How Did H & R Block Get into the Subprime Mortgage Business?

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Tax Preparer Slammed with $24 Million in Fines on Toxic Mortgages

Editor’s Comment:  You really have to think about some of these stories and what they mean. 

1. Where is the synergy in a merger between Option One and H&R Block? The answers that they were both performing services for fees and neither one was ever a banker, lender or even investor sourcing the funds that were used to lure borrowers into deals that were so convoluted that even Alan Greenspan admits he didn’t understand them.

2. The charge is that they didn’t reveal that they could not buy back all the bad mortgages — meaning they did buy back some of them. which ones? And were some of those mortgages foreclosed in the name of a stranger to the transaction? WORSE YET — how many satisfactions of mortgages were executed by Ocwen, which was not the creditor, never the lender, and never the successor to any creditor. Follow the money trail. The only trail that exists is the trail leading from the investor’s banks accounts into the escrow agent’s trust account with instructions to refund any excess to parties who were complete strangers to the transaction disclosed to the borrower. The intermediary account in which the investor money was deposited was used to pay pornographic fees and profits to the investment banker and close affiliates as “participants” in a scheme of ” securitization” that never took place.

3. Under what terms were the loans purchased? Was it the note, the mortgage or the obligation? There are differences between all three.

4. Since they didn’t have the money to buy back the loans it might be inferred that they never had that money. In other words, they appeared on the “closing papers” as lender when in fact they never had the money to loan and they merely had performed a fee for service — I.e., acting as though they were the lender when they were not.

5. Who was the lender? If the money came from investors, then we know how to identify the creditor. but if we assume that the loan might have been paid or purchased by Option One, then isn’t the lender’s obligation paid? let’s see those actual repurchase transactions.

6. If that isn’t right then Option One must be correctly identified as the lender on the note and mortgage even though they never loaned any money and may or may not have purchased the entire loan, just the receivable, the right to sell the property — but how does anyone purchase the right to submit a credit bid at the foreclosure auction when everyone knows they were not the creditor?

7. How could any of these entities have any loans on their books when they were never the source of funds and why are they being allowed to claim losses obviously fell on the investors who put up the money on toxic mortgages believing them to be triple A rated. 

8. Why would anyone underwrite a bad deal unless they knew they would not lose any money? These mortgages were bad mortgages that under normal circumstances would never have been  offered by any bank loaning its own money or the it’s depositors. 

9. The terms of the deal MUST have been that nobody except the investors loses money on this deal and the kickers is that the investors appear to have waived their right to foreclose. 

10. So the thieves who cooked up this deal get paid for creating it and then end up with the house because the befuddled borrower doesn’t realise that either the debts are paid (at least the one secured by the mortgage) or that the debt has been paid down under terms of the loan (see PSA et al) that were never disclosed to the borrower — contrary to TILA.

11. The Courts must understand that there is a difference between paying a debt and buying the debt. The Courts must require any “assignment” to be tested b discovery where the money trail can be examined. What they will discover is that there is no money trail and that the assignment was a sham.  

12. And if the origination documents show the wrong creditor and fail disclose the true fees and profits of all parties identified with the transaction, the documents — note, mortgage and settlement statements are fatally defective and cannot create a perfected lien without overturning centuries of common law, statutory law and regulations governing the banking and lending industries.

H&R Block Unit Pays $28.2M to Settle SEC Claims Regarding Sale of Subprime Mortgages

By Kansas City Business Journal

H&R Block Inc. subsidiary Option One Mortgage Corp. agreed to pay $28.2 million to settle Securities and Exchange Commission    charges that it had misled investors, federal officials announced Tuesday.

The SEC alleged that Option One promised to repurchase or replace residential mortgage-backed securities it sold in 2007 that breached representations and warranties. The subsidiary did not disclose that its financial situation had degraded such that it could not fulfill its repurchase promises.

Robert Khuzami, director of the SEC’s Division of Enforcement, said in a release that Option One’s subprime mortgage business was hit hard by the collapse of the housing market.

“The company nonetheless concealed from investors that its perilous finances created risk that it would not be able to fulfill its duties to repurchase or replace faulty mortgages in its (residential mortgage-backed securities) portfolios,” Khuzami said in the release.

The SEC said Option One was one of the nation’s largest subprime mortgage lenders, with originations of $40 billion in its 2006 fiscal year. When the housing market began to decline in 2006, the unit was faced with falling revenue and hundreds of millions of dollars’ worth of margin calls from creditors.

Parent company H&R Block (NYSE: HRB) provided financing for Option One to meet margin calls and repurchase obligations, but Block was not obligated to do so. Option One did not disclose this reliance to investors.

Option One, now Sand Canyon Corp., did not admit or deny the allegations. It agreed to pay disgorgement of $14.25 million, prejudgment interest of nearly $4 million and a penalty of $10 million.

Kansas City-based H&R Block reported that it still had $430.19 million of mortgage loans on its books from Option One as of Jan. 31. That’s down 16.2 percent from the same period the previous year.

26 Responses

  1. I am new to this blogging thing but I am the proud owner of a mortgage from Option 1 from 2006 (obviously I am really NOT proud). My question is this, is there any knowledge of any loopholes regarding the original mortgage paperwork that might allow me the opportunity to negotiate a principal or rate reduction? AHMSI did a modification for me 18 months ago but I am upside down about 80K with a 6.25% loan. I have never been late and recently signed a commercial loan for my company for 1.4million that requires be to keep current and maintain a high credit score so going past due is really not an option. I have no hardship either but I would love to stick it to these sleaze bags. Any input would be greatly appreciated.

    thanks

  2. I’am looking for an Attotney that would be willing to take on BofA for all the same reasons

  3. J.R. Homeowner,

    You are wrong. You do not understand that subprime was a transfer of servicing rights to already classified default /non-compliant debt. Nothing more. Check your priors–nothing paid off. When nothing prior is paid off, all that remains is — servicing rights to (false) default debt. Collection rights — that is all. Your so -called servicing rights are to pass-through cash flows to non-classified asses. Rather, it is collection rights to income producing default debt. Check your balance sheet accounting — income versus asset. Oh yeah, someone has to report an asset — but not with debt collection, no asset exists. .

    Debt collection servicing rights, my friend, that is all that was ever transferred. Servicing rights to false default/non-compliant debt. All Option One ever had — was servicing rights. Option One/AHMSI — one and the same. Debt collection servicing rights facilities. And, you want proof?? Check your sources. Merged into one.

    Oh, and what does that tell us?? Unsecured. Exactly why, lobbyists pushed Congress to vote down Bankruptcy reform — twice.

    Subprime. Understand what subprime was. It no longer exists, because fraudulent from the onset. .

  4. Mr. “neidermeyer”,

    Email and voicemail sent to Edwards & Clarkson 2 days ago.
    No response as yet.
    Lets discuss the allonge emails and your intentions.
    Happy to share as long as my own interests aren’t compromised.

  5. @Deborah wynn ,

    If you had read that book 3 years ago it would have shocked you as prophetic … it may still do that … You have my permission to skip John Galts radio address to the nation , it just recaps Ayn’s philosophy which is already spelled out in the rest of the book…

    Me? I’m getting for 10-289 to be implemented… It’s just an election away. We already have the EPA as a proxy for the gov’t science comission and Wyatt’s oil fields being serviced by BNSF train rather than pipeline just to line Obama’s flunky … Warren Buffets .. pockets … crony capitalism at it’s finest.

  6. we have organized crime all covering each others ..theres so much money being made between the layers of deceit that those involved sell out to the color green- the root of all evils -i know im stating the obvious but how much can they eat, the 1%- how much. i compared this to heroine addiction- at least drug addicts can be sent to clinics for their methadone and “damage control”…there is no control here with the banks and regulators have failed, which is what they were meant to do right, and now they get to make new law if the real law doesnt serve them and so where do the people go after having their life raped. when you believed that the laws of the land would protect you from harm and now its completely to the contrary- what is left? we have each other, i pray we do not give goldman what they prodicted- that we fight amongst ourselves, a strong possibility since we cannot identify which head to cut off the monster first, or the giant sqid analogy- which seems to just grow new tentacles out of the misery here on the globe.
    where to start? who to elect? in the interim read atlas shrugged- just got my copy.

  7. @E.Tolle—glad you like the granola bars…I saw someone do that one day to one of the (sadly proliferating) “cardboard sign” people…I thought that was a better idea than giving them some money that they “might” use for drugs (gasp!)…

  8. J.R. Homeowner ,

    Could you please forward those e:mail exchanges (the entire e:mail ,, not just the body of the notes .. so that we have the routing information) regarding allonges to Neil here at Livinglies and to the following attorneys.

    June AT edwardsclarkson.com and Theresa AT edwardsclarkson.com

    Thanks!

  9. @ carie, of course I have no idea what Anonymous has been up to, that goes without saying. But going to “agencies” isn’t the solution. Agencies are the enemy of the people. They are all enablers of the securitization machine, and are all fed by the banks who are the culprits here.

    That’s why I brought up OWS. I read so many comments in main stream publications where people say, “OWS needs to do this”, or “what needs to happen is this…” That kind of bloviating leaves the commenter feeling as if his or her two cents were verbalized, which is all the act is worth as well.

    I have no doubt that Anonymous, with her skills, could organize a faction to get to the heart of that issue; protests outside of the major players, the CEOs offices, or what have you….to expose the fraud. Action and deed instead of simply talk. I do hope that she’s working behind the scenes to effectuate some actions….and yes, I’m not just talking but working at it as well.

    The month of May – will be interesting. Oh, and carie, thanks for the granola bars

  10. Absolutely astonishing how fast these threads here take such a sharp turn and go completely off track.
    I only jump in again here because,

    ANONYMOUS, on April 28, 2012 at 2:45 pm said:
    “Option One is now American Home Mortgage Servicing Inc. All owned by Wilbur Ross —among the biggest distressed debt buyers.”

    By every account, including contemporary news media and statements I have from from people involved with Option One at the time, that simply is NOT true.

    Their brief “flirtation” with Cerberus Capital having failed, Option One ended up selling ONLY their *SERVICING RIGHTS* to Wilbur Ross / AHMSI. I have seen absolutely ZERO accounts or statements of AHMSI having acquired ANY assets of Option One, (notes, mortgages, certificates, bonds, etc.), other than the aforementioned servicing rights to loans. That is ALL.

    The FICTION that “Option One is now American Home Mortgage Servicing Inc.” perpetuates a dangerous illusion for foreclosure defendants, especially with regard to the foreclosing party establishing CAPACITY.

    ANONYMOUS, if you have conclusive evidence to support the contention that AHMSI is somhow simply a “name change” from Option One, I would be most interested is seeing it.

  11. Join The99Declaration. Extremely capable people are running as delegate. below are the bios of two of them.

    Check who’s running in your state. Join and vote. Send them a few bucks regularly: every little bit helps.

    http://www.the99declaration.org/july_4th_speaker_bios

    Best decision you’ll ever make. Oh… and stop paying anything to anyone except for food (life-sustaining), utilities, gas if you need to drive and whatever is necessary for you to function and make a living.

    July 4th Speaker Bios

    LAWRENCE LESSIG is the Director of the Edmond J. Safra Foundation Center for Ethics at Harvard University, and a Professor of Law at Harvard Law School. Prior to returning to Harvard, Lessig was a Professor of Law at Stanford Law School (where he was founder of Stanford’s Center for Internet and Society), Harvard Law School (1997-2000), and the University of Chicago Law School. Lessig clerked for Judge Richard Posner on the 7th Circuit Court of Appeals and Justice Antonin Scalia on the United States Supreme Court.

    For much of his academic career, Lessig has focused on law and technology, especially as it affects copyright. He is the author of five books on the subject — Remix (2008),Code v2 (2007), Free Culture (2004), The Future of Ideas (2001) and Code and Other Laws of Cyberspace (1999) — and has served as lead counsel in a number of important cases marking the boundaries of copyright law in a digital age, including Eldred v. Ashcroft, a challenge to the 1998 Sonny Bono Copyright Term Extension Act, and Golan v. Holder.

    His current academic work addresses the question of “institutional corruption” — roughly, influences within an economy of influence that weaken the effectiveness of an institution, or weaken public trust. His current work at the EJ Safra Lab oversees a 5 year research project addressing institutional corruption in a number of institutional contexts.

    Lessig has won numerous awards, including the Free Software Foundation’s Freedom Award, and was named one of Scientific American’s Top 50 Visionaries. He is a member of the American Academy of Arts and Sciences, and the American Philosophical Society. Lessig serves on the boards of Creative Commons, MAPLight, Brave New Film Foundation, Change Congress, The American Academy, Berlin, Freedom House and iCommons.org. He is on the advisory board of the Sunlight Foundation. He has previously served on the boards of the Free Software Foundation, the Software Freedom Law Center, Electronic Frontier Foundation, the Public Library of Science, Free Press, and Public Knowledge. Lessig was also a columnist for Wired, Red Herring, and the Industry Standard.

    Lessig earned a BA in economics and a BS in management from the University of Pennsylvania, an MA in philosophy from Cambridge, and a JD from Yale. He has received honorary degrees from The University of Amsterdam, Athabasca University, and The Georgian-American University.

    CATHERINE CRIER is an Emmy and duPont-Columbia Award-winning journalist, and the youngest state judge to ever be elected in Texas, Catherine Crier is now a managing partner in Cajole Entertainment developing television, film and documentary projects.

    A Dallas native, Crier earned her Bachelor of Arts degree in political science and international affairs from the University of Texas and her Juris Doctor from Southern Methodist University School of Law. She began her career in law in 1978 as an Assistant District Attorney then Felony Chief Prosecutor for the Dallas County District Attorney’s office. From 1982 to 1984, Crier was a civil litigation attorney with Riddle & Brown, handling complex business and corporate matters. In 1984, she was elected to the 162nd District Court in Dallas County, Texas as a State District Judge. During her tenure on the bench, Crier also served as Administrative Judge for the Civil District Courts and worked extensively with the ABA, National Judicial College, and Texas Legislature on legal issues.

    Shortly after her reelection to a second term on the bench, a chance meeting with a television news executive led to a dramatic career change. In September, 1989, Crier was hired to co-anchor the premiere evening newscast on CNN. Additionally, she co-anchored Inside Politics, all election coverage, and hosted Crier & Company, a talk show covering news, politics and international issues. Crier joined ABC News in 1993, where she served as a correspondent and as a regular substitute anchor for Peter Jennings on ABC’s World News Tonight, as well as a substitute host for Ted Koppel’s Nightline. She also worked as a correspondent on 20/20, the network’s primetime news magazine program.

    Crier was awarded a 1996 Emmy for Outstanding Investigative Journalism for her work on the segment “The Predators” which examined nursing home abuses throughout the United States. In October of ’96, Crier became one of the founding television anchors for the Fox News Channel, with her prime time program, The Crier Report, a live, hour-long nightly show, during which she interviewed the leading newsmakers of the day. Additionally, she co-anchored the evening news, election coverage and Fox Files, a magazine news show aired on the parent network. Catherine joined Court TV’s distinguished team of anchors in November 1999. She served as Executive Editor, Legal News Specials, in addition to hosting Catherine Crier Live, a fast-paced, live daily series, covering the day’s “front-page” stories, until joining Cajole Entertainment in 2007.

    Crier released her first book, the NYTimes bestseller, The Case Against Lawyers in October, 2002. Her second book, A Deadly Game: The Untold Story of the Scott Peterson Investigation became a #1 NYTimes bestseller and was followed by Contempt—How the Right is Wronging American Justice, and Final Analysis: The Untold Story of the Susan Polk Murder Case. Her fifth book, Patriot Acts—What Americans Must Do to Save the Republic, was released on November 1, 2011.

  12. @E.Tolle

    ANONYMOUS has done a LOT more with the information than just post in comment sections…you have NO idea…BUT, when you share the information with EVERY possible agency you can—and they IGNORE it—or tell you: “Let it go”…WHAT ELSE CAN YOU DO? Seriously? Even top journalists have been shown the information…

  13. Anonymous, I got it. But with all due respect, our biggest problem is really… what can be done about it? How can you change things with this special awareness that you so eloquently speak of?

    I ask because involvement with OWS teaches one that it does little to no good to harp on issues….only by deciding to make a change and educating then rallying people towards that change do things get done. Individual becomes collective.

    Talking about it for years on end in the comment section of someone’s blog is about as purposeful as yelling from a street corner that the end is near….no offense meant by any means, it’s just that we’re all in dire need of not only change, but of cognizant leadership with the special grasp that you so obviously have that can place this wisdom into areas where it can be seen for what it is, an abomination and one that will not stand in a so-called civilized society.

    None of this is meant as derision, far from it. But there does come a time when we all have to do whatever it takes to ratchet systems up so that TPTB can no longer hide behind ways of life that serve only them, at the expense of everyone else. I’ll support your efforts in whatever way I can.

    If we can’t effectuate change, we’re done.

  14. Our biggest problem is the focus on security investors. Government agencies stand up for the security investors – who are not your creditor. There is no one standing up for the borrower. Borrowers remain victims.

    Think about it. These security investors wanted to make a nice bundle on above- market interest rate investments. They wanted YOU to pay cash flows to them to fund their pensions — while you slowly put yourself into foreclosure.

    We have no agency to stand up for us. DOJs failed.

  15. Option One is now American Home Mortgage Servicing Inc. All owned by Wilbur Ross —among the biggest distressed debt buyers.

    Wilbur knew — the subprime was already classified default debt, before the refinances, and that he got a great deal purchasing the “debt” from H & R Block.

    Oh yeah. Wilbur was involved in the distressed debt purchasing of coal mines. Safety compromised. Coal miners died.

    Dealing with a big power player. The little people mean nothing.

  16. Wake Up! This should be an Ahaaaaa! Moment.
    You really have no idea do you about how foreign organizations in 1994 took control –globally — of your individual cash convering equity into debt nationwide in an unregulated lawsless secondary markert.

    Starting with individuals financial, tax, secondary market obligations sending individuals preapproved secondary marketing offers from private equity & hedge mangers who convert equity of these individuals into debt.

    H&R Block, Inc. is a diversified services corporation that
    was organized in 1955 under the laws of the State of Missouri(the “Company”). It is the parent corporation in a two-tier holding company structure as a result of a corporate
    restructuring effected in March 1993.

    The second-tier holding
    company is H&R Block Group, Inc., a Delaware corporation and the direct owner of all of the shares of the Company’s primary operating subsidiary corporations. Such primary operating subsidiaries consist of H&R Block Tax Services, Inc., CompuServe Incorporated and Block Financial Corporation

    In November 1993, the Company acquired MECA Software, Inc.(“MECA”), a Delaware corporation involved in developing, publishing and marketing personal productivity software products designed to assist individuals in managing personal finances and in preparing their income tax returns

    Block Acquisition Corporation (“BAC”), an indirect wholly-owned subsidiary of the Company

    In connection with the MECA
    transaction, the Company also acquired all rights to certain software code and editorial content marketed by MECA and therebyeliminated a significant portion of MECA’s royalty obligations. MECA is a wholly-owned subsidiary of H&R Block Group, Inc.

    Among the products marketed by MECA are TaxCut (trademark), a top-rated personal income tax return preparation software developed by Legal Knowledge Systems, Inc., a subsidiary of MECA, and Managing Your Money (trademark), computer software designed to assist individuals in managing personal finances

    Managing Your Money is expected to complement the
    financial services offered by Block Financial Corporation and the on-line information services offered by CompuServe Incorporated

    Among the products marketed by MECA are TaxCut (trademark), a top-rated personal income tax return preparation software
    developed by Legal Knowledge Systems, Inc., a subsidiary of MECA

    through its wholly-owned subsidiary, H&R Block Group, Inc.) sold its 100% interest in its indirect wholly-owned subsidiary,
    Interim Services Inc.

    Underwriting Agreement dated April 13, 2000

    SEC” Registration Statement Nos.
    333-33655 and 333-33655-01

    SOLD TO UNDERWRITERS:
    Salomon Smith Barney Inc.
    Chase Securities Inc.
    Goldman, Sachs & Co.
    Morgan Stanley & Co. Incorporated
    Banc One Capital Markets, Inc.
    Blaylock & Partners, L.P.

    THE BANK OF NEW YORK (Formerly Irving Trust)
    (Exact name of trustee as specified in its charter)

    IF NOT A U.S. NATIONAL BANK IDENTIFY STATE:
    STATE: NEW YORK

    BLOCK FINANCIAL CORPORATION
    OBLIGOR
    STATE OF DELAWRE

    Bank of New York
    Corporate Trust Powers
    Organization Certification Registration 33-21672, 33-29637, 33-6215 Exhibits 1a and 1b, incorporated by reference, Consent of Trustee 33-44051.

    “EXCEPTIONS AND LOOPHOLES”
    AFFILIATIONS WITH OBLIGOR.

    IF THE OBLIGOR IS AN AFFILIATE OF THE TRUSTEE, DESCRIBE EACH SUCH AFFILIATION.

    None.

    PURSUANT TO RULE 7A-29 UNDER THE TRUST INDENTURE ACT OF 1939 (THE “ACT”) AND 17 C.F.R. 229.10(D).

    Supervising Authority
    Superintendent Banks of the State of new York
    Federal Reserve Bank of New York
    Federal Deposit Insurance Corp
    NEW YORK CLEARING HOUSE ASSOCIATION

    BORROWER: H&R Block, Inc. as GUARANTOR

    Mellon Bank, N.A. as Syndication Agent

    Fleet National Bank and Bank One, N.A. as Co-Documentation Agents

    AND

    The Chase Manhattan Bank, as Administrative Agent
    $1.9 BILLION 364-Day REVOLVING CREDIT FACILITY

    CHASE SECURITIES, INC. as Lead Arranger and Sole Book Manager

    CREDIT AND GUARANTEE AGREEMENT, dated as of November 1, 1999, among BLOCK FINANCIAL CORPORATION, a Delaware corporation, as Borrower, H&R BLOCK, INC., a Missouri corporation, as Guarantor, the LENDERS party hereto, and THE CHASE MANHATTAN BANK, a New York banking corporation, as Administrative Agent.

    “FMS” means Financial Marketing Services, Inc., a
    Michigan corporation

    “Acquisition” means the purchase by the Borrower of
    all of the issued and outstanding Capital Stock of Olde and FMS
    pursuant to the terms of the Acquisition Documentation.

    “Indebtedness” of any Person means,
    without duplication,
    (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind,
    (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments,
    (c) all obligations of such Person upon which interest charges are customarily paid,
    (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business),
    (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or
    otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed,
    (g) all Guarantees by such Person of Indebtedness of others,
    (h) all Capital Lease Obligations of such Person,
    (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty,
    (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances and
    (k) for purposes of Section 6.2 only, all preferred stock issued by a Subsidiary of such Person.

    The Indebtedness of any Person shall include the Indebtedness of any other entity(including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

    “Affiliate” means, with respect to a specified
    Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Controlwith the Person specified.

    “Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving Loans hereunder, expressed bas an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be
    (a) reduced from time to time pursuant to Section 2.6 and
    (b) reduced or increased from time to time pursuant to assignments by or to such Lender and Acceptance pursuant to which such Lender shall have assumed its Commitment

    “Confidential Information Memorandum” means the
    Confidential Information Memorandum dated September 1999 and furnished to the Lenders.

    Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

  17. H&R Block Inc • 10-K • For 4/30/94 EXHIBIT 21

    SUBSIDIARIES OF H&R BLOCK, INC.

    The following is a list of the direct and indirect subsid-
    iaries of H&R Block, Inc., a Missouri corporation. All active
    subsidiaries do business under their corporate names listed below
    or close derivatives thereof:

    Jurisdiction in
    Name which organized

    H&R Block Group, Inc……………….. Delaware (1)
    Block Investment Corporation………… Delaware (1)
    HRB Management, Inc………………… Missouri (2)
    H&R Block Tax Services, Inc…………. Missouri (2)
    H&R Block Eastern Tax Services, Inc….. Missouri (3)
    H&R Block of Dallas, Inc……………. Texas (3)
    HRB Partners, Inc………………….. Delaware (4)
    H&R Block and Associates, L.P……….. Delaware (5)
    HRB Royalty, Inc…………………… Delaware (3)
    BWA Advertising, Inc……………….. Missouri (3)
    H&R Block Canada, Inc………………. Canada (3)
    H&R Block (Nova Scotia), Incorporated… Nova Scotia (6)
    H&R Block (Guam), Inc………………. Guam (3)
    H&R Block Limited………………….. New South Wales (7)
    H&R Block The Income Tax People Limited. New Zealand (3)
    Block Financial Corporation…………. Delaware (2)
    Franchise Partner, Inc……………… Nevada (8)
    Companion Financial Corporation……… Utah (8)
    Companion Insurance, Ltd……………. Bermuda (8)
    BFC Investment, Inc………………… Delaware (2)
    MECA Software, Inc…………………. Delaware (2)
    Legal Knowledge Systems, Inc………… Pennsylvania (9)
    Live Free or Die Software, Ltd………. New Hampshire (9)
    Great American Software, Inc………… New Hampshire (10)
    Capitol Software, Inc………………. New Hampshire (10)
    CompuServe Incorporated…………….. Ohio (2)
    CompuPlex Incorporated……………… Ohio (11)
    CompuServe Systems Integration
    Group Southwest, Inc……………… Texas (11)
    CompuServe Canada Limited…………… Canada (11)
    CompuServe Consulting Services
    (UK) Limited…………………….. United Kingdom (11)
    CompuServe Information Services
    (UK) Limited…………………….. United Kingdom (11)
    CompuServe Information Services GMBH…. Germany (11)
    CompuServe Information Services AG…… Switzerland (11)
    CompuServe Information Systems SARL….. France (11)
    CompuServe AB……………………… Sweden (11)
    CompuServe Information Services, B.V…. The Netherlands (11)
    Access Technology, Inc……………… Massachusetts (12)
    PM Industries, Inc…………………. Kansas (12)

  18. “James B. Lockhart III, Vice Chairman of WL Ross and former Director of FHFA”

    http://www.reuters.com/article/2012/03/09/idUS221790+09-Mar-2012+BW20120309

    http://en.wikipedia.org/wiki/James_B._Lockhart_III

    A coincidence? Hm.

  19. AND… I made a mistake. Bloch brothers have nothing to do with Walker. I confused them with Koch. That was pretty damn close but not close enough. Sorry about that.

  20. I find that very interesting.

    1) I never knew H&R Block was the brainchild of the Bloch brothers, known for backing up some of the most reactionary republicans in this country, Walker among them.
    2) I did know that it was a tax preparation outfit. I actually used them a couple of times when I became self-employed.
    3) What I have a very hard time understanding, is how such an outfit makes the switch from strictly tax preparation to mortgages. Obviously, deregulation has to have a lot to do with it. Bill Black, can you please come over and straighten that out?

    All this screams for a serious clean up.

    http://en.wikipedia.org/wiki/H%26R_Block

    H&R Block is a tax preparation company in the United States, claiming more than 24.5 million tax returns prepared worldwide, with offices in Canada, Australia and Brazil. The Kansas City-based company also offers banking, personal finance and business consulting services.

    Founded in 1955 by brothers Henry W. Bloch and Richard Bloch, Block today operates 11,000 retail tax offices in the United States, plus another 1,700 abroad. Block offers its own consumer tax software called H&R Block at Home (formerly TaxCut), as well as online tax preparation and electronic filing from their website

  21. …and if you were at all confused by the H & R Block, to Option One, to Sand Canyon to American Home Mortgage, to AHMSI (and wasn’t there a recent posting that there wer 2 AHMSIs: 1 in MD & 1 in___?) AHMSI IS CHANGING ITs NAME to HOMEWARD RESIDENTIAL, not that Wilbur Ross has intentional obfuscation at heart. (and the beat goes on.)

  22. I neglected to add to my post below, that about 1 year ago or so I had an interesting email excahnge with the executive vice president of one of the largest broker / originators for Option One Mortgage in Florida, wherein he informed me that it was “standard operating procedure for them to execute an allonge endorsed in blank and forward it along with the original note still endorsed to the originator to Option One after closing the loan.”
    When I responded by asking how these allonges along with the original notes could possibly be used to properly transfer the notes to a REMIC trust I received no response….

    The implications of a “standard operating procedure” to create an allonge to a brand new promissory note should be obvious.
    Perhaps we can call it “Separating the note from the note”.

  23. Virginia Supreme Court rules in favor of the homeowners since 2007-08!

    http://bryllaw.blogspot.com/2012/04/virginia-most-foreclosure-cases-may.html

  24. Virginia Supreme Court rules in favor of the homeowners since 2007-08!
    http://bryllaw.blogspot.com/2012/04/virginia-most-foreclosure-cases-may.html

  25. So then Option One goes belly-up in 2008 and Wilbur Ross, (AHMSI), buys all of Option One’s *Servicing Rights*, (none of the actual assets of course), and after Option One is dead H&R Block forms SAND CANYON CORPORATION, ( NO, Sand Canyon is NOT just a name change from Option One. It’s a completely separate and new corporate registration ..see the California Corporation Records online).
    Sand Canyon is essentially a shell corporation that according to it’s president, Dale M. Sujimoto, “Holds or owns NO residential real estate mortgages.”, (See Sujimoto’s affidavit in the now famous, Wilson federal bankruptcy case in Louisiana),
    So WHAT was the purpose of setting up Sand Canyon Corporation?
    Well one thing for certain that we DO know is that THOUSANDS of, (obviously fraudlent), assignments of mortgage FROM Sand Canyon Corpoartion TO various securitized trusts continue to be executed and filed in recorders offices right up to the date of THIS posting….YEARS after the closing dates of the trusts of course.

    A hallmark of almost every forclosure action brought in the name of one of the Option One formed securitized trusts is also the filing of one or or more allonges (endorsed in blank), purporting to give provenance to the claim of legal and proper transfer of the note into the plaintiff trust(s), however taken into consideration with the obviously bogus Sand Canyon mortgage assignments, it’s clear that neither the original notes or the mortages ever transfered properly from Option One to the trusts.

    Wilbur Ross’ AHMSI has wrapped itself in the corporate IDENTITY of the dead Option One even to the extent that AHMSI’s telephone caller I.D. actually says: “Option One Mortgage” when they call borrowers and their literature even says “formerly known as Option One”

    The more you look into the H&R Block, Option One, Sand Canyon Corporation, Wilbur Ross and AHMSI, connections the more the whole mess starts to look like one of the biggest “corporate grave robberies” of all time.

  26. Good post –
    Wall Street and the Banks state that the home owner just made a bad purchase . Bull Shit, the home owner was blindly fleeced of his earnest money, savings, home improvements and mortgage payment over a number of years. All based upon a hyper inflated appraisal and a loan issued based upon false pretense. The problem is that the home owner cannot identify the real thief. Worst yet the government and federal judges continue to protect the criminals for their own self-justification.
    GO GREEN – Clean UP CONGRESS !
    FIRE DeMarco ! Next election – Make your Vote count !

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