Nevada: Epidemic of robo-signing – false, fabricated and forged documents

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EDITOR’S NOTE: Why are they using false documents? The answer lies in the lies they were telling from the time they first sold the first bogus mortgage bond to investors right through the time they sold the borrower on a bogus “mortgage loan” that was actually part of a securities scam in which the homeowner was used as a pawn to issue “negotiable paper” (securities that were traded randomly for “trading profits” on Wall Street.

The loans were in many cases paid in full by the payment of insurance, bailout and proceeds from credit enhancement hedge products that were “traded” (often without money changing hands) and received in quantities far exceeding both the total amount of funded mortgages and of course the the much lower amount of mortgages that were “funded” which later “defaulted” (despite receipt of payment by or on behalf of the creditor.

They are using false and misleading paperwork to document transfers that never happened on loans that are claimed to have a balance due that is nowhere near as much as the actual balance due, if any. If they were operating honestly only a tiny fraction of foreclosures would survive. But the Banks and service saw an opportunity to grab the houses anyway, without a balance due, without  a payment due and they went for it. If you have another explanation for why they are using false paperwork and false accounting, then tell me about it. The world wants to know.

Proof is in their conduct. By pretending to comply with HAMP guidelines on mortgage modifications, after taking billions of taxpayers dollars and signing agreements to process modifications, the servicers and banks unilaterally and uniformly turn down modification requests without sitting any reason — because they want the house, not your modification. If the they turn the loan into a performing loan then the investors get the money. If they go through with foreclosure, the investors see little or nothing, as the balance or or the property is kept by Banks and servicers.

In most cases the modification offered is worth far more than the proceeds of foreclosure. IN any other setting where the players were acting in good faith they would falling all over themselves approving modifications that would (a) give them more money than a foreclosure and (b) eliminate all the borrowers’ claims for predatory lending and fraud in the origination of the loan.

Desert Underwater: Robo-Signing Problems on Foreclosure Documents

SEE FULL STORY WITH PICTURES HERE

Posted: Nov 15, 2011 2:57 PM MST Updated: Nov 16, 2011 8:50 AM MST

By Colleen McCarty, Investigative Reporter – bio | email
By Kyle Zuelke, Photojournalist – email

LAS VEGAS — The nation’s largest banks stopped foreclosures last fall following allegations their employees cut corners while processing the paperwork. A short time later — with promises to halt the illegal practices — foreclosures resumed.

The I-Team has learned robo-signing remains what some officials call an epidemic in Nevada. Robo-signing refers to a variety of practices. Among them — employees who sign foreclosure documents they haven’t read, employees who use fake signatures to process documents, or employees who fail to follow notary rules.

It matters because the people foreclosing on homes swear to the accuracy of their actions without actually verifying them. Beyond being illegal, it can lead to wrongful foreclosures.

To trace the last five year’s of Tanya Butterfield’s life, look no further than the home she so desperately wants to save. It was purchased in 2006 for $315,000. Now, she is at a bankruptcy attorney’s office.

“I didn’t realize this was going to be so emotional. It’s hard because it is our first home,” homeowner Tanya Butterfield said.

When the casino cut her husband’s hours and Tanya lost her job in 2009, the Butterfield’s could no longer afford their $2,800 a month mortgage payment. They gave the last of their savings to a man who promised them a loan modification yet delivered even more hardship.

“By the time they got to me, they were on the eve of foreclosure,” Butterfield’s attorney Tara Newberry said. She worked to facilitate a short sale. While negotiating with two different lien holders; Bank of America and Cenlar, Newberry uncovered even more suspected fraud.

“You look at the document and they sign as an officer of MERS and you look at the next recording down and it’s the same person signing as the vice president of Bank ABC and then the next document down, they’re signing as the foreclosure trustee and it’s like wait a minute,” Newberry said.

Read More About MERS

On the same day, in records used to foreclose on the Butterfield’s, the name Angela Nava appears wearing two hats. On one document, she’s the Assistant Secretary of MERS, the Mortgage Electronic Registration System. On another document, she’s the Assistant Secretary for U.S. Bank.

“The question becomes who is Angela Nava? Did she have the authority to make this assignment and on who’s behalf is she acting?” Newberry suspects Nava is a robo-signer who is a mortgage servicing employee who signs off on thousands of foreclosures attesting to the accuracy of the documents without actually reviewing them.

Infamous robo-signer Linda Green, who appeared on 60 Minutes, fraudulently identified herself as vice president of more than 20 banks. Documents bearing Green’s signature have surfaced in Nevada.

“We’ve seen sloppy paperwork to outright fraud,” said John Kelleher, chief deputy attorney general.

Kelleher supervises the Attorney General’s Mortgage Fraud Task Force and its active investigation into robo-signing.

“We’ve been finding so many fraudulently signed documents that I think it would be fair to say you could declare the county recorder’s office a crime scene. It’s that bad,” Kelleher said.

To test Kelleher’s claim, the I-Team did its own random search of foreclosure records filed beginning in October of last year. In just under a few minutes, notary B. Perez, licensed in California, stood out due to the variation in her signature.

Although, her employer – Quality Loan Service Corporation – in a written statement “adamantly asserts that the signatures on its documents were signed by the actual person whose name appears.” In addition, Quality Loan Service Corporation offered to have Ms. Perez and the three individuals on the documents sign a declaration under penalty of perjury that the signatures on the documents are their own.

“You can see in this, the B and the P are not connected,” said Brenda Anderson, forensic document examiner. “These are interpretations of what I believe to be four different people and their rendition of the signature of the notary.”

Anderson believes the signature varies with the trustee. If she’s right, each forgery recorded with the county, is a crime, at least on paper. Be it B. Perez, Linda Green, or Angela Nava.

In practice however, families like the Butterfield’s are finding it isn’t enough to save their homes.

“Even if they could raise these claims and offset some, they still aren’t going to be able to afford the house and they can’t sell it for what they owe,” Newberry said.

Even with a buyer, the short sale fizzled when the lenders couldn’t reach a deal. Now, bankruptcy is the Butterfield’s last hope.

“It’s very overwhelming.” For Tanya, the loss is about much more than a house, it’s her first home and the only home her son has known.

Many of the attorneys 8 News NOW spoke to say, as far as help for homeowners, finding this type of fraud serves several purposes. The first: know who you’re dealing with whether it be for a loan modification, a short sale, or even a foreclosure. You could end up paying someone who doesn’t hold your mortgage. The second: these issues can help to leverage your lender into negotiating with you, especially if you participate in the foreclosure mediation program. And finally: the Attorney General is investigating this activity and criminal charges might convince the servicers to clean up their act.

Quality Loan Service Corporation, meanwhile, said in a statement, “Quality adamantly asserts that the signatures on its documents were signed by the actual person whose name appears. Quality has offered to have Ms. Perez and the three individuals on the documents sign a declaration under penalty of perjury that the signatures on the questioned documents are that of their own.” [EDITOR’S NOTE: QLS IS BOA. Would did you expect them to say?]

9 Responses

  1. “las vegas” posted first , heres another story about 2 felony counts against robosigners in Nevada .. http://online.wsj.com/article/SB10001424052970203699404577042961074968218.html?mod=googlenews_wsj

  2. http://www.businessweek.com/news/2011-11-16/pair-charged-in-nevada-foreclosure-robosigning-scheme.html

    pair charged with 600 counts of robo-signing in nevada!

  3. johngault,

    Robo-signing not limited to assignments. Go back to satisfactions/discharges.

  4. BAC attempted to foreclose on my property, utilizing multiple deceptive strategies. 1) suspended heloc 11/08. without justification. Failed to give proper notice or respond to request why, violating FCRA. In 2011 finally sent me a response to comply with QWR. The address in response is my recent PO Box. BAC must have been clairvoyant to know where I would living in the future. Fabricated DOC
    2) Forced place flood insurance which I pay directly to FEMA and they send declaration directly to BAC. I’ve been current for 12 years. Using internal entity Balboa, self insures, kickbacks, inflated payments, creates own billing policies. Vertical Integration makes for very deceptive practices
    3) Dual Tracking, BAC agreed to modification in writing while simultaneously defaulting loan, BAC recommended MOD and needed 60 day non payment to approve. That created default allowing it to purchase back from Freddie Mac, a now defaulted loan for pennies on the dollar.
    4) BAC did not contact me or send me billing statements for six months immediately after modification while billing unwarranted fees unknown to me.
    5) Requested payoff to sell home to cash buyer. BAC sent me fax with inflated and erroneous fees . BAC refused to give immediate explanation ,losing sale $300k above recent value.
    6) Filed false and misleading foreclosure doc in the county records, over a $2093 force flood insurance that was duplicate, which they admitted. That defamation injured my reputation in my industry that earned my well into the six figures over the last 25 yrs.
    BAC voluntarily dismissed foreclosure to avoid future litigation. I’m sure.

    It”s 3 1/2 years of abuse and deception and I’ve been around the industry for 30 years. 99% of the borrowers won’t have a chance against the deceit and fraud. Your work is great and feel free to contact me. I have three more like this with just as much deception.
    Lasalle Bank v Montwill, Lasalle was defunct entity at time assignment from another defunct entity without a lic. Great stuff.

  5. The reason the banksters use robo-signors is obvious, at least in regard to assignments of dots. The assignments weren’t done from a to b to c to d. We know this. (and we’re pretty confident the endorsements weren’t done on the notes, either, as applicable) Where learned opinions vary is whether or not the assignments need have been done, even if not recorded. Taking my view, which is that they did needed to be executed even if unrecorded (and thus now in a better-late-than-never scenario, must be produced and recorded in f/c actions), it may be too late to execute them, for one, because some of the companies whose autographs were and are required are out of business. Plus that is a lot like work, work which should have been done as the events allegedly occurred, but wasn’t.
    Why chase after 3 assignments when hiding behind MERS and its phony straw-officer network still works in most cases?
    Mr G is right. The evidence of the failure to properly insure these loans made it to some trust or were otherwise handled with any legitimacy is demonstrated by the banksters’ reliance on misdeeds. ‘Call anyone, anyone at all, a v.p. of anything, anything at all and send in some declaration in lieu of proper evidence.’ These declarations aren’t worth the paper they’re written on and the signors are entitled to zero credibillity. Problem is, the homeowner has to make that case, or the lying, bs-laden declarations are taken by courts as factual.
    Object. Everyone must object to these declarations and demonstrate as necessary the utter lack of credibility of the declarant. Attacking credibility seems to be the ticket. The appointments of these robo and other signatories are being done, if at all, in the name of MERS by its members. Why? Because it’s all they have, all they can do, because there is no one who has the real authority to do them. And that’s the truth of why they must continue to rely on “MERS” and that’s why MERS HAS TO GO.

    As to why one robo-signor is executing documents in so many roles, well, saves time and money, right? By and large they are getting away with it, so why spend the dough on multiple signatories?
    I’m a criminal and I know I’m going to get away with it 99.9999% of the time, so I am not going to bother with agency, poa, or other costly and time-consuming efforts. Even if I lose one here and there, it’s a small price to pay compared to what I should do all the time. I’ve scammed my way to this point (I haven’t had to prove my own rights / interests), so knowing that courts will only care if the homeowner is himself in default, why should I do otherwise?

    Why courts find the answer to that singular querry – did you pay? – dispositive of strangers taking our homes is beyond me. In NO other contract-based litigation would that be the end, or even the beginning, of the querry. It’s like the judge (Dennis Blackmon) said in that recent (HAMP) case in Georgia, it is up to the COURTS to now protect American homeowners.
    Even if we can’t prove something up front, we can still frame our arguments in our pleadings in such a fashion that a judge is ‘compelled’ to see that he or she simply does not have the information to make an
    informed decision about interests in our homes, and one of the things necessary to do this is the essential assault on the bankster’s lying declaration. These declarations must not be allowed to stand as evidence.
    Courts also need to be informed that when U.S. Bank as Trustee, say, is the alleged trustee for an alleged trust, that it is not U.S. Bank at all. It is an unidentified, probably non-existant person or entity calling itself
    “U.S. Bank as Trustee”, while using the name U.S. Bank with purpose.

  6. There are so many lies out there it is a maze to dig through. Legal assistance is unaffordable, the banks are liars and thieves and the government is paying them to default. However, if we default, do we get paid or get any consideration at all, given our circumstances? No, is the answer. These Bankster’s have deliberately done this and get bonuses and adulation for fraud, forgery and sheer incompetence. e.g. Freddie and Fannie…7.8 billion requested for the quarter, while running the company into the ground and getting bonuses from an insolvent company? Where can I get a job like that? This stuff is an outrage.

  7. spread the word

  8. Neil,
    I have been waiting for an investigation (ordered by President Obama) to be conducted through the US Dept of the Treasury and HAMP of my loan servicer regarding my denied loan mod in 2009 in which a “false” default was created in order to facilitate and hasten my demise…I meant foreclosure. I just recently got a letter back from the loan servicer saying, “The securitization that owned your loan is not HAMP participant and therefore you were not eligible for a HAMP modification.” (Gee…ain’t that sweet?) I would venture to guess that NONE of the Trusts are HAMP approved, so with that being the case, no securitized loan could be given a HAMP loan mod based on this information!

    What this “Securitization Phenomenon” seems like is that we must choose which version of the “TRUTH” we are going to believe: the REAL truth, the FAKE truth, or any number of the HYBRID truths! Another way to say this is: “Which set of LIES behind which curtain do you want: curtain #1, 2, 3, 4, or 5…or…” The letter I received did not answer any questions. It succeeded increasing dozens more!
    Thanks Neil, for all you do to keep American Homeowners abreast of the latest developments in this Foreclosure crisis!

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