FANNIE MAE DOES THE DIRTY WORK FOR BANKS: TRYING TO STEM THE RISING TIDE OF STRATEGIC DEFAULTS

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Author: Donna Fasi
Comment:
This response is my reaction to the news on June 23 that Fannie Mae is going to punish borrowers for walking away from their homes. Do your homework. Millions of borrowers from every walk of life TRIED to work with their servicers for MONTHS and MONTHS prior to ultimately losing their homes to foreclosure, or walking away because they had no other choice.

This scenario happened thousands of times, people called the banks for a work out, repeatedly, and could not get help because bank servicers could not or would not implement policies and procedures for handling the volume of borrowers in trouble and assign caseworkers individually to borrowers. Servicers repeatedly lost paperwork, dragging the loan modification issue on far longer than it needed to be to help borrowers, and in 90% of the cases, waited so long to start the load modification process that the borrower was dragged into foreclosure proceedings. I am incensed that you and this agency feel it is necessary to punish borrowers who “have the ability to pay”.

Why should a borrower continue in a property that is upside down nearly 50% paying interest only for the next thirty years. Why can’t Fannie Mae write down the principal to the assessed value of the home and then work a loan modification, and do it in a timely manner, like 45 days? Your government agency is contributing to the problem by making things harder for unemployed and underwater homeowners, many of whom are the victims of mortgage fraud in the first place! Taxpayers bailed out banks and your agency and this is how they are repaid? The concept of punishing unemployed and underwater borrowers who have suffered the last three years because of Wall Street greed and gambling with their homes is sickening.

And to further the problem by initiating policies that keep a borrower from buying a home for seven years is unconstitutional. A person has a right to buy a home under any circumstances, it is not your agency’s right to decide when and where or under what circumstances an American citizen can purchase a home. You need to remember where you are, who pays you, and what your agency is there for. I will not stand by and watch this agency cripple the American people by creating rules and policies that ultimately will cause more challenges and lawsuits in the courts. This new decision your agency made against homeowners is a BAD policy.

It has not been capably researched and does not do anything to assist the underwater borrowers whose homes lost their value through no fault of their own. The best thing you can do is abandon this policy, and come up with something that writes down the principal in a speedy modification, and if the borrowers are unemployed with no prospects for employment in the near future, offer them some options to purchase the property at a fair price that enables them to buy another home free and clear somewhere else, or you make the payments so low they can continue to live in the house, this means principal write downs of 30-70%!

Since most of the servicers, banks and government agencies have already benefited from these mortgages going into default through mortgage insurance, securitization and other means, THERE IS NO HARM DONE TO FANNIE MAE OR THE SERVICERS. Everyone is well aware of this, nobody is losing anything by writing down the mortgages and slashing principals far below their current value. If you will stop trying to profit from this mess and start trying to make a concerted effort to help all borrowers (whether they can pay or not), the first thing to jump start the economy again is to get these borrowers paying at a level they can afford, and this means not paying 30% of their gross income to a mortgage, it means paying 15% or 10% of their gross income to their mortgage.

Increasing disposable income starts the economy again, you are all acting like greedy idiots that have no place in running any agencies. I could do your job with my hands tied behind my back and get further in twenty days then you have done in four years. This new policy is unconscionable and deserves to be trashed. I will do everything in my power to get this policy of punishing borrowers for walking away from their homes eliminated. YOUR AGENCY AND LOAN SERVICERS CAUSED STRATEGIC DEFAULTS! AND NOW YOU WANT TO PUNISH THE HOMEOWNER? I’ll spend the next ten years of my working life along with millions of other Americans fighting you and lobbying to eliminate your agency for behavior like this. Your agency was created to help homeowners, not punish them. I am forwarding this email to every blog and foreclosure defense website I can find, I hope they all get on board and raise the biggest stink you ever heard.

72 Responses

  1. I thank you all for the kind words on this site to my vehement response to the article sent to me from Good Grief America regarding the Freddie and Fanny threats to make homeowners “pay” for walking away from their mortgages. My response was written to Good Grief America on June 30 and somehow landed here on Neil’s site. This is my first time back since June 30 due to my intense workload and my own lawsuit against HSBC bank for the illegal foreclosure of our farm in Colorado, adeptly represented by Jeff Barnes, Esq. I see that several of you responded to my blog, and I apologize for not getting back here sooner to see your responses. It does seem that the tide is finally turning, but our judges need to be better educated! Especially in non-judicial states! These laws were written for lenders, not homeowners, and they need to be changed. Property rights should not result in borrowers losing all their equity to foreclosure if they get into financial trouble and can’t meet their obligations for a period of time. It is not fair that someone pays on a mortgage for three quarters of their loan term, only to lose the property AND the equity because they lost their job, or have a medical emergency. A lender should not be able to foreclose and take the property, I’m all for collecting on the debt and getting a judgment, making arrangements to pay, figuring it all out so it works for both parties, if in fact the loan was legal in the first place and not a fraud like mine was.

    But to have laws that allow some lender to evict you from your home that you paid for, improved, suffered over, sacrificed for, and they get the property, they get to buy it back for the mortgage owed instead of the appraised value thereby wiping out any and all equity or proceeds from a sale after the mortgage is paid to the homeowner is simply just plain wrong! None of the laws in the non-judicial states (and some judicial states) protect the homeowner’s equity or property rights when the deed of trust as written is in direct conflict with contract law and property law. Yet the deed of trust with all its illegal clauses is accepted as standard format for any mortgage universally and unchallenged! How can this document be legal, or enforceable? The fact is it is not a legal document, never was and never will be, and our judges need to get educated and recognize that a borrower does not understand that the power of sale clause in a deed of trust is the most fraudulent piece of trash ever written and the one paragraph in a deed of trust that enslaves the homeowner to the lender in perpetuity. Once you sign that deed of trust the power of sale clause kicks in and you become, not a homeowner, but an interest only “renter” paying your monthly rent to the landlord, and you not only give them the right to show up on your doorstep at any time and seize your home, whether you are in default or not you also put your blood, sweat, tears, earnings, labor, and love into improvements for your “home” at whose expense? Yours, your savings, investments, your retirement, so the lender can come take your property whenever they want to.

    You might as well have rented the home in the first place, you would have more money saved for retirement instead of constantly sending that $2500 a month to your interest only “house payment”. And if you rented, your landlord would have to make the improvements, not you. So what we became was “glorified renters” because of a deed of trust with a power of sale clause in it. The sad part is nobody understood this until the mortgage meltdown. Now we know, possibly too late for many of us, but we have a bad taste in our mouths now about buying another home. I talk to people in my store, clients every week, everyone I talk to is in some kind of trouble either with job loss, foreclosure, the IRS, and the major consensus is homeownership? Never again, car loans? no more of those either. People have been stung, and they are getting smart, no more of this paying out of hard earned money for something you can’t ever own. I hope we stay smart for our kids sake and the next generation.

  2. that shoulda been “squid pro quo”

  3. @ Marie
    Look what turned up Monday

    Tim Geithner’s next employer of choice, per bnet’s Constantine von Hoffman, is none other than the universal viceroy-cum-vampire squid presiding at 200 West according to a just “leaked” letter.

    And while we all know the key resume highlights (issuing $1.5 trillion in debt a year for the duration of his tenure, mopped up on both sides by Quantitative Easing, bringing America to the verge of insolvency and living on an “auction to auction” basis), here is the summary of Geithner’s key qualifications that make him a shoo in for the job.

    Timothy F. GeithnerDepartment of The Treasury1500 Pennsylvania Avenue, NWWashington DC 20220(202) 622-2000Moneyguy01@treas.govHR DepartmentGoldman Sachs & Co.200 West StreetNew York, NY 10282

    Dear Mr./Ms. Last Name:

    I am writing to apply for the position of Master Of The Universe at Goldman Sachs as advertised in The Bilderberg Group Daily News. I believe my experience in experimenting on the economy playing with other people’s money makes me an excellent candidate for this position. As requested, I am enclosing a completed job application, my certification, my resume and three references. (Please call Dr. Kissinger first. He’s not getting any younger.)

    I have extensive experience working for with the rich and powerful. My most recent job was as secretary of the U.S. Treasury (a situation which put a premium on diversity awareness). Even before I took the job I was the center of attention in Washington. And despite not paying any income taxes for four years, my nomination was opposed by only a third of the Senate. As Treasury Secretary, I ended all those fluctuations in the unemployment rate and kept it at a nice steady level. Despite the job’s title, I did NOT answer phones or any filing. Although I can do both while typing 120 wpm. With one hand.

    Among my many other accomplishments: Helping a large number of financial institutions avoid the consequences of their actions. As many of the very large number of our mutual friends(hint, hint) will tell you, the quid pro quo on this — cutting executive salaries and perks while limiting dividends and corporate acquisitions — was strictly window dressing. Remember the bonuses AIG paid to executives in its Financial Services division after receiving $170 billion in bailout?

    Prior to my current position I served as president of the Federal Reserve Bank of New York. It was in that job, when I got Bear Stearns a $30 billion bailout, that I discovered my true vocation: Giving large amounts of other people’s money to down-on-their-luck wealthy institutions. This was very important to help the economy, no matter what Paul Krugman says. I mean really, what’s he ever done?

    In closing I would just like to say how much I respect and admire your CEO, Lloyd Blankfein, whom everyone agrees is very spry for a man of his age.

    Very Sincerely Yours,

    Tim

    P.S.: Don’t believe what you read in the press about me: I still want the job. Actually, just don’t believe anything about me you read in the press. Call me!

  4. @ usjustice4all

    Well—-hmmm, lets just look at the PUBLISHED FACTS

    Annual: USD 191,300.00 http://www.paywizard.org/main/VIPPaycheck/salaries-president-obamas-administration/president-obamas-administration-salaries/vip_details?id=timothy-geithner

    In October 2003, at age 42,[17] he was named president of the Federal Reserve Bank of New York.[18] His salary in 2007 was $398,200.[
    http://en.wikipedia.org/wiki/Timothy_Geithner

    Now certainly as a federal employee he gets health care and a 401K contribution and pension payable even if your social security gets cut—and of course he gets perks like a driver and security —which of course he needs pretty badly. Goldman or Bank of New York will have to pick those up and gross up the income taxes—or maybe at those outfits its considered a deductible “ordinary and necessary business expense to have constant protection” as other business people would deduct the cost of electricity.

    The job at the Fed was a lot better pay.

    What we all need to do is really drill down on how much the houses cost—how much the kids’ schools cost—etc -when he was on the public payroll. Did he have student loans.

    Its called income reconstruction–they dont like it-if they spend more than they receive in salary——-and it is published——–where does the extra money come from?

    You make assertions implying that he gets outside monies-but frankly until I saw the social security tax evasion–I thought he’d be more careful. Now I have to say-it looks like he is so arrogant that he thought nobody would look. AND he did not need to consult an expert—as if it was mere ignorance of the law. Well that seems to cover a lot with these guys—virtually any oversight –any screw up -even if it costs a $trillion is excused as ignorance…..The one I really liked was old Greenspan claiming after 50 years on Wall Street that he just never thought anybody up there would do all those bad things. Really–he forgot about Milken? Worked for the boss -why not Geithner?

    Point here is that about the only way to alter the corruption is to uncover it. However, my guess is that the payments went to secret Swiss bank accounts -err excuse me —-Caymani bank accounts–or both and a few more——-couldnt really rely on GS to give him the job promised in case Blankfein got nailed and couldnt follow through.

    If all damaged citizens pooled their knowledge on a “watch Geithner finances site” then they would have to be more leery-right now its easy. Nobody is paid to supposedly watch for illegal activities by these guys—- but their cronies, and thats why they perform this blatant abuse without hestitation..

    All I can add is please stop the lazy intellectual shortcut of simply bitching –and use the computer age to ferret out the fraud—thats basically the underlying moral of this website.

  5. NY Attoerney General Eric Schneiderman for President!

    http://www.thenation.com/article/161737/new-yorks-ag-takes-banks#comment-880913

  6. You have got to be kidding, Geithner has more compensation than you can even imagine. You had good points but when it comes to a personal interpretations of what our politicians receive for compensation. America is severely misled.

  7. Breidenbach

    Wow what a telling point. Can you imagine all the unemployed ex service people wandering around. You’re right. What we need is another good 10 year “conflict.”

    And your interesting, respectful analysis of Geithner shames me. Henceforth I will refrain from curling my lip and snarling when his name and photo roll across my tv/computer screens

  8. @ Marie

    What else could you call the man that is so desperate to get the debt ceiling raised so the govt can issue more bonds ?

    are you implying that this selfless act is somehow not in the best interests of the people? They might shut the parks. That would be a good prelude to selling them.

    Frankly, I do not have the health or money to go camping. It seems like Yosemite and Yellowstone should go on the block first. Why are they any different than Disneyworld? Let those who have the money and leisure-time to use all these expensive parks pay Disney like they do in Fla. let the foreignors that make up a large percentage of the “guests” pay the tab. Why should I –Iv not been there and cant afford to go. Before the interstates that we all must use to move food and support jobs. Biu I digress, its all about issuing bonds that generate fees and go to pay for weapons to blow up tufts of grass in deserts–definitely a high priority for me to be sure.

    And why might Secretary geithner care about issuinf debt—–to keep the social security checks rolling?

    I looked back a year or so and noted the following.
    “Last week, the firm [GS] predicted that President Barack Obama’s government could issue $3.25tn of debt before September [2009], almost four times last year’s sum. Goldman, a prime broker of US government bonds, is expected to make hundreds of millions of dollars in profits from selling and dealing in the bonds.”

    Sec. Geitner is truly a poor man–living in NYC and DC simultaneously on a $250k salary. It would make me lay awake sleepless every night.

    —–he has some real opportunity costs to make up for in order to fairly compensate him for a lifetime of service to the American people.

    Well now with the socially and fiscally responsible combo of Ds and Rs –once the floodgates open again –we can look for another record breaker —bank fees, debt issued and military contractor revenues. The rub is to find another place to send the troops-certainly don’t want them wandering around back here looking for jobs..

    The Ds and Rs spend as much lobbing rockets at mounds of dirt in Libya monthly as the entire 120 mile rail corridor would cost in Fla–$1.2 BILLION—which will get the folks to Disney World in record time. Obviously another top priority spending need. Tough decision to make–which is the more critical, blast holes in Libya or toursists in DisneyWorld an extra 3 hours? Thats why they need to pay these guys the big bucks.

    We desperately need Sec Geithner up there in NYC issuing govt debt ASAP. And telling the Fed Reserve to get back to buying it-cause who else will? Hes the MAN.

  9. Mr Breidenbach

    Not sure I’d characterize Geithner as a public servant.

  10. On 6/17 I was informed all of our hamp documents were finally in and our point of contact said she gave them to her supervisor. On 6/24 I recieved mail from Wells Fargo, dated 6/22, that our hamp loan would be disqualified if they didn’t get the documents that were missing. ( there was no list, of course, of the documents that they needed). I immeditely called my single point of contact at W.F. and informed her of the letter. She immediately appologized for the letter saying she knew nothing of this document. (I have all this recorded btw). I was told to await the hamp decision on 6/25 by my single point of contact(S.P.O.C.). On 6/30 I was contacte by my S.P.O.C. and informed we qualified for the unemployement mortgage program becuase my wife is on unemployment and there is no W-2. (remeber I have this recorded). I explained to her that this was possibly fraud becuase my wife had filed a 1099 stateing that she worked for an employer part time while she collected the rest in unemployment. She was basically telling us to Lie to wells fargo and all other involved parties. If they had all the hamp documents, including 2010 tax returns and 1099 from my unemployed wife for the this year, shouldn’t they have know we did not qualify for this NEW loan my S.P.O.C. was trying to sell us? If what she said is true, and they have all of our documents, she said we still haven’t been turned down by hamp….isn’t this some kind of fraud. I’ve certainly caught them in a lie and I have it documented. What is my recourse if any? spankieblue@live.com

  11. @ marie
    Let’s talk more about predictions. By now I’m sure everyone has read in the national papers NYT, Washington Post, WSJ that Treasury Secretary Tim Geithner’s family is moving back to NYC, and he is expected to commute for awhile before leaving his key post.

    What he will do is important—it bears upon the integrity that he did or did not bring to his high Office while he occupied it. A bit of history is needed to put things in perspective.

    He has long been a public servant. He was a low level administrator at Treasury beginning in 1988. Then in 1994, he was attached to the US embassy in Tokyo. Presumably, while there he had opportunity to observe the Japanese bank meltdown–also a real estate bubble burst. Then back to Treasury. He was then director of the Policy Development and Review Department (2001–2003) at the International Monetary Fund. He was figuring ot how to give money to foreign banks there.

    In October 2003, at age 42,he was named president of the Federal Reserve Bank of New York, presumably by the apparently senile Alan Greenspan who later admitted being unable to comprehend what the banks under his charge [and Geithner’s] were doing in creating “designed to fail” home-loans, mortgage-backed securities, illusionary securitized trusts, Madoff etc. Gheitner stayed at the Fed of NY until he was formally appointed as Treasury Secretary in early 2009.

    For the benefit of readers, the New York Fed is the largest and most influential of regional federal reserve banks. The NY Fed is supposedly controlled by a Board of Governors that are appointed by member banks such as Chase etc, along with a few non-bank people thrown in to create the illusion that the reserve is not just run by the banks that it is supposed to regulate.

    Geithner was busy at the New York Fed. In May 2007, he worked to reduce the capital required to run a bank. In March 2008, he arranged the rescue and sale of Bear Stearns. In the same year, he played a supporting role to Henry Paulson, President Bush’s Treasury Secretary and former CEO of Goldman Sachs, in the decision to bail out AIG just two days after deciding not to rescue Lehman Brothers from bankruptcy. Some Wall Street CEOs subsequently expressed the opinion that decisions in which Geithner participated, especially the failure to rescue Lehman, contributed to worsening the global financial crisis. Paulson was grateful: he has described Geithner as a “very unusually talented young man…[who] understands government and understands markets” Geithner was so popular with bankers, that during the 2008 Presidential election, Geithner was one of three people tipped to be nominated for Treasury Secretary regardless of whether John McCain or Barack Obama won.

    He started as Treasury Secretary which is the IRS boss also with a mild problem that has sunk most other less deserving individuals. At the Senate confirmation hearings, it was revealed that Geithner had not paid $35,000 in self-employment taxes for the years 2001–2004.
    IRS waived penalty. On January 26, 2009, the U.S. Senate confirmed Geithner’s appointment by a vote of 60–34.

    Geithner had substantial power to help homeowners–largely unexercised, Geithner had the authority to decide what to do with the second tranche of $350 billion from the $700 billion banking bailout bill passed by Congress in October 2008. He is not mandated to seek Congressional approval. He is largely responsible for the HAMP terms and successes–or lack thereof.

    He had plenty of interraction with home-owner hepers like Wilbur L. Ross, a member of the Treasury-supported Public-Private Partnership. That operation is being suggested as a mechanism for buying interstate highways using securitized loans. Goldman Sachs has been suggested as the operator of that program which would raise a lot of money and generate huge fees for the investment banks that act as trustees.

    Basically Goldman, in concert with municpal bond issuers/trustees such as Bank of New York, the private one that is, etc. would issue bonds payable by a trust that represents the public private partnership. BONY is a likely player here because it is 1st in managing the mini bond issuance historically. Recent problems in that sector have resulted in diminished profits and a new business line would help to insure future bonuses.

    The bonds would be paid off out of proceeds received from tolls and EZ Passes. This would avoid raising fuel taxes and coincidentally create a new revenue stream for the investment bankers-including those that operate the toll booths–and control highway maintenance expenditures. For example, if there is a pothole on the highway, GS or an equally qualified bank would determine if, when, how and WHO would fix the hole. We can expect the same level of diligence in these maintenance operations as we have come to appreciate in bank supervision over foreclosed homes held in bank inventories. Goldman Sachs is also spoken of as a likely manager of the roads once privatized. This will be a key source of jobs once the construction workers’ pay is sufficiently reduced to sustainable levels—along the lines of Goldman’s strategy for saving the people of Greece.

    Today, insiders are betting that Geithner will be again at the helm of the borrowing and job creation in this newest injection of borrowed funds–aimed at helping the people of America–following HAMP successes. Whether at GS or BONY, Geithner will continue to display the tallents and iattention to the public interest that he has so well demonstrated in the past. We can all thank our lucky stars.

    Thus,

    On November 24, 2008, then-President-elect Barack Obama announced his intention to nominate Geithner to be Treasury Secretary.

  12. DEBT CEILING ANALYSIS -CHECK OUT THE CASH FLOW PAGES- IN PARTICULAR PROJECTION FOR AUGUST 15TH – 52 BILLION DEFICIT FOR THAT ONE SINGLE DAY!! OMG – HOW LONG CAN THIS GO ON FOR?

    http://www.scribd.com/doc/59150080/Debt-Ceiling-Analysis-June-2011-August-2011

  13. That Jefferson quote gives me goose bumps. Literally. How prescient. He must have beern a visitor from another dimension to have known how banks (w)could eventually terrorize the citizenry.

    Likely it will only get worse as we, the people, no longer have an independently functioning government: where corporatists go back and forth between the financial “sector” and the cabinet, or perhaps play “czar” of some made up federal fiefdom.

    Best to accept that the republic is finished. Nothing can bring it back at this point. Didn’t it sneak up on us though!

  14. “The court’s ruling—that MERS did not have the authority to initiate a nonjudicial foreclosure because it is not the owner nor has an interest in the promissory note—could also impact the approximately 12,000 pending MERS-related foreclosures in the state and cause servicers to start the process over by assigning the mortgage out of MERS’ name and into the name of the servicer or investor. The actual number is likely less though, as many servicers are already filing new assignments prior to initiating the foreclosure.”

    “HUD barred the media from listening to a mortgagee conference call, originally scheduled for June 1 and later postponed to June 7. The HUD spokesperson would not provide any details about what mortgagees were told during the call, other than saying it “was routine and nothing new came out of it.”

    http://www.nationalmortgagenews.com/dailybriefing/2010_378/gses-redoing-1250-mers-foreclosures-1025481-1.html

    Here’s my question on all of this. If MERS never had the authority to assign anything and it clouded title with possible further assignments and most of the originators are DEFUNCT now here in 2011, how are the servicers now “filing new assignments”? I won’t even bother to ask about how, if the loans did not make it into the trusts within the appropriate timeframe, ANYTHING now can even be “assigned” or “transferred”. Makes no sense and the reek of FRAUD is permeating the air here. I would hope the judges in Michigan are ready and waiting (with knives out) for the new fraudulant assignments to be coming through.

  15. seniorauthor: yes it does seem to fit nicely. And I too like that Davic C quote. Here’s another, more recent quote, from Notre Dame professor G.Robert Blakely who is one of the principal architects of the RICO statute 40 years ago (the Mob was the primary, but not the only target at the time):

    “‘We don’t want one set of rules for people whose collars are blue or whose names end in vowels, and another set for those whose collars are white and have Ivy League diplomas.”

  16. Thanks Jim – from that perspective it really does

    appreciate it.

  17. seniorauthor: 18 U.S.C. §§ 1961–1968. These foreclosure activities are prohibited under the civil provisions of this statute: the interstate collusion among the loan servicers, the original and successor trustees, the securitized trust trustees and the everyone assiciated with them for the purpose of collecting an unlawful debt. The shoe fits.

  18. Jim:

    Could you tell me which rico statute you are talking about – Thanks.

    As you know several people on this site tried to get something done whereby the people could step us – it never happened – I just don’t get it. We still need that one Contract put on the table, along side the AG’s and the SEC’s and others – but no go so far.

    David C. – I love that quote – used it many a time myself and tried desperately to get others to pay attention.

  19. IRS is collecting more tax with less deductions. They have no motive to make a change!!!

  20. Usedkarguy: Without a doubt “BLAMMO” is the probable outcome for anyone who chooses to fight these guys in federal court pro se. But we’re at war here, it’s necessary to fight and to hell with the risk. That needs to be the collective attitude and folks just need advice on legal procedure and protocol to help themselves. Federal court is the better venue because it’s more uniform and everybody with a post- 2006 securitized loan probably has a legitimate RICO case in one form or another. I doubt that anyone here who has read the statute would disagree.

  21. When it came to setting up our government, Thomas Jefferson had three concerns: tyranny of kings, tyranny of theocrats, and tyranny of the wealthy. For the time being we seem to be safe from kings and theocrats. We are not, however, safe from the super-rich.

    Here’s what Jefferson said: “I believe the banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”

  22. one of the problems creating a dispensary of legal advice is that laws vary greatly from state to state. discussions overlap where someone get confused thinking rescission can apply to a purchase money loan. The attorney risks malpractice where the attorney/client share a jurisdictional relationship. I;ve also had most attorneys tell me “I don’t know about that stuff, bub. I’m a bankruptcy attorney.” There is no substitute for competent, local legal advice, but certain attorneys (like Jeff Barnes) have created solid network of attorneys in many states. When you dance in the federal ballroom, I understand things change dramatically. A pro-se in Federal Court gets beat quickly.
    The pro-se falls victim to the procedural trap of practicing motion law with national defense-firms. You can’t win that one. Bank attorney calls asking for a settlement number, you give him one (now you think you won) and they file an MSJ. BLAMMO!
    But the need exists. Indubitably.

  23. I’m game Jim. But every few days the site gets highjacked by the fringe. How do we get Neil to assist? Or do we need to go elsewhere?

  24. You, the lowly broke homeowner, can’t even afford a lawyer even though you know that your house is being stolen from you. Maybe
    the discussion in this forum should shift for a while from complaining about the common enemy, and focus on the practical logistics of filing a pro se complaint in a court. That seems to be what folks really need more than anything right now. It’s fight or flight. What’s it gonna be?

  25. Tn –

    All of my cases are pro se –

    Tn and Jim are correct in their posts.

    I have been in the business for 40 years Tn and others and believe me, I understand perfectly why some people simply cannot defend themselves as pro se – It would be great if they would set up a site as you described to help these people – but it won’t happen. We suggested it over a year ago when the first flood of cases began – this is the second or third tier. I like your suggestions by the way.

    To all: I do not believe that Fannie and Freddie are doing the dirty work for banks. Fannie and Freddie purchased the loans in the secondary and then securitized the loans; however, they have specific conditions which must be followed and to date, I have not dealt with Fannie and Freddie regarding the servicing of a loan, other than to write them up for not forcing the bank to to their job.

    Perhaps others are calling the banks and referring the people to F & F. I do not know because all of my clients , I have had to deal directly with the servicer and F & F was the benefactor of the ill begotten treatment by the SErvicer.

    I guess maybe it could work both ways – but F & F are not doing the dirty work of the banks – that is just my opinion for the majority of F & F loan.

    Thank you

  26. thx

  27. @carie – there is a lot of good stuff there to build on, but an appeal by necessity is very case and fact specific

  28. @tn—Have you read Brian Davies docs:

    http://www.scribd.com/doc/58702207/Davies-v-Deutsche-Bank-Opening-Brief-9th-Circuit-Bap-Opening-Brief-Davies-06242011-File-Copy

    His chap 7 situation and IndyMac/Deutsche situation is almost exactly the same as mine…only he has money to pay his lawyer…if I have to go to court pro se, can I just basically copy what this guy is doing?

    I know, I know, silly layperson question…

  29. Bravo Donna Fasi, count me on. Finally someone had the “Cojones” to call it the way it is.

    I’m behind you 100%.

    Shame on the U.S. Government, Florida Governor RIck Scott, The FBI and other government agencies for allowing these immoral and illegal activities to continue.

  30. Here’s my two cents – Neil or someone else needs to create a site, maybe behind a username and password or maybe not, that allows a more free exchange of advice and theories. I’m thinking a real time, online legal aid type of atmosphere where the attorneys that hang around the site could review, critique, and otherwise coach the users in their pleadings. If I was more technologically inclined i would be happy to assist. How could we make this happen? I know Neil’s trying to make a living here via the luminarq stuff, so it may need to happen somewhere else. Anyone have any ideas how this could work?

  31. thank you, tn.

  32. @usedkar – Although it varies from jurisdiction to jurisdiction, generally the full name of an “order to show cause” is actually “order to show cause why XXX should not be held in contempt” and follows from a party’s failure to abide by a court order. it works as follows : you request document A during discovery, other side doesn’t produce, you file a motion to compel, order goes down requiring them to produce document A, they fail to do so, you file a motion to show cause and the order is issued. Does that help? You can’t skip steps, because they have to be afoul of a court order in order to show cause why they shouldn’t be held in contempt. and even if they purport to comply with your discovery, omission of documents is grounds for a motion to compel.

  33. Joanne: Do you really believe that TARP was supposed to help homeowners? TARP was for saving the financial system pure and simple. And it saved the financial system status quo in the process. Your government did that, lobbied by those same institutions, not homeowners. So don’t expect or wait for the the government to charge in and help you, the homeowner. Won’t happen.

  34. “Worst deal they ever made”…and it’s going to get even worse…

    http://www.huffingtonpost.com/2011/06/30/bofa-countrywide-worst-deal_n_887865.html

  35. harry, could you explain the “order to show cause” as used in motion practice, say, to produce a driver’s license of an out-of-state affiant to botain an original signature, or to explain why assignments are made out to a dead registrant? or possible other uses to produce, say, a signature page from an application (loan level file)? thanks

    and I came in with 165 pages including affidavits, requests for admissions, the affidavits, exhibits (40), P and A’s., service list. WHEW!
    I heard that this judge IS a reader, methodical, takes the time. We’ll see.

  36. @Joanne – i couldn’t disagree more. The American public needs to help the American public. Too many have waited to be helped and are now homeless, penniless, or both. Take matters into your own hands and take action!!! I’ve been on a soapbox today but I honestly think it needs to be said. Too many “woe is me, who will help us” posts have come across my screen.

  37. The author is right on the money. Fannie and the other agencies need to help the American public; and, the federal government needs to step in. The lenders took TARP funds, and were directed to look at a borrower and help them save their home. Instead, they should have been compelled to keep them in their homes. The practices which have prevailed over the past few years are criminal and these lending institutions need to be looked at, fined, and made accountable.

  38. tn is correct on that. Keep it brief. Stay to the point. No whining. Cite case law. Include that bogus robo-signed assignment recorded against your property as an exhibit. Send your “lender” a summons and put them on de-fense.

  39. Way to go Jim. My best advice to everyone going it pro se – keep it simple. Less is more. There’s no need for a 250 paragraph, 65 page complaint if you can say it in 4 pages.

  40. I filed a RICO Complaint against the bastards in federal court pro se. Can’t afford a lawyer. Couldn’t even afford the filing fee so I got that waived by submitting a in forma paupreis request. Yeah, maybe I’ll get shot down eventually by the legal firepower on the other side. But maybe not. So what’s the alternative? Lay down? Complain in Neil’s forum on a regular basis? No. Just take what you learn here,
    fight back and don’t back down.

  41. here in Wisconsin we have two recent appellate court cases (Carlsen and Kolodziej) that hinge on unsubstantiated documents used to obtain foreclosure. These bogus assignments are created by f/c mill attorneys at the request of the servicer/custodian/sponsor regardless of the current status of the (assigned to) trust. No EX-99’s, no loans. No loans, no assets. No assets, no consideraton. No consideration, no contract. NO contract, no standing. As stated, the default is the condition precedent required to get the money machine turning. If there isn’t one, they will make one occur. ‘Nuff said.

  42. Good luck in the appeals court. I still say that passion (within reason) and facts can beat law school degrees any given day.

  43. Tn

    Oh yes, the judge listens and then shuts down. There have been some winners, but not many. As an advocate, unfortunately, most pro se cannot do what you say. I do have an example however, whereby the pro se was a highly knowledgable person regarding PSA’s, MLPA, documentation, etc., and even though there was substantial fraud presented and the lender did not have standing (arguments which I fought with the proper knowledge and strategy) unfortunately the Judge was not going to accept it. In fact we started in 2007 early on with what appears to be coming to light now in 2009-10-11.

    If they can get representation – they must. If they cannot, there are people like us (that do not charge them) to audit their loans which helps them a great deal. We do what we can for the pro se and even offered to help the legal aid groups, at no charge on behalf of homeowners, and that did not work out either.

    So try it as a pro se – not saying not to do it – but most people simply will not .

    Judges in the last l0 months are far much more knowledgeamount what is going on than those in the past 5 years and it is only because they are now facing up to the fact that just perhaps the banks did commit the fraud – Right.

    We are waiting on the appeals court as we speak.

    Thank you

  44. WATCH THIS EVERYBODY: (it’s an hour lecture, but amazing…and it’s a year and a half old…)

    https://webdisk.lclark.edu/econ/steinhardt2010/steinhardt2010.html:

    Bill Black for president!

  45. Finally someone understands the entire issue.
    “A nation of sheep begets and goververnment of wolves”, Edward R. Murrow.

    You go Donna.

  46. @tnharry:

    Discovery is over. They moved for summary judgment. We are awaiting the ruling on the summary judgment.

  47. @zur – are you in the discovery phase? have they answered?

  48. Let’s face it–the ongoing government conservatorship of Fannie Mae and Freddie Mac is fascism, i.e., “the merger of state and corporate power.” Fannie Mae is now a government agency but is allowed to present itself and behave as if it is still a private company. Oh sure, Fannie Mae has not been officially declared a government agency, but it IS in all but name.

    This is the outrage of the “soft” fascism we are now living under–Fannie Mae’s losses are now covered by we the taxpayers. And there is no limit to this loss prevention. So whatever Fannie Mae does, i.e., try to make rules governing who can buy a house, try to take houses it doesn’t own, etc.–WE are supporting that. WE are running Fannie Mae (via the conservatorship) and it is that same WE who are being screwed by Fannie Mae. We are financing our own demise, our own ruin, our own nightmare.

    Since I am in a lawsuit with Fannie Mae, all of the above means that they are using MY (and YOUR) money and resources to try to defeat me. And when I beat them, any “losses” they incur will also be paid with MY and YOUR money and resources. There’s no risk for them! No wonder they won’t settle–what do they care? THEY CAN’T LOSE!

    Not only that, but they DO hide behind the servicers. Fannie Mae wasn’t mentioned anywhere in my foreclosure documents, but now they claim I owe them money because I refinanced with Countrywide. Well, we now know–thanks to LInda DeMartini–that Countrywide never transferred the promissory notes to ANYONE, including Fannie Mae. So how in hell’s bells does any “borrower” owe Fannie Mae anything?

  49. They will listen to pro se people. In fact, many of them will bend over backwards to make sure they get their chance. I’ve seen it many times myself. What they won’t do is tolerate grandstanding, off-topic diatribes, and the like. I’ve also seen pro se people launch into their manifestos about fraud, forgery, and freemen principles with no ability or effort to prove any of it. Those people do themselves more harm then good. The judge just shuts down and stops listening, even if they get around to saying something relevant.

    Go in there with a well-pled complaint with some knowledge of the rules and procedures. Sit in the gallery and watch attorneys conduct trials and advance arguments prior to your court date. Try to mimic them as much as possible. Going pro se isn’t a bad thing. As I’ve said before, no attorney will ever know the intricacies of your case the way that you do.

  50. Tn –

    I agree to an extent – either do something or stop talking about it. But the truth of the matter is that 80% of those harmed cannot get representation to prove their case and the judges are just not going to pay attention to a pro se litigant except in rare occasions.

    But by continuing to press on with this information, it does so help those that have not been able to keep up with what is going on. So many now lsing their jobs, that the repeated addressing of the info is critical to their needs. As an advocate it happens continuously that they have read this site but are distressed about what to do. So many attorneys are not on the homeownrs side and it generally does not end well for the homeowner.

    In my prior post about the Commander In Chief, rest assured I realize that to make such a statement or even give the impression that this Country would limit their contributions, is a very delicate and sensitive situation and there of course would be circumstances whereby we would elect not to. But the spending goes on and we simply cannot give away money that we don’t have or won’t have and that being the case, a lot of thought needs to be given.

    I can see today however that most of the posts today are right on track. Thank goodness.

    Thank you

  51. Thank you, DNY. I read that article too and my blood was boiling. Its posted over on 4closurefraud too and one of the quotes there was:

    “In case of bankruptcy, allow the entity in possession of the notes to simply transfer to another entity to be decided or themselves the notes etc… so as to keep out of the bankruptcy estate of the bankrupt creditor.”

    Like American Broker’s Conduit who filed BK in 08/2007?

    Were I to transfer property during a bankruptcy proceeding while under purview of the trustee, I would be thrown in jail and fined heavily. I’m sick and tired of separate rules for the bankster scum.

  52. Dear Louise,

    OMG Sadly your faith misplaced in O’bama!

    I’m praying that GOD WILL SPEAK LOUDER TOO …

    Dear God: I pray O’bama hears that we the people now know the truth and those who did not hear the words out of O’bamas’ lips -from his mouth to your ears was …O’bama clearly stated that he would only look forward!

    What he needs to do is tell the truth! O’bama knows the US Treasury is the Gatekeep of ‘real estate of the USA. Congress allowed all of the charters issued by FRB c/o US Treasury.

    The ‘national associations’ and ‘federal savings auditors of US governemnt include OCC & OTS & FTC & FRB & FCC govern ‘mortgage note owners’, processes and proceudres in the handling of the assets of US Treasury.

    Institutions were allowed to convert residential mortgage notes back in 1996/1997into securities period. The ‘mortgage note assets’ have been sliced and diced.

    LENDERS have been allowed to slice and dice ‘mortgage note loan IOU’s’ ….
    and your point of his new term would be ….

  53. Check out this article in today’s Bloomberg News at http://www.bloomberg.com/news/2011-06-30/fannie-mae-silence-on-taylor-bean-mortgages-opened-way-to-3-billion-fraud.html

    ““We hold people accountable in the judicial system when they don’t report a crime,” said Ken Donohue, former inspector general of the U.S. Department of Housing and Urban Development, who investigated another mortgage fraud matter involving First Beneficial Co. In that case, he said, Fannie Mae “literally knew about a crime” and didn’t report it.”

    For all those claiming that there is no evidence of double- or triple-selling mortgages, the TBW case should should put those denials to rest.

  54. But BSE it’s so easy and convenient to throw around words like fraud and forgery when one gets behind and so much harder to actually prove them. I’ve been following this board for a while and am amazed at how many of the same people post every day about how badly their mortgage company has defrauded them and how they’ve been screwed by the system. My advice to them – poop or get off the pot!! Get out there and sue the bastards and make something happen. These guys expect to be sued and set aside budget funds for exactly that. Coming here each day reciting the same sad story may be therapeutic, but it won’t save your house in the long run.

    Let’s get this back to the legal resource for people seeking self-help that it once was and get away from the fluff pieces.

  55. Since Fannie packaged everything and sold them in to Fannies “Strippped Mortgage-Back Securities” THEY OWN NOTHING.

    I have yet to see any Foreclosures brought in the name of Fannie Mae or its SMBS trusts they peddled as better than sliced bread. FANNIE HIDES BEHIND LOAN SERVICERS.

    When you are sued for foreclosure for a Fannie Mae loan we should all sue Fannie Mae back and get discovery.

  56. seniorauthor

    Good post ! Thank you !

  57. Mickey

    Homeowners want to pay the mortgage. But not if fraud induced signatures to execute the note and so the banksters could steal from the investors and the home owner. Nothing was real so why pay for fraud? The innocent continue to be punished.

  58. I wouldn’t take a house from these bastards if it WAS given to me!

  59. lOUISE:

    By accepting the position as Commander in Chief, I would hope that he would not again, tell one story before he is elected and then change his position and stance for carrying it out. That is exactly what is wrong with the country as we speak as our Congress has so let us down in this regard as well.

    I am truly against playing games with the people as they have been harmed enough by the deception that has taken this country to its current depths. No where to turn.

    I do not wish to be political either, but there is clearly something wrong with politician after politician pulls this caper on the American people who live off of faith and hope – Now they need to get Real. Will it happen? I cannot say.

    And I am not just speaking of Obama and his administration –

    Thank you

  60. Mark: You are probably right – we cannot know so that is a real tragedy in itself.

    It is my belief although I know it will not come to pass – that any President, as our Commander In Chief, should stand up and say to the rest of the world the following .

    America has given so much to so many countries as I am sure other countries have done, but the time has come now, that in order for us to continue to contribute and support those in need in our own country, America will have to do that which is necessary and vital to our country, that of meeting the needs of its own people, who have in turn made contributions to other countries possible. That means we will no longer be able to fund that which we have in the past, but will of course do what it can to maintain prior committments to the extent possible. America must take those steps that assure it remains strong during such times as the world is experiencing so much.

    This is not something that we want to do, but something that as America’s commander in Chief, this country must do and then, as America regains its financial strenth and has been able to support fully the needs of those in our Country, we can begin once again to reach out. We are not deserting those countries we have always reached out to, but we will, again, take a forward approach to protecting America, its people and the laws of the land.

    Countries to which we have contributed so much, must understand that this is a very important and critical need for America at this time, and when certain conditions have been met, then America can return once again to a large degree to assist other countries as they make their way. This is not an isolationist approach, but goes to the heart of preserving this country as well as others with the intent that all people will be able to live in a peace and prosperity.

    Thank you.

  61. I’ve seen several articles along these lines and still don’t understand the outrage that the mortgage companies refuse to modify the loan terms or reduce the principal or otherwise alter the terms of the loan. Why should they? There’s an agreement outlining the terms of the deal. Now that it’s no longer convenient for the homeowner, many of them are raising a stink that they can’t be modified. At no other time in history has this concept that a contract may be renegotiated been as vehemently proposed by the masses.

    Try calling your electricity provider or your cell phone provider and offering to pay them 70% of your outstanding bill because you think they’re too high. Stop paying your car loan because it has a flat tire. Those aren’t assumed to work and the mortgage modifications shouldn’t be assumed either. Honor the contract or don’t, but stop expecting there to be no consequences.

    There’s a place for discussion of mortgage fraud, unlawful foreclosure and so on. But the failure of the modification system is such a given now that the continued reference to it just reeks of sour grapes.

  62. @Louise – so he’s just been biding his time, waiting for his second term. I’m sorry to take this to a political place, but what flavor is your kool aid today?

  63. Obama has to be elected first, then he can do something. Once in a second term, he do all kinds of unpopular things to big banking, big pharma, big agriculture, big munitions manufacturing. We shall see.

  64. So much for the moronic idiot faith and “hope” that was given by myself and millions of others to the current resident of 1600 Pennsylvania Ave. whose solution was to give handouts to greedy corporations and greedy individuals (bailouts, cash for clunkers, rebates on purchases. etc.). The problem is that whoever would be next will be worse. What a country.

  65. Paula Rush introduced a ‘real label’ used by ‘FDIC’ and ‘Fannie’ and ‘Freddie’ and FRB – syndicate –

    Investorpedia

    A Syndicated Loan group of lenders (called a syndicate) who work together to provide funds for a single borrower. The borrower could be a corporation, a large project, or a sovereignty (such as a government). The loan may involve fixed amounts, a credit line, or a combination of the two. Interest rates can be fixed for the term of the loan or floating based on a benchmark rate such as the London Interbank Offered Rate (LIBOR).

    Typically there is a lead bank or underwriter of the loan, known as the “arranger”, “agent”, or “lead lender”. This lender may be putting up a proportionally bigger share of the loan, or perform duties like dispersing cash flows amongst the other syndicate members and administrative tasks.

    Also known as a “syndicated bank facility”.
    Investopedia explains Syndicated Loan
    The main goal of syndicated lending is to spread the risk of a borrower default across multiple lenders (such as banks) or institutional investors like pensions funds and hedge funds. Because syndicated loans tend to be much larger than standard bank loans, the risk of even one borrower defaulting could cripple a single lender. Syndicated loans are also used in the leveraged buyout community to fund large corporate takeovers with primarily debt funding.

    Syndicated loans can be made on a “best efforts” basis, which means that if enough investors can’t be found, the amount the borrower receives will be lower than originally anticipated. These loans can also be split into dual tranches for banks (who fund standard revolvers or lines of credit) and institutional investors (who fund fixed-rate term loans).

  66. Right on Right on!

  67. “We’re taking these steps to highlight the importance of working with your servicer,” said Terence Edwards, executive vice president for credit portfolio management of Fannie Mae. WHAT? Most of us have TRIED to work with our “servicer” and found it impossible. With the amazing amount of paperwork that gets lost continuously nationwide, lack of training for servicer employees, particularly regarding hamp mods. Just how are we supposed to deal with the servicer Terence Edwards? At gunpoint? It’s no wonder people walk away in disgust or dispair. It’s people like you Terence Edwards that CAUSE the problem. And now you want to punish us. I for one will NEVER look to Fannie Mae for a loan

  68. Its time to go after the “execs” for fannie and freddie now. I am sure there is so much fraud WITHIN the agency itself it should be our primary goal to open up their books, their correspondences, their pay they received and all the pools they are associated with. Until they (freddie and fannie) are truly investigated this cover up policy will continue to undermine and bring a complete demise to the american people. I’m with u neil if u need help I am prime for the fight. Let me know– I want them brought to their knees. Thank u for being u and all u know and do. What in the world would we ever do without u?! Debra. 5613899339

  69. Donna:

    Back in early 2009, a Fannie representative told a news reporter “they will feel the pain” for walking away from their homes without contacting the servicer – It appears that when I reported a few of the findings that none of the people seemed upset then. Your article might make a difference:

    Comments from the 2008 and 2009:

    Greenspan said when told of the dangerous loan programs “that he did not think it was significant”

    Citi Residential – to a homeowner’s advocate – “go ahead and call and report us to the OCC, they will just turn the call back to us”.

    One of the Presidents of the American Bankers Association appeared to put out his comment when asked about the housing demise – well, we couldn’t tell the banks what kinds of loans to make”. This one hacked me more than any of them – well they could have with all of the taxpayer money they receive at least done some public announcements in the media that the “homeonwers need to be aware of the dangerous loan programs” That would never have happened since the financial services is one of the keepers of the American Bankers Association –

    And then the great ones Fannie and Freddie – “you will feel the pain” if you walk away from your home – written in newspapers all over the nation, but no one cared. That is when I asked the question – but what about all those deficiences that will be filed against these homeowners whose homes are being stolen from them – I guess that is the pain – Well it doesn’t begin to describe the pain that Fannie and Freddie have caused this nation and its people. GSE’s that were bailed out by the taxpayer – no this is something that I could never get the American people to address and now they are making another in your face announcement – The tea party should have gotten involved because there could have been no other event in our history than this time to protect the “rule of law” and guess what, the government and the agencies have proven they are not doing it.

    In 2008 – I wrote about “Meet your servicer at the Gates of Hell” and that was back 3 years ago and as I said then, they would never be able to or intended to carry out the plans of Bush and Obama – It was all a ploy to make it look like the government was doing something for the housing demise as they forked over $150 billioin to Fannie and Freddie, 28 Billion to Bear Steans (Chase bought Bear for $287 million) – Guess what people – only history is going to confirm what the outcome will be – there is nothing but disappointment in the Congress, the AG’s and the Commander In Chief’s. Always remember, and I believe this to be true – the regulatory reports directly to the Congress – voting them out, all of them, and now – for it would be they, the Congress, that has brought this economy to its knees. And now they are going to make the right decisions for us – I don’t think so.

    Neither party is worth its salt and that is why “in the hands of a few” go the rewards of many – the American people pay up every day to such a very small sector that has literally taken us down this path.

    Thank you.

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