HIGHLIGHTS OF FDIC/WAMU COMPLAINT —- USE IT!

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SEE THE WHOLE COMPLAINT: FDICWAMU

EDITOR’S NOTE: If the FDIC is right then many WAMU loans were not sold into the secondary market, at first. Chase probably did that when they acquired the portfolio. So the securitization profile is a little different and perhaps a lot different than the usual scenario. BUT it is also clear that the TILA violations giving rise to right of rescission are basically admitted by the FDIC and stated as a matter of fact. So it looks like the WAMU originated loans should be more targeted to TILA violations and a forensic mortgage analysis to  back that up, than the other cases where the loans were table-funded at the outset. It also appears as though they knew and fully expected that the borrowers were being deceived as to value of the property and as to the actual APR. Common law and statutory actions for fraud would seem to apply.

[APPRAISAL FRAUD] 5.    Defendants knowingly pushed their Higher Risk Lending Strategy at a point in the housing cycle when prices were unsustainably high. WaMu focused its growth in a few geographic areas – notably California and Florida – where housing prices had escalated most rapidly and were most at risk for significant decline. Defendants thus gambled billions of dollars of WaMu’s money on the prospect that the Bank somehow would manage to avoid losses on higher risk loans to high-risk borrowers in high-risk areas, despite their own awareness of the inevitable decline in the overheated housing market.

Once the “housing bubble” burst, they each knew that borrowers faced with “payment shock” likely would default in large numbers because they would no longer have an ability to refinance, and that WaMu would incur substantial losses because the collateral for the loans would no longer be sufficient to pay off the underlying loans.

118. Later, after significant numbers of WaMu’s Option ARM loans became delinquent or defaulted, Schneider admitted that the Bank – contrary to the Guidance – had relied on the ability of borrowers to refinance their adjustable rate loans. In a November 2007 email to Killinger, Rotella, and others concerning loan workouts for borrowers in danger of default, Schneider admitted:
“None of these borrowers ever expected that they would have to pay at a rate greater than the start rate. In fact, for the most part they were qualified at the start rate. . . .When we booked these loans, we anticipated an average life of 2 years and never really anticipated the rate adjustments. [TILA VIOLATION — APR MISSTATED BASED UPON LIFE OF LOAN EXPECTED AT 2 YEARS INSTEAD OF 30 YEARS)”

1. Officer Stephen J. Rotella (“Rotella”), and Home Loans President David C. Schneider (“Schneider”) caused Washington Mutual Bank (“WaMu” or “the Bank”) to take extreme and historically unprecedented risks with WaMu’s held-for-investment home loans portfolio. They focused on short term gains to increase their own compensation, with reckless disregard for WaMu’s longer term safety and soundness. Their negligence, gross negligence and breaches of fiduciary duty caused WaMu to lose billions of dollars. The FDIC brings this Complaint to hold these three highly paid senior executives, who were chiefly responsible for WaMu’s higher risk home lending program, accountable for the resulting losses.

3.    In order to achieve this level of growth in its HFI residential loan portfolio, Defendants layered multiple risks on top of otherwise inherently risky loan products such as Option ARMs, Home Equity Lines of Credit (“HELOCs”), and subprime mortgages. Option ARMs – WaMu’s “key flagship product” – enticed marginal borrowers with low teaser interest rates and modest initial mortgage payments. But those loans often resulted in “payment shock” could not afford them and owed amounts exceeding the value of their homes. In addition, HELOCs were sold widely, creating many highly leveraged borrowers with home loans of 90 percent or more combined loan-to-value ratios. Furthermore, subprime loans were made to one of the riskiest segments of the SFR market, borrowers with poor credit scores and bad credit histories.

4. risky products with additional risk factors, including stated income and stated asset loans approved with little or no documentation (so-called “liars’ loans”); loans to borrowers with high debt-to-income ratios who often could not afford to repay those loans; and loans to speculators and second home buyers who had very little personally invested in the property. WaMu not only originated these multiple risk-layered loans for its HFI portfolio, but also purchased similar risk-layered loans originated by third-party brokers, correspondents and conduit channels over which WaMu failed to exercise proper quality controls.

22. In a June 2004 Strategic Direction memorandum, Killinger presented a newfive-year strategic plan by which WaMu would take on “more credit risk (with more home his vision to grow WaMu’s assets “by at least 10% per year, reaching about $500 billion in 2009,” and achieve an “average ROE [return on equity] of at least 18% and average EPS [earnings per share] growth of at least 13%.” [E.S.] He also set forth an annual goal for 2005 to “[i]ncrease residential mortgage portfolio (primarily option ARMs) by $25 billion.”

On June 1, 2005, Killinger authored a second Strategic Direction memorandum, in which he acknowledged the most speculative “housing bubble” in decades:

The macro factor that troubles us the most is the rapid escalation in housing prices. We are currently experiencing the most speculative housing market we have seen in many decades. Reports from many areas of the country confirm rampant speculation…. Whatever the exact outcome, it is highly likely that housing will not be a stimulant to the economy and could easily become a significant drag on consumer confidence and consumer spending.

That same day, June 20, 2005, the Bank’s Chief Enterprise Risk Officer again emphasized to Killinger and Rotella the need for continuing credit risk management in connection with the five-year plan, and stressed a number of “present day realities”:
•    Home prices increasing unsustainably fast

•    Negative amortization and payment shock potential in our primary
product,    Option ARM Adjustable Rate Mortgages

•    Increasingly liberal credit terms offered in the market include: interest-
only, 100% loan-to-value, sub-prime second mortgages, higher risk loan
types available even at low borrower credit quality, and

•    Housing speculation by non-owner occupied buyers.

78. The Chief Enterprise Risk Officer similarly noted in an April 2008 Enterprise Risk Management Report that “WaMu is much more concentrated in portfolio-held loans than other assets when compared to its top ten competitors; WaMu’s loan portfolio is twice as concentrated in real estate loans.”

[FRAUDULENT CONVEYANCE] 198. In or about August 2008, Kerry Killinger and his wife, Linda Killinger, transferred their residence in Palm Desert, California, to two irrevocable qualified personal residence trusts (“QPRTs”) named the “KK QPRT I 2008 Trust” (which appointed Kerry Killinger as trustee) and the “LCK QPRT I 2008 Trust” (which appointed Linda Killinger as trustee).
199.    In or about August 2008, Kerry Killinger transferred an undivided one-half interest in his residence in Shoreline, Washington, to his wife, Linda Killinger. Shortly thereafter, Kerry Killinger and Linda Killinger each transferred their respective undivided one- half interests in this residence to two irrevocable QPRTs named the “KK QPRT II 2008 Trust” (which appointed Kerry Killinger as trustee) and the “LCK QPRT II 2008 Trust” (which appointed Linda Killinger as trustee).



 

8 Responses

  1. SASC 2006-WF3 ‘M9’ & Abacus….

    Issuing Entity: Norwest Asset Sec Corp Mort Ps Thr Cert Ser 1998-1 Trust

    Why is the ‘loan trust’ listed in the Complaint of Foreclosue not recorded as an individual trust?

    Answer: UK London Foreign trusts don’t have to be.

    Why is the ‘loan#’ not in the PSA of the ‘loan trust’ referenced in the Complaint of Foreclosue?

    Answer: Real Estate, Banking & Insurance Frauds.

    When are substantive omissions of material facts considered intent to harm? When they are created (3) years prior and used for a Default Event

    See: ‘Unassociated Documents’ and ‘Reconstituted Servicing Agreement’ which clearly calls for SERVICER employee to create documents and file falsified documents with public offices.

    Question: Why would the SERVICER’s ‘bank’ create a loan during the default event ? Takes a BUYER and SELLER to collaborate and benefit from the unlawful business acts which in this case are Lehman Brothers & Wells Fargo.

    Why does Wells Fargo & Co/MN utilize the following Issuing Entity as a ‘Filing Agent’ on the SEC to record the 10K’s which contain CERTIFICATIONS from the private brand lable ‘Wells Fargo Bank NA’ Officer that the ‘loan trusts’ are lawfully reported.

    Norwest Asset Sec Corp Mort Ps Thr Cert Ser 1998-1 Trust
    C/O Norwest Bank Minnesota N A
    1100 Broken Land Parkway
    Columbai, Maryland 21703
    Incorporated in NY:

    QUESTION: Are there reall 25,835 SEC FILINGS 3/10/98 to 3/24/11 (10K’s) of related Wells Fargo Bank NA Officer Certifications that the ABS Asset Backed Securities transactions are lawful?
    NOTE: NO IRS #
    SEC CIK 1056404
    6189 Asset Backed Securities (ABS’s) as of 12/20/99
    (PS -The Registrant misspelled Columbia.)

    YES IT IS TRUE! The Registrant: Norwest Asset Sec Corp Mort Ps Thr Cert Ser 1998-1 Trust recorded 25,835 SEC Filings from 3/10/98 to 3/24/11. 3/24/11 is ‘Sequoia Mortgage Trust 2010-H1’ a most interesting trust.

    ssuer, under Securities Act 1934, 3/10/98 last filing 12/20/99 SEC File# 333-21263-22
    Researcher only finds the following documents: 8-K, 15-15D, 10-K, 10-K/A.

    There are 23 Affilaite Relationships that link into 1996 and before all link thru registrants existing relationships .

    In 1996, (GMAC-RFC, Chase Manhattan Mortgage Corp, Colony, Norwest… Foothills Group) are responsible for the newly acquired affiliate ‘(“NASCOR”) see below (largest producer of non-conforming mortgage products)
    3/10/11 Wells Fargo Asset Securities Corp [formerly Norwest Asset Securities Corp ]

    1/27/99 15-15D Reports
    Notice of Suspension of Duty to File Reports — Form 15 1
    ________________________________________
    Time Capsule:

    http://www.secinfo.com (create your free account and look at the documents yourself).

    ———————————————————————-

    SASCO 2006-WF3 10K “For 12/31/06”

    10K’s are annual reports.

    “A new definition of “MERS Eligible Mortgage Loan” is hereby added to Article I immediately following the definition of “MERS” to read as follows:

    MERS Eligible Mortgage Loan: Any Mortgage Loan that has been designated by the Servicer as recordable in the name of MERS, as nominee.

    New definitions of “Non-MERS Eligible Mortgage Loan” and “Non-MERS Mortgage Loans” are hereby added to Article I immediately following the definition of “Non-Assigned Letter of Credit” to read as follows:

    Non-MERS Eligible Mortgage Loan: Any Mortgage Loan other than a MERS Eligible Mortgage Loan.

    Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage Loan.

    ———————————————————————-

  2. SASCO 2006-WF3 12/31/2006 10K

    One consumer loan tracking transactions and loopholes revealed the fraud, theft, intent to take properties by deception, banks as a superior class allowed to enable third parties to take possession of consumer property in larcenous manner, thur misrepresentation, false claims, false statements.

    All of the federal administrativde agenices that are ineffective and a waste of the tax payer’s money should be eliminated and Elizabeth Warren allowed all of the budgets and to start over. Are there a few good men and women in this agencies who are patriots?

    Office of the Comptroller of the Currency and The FTC, SEC, FRB, OTS, OCC, HUD, FDIC…
    should be shut down and every dollar given to my hero ‘Elizabeth Warren!’

    Who let the entire real estate industry of the United States of America be controlled by foreign organizations?

    ——————————————————————–

    Executive Vice President
    Mary Coffin

  3. M9- SWAPS – I have one! SASC 2006-WF3 ‘M9’ and I’ve reported the ‘insurance’ fraud related to Wells Fargo to the only place a consumer is allowed under that damn private brand label ‘stamped’ on every transaction forces information into the black hole the Office of the Comptroller of the Currency.

    Mary’s here where is President Barack Obama?

    I need a Ghost Writer? Can an Attorney with the skilsl of excellence create a well written Petition to Redress we can use to send to our President and Congress both houses.

  4. FROM: Citizens of the United States of America Full Address, Phone, Email

    TO: Dear President Barack Obama,

    SUBJECT: PETITION TO REDRESS GRIEVANCES (WRONGS) BY CONGRESS, ATTORNEY GENERALS, FOREIGN ORGANIZATIONS, BANKS OPERATING AS FINANCIAL HOLDING COMPANIES PRAYERFULLY SEEKING AUTHORITY SEEK INJUNCTIVE RELIEF THRU EXECUTIVE ORDER, CLEAR DIRECTION AS WE ARE UNDER ATTACK, THIRD ELEMENT OF OUR NATIONAL SECURITY, THE ECONOMY.

    We, the citizens’ of the United States of America, and submit to you our petition to redress grievances under the First Amendment our most powerful right as a citizen in good standing and seek injunctive relief and enforcement of laws created to protect the welfare of the nation. Who should stop the foreign organizations takings of property in larcenous manner? In 2003, banks were allowed to produce loans without the required documentations SEC subjected to fierce opposition from the banking industry as well as from federal banking regulators and members of Congress,3 virtually stopping the SEC in its tracks.
    Why have you forsaken us? Is the harm real? Is the nation in danger? Residential properties seized one mortgage at a time unlawfully by foreign organizations who are not the lawful party with Standing. Consumers are an inferior class and denied due process of law. Consumers are without access to a body of skilled attorney’s who practice foreclosure defense. Do you believe the spin of the press? Have you given up on us? We read in the U.S. Constitution that Congress, the Attorney General’s are overstepping their limited powers, and that you are not using your limited powers. Why are the Attorney General ‘s forced to work without direction and authority? They are subject matter experts who are skilled counsel who serve at your pleasure to enforce laws. We have lots of research (data facts) evidence to turn over to the Attorney Generals. Every consumer in a complaint of foreclosure has evidence that the Substitute Trustee and SERVICER are not the lawful party with standing, that they created the loan during the default event, the Reconstituted Servicing Agreement pulled for the SERVICER’s Client is a public document and show intent to take property by deception. Together we can quickly Attorneys General could have already built a case in each state revealing the facts of harm and injury.

    • Is this Truth or Dare? The Federal Reserve Bank of Dallas is warning us that the USA is on the verge of collapsing. Is the economy still recognized as the third element of our national security? We are under attack!
    • Are we to inform our children, that they and their children’s children are now an inferior class of consumer?
    • Are we to inform our children that we are unable to keep them safe in life and property?
    • Are the Attorney Generals’ serving at your pleasure as our Commander in Chief?
    • Who are responsible for diverting attention away from you and the ‘112th Congress’ who are with duty to protect the welfare of the nation, vested powers, and tools such as Executive Order whose oath is to protect the United States of America.
    • Why do you enter office looking forward and not back? History of how the foreign organizations took over the United States Real Estate Industry of paramount importance. Does your statement looking forward mean you are looking past the 112th Congress? To the next term?
    • Why do you allow Mr. Geither who stated incorrectly that ‘We’ which appears to mean you and he are without authority?
    • Why do you allow the 112th Congress to spin like children out of control?
    • Who is responsible for preventing the 112th Congress from overstepping limited powers for the do prevent enforcement of laws in all matters related to commerce and I have not heard a declaration that the 112th Congress has decided their acts or lack of acts are with intent to protect the welfare of the nation?
    • Why do you allow the 112th Congress and yourself to be mute and harm to befall the nation?

    A long time ago, Congress would not allow a farmer’s wife to grow their own food on their own land in order to protect the welfare of the nation. We prayerfully ask what are you going to do?

    Please declare whether we are an inferior class of consumer.
    For we are without knowledge as reasonable consumers and did not know that the financial products and financial services placed into the public domain for consumer consumption were indeed defective at the time of sale, and the defect incorporated into the supply chain. We did not know that a foreign organization controlled the real estate industry and were inflating property values to launder money out of the nation one mortgage at a time.

    Do you agree that the foreign organizations targeted consumers individually with intent to harm the economy? The only weak link they used as a weapon of mass destruction and did not use an atomic bomb but fraud and theft. Why does our President armed with accurate facts which prove the intent was to take residential properties deceptively into a supply chain which sold discounted loans. Surely 2003 decision to promote “Mayhem” MERSORG, Inc. subsidiary ‘Mortgage Electronic Registration System’ a DE company, was intentional. Part of a con mans game, literally the smoke and mirrors through which your attention was taken away from the real crimes, the collaboration of foreign organizations who are related did with intent and in collusion engage in ponzi and money laundering schemes.

    May 2003, the foreign organizations thru the lobbyists got Congress to allow the superior class operating as financial holding companies to not provide full documentation when doing business that involved (banking, insurance, and securities).

    The “Straw man breaking the camel’s bank” thru pure fraud, theft, real estate, banking and insurance frauds. Frankly another loophole and requirement the lobbyists got invoked that the United States of America disclaimer insurance companies cannot fail!

    Are we as reasonable people expected to lay down or fight back and protect our nation as patriots and citizens of the United States of America? We can’t fight the good fight inside of the Superior Court of Equity whose Jurisdiction rests within four corners of the contracts. The Attorney General’s are without significant evidence unless they take each consumer’s complaint of foreclosure and if they do we will win allowed as Plaintiff to bring forth evidence before the Judiciary who will rule based on law over the subject matter. Please advise.

    Prayerfully and Respectfully,
    Mary Cochrane
    Citizen of the great State of New Jersey

    The superior class of consumer – banks operating as financial holding companies may have a United States Address but their foreign parents have long-arm reach into the United States of America and continue taking possession of consumers’ real and personal property in larcenous manner.
    Why do you allow foreign organizations who covet consumers real property to now follow the laws of the United States of America.
    We Petition Redress of Grievances seeking our President to protect the inferior class of consumer seeking prayerful injunctive relief to joinder with the 93 US Attorney Generals Class Action Lawsuits and bring forth the evidence in each complaint of foreclosure and/or bankruptcy, in each of the 50 states and US Territories the evidence to bring forth actions against the Substitute Trustee and SERVICER and…
    112th Congress including Congressman Scott Garrett continue to look the other way and ignore the petition to redress grievances seeking enforcement of laws that would protect the welfare of the nation one mortgage at a time!
    12 months the OCC ignored the alleged unlawful business acts Wells Fargo Home Mortgage Institutional Lending conspired, collaborated, and hide origination frauds. 3/13/2000 forward with intent one mortgage at a time. Following one Wells Fargo 80/20 loan transactions for a refinance created June 2006 allowed a view of Foothill & Bitterroot morphing 4 IPO’s out of the non-Frederick MD brokers affiliates of Cendant Settlement Services. Today Foothills morphing Ally IPO out of GMAC-Residential Funding – Norwest as related to Wells Fargo & Co/MN Norwest.

    Respectfully awaiting your decision as my President our Commander in Chief,

    http://www.whitehouse.gov/contact
    PROVIDE A ‘HEADS UP’ EVERYONE
    SEND YOUR Maximum 2,500 word version send via weblink above

    PETITION TO REDRESS GRIEVANCES (WRONGS) BY CONGRESS, ATTORNEY GENERALS, FOREIGN ORGANIZATIONS, BANKS OPERATING AS FINANCIAL HOLDING COMPANIES PRAYERFULLY SEEKING AUTHORITY SEEK INJUNCTIVE RELIEF THRU EXECUTIVE ORDER, CLEAR DIRECTION AS WE ARE UNDER ATTACK, THIRD ELEMENT OF OUR NATIONAL SECURITY, THE ECONOMY.
    The right of petition is expressly set out in the First Amendment:

    “Congress shall make no law … abridging … the right of the people … to petition the Government for a redress of grievances.”
    — from the First Amendment

    The petition clause concludes the First Amendment’s ringing enumeration of expressive rights and, in many ways, supports them all. Petition is the right to ask government at any level to right a wrong or correct a problem.

    Although a petition is only as meaningful as its response, the petitioning right allows blocs of public interests to form, harnessing voting power in ways that effect change. The right to petition allows citizens to focus government attention on unresolved ills; provide information to elected leaders about unpopular policies; expose misconduct, waste, corruption, and incompetence; and vent popular frustrations without endangering the public order.

  5. . YOU ARE SO RIGHT, THIS IS THE WAY TO GO NOW, I SENT HAD A FORENSIC LOAN AUDIT DONE, MANY VIOLATIONS ON A N INTEREST ONLY CHASE LOAN FROM 2005, SENT A QWR, NO RESPONE RECEIVED AFTER 45 DAYS, JUST SENT LETTER TO THE OCC, MORE TO FOLLOW. THANKS FOR ALL YOUR WISDOM.

  6. Question: I made a complaint to the WA St Dept of Revenue a yr ago about the foreclosure trustee’s NOT paying excise tax on the conveyances to the “trusts” or to a different lender than the one that they name as “beneficiary” on the Notice of Trustee Sale. There should have been excise tax paid on each sale, because the trustees were claiming “mere change in identity” as the reason to waive the tax, but we all know that the original lender and the one that gets the house are two different entities…..The DOR was investigating the situation, but after I recently saw that the foreclosure trustee’s are now just direct deeding the homes to FDMAC or FNMAE upon sale. So when I asked the DOR about that, they said that they stopped their investigation because FDMAC and FNMAE were government entities. I cry CRAP. When I try to ask FDMAC for a Freedom of Info Request to find out who my investor is on one of my notes that they say they own, they tell me that they are not subject to the FOI act. So that means they ARE NOT government, doesn’t it? And I have seen cases where there was a suit between IRS and FDMAC over interest FDMAC owed and said they didn’t. How can one government division sue another, didn’t think they could. So why would the DOR stop investigating the Trustee Deeds to FNMAE AND FDMAC that claim “mere change in identity”?

  7. Where’s Mary? This is the action I’ve been wating for! If these Lehman loans that Wells is collecting on were really Lehman property (Citigroup Global Markets was Securities Underwriter on these deals) involved in the Repo-105 deals, Wells is collecting the collateral that belongs to Lehman and subject to the bankruptcy court’s jurisdiction.

    LEHMAN TRUSTEE FILES $1.3BILLION SUIT AGAINST CITI
    The trustee overseeing the liquidation of Lehman Brothers Inc. filed a more than $1.3 billion suit against Citibank NA in New York on Friday, seeking to recover money the bank took from LBI as it was winding down.

    “Money” could have been anything (securities or swaps). M-7 and M-9 swaps were in Maiden Lane 1 (WFHET 05-2).

  8. Chevy Chase Bank anyone? A little help please.

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