Fannie and Freddie Platinum Sponsors with (MERS and LPS) of Upscale Event for Bankers


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



EDITOR’S COMMENT: Are they really that tone deaf? It appears the answer is yes as Fannie and Freddie Joined Hands with MERS and LPS to become Platinum Sponsors of this Bankers Convention. If they had the slightest notion of the mayhem caused by these two culprits, neither Fannie nor Freddie should have avoided the event altogether and certainly not underwritten the expenses.

MERS was the vehicle used to hide the real parties in interest, allow trading behind the scenes and leave clouds on title compounded by frivolous and heart-breaking actions taken by the Banks to foreclose on properties based upon alleged mortgages that were never perfected as liens for debts that were not owed to the Banks and never acquired by them. The paper shuffle to give the appearance of a real party in interest was accomplished by a document fabrication mill — LPS.

Fannie and Freddie are now effectively nationalized, which means that in addition to the bailout, they are still underwriting costs for the banking industry. Small wonder that protests are taking to the streets.

Well, they had a lot to talk about — especially the growing acknowledgment and recognition that the signatures of evicted homeowners on fresh documents were necessary to clear title whether or not they were successful in pushing or bullying through their bogus foreclosure. The market is growing for for programs that entice homeowners to sign documents under one pretense that are being used for the secret agenda of the banks to simply get a waiver that they can waive in front of a Judge and say the homeowner waived any defenses.

The principal weapon of choice now is the offer of a modification plan that will later be rejected. But in the meanwhile, the homeowners signs an application in which he or she has waived all rights to contest the foreclosure — even if the the party initiating the foreclosure doesn’t have a dime in the deal and even if that subjects the homeowner to double or multiple financial jeopardy. The second line of defense is the new BOA pilot in which it is offering a “cash for keys” program in which they offer up to $20,000, as long as the homeowner signs a waiver and release of all claims.

Livinglies and (site still under construction) have come together in a joint venture called American Mortgage Guarantee and Resolution (AMGAR) to provide an open auction in which those homeowners who choose to take a little money rather than go for the brass ring in litigation can exchange their signatures on a package of waivers, releases, assignments and conveyances to anyone who wants to buy them. BOA has set the price range, but the market will dictate the rest.

AMGAR is outcome-neutral. No guarantees are expressed or implied as to the success of litigation or the value of the package. It’s purpose is to provide a vehicle where the homeowners who have decided to step away from fighting can provide the signatures necessary to clear title.

Junior or previous putative lienors may purchase the homeowner package and offer a value added package of the entire securitization chain. For those homeowners confused by this and the previous paragraph, it is not for you — it is directed at highly sophisticated qualified BUYERS, traders and alleged pretender lenders that wish to clear up entire chains of title. The risk of loss is entirely on the BUYER with no warranty or representations by the SELLER, except their identification.The BUYER assumes the risk of loss or further litigation without any representation from anyone upon which BUYER can reasonably rely.

There is a fee charged to the BUYER equal to $250 for the first $5,000 and $500 for any transaction that exceeds $5,000. This supports the trading desk and auction site at which the SELLERS and BUYERS “meet” electronically.

We would rather the homeowners stand and fight but if they are going to walk away, it might as well be with $20,000 (more or less, depending upon what the market will bear) in their pocket. The vehicle is named a Reverse Credit Default Swap which is sold by the homeowner or previous lienor and bought by hedge funds, Banks, CURRENT AND FORMER LENDERS, title companies and other qualified speculators. Until the auction site on the AHC site is fully functional, inquiries should be directed to

The service is free to homeowners who are members of livinglies or members of the new cooperative American Homeowners Cooperative. However, it is strongly recommended that you purchase the COMBO before making the decision as to whether to fight or sell and that you seek the services of competent legal counsel licensed in the jurisdiction in which your property is located. In addition to providing the prospective SELLER (homeowner) with vital information with which to make a decision to fight or sell, the link to the COMBO results will provide a prospective Buyer easy access to information needed to assess the value proposition (prices are set by the SELLER, i.e., homeowners).

Fannie and Freddie, Still the Socialites


THE mortgage business is moribund. New loans are down. New foreclosures are up.

But why let a little sorry news get in the way of a good party? Last week, almost 3,000 people descended on the Hyatt Regency in Chicago for the 98th annual convention of the Mortgage Bankers Association.

The price of admission: about $1,000 a head. But for that grand, you got to hear the band Chicago play hits from the ’70s. And David Axelrod and Jeb Bush give speeches. And experts discuss things like demographics, the politics of housing and the future of the mortgage industry, according to a flier for the event.

“Gather the information you need to help your business and our industry drive change,” the pitch went.

The city of Chicago was no doubt grateful for the conventioneers’ dollars. Besides, Mayor Rahm Emanuel knows something about this industry: he used to be a director at the mortgage giant Freddie Mac.

Nothing wrong with a bit of schmoozing. But it might seem jarring that Freddie, which was rescued by Washington and today exists at the pleasure of taxpayers, paid $80,000 to become a “platinum” sponsor of this shindig. Fannie Mae, that other ward of the state, paid $60,000 to become a “gold” sponsor.

Keep in mind that taxpayers bailed out Fannie and Freddie to the tune of about $150 billion.

Today, Fannie and Freddie are about the only games in mortgage town. Yes, banks make loans, but more often than not they hand them off to one of the two. So it’s a mystery why Fannie and Freddie needed to help foot the bill for the gathering.

Freddie’s companions in the platinum sponsor list make for interesting reading. One was the Mortgage Electronic Registration System, or MERS, which has repeatedly foreclosed on troubled homeowners and made a hash of the nation’s real estate records. Another was Lender Processing Services of Florida, which made robo-signing a household word.

MERS and Lender Processing Services are at the center of the foreclosure crisis. Why would Freddie keep such company?

Perhaps more disturbing is that Fannie and Freddie sent an army of their own to Chicago: 87 people in all. According to a list of registrants, that’s more than hailed from the Mortgage Bankers Association (60 people), Bank of America (58), Wells Fargo (54) and JPMorgan Chase (24).

Only Lender Processing Services had more — 91 — than Fannie and Freddie. (Perhaps they robo-signed their registrations.)

The C.E.O.’s of Fannie and Freddie were conference headliners and gave presentations. But Freddie also sent 15 vice presidents and 14 directors from various units. Fannie’s list included 12 vice presidents, 12 unit directors and three events managers.

I asked Fannie and Freddie what they got out of sending all of these people to Chicago. Representatives of both said participation was an efficient use of taxpayer dollars because it allowed their employees to hold crucial meetings with hundreds of customers to discuss ways to address the housing crisis.

Fannie Mae’s spokeswoman, Amy Bonitatibus, added that it has “significantly reduced sponsorship and support of events and industry-related conferences.”

Representative Randy Neugebauer, the Texas Republican who heads the oversight and investigations subcommittee of the House Financial Services Committee, said he was disturbed by the turnout from Fannie and Freddie. It reflected a troubling “business as usual” approach by the mortgage giants, he said.

“They don’t act like companies that have had a huge infusion of taxpayer money,” he told me. “Why do they feel the need to go out and spend the money for networking when they have all of the mortgage market in its entirety?”

Trying to tally the costs borne by the taxpayers for the four-day event in Chicago, Mr. Neugebauer sent a letter last week to the Federal Housing Finance Agency, conservator for Fannie and Freddie. “I am concerned that the expenditures that Freddie and Fannie made in connection with the conference bear no relation to furthering the actual purposes of the conservatorship,”he wrote.

He requested a rundown of amounts paid by the companies to cover travel, lodging, entertainment and sponsorship. He also asked for details about whether Fannie and Freddie had consulted with the agency beforehand about sponsoring and attending the conference. The agency was asked to respond within a week.

”We’re going to really look through their entire budget and see if we can see signs where they are tightening their belt,” Mr. Neugebauer said, referring to Fannie and Freddie. “The American people are tightening their belts, businesses all over the country are tightening their belts. These entities can certainly do the same.”

22 Responses

  1. are you guys serious about the outrage of Neil making a buck? the products he’s had for sale forever are largely overpriced or not useful. that expert affidavit he sells is not admissible and the title search is a 500% markup of the local market price.

  2. DAs are elected, right?
    Let’s go for it. No more plea bargains. Let’s see how DAs come out of this one. Hopefully, it will also be nationwaide.

  3. Off topic:

    Here you go….here’s how “We the People” can hit back at our totally unfair system, using the very same devices they so effectively use against us. Make no mistake about it, this could also be scaled to work against the banksters with foreclosures. We need to take back our world. We need to un-fuck it all.

    Next up for protesters: Occupy the Courts.

    Lawyers representing about 800 Occupy Wall Street protesters arrested in the past month demand that prosecutors drop the charges.

    If not, they say they won’t deal and will insist on going to trial – putting pressure on the already overloaded Manhattan criminal courts.

    “I’d like to suggest to the DA’s office the appropriate way to deal with these cases is outright dismissal,” said defense lawyer Martin Stolar. “The leverage is, we take them all to trial.”

    Read more:

  4. I am sooo sorry! Talk about being absolutely clueless. I’ve seen things happen, I’ve gone thousands of times “Hugh?”, not completely clear about the concept but this, to me, could simply not be real. So Garfield is really going to cash in on it? Knowing what he knows, Garfield has actually decided to become part of the problem and no longer part of the solution? Garfield sold out? That’ll teach me to hang on to naive. Between E.Toile explaining to me how people got suckered into upwards mods and this article, my world just completely shattered to pieces.

    Well, that does it: I will die “going for the brass ring in litigation” rather than cave in like that, even if it is the last thing I ever do in my entire life! Time to get a gun.

    Thank God for Mandelman though: he can put a good spin on it and right now, a good spin is what I really need.

  5. Way to sell out, Neil.


    “…But he wasn’t really talking about voters, of course. He was talking about the one thing Wall Street still has plenty of thanks to those bailouts, despite its total loss of credibility: money.

    Money talks in American politics, and what the financial industry’s money has been saying lately is that it will punish any politician who dares to criticize that industry’s behavior, no matter how gently — as evidenced by the way Wall Street money has now abandoned President Obama in favor of Mitt Romney. And this explains the industry’s shock over recent events.

    You see, until a few weeks ago it seemed as if Wall Street had effectively bribed and bullied our political system into forgetting about that whole drawing lavish paychecks while destroying the world economy thing. Then, all of a sudden, some people insisted on bringing the subject up again.

    And their outrage has found resonance with millions of Americans. No wonder Wall Street is whining.”

  7. No, it’s not a joke. It’s the biggest scam going right now. Ya’ll know as well as I do that the debt collectors can’t legally foreclose. So the new biz model is for Slick Weasels to offer the nation’s impoverished pennies on the dollar for signing a stack-o-legal waivers releasing them from their properties. They then clear title, then sell or rent the home back to the downtrodden and destitute populace. This way, the poor can look towards to the rest of their lives lived in abject poverty, thanks to those that have! Isn’t it a great world we live in? I love it when really big bad guys are replaced with smaller bad guys….

    An attorney I know just attended a weekend workshop on this. I guess they figure if you have disclaimers in the paperwork whereas you’ve explained what exactly the legalized fraud is that you’re committing, it makes it all OK. Yeehaw! Screw your fellow citizen while the screwin’s good! Greed and fraud are the only things left in this country that we manufacture in large quantities after outsourcing everything else.

    There’s nothing illegal about it that I can tell. No more so than what the creditors are doing as we speak. Having said that, one is reminded of the last crucial scene in “The Exorcist”, when the priest finally gets what he asked for. Ask yourself, is it worth it?

    Does money cause everyone to get a woody these days? I just don’t get it! I for one would rather live out my life in tent city than live in a mansion bought with monies had from these techniques. Bloodsuckers. We need some wooden stakes, and fast. And it’s not even Halloween yet.

  8. Enraged

    Color me stupid but this column doesn’t read like a joke to me and I reread it after your comment.

  9. Guys (E.Toile and usedkar)

    Are you really taking Neil’s column seriously? I read it yesterday and I laughed so hard, i nearly fell off my chair! I thought “Too funny! Good one. Let me borrow a few bucks and jump on that bandwagon.”

    This is a joke, guys! Otherwise, I’m dumber than i thought. I has to be a joke: Neil can’t be playing that game. I really believe that he was poking fun of today’s mindset concerning defaulted homeowners.

    Please, tell me it’s a joke. Please…?

  10. TollBooth, that was great!
    Who sent you the itinerary for the Mortgage Bankers Convention?

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    Make sure you too take advantage of this profit making scheme before fraud gets a bad name! Call now while people still believe that raping and pillaging friends and neighbors is an acceptable business model worth emulating! Nothing smells like money more than the misery of others. Remember, if you don’t take advantage of them, someone else will!

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  12. Yes, it does sound like Mr. Garfield has jumped into bed with the fraudsters. Shame on you! I guess you couldn’t reisist the money, and you don’t really care about what is right.

  13. Mr Garfield

    Are you getting in bed with the fraudsters?

    It’s all about money isn’t it. Now you’ll make a pile if you haven’t already

  14. You are right. I totally agree with you, zurenarrh!

  15. I have a document showing that Mortgage Electronic Registration System, Inc, (MERS) changed its name several years ago. Why are all the mortgages still written under its old name; or should we assume that floating a new name here and there is just part of the game?

  16. I’m with you Zurenarrh. Plus, Fannie never acknowledged any of my letters when I was fighting on my own. Someone signed for them (I got the return receipts) but not a peep.

    Since I filed, it’s become “Fannie? Fannie who? What Fannie?” It would make absolutely no difference if they simply stopped existing. Especially since we own them anyway. In fact, that might free up a whole bunch of salaries that could then be used to pay contractors to revamp our infrastructures… Ditto for Freddie.

  17. This is outrageous. As for me, I am fighting Fannie and will not rest until I have my house or Fannie Mae is dismantled.

  18. They are securitizing the deficiency collections and have five years to go after them. Investors eager and ready. (see wallstreet journal – “house is gone but debt lives on” ). Could I securitize my own deficiency?


    Roy D. Oppenheim is a senior partner at Oppenheim Law, a South Florida law firm focusing on real estate and foreclosure defense law. Mr. Oppenheim is a recognized expert in foreclosure defense, and has been used as a source by major media outlets including the Wall Street Journal, New York Times, AP, USA Today, FOX, NBC, CBS, the BBC and The Florida Bar News as well as The Daily Show and 60 Minutes.
    Jacquelyn K. Trask-Rahn is an associate at Oppenheim Law. Mrs. Trask-Rahn graduatedwith a B.S. from the University of Michigan in 2006 and graduated summa cum laude with a J.D. from Nova Southeastern University Shepard Broad Law Center in 2011. Mrs. Trask- Rahn was a Merit Scholar and former Articles Editor for the Nova Southeastern University Law Review


    It was already a highly valuable commodity before they signed the docs in the first place. Their home was turned into a commodity and sold around the world in advance. Their unregistered unsecured note was sold without their consent and their homes encumbered illegally. They were the original “debtor/sellers” just like the ones who “sold” it over and over even in advance and this was fraudulenty hidden. Homeowners are due the massive profits, default insurance and all the rest from the sale of their note – that is if it wasn’t fraud which it was. Damages are due. Why allow anyone to bribe them to stay quiet about this and hand over fraud title which cannot be fixed? Only way to fix it is forfeiture. The signatures needed are on the pretender lender side. Sign off, pay up and maybe get reduced jailtime.

    “For those homeowners confused by this and the previous paragraph, it is not for you” Guess that’s me – will have faith and stay tuned this somehow works out to the benefit of homeowners…. Chase has gone as high as 35,000 short sale bribe for their specifically selected ones in this state….how about 50,000 or 75,000? Some big mortgages in this state have payments that reach those amounts and more per year plus property taxes on top. How long will it take to foreclose? Hmm. Walk away doesn’t have to happen immediately. How much is it worth to pay someone to stay, short sell or walk away? Still though, isn’t it further perpetuating a fraud?

  21. Neil: I want you to start “tightening your belt” in a more serious manner.

    A little bit more “harrumph”: Neil (you know exactly where I got that from).

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