Amnesty for Banks: Call Your Attorney General Today to Oppose Mortgage Settlement


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EDITOR’S COMMENT: The proposed AG settlement is virtual amnesty for the Banks. For a tiny fraction of what they have stolen and are still in process of stealing, they get away with the largest economic crime in human history. This is crazy. Let Obama and all your representatives and Attorneys General know you oppose it. The housing problem simply will not end until the truth comes out and we start dealing with the reality of the fraud committed by the banks.

Call Your Attorney General Today to Oppose Big Obama Push to Get Mortgage Settlement Deal Done


We put up a few more stories on the mortgage mess tonight for a reason. It isn’t that we had a sudden explosion of new information on mortgage abuses. It is instead to remind readers that we could turn this blog entirely over to covering mortgage chicanery and not even scratch the surface.

And the latest bit of corrupt behavior is that the Obama administration has a full court press on to push the heinous “multi-state” settlement deal over the line. We’ve pooh poohed previous reports from Iowa state attorney general Tom Miller that a deal is just around the corner, since he’s been doing his variant on a Chicken Little act for a full year. But it appears the President wants a talking point, ideally for the State of the Union address or as shortly thereafter as possible.

So this time is different: the administration is putting far more pressure on the dissident and skeptical Democratic attorneys general. And precisely because Tom Miller’s efforts have appeared to be going nowhere, particularly after California AG Kamala Harris left the talks, the grass roots effort to oppose the talks has slackened off. The lack of active opposition leave the AGs feeling more exposed, particularly in light of often misleading press stories (for instance, the Wall Street Journal implied over the summer that Harris was wavering when all it was doing was repackaging stale information under a new headline). Similarly, the Administration is ramping up “a deal is almost cinched” reports with Obamabot news outlets like NPR. This is a classic deal/salesmans’ tactic: to create the impression of momentum when there is fact is often none.

The Democratic attorneys general have been invited to meet in Chicago on Monday, and Shaun Donovan of HUD and a member of the Department of Justice will be putting the heat on. The Republican AGs are getting the same documents the Democrat AGs will receive and will confer by phone.

We posted that the Democratic AGs unhappy with the deal has actually enlarged, with 14 apparently meeting (a Huffington Post story said “up to 15″ and we gather that Oregon and Montana participated in addition to the dozen named. However, only 5 so far have officially left the talks: New York, Delaware, Nevada, California, and Massachusetts. In addition, there are at least four Republicans who have said they will not join in any settlement.

Here are some of the reasons to oppose a settlement:

1. There have been virtually no investigations, and the Administration has engaged in cover-ups rather than trying to get to the bottom of the mortgage mess

2. The big argument made in favor of the deal, that it will help borrowers, is patently false. Remember, Countrywide entered into a deal with attorney generals just like this, where they agreed to do mods in return for a settlement on abuses. Guess what? They didn’t do the mods. To add insult to injury, they actually abused homeowners who should have gotten mods. Nevada AG is suing Countrywide now over its failure to comply with the terms of its settlement. And even if some mods miraculously did get done, the settlement is designed to have banks hit a dollar amount. That means they will focus on the biggest loans, which means any relief will go to a comparatively small number of people in (originally) big ticket houses.

3. The Administration has only one chance to get this right. Now you might argue that Team Obama has no intention of getting the mortgage mess right, but the tectonic plates suddenly seem to be moving in elite circles. The Fed realizes that housing is a BIG problem and has even started making noise about it. Yet Obama is moving forward with a plan cooked up in late 2010 that is completely out of whack with the urgency and severity of the problem. Note that this settlement will NOT stop private actions, such as borrowers fighting foreclosures. And we will continue to banks refuse to take losses and drag out foreclosures to maximize fees. That will lead to continued pressure on housing prices in many markets as buyers stay on the sidelines, fearful of buying before a large shadow inventory clears.

Leaving the AGs free to investigate and increase the pressure that is already building up in the system is the best chance we have to deal with widespread fraud.

The attorneys general really need your support. It helps them to hear that their constituents appreciate them standing up to the banks and the Obama administration.

PLEASE call them TODAY. Here is a list of phone numbers. If you can’t get through, send an e-mail.

Please also sign this petition from Campaign for America’s Future (it has some talking points if you need them for the AG calls). Note you can opt out of being put on their mailing list (I know that has been a sore point with some past petitions). I know it is futile to ping Obama, but they will collect the number of people who sign, and that will in turn bolster the dissident AGs.

Please call today. Unlike Congresscritters, who get a lot of constituent mail and phone calls, AGs get much less in the way of messages from state citizens, so your calls will make a difference.

Thanks for your help.


13 Responses

  1. actually got a call back from the AG’s law department that is taking call on this crap …quite surprised and stated such to him and he kinda laughed and he listened ad stated this is what they are there for. so I will now call the chief of staff, the chairman in opposition of the now AG and the head of consumer protection division so onward and upward or downward as it may really be. I had rather start at the top regardless. Hummmmm is this just lip/ear service and will it do anything, not sure but the ex AG of Ohio seems to thinks so an I will go with it . It is worth a try to just speak out and speak out a lot. Got to hold the feet to the fire, the AG can only do so much and the banks do not have to answer to the states at all so time to change this somehow some way. Pick up the phone pick up the pen lay hands on the key board and bring it on. Neil is very correct they need to hear from US!!! We are the ones that pay them and pay them well indeed.

  2. And while I’m at it, I’ll pose this again: is it possible there is such a thing as bifurcation or destruction of a note when it is owned by one party but another party has the right to payments? Not counting
    “securitization”, is this (party A owns note, party b has right to payment) a dynamic which otherwise literally and legitimately exists in other personal or business arrangements? I guess it would do no harm to the integrity of the note if one party owns but another has right to payments. But what about enforcement under such a dynamic? Only the note owner? Can a note owner under the UCC
    sell the right to enforce without selling the note itself?

  3. It does get frustrating when we’re on a roll and the latest spectacle comes up as a new post and off we go. I don’t know how that’s avoidable given the value of most ‘latest spectacles’ about stuff we need to know generally. The time I thought was the worst is last year when at least I thought we were making some headway on WHO owns the stinking notes, even if everything were done properly and they made it into the trust.
    Thread was abandoned, end of that fact-finding of an issue which underlies and may be dispositve of everything, everything else.

  4. @Joann,

    Didn’t you also say something about being in CA?

    I was just reading something about it. The reason CA is so tough is because of a fairly recent rule forbidding attorneys from taking anything up front and putting all kinds of roadblocks on them for wanting to help homeowners.

    Nothing happens in a vacuum. The most populous state in the US and also the one with the most foreclosures is also the one where the most roadblocks have been put on homeowners trying to defend their beef. Disgusting but not accidental…

  5. @Joann,

    I had the same problem: how to get back to old Livinglies articles?

    Get yourself enrolled in the automatic update whenever something new has been posted by Neil. It becomes a “new” post and a new mail for you. As soon as you open that mail, it then becomes an “old mail” but it stays in your old mail in-box as already read for a long time. Then, you can recall and go back to it anytime. Ot, if you can’t keep old mails long enough, save Neil’s old posts in your “saved mail” box.

    Actually, I opened a different screen name just for it.

  6. @johngault

    “Wonder why banksters often spew forth the same bull in their pleadings ? They’ve got “Hot Docs” and NexisLexis’ “TimeMatters” software programs. Probably costs a lot and they can afford it. How nice for them!”

    Thanks for link to your articles by the way. So well done! Glad you weighed in on Eaton. Hope you keep it up.

    Don’t know if you will see this (and I thought of a different question to run by you some other day perhaps) because these articles drop off the front page so fast sometimes and almost impossible to get back there…

    Wish there was a big pro se network that could buy up this stuff and more, pacer, bloomberg ect and provide access with a log in. We could start “spewing” the same “non-bull” in our pleadings. I hate to keep saying this but most by far cannot afford attorneys (except the ones who don’t know they need attorneys who are still paying on time) and in some states (the ones where you are forced to sue or passively let the house go) even if you have the money to pay an attorney most if not all attorneys will not face the guys up above over the issues that get to the root if they even “get it” at all. It’s all about negotiate-broker mod and settlement over servicer procedural and sevicer billing errors or expired TILA predatory ect. using bankruptcy mostly. Stuck on free house and stuck on judges who see free house. No other business deal would be shoved under the rug the way fraudclose is.

    Who’s the modifier? Who’s the mediator? Who’s the forecloser? Who’s the creditor-beneficiary? How much is owed him? Identify him beyond a shadow. No free house – just hand over the accurate biling from the real guy. Then pay hime or let him take the house. This ought to be determined first- not last – Is it too much to ask? (The law does provide this if anyone can dig it out and actually be heard in court even if ignored. More ought to be on the record that they spelled it out plain as day even if they lose).

  7. NG et al take note: Reuters does a story questioning AG Holder’s connections to MERS and the large mortgage servicers – the same companies he refuses to investigate. Instead of equally applying the rule of law to protect consumers, he’d rather be the mortgage industry’s (and MERS’) cheerleader encouraging state AG’s to simply ignore the rampant frauds and instead grant amnesty to his past (and future?) clientele.

    Story at

    Abigail Field has also (and previously) written extensively on the subject of rampant conflicts of interest in the Obama Justice Department when it comes to policing the large mortgage servicers and MERS.

    When will (or simply, will?) President Obama clean house in the Justice Department?

  8. Wonder why banksters often spew forth the same bull in their pleadings ? They’ve got “Hot Docs” and NexisLexis’ “TimeMatters” software programs.
    Probably costs a lot and they can afford it. How nice for them!

  9. I got any idea. Why don’t I get my hands on some cars and try to sell them as the alleged agent of the dealer’s alleged poa of its alleged agent? Then I’m gonna also allege in the bills of sale to my buyers that the funds are due ME for the cars. Why in the world would it be so easy for a judge to recognize my scam and legal ‘shortcomings’ when that same judge sees no scam or shortcomings in documents related to real property and foreclosure? No evidence of poa or agency =
    no right to act.


  11. Oh for Pete’s sake – settlement will ‘help borrowers’? Is that what these Wall Street et al rat b’s claim? Mers claimed it was going to help make more funds available to borrowers. How’s that working out so far? Here’s what MERS really helped if not formulated:


    Not to mention Quality Loan Services purported that it might to be acting as the agent of the beneficiary, not the trustee. There is no end to this nonsense. This is from a NOD recorded in 2008:

    “NOTICE IS HEREBY GIVEN; That Quality Loan Services Corp. is
    either the original trustee, the duly appointed substituted
    trustee, or acting as agent for the trustee or beneficiary under a
    deed of trust……….to secure certain obligations in favor of
    MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE FOR BARRINGTON CAPITAL CORPORATION, as beneficiary, recorded……securing, among other obligations including 1 NOTE(s) FOR THE ORIGINAL SUM OF ………., that the beneficial interest under such Deed of Trust and the obligations
    secured thereby are presently held by the undersigned…….

    Quality Loan Services Corp., as AGENT FOR BENEFICIARY
    BY: Fidelity National Title Insurance Company

    By __________________________
    Jesse Vewley

    And where is the evidence FNTIC has authority to act for anyone?
    It’s not in public record and no agency or poa was mailed
    to the homeowner: WHERE is it? WHERE is this mandatory Notice?
    A document concerning real property is void or voidable if there is no record of the alleged agency or poa for anyone to do ANYthing. That’s why title companies record legitimate agency or poa agreements. This NOD states the obligation was owed to MERS, regardless of any gibberish that that’s not what this says. Where did they get these guys who craft these documents? Same pool as the robo-signors? But then, taken as written,

    “that the beneficial interest under such Deed of Trust AND the
    obligations secured thereby are presently held by the

    this document now purports that QLS is owed the obligations and
    has the beneficial interest in the deed of trust. This is hard to
    believe, but it really is from an actual NOD sent and recorded in
    2008. What does yours say? If its says this, it’s a false
    instrument, a false uttering, and imo is grounds to sustain a
    wrongful foreclosure if not conversion or theft of real property action.
    This is how it should read imo as to the “undersigned” – who is NOT
    owed the obligation and does NOT have the beneficial interest in
    the deed of trust. Or DOES it? WHAT IS GOING ON HERE?*

    Quality Loan Services Crop., Trustee

    By _______________________
    Fidelity National Title Insurance Company, as its duly authorized Agent (or poa)
    by John Smith, its Secretary (or some title)

    (and this is exactly how the notary must be stated – if not, it’s defective)
    This document purports first that MERS was owed and then the ‘undersigned’ IS owed the obligations secured by the deed of trust, neither of which is true. It’s a false instrument, also inappropriately signed and notartized, and it appears even worse games are being played by these imo criminal recitations.
    As to the rest of the post and what’s gonna “help us”, I’m going to call my AG allright.

  12. Surely you do not think that the AG’s are interested in helping the homeowners. If they were, then they would have all that they need now to move ahead with prosecuting the banks. This is a false hope for the people and it seems to me that it does nothing more than continue to compound the pain that goes with losing your home and then losing it because of what I believe should be considered grand theft. I am not aware of what actions the AG’s have taken to properly prosecute the banks, but it is clear to me that literally thousands of homeowners have attempted to file suits against the lenders and the evidence is documented in the court records.

    Why is it that the AG’s do not pull those court records and have the lenders and their servicers prove that they are not committing fraud or wrongdoing. Judges are absolutely overlooking the evidence but are not explaining to the homeowner why his evidence is not acceptable to prove his case. Seems like the AG’s either already have the info but do not want to take the necessary steps to get it out of court records.

    I may be wrong, but the evidence is there, the AG’s just need to pursue it and then make a deal with the judges that they too have to follow the rule of law and give justice to those homeowners who have been wrongfully foreclosed or wrongful actions taken against them.

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