Nevada AG Asks Pointed Questions to DOJ and HUD


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

See Full Letter from Masto to DOJ and HUD Here 1-27-12

Hawaii did it, Nevada did it and now other states are doing it. Seeing the devastating effect on the state economy and the ensuing effects on the nation’s economy and the world finance, State Attorney generals are taking matters into their own hands, and pressing the points that hurt. The Banks don’t like it because it undermined their narrative. This year, 2012, is the year when most of the truth will come out and it will blow your mind to find out just how pernicious and pervasive this false, faked, securitization has been.

The number of foreclosures has plummeted in those states that have put up a fight. Why? Not because they were banned but because those states that require proof of authority to foreclose, proof of the accounting and the proof of settlement or the ability to mediate, have all but eliminated foreclosures. Now the question is how do we correct the corruption of the the title registries, get people restored to their homes and force the pretenders to compensate victims of fraud, forgery, and outright theft.

Catherine Cortez Masto has mastered the basics of securitization and she, like Beau Biden in Delaware, Schneiderman in New York, Coakley in Maine and others don’t like what they see — corroboration of some of the worst nightmares of conspiracy theorists.

It won’t be long before the investigations get traction and start picking up steam. Indictments will follow but not for a few months, at least.

You will hear words from these prosecutors that you never thought you would hear about the banks conduct, the transfer of wealth through theft, and the commission of crimes  too numerous to list here. As the momentum picks up, you will see thousands convicted, jailed, defrocked from their law license, notary license, appraisal license, title license and even the license to do business in the states where they thought they had a lock on the whole thing. People are wide awake right now and when Americans awaken, things happen fast.

Here are some of the more important questions and my comments that were posed in a recently released letter to Thomas J. Perrelli at the U.S. Department of Justice and Shaun Donovan as secretary of the U.S. Department of Housing and Urban Development. It would be a good idea to take out those template discovery forms you have for clients and start your revisions. Stop assuming that anything the Banks said was true and start assuming the everything they said was false — including the losses they claimed to get the bailouts.

  1. What origination conduct did the federal agencies not release? [That’s not my question, it is Masto’s question. This is a direct frontal assault on the complicity of the Federal government in the mortgage mess. Inherently it addresses the issue of whether the origination process violated law, rules or regulations and whether there is a valid lien on most properties that were financed with investor money.]
  2. The State release refers to “…brother and sister corporations…” Please provide some clarity as to this particular phrase as used in the state release. [Masto is not going to be papered over by vague wording that could mean anything. She wants to know what went on. Where did the money go, and who were the parties involved?]
  3. The State release contains a provision that prevents the State AG’s and banking regulators from seeking to invalidate past assignments or foreclosures. Does this prevent States from effectively challenging future foreclosure actions that are based upon faulty prior assignments? [Masto nails it on the head. First of all this is AMNESTY for the Banks who committed crimes and want the government to ratify the crime since the government was complicit in allowing, creating and promoting the crime. It does nothing to clear up the title problems that currently exist or that will exist if the faulty assignments contain not only forgeries but fabrications of the truth of the transactions inherently referred to within the instruments.]
  4. Paraphrasing Masto, when will the results of existing investigations be made public — or do you want us to take your word for it that there are or are not weapons of mass financial destruction still hidden in the pile?
  5. Paraphrasing Masto, how will we be able toe enforce the new servicing standards or are we taking the word of the Banks and servicers who lied to us consistently up until this point in time?
  6. Paraphrasing Masto, how and when will consumers get relief if they were victims of fraud, chicanery and theft?
  7. Under what circumstances will the Monitor be able to access servicers source documents, i.e., the documents that form the underlying basis for the work papers? [Of course Masto knows that she will never see the source documents because they would contradict everything the Banks and servicers have said up until this point, one of many reasons she will not participate in the multi-state settlement.]
  8. What kind of data will the monitor be able to demand regarding the allocation and performance of servicers’ modification/other consumer relief? What compliance or enforcement provisions address the Monitor’s and States’ ability to enforce the consumer relief provisions? Before the claim of securitization of mortgage debt that never in fact was completed, there were simple formulas to determine whether the workout was good or bad for the lender. Now the servicers are using excuses like “everyone will do it” if they accept modifications, even though the proposed modifications i results in proceeds that are much higher than the results of foreclosure. So the real question is whether the consideration of modifications requires (a) authority and (b) no discretion if the proposed modification exceeds x% of fair market value of the collateral. If accepted, this change would have eliminated 2/3 of all the past foreclosures and 90% of the future ones.
  9. Please explain the assumptions on which the settlement value chart relies. It describes a maximum expected benefit; what is the minimum expected benefit? Can we get a range of values for each state.? [And what data exists showing the true liability for false, fraudulent, fabricated loans and foreclosures to compare with the settlement?]
  10. Paraphrasing Masto, how do these detailed formulas actually work in real life? What will be the effect on blighted areas and how can we as AG’s determine what risk is associated with acceptance of an agreement in which the probability of millions more foreclosures will take place under false pretenses, only to become abandoned property?


30 Responses

  1. Here’s your feedback: I paid Maher $5k to be my ‘expert witness’ in a foreclosure fraud case. He assured me I could get my house ‘free & clear’ after the court heard ‘bullet proof’ testimony. He gave me his resume of ‘qualifications’ and a list of cases in which he testified; which I filed with the court to use him as an expert witness. There was a deadline for him to provide a written narrative explaining ‘what’ he was going to testify to in my case.

    He never provided it and the FEDERAL JUDGE DISQUALIFIED HIM as an expert witness as he had provided phony court case numbers (which I had filed with the court; putting me at risk of filing false information into a court case….!). He then changed his mode: saying the ‘judges don’t understand his argument’ , they’ve been briefed by the State Department to ‘beat the homeowners and ‘no-one wins’. He refused to refund my money, and is using ‘3’ different emails and just changed his cellphone number (again). If any of this is ‘false’, let me know so we can serve you our summons and get YOU into court…!!!

  2. John O’Brien letter to his AG Martha Coakley–feb 2, 2012– urging her to not sign the foreclosure settlemetn

  3. @iwantmynpv.

    Ha ha! yes, things jump around a bit, but the subject of my post was would you write a book, fully explaining how this scheme was pulled off, and outlining the progression of events in the securitization farce, from the perspective you see it from, in your line of work which is I guess, accounting? People like you with specialized knowledge could help the rest of us get a grip on what is still pretty foggy, if you put it in chapters set in a timeline. No accounting book I can find has a background in Wall street criminal activity, and books like 13 Bankers by Johnson and Kwak leave me still scratching my head. Just sayin’ it would be a best seller because I can’t find, Theft by Securitization;The Story of The Greatest Scam in History, on any bookshelf.

    I don’t think influenza is what you should be worried about, my friend.
    The New World Order or technically the monsters behind it is what you need to bone up on. There are videos of people, many of whom have been murdered for speaking out, on youtube that explain the Globalist’s agenda is to get us all microchipped, herded into cities of 200,000 meters where private transportation is not permitted and have complete control over us. Not makin’ this stuff up. They want to turn America into a wilderness except for these concentrated centers of population, and then kill off all but 500,000 humans–just enough to do the work–whom they will be able to force to labor for them or die for resisting. Those are not liners in the FEMA camps, they are coffins. Each FEMA camp is outfitted with GUILLOTINES. They have already trained a number of military personnel to operate them, but they haven’t told these men that they will be ordered to behead their own citizenry; they think the FEMA camps are for prisoners of war.

    The vaccines we have been given are to destroy our immunity, not build it up, and everyone who knows that a virus is capable of mutating faster than we can develop a shot for it, has already questioned why they are trying to coerce everyone to get a flu shot. The doctors children aren’t vaccinated, and neither are the doctors. They know that the vaccines are a method of population control. There is monkey, dog and swine dna, cancer virus, mercury, thimerisol and other terrible things that are not intended to do anything good for our health. The agenda is to have a ruling elite with a small workforce, to control all the natural resources, and recreate an Eden for themselves alone to enjoy. I believe our Creator will bring judgement against these truly sinful and evil plutocrats, and cast them out of the earth, much like He destroyed Soddam and Gamora in Lot’s time.

  4. Sorry everyone. My computer didn’t tell me there was a virus. Time to go and have it cleaned up… again!

    Thanks Kathy for letting us know.

  5. @ Enraged
    The Link below that you provided has a virus attatched to it. Be careful Everyone.

  6. The thousand-and-one ways to sell… money!

    Just got some advertizing from an outfit called American Home Value Protection Insurance Agency. Apparently, if I agree to pay $47/mo, they guarantee the value of the home at the time I purchased the insurance. So, if I decide to sell and I lose on it because the value went down, they compensate me for the difference. Ot so they say…

    Now, of course, I am held hostage for 2 years after I sign the contract, to prevent “flipping”. Meaning that I can’t sell for that long (the idea being, of course, that in 2 years from now, the values will all have gone up and the insurance company won’t have to pay a cent to anyone and will have pocketed upwards of $1000 a pop for… pure profit! Or… they can go bankrupt in 2 years if too many people file claims all at once ‘cuz values kept on crashing. That’s ok: the tax payers will indemnify you. Isn’t that what we always do?)

    Groovy! I tell you what: rather than come up with all those elaborated and brilliant schemes whose result are always the same (take my money one way or the other), why don’t you just come to my house, grab everything I own and throw me in some place where you can have me break rocks for food. That way, you won’t even have to pay me at all and all you’ll need are a few machines to cook some high-energy, hypervitamined, tasteless porridge to keep me going and going and going and going… And I’ll die a happy little pink bunny.

    Because, really, the end result is the same: you want me to work, work, work but you certainly don’t want to spend one cent on me, right? Better yet, did you consider doing away with humanity as a species?

    What a great country!

  7. @etolle, I think you misinterpret my true feeling. I was pointing out the fact that you are telling me to write a book and also telling me about death camps. I am more concerned that the book writers are the first to make their way to these camps. I’m brave, but I need to know the in-between.

    For example, will I be writing the entire book from the camp, or just finishing up the final chapter? LOL

    Also, are you suggesting that this new flu strain is being introduced with the current shots for tolerant introduction, or are you saying that we have a fifty-fifty shot regardless of how we receive the mutated receptor. This subject is not business for me, just interested in the subject matter because I know the folks will not stomach another war, and the best job creator throughout modern history appears to be the elimination of the folks that have and do not have employment creates many open slots.

  8. @foreclosureinfosearch,

    That’s what I call “nebulous”…

  9. Maher Soliman is A Fraud

    Here we go again with the latest Maher Soliman Scam Report and M Soliman Rip off Report. People, help me and let me know your feedback. Here are excerpts from my testimony from the defaulted title holder’s misguided efforts that are sure to result in an obstruction of justice claim. This guy gave himself away and promised me he would bury my efforts in Fderal Court as he did to another attorney through a phillipines internet marketing firm .

    -From testimony –

    Dear Counsel

    If an attorney cannot grasp my arguments, brought from 25 years of secondary and capital markets experience, these arguments, then I understand and expect to be dismissed. The consumer looks at the fee he or she paid and next —we see the occasional Maher Soliman is a Fraud and Rip off report.

    In my report Counsel, I ask again for you to address the following—
    Q) Why is the Seller into a SPV or LLC setup as a not –for-profit allowed to “sell assets” that show no assignment. By its own admission in certain documents it details where Bank of America and not the originator Countrywide Home loans Inc, did in fact assign the mortgages early on!
    Why would the attorney not address the missing assignment and allegations prima facia for a de-facto?

    Q) The HUD -1 settlement statement shows CWHL Inc receiving exactly two percent of the mortgages origination balance. Unscrupulous lenders cannot over charge solely to pay for their “skin in the deal” which is two percent of the loan.
    Why does the attorney not consider the 2% “haircut” required of CWHL Inc to fund the mortgage as required by the BofA the alleged warehouse lender?

    Maher Soliman is a Fraud or being called a fraud by someone out there who is in cahoots with this latest round of the Rip off Report. This guy and his attorney went out of their way to report me to a Scam Report.

    Q) The borrower is held to an instituted constructive trust and the borrowers are are entitled to file their own claims for preclusion against creditors preference. There is no discretion in jurisdiction in a claim of misappropriation in a constructive trust.

    There is no remedial common law jurisdiction over the matter.

    Q) When the lenders and its securities affiliates convert the mortgage into an equitable interest, the debt is vacated as if the loan were satisfied. The law is clear in an equitable jurisdiction whereby debt is settled equitably in debt. Equity, if it can be shown how the mortgage converts, is settled as a SALE. Foreclosure on bare and legal Title is a difficult proposition and least to say open to a motion for consideration of a judicial proceeding.

    I have asked attorneys to raise this argument and in two instances the lender has voluntarily elected to pursue a judicial proceeding. In one of the cases the lawyers for a foreclosure mill hired counsel who is Dean of a major university law school.

    I always prepare a general ledger to show how the Derecognition causes the mortgage to offset the “sham” warehouse line amongst “de-facto”. If I am correct, that would leave the wire that is received into settlement as the only remaining asset where the mortgage and warehouse line offset one another to a zero balance.

    Q) Why do I believe this is the case and what we are seeing… Look who is foreclosing. In the majority of these cases where the isolated bankrupt insult entity, the LLC sponsoring the registration is the Bank of New York. The BofNY is the district branch for the FED who wires out onto settlement. If this is correct and the general ledgers that track the cash do not lie, then the notional value of the note is left over. The notional value is like an annuity and …… they are foreclosing on a demand and repurchase!

    Q) Anyway, the Bank of NY is foreclosing as a trustee while the assignment is to HSBC Bank, HSBC Bank is a foreign National Bank that is a friendly non depository bank in the domestic member bank scheme. Since CWHL Inc is a defaulted entity and BofA is lost to the Toxic Assets, and since the two are alleged acting as a de facto…and we allege the mortgage in default is lost to divestiture as described earlier herein and above.

    Q) Therefore the claim brought by HSBC by the Trustee who is the “Bank of NY” makes sense. Why? The US Bank is part of the US subrogating the claims of the foreign national bank whereby Depositor has pledged its ownership in trust common shares for issuing a five year Bond. The bond is the residual interest held by the defacto and now deemed a Toxic Asset.
    In a situation like this I look to you, the borrower as a “party “incidental” to the contract used to extend the mortgage lender to a principal debtor. As a principal debtor the mortgagor “you” becomes a surety.

    Q) Does a surety always maintain a right to be subrogated and has the right to subrogation over the principal debtor? Why are they entering the bankruptcy court a “creditor”?

    Q) Do you agree, that here is where the attorneys acting under the FDCPA run a real risk of being found having obstructed justice. I consider the FDCPA, a last ditch effort to reattach the lost color of title. It’s no less concealment, alteration, or destruction of documents, or encouraging or giving false testimony.

    After the corporate accounting scandals of 2002, Congress passed the Sarbanes-Oxley Act, prohibiting criminal obstruction of justice as it relates to the corporate world and the FDCPA is not going to cause immunity to prevail over a fraud brought by an officer of the court. Where they actually bring in the promissory note.
    Statement –

    Attorneys and their clients won’t let go of the Robo Signature or gibberish about the Americas Wholesale Company not having been registered as a corporate name. And the QWR is your worst enemy –corroborating something that is not what it appears! But the real problem I see is the POOLING AND SERVICING AGREEMENT that attorneys’ are relying on and people are purchasing in sham audits. The real agreements are a condition precedent for alleviating the assignment and to detail contribution for purposes of …you guessed it. “Contribution” governed by the prohibitions of FASB and IASB including ASC 320 and FAS and SFAS 140-3 under GAAP. The Pooling and servicing agreement is a simple recital for a bunk warehouse agreement – it’s killing you people.

    Just over these last 8 weeks:
    – We have had a Unlawful Detainers cancelled and the entire foreclosure rescinded.
    -Arguments before the New York Supreme Court for a motion to reconsider a default and foreclosure over four years old.
    – We are amending the complaint defeating motions by the oppositions and foreclosure mill (who hired the Dean for the University in aforementioned discussion).
    – Great response from the courts in opposition to foreclosure while alleging a highly oppressive “non-transparent, false rationale, in these “Cyber Foreclosure”.

    The bottom line is pleading the matter of title and demonstrating where the lender has lost the least color of title. The matter I testified in before the California court of appeals was remanded back to the trial court in a deposition whereby the opposition had to rely on the fact they committed a fraud to eventually recover. (Arguing procedure to prevail in the end –under the statute of limitations).

    The significance of that case was the opposition hired a Top Gun from Wall Street who corroborated everything I said (maybe that is what really persuaded the justices).

    When these attorneys call Maher Soliman a fraud and sell their Clients on this – – – its obviously hurtful. It is also an obstruction of justice where any interference with the orderly administration of law and justice, and the laws are designed to protect the integrity of proceedings before the federal judiciary and other governmental bodies and agencies.

    I have six engagements going to trial in Federal District Court.

    In order to be convicted the government investigation must prove that the obstruction of justice was directed toward a pending federal judicial proceeding, that the person knew of or had notice of the judicial proceedings, and that the person acted or attempted to act corruptly with intent to obstruct or interfere with the proceedings. His individual and his attorneys want to obviously make sure they did not err (calling an expert a rip off artist) and have told me they will make sure I never testify in a district court again.

    Maher Soliman is a Fraud or being called a Rip-off by attorneys in this latest round of the Rip off Report. This guy and his attorney went overseas to post traffic on the Scam Report. Mistake – It is crime to tamper with a witness, such as intimidating, threatening, retaliating or using physical force toward a witness for the purpose of influencing, delaying, or preventing the witness’ testimony.

    This latest Maher Soliman Fraud movement is alleged coming from a contract with a Philippines internet advertising firm that’s been hired to take over the search engines with this foul and misaligned approach by this crazed client and his northern California attorneys.

    One of his attorneys dumped a client I gave the same counsel who after a year of preparation, abandoned the case the night before the hearing.

    The client and title holder won with prejudice. Another attorney was in a Chapter 7 hearing and looking at a document the Judge was given that was a Lender deal killer!

    The Judge said – anything I should note before I decide to dismiss the debtors claims release the collateral to the creditors? Title holder and debtor’s attorney…No judge – that everything.

    Maher Soliman is Not a Fraud

    Not an attorney — only an attorney can advise you of your rights.

  10. @ npv, “write a book in one post and death camps in the next post leaves to much in between for me”

    Kettle black called. Maybe stick to CDOs? Your rant on an epidemic was scientifically sieve-like, akin to Lohan’s story of why she woke up under a table instead of at one. And that was quickly followed by your thoughts on national associations, so there’s a fair bit of turf in between those two thought processes as well.

    The H5N1 strain that is currently threatening a comeback in the far east has a 60% mortality rate, and all that it’s lacking is a genome switch. If that were to happen, let’s just say Neil’s blog would get eerily silent. This is a novel strain, never before seen by man, so the only way you could grab any “immunity” would be by exposure, which sets you up for a way better than 500 game at succumbing. Feeling lucky?

    If you hang around here for a while, I think you’ll find that most here are on to the stacked odds in the game of securitization, be it credit cards, autos, or the payday mafia. You’ll discover that most of us intend to take them all down in short order. That is, if we don’t get all warm and achy first.

  11. It is Martha Coakly AG of Ma. not Maine
    You all HAVE TO READ Marie MacDonnells brief sent to the Ma. Supreme court.
    It spells it all out.

  12. @ nora, write a book in one post and death camps in the next post leaves to much in between for me. I saw this whole video of what was disclosed as casket liners on land rented by FEMA (alleged). If they are casket liners – why do they have covers / lids?

    This is definitely not the site to ask these type questions, but I am intrigued as to what people think about little issues that my sick mind delves into during the “wee hours”.

    Has there been some major flu epidemic that I missed? Why is every store offering flu shots? Is it commerce oriented or something we do not know? It seems to that the best way for the body to fight the flu is through original vaccination to introduce it to the immune system. Why are we so steadfast against the body developing its own antibodies to fight variation strains. It seems to me that you are encouraging further mutation away from known strains by allowing the virus to recognize through constant introduction.

    What if we have another major influenza outbreak? What will we give our people? Will this be the next introduction of massive amounts of liquidity? Let me see the history: financial crimes, war, major government borrowing… financial crimes, virus, major government borrowing. It almost appears cyclical with certain industries taking their piece of the tax-pie. But I have come to notice that the two industries that continue to make money during every money cycle are the banks and insurance companies. Defense contractors get their turn, bi pharm gets their shot,but the banks make money issuing the debt-minus cost of funds, and the insurance companies make money insuring the debt.

    What would the world be like without National Associations? The people need to break the debt cycle. We the people cannot borrow personally to expand credit, so the government must. Our entire monetary system is flawed and allowing reserve system banks to expand the supply through derivatives as left us at the point of total unwind. The day America loses the reserve currency status, we either default in the entirety or are indebted beyond the entire globe. That’s right, the true debt we owe is more than the true debt owed by every other sovereign nation (kinda sovereign) on the planet. What would America look like without securitization? No credit cards, auto loans, school loans. This is the crap the throw at us! It is not true. We would simply be forced to wait to get the shiny new car or house like we used to do, discipline. The real folks that would suffer would be your friendly national association, because in the not to distant future, folks are going to realize that the same folks who do not own the mortgage loans also do not own the credit card debt or auto obligations. The money has also been paid into the these master trusts by the investors and the over-collateral tranch / default account remains with the seller bank / national assoc.

  13. President, National Association of Bankruptcy Trustees……………



  14. iwantmynpv

    Will you please write a book? I have saved your posts as little notes, but no matter how many times I try to piece it together, the dog doesn’t hunt.
    Problem is, I just plain don’t know enough about the machinations of Wall street thieves…er I mean traders, to really “get it” as Neil says.

    It would be published–any major publisher would kill to get it, and it would make you enough to retire on, most likely. Get it out quickly enough, and you are almost guaranteed to top the Best Seller list.

  15. @iwantmynpv at 6:47;

    Did you get to see the stacks of plastic coffins and the guillotines?
    Those coffins are short for a reason.

    What about the rail cars with holes to introduce gas and shackles?
    You have no idea how unspeakably evil the shadow gov. is. Check out Agenda 21. Controlling all water and food stuffs makes it easy to poison masses of people, not just starve them. Bad, Bad, people planned these things–no regard for human life! Totally insane.

  16. iwantmynpv,

    I understand about 30% of what you are saying but keep it coming please as I am a fast learner. My gut tells me that in my case Fannie does not have the goods on me (or the note).

    There is a reason that Wells Fargo and Fannie won’t tell me what trust my loan is in because my business sense tells me they are bluffing. Or it is in one of the 1000s of dissolved Fannie Mae trusts.

    Out of 200,000 or more foreclosure cases in a year or so in Florida the banks took 198 of them to trial!!!!! That, my friends, is a bluff. If they don’t want to take a lawyer defended borrower to trial then they must either lose or negotiate. Only way to explain people in houses for 4 to 6 yrs no pay.

    Keep it comin.

  17. @Carie,

    This is an old article showing all the states where foreclosing attorneys have been required to certify documents. Everything started moving at the end of 2010, beginning 2011.

  18. Doesn’t everybody already know who holds the Notes?

  19. That is from 2011??

  20. @ Ann,

    This is truly speeding up in every direction! Ohio saw a 26.6% drop in foreclosure in 2011… as a result of the S.C. order requiring all foreclosure attorneys to certify the authenticity of the docs.

    Foreclosures came to a near halt in Nevada. Now this, in FL. More and more states are requiring that servicers and banks produce the correct paperwork which, as everyone knows, doesn’t exist.

    Who mentioned “momentum”? It was slow coming. We’re cooking!!!

  21. Florida Bar says foreclosure lawyers must report fraud to court

    ByChristine Stapleton and Kimberly Miller

    Palm Beach Post Staff Writers

    Updated: 9:30 a.m. Tuesday, Feb. 1, 2011

    In an opinion that could have unfathomable consequences in countless foreclosure cases, The Florida Bar says attorneys must notify a judge about potential fraud — including robo-signed affidavits and forged notary stamps — even if a foreclosure case is closed and the home has been sold at auction.

    The direction was published in an article in today’s issue of The Florida Bar News as part of an outline in a new free online foreclosure class offered by The Bar. The class is in response to problems that led several major lenders to temporarily freeze foreclosures last fall.

    No one knows how many cases could be affected or what judges will do when they are notified. About 1.2 million foreclosures have been filed in Florida since January 2007, according to RealtyTrac. Investigators for the Florida Attorney General’s Office have found tens of thousands of forged signatures, backdated documents and other problem paperwork at four law firms, so-called “foreclosure mills” currently under investigation.

    “There has never been a problem like this before or this kind of wholesale misrepresentation,” said Margery Golant, a Boca Raton-based attorney who teaches a portion of the Bar’s four-hour online course, which instructs lawyers to report fraud. “No one knows how this is going to turn out or what the right things to do are.”


  22. Private pools can only continue with true capital. Unlike Fannie & Freddie who could sandbag quarters, the worst offenders showed their cards in the pricing model, and thus the spreads started to widen.

    For example: MLSI (Merrill Pooler Bank, SPV, whatever the flavor) they securitized a ton of New Century garbage. The shelf registration was already in so they needed the loans. They had already funded the warehouse line and they were on the hook. New Century and others of the same fetch bank ilk had guarantees that Merrill relied on to close that pool. The donor/ Merill Subsidiary had to feed the investor monies so they needed to close so Merrill the brokerage would not lose billions on the warehouse.

    They would go back to New Century and offer 110 versus 106 to get loans into the pipeline so they could close. New Century would go to the correspondent brokers / glorified lenders and offer the owner 100 basis points on total loan volume for the month to get the loans. that is why many conventional qualified loans would go sub-prime. More money all the way around and less exposure at the end of the line on the warehouse facility, fractional/ balance sheet.

    Now in 2006, the guys who could not securitize direct were getting squezed by Wall Street who opened their own direct retail and correspondent outlets, Primarerica ,WMC, Beneficial, EMC etc.. the monolines saw the liquidity drying and the volume of underwriters going short the pool out of the gate spiked. This caused spread prices to widen and the guys holding everything in the non-accrual pot started dumping the 105’s into the FRC right before numbers and paying the vig to make the balance sheet appear (accrual and swap reserve leverage non accrual).

    The next stage was the push for actual “real”deposits and i noticed the premium for “brokered deposits wen ballistic. NCMC pushed through a REIT to get true dollars in because the private liquidity was drying. Sub-prime rates were pushing 9% on average and folks could not qualify. The investors started raising FICO’s because the credit spreads were getting expensive. Than it happened, the cost to insure jumped and the smaller guys had to eat the measure and to rounds of selling @ 98 – 101 couldn’t cover their cost of funds and they bailed.

    The rest was simple ground work – who was in the market paying up for brokered deposits and the quarterly fed activity told the rest of the story. The bottom line is – when the Notes do not leave the seller banks balance sheet – you must still mark to the aisle (well until FASB changed the rule) and whoever got caught holding the stuff portfolio before the rule change needed big dollars to get the tier one up. Investment banks had no shot and Indy was pretty close until Schumer, Soros and Paulson got them with one news release.

    The rest has simply been folding the smaller banks and non-reserve system banks up into the guys that had securitized their crap. i.E Countrywide Merrill BAC, JPM WAMU BSC. Wells Wachovia.

    MS has huge swap exposure in Europe and if they want to keep that bank holding company status they need major moves to comply with BASEL III. Not gonna get there with private capital raise,and nobody is paying the going rate without FRC protection for them.

    As far as the balance sheet entry to transfer the debt from refinance through clearing. It is still happening today. Perfect example, go try to run a HARP loan and tell the underwriter you want to do a consolidation extension and see what they tell you. They are not doing HARP to help, they are trying to get folks into a recordable instrument, which requires a new loan. Watch who is satisfying the old mortgage now. It won’t be the servicer signing anymore.

    Anonymous, I’m at this a long time and when folks finally see that Fannie and Freddie never get the notes either, and the shell account left with the originator is collecting all the default insurance, they are gonna shit themselves.

    I also stand by my original estimate in 2008 – the taxpayer loss on this mess – 2 trillion total. Let fannie and freddie take marks tomorrow and you will see the losses are already at 800 billion. the rest is now being offset by contract premium and held to maturity status.

  23. Setting a Foreclosure Case for Trial

    Posted on January 31st, 2012 by Mark Stopa

    Did you know the banks and their lawyers don’t want to have to go to trial in foreclosure cases? It’s not exactly breaking news, I realize. (Recall, for instance, this post, where I showed that just 198 trials took place in the entire state of Florida in a recent, one-year period.) In fact, those of us in the industry have known this for some time, i.e. banks want to win by default and/or summary judgment, not by trial in contested cases against lawyers who are asserting valid objections each step of the way.

    Given the volume of foreclosure cases in Florida, the increasing number of homeowners defending those cases, and the banks’ aversion to trial, our court system is inundated with foreclosure cases. Personally, I don’t think this is a problem – if the banks don’t want to prosecute their cases, that’s their prerogative. However, in an attempt to push through the logjam, I’ve seen some judges take measures which, in any other time, would be considered quite unusual. One local judge, for instance, has stated setting cases for trial sua sponte, one after another, regardless of how the parties feel about it. This begs the question – what is the appropriate way to set a case for trial?

    I’ve blogged about this issue for some time now, including here and here, so at this point we should all know the basics of setting a case for trial, as set forth in Fla.R.Civ.P. 1.440. First, a case can’t be set for trial unless it is “at issue,” meaning the defendant has filed an Answer to the operative Complaint and no there are no pending motions directed to the pleadings. Second, when the court sets a case for trial, it must provide at least 30 days notice; anything less is insufficient. The two cases which I love to cite for these propositions are Bennett v. Continental Chemicals, Inc., 492 So. 2d 724 (Fla. 1st DCA 1986) (en banc) and Precision Constructors, Inc. v. Valtec Constr. Corp., 825 So. 2d 1062 (Fla. 3d DCA 2002). Notably, in both cases, the Florida appellate court reversed a final judgment not because there was any substantive error at trial, but because the trial had been set prematurely, in violation of Rule 1.440. That’s how big of a deal this is – it doesn’t matter if the trial was done correctly if it was set prematurely.

    I’m confident the local judge who has started setting cases for trial en masse, sua sponte, is aware of these requirements. In fact, I sincerely believe she tries to follow the law, and she has refrained from setting cases for trial that are not “at issue,” which is obviously a good thing. The question that has arisen from her rulings, in my view, is whether a judge can set a case for trial on his/her own, sua sponte, when the case has not been noticed for trial.

    By way of example, and to illustrate the situation at hand, I recently had a hearing before this judge on a Motion to Substitute Party Plaintiff. The issue of trial was not set for hearing, and no party had filed a Notice for Trial, so I wasn’t even thinking about a trial at this hearing. Heck, the plaintiff’s lawyers were trying to change the identity of the plaintiff, so getting proper pleadings in place, and taking discovery regarding the new plaintiff, was paramount in my mind, not trial. Anyway, at the hearing, immediately after she allowed the new plaintiff to join the case, the judge decided to set the case for trial with, quite frankly, limited input from the parties. I objected, but it was clear to me that the court was following a procedure where foreclosure cases were being set for trial.

    Respectfully, I’m troubled at this sequence of events.

    Any time I go into a hearing, I expect that the only matter(s) being argued are those which have been noticed for hearing. This is fairly basic, so a Court bringing up a matter like this, sua sponte, is the last thing I’d expect at a hearing on a simple motion. I could perhaps understand this better if the plaintiff had filed a Notice for Trial. But for a court to set a case for trial, totally on its own, where the case was not even noticed for trial and the issue of trial wasn’t set for hearing … I just don’t see that. In my case, for example, I think I should get to amend my pleadings and take discovery about this new plaintiff before a trial is set.

    I believe the case law supports my view that a “Notice for Trial” must be filed before a judge can set a case for trial. Rule 1.440 has three subsections, and each one is a step in a three-step process. Once a case is “at issue” (subsection (a)), then it may be noticed for trial (subsection (b)), and then the court may set it for trial (subsection (c)). As I read the cases which cite Rule 1.440, I believe they all support this interpretation. See Genuine Parts Co. v. Parsons, 917 So. 2d 419 (Fla. 4th DCA 2006) (reversing final judgment where the court set the case for trial without a notice for trial having been filed); Garcia v. Lincare, Inc., 906 So. 2d 1268 (Fla. 5th DCA 2005) (“Procedural readiness for trial differs from actual readiness for trial. It is the former, coupled with a properly filed ‘Notice for Trial,’ that imposes on the court the obligation to set a trial date.”); Hartford Fire Ins. Co. v. Controltec, Inc., 561 So. 2d 1334 (Fla. 5th DCA 1990) (“The rule requires the filing of a notice of trial for review by the court in order to determine whether the cause is ready for trial”); Balboa Ins. Co. v. Shores of Madeira, Inc., 457 So. 2d 596 (Fla. 2d DCA 1984) (“Once a proper notice of trial has been filed, the duty is on the court to set the cause for trial.”).

    This may sound like procedural mumbo jumbo, and I suppose to some extent it is. That said, when trial is set, the substantive rights of the parties are being adjudicated (or about to be adjudicated), so it’s important to follow the procedure correctly. As the en banc First District explained in Bennett, “strict compliance with Rule 1.440 is mandatory.” Using my example above, if a Notice for Trial had been filed, I would have had a chance to object on the basis that trial was premature because the plaintiff had just changed. At minimum, even if it was time to set the case for trial, I could have begun preparing the file accordingly (by completing discovery or amending pleadings as necessary). In my view, all litigants are entitled to this right, and to sua sponte deprive them of that right is contrary to law.

    Reasonable minds can disagree, and this is certainly not the worst thing I’ve seen in foreclosure court. That said, I’d love to see legal authority that allows a judge to set a case for trial, sua sponte, when a Notice for Trial has not been filed. In light of the cases I’ve cited above, I just don’t think it’s possible.
    Mark Stopa Esq.

  24. How To Attack The “We Hold The Note Your Honor…That’s All That Matters!
    January 30, 2012

    It’s hands down one of the most frustrating moments in court. Counsel or Pro Se has submitted a very well pled opposition or motion to dismiss attacking standing but has missed some very important facts to point out to the court in both their pleadings and oral argument. Opposing Counsel says to the Judge “we hold the note Your Honor” and the judge says to you…they have the note your motion is denied! What did you miss?
    Here are some things you need to pay attention to:

    Is the Plaintiff different from the named lender on the note and mortgage?
    Was there a copy of the note attached to the complaint or a lost note count pled?
    Did the Plaintiff allege to own and hold the note or was authorized by the party entitled to enforce it?
    Was there a Notice of Filing of the “original note and mortgage” after the Complaint was filed and did the note now contain endorsements with one now in blank?
    These are some very simple things to overlook because they are extremely common in Foreclosure Mill pleadings so you might overlook them as same old same old. But pay attention here.

    Foreclosure Mills commonly walk into court on a Motion to Dismiss or Summary Judgment hearing saying “We hold the note Your Honor…that’s all that matters!” And BLAM! Your motion is denied or final judgment is entered.

    Your motion was denied because you failed to pay attention to the details and SLOWLY point the facts out to the judge in a painted picture. Let me take you there.

    Dialog: Your Honor hold on, At the time the complaint was filed, Plaintiff Bank of New York alleged it was the owner and holder of the note and mortgage and in support of that allegation, attached to the complaint, a copy of the alleged note. The note attached was in the name of Countrywide and did not contain ANY indorsements. Two months later, Plaintiff in its notice of filing of the alleged original note and mortgage, attached a copy of the note PLaintiff is now presenting to the court. This new note contains two (2) indorsements one now in blank prompting Plaintiff to now claim they are the holder.

    The problem with this Your Honor is standing must exist at the time the complaint was filed and not after. It is the blank indorsement that allows them to claim they are the holder however, the note attached to the complaint had no indorsements and that is the note they relied upon. Clearly had they been in possession of this new note with two (2) new indorsements at the time the complaint was filed, they would have provided it to the court. The notice of filing of this new note with the indorsement in blank two months after the complaint was filed is in effect, an attempt to amend the complaint. The proper remedy to amend the complaint is via leave of the court which has not happened here. More importantly, a complaint cannot be amended to establish standing after the original complaint was filed thus, the proper remedy would be to dismiss the complaint and refile.

    You might even want to go so far as to suggest to the court nicely how dismissing and causing Plaintiff to refile is not only in the best interest of judicial integrity but is also in the best interest of judicial economy as the courts would receive new filing fees.

    Just recently Jacqulyn Mack of the Mack Law Firm brought her bite and this argument right to the 2nd DCA’s doorstep in Feltus v. U.S. Bank and gained a favorable detailed decision that will certainly bring this attack and GREAT rebuttal on the “we hold the note that’s all that matters” position. It’s 2012 people…momentum is in the air…let’s bring the fight to their doorstep!

    -Anthony Martinez Esq.

  25. iwantmynpv,

    Thanks for the tip. And, what did you see in the swaps, as early as 2006, that caused you to short the banks stocks? Know that others did the same (probably after you). But, question is — what was is about the “mortgages” and synthetic derivatives/swaps that caused alarm for you?

    Please do not tell me that the borrowers did not qualify for the loans. We all know the loans were bogus — on lenders part. I want to know what happened after the “subprime refinances” failed the GSE “test” for a valid mortgage. And, who owned the “loan” BEFORE the refinance in question — and how did they come to own the so-called “loan” both before and after the refinance?? Do you know? What, really, were these so-called subprime refinance loans? I know. Do you? Or was this just great insight on your part as to the volume of the derivatives/swaps??

  26. @enraged – my wife showed me what she alleged was a FEMA Camp. I did have to take notice to one thing she mentioned. All the turnstile gates at the facility were entry only!

    Not much of a conspiracy theory guy before watching Haliburton get a multi-billion dollar no-bid contract to ship all our war toys over to Afghanistan to get the Taliban. The same Taliban we funded against the soviet union. It struck me odd that the SEC investigation against Haliburton and Cheney for cooking the books went dead after the war began and good ole Haliburton was flush with cash.

    Was one of the first,as early as 2006, to call the unwind of private securitizations, the mess that would be caused by the synthetic swaps floating all over global banks balance sheets. Called Bear Stearns demise within 8 weeks and made a killing shorting all the bank stocks.

    So,let me be the first to call it here tonight. Morgan Stanley will be paired with a commercial lender by year end, or they are going away. that is right, there is no way back for MS. They are a screaming short!. Tell the pension funds to stop allowing them to manage the fund, have treasury boot them as a dealer, and close all individual and private wealth accounts. Buy massive put options with a December 15 strike and sit back and wait. They are going away and they are the weakest link, even more so than BAC.

  27. I successfully re-recorded (lawfully), my Grant Deed with my and my husband’s name in ALL CAPS—as sole owners—at my county recorder’s office. It was recorded AFTER the Trustee’s Deed Upon Sale… (from my “illegal” foreclosure)…doesn’t that do something for me…somehow?

  28. Enraged,

    Doom and gloom? No. Justice.

  29. Much praise to Catherine Cortez Masto. Not only does she imply that federal law may be violated by giving away of “origination” violations (implicitly referring to the TILA), but she refers to affiliations and proprietary relationships, and to correction of records. And, most importantly, where do homeowners go, after the settlement, to address allegations of theft and fraud? How are documents are fixed, and are they even required to be fixed?

    All being bought by a settlement that, according to Pam Bondi, provides “relief” to homeowner victims. Relief?? Rights signed away for $1800.00 bucks?? Forget the cash, tell the AGs you want all documents FIXED FIRST, and then they can discuss settlement. We want investigation FIRST. We want the AGs to do what the courts have failed to do — discovery, interrogatories, production of documents. We want, above all, our names cleared, our reputations, that were destroyed by massive fraud, restored. We want justice. Not so much to ask for. Problem is — it cannot be done. . No consensus yet, as to how far individual rights to sue will be affected.

    Let the AGs take individuals’ $1800.00 and use it for investigation. It will not help us. No relief, and no justice.

    And, Neil, thank you, for finally addressing this.

  30. That’s why the “all doom and gloom” atitude isn’t appropriate. We may not, individually, see the result we hoped for. The fact of the matter is that this is a gigantic undertaking involving hundreds of thousands of people, each looking at it from their own perspective. Hundreds of thousands of heads are smarter collectively than one here and one there, the same way that 12 jurors’ heards are smarter then one judge’s.

    I have absolutely no doubt that we will know how widespread the fraud was. All those “FEMA” camps might very well soon serve to house the extinct 1%, the politicians who covered them, the judges who profited, the foreclosure mills, etc.

    Adding up all the people who actually participated in the criminal activities, directly or indirectly, and/or enabled it and pretty soon, we’re talking… small nation. 🙂

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