After The Storm – Foreclosure Fraud & Robo-Signing Continues by Nye Lavalle

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COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE

EDITOR’S NOTE: THE ONLY THING MISSING IS THE LARGEST QUESTION OF ALL: WERE THE MORTGAGE LIENS EVER PERFECTED? DO THEY EXIST?

I also contest the issue of whether the banks were ever intending to do things right. I know from interviews I conducted that several lawyers who were assigned the task of drafting papers and procedures for securitization simply quit, citing illegality and even criminality of these acts. I believe the intention was always to defraud the investors, defraud the borrowers and take the principal as fees. This diverges from past corruption where fees were excessive or where the investment was bad. Here, the intent, in my opinion, was to create a bad investment and use leverage on the banks name and reputation to sell something that didn’t exist.

The proof is in the pudding. Analyzing these pols and the securitization scheme set forth in the PSAs, it is quite clear that the worse the loan, the worse the mortgage bond, the more Wall Street made. The higher the certainty of a loss to the investor, the higher the probability of the borrower being defaulted, the higher the profits and fees. Just do the math. If the investors wanted a 5% return, they wanted $50,000 per year as interest on their money if they invested $1 million. Wall Street delivered the $50,000 by making high risk loans averaging 10% instead of 5%. The result was that they could take $500,000 and fund a 10% loan, and take $500,000 and put it in their own pockets.

The Banks are still leveraging on their prior reputation for risk aversion and sticking by the rules of underwriting. And people are still buying the myth that the banks were just out to make loans. They were not. They were out to make profits, stealing the investors money, stealing the borrowers down payment and other money, stealing the houses and leaving both sides with nothing. Why won’t people use the age-old instruction: “look to the result to determine the intent?”

SEE NYE LAVALLE 62650988-After-the-Storm-Final

“In the best-­‐case scenario, concerns about mortgage documentation irregularities may prove overblown. In this view, which has been embraced by the financial industry, a handful of employees failed to follow procedures in signing foreclosure-­related affidavits, but the facts underlying the affidavits are demonstrably accurate.

Foreclosures could proceed as soon as the invalid affidavits are replaced with properly executed paperwork.

The worst-­‐case scenario is considerably grimmer.

In this view, which has been articulated by academics and homeowner advocates, the ‘robosigning’ of affidavits served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. In essence, banks may be unable to prove that they own the mortgage loans they claim to own.

The risk stems from the possibility that the rapid growth of mortgage securitization outpaced the ability of the legal and financial system to track mortgage loan ownership.”

After The Storm – Foreclosure Fraud & Robo-Signing Continues by Nye Lavalle

Foreclosure
Fraud
&
Robo-­Signing
Continues…

A Year Ago, A Storm of Allegations And Reports Highlighting Robo-­Signing And Foreclosure Fraud Swept Across America Causing Major Banks To Halt Foreclosures Nationwide While Congressional, State, And Federal Investigations Were Launched. A Year Later, While Investigations Are Still Ongoing, Regulators Have Failed To Correct The Underlying Issues Behind Foreclosure Fraud And Robo-­Signing. The Overwhelming Evidence Presented In This Paper Is That Not Only Were American Homeowners And Borrowers Defrauded In The World’s Greatest Financial Scam, But American’s Wealth And Security Were Placed At Risk. To Date, There Has Been Only One Criminal Conviction Of An Executive Of A Major Mortgage Company And Other Criminal Convictions Have Been Halted. Still, As Shown In This Paper, Foreclosure Fraud And Robo-­Signing Continue While Some Courts Address The Issue And Others Ignore The Ramifications Of This Massive Fraud. What Is Now Known Is That These Scams Were Not Unique, But Industry-­Wide. The Mortgage-­Backed Securities Turned Out To Be Non-­Mortgage & Note Backed Empty Trusts. To Conceal This Massive Ponzi Scheme Perpetuated Against Americans, The Nation’s Mortgage Industry Continues To Manufacture, Fabricate, & Destroy Evidence, Despite The Inherent Risks And Ramifications Since Over 90% of Borrowers Don’t Challenge Their Foreclosures.

19 Responses

  1. We called Citi in July of 2009. (we were current on our mortgage and had not missed any payments) My husband was going to be getting a paycut and we were trying to be proactive on what we could do before that happened. We asked Citi what we needed to do to stop escrowing. (Our yearly bonuses more than paid for homeowners insurance and property taxes), could we prepay a year, could we just pay the invoices ourselves, etc. Citi told us that it was a WI state law and that we had to escrow. (untrue, but did not know that)

    Citi told us that what we wanted was a loan modification and they would put us in that and that was the help we were looking for (sure, right) Of course, I had no idea what pandora?s box we had just opened. (no other options were ever presented or discussed with us.)

    Again, as they say hindsight is always 20/20, we had no idea what a modification was, but why would our mortgage company advise us to do something that could do harm to us or them?
    Citi told us the first trial payment would be in 2 months. So we should just pay the normal payments for 2 months and then the following month pay the trial payment we asked? Citi told us, no payments until the first trial payment. Again, why would we think our mortgage company would advise us to do something that would harm us? Wow – were we blind.

    We made about 9 TRIAL payments!!

    May of 2010 we were denied HAMP. BUT, we were told that was good news, we were actually back to Citi for a traditional modification. Again, no other options were mentioned or discussed with us. This is is what we wanted we were told.

    The next month we get a letter to call and make arrangements before foreclosure would start. Of course I called hysterical and was told as long as I was making monthly payments and in the modification process, Citi would not foreclose (haha). That is just a letter the computer sent out. We were not being foreclosed on. Same thing in May, June, and July, received letter, made phone call, we are still being considered for modification and we are not being foreclosed on.

    August 2010, Citi mysteriously loses my automatic monthly payment information, does not take my August payment and files foreclosure. What? But we are in the modification process? Now remember, this according to Citi and law, we are now 90 days passed due because we were instructed to not pay for 2 months which puts us automatically 60 days passed due. Now of course, we see what their true intentions are.

    We get served papers and file an answer. 2 weeks later we get offered a modification, my attorney calls their litigation department, and their local attorney (calls were not returned). Modification offer gets closed. (WHAT!)

    Another court date is scheduled for foreclosure. I finally got the contact in the ERU dept. Executive Response Unit at Citi and they rush and we get approved for another modification (But worse terms, only lowers interest .6% instead of 2% like previous offer (all income and bills were the same) we sign offer to get foreclosure case dismissed. (Not even going to mention the fees, interest, delinquency charges that were added to the principle of our loan)

    After 4 months of on time payments with the perm. modification, we get a letter from Freddie Mac that they do not approve of the modification?! and a letter from Citi to call to workout arrangements instead of foreclose (short sale, etc)

    So confused and no idea what is going to happen next. Just when you think everything is going to work out and you can breathe, it all comes crashing down again.

    Oh, and the week they filed foreclosure I had talked to Citi four times because they called me for more documents for our modification and never once mentioned the status of our account!!!

  2. […] After The Storm – Foreclosure Fraud & Robo-Signing Continues by Nye Lavalle MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE EDITOR’S NOTE: THE ONLY THING MISSING IS THE LARGEST QUESTION OF ALL: WERE THE MORTGAGE LIENS EVER PERFECTED? DO THEY EXIST? I also contest the issue of whether the banks were ever intending to do things right. I know from interviews I conducted […] […]

  3. The facts are the Non agency mortgage lending scheme made sense for borrowers seeking something the Agencies could deliver. As an underwriter I will tell you I am not opposed to low credit scores and late pays for successful entrepreneurs and physicians.

    As an underwriter I would accept a 560 score with a cardio specialist on a stated income and stated assets mortgage loan and advance 95% LTV or CLTV . I also held a bias as to conventional lending theory towards granting acceptance entrepreneurs who were cash strapped with no savings n their personal accounts. They had horrible credit and were maxed out o their credit cards. Their privately held business accounts would carry a high six digit balance and they ran a business with little of no debt. Get it – Uncle Sam.

    Rating agencies did not get it and around the time Merscorp emerges is that time and place whereby credit scoring standardization is made mandatory using FICO scores.

    Low scores required common sense lending practices and provided the low debt to income ratios credit to a borrower who was lacking willingness and not capacity. Credit scoring was the root of the evil allowing borrowers with high score to obtain unaffordable financing.

    When I review the files application I am looking for inducement into a predatory loan and challenge the credit score as the causal purpose for the unconscionable financing. The higher score borrower had the willingness (to pay timely) but lacked the capacity.

    The lower scores would typically have abundant capacity and a chronic case or unwillingness to pay on time.

    The later took a higher rate he could obviously afford and upped the APR with regular late payments.

    Credit scoring was demanded by the rating agencies and therein is a negligent act causing the lender to satisfy the capital markets demands.

    The Fair Issac system, delegated underwriting systems driven by rating agency demand for higher scores rewarded the registrant lender for avoidance of traditional underwriting and quality control standards.

    I often push attorneys to reconsider the arguments to controversy for alleging the willful and conscious drive to attract business that was on mark with debt service far beyond the means of the average borrowers economic capacity.

    expert.witness@live.com

  4. Carrie, I love that show! I’ll try. Better yet, if you call me, since you write much better than I, perhaps you can help me figure out who to explain and put in format others may understand. 973-347-3475

    Debt on property is perpetual until paid off.
    The debt is reassigned over and over to ‘somebody.’

    Some borrower/borrowers, make a promise to pay somebody.

    The money sent into the servicer tracked by the Loan# Assigned which is assigned prior to the borrower signing the mortgage promissory note. A transaction you may not have a copy of, is the cash attached to the ‘loan#’ taken out of the non-depository trust account of a non-member related to the institutional investors’ underwriter, and the ‘cash’ prefunding, deposited into ‘Sellers’ pass thru agency consumating the deal for loan#, which over a period of up to 90 days, will be a short-term investment of an insitutional bank who under bank secrecy act does not have to record 90 day and under transactions passed thru pass thru agency.

    The seller of loan# c/o settlement agent receives cash for new loan, and the borrowers transaction for a Retail loan activated and a Servicer will handle the payments of cash sent to some lockbox and the loan is considered performing. The performing loan is placed into ‘FWP’ free writing prospectus. MOODYS, S&P, FITCH will provide stamp of approval for ratings required and allow ‘loan’ sale – purchase to be recorded c/o Institutional Underwriters and Master Servicer, who pay themselves commission from the prefunding which includes the cash attached to the new loan, and the payments you made on the loan until PSA closes.

    In the case of a refinance, the prior loan will be structed as a strategic forced default after 90 days releasing mortgage note from issuing entity and selling mortgage note as REO property which PREFUNDING cash may be used.

    The refinances become perpetual debt.

    The debt which was suppose to be for 30 years, is amended with a new ‘mortgage note’ in which the mortgage deed of trust’ resold to new issuing entity c/o pass thru agency. The loan in the borrowers name, the DEED OF TITLE in the borrowers name, the chain of title clouded in the event of default.The mortgage note owner of the ‘loan trust’ certificates may not claim the property for the mortgage backed note was in trust of the beneficiaries ‘ assignee and or successor – the nominees who literally can be anyone for we are dealign with commercial paper here.

    Once the title commitment policy issued, the closing agent will receive within a couple of days cash for the new loan and represnets a commitment, purchase order paying for loan to seller – pass thru agnecy. The rights to collect money from borrower were sold by purchaser of mortgage note. The (debt) will be serviced until its satisfied or a default occurs. If a default occurs the debt will be resold, and a new servicer will foreclose claiming they are owner of mortage note which they are not. The servicer agreed to the deal, part of the credit enhancement the institutional investors receive when they service the debt is a biggie they agreed to be responsible for an unsecured debt and must pay the loan even if the borrower does not, like a co-signor of a loan. The only way out is to go bankrupt or lose the whole portfolio. If they go bankrupt somebody else will pay pennies on the dollar for the right to continue to collect money from you.

    Important: The former loan the refinance was suppose to pay off was placed into forced default in order that after 90 days the mortgage servicer may at its discretion liquidate the loan and sell to the new issuing entity as reo property. S-3 and S-3/A clearly state that the Pre-Funding may be used to purchase the REO property at ‘junk rate’ and new loan placed into a new ‘issuing entity’ in which the Temporay Lender up to 90 days may pass thru the cash deposits and not record the short term investment, and by day 90 the mortgage loan placed into FWP, perhaps and PSA closed. Until the next time

  5. Our AZ Investigation Firm is investigating four notaries for BK/America in Texas that notarized recorded foreclosure documents filed of record in AZ.
    One of the notaries contacted me directly and said she was notarizing as many as 150 documents per day for six months, she was hired thru a temp. company and when she her was let go the Bk/America attorneys kept her Notary Journal..and will not return it to her. She was a notary before doing work for Bk/Am. I smell some rats….will be requesting TX. Sec/of/State to conduct a criminal investigation of these matters.
    I will provide the names of the four suspected notaries to interested parties.
    Bob Wilson, President
    AZ Undercover Pvt. Investigations, inc.

  6. From Drudge , a link to a Baltimore story .. ghost sections of city , vacant homes everywhere , selling for $10 and up ,, $3,000 typical

    http://www.baltimoresun.com/business/bs-bz-baltimore-region-housing-market20110821,0,3712709,full.story

  7. Nancy, can you say what you just said so that a 5th grader could understand it?
    I need a way to explain what happened in a very simple and easy to understand way…maybe some kind of analogy would be in order?

  8. Carrie, You are correct. The perpetual debt reassigned over and over.

    The former loan was placed into forced default in order that after 90 days it could be liquidated and becomes REO Property and Pre-Funding used to purchase the REO property at ‘junk rate’ and new loan placed into a new ‘issuing entity’ in which the Temporay Lender up to 90 days may pass thru the cash deposits and not record the short term investment, and by day 90 the mortgage loan placed into FWP, perhaps and PSA closed. Until the next time.

  9. http://www.huffingtonpost.com/2011/08/22/foreclosure-us-america-mortgage-payment_n_933106.html

    Rising Number Of Americans Face Risk Of Foreclosure In Second Quarter

    DEREK KRAVITZ 08/22/11 12:59 PM

    “WASHINGTON — The number of Americans at risk of foreclosure is rising, reflecting the U.S. economy’s continued struggles.

    The Mortgage Bankers Association said Monday that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period.”

    NOT REAL MORTGAGES, YOU A**H**LES!!!!!!

  10. Ahhh the hits keep coming:

    http://mortgagemovies.blogspot.com/2011/08/nashua-nh-police-department-has-no.html

    MONDAY, AUGUST 22, 2011

    Nashua, NH Police Department has no documents indicating they reviewed a clear cut case of forgery and wire fraud, so KingCast gives them a Mulligan to get it right.

    …..I swear to gosh after what I have seen in NH I have dedicated much of my natural life to being a one-man wrecking ball in that hellhouse…..

  11. http://www.huffingtonpost.com/2011/08/22/senior-florida-couple-faces-foreclosure-mortgage-early_n_933147.html

    Seniors Face Foreclosure After Making Mortgage Payment Too Early

    The Huffington Post Harry Bradford First Posted: 8/22/11 02:09 PM

    A senior couple in Pasco County, Florida is facing the prospect of foreclosure. But the reason doesn’t have to do with missed mortgage payments. This time, it’s reportedly because they paid too early one month, and used the wrong routing number the next.

    Only three months after Sharon Bullington, 70, negotiated a mortgage modification under the Obama administration’s Home Affordable Modification Program (HAMP), Bank of America informed her and her husband that they had been ejected from the trial plan for improper payments, St. Petersburg Times reports.

  12. Please change ‘DURING THE STORM’ we are in the eye and the tail end will be more destructive.

    Warning ‘principal reductions’ may be new form of loan modification in which the bad debt was resold, and the ‘reo investor’ offers you to sign on the dotted line and will the day after you sign ‘attach’ bad debt that ordinarily one expects not to be collected. You are warned.

  13. Who knew?

    http://latimesblogs.latimes.com/money_co/2011/08/soured-home-loans-down-.html

    This is being orchestrated and allowed by the Obama Regime.

    NEVER AGAIN

  14. Anything to do with the big Banksters is doomed to fail

    http://online.wsj.com/article/SB10001424053111903461304576523912321913914.html?mod=WSJ_hp_LEFTWhatsNewsCollection

    Too big to fail goes against the laws of nature.

    Real Estate Doomed
    Stock market doomed
    IMF doomed (look what they did to Strauss Kohen?
    Law Firms that work with banksters under investigations

    Gold Silver have nothing to do with banksters Going up.
    Gold is already near $1900.
    Real Estate owned free and clear can lower income (rent) So they make 8 to 12% on their money instead of 12 to 20%

    NEVER AGAIN

    Be Strong and Courageous

  15. Thank you Nye Lavalle – I have not read all of the 106 pages but am there with you. Just posted this under MSN (Microsoft) ad encouraging refinancing:

    WARNING WARNING ‘HAZARD’ TO YOU FAMILY’S HEALTH

    REFINANCE AN YOU WON’T BE SAFE IN LIFE AND PROPERTY.

    You’ll be subject to unlawful seizure of property.

    AS A MATTER OF FACT YOUR CURRENT ‘MORTGAGE’ DEED OF TRUST is already CLOUDED, DEFECTS galore for an institutional investors’ underwriter purchased ‘mortgage note’ before you signed the ‘mortgage promissory note’ and they fooled you – you thought the party listed as LENDER like Wells Fargo Bank NA was a real bank with a real mortgage. No, they laundered money for foreign organizations private wealth managers c/o residential transactions which are not governed by the Patriot Act!

    And, the mortgage note already purchased and not recorded – that is the name of the Owner c/o Instituional Investors’ Underwriter, c/o Temporary Lender as Nominee assignee and/or successors, that one transaction is recorded with County Clerk, Couty Recorder and the loan# links back to the Institutional Investors’ Underswriter Account Holder who paid the temporary lender to collect payments to show MOODYS & S&P, FITCH, …, that the Instituional Investors’ Owners of the mortgage notes loans are performing ‘FWP’ and after 90 days PREFUNDING used to launder money out of USA.

    No one the wiser that 90 days temporary lender benefits as ‘Master Servicer’ and institutional investor owner already resold additional financial products and financial services. Old Republic Title Company issues the LENDERS POLICY, one can assume the Institutional Investors’ Underwriters already were issuing fideltiy bonds on other products.

    The real estate industry controlled nationwide through pipeline Fidelity, FIS, FNF, LPS, DOCX, TD Services, IBM Lenders Processing Services, eLynx, MERS, NASDAD, NYSE, etc.

    The nice ‘mortgage brokers’ work for ‘PIPELINES’ are paid to bring in ‘property’ to generate deposits c/o Instituional Investors’ Underwriters pass through agencies and launder money bypassing FinCEN discovery in which OCC prevents enforcment of laws thru visitorial powers.

    The refinance loan issued by a temporary lender via a trade name bank national association, and BRAND NAME will be used as servicer to collect monthly payments for 90 days to make the payments payable to the instituional owners untraceable.

    CONGRESS vested EXTRA-ORDINARY powers to FEDERAL RESERVE c/o OCC. Brand Name Board Members govern policies affecting private wealth managers

    The Real Estate Industry under control of FIS the only approved vendor of FREDDIE MAC and (WFC, JPM, CHASE, BOA, GMAC, CITI, ONEWEST, robofirms will take your property one day). The ‘nice mortgage brokers ‘ are sales people trained con/men and women format data to get your property as an Alternative Investment aka Alt-A Loan, placing your property into the hands of an institutional underwriter who has lots of money to purchase outright the ‘mortgage note’ and needs loans to generate cash deposits to launder money quater by quarter. 90 days bank secrecy act allow ‘banks’ pass thru agencies to not report transactions and are expected to report elsewhere the ‘income’ generated by short term investments they don’t have to record.

  16. no template required – just file a notice of appeal. did you sue the mortgage company as well? and was the whole case dismissed, or just the law firm? if any part of the case remains active, you’re looking at a different sort of appeal – appeal of an interlocutory order. you generally need permission from the trial court and more than a little bit of luck. remember your time frames, and note that generally a motion to reconsider is necessary before a full blown appeal and that the motion to reconsider tolls the appeal deadline.

  17. Wilson and Associates out of Little Rock, Arkansas and Nashville, Tennessee are foreclosure mill attorneys that are appointing themselves successor trustee and carrying out non judicial sales. I added them to my suit and they made a motion to dismiss. Even though they appointed themselves successor trustee and had no standing and violated State statutes the judge let them be dismissed from the suit. The judge was in the Rutherford TN Chancery Court. I need an appeal template so I can file an appeal. I also need any helpful info on Wilson and Associates to put in the appeal. Tennessee seems to be lagging behind in fighting these theives. Any help would be greatly appreciated. David Starkey pro se DSta421299@aol.com

  18. Quel coincidence! I was just finishing up a letter for the ten (10) U.S. Senators who wrote Fed Chair Bernanke on this very matter on 20 July, 2011:

    http://mortgagemovies.blogspot.com/2011/08/kingcastmortgage-movies-foia-request.html

    MONDAY, AUGUST 22, 2011

    KingCast/Mortgage Movies FOIA request appeals to ten U.S. Senators regarding foreclosure mill Phelan Hallinan & Schmieg’s hateful calls to the police on a homeowner; foreclosure mill Young Conaway Stargatt & Taylor looks on.

    …..Like that veteran police officer who stood dumbfounded in the hallway as to why he was called on the homeowner and me I don’t know WTF is going on here, but I’m certainly going to try to find out.

  19. Thank you everyone for all that you do every single day!

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