HSBC Halts All Foreclosures Until Further Notice

HSBC Halts All Foreclosures Until Further Notice

(Hong Kong Shanghai Banking Corporation is very active in America and is one of the world’s largest banking institutions)

Posted: 01 Mar 2011 08:21 AM PST


HSBC CEO Irene Dorner, October 2010:
�We have looked. We don�t have robo-signers,�
HSBC has not suspended foreclosures and �we don�t believe we have a reason to do so,� she said

Bank made disclosure in annual SEC report

HSBC Bank USA and HSBC Finance Corp. have stopped all home foreclosures until further notice and may face unspecified regulatory actions or fines, after regulators found “certain deficiencies” in servicing and foreclosure procedures, HSBC said in government filings Monday.

The disclosure by HSBC, buried deep within its annual financial report to the Securities and Exchange Commission, marks the first time HSBC has admitted to a foreclosure moratorium in the wake of a legal and paperwork crisis that swept the industry.

That’s a dramatic reversal from its stance just a few months ago, when it said publicly that it would not suspend home seizures because it didn’t feel its procedures were compromised by so-called “robo-signers” and faulty court affidavits.

“Robo-signing”� refers to bank or law firm employees signing off on foreclosures without actually being familiar with the cases or reading paperwork.

In the SEC document, known as a 10-K, HSBC said it has “suspended foreclosures until such time as we have substantially addressed the noted deficiencies in our processes.” That suspension took effect in December, said spokesman Neil Brazil.

The company said it is also “reviewing foreclosures where judgment has not yet been entered and will correct deficient documentation and refile affidavits where necessary.”

Check out the rest here�

Now how bout some handcuffs�

From the HSBC 10K Report
Washington, D.C. 20549
Commission file number 1-8198

We may incur additional costs and expenses in ensuring that we satisfy requirements relating to our mortgage foreclosure processes and the industry-wide delay in processing foreclosures may have a significant impact upon loss severity. State and federal officials are investigating the procedures followed by mortgage servicing companies and banks, including HSBC Finance Corporation and certain of our affiliates, relating to foreclosures. We and our affiliates have responded to all related inquiries and cooperated with all applicable investigations, including a joint examination by staffs of the Federal Reserve and the OCC as part of their broad horizontal review of industry foreclosure practices. Following the examination, the Federal Reserve issued a supervisory letter to HSBC Finance Corporation and HSBC North America noting certain deficiencies in the processing, preparation and signing of affidavits and other documents supporting foreclosures and in governance of and resources devoted to our foreclosure processes, including the evaluation and monitoring of third party law firms retained to effect our foreclosures. Certain other processes were deemed adequate. The OCC issued a similar supervisory letter to HSBC Bank USA. We have suspended foreclosures until such time as we have substantially addressed the noted deficiencies in our processes. We are also reviewing foreclosures where judgment has not yet been entered and will correct deficient documentation and re-file affidavits where necessary.

We and our affiliates are engaged in discussions with the Federal Reserve and the OCC regarding the terms of consent cease and desist orders, which will prescribe actions to address the deficiencies noted in the joint examination. We expect the consent orders will be finalized shortly after the date this Form 10-K is filed. While the impact of the Federal Reserve consent order on HSBC Finance Corporation depends on the final terms, we believe it has the potential to increase our operational, reputational and legal risk profiles and expect implementation of its provisions will require significant financial and managerial resources. In addition, the consent orders will not preclude further actions against HSBC Finance Corporation or our affiliates by bank regulatory or other agencies, including the imposition of fines and civil money penalties. We are unable at this time, however, to determine the likelihood of any further action or the amount of penalties or fines, if any, that may be imposed by the regulators or agencies.

We expect to incur additional costs and expenses in connection with the correction or affirmation of previously filed foreclosure paperwork and the resulting delays in foreclosures, including costs associated with the maintenance of properties while foreclosures are delayed, legal expenses associated with re-filing documents or, as necessary, re-filing foreclosure cases, and costs associated with fluctuations in home prices while foreclosures are delayed. These costs could increase depending on the length of the delay. In addition, we may incur additional costs and expenses as a result of legislative, administrative or regulatory investigations or actions relating to our foreclosure processes or with respect to the mortgage servicing industry in general. We may also see an increase in private litigation concerning our practices. However, it is not possible at this time to predict the ultimate outcome of these matters or the impact that they will have on our financial results.

Due to the significant slow-down in foreclosures, and in some instances, cessation of all foreclosure processing by numerous loan servicers, including us, for some period of time in 2011 there may be some reduction in the number of properties being marketed following foreclosure. The impact of that decrease may increase demand for properties currently on the market resulting in a stabilization of home prices but could also result in a larger number of vacant properties in communities creating downward pressure on general property values. As a result, the short term impact of the foreclosure processing delay is highly uncertain. However, the longer term impact is even more uncertain as eventually servicers will again begin to foreclose and market properties in large numbers which is likely to create a significant over-supply of housing inventory. This could lead to a significant increase in loss severity on REO properties.

The entire 10K report can be read here�

29 Responses

  1. […] 8.HSBC Halts All Foreclosures Until Further Notice « Livinglies’s Weblog Mar 1, 2011 … HSBC Mortgage Loans Trust Mort Pas Thr Cer Ser 2000-HSBC1 … and/or Seller/ Servicer Guide are in full force and effect; …. of powers of attorneys filed in HSBC Bank Corporate Hequarters Office in Buffalo New York. … […]

  2. Filing Agent for HSBC 10K’s also:

    Norwest Asset Sec Corp Mort Ps Thr Cert Ser 1998-1 Trust (Over 25,000 filings)

    Wells Fargo Bank Minesotta
    11000 Broken Land Parkway
    Columbia, Maryland 21044

    Amendment No.1
    Address of Principal Offices:
    c/o Wells Fargo Bank Minnesota, N.A.
    9062 Old Annapolis Road
    Columbia, Maryland 21045

    HSBC Mortgage Loans Trust Mort Pas Thr Cer Ser 2000-HSBC1
    Registrant 3/22/01 NO IRS#
    6189 – Asset Backed Securities
    Incorporated in New York

    6 Affiliate relationships
    (based upon SEC Files: Parents/ Subs., Directors / Officers, et al)

    HSBC Mortgage Loans Trust Mort Pas Thr Cer Ser 2000-Hsbc1
    Registrant 3/22/01
    333-34330-04 Securities Act’34 10-K, 10-K/A

    Last Filing Filing Agent¹

    7/11/02 Norwest Asset Sec Corp Mort Ps Thr Cert Ser 1998-1 Trust

    c/o Wells Fargo Bank Minnesota, N.A.
    11000 Broken Land Parkway
    Columbia, Maryland 21044
    SIC Code
    Industry 6189 Asset-Backed Securities (ABSs)
    SEC 7/11/02

    Last Filing Registrant

    2/12/03 First Republic Bank Mort Pas Thr Cer Se 2000-Frb1 Trust

    7/24/02 First Republic Bank Mort Pas Thr Cer Ser 2000-Frb2 Trust

    6/9/04 Greenwich Cap Acc Inc Harbrvw Mor Ln Tr 2000 1 Mor Ln Ps Thr

    1/9/02 Greenwich Capital Acc Inc Harborvw Mor Ln Tr 2000-2

    8/13/02 Greenwich Capital Acceptance Inc Mort Pas Thr Ct S 2000 Ftb1

    8/13/10 RBS Acceptance Inc [ formerly Greenwich Capital Acceptance Inc ]
    6 Affiliate Relationships: (based upon SEC Files: Parents/ Subs., Directors / Officers, et al) 

    Which IRS# used for 10K When Filing Agent is Norwest: 52-226747

    Commission File No.: 333-34330-04

    HSBC Mortgage Corporation (USA)
    2929 Walden Avenue, Depew, NY 14043
    EX-99.3 (a)
    Annual Statement of Compliance


    Wells Fargo Bank Minnesota, N.A
    1000 Broken Land Parkway
    Columbia, MD 21044-3562

    Attn: Master Servicing

    Wells Fargo Bank Minnesota, N.A.;

    (B) I have confirmed that the Servicer is currently an approved FNMA or
    FHLMC Servicer in good standing;
    (C) I have confirmed that the Fidelity Bonds, the Errors and Omissions
    Insurance Policy and any other bonds required under the terms of the
    Servicing Agreement, Trust Agreement, Pooling and Servicing Agreement
    and/or Seller/Servicer Guide are in full force and effect;

    FORM 10-K/A
    Amendment No.1
    Address of Principal Offices:
    c/o Wells Fargo Bank Minnesota, N.A.
    9062 Old Annapolis Road
    Columbia, Maryland 21045

    HSBC Mortgage Corporation (USA)
    2929 Walden Avenue, Depew, NY 14043
    EX-99.3 (a)
    Annual Statement of Compliance
    Wells Fargo Bank Minnesota, N.A
    1000 Broken Land Parkway
    Columbia, MD 21044-3562
    Attn: Master Servicing
    (A) I have reviewed the activities and performance of the Servicer during the preceding fiscal year under the terms of the Servicing Agreement, Trust Agreement, Pooling and Servicing Agreement and/or Seller/Servicer Guide and to the best of these Officers’ knowledge, the Servicer has fulfilled all of its duties, responsibilities or obligations under these Agreements throughout such year, or if there has been a default or failure of the Servicer to perform any of such duties, responsibilities or obligations, a description of each default or failure and the nature and status thereof has been reported to Wells Fargo Bank Minnesota, N.A.; (B) I have confirmed that the Servicer is currently an approved FNMA or FHLMC Servicer in good standing;
    (C) I have confirmed that the Fidelity Bonds, the Errors and Omissions Insurance Policy and any other bonds required under the terms of the Servicing Agreement, Trust Agreement, Pooling and Servicing Agreement and/or Seller/Servicer Guide are in full force and effect; (D) All premiums for each Hazard Insurance Policy, Flood Insurance Policy (if applicable) and Primary Mortgage Insurance Policy (if applicable), with respect to each Mortgaged Property, have been paid and that all such insurance policies are in full force and effect; (E) All real estate taxes, governmental assessments and any other expenses accrued and due, that if not paid could result in a lien or encumbrance on any Mortgaged Property, have been paid, or if any such costs or expenses have not been paid with respect to any Mortgaged Property, the reason for the nonpayment has been reported to Wells Fargo Bank Minnesota, N.A.; (F) All Custodial Accounts have been reconciled and are properly funded; and (G) All annual reports of Foreclosure and Abandonment of Mortgage Property required per section 6050H, 6050J, and 6050P of the Internal Revenue Code, respectively, have been prepared and filed.

  3. The fraudclosure never stopped!!!!!!!!
    as a matter of fact taped to my front door this morning was- HSBC Notice of Trustee’s sale.

    DyingTruth your comment to Linda was well said!

    3/4/2011UPDATE: Late Friday afternoon, Neil Brazil, HSBC North America’s vice president of public affairs, responded: “In cases where HSBC is acting solely as trustee for a trust which holds a mortgage loan, HSBC does not service those loans, a master servicer does and has the authority to handle matters such as foreclosures. You would need to review any foreclosure matters with them.”

    See full article from DailyFinance:

  4. Great picture — – says it all.

  5. All that ABS and MBS paper all over the world, well dudes, it’s you and me and the consumers and small business’s and other business’s who are paying on it, doing the work, while Wall Street/Gov/Bankers are trying to somehow cover the scam.

    down in the link a little:

    A very troubling anecdote by Art Cashin today on the possible future developments in fraudclosure.

    An Amazing Assertion – Last week one of the FoF regulars brought a friend to one of the plenary sessions. The gentleman, in addition to being quite personable, was a lawyer who had a lot of experience in asset backed securities. Naturally, I tried to pick his brain on the real status of the foreclosure fiasco.

    In the middle of the discussion, I avowed that I had become very concerned when several large servicers suspended mortgage foreclosures. It smacked of wholesale legal protections to avoid exposure to court reversals and possible sanctions for undecipherable records of true ownership. I remarked to our guest that it was with a large sigh of relief I greeted the announcement that foreclosures would resume – not in a scrooge-like manner, but only because resumption suggested the records might be in order.

    “That’s when our guest blew me away. He asserted that they had only “announced” foreclosures would resume and, in fact, were still in stand-by mode. He claimed that the announcement of suspensions had prompted many mortgage payers to consider defaulting since there would be no punishment. The guest said that, sensing that suspending foreclosures could lead to a tsunami of new defaults among “current” mortgagors, they simply announced resumption as a warning. He claimed that foreclosures were not resuming because the records remain murky and would promote challenges and, perhaps, legal penalties.

    We certainly hope he was wrong since things could turn very ugly. We’ve begun checking around to see if we can get some hard data on the status of the foreclosure process. Stay tuned.”

    And this statement in the above paragraph : “mortgage payers to consider defaulting since there would be no punishment.”

    Screw you Banks, Wall Street, Gov – what does punishment mean, who elected you A-holes ny parents. If anybody should be punished it’s you, you jack wagons.

  6. Sure they will….They say one thing and do another!

  7. Linda,
    Are you in California too? It makes me so sad when I read comments from posters and can, just, feel their pain of hopelessness during or post shotgun evictions where the homeowner had been fighting the whole way pre to post fraudclosure and took all the right steps, only to be cheated and tossed aside like some sort of pest by scumbag judges who think ‘the Rule of Law’ is a ‘rule’ like one that can be broken and not ‘the Law is King’ for which is what the term expresses.


    WASHINGTON — The Wisconsin Democratic Party has launched a fundraising campaign to recall state Senate Republicans who have supported the budget bill by Gov. Scott Walker (R) that would strip collective bargaining rights from the state’s public employee unions.

    The email the party sent out on Wednesday afternoon is excerpted below:

    In 60 days you can take Wisconsin back. It’s that simple.

    This morning citizens from around the state took the first steps by filing recall papers against key Republican Senators who have stood with Scott Walker and pushed his partisan power grab that will strip thousands of middle class teachers, nurses, librarians and other workers of their right to collective bargaining. And we learned just last night that their disastrous budget that will cut millions from our schools and universities.

    In 60 days you can take Wisconsin back by recalling the Republican Senators who have decided to push Scott Walker’s divisive attack on the rights of workers and his assault on schools, universities and local communities. Can you contribute $60 today to support the Democratic Party’s recall efforts?

    Make no mistake, these Republican Senators are vulnerable to recall for their radical partisan overreach. Senator Randy Hopper won his last election by just 184 votes. And Alberta Darling won her last race by only 1,007. By recalling just three of the eight Senators we are targeting, we can regain control of the Senate.

    But we need your help today. The clock is ticking and we have just 60 days to collect the signatures we need to force a recall. Every day and every dollar counts.


    If we can recall at least three Senators and regain control of the Senate, we can end the ugly games Republicans in the legislature have played in the last few days — unplugging phone lines, bolting windows inside the Capitol shut, and withholding the paychecks of Democratic legislators.

  9. Sorry my typos I’m blaming the equipment

  10. My loan shied up Ina deutsche trust deutsche us depositor wells Fargo us master servicer hsbc us trustee. Oh yeh indymac ( one west doing business ad indymac since bought the servicing rights fromFDIC) indymac was subservicer.
    I was in purported default sept 08. Feb09 nots transferred by mets via s good ol famous robosigner and from thst platform the games begin. Hsbc purportedly paid cash ( why not the typical credit bid.. Anyone?!) forclosure mill trustee for one west issued trustees deed upon sale dhichbinfact us ” wild deed” consider the aforesaid … So now we have hsbc admitting there might be something wring with the affidavits p l. E e ze…they bought my home ( from their freinds ) via those affidavits. Could that be called racketeerring by the way the law firm for the foreclosure mill I believe is retained by Fannie … The REO remax agent stated hwas sent by deutsche bank and indymac/onewest ( via marching orders from
    LPS) and left a note on my door telling me to pack up leave .,,I didn’t even know about the sale… What a web they have woven. I said a while ago if you give them enough rope they will hang themselves and now we are talking damage limitation while they figure the next stage of the rip off.

  11. Tonight as all you sit in your residences, our businesses and family that was the major researcher for the Issuance to such agencys as Office of Comptroller of Currency which can cancel a banks business license, they through their Realtor Re-Max showed up with a old Writ of Execution from a law firm named Schultz. first 200,000.00 was put down in 2005 when the realtor told my landlord Harvey Atkins that there was a bidding war and required almost 200,000.00 over the value of the property and sold a ARM as to Fixed Mortgage. The Names on the Deed of Trust and the interest rates the Lending Bank transferring the servicing rights on a Substitution of Trustee Deed of Sale; as required by the deed of trust was all that got changed because it says it on the Substitution of Trustee Deed of Sale that it is for accomodation purposes and no effect on title saw that today at county recorders office in Alameda. But what was most disturbing is that Prommis Solutions Holdings, Inc bought out Cal-Western Trust Deed, Inc dba Cal-Western Reconveyance Corporation of which former Partner of Moss Pite & Duncan & Melmet continuing to do business in the same building 525 E Main Street, El Cajon California are the law firms for all the lenders. None of the Banks prepare the paperwork it is done in that office by computer because of powers of attorneys filed in HSBC Bank Corporate Hequarters Office in Buffalo New York. If you want to find the missing paperwork and what trust fund your loan was transferred to you can look in our bankruptcy case filed in Buffalo New York 10-10036-MJK and print it out and start finding the SEC File that the Real Estate Companys drafted the paperwork knowing that it was coming from money not from the bank or the lender but the deposits of pension funds such as workers such as yourself. So Pite and Duncan & Melmet of San Diego signed a 20 year contract with their old partner Gerald Moss and Wife and Sit on the Board of Directors of Cal-Western Reconveyance Corporation in the same building although all the unlawful detainers of which they never want money on the date of the trial, they just want a court order from a state court judge to make the world believe that the court that has jurisdiction is where the property is sitting. It is not the loan paperwork is turned over to the SEC File Trust account to get the money from the trust you thought came from the banks. That is why borrowers are getting their homes free because Cal-Western Reconveyance and MERSCorps, Inc, Mortgage Electronic Registration Systems are bought out wholly owned companys’ of Prommis Solutions Holdings, Inc now registered under their new name Prommis Homeowner Solutions according to california secretary of state foreign corporation as it is a delaware corporation so is it wholly owned california law firms which do 69% of their business and Pite and Duncan are required by law in state and federal court whom their parent corporation instead of saying that the plaintiff all the banks that they are the trustees on, when they through Yvonne J. Wheeler working out of the same office for years so why could she not sign her own name and put the loan number information on the unlawful detainer and produce the HUD-1 Form and Cashier Check on the date of the Sale? They have their own title and closing company of which she puts it up for sale under one of her employment names and buys it back in the wholly owned company of Prommis Solutions Holdings, Inc. Then the Partnered Lawyers send notice to occupants in the properties to make the payments not to the Banks but the Pite and Duncan Trust. Why would you tell me to make payments to you and not the bank you claim bought at some sale and why when the sheriffs show up do Re-Max, Harold Joseph Hutchens, June McDaniels Williams T. Booker Prudential California Realty of Berkeley California sign for Banks that got put out of business in california such as Bank of New York, and The Bank of New York and their seat was given to another Bank? So today I was at 2312 Pacific View Court, San Leandro along with Doris Atkins, and Business partner whom was in the office downloading that the Foreclosures of HSBC Bank had been stopped today when the doorbell rang and she answered it and it was RE-MAX agent in Black mercedes with old writ of possession not for money just against one adult. No mind that State Court Judge John True III had gave a fifteen day extension and then they filed an Involuntary Petition against parent corporation of Pite and Duncan, Great Hills partners, cal-western reconveyance corporation LPS, LPS Default Services all companys bought out by Prommis Solutions Holdings, Inc so that everybody would believe they were still california companies when they are subsidiaries of delaware corporation doing business and not telling or giving an accounting in court as required. So sheriffs and we called the san leandro police and filed a residential burglary charge against RE-MAX and Sheriffs for breaking the law and having read all the papers they the sheriffs twisted arms and removed from the property after being asked to be arrested so a police report would be made, innocent till proven guilty. RE-MAX Realtor had no paperwork and there are six Children and of Which Three Adults and one is 18 and 20 are sleeping on the floors of church members, because the sheriffs said go get another order and get the keys back from Re-MAX realtor. I could not believe that when asked to be arrested that she was placed in the police car and finally received a citation from the police so we could have our day in court remember that woman that was in florida where she can not sleep because they were turning the keys well In the door I will not tell you the behavior or comments. What i can tell you is that I saw for the first time in my life Doris Atkins hold her ground against a person in a uniform wearing guns, and she kept saying I want paperwork you are from the bank, and I am not going to hurt you you have guns I am mad you are trying to take my house and where is my 200,000.00 did you spend it on your mercedes. So tomorrow we will try to find a judge that will be honest and honor the fact but we will be filing an involuntary petition against Prommis Solutions Holdings, Inc. for locking us out with no warning and nine people is alot to find shelter immediately with no notice and only the clothes on our backs, pray for family and business partners, that helped us stand strong for our rights. so we sued the sheriffs for helping these people and the sheriffs showed us what they do to people who sue them in unlawful detainers HG11556184 HG10540174, because we have over the since December been writing to OCC, FTC SEC, giving all the hidden locations so that these investigations could become public and the united states could see that OBAMA buying back those bonds was because he knew that your pension funds were where the money came from and not the banks

  12. Yeah, you’d better go to the sale, like gault said. And be prepared to film it if they do ignore you and try to sell it. Take evidence that HSBC has ceased foreclosures, like court papers. Also take witnesses with you. I also heard you can bid on our own home…in one of Neil’s posts.
    Hopefully, you are in the clear and it doesn’t go that far.

    Good luck. I wasn’t that lucky to get a moratorium.
    I paid someone to stop the foreclosure on one of my homes and he didn’t do it. I didn’t know much back then. Banks sold both my homes and they are trying to evict us now.

  13. March 9, 2011: Second Annual Freedom Ride & Rally in Tally for Combatants of Illegal Foreclosures

    March 9, 2011 Second Freedom Ride & Rally in Tally for Combatants of Financial Fraud that led to Illegal & Wrongful Foreclosures
    See last year Rally in Tally video

    Time: March 8, 2011 at 11pm to March 11, 2011 at 7am
    Location: Buses to pick up along routes on the east & west coast
    of FL, ride all night to Tallahassee by March 9th in the AM
    Street: Florida State Capitol
    City/Town: Tallahassee, Florida
    Event Type: freedom ride, rally, protest
    Organized By: Florida’s Foreclosure Activists and Foreclosure Fraud Fighting Attorneys

    Remember the Freedom Rides of the Civil Rights Era?

    Well, they say history repeats itself so send this link to every media outlet and social media page (Facebook, etc) in your local area! Informed, they can capture for posterity this historic event.

    Get on the bus late on March 8th to arrive in Tallahassee early morning March 9th!

    Floridians from across the state gather together and make a pilgrimage to their state capitol to raise their voices in unison singing of the moral, ethical, legal, and criminal issues behind the national foreclosure crisis and global economic downturn. This is not just for homeowners! We are ALL reduced by the actions behind the mortgage frauds and scams. Tenants! Anyone who relies on any public service funded by our now shrunken tax revenues! Anyone owning any property at all, fully paid off or not. Any business owner! Unemployed family members! Credit card/bank account fees victims! Those with drained 401Ks and college savings accounts!

    We will be heard along with the Florida Bankers Association on their “Capitol Day” on March 9, 2011. Florida Bankers, guess what? You wanted a “Taste of Florida”? You are gonna get one! We are having our own “Capitol Day” too! But our collective voices will be a harmony; louder, clearer, unwavering, and with a foundation firmly planted in the historical roots of our country as a nation for WE, THE PEOPLE!

    On the Night of March 8th two buses leave from Miami, each traveling up a different Florida coast heading North to Tallahassee, picking up Floridians along the way.

    $30 roundtrip – reserve your spot today. (Use contact form above)

    Preliminary Schedule

    7:30am arrive in Tally to freshen up and eat breakfast

    9:30- 12:30 pm Schedule appts with your representatives in the Florida Congress & Senate.

    12:30-2pm lunch and networking

    2:30pm-3:30pm Press conference with speakers

    3:30-4:30 interviews with press

    5pm board buses to head home.

    We will be posting updates to the site as they come in.

    Let’s get organized Florida. Our homes and futures depend on it…

    If you would like to donate for this event, it would be greatly appreciated. We are looking to raise about $6,000 to pull this off between the buses, sound stage, signs and other related expenses…

    Even if we loaded up each bus, 50 people at $30 a head, we still come up way short.

    Last year, Ice Legal sponsored the east coast bus and Mark Stopa sponsored the west coast bus.

    If you would like to sponsor a bus, or maybe even partially sponsor a bus, contact us through the contact form above.

    It appears some members of the press are looking to ride on the buses so it would be good exposure for your business.

    We would also include your company’s name in all of our upcoming press releases.

    Below are some links to last years event. Hope to see you there…


  14. Appears Office of the Comptroller of the Currency — regulator of banks with “NA” after their name — may be biggest opponent to homeowners. See below — and check out the site report regarding OCC. Hope July opening of Consumer Protection Agency will override OCC. Believe they may be hastening lousy settlement before CPA is in place.

    See Below:.

    So much mortgage fraud, so few held accountable
    Bookmark and Share
    Submitted by Wayne Ezell on March 1, 2011 – 12:12pm Wayne Ezell’s Blog

    Remember the fanfare with which Florida’s attorney general launched investigation into the mortgage fraud and the resulting housing crisis?

    Soon attorneys general from all 50 states had joined in. Several federal regulators also have launched investigations.

    But now, with settlement talks underway, there are fears in many quarters that the major banks will get off with maybe a modest fine, if anything. Is anyone surprised?

    Nobody’s going to jail. Even the fines will be so minimal as to have little effect on the bottom line. The stock prices of the major banks hardly even rippled after this week’s disclosures by several that they expect to be fined by the feds at some point.

    “Those investigations and any irregularities that might be found in our foreclosure processes, along with any remedial steps taken in response to governmental investigations or to our own internal assessment, could have a material adverse effect on our financial condition and results of operations,” Bank of America said in its annual filing with the Securities and Exchange Commission.
    Citigroup said investigations and scrutiny of its own foreclosure processes have “resulted in, and may continue to result in, the diversion of management’s attention and increased expense, and could result in fines, penalties, other equitable remedies, such as principal reduction programs, and significant legal, negative reputational and other costs.”

    Not business as usual, but the tone in the required disclosures certainly wasn’t intended to sound alarms.

    As for the 50 attorneys general, the word is that they are talking settling with their targets for as little as $30 billion. Chump change, considering how much the mortgage industry took in during the run up to the housing meltdown.

    In some quarters, organized groups of homeowners (and post-foreclosure homeowners) are demanding prosecutions.

    Here’s a report about how the Comptroller of the Currency is angling to ensure the big banks aren’t hurt by the fines.

    If you have a bank account or a mortgage, it is a near certainty that your financial institution is in the throes of one or more investigations, is setting aside money to pay fines and legal fees — and may have already conceded wrongdoing. Here’s a wrap up:

    But this article about Countrywide’s former CEO gives clues as to why prosecutions aren’t likely. Basically, the CEO presided from the top as the fraud was perpetrated down the chain. The board of directors, internal auditors and the CFO were all kept in the dark, presumably. You can believe that, can’t you?

  15. hkcon,
    File a decloratory judgment action stating the loan was paid off in full within 6 months after it was consumated, and if the ‘wannabe trustee’ wants to proceed with fraudclosure it has to prove otherwise.

  16. john gault,

    PSAs generally state that Master Servicer must advance all delinquent payments — until time Master Servicer deems not collectible. Thus, a “guarantee” — perhaps, for 90 days or so.

  17. My question is: why aren’t all THIEVES suspending foreclosures? they all have done the same illegal moves to steal homes…….i guess HSBC is being made and example so that we all can go: Oh look, they are doing something about it!!! another distraction, when will it all end? never seen a thieve steal something, and it be known to the cops and they still run around free…..baffling!!

  18. Response from the Senator Jim webb (VIRGINIA) to my message to him through e-mail;
    Senator Jim Webb’s Response to Your Message.
    date Wed, Mar 2, 2011 at 4:12 PM
    subject Senator Jim Webb’s Response to Your Message.
    hide details 4:12 PM (1 hour ago)

    March 2, 2011

    Dear Mr. Raja:

    Thank you for contacting my office regarding accountability for financial institutions and consumer protection. I appreciate your taking the time to share your views with me.

    The reckless practices on Wall Street that led to the financial collapse of September 2008 were the product of greed and the failed oversight system in the government. These failures cost millions of American workers their jobs and risked the United States’ economic position in the world. On July 15, 2010, I supported the conference report to the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) because I believe we must act to prevent another financial crisis and future bailouts. Americans need a reformed financial system that restores an appropriate degree of regulation and control over Wall Street and our banking system.
    The financial reform legislation establishes a strong, independent consumer protection agency that will have the ability to conduct meaningful oversight and put consumers first, while exempting smaller banks and other businesses from potentially onerous regulation. The new bureau will establish a basic, minimum federal level playing field for all banks and, for the first time, non-depository financial companies that sell consumer financial products and services to American families.
    Regarding executive compensation and corporate governance, I am committed to promoting economic fairness and increasing corporate accountability. The Dodd-Frank Wall Street Reform and Consumer Protection Act includes multiple provisions to help ensure that executive compensation is held to a reasonable level. For example, this legislation requires all applicable financial institutions (including depository institutions, broker-dealers, credit unions, investment advisors, Fannie Mae and Freddie Mac) with more than $1 billion in assets to prohibit incentive-based pay for executives, employees, directors, or principal shareholders deemed to be excessive, or that could lead to material financial loss for the financial institution.
    To further address the issue of executive compensation and fundamental fairness, I introduced my Taxpayer Fairness Act as an amendment to Senate financial reform bill. My amendment would have given American taxpayers an upside in the recovery of our economic system, which became possible only because their tax dollars saved it. The amendment would have put a one-time windfall tax on bonuses paid in 2010 to executives of the thirteen financial institutions that received $5 billion or more of taxpayer support under TARP or the Housing and Economic Recovery Act of 2008 (Fannie Mae and Freddie Mac). This one-time, 50 percent excise tax on bonuses above $400,000 would raise, at a minimum, an estimated $3.5 billion. Nothing is more fair or appropriate than to make American taxpayers whole after they infused our financial system with capital necessary for its recovery. Unfortunately, the amendment did not come to a vote.
    The Dodd-Frank Wall Street Reform and Consumer Protection Act also authorizes the Securities and Exchange Commission (SEC) to promulgate rules allowing shareholders in large public corporations to have more of a voice when it comes to the corporation’s governance. Under this legislation, at least once every three years, public company shareholders will be able to cast a non-binding vote to approve executive compensation for qualifying financial institutions. Additionally, the bill authorizes the SEC to create rules allowing shareholders to nominate candidates for the public companies’ board through the company’s proxy materials. This is done through a process called proxy access.
    It is without question that additional efforts will be required going forward to ensure our financial system facilitates the growth of our economy without posing a risk to Main Street. In addition to close Congressional oversight of regulators, I am committed to ensuring that Congress addresses reform of Fannie Mae and Freddie Mac. I look forward to a full debate on the proper role of these institutions and working on a bill to address the risks they pose.
    In the early days of our republic, President Andrew Jackson established an important principle of American-style democracy: that we should measure the health of our society not at its apex, but at its base. That focus has been lost, as many on Wall Street have accumulated vast wealth while the middle class falls steadily behind. When regions of Virginia are experiencing more than 21% unemployment and so many working Americans continue to struggle in this economy, it is only just that our leaders protect the interests of America’s working people.

    As the Senate continues to address financial and consumer protection issues, please be assured that I will keep your specific views in mind. I hope you will continue to share your thoughts with me and my staff in the years ahead.

    I also invite you to visit my website at for regular updates on issues that are important to Virginia and our nation.

    Thank you once again for contacting my office.


    Jim Webb
    United States Senator

  19. To HSBC Why don’t you keep foreclosing on us, sucker lenders. You will still get free houses and buy insurance to pay off the investors.
    The top three do it all the time.
    Racine, Wi.

  20. Beyond speculation, does anyone actually know of psa’s or other contracts which impose a duty on a servicer or masterservicer or any other entity to
    guarantee the payment stream on mbs’s?

  21. I am trying to collect all MERS’ amendments to its
    member agreement. If you have any, please send them to

  22. hbcon, better go to the sale. I have been to one where a property scheduled never came up, and with no explanation.

  23. Does anyone know the UCC ramifications of a note stating it was executed in one state for a property in a second state, but which note was actually executed in a third state?

  24. hkcon

    I would print out the info. and send it to your trustee immediately. Also certified mail. Copy to the bank or whatever.
    You expect them to cease their actions in light of this new information, etc., and send you a response.

  25. Yeah, marketing a bunch of homes with clouded titles. Looks like their heads are still IN the clouds.

    I am wondering…what are they going to do in cases where judgments have been entered?

    “We are also reviewing foreclosures where judgment has not yet been entered and will correct deficient documentation and re-file affidavits where necessary.”

  26. You better check and make sure what is going on with the court in your foreclosure action. You may have to file for bankruptcy to stop the sale. Fight for your house.

  27. It’s about time these b…..ds get their come-uppance.They have been dealing this ponzi scheme for a long time and I have proof, since I am a victim. They have been stealing peoples’ homes for a long time. Arrogant

  28. I have a trustee sale date of 3/14/2011 and HSBC is named on the NOT as the trustee of blah blah blah, and I had a sale date of 2/14/2011 that I had to go to extraordinary measures to stop so I am assuming this has nothing to do with me or they really aren’t stopping.

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