Robo-Deal: The Price of Crime


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” The biggest mistake being made in the settlement is that investors are being insulted. They won’t return to the same marketplace and invest in similar offerings in the future. This puts a permanent damper on credit markets and liquidity. Investors have no reason to trust a society that ratifies criminal fraud. Investors have a high tolerance for risk, but zero tolerance for corruption. The net effect will be investments going anywhere but the credit markets based on Wall Street, which means that fund managers are going to perceive that their only safe move is to go to a more stable environment in which crime is punished and fraud isn’t tolerated.” — Neil F Garfield,

EDITOR’S COMMENT AND ANALYSIS: If you steal a little money you go to jail. If you steal a lot you get to keep it. That seems to be the net impact of the multi-state settlement. Yves Smith (see below) and Adam Levitin are among many who decry this settlement and I agree with their reasons, but I don’t agree that this is the end of this “theater.”

It is probable that world class criminals will escape prosecution and it is certainly a bad precedent to put a price — $2,000 — on committing forgery, where the loss is in the hundreds of thousands of dollars. The driving theme behind the settlement is to get this episode behind us and so, like the tobacco settlement, this new deal is intended to start us on the path of clearing out the foreclosure problem — but unlike the tobacco settlement in which people were successfully encouraged to stop smoking, this settlement is based solidly on continuing false and fraudulent foreclosures on debts that have been paid if you apply the third party payments.

Those foreclosures cannot continue without continuing the fraud. This isn’t a paperwork problem — it is an economic one in which the real parties in interest have been left out.

Yet the theater is far from over because the title issues and the individual causes of action — for those homeowners who want to pursue them — still exist, and criminal prosecutions — for those prosecutors who won’t be stopped will also continue.  There is no avoiding the realization that the very banks who are parties to this settlement are not and never were parties to the loans. They never owned them and they never bought them.

Thus any document signed by these strangers to the transaction is no more than a wild deed that cannot support a chain of title. If this issue is not addressed head-on, who is going to buy anything or lend anything in a market where a growing number of supposedly ex-homeowners successfully overturn foreclosures and regain title and possession of their properties? It isn’t the number of people who succeed in this endeavor that matters — it is that the risk exists that it could happen on any property.

WHY ROBO? Take a step back and look at this picture. The Banks are settling claims for wrongful foreclosure but the wrongful foreclosure is being left intact. The obvious title problems are left intact like a disease on a rotting corpse. The question of why false declarations in false documents were used is being glossed over as though it doesn’t really matter why they did it. Isn’t anyone curious why banks would resort to widespread use of forged documents with false declarations contained in them? 

This issue won’t go away. If there was a cover-up, what were they attempting to cover up? For me the answer is clear — (a) the loans contain numerous fatal defects that eviscerate the debt mortgage securing the debt and (b) that there was no right or reason to foreclose except that the banks and servicers saw an opportunity to make even more money by taking the homes after they had already taken the investors and the homeowners to the cleaners.

The bottom line is (a) that there were fatal defects in both the documentation for the origination of the loan and the documentation for the origination of the sale of mortgage bonds to investors. This was intentional, so that the banks could do exactly what they are now doing, pretending on a grand scale to be the creditors when in fact the real creditors are being left out in the cold. And (b) there remain fatal defects in both the so-called mortgages and the foreclosure process as it has progressed thus far. The only settlement that counts, therefore, is one that stops the false foreclosures by strangers to the deal on loans that are not in default and that are not secured by a perfected mortgage lien.

In the end run, how much more the banks will be required to fork over will depend upon you and others who read this blog. If you call it quits, then the most you will see if in fact anyone sees it, is $2,000 for losing a home you should not have lost and being tricked into a loan that should have been far different in both amount and terms. Those who have not yet been foreclosed are not directly effected by the settlement. So assuming that the banks and servicers persist in pursuing foreclosures in which they have no interest other than greed, nothing we have so far will change anything.

Those who press on will see a benefit from their efforts although I concede that the turmoil of litigation is daunting at the very least. The prospect of overturning foreclosures and evictions that were based upon false declarations in false documents by banks and servicers who had no privity with the homeowner remains a viable and even an enhanced option. How Judges will react to the news of indictment for criminal activity and settlement with law enforcement officials is anyone’s guess. The added factor that has not been addressed is that most of the foreclosed loans were not in actual default.

In the final analysis, the crisis in title chains is not being addressed at all and there is a lot of work to do to clear it up one way or another. But one thing is certain: continued false foreclosures is not the path of recovery.


by Yves Smith

Here are the top twelve reasons why this deal stinks:

1. We’ve now set a price for forgeries and fabricating documents. It’s $2000 per loan. This is a rounding error compared to the chain of title problem these systematic practices were designed to circumvent. The cost is also trivial in comparison to the average loan, which is roughly $180k, so the settlement represents about 1% of loan balances. It is less than the price of the title insurance that banks failed to get when they transferred the loans to the trust. It is a fraction of the cost of the legal expenses when foreclosures are challenged. It’s a great deal for the banks because no one is at any of the servicers going to jail for forgery and the banks have set the upper bound of the cost of riding roughshod over 300 years of real estate law.

2. That $26 billion is actually $5 billion of bank money and the rest is your money. The mortgage principal writedowns are guaranteed to come almost entirely from securitized loans, which means from investors, which in turn means taxpayers via Fannie and Freddie, pension funds, insurers, and 401 (k)s. Refis of performing loans also reduce income to those very same investors.

3. That $5 billion divided among the big banks wouldn’t even represent a significant quarterly hit. Freddie and Fannie putbacks to the major banks have been running at that level each quarter.

4. That $20 billion actually makes bank second liens sounder, so this deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public.

5. The enforcement is a joke. The first layer of supervision is the banks reporting on themselves. The framework is similar to that of the OCC consent decrees implemented last year, which Adam Levitin and yours truly, among others, decried as regulatory theater.

6. The past history of servicer consent decrees shows the servicers all fail to comply. Why? Servicer records and systems are terrible in the best of times, and their systems and fee structures aren’t set up to handle much in the way of delinquencies. As Tom Adams has pointed out in earlier posts, servicer behavior is predictable when their portfolios are hit with a high level of delinquencies and defaults: they cheat in all sorts of ways to reduce their losses.

7. The cave-in Nevada and Arizona on the Countrywide settlement suit is a special gift for Bank of America, who is by far the worst offender in the chain of title disaster (since, according to sworn testimony of its own employee in Kemp v. Countrywide, Countrywide failed to comply with trust delivery requirements). This move proves that failing to comply with a consent degree has no consequences but will merely be rolled into a new consent degree which will also fail to be enforced. These cases also alleged HAMP violations as consumer fraud violations and could have gotten costly and emboldened other states to file similar suits not just against Countrywide but other servicers, so it was useful to the other banks as well.

8. If the new Federal task force were intended to be serious, this deal would have not have been settled. You never settle before investigating. It’s a bad idea to settle obvious, widespread wrongdoing on the cheap. You use the stuff that is easy to prove to gather information and secure cooperation on the stuff that is harder to prove. In Missouri and Nevada, the robosigning investigation led to criminal charges against agents of the servicers. But even though these companies were acting at the express direction and approval of the services, no individuals or entities higher up the food chain will face any sort of meaningful charges.

9. There is plenty of evidence of widespread abuses that appear not to be on the attorney generals’ or media’s radar, such as servicer driven foreclosures and looting of investors’ funds via impermissible and inflated charges. While no serious probe was undertaken, even the limited or peripheral investigations show massive failures (60% of documents had errors in AGs/Fed’s pathetically small sample). Similarly, the US Trustee’s office found widespread evidence of significant servicer errors in bankruptcy-related filings, such as inflated and bogus fees, and even substantial, completely made up charges. Yet the services and banks will suffer no real consequences for these abuses.

10. A deal on robo signings serves to cover up the much deeper chain of title problem. And don’t get too excited about the New York, Massachusetts, and Delaware MERS suits. They put pressure on banks to clean up this monstrous mess only if the AGs go through to trial and get tough penalties. The banks will want to settle their way out of that too. And even if these cases do go to trial and produce significant victories for the AGs, they still do not address the problem of failures to transfer notes correctly.

11. Don’t bet on a deus ex machina in terms of the new Federal foreclosure task force to improve this picture much. If you think Schneiderman, as a co-chairman who already has a full time day job in New York, is going to outfox a bunch of DC insiders who are part of the problem, I have a bridge I’d like to sell to you.

12. We’ll now have to listen to banks and their sycophant defenders declaring victory despite being wrong on the law and the facts. They will proceed to marginalize and write off criticisms of the servicing practices that hurt homeowners and investors and are devastating communities. But the problems will fester and the housing market will continue to suffer. Investors in mortgage-backed securities, who know that services have been screwing them for years, will be hung out to dry and will likely never return to a private MBS market, since the problems won’t ever be fixed. This settlement has not only revealed the residential mortgage market to be too big to fail, but puts it on long term, perhaps permanent, government life support.

As we’ve said before, this settlement is yet another raw demonstration of who wields power in America, and it isn’t you and me. It’s bad enough to see these negotiations come to their predictable, sorry outcome. It adds insult to injury to see some try to depict it as a win for long suffering, still abused homeowners.

43 Responses

  1. Well of course we are, Nora. To begin, start sending stuff to
    the investors’ attorneys in law suits. I have already sent such “stuff” to one group’s attorneys. But I am only one person and a lot of mail needs to go out. They need to see what that gang is saying out the other side of its duplicitous (had to look that up) face. Put the stuff on cd and mail it. The post office jabs us for 1.95 for a cd – rip! Says it’s a package, not a letter. Costs very little more to put 5 cd’s – one for each attorney or how about judges? in one 6 x 9 envelope. Well, the p.o. needs the money. What case, what info have you seen which stands in conflict with what the other side of the face alleges to investors? Send it. We can make it happen.

  2. This settlement is 800,000,000 dollars short, just for California home owners, If the homes are inflated an average of $40,000 in equity through falsified appraisals, and there are 20 million underwater.
    Guess the rest of us are just screwed and not kissed, as usual. Very disappointing, to put it mildly. Perhaps this will inspire more of us to sue the bastards. It sure should. Are we mice or man? We need to hook up with MBS investors and clean up this mess in the Courts, so that the banksters feel the collective fury of our wrath via lightened wallets. Is anyone else as disgusted as I am that the crooks walked all over us again and our limp wristed, corrupt government did nothing?

  3. @dandiener1:
    For heaven’s sake, don’t listen to Rush! Try Alex Jones or even Glen Beck…

  4. Gee I sure bet this had a lot of influence on California AG Kamala Harris’ decision…

    “California Broke on March 8 … has to borrow another $3.3 billion from Wall Street bankers.”

  5. @dandeiner1 & keepon

    There wouldn’t be so many foreclosures to fight about if WS hadn’t
    by its actions put the skids to the American (and global) economy.
    Many of us lost our ability to meet what we thought was a legitimate
    obligation, and not through any fault of our own. Does the sector of the judiciary who rules from “you’re in default” not understand this? We care because the ‘deadbeat’ perception seems to color rulings and it absolutely should not. No where in the modern or maybe all history of this country has the playing field been so unlevel. Wrongful foreclosure is just a continuation of willfully perpetrated misdeeds, of immorality and illegality. Wrongful foreclosure is just one more, and of course, one which is futher crippling us and athe economy, just from the other end, if you will. Our fine government apparently won’t even consider, doesn’t even occur to them, what it might look like for our economy if this is stopped. How can it be said this has been given any thought? It’s class warfare and it’s dirty and it’s ugly.

    Fwiw, that’s why I fight as best I can: they brought a country, our country, to its knees. Maybe we do need, as joann suggested, some more statistics on events, and if so, it should certainly include number of jobs lost. If the truth is told, it’s probably staggering. Another reason is I, like everyone here, believe in the proper application of the law, which is why I say things like it doesn’t matter if you got a loan you were told you qualified for when you didn’t or even if you knew you didn’t and got it anyway.
    What has that to do with who can kick your butt for your part, if any, in it? Uncle Sam is trying to, long and short, by not putting the accountability where it belongs 1000 to 1. They want us to bear the entire burden which is economically ridiculous in the first place imo and to do this, they must ignore the law. Presumed guilty, we are. What a load.
    RL must not realize that undermining and ignoring the rule of law this country decided at its independence all those years ago would be and must be our foundation will unavoidably lead to our ultimate demise, as keepon says. That’s a ghastly thought, but I don’t see how it isn’t true. Kind of like when you see a movie and it starts raining purple polka dots and no one gets it that it’s coming from invading spaceships. By the time the characters get it that something’s really amiss, the aliens have landed and if it weren’t a movie, it’d be ALL OVER.
    Well, only we stand in the way of such a dark night, so we need strategy and concerted effort, remembering that even as a large group we only have so much time. So what’s most effective? I say we work on the judiciary by sending them “stuff”. Encourage everyone to refuse to sign a MERS’ deed of trust. Record Notice on our homes. Continue to peacefully occupy. What else?

  6. @johngault

    Go for it! Feel free to use my “moniker”…

  7. @boots – everyone should ask the pretenders who are messing with them on modifications if they have a lending license. You don’t have to wait for an answer. Go to your state regulatory agency online and look them up. (“georgia mortgage lending regulatory agency – something like that or Nebraska Dept of Banking and Finance) For all we know, that’s one of the reason ‘they’ drag their feet. Just because those idiots (or is perps more descriptive?) gave the fox the money for “modifications” doesn’t mean they needn’t be licensed and of course, “they” know this. And don’t forget, there Must be disclosure of the a.p.r. and who knows what else. If not, I wouldn’t know why not.
    It’s akin to a refi – not really of course, but that’s the pretense.
    But don’t say this if you want a mod, because so saying will get you out of the running for sure imo.

  8. Today I was listening to Rush Limbaugh on the radio. As someone who has respected him for about 95% of his “positions,” I found myself very disappointed. Maybe it is because he spends 90% or more of his time with “successful people,” including “banker-types,” “Wall-Streeters,” and the “political class,” but it is evident from his pontifications that he has not done his homework.

    Rush has evidently bought into the narrative of “dead-beat homeowners” who “only want a free house” and thinks that the “robo-signers” were little more than “bank employees” who were erroneously using “bad forms” — No reason to re-created whole financial transactions for “clerical errors.”

    He has no idea that the crimes committed by the banks are forgery, false notarisations, creating fraudulent documents, false swearings to facts in court filings, etc. He seems to think the signatures were signed by “auto-pens” and not real people who were not employees of banks nor holders of positions of Vice President of firms where they did not work.

    He knows nothing of the shambles our nation’s land records are in….. despite his being a champion of private property rights.

    Rush has no idea of the massive evasion of legally due fees and taxes “stolen” by MERS and the banks via evasion of the same at the local level nearest the properties themselves. Else he would be bemoaning the excess taxes being shifted to taxpayers in every county of this nation…. If the fees and taxes associated with legal transfers of real estate are not paid by those who owe them (the bank,) the tax commissioners of every county must work with the governing authorities to “make up the difference” by assessing more fees and’or taxes or changing the millage rates on all other existing real estate.

    As an advocate of “just laws,” Rush either does not know of the concept of judges determining “legal standing” in courtrooms before continuing cases. This concept is no more or less “arcane” than the Constitutional requirement that the US President be a “natural born citizen,” a person born in the US whose parents are both US Citizens at the time of the “prospective President’s birth.”

    Where is his considered emphasis on the “illegal takings” aspect of land ownership….. In the cases of millions of homeowners, the legal concept of “eminent domain” is not even an issue… but their rights to personal property is no less sacrosanct than that of a property owner whose land is in danger of being confiscated by a government authority.

    Even if a case for “eminent domain” could be made, it has not been…. nor, as Rush has ably pointed out, should that “taking” be done for the benefit of “private parties” in favor of the rightful owner currently living in the property… In other words “not the Government… nor the Banks who just ‘Want a free house!’ ”

    He sees only the portion of this massive iceberg of fraud pointed out to him by his peers on the bridge of the financial vessel upon which the hopes and dreams of Americans are traveling. He either has no perception of the portion of this dangerous Ponzi scheme that lies beneath the surface in a sea that has been quietened by the mass media…. for political purposes.

    Quite frankly, I’m astounded that this normally astute pundit has such obvious cataracts blinding his well-earned reputation for genius. I can’t get my arms around the idea that he may be “on board” with the “captains of finance” who are purposely steering the US into financial catastrophe.

    Rush’s “favorability ratio” with me has plumetted to below 80%!


  9. carie – your name “carie” will not identify you really. I’d like to use your little expose’ in something I’m working on and I need it to be from not me, need it from someone who went thru that. Your recitation does a good job of describing the experience, I’d say. Can I leave “carie” on it?

  10. you know what, carie? They don’t tell us to default for no reason. I’m of a mind it has to do with mortgage and or pool or whatnot insurance (in addition to we don’t own this loan issues). Why do they need default to find out what the insurance situation is gonna be? I don’t know, but I swear I smell it.


  12. AG Kamala Harris’ Youtube announcement of Foreclosure Settlement for California

  13. We don’t know, can only speculate, what as to our claims this settlement might mean. “Let the pi$$ing match begin”. That makes me sick, because that’s probably what it will be. Buuut, I didn’t see MERS as a party to that settlement, so one way or another, that could be really good news.
    MERS is the thing which currently allows if not formulated the bull, so clearly MERS has to go. We have to re-group mol, imo. We’re angry but we’re not down. Find out if YOUR state requires statutorily that assignments need to be done if unrecorded (they do – see YOUR state statute of frauds) and 2) find out if YOUR state calls for recordation for reliance. That means to come after you, the assgt had to be recorded to impart Notice. The notice statutes are sometimes sort of hidden, like NV’s 111.315.
    Depending on what this means to you, you’ll keep looking.

    For anyone who hasn’t lost a home yet, consider PLEASE noticing and preserving your claims. This can be done easily enough. I’m not an attorney and this is not legal advice and each notice will take tailoring for individual claims. It occurred to me that the Notice does a bit more than I even thought. (non-lawyer now, hear?) 1) Does give notice and preserves your claims imo 2)
    queers any finding of bonafide purchaser without notice imo (because recordation is statutory notice 3) pretender will think twice imo 4) title company will likely NOT insure over your notice imo = no title insurance. Even if you ultimately never do a thing about a wrongful foreclosure for whatever reason, leave your footprint on YOUR property.

    Have you looked at your f/c docs lately? What do they say? I just read another one (older) which says the debt is owed to MERS!
    Does your NOD tell you how much $$ you are behind and by when
    it must be paid to prevent f/c? Telling you to call for that info imo
    doesn’t cut it. Your f/c docs may well be fatally defective. Does your state generally hold that a sub of trustee must be recorded prior to
    that sub trustee sending a NOD? Find out! You may well have state law and contractual deficiencies to notice and preserve. Did a party without an assignment allege to sub the trustee? WHO signed the docs – cousin of agent of agent of auntie? Any evidence in the record of that “agency” or other alleged authority to execute those docs for named parties?

    Can anything as easy as a notice be implemented by people whose homes were snarfed? I don’t know. Probably not available to do if no longer in title. What attorney reading LL over there in the corner will help us determine this answer?

  14. let’s assume that homeowners received the 2k for losing their house with improper documentations through robo and surrogate signers. do you think it will solve title defect? i don’t think so, the only thing to clear the title is to have the homeowners sign grant deed deeding it to whoever these 5 big banks has an interest. banks should use title company to insure the grant deed for any liability banks may face in the future. secondly, if banks should modify homeowners mortgage, they should also use an escrow company or title company to ensure that homeowners and banks are protected from any liabilities. if servicer who will do the loan modification must treat that as same as refinancing and verify income if they are qualified but must waive certain requirement such as credit rating, bankruptcy and foreclosure. the property must be appraise by certified appraisers and the market value must be based on comparable in the neighborhood, since most comparable are foreclosure sales and lower value, the value must reflect what current market in the neighborhood. do not allow a loan modification without having the banks open an escrow so borrowers are also protected. insist that any defect of the title, homeowners are also covered from any liabilities. this is the only way the title defects could be restored but the questions is these 5 banks how many loans belongs to them? and how many belongs to Fannie Mae, freddie mac, private investors, and debt buyers who acquired those asset. how could these banks have the standing to modified the mortgages if those asset has been transferred to a trust as what they are claiming? because in modifying a loan , they also have to have a new deed of trust, promissory note and how they gonna put their names on the deed of trust and promissory notes? is MERS will be the nominee again on a deed? this are things that they need to fix in order for homeowners to trust again.

    we have been victimized by using deceptive and predatory lending and again using robo and surrogate to foreclose the property. now let us not put ourselves again in that situation, we must learn to weigh our option on learning about this modification. remember we don’t want to to be victims again.

  15. Citizens United (Supreme Court) officially made corporations “people”. Could 99% of the citizens – people of the United States form their own “corporation” called We The People? Could we then get all the perks and powers and special treatment that corporations – um I mean corporations who are now people get?

  16. Homeowner: “My income has gone way down because of the devastating economic crash—can I please apply for the loan mod program that our wonderful President told us about on national TV?”

    Servicer: “I’d like to help you with that, but you can’t be current on your “mortgage”—because then we don’t accept that you are really struggling…”

    Homeowner: “Okay, well, I’ve been taking money from my credit card just to survive, but I will stop doing that—which I hate doing anyway—and just fall behind so I can qualify for the mod program…while I continue to look for work…my credit is shot anyway, so what the hell…”

    (later) Servicer: “Okay, send us allyour paperwork fifty times over the course of the next year—during which time we might foreclose on you anyway, just for the heck of it—but if you happen to survive the torture of the paperwork nightmare, then we may or may not give you a “trial payment plan”—and if we do, you will be giving us money every month (on time, please—only WE are allowed to screw up the paperwork), to put into a “suspense account”, which we will of course keep, no matter if you get a “permanent” loan mod or not….anyway, after 3 to 6 months, we will tell you (the total lie) whether or not some “investor” who “owns” your “loan” in some “trust”, actually “approves” of you getting a loan mod…or someother stupid reason to not give you the mod….We of course are blatantly lying when we say some obscure “investor” has the final say so, but we have to come up with SOME sort of excuse, because what we REALLY want to do is foreclose on you—for a variety of reasons, but it always comes down to us making the most money we possibly can. You see, we are just a debt collector…nobody “owns” a promissory note—they were all destroyed because of the “securities” issue…we just PRETEND like a “loan” was supposedly pooled into a mortgage-backed securitized trust—but, honestly, this isn’t true. The pretend “loans” NEVER went into any of the trusts. It was just a little game we played, and are still playing…There weren’t any “loans”. Only collection rights were transferred at closing. So, ma’am, here’s the thing—you can give us your money for the stupid “trial payment plan”, but we more than likely won’t ever give you a mod…we will just string you along with lies, take your money, hide the truth, and then foreclose on you—and there’s nothing you can do about it. We have it all figured out…how to get it done quickly, and kick you out…see, there’s this thing called MERS, and it allows us to make up any kind of lie we want…and get away with it…it’s quite the INGENIOUS TRAP we put you in, isn’t it?”

    Homeowner: “Uh, yeah…hmmm…well, since you put it that way, I guess I’ll just have to look for a sale on tents somewhere…just not sure what I’m going to tell my kids…”

    Servicer: “NOW you’re talkin’—good luck with that! Just tell your kids that money and deceit are SO much more important than compassion and honesty—that’s what our government wants us to learn from all this…Oh, and just be careful not to use any little wood stoves inside that tent…”

  17. sure is an open invitation to criminals of the world isn’t it? An open door to economic terrorists. They just have to dress up in an expensive suit and they’ll look just like the rest of the bangsters and wall streeters. What WERE they thinking?

    Be wary of all the extra junk mail you’ll be deluged with.

    Thanks Mr. President and all of you AGs for laying us ripe, wide open targets for the next criminal enterprise. Oh. Wait. Isn’t that where this all started?

  18. Oh But Wait The Victims and The Public Say Hold On a Secind and the Courts Have Yet To OK The Settlements … Hmmmm Maybe The Governments Nod of I Like Anal Sex is NOT Approvable After All ….


  19. Neil or any lawyer out there.
    Why can we not use our common law right
    to privately prosecute crimes,
    Its still used a lot in the UK and Canada when the state declines to
    prosecute crimes.
    I can find nothing in Florida law to stop it.
    Comments someone ?

  20. Lucy – you and I are kindred spirits. Keep it up!

  21. Wait. We don’t need the investors. There is plenty of money to
    fund loans in this country. Not dumping these loans into
    securitization pools may lead to higher interest rates – I couldn’t argue that. But so be it because the collateral damage can’t be tolerated.
    There would have to be an entire systemic change to the current m.o.
    starting with a disappearance of MERS in the entirety. The tbtf’s have shown who they are and aren’t and have repeatedly demonstrated their impression no rules apply to them. No promises to follow the rules and laws could be taken seriously. First – MERS has to go.

    Everyone getting financing must refuse to sign a “MERS deed of trust.” It’s a bogus piece of dog doobage, a bag of tricks that will lead to misery for many. No one can ever say what the future might bring for them, that of course they’ll never have an issue with payments.
    But that’s not the driving force for not signing a MERS’ dot. It’s a system which has enabled all manner of evils and lead to the
    economic tsunami and changed the course of history and not in a good way.
    MERS will eventually be taken out, but eventually isn’t good enough.
    MERS HAS TO GO – NOW. Tell everyone to refuse to use a MERS
    deed of trust. Find a portfolio lender. Surely there are some left.

  22. Fuck you, DICK Bove. The poor wittle banks wost money…boo fucking hoo. He actually said homeowners cheated on their mortgages! What an asshole. The anchor at the end that challenged DICK was good but he should thrown the DICK off the air. The reason I and most people stopped paying was BECAUSE THE BANKS TOLD US TO, not because we wanted to “cheat” on our mortgages.

  23. I cannot say this enough…………..Obama was bought buy the banks and now wants a feather in his cap for screwing the American people!

  24. TMT great video and I did not think you like Mr Bove. The encourageing news is neither did the Anchor. Mr Bove through his case only strengthens our position.

    Here is some encouraging news is that a lot of people are not buying this bogus settlement.

    Again thank you Neil Garfield and you too TMT.



  25. @TMT:

    Did you see this video?”

    Did I hear Dick Bove (famed bankster cheerleader) just say all those paying on time should stop and send a letter to the AG’s?

    (Interesting how stronly opposing viewpoints may come to the same conclusion….)

  26. Dick Bove is a very known Banking Analyst who has been wrong in the banking issues. BTW, I do not like him.

  27. TMT I saw the video. The video makes Neil’s article analysis case even stronger. The guy on the video not the Cnbc Anchor. Still doesnt get it. He claims the bankster did nothing wrong, and still blames the homeowner.

  28. MERS is the problem and if WE don’t shut them down……..this will NEVER BE FIXED!!

  29. Yeah but the Attorney Generals can still file lawsuits against the Banksters. According to my understanding. So it is not over. Am I understanding correctly?


  30. Misprision of a Felony: Failing to Report a Felony

    Many today are saying those who have agreed to this settlement are guilty of this.

    If you continue to pay your mortgage or apply for a modification with crooks you are guilty of this.

    I think there should be a massive nationwide class action or joiner or joinder filed by homeowners pro se or by a non-profit attorney who deeply gets it and who can articulate all the laws, statutes , codes, regulations accounting standards, leaving nothing out.

    Your “Honor” – We are reporting this felony as required by law. We deny that this debt is owed to crooks. We have not been informed of who we owe as required by law or the amount that is due that party. We have been paying the wrong party who has fraudulenty concealed this from us. Continuing to pay a crook would make us guilty of Misprision of a Felony and complicit in a tax evasion and money laundering scheme (just to start – how long is the list?).

  31. Let’s keep an eye out for the reported “separate agreement” for Oklahoma, the one state said to hold out in this settlement. Some articles reported that the AG in Oklahoma thinks banks deserved no penalty at all!

    Not likely to be a good result for those homeowners under his watch.

  32. Obama nor Democrats ( nor any one else) will not see my vote this election. They have shown that they are thieves and buffoons. Totally. What a system of injustice. The kid is hungry , he steals a loaf of bread. he is sent to the workhouse with lashes. The bankers steal trillions, ruin lives, destroy the economy, and they are told “do it again , thank you”. What a system.

  33. joann, on February 9, 2012 at 9:44 am said:

    “I wish there was someone very famous, articulate and widely respected who would make it their mission in life to inform and educate Americans as to why all mortgage payments should stop immediately (and perhaps even all debt payments). It would be a very quick victory by Americans of all kinds including investors and it would avoid violence in the streets. Only the too big to fail would fail. They are insolvent, they have already failed. 99% are too big to fail.”

    Is there anyone “widely respected” today? I voted the straight democratic ticket in the last election (and in past decades I have occasionally voted differently) and very quickly felt betrayed.

    I sincerely believe and sorry if I offend anyone – if every dead president came back to life today since the founding of our nation including Franklin, Teddy, …and god forgive me – even Ronald (even he would take issue right now with his modern day robot disciples) – they would be in complete agreement and call a stop this fraudulent bluff on the American people and the entire world.

  34. Criminal Investigations will still continue… I have heard it from “Eric Holder” , a conflict of interest.

  35. Too Big Too Fail is in reality all about saving their securitization scheme, which further refined is all about leveraging the sweat of our brows.

    THEY – know how to do nothing other than leveraging the toils of others.

    THEY – without us, have nothing. THEY are worthless.

    THEY – without us, have no value whatsoever.

    THEY – corrupt peaceful peoples the world over.

    THEY – damaging the only planet we have.

    THEY – kill our youth in wars.

    THEY in reality are insignificant.

    THEY – need to go now.

  36. I do not think the Obama administration, congress, the press or the public (and even the foreclosure defense advocates) have any idea about the utter devastation that has already occurred.

    They don’t have the numbers. I challenge anyone to find these numbers – I have tried – maybe I am missing something – there ought to be a website with a daily running balance:

    How many foreclosures occurred in each of the years starting in 2004 (for some years starting in 2006 quarter by quarter would be telling…)?

    How many people were affected by this including singles, couples, families and extended families? An act of war or massive hurricanes, tornados, tsunami’s, earthquakes and wild fires all at once could not have accomplished it.

  37. The added factor that has not been addressed is that most of the foreclosed loans were/are not in actual default….



  38. just wait until the weather gets warmer

  39. the above comments mean well but are totally off base. there are no investors or credit markets. all fiat money issues its not lent. nothing but fiscal regulations stop any system from monetizing assets. nobody got defrauded the principal is guaranteed by law, its legal tender regardless

  40. Yep, and to make the settlement even better Who is in charge of making sure the people get their measly $2000, or re-contract and cloud their titles even more? Well, even with the details sketchy at this point and time, from the Homeowners Resource page if the CA AG, one will find this: “To find out if you may be eligible for a loan modification, refinance, short sale or other foreclosure prevention relief under the settlement, you will need to contact your mortgage servicer.”

  41. If the deal was brokered directly from what is actually owed the trust investor beneficiary today cutting out the interlopers (jailing them) there would be massive automatic principal write downs, restitution and quite a large number of people would find out their loan is paid in full – the interlopers would no longer receive a free house and the economy would be stimulated beyond belief. The too big to fail might fail – they are not solvent anyway would that be so bad? Just show what is owed the beneficiary – it’s the law.

    The trust investors are the beneficiary (the power to enforce a sale is in their hands and nowhere else by real property law even if behind the scenes agreements and fraud sham arrangements between banks and investors only gave them the right to income – the right to income and the power of sale can only be one entity as in asset backed or secured or “mortgage” (homeowner entered into a mortgage agreement nothing else).

    It isn’t a free house or a windfall to the homeowner. Someone else paid it off for their own reasons and paid in part or paid in full is paid in part or paid in full –if aunt tilly paid in full she still needs her nephew‘s signature on a deed if she wants the house and he doesn’t have to give it to her unless he wants to– and if she paid in part the loan amount is reduced by that amount. If it still goes in foreclosure that is what is owed and aunt tilly doesn’t get the house – the beneficiary gets the house. That’s how it works. It is real property.

    It has been pointed out by many that the investors have no right to enforce the power of sale. If that is the case, no one does. Moral hazard was not created by homeowners. The moral hazard is in handing the interlopers the house. It allows them to continue fuelling their fraud in perpetuity without consequence (consequence is to 99% including investors just not to the interloper thieves and the global crash is the result – it hasn’t even begun).

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