally liable. Think about it why haven’t they come forward and made any public statements about anything like why they don’t approve any modifications, why they are allowing all this foreclosure fraud or that they seek recourse for not getting their expected annual 18% return on their ‘investment’? Because then it would come out into the open that our own government is not only living off our work, blood, sweat and tears but that when it came down to it our government went ahead and signed off on authorization for servicers to race through all of these foreclosures and hired PPIPs to be right there at the acutions to ‘buy’ the homes for literally a ‘steal’ then turn around to sell them for quick profit to government ‘community investment’ property management companies that rent them out leaving nothing left on the Monopoly Board but Chance, Jail, Free Parking(no longer free they just take your car now and sell it if u can’t pay to get it out) and GO(start over) to land on.

  27. I’m with Mario! Nothing but a full satisfaction of mortgage plus damages AND Attorney fees plus interest…and the liscense of the dirty Mill lawyer that just keeps on perjuring himself and commiting fraud in court! This fight quit being about me and my mortgage a LONG time ago!

    A good investor would NEVER put all his apples in the same basket…would they??

  28. Hey Mario, I like your take on requesting the blue ink note at the UD stage. It should work in Ca since a non-judicial foreclosure is subject to the one way rule. Thanks for sharing.

  29. ANONYMOUS, on November 27, 2010 at 7:38 am
    they use that information to see if there has been no activity on the account within 180 days. After 180 days the debt is charged off, and a law firm purchases it for pennies, and then sends you a letter demanding full payment as a debt collector or they will declare a default judgment against you.

    EULE, on November 27, 2010 at 7:30 am
    You created the money..you are acting as a bank. They are trying to create regulations to real in banks who are irresponsible in their creation of money…they are talking about you!
    Also, after the money was created by your signature, you gave them right to demand more money by filling out the Deed of Trust…you once you pay, you should have the keys, and taken the Deed of Trust with you.

    We have no time to remain asleep, we have to clean up our baby and throw out the bath water.

    What you see is not the truth, what you don’t see is true, and yes the home was paid for when you gave them the promissory note and created the money…it sat in escrow, and they have been paid..they were also paid on default through insurance, they are still coming after you because you are NOT ALIVE, and so you are being represented…(without saying too much)…you have to abate that thought and be seen, the bible talks about the blood of the lamb…something with blood is ALIVE, they don’t recognize that. And if you decided to sign and ask for lawful money that is without interest, do not be double minded and sign without asking for lawful money because you don’t feel like it. One way, the IRS will be willing to leave you alone, but the other way, you mess up their books and they’ll be on you for not making up your mind and being incompetent and getting money without interest and then money with interest. Don’t do that…and right now you are voting for the FRNs with interest everytime you take out a withdrawal, cash a check, sign a receipt. You must become competent and demand lawful money with your signature.

    We HAVE to wake up, these people are planning a full decline of our and to leave us with nothing…we have to preserve some resemblance of a country and currency so we can rebuild. They know we are waking up, they hear the chatter and they are staying one step ahead. BUT remember before you point at them for what they did, you must point at yourself for how you helped, and while you are at it…forgive yourself, and forgive them.

    If we correct what we’ve done, and create a world of Love and forgiveness, our Creator will bless us and we will come to no harm planned by man because we remember who we are, and the original Truth of unconditional love.

    Anyone who spews hate, feels unloved in some way. Use your power and give them some, and help them feel loved so we can fix this.

    It is your choice and your free will.

    I love you, regardless of what you decide to do.

    Light and Love,
    Trespass Unwanted, alive, allodial, life, free, freeman, spiritual affinity, live born, born alive, whole blood, live, corporeal

  30. The Mess will never end :

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

  31. ANONYMOUS: on a Trans-Union report, they use the term “verified”, or the last date the account was “reported on” by the creditor. Last payment date would be the last payment made by the debtor on that account.

  32. TOTALLY SHAMELESS!!!! this thieves are totally relentless when it comes to protect money they don’t even have(or ever had)!!! settlement??? BS!!!! the perpetrators MUST be prosecuted and have their a$$es put in jail now!. Are these the same guys many were BEGIN to restructure a couple of years ago, and arrogantly would deny just the idea of doing so? get the hell out of here!

  33. The mega banks and pretender/lenders are going to try to slither out from under any meaningful litigation. They can pay huge amounts of money for the best legal representation that money can buy. The AG’s need to go after them for civil and CRIMINAL activities. If you don’t nail them for billions and jail time, they will only do it again. The banks do not operate under the rule of law. What I would like to know now is: what do members of the military think about this meltdown? Remember, the federal government could use the military to keep us in line. If members of the military see the scam, they will not be cooperative in using force against the populace. It is starting to get desperate regardless of the new reports of the big corporations having the best quarter ever! http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  34. Off topic here – but, I have a question for anyone who is familiar with credit reports. What does the “date of last activity” and “date of last payment” mean on a credit report???

    Thanks.

  35. REMEMBER :

    Do NOT refinance your home

    DO NOT REFINANCE YOUR HOME or you
    will be re-contracting with thebanks and mortgage companies; and their fraud will probably beremoved in the new
    contract. The thieves have been so smart thatthey forgot to shut the gate.Your home was paid for the day
    you bought it with YOUR promissorynote. Not the bank’s, not the mortgage company’s, but YOUR note. Theycreated
    that money out of thin air in YOUR NAME, then pretended toloan it to you in order to make 300-500% interest off of you
    fortheir benefit. They risk nothing, you risk everything and they endup with everything when you default.But now the tables are turning and they are being exposed for thethugs that they are. For decades they have been using
    this fraudto steal you blind, now it works against them when you know whathappened! It’s your turn to use the
    system to your advantage.If the bank won’t produce the note for you, you have to sue incourt to make
    them Produce the Note by filing a Petition (lawsuit)against the bank.Obama just advocated publicly that
    homeowners refinance…if yourefinance, the lenders will take away any rights you have now andyou will not be
    able to challenge the bank. The gov’t realizes thatall loans currently are fraudulent and want you to renegotiate andrecontract with the banks…so that the banks can’t be challengedin court in foreclosure.

  36. I agree, Maher. The shit starts at the top and rolls downhill. You can’t modify a discharged debt. The bonds went bust, the FED is holding all this shit in a bag. The “investors” are, in most cases, complicit with the creation. It is truly a “propaganda and disinformation” campaign. The state AG’s have no power against the Federal Government.

    And Mario, I agree. There is no modifying, there is only extinguishment and restitution that will make us whole again. Too much damage done.

  37. There is a conflict of interest between MBS investors and non-performing (default debt) investors. MBS investors receive only income (mortgage payment) pass-through and no pass-through on foreclosure recovery. It is better for them if loans are modified. But, servicers are pushing through the foreclosures – benefiting the default debt investors.

    Loan modifications must be in the name of the actual creditor – or they are invalid. And, loan modifications may take away future legal rights.

    There should be no resolution settlement consideration – until a investigation is thoroughly completed. Is this a ploy to block investigation??

  38. States….begun talks with investors, negotiations with banks and mortgage servicers continue, said Connecticut’s attorney general.

    Counsel- Get over to Washington and talk with the conservator FDIC who is charged with this
    T O X I C L I Q U I D A T I O N mortgage mess.

    Oh, and …hmmmm – Servicers are barred under FAS 140 from having anything to do with the mess. Banks are gone two years now.

    And Pro tanto is Governement right to ownership of land and title…..its also known as Eminant Domain.

    Coould be a set up folks! Pre-emptive strike. It’s almost here ….the Crystal ball say’s . . . January 2nd 2011 is my call.

    MSoliman
    expert.witness@live.com

  39. Classic – Amherst Securities Group LP analyst, said at a conference in October . . . .a large scale modification effort” that hurts bondholders.

    MSOLIMAN REALLY! HURT BOND HOLDERS ….IS THAT WHY the FDIC OWNS FNMA and FHMC and PRIVATE LABELS ARE FORECLOSING ON ASSETS HELD IN RECIVERSHIP PRO-TANTO ….WTF (Where’s the Fed)

    The further we get into this mess the farther back-wards are the storylines. (LISTEN PEOPLE …OR MAYBE LISTEN AND DON’T READ) .

    Blolomberg is out there…Really!

    Expert.Witness@live.com

  40. Wake up. You can’t. Why? Because you are dead.
    I know nothing and if I think I know something I know nothing.
    You must listen to this with your heart and not your head, or you will fall deeper into the rabbit hole and not understand why.

    You have been educated to be incompetent. The free education you was given, your parents and grandparents were glad you were getting, but as they saw the things you learned, they did not know the things you were not taught.

    As time went on, we all did the same things and our actions caused this crisis..by design..now we have to ‘grow up’ and quickly to change what we have done for the future and the future of our children.

    First of all learn that this world is a ‘legal’ world. So the lawyers have taken words that mean one thing in their law dictionary and taught you different meanings. Have your parents ever said, “be careful what you say”, or “your mouth will get you into trouble” – they sensed a problem but didn’t know their understanding of the meaning of words were altered by our free education.

    As a result, we became ‘incompetent’. Like little children, and what do you do with children, well an adult steps in and does things for them, and an adult steps in and punishes them for misbehaving.

    First of all, you need to stop doing what you are doing. Many of you will not listen to me, but the few that do, this will help those who are still incompetent and won’t listen.

    Please stop signing documents with ‘blank endorsements’….what I mean by that is signing your name without stating what capacity you are in when you sign it.

    Every time you sign something it’s a contract.
    Every time you sign something with a dollar value on it, I don’t care what it looks like, you have created money.

    You can purchase a shirt on credit, and sign the receipt (money created), and then find out the shirt is too small and return it and get a refund and sign a receipt [even if you paid cash, they ask you to sign a receipt for the refund]. Result, money created. You are treated as a bank, your signature creates money.

    Many buy cars, used their homes as ATMs, flipped houses, etc… all money created…and then when you look and see the National Debt is growing like crazy you want to point fingers at someone else. Thus proving your incompetence and how things can remain the same.

    Adults don’t blame anyone but them self for their actions and then they pick them self up by the boot strap and ‘forgive them self’, and yes forgiveness has to be part of your plan from this day forward, and they correct what they did wrong and move on.

    You have to forgive yourself, and everyone around you. Everyone. Everyone. As long as you have an us and them mentality you are incompetent. Some of you have problems with the IRS and liens. You need to change your competency. Stop being incompetent.

    1. Stop electronic deposits of your money. Get paper checks.
    2. If you go to the bank and want to withdraw money, they always ask, “And how would you like this?” They make an offer and in your incompetence you say, “Oh, tens and twenties”.
    You did not endorse your check to indicate how you want to be paid. There is two types of money, one has interest and the other does not.
    You should say ‘redeem in lawful money’, the government pays no interest on lawful money, but when you take out money without saying that, the IRS keeps track of it and taxes you on that interest. Thus you are forced to pay taxes.
    3. Keep copies of your checks, if you sign them at home and then take them to the bank, on the back write:
    demand is made for lawful money per 12 USC 411 and then sign them (without it being a blank endorsement) and copy front and back.
    If you can take this check to the bank it is drawn on, that is better because your bank will lose money each time you do this, but it’s their method of making money that is hurting you and your country and causing jobs and business to leave.
    [Remember the saying: If you are not part of the solution, you are part of the problem]

    At some point, your actions are going to cause problems for you, because you are being blamed for the state of the economy, and it’s assumed you know what you are doing, because it’s ‘assumed’ you are competent, because you have an education, but you are incompetent by the education you received.

    4. If the IRS wanted info about your taxes, you can show you’ve asked for lawful money, and after a little research (they have copies of EVERYTHING you sign), they should back off.

    They are on you because you are creating money and you are incompetent as you create it. And the Fed is taking your use of their money and they are converting it to lawful money by purchasing treasury securities.

    Once you demand payment in lawful money, then regardless of what is handed to you over the counter..it is still the same FRN, but it is not.
    (the way they mark it in their books indicate how they released it, with interest or without). That money has a dual purpose, to be lawful money if withdrawn as such or legal tender if no specific request is made. They know, digitally how much lawful money is in circulation. I had been spending coins to make sure lawful money was in circulation and to help reduce the debt, but now I know how to ask for lawful money from the bank.

    How do you endorse? You need to be alive. You are dead. Your papers are alive. Everytime you do something they ask to see your ID. That is what is real to them. You are not. Never mind that, you will sign your documents and bring them to life.

    By: your signature, alive, allodial, free

    I use a 5 or 6 word combination of these words, always having alive, allodial, free, freeman,
    and including one or two of these esq, life, live born, born alive, live, whole blood.

    Similiar to when people sign their signature as “signature, esq.” or a “signature, MD,Ph.D,DDS”

    I tell you, you can’t bond a freeman, and you can’t hold someone who is ‘alive’ in jail, but you don’t know that, because you are ‘dead’.

    Someone represents you…so that no taxation without representation, well you are represented in your incompetence by the ‘county attorney’ and you weren’t told that, but until you start waking up and signing documents properly and stop creating money without realizing what you are doing, and stop making the interest higher by taking money that causes interest you will stay right where you are, dumbfounded by how you can be treated less important than an endangered species.

    Clue..an endangered species is alive.

    Re-do your W-4 form at your job…on it write above your signature and ‘before you sign it’
    demand is made for lawful money per 12 USC 411, and sign it without it being a blank endorsement.

    Learn that your signature ‘seals’ a document, so write your ‘terms’ always, always, before you sign, because there is usually a witness watching you sign contracts and they can strike through anything written after you signed…that’s why people sign car deals, and then the salesman will write on it, ‘customer wants a sun roof’, and then goes off and comes back and strikes through it saying he can’t do it. The deal was sealed with your signature, he doesn’t have to do it. We need to stop being incompetent and t.v. is doing it. There is technology in the programs and within the components of the t.v. to keep you from free thinking, and all the negative news and dysfunctional sitcoms and reality shows, keep you in stress, and the meds you are on, alters your physical health.

    If you don’t make changes and love everyone unconditionally while you make these changes, nothing will change. You changing you, and what you do, affects me, and everyone else and changes the world.

    If I can see changes in the state of our economy by our new change in being alive, and competent, more information may open up to you about things you didn’t know, and you’ll find out filing for bankruptcy was a scam and you sold your inheritance for a meal, and the meek who couldn’t afford bankruptcy have more than those that could afford bankruptcy.

    The bible says, the last will be first and the first will be last.

    And people who run from any biblical text, look at is as a book that tries to teach you how to live in this world, but it’s encoded because it will violate your Free Will to not know if it told you everything.

    And a person is not alive, a person is statutory for their purposes, and these words you use everyday has a definition that contains the word person: not an exhaustive list:
    man (which includes woman and child), agent, representative, being, guardian, human being, individual, officer

    Notice how a lot of the IRS code is about persons and individuals. Notice that the definition of citizen is ‘One’, but it goes on to say all persons born and naturalized are citizens…but see that definition is persons are citizens, too. If you aren’t a person, you are a citizen this is referred to as ‘One’.

    We are One. We are One People on One planet, sharing the same resources, and we need to come together under One Love, unconditional.

    Someone you don’t know has told you who your enemy is, and you believe them. You don’t even know why that One is your enemy, yet you trust someone to tell you who to hate or dislike.
    Until we turn around and get back to the original truth, unconditional love, you are heading somewhere you don’t see, and I’ve shown you here what you don’t know already. You think this is bad, what’s coming will shake you and wake you up, and you may not like it if you are still existing and doing things they way you’ve ‘always’ done.

    And be confident when you do this. Look people in they eye as you conduct your business.. You are competent. The bible said when the Tree of Knowledge was eaten of, they became AS as God…they have all knowledge….if you are ‘as a God, you need to start acting like one…you need to be competent.

    anything with a dollar sign that you sign, you
    put this “demand is made for lawful money per 12 USC 411″…you want to see the Fed abolished…cast your vote now..by being competent, and you want to stop paying taxes, start casting your vote for money that has no interest.

    You have to stop being lazy. You must do the work with your hand. Cancel direct deposit and start handling your business on your own. The Earth makes enough trees for you to save her by doing what is right. They lied about saving trees so they could continue to deceive you.

    You need to make changes and changes will happen. You need to forgive, because you’ve done things too, that needed forgiving.

    I love you,

    Light and Love,
    Trespass Unwanted, alive, allodial, free, freeman, life, live,

  41. I just had to share this as it is sooooo true in soooo many ways. Wait until the end and then get this thing viral!!

  42. I want to put a comment here to go on the record so as to very establish, that, I have zero intention of any settlement devoid of a satisfaction of mortgage, and very generous compensation, where I am the benefactor of same.

    I am sorry that the investors lost all their money, but this was not my doing, in or on the contrary, I urged, restraint and reason, above all, the officers and enforcers of law erred, the banksters and regulators failed, nodded on by greed, I trust that perpetrators of crime be punished accordingly for the agony, misery and financial damage caused on citizens.

  43. I found the links to the interviews that were televised on TruTV this evening. Professor Black is one of the people interviewed. I hope you guys don’t get totally disgusted by the content.

    http://www.trutv.com/video/conspiracy-theory/govt-collusion.html

    http://www.trutv.com/video/conspiracy-theory/liars-loans.html

    http://www.trutv.com/video/conspiracy-theory/govt-sachs.html

    http://www.trutv.com/video/conspiracy-theory/ron-paul-fed.html

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