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EDITOR’S NOTE: When the walls start to crumble as they are at Goldman, BOA, Citi and Chase, the biggest fear that emerges is who is going to “flip” and turn into the prosecution’s star witness. Then the race starts to be the first because those who attain that status get the best deal including the possibility of immunity. As things progress, I believe we will be startled at how fast things start to unravel. The veil of mystery has been pierced already and now the prosecutors and regulators are digging down deeper to the real facts. The banks while still exerting substantial influence over the popular narrative through the media, are losing grounds on all fronts. People who work for the banks and know exactly where the skeletons are hidden or have important clues for tracing the money, are thinking about the value of offering themselves to the prosecutors in exchange for a deal. Some are there already.



Goldman Sachs Group Inc. executives expect to receive subpoenas soon from U.S. prosecutors seeking more information about the securities firm’s mortgage-related business, according to people familiar with the situation.

Officials at the New York company believe the Justice Department will demand certain documents and other information, possibly within days, these people said. Spokesmen for Goldman and the Justice Department declined to comment Thursday.

Subpoenas don’t necessarily mean criminal charges against Goldman or individuals at the firm are inevitable or even likely. The company turned over hundreds of millions of pages of documents to the Federal Crisis Inquiry Commission, a 10-member …

41 Responses

  1. The biggest fraud — comes from servicers — who falsely placed GSE loans into default by misapplying payments-perhaps, by misapplied homeowners escrow insurance payments. This occurred — before homeowner ever actually defaulted. And, occurred before homeowner ever “signed” a subprime mortgage (false) “refinance.”

    The fraud occurred before homeowners ever knew fraud was occurring — and BEFORE — they ever actually missed a payment.

    Servicer reliance?? No — servicer manipulation to to falsely “buy” false default collection rights – from GSEs — by manipulating records – and insurance.

    How else do you think Wall Street shifted mortgage market from GSEs to Wall Street??? Fraud, fraud, and more fraud. Insurance — false — carried the day.

    Origination?? At subprime refinance?? Think again. Did not happen. All in place — manufactured default — insurance fraud — all before “Joe” homeowner even blinked an eye at fraudulent subprime refinance so-called “signing”.

  2. jj005

    No, of course not. One thing I am is someone that has been defending homeowners for many years as a special service to those who cannot pay for it. But in doing so, one has to really understand the mindset of those performing loan servicing technique, the good, the bad and the ugly.

    I apologize if you two might have been offended, but the most important issue here is that when we go after the banks and their ways and means, that we have proper support to back it up. Nothing worse.

    Not sure about shooting the messenger – I sure wasn’t trying to do that – just trying to offer some help that would save her a lot of pain and suffering.


  3. Ms. Cauthen,
    Don’t shoot the messenger.

  4. Carie and Trish:

    I don’t think someone is setting Trish up but of course nothing would surprise me at this point.

    The records will clearly indicate why they were paid if no escrow was being collected and/.or the borrower pays his own. If he does, then the servicer may consider this tax as not being paid on time and penalty and interest would be accruing.

    In order to prevent a lot of penalty and interest, if the borrower has not paid by Feb or March, the tax service for the investor orders and pays it based on approval. Has nothing to do with setting people up unless there is something in the records to show that Trish had one arrangement and the servicer did not comply.

    20% negligent loan servicing has created and caused the foreclosure situation – but I do not believe this action was done for setting someone up.

    Been in the business for over 40 years, auditor and examiner and manager in the good old days for four or five mortgage servicers –

    tell all the details of the transaction and we can determine what happened. Too much stuff being thrown out there that can be taken care of by the borrower getting control early on the situation and going after the FDCA if the servicer is out of line. That is a good tool.

  5. From another comment section here—(re. taxes)

    trish, on May 21, 2011 at 8:36 am said:

    when I went to pay my property taxes online, lo and behold, there was a notation on my account information that I had no balance owing and it showed that my property tax installment in April had already been paid. This was strange, since I did not pay it yet. I called the Tax Collector and they provided me with a copy of the payment information. This is how I found out that someone was setting the stage to take over our home. Amazing. FOLLOW THE $$$ is great advice!

  6. Shoot! Two Steve’s on board. I was doing well there for years. Yes, Steve #2 do tell us.

  7. I have a problem typing the word “note” so my statement about taxes discharged in bankruptcy is not correct. Normally taxes were not dischargeable in BK. Any BK experts here.

  8. Carie:

    That is an excellent question – and more people should want to know because it goes back to that deficiency that may eventually make its way to you if your are foreclosed on.

    The servicer under the servicing agreement must assure that the homeowner pays the taxes but if the escrow is collected for – that that responsibility goes to the servicer for paying and they should be sued for not doing so – as your loan agreement says they will collect for taxes and insurance.

    Most servicers attempt to pay all taxes before the foreclosure date in order to assure good title by the trustee’s deed is conveyed without tax liens that are discharged during a bk.

    Most importantly – you need to check with an attorney and/or state law under your Property Tax Code. The taxing authority may look to you as liable, but you will be looking to the mortgage servicer/investor.

    You are doing the right thing to check on this issue.

    Some servicers are holding off at the pass when it comes to paying taxes on loans that are in default and many will step in at the last minute and pay them so as to protect the certificate holder’s investment. However, because of cash flow issues, believe it or not, some servicers do not want to anti up until the last minute, or not at all.

    1) Pick up a taxes paid info sheet at the taxing authorities office and match it up with the mortgage payment history (or false reconciliation they seem to be handing out these days) just so you can know and no surprises ahead.

    Your state’s regulations with respect to Real Property taxes vary so take a look.

  9. jjg007

    The attorney general is and has been aware I am sure of thousands of stories already that have been told about the fraud which the homeowners have been subjected to:

    Her job now is to commit to the homeowners who show up – exactly what her strategy would be for pulling it off.

    This nation and the global economy and even one representative in California expressed these past ongoing years about the horrendous fraud and the negligence by the servicers (intentional that it was) and now she wants to hear MORE STORIES –

    I wish something would come out of it, but this appears to be more of the same to buy time for the financial services industry, and political action.

    Sorry about that chief.

  10. I guess when I agreed to the “loan” back in 2006, they SHOULD have said to me:

    “OK! Just sign on the dotted line so we can use your house like a credit card and sell the debt over and over and even get insurance for it, and then later after the economy crashes REALLY hard, we can steal your house by pretending we have standing, and kick you to the curb, ’cause even the judges won’t know what the hell is going on!”

    I don’t think I would have signed…

  11. I have another question for someone:
    My original “loan” had the property taxes and insurance included—when/if it is discharged in BK, will I eventually get a property tax statement from the year of default?

  12. Thanks ANON— So, when my “servicer” sends me an email with a copy of a (bogus) Substitution of Trustee (Deutsche with trust #), and says “This is proof that Deutsche Bank owns your loan …” This is a FALSE statement, because the trust is empty, or no longer exists—correct?

  13. Credit reports — nearly impossible to fix. Have to examine every fine detail, check addresses, etc.

    Know of incidences where “verification” is sent to a person with a cell phone.

    Carie — Debt is debt — former mortgage now just like a credit card debt. Insurance covers the default – and collection rights are swapped out (of trusts) — or directly sold – to a debt buyer entity. When you pay on any “debt” — you do not know who you are paying — and, therefore, remains — unpaid.

    However, for mortgages — credit reports will show — after insurance kicks in — that the account is PAID – IF there is a “refinance” on the already insurance paid debt. But, if you check the fine details — PAID status cannot be viewed as accurate to potential creditors. Details will likely give this clue.

  14. Ian,
    Please inject them with FCRA and they will not report any thing

  15. usedkarguy—I am awake—just thought I’d ask…you don’t have to be rude…

  16. ANONYMOUS- I have questionable items being added to my credit reports by my ‘servicer’, and since I signed up for a Fraud Alert service, I get notified immediately. Will contact you over the weekend, pls check if you have time. I think I need a FDCRA savvy atty to see what is going on, some of this stuff makes my head spin. Not good. Definitely more fraud. thanks, Ian

  17. carie, wake up! You’ll get nothing!

  18. Here’s a change in direction we like to see:

    Countrywide Investor Class Action is Allowed to Proceed After Appeal

    A California appeals court on Wednesday overturned a judgment that forced investors accusing Countrywide Financial Corp. of misrepresenting the quality of its mortgage-backed securities to litigate their billion-dollar class claims in the federal courts.

  19. Holly Shit! Remax commercial says, ” Not long ago people got over priced out of their homes.” WTF are they trying to say?

  20. I have a question for anybody who might know—I sent one payment for a “trial mod”, before I realized the extent of the fraud—do I have the right to get that money back? If so, how would I do that?

  21. Thanks, ANONYMOUS…so, is it possible for you to explain the insurance aspect of it in simple terms—like my credit card analogy???

  22. carie, on May 20, 2011 at 10:50 am

    ABSOLUTELY. And, there is a whole more. Spelled — I-N-S-U-R-A-N-C-E.

  23. Here’s another OUTRAGE, everyone. Just when we thought it couldn’t get any more corrupt…

    Yes, you read that right, the banksters get to “pick the experts.” And the “expert” pool consists of at least one accounting firm who gave Lehman Brothers, Bear Stearns, Washington Mutual, AIG, Countrywide, New Century, Citigroup, Merrill Lynch, GE Capital, GMAC, Fannie Mae and Freddie Mac a “clean bill of health” shortly before the financial crisis that took most of these entities down.

  24. To: The A Man, and rest of those in the Fight:

    Thank you so much for the heads up about
    the LA Pow Wow this Monday -5/23/2011

    For sure I will be there!

    Now to share some info with everyone as it relates to confronting the “pretender lenders”.

    OneWest Bank had a motion to compel for discovery against me- I refused to answer them, because they lacked standing in the litigation I am involved in.
    Judge sided with me- and issued sanctions to them for $750!
    Here is what this Judge “who gets it” based his ruling on:

    SECTION 387-388

    387. (a) Upon timely application, any person, who has an interest
    in the matter in litigation, or in the success of either of the
    parties, or an interest against both, may intervene in the action or
    proceeding. An intervention takes place when a third person is
    permitted to become a party to an action or proceeding between other
    persons, either by joining the plaintiff in claiming what is sought
    by the complaint, or by uniting with the defendant in resisting the
    claims of the plaintiff, or by demanding anything adversely to both
    the plaintiff and the defendant, and is made by complaint, setting
    forth the grounds upon which the intervention rests, filed by leave
    of the court and served upon the parties to the action or proceeding
    who have not appeared in the same manner as upon the commencement of
    an original action, and upon the attorneys of the parties who have
    appeared, or upon the party if he has appeared without an attorney,
    in the manner provided for service of summons or in the manner
    provided by Chapter 5 (commencing with Section 1010) Title 14 of Part
    2. A party served with a complaint in intervention may within 30
    days after service move, demur, or otherwise plead to the complaint
    in the same manner as to an original complaint.
    (b) If any provision of law confers an unconditional right to
    intervene or if the person seeking intervention claims an interest
    relating to the property to transaction which is the subject of the
    action and that person is so situated that the disposition of the
    action may as a practical matter impair or impede that person’s
    ability to protect that interest, unless that person’s interest is
    adequately represented by existing parties, the court shall, upon
    timely application, permit that person to intervene.

    I hope this helps some of you out there.
    Right now I cannot provide details of the
    case itself, because it is very contentious
    and I do not want to undermine my

    Ps- Brain Davis- thank you for all of your posts
    to this blog and your uploads to Scrib as well.

  25. They are too big to fail after all. So this is merely a political ploy of some kind to make the populace feel like justice will be served.

    I wouldn’t be holding my breath on it.

  26. New book speaks to this time of “mutual deceit”**

    **from baha’

  27. Carie,
    I think you’re onto something with the “Notes as credit cards” analogy. If we view the Note as the credit card, then we, the “borrowers” are actually the lenders. This is not controversial and is openly admitted in a number of places (Patman’s “Primer on Money,” the Fed’s “Modern Money Mechanics” pamphlet, etc,).


    Press Advisory
    May 19, 2011
    Media Advisory
    Contact: (415) 703-5837
    Print Version

    May 23: Attorney General Kamala D. Harris Announces Major Initiative to Protect Homeowners from Mortgage Fraud

    WHAT: Attorney General Kamala D. Harris will make a major announcement regarding criminal and civil responses to mortgage fraud. She will be joined at the announcement by Los Angeles Mayor Antonio Villaraigosa.

    Immediately following the announcement, representatives of the Attorney General’s office will convene a roundtable where Los Angeles homeowners will describe the crimes, frauds, and other scams to which they have been subjected.

    Monday, May 23
    2:45 p.m. – Announcement
    3:45 p.m. – Roundtable

    Office of the Attorney General, 1st Floor
    300 South Spring Street
    Los Angeles, CA 90013

    Please RSVP at or 415.703.5837 by close of business on Friday, May 20.

  29. Yes Steve, do tell?

  30. @Zoe

    I find previous posts through the search box…type in a word or two from the title of the post…if you can remember…

  31. So, somebody tell me if this is a close analogy:

    “They” treated our houses/notes like a credit card, not a real mortgage…that’s why, after all the shenanigans they pulled, it ultimately becomes unsecured debt, and they don’t care about the foreclosed houses (Deutsche and others), because the house is basically like a credit card that they don’t care whether or not you “cut it up”…they got what they wanted from the whole “transaction”…

    And, of course, they had to create MERS so they could do their money laundering…and not pay county fees…

  32. I cannot pull up and chase/chase – what is happening to these websites?

  33. Yes, Steve–details please of how you determined that your nephew’s loan was sold to 45 different pools!

  34. The obvious question here for me, Steve, is how did you find out his loan was sold 45 times?

    Off the topic a bit, but can someone tell me if this site has a way to access previous posts that roll off the list?

  35. Hope this doesn’t turn into another dud like the “Wikileaks set to expose Bank of America” info. Not trying to blame the messenger, i.e. Neil, just saying I’m exhausted from getting my hopes up and then having them smacked down…

  36. steve:

    any shortcuts for determining this?

  37. Action Alert

    M. Soliman and hopefully a representative of Neil Garfield’s Blog and anybody else who thinks they get it. you have a big opportunity and it is near you Mr Soliman The meeting is in Downtown Los Angeles..

    You can go meet the Attorney General of California and the Mayor of Los Angeles and plead your case

    Be Strong and Courageous

  38. One can only hope.

  39. Boy, how I now beleive thsi!!! We just found that my Nephews loan was sold to 45 different Pools. And it wasn’t sliced and diced!!!! WOW!!!

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