Another Ruse: Realtors Gleeful over Equator Short Sale Platform

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Editor’s Comment:

Banks have adopted a technology platform to process short sale applications. It is called Equator, presumably to imply that it equates one thing with another, and produces a result that either gives a pass or fail to the application. In theory it is a good thing for those people who want to save their homes, save their credit (up to a point) and move on. In practice it essentially licenses the real estate broker to take control over the negotiations and police the transactions so that the new “network” rules are not violated. This reminds me of VISA and MasterCard who control the payment processing business with the illusion of being a quasi governmental agency. Nothing could be further from the truth, but bankers react to net work threats as though the IRS was after them.

Equator is meant as another layer of illusion to the title problem that realtors and title companies are trying to cover up. The short sale is getting be the most popular form of real estate sale because it is a form of principal reduction where there is some face-saving by the banks and the borrowers. The problem is that while short sales are a legitimate form of workout,  they leave the elephant in the living room undisturbed — short sales approved by banks and servicers who have neither the authority nor the interest in the loan to even be involved except as an agent of Equator but NOT as an agent of the lenders,  if they even exist anymore.

So using the shortsale they get the signature of the borrower as seller which gives them a layer of protection if they are the bank or servicer approving the short-sale. But it fails to cure the title defect, especially in millions of transactions in which Nominees (like MERS and dummy originators) are in the chain of title. 

The true owner of the obligation is a group of investor lenders who appear to have only one thing in common— they all gave money to an investment bank or an affiliate of an investment bank, where it was divided up and put into various accounts, some of which were used to fund mortgages and others were used to pay fees and profits to the investment bank on the closing of the “deal” with the investor lenders. As far as the county recorder is concerned, those deposits and splits are nonexistent. 

The investor lenders were then told that their money was pooled in a “Trust” when no such entity ever existed or was registered to do business and no attempt was made to fund the trust. An unfunded trust is not a trust. This, the investor lenders were told was a REMIC entity.  While a REMIC could have been established it never happened  in the the real world because the only communications between participants in the securitization chain consisted of a spreadsheet describing “closed loans.” Such communications did not include transfer, assignment or even transmittal or delivery of the closing papers with the borrower. Thus as far as the county recorder’s office is concerned, they still knew nothing. Now in the shortsales, they want a stranger the transaction to take the money and run — with no requirement that they establish themselves as creditors and no credible documentation that they are the owner of the loan.

This is another end run around the requirements of basic law in property transactions. They are doing it because our government officials are letting them do it, thus implicitly ratifying the right to foreclose and submit a credit bid without any requirement of proof or even offer of proof.

It gets worse. So we have BOA agreeing to accept dollars in satisfaction of a loan that they have no record of owning. The shortsale seller might still be liable to someone if the banks and servicers continue to have their way with creating false chains of ownership. But the real tragedy is that the shortsale seller is probably getting the shaft on a false premise — I.e, that the mortgage or deed of trust had any validity to begin with. 

The shortsale Buyer is most probably buying a lawsuit along with the house. At some point, the huge gaps in the chain of title are going to cause lawyers in increasing numbers to object to title and demand that it be fixed or that the client be adequately covered by insurance arising from securitizatioin claims. Thus when the shortsale Buyer becomes a seller, that is when the problems will first start to surface.

Realtors understand this analysis whereas buyers from Canada and other places do not understand it. But realtors see shortsales as the salvation to their diminished incomes. Thus most realtors are incentivized to misrepresent the risk factors and the title issues in favor of controlling the buyer and the seller into accepting pre-established criteria published by the members of Equator. It is securitization all over again, it is MERS all over again, it is a further corruption of our title system and it is avoiding the main issue — making the victims of this fraud whole even if it takes every penny the banks have. Realtors who ignore this can expect that they and their insurance carriers will be part of the gang of targeted deep pockets when lawyers smell the blood on the floor and go after the perpetrators.

Latest Changes to The Bank of America Short Sale Process

by Melissa Zavala

When processing short sales, it’s important to know about how each of the lending institutions handles loss mitigation and paperwork processing. If you have done a few short sales in Equator with different lenders, you may see what while your same Equator account is used for all your short sales at all the lending institutions, each of the servicers uses the platforms in a different manner.

Using the Equator system

When processing short sales, it’s important to know about how each of the lending institutions handles loss mitigation and paperwork processing. Many folks already know that Equator is the online platform used by 5 major lenders (Bank of America, Wells Fargo, Nationstar, GMAC, and Service One). If you have done a few short sales in Equator with different lenders, you may see what while your same Equator account is used for all your short sales at all the lending institutions, each of the servicers uses the platforms in a different manner.

And, my hat goes off to Bank of America for really raising the bar when it comes to short sale processing online. And, believe me, after processing short sales with Bank of America in 2007, this change is much appreciated.

New Bank of America Short Sale Process

Effective April 13, 2012, Bank of America made a few major changes that may make our short sale processing times more efficient.  The goal of these changes is to make short sale processing through Equator (the Internet-based platform) at Bank of America so efficient that short sale approval can be received in less than one month.

First off, Bank of America now requires their new third party authorization for all short sales being processed through the Equator system. Additionally, the folks at Bank of America will be working to improve task flow for short sales in Equator by making some minor changes to the process.

According to the Bank of America website,

Now you are required to upload five documents (which you can obtain at www.bankofamerica.com/realestateagent) for short sales initiated with an offer:

  • Purchase Contract including Buyer’s Acknowledgment and Disclosure
  • HUD-1
  • IRS Form 4506-T
  • Bank of America Short Sale Addendum
  • Bank of America Third-Party Authorization Form

And, now, you will have only 5 days to submit a backup offer if your buyer has flown the coop.

The last change is a curious one, especially for short sale listing agents, since it often takes awhile to find a new buyer after you learn that the current buyer has changed his or her mind.

Short sale listings agents should be familiar with these changes in order to assure that they are providing their client with the most efficient short sale experience possible.


28 Responses

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  5. Consumers’ scammed ‘DEED’ in Exchange for ‘Title Loan Commitment Sales Contract’

    Deed in name of Consumer
    Title Loan Commitment in name of Syndicated Lender dba Investor -Seller’Originator’

    See patent: RESPA COMPLAINT TITLE LOAN COMMITMENT INSURANCE SYSTEM

    DESKTOP ‘DATA VARIABLES’

    http : // http://www.scribd.com/doc/94575269/RESPA-COMPLIANT-TITLE-INSURANCE-COMMITMENT-SYSTEM-Pat-20050060203-Robosigned-Virtutal-Documents-when-purchased-Title-Loan-Commitment-Sales-Contract

    Can you recognize ‘how many’ documents, instruments, that can be virtually created, printed, purchased, exchanged, recorded that need to be robosigned

  6. I did not read through all the comments for this article as there are several different ways of looking at this. I was directed to the article by a friend. I have read and used information from this site for many years but have not kept up with all the information as of late. I am just responding to the editors comments. I would like to say that I currently work for a title company/attorney as a short sale negotiator on behalf of homeowners. I essentially do the job of processing the short sale so the realtor doesnt have to. Though I was morally torn intially with the short sale process, I did find it to be a way for homeowners to get out from under the mortgage rather easily. My main comment to the editors note is that even though a short sale is being done and it appears to be a ruse, a title search is still performed during the closing process and the servicing bank is required to be the “owner” according to public record. All the necessary assignments are required for us to accept and use the short sale approval being issued by the short sale bank. If they cant prove they “own” the loan, then we cant accept their payoff letter and give them any money from closing. Now I have Quoted “owner” and “own” because the short sale bank is usually the owner on public record but not the true owner/investor. As I have researched and found, the mortgages are pooled in trusts and certificates issued against the mortgages in the trust. The purchaser of those certificates or “investor” is very much involved in the short sale process. The short sale bank that I am dealing with on face is simply a paperwork processor and transaction facilitator. Once everything is processed, an appraisal conducted and all numbers are worked out, the investor has the final say on whether they will accept the deal. Very rarely am I told who the investor actually is but I have seen Fannie and Freddie as big ones and I do know when I am working a Fannie or Freddie loan by the type of paperwork they ask for. These two are also a bit less secretive about the fact they are the investor. Government “loans” (i.e. FHA, USDA) are a different beast entirely as all the processing is done jointly by the short sale lender and government openly. There is no behind the scenes investor to speak of. Short sales, like most loans, have their servicer and investor/owner just like any other mortgage.

  7. @Nancy

    I saw this and thought you might like to take a look.

    Countrywide University
    Participant Guide
    Institutional Mortgage Services Group

    http://www.kevindnewman.com/KDN/Portfolio_guides_files/GEN-INIMSG-101-PG-v.2.0%20INSTRUCTOR.pdf

  8. I miss cubed2k…

    http://www.bizjournals.com/washington/prnewswire/press_releases/Virginia/2012/05/17/CG08477

    According to IRTA: Organized Barter Systems Growing To Alleviate Financial Stress
    PR Newswire

    PORTSMOUTH, Va., May 17, 2012

    PORTSMOUTH, Va., May 17, 2012 /PRNewswire/ — The current global recession has placed enormous financial pressure on every business sector, every level of government and virtually every individual on the planet. The prolonged economic downturn has tested peoples’ confidence in once-respected financial institutions and government-managed monetary systems.

    The recent proliferation of barter exchanges, community currency systems, online barter sites, government sponsored trade systems and mutual peer-to-peer credit clearinghouses are proof of the validity of alternative capital systems’ ability to provide meaningful alternative markets to allow businesses and individuals to maintain their status quo and even prosper.

    China, France, Ireland and other countries are seriously examining the feasibility of launching their own government sponsored barter systems. On December 8, 2011, The City of London released a report titled “Capacity Trade and Credit: Emerging Architectures for Commerce and Money” with the goal of creating a barter hub of sorts for Europe in London. In the U.S. more than twelve states have legislation pending to create State currencies to serve as an alternative to the currency distributed by the Federal Reserve and commercial banking system.

    “The barter and trade industry is justifiably receiving an enormous amount of attention now from both the public and private sectors as a viable solution to replace lost business activity caused by the recession,” says Michael Mercier, President of the International Reciprocal Trade Association, (IRTA), the thirty three year old advocate for the global barter and trade industry, http://www.irta.com. IRTA anticipates a continued sharp increase in new private, quasi public/private and government backed trading systems in the next decade.

    In the U.S. government officially recognized organized barter via the Tax Equity and fiscal Responsibility Act (TEFRA) of 1982 which categorized barter exchanges as third party record keepers and mandated that all barter sales were taxable events that required the submission of 1099B forms to the IRS. Many other countries are now using the U.S.’ approach towards organized barter as their taxation model as they move towards final approval of their own barter and trade systems.

    As the global recession continues, and with little optimism about a meaningful recovery happening anytime in the near future, all types of barter and trade systems will continue to flourish and provide much needed long-term financial relief to business owners and individuals alike. And when the global economy does finally turn for the better, organized barter and alternative currency systems will continue to play a meaningful role in increasing commerce and improving the bottom lines of businesses and consumers worldwide.

    For more information please contact Ron Whitney, Executive Director, IRTA, 757-393-2292, ron@irta.com

    SOURCE International Reciprocal Trade Association

  9. Why have the ‘experts’ looked in the obvious places primary market for law? Because they are sheep who lead us to slaughter.

  10. 1989 Pawnbrokers Act huge.
    Guess they did not teach that in law school

  11. My research reveals that “Consumers” in Secondary Market (any property with lien) under exception of RESPA are not allowed to get a loan in their name. Therefore, the existing encumbrances, are acquired during the Title Commitment, Sales Contract with your friendly ‘brokerage’ who is under obligation to enter into pipelin sales contract which becomes exchange in secondary market.

    You as a consumer who pay cash for a property have no idea that cash was exchanged for the existing lien on the property.

    That the credit company, CREDCO, RELS, Experian, INVISCO , … report a consumer paying cash in form of ‘real estate receivable as note for 30 years at xx.xx% affect their ‘available’ cash used for ‘alternative investment’.

    Appears these companies control the title information for all transxctions secondary market and primary market and treated properties with liens BUYERS/SELLERS using ‘special’ credit reports.

    INVESTORS purchase private lien reports.

    Consumers do not purchase real estate for a very long time now. The government approved monopolies do exist. The obligations of the Central Bank are real. The idea was to forward the liens and allow the cash flow advanced by consumer to hedge the credit risk of private investors alternative investments.

    The equity of the United States was ‘exchanged’ for debt, liens, Purchase Money Liens where ‘Buyer/Seller’ are in agreement, Title Agent creates documents, instruments, using desktop applications, and subscription services, as a member of a particular affilaite and a broker real estate lawyer (Lawyers Title Corp – Regional Financial Group – Merger – LandAmerican Financial 1997) and (First American Real Estate Solutions dba CORELOGIC strategic partnership Norwest Mortgage, Inc., conduit to Norwest Asset Securities Corp) and (JPMorgan MORServ, Inc. conduit) and …MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. ‘BORROWER’ June 1998 – NEW Security Agreement recorded with ‘USPTO’ creates GOODS & SERVICES EXCHANGE SECONDARY MARKET Promissory Notes in exchange for DEEDS, each DOCMagic Promissory Note and each Title Agent, and each secret closing where INVESTOR acquires Promissory Note affixed Agreement# does incorporate by reference hereafter prior and existing agreements, secondary market goods and services, underwriters operating through a ‘reciprocal exchange’ where BUYERS/SELLERS are in agreement, e.g. the ‘Due Upon Sale Clause’ removed’; ‘acceleration clause for NOTE sold to INVESTOR default allows more suitable borrower’ for consumer abandonement of ‘NOTES’ SOLD to INVESTOR and INVESTOR sale to UNDERWRITER Structurred Settlement FUND ‘REMIC’ is a collection of like notes … not loans … notes in form of ‘individual variable annunities’ with options that may allow for a loan during a debt settlement, that may allow for a 5-year payout, etc.

  12. Short Sales are ‘debt settlements’ between ‘Investor’ who purchased NOTES and ‘Investor’ acquisition new notes.

    1989 Pawnbroker Act allowed Resolution Trust Co exchanges debt securities for cash …

    Allowed Resolution Trust Co with Fannie Mae and Freddie Mac and ‘Underwriters’ and ‘Lawyers’ of a particular pipeline and supplychain to utilize ‘process’ service marks and trademarks ‘goods and services’ placed into public domain for consumer consumption.

    Exchange goods for a receipt -Promissory Note is a receipt – with a Sales Agreement Number affixed, cash in exchange for ‘Note’ …
    is how ‘Central Bank’ placed all ‘liens’ as exchanges ‘Sales Contract in exchange for a DEED placed in name of consumer allowed obligation of Central bank to become ‘asset’

  13. Nancy Drewe EQUATOR, LLC S/N 77839772 SHORT-Sales GOODS & SERVICES transactional data processing, electronic data interchange (EDI),electronic commerce

    E EQUATOR FINANCIAL SOLUTIONStrademarkia.com

    EQUATOR, LLC LOS ANGELES, CA 90045 The USPTO makes this data available for search by the public so that individuals can locate ownership information for intellectual property, much the same way a county might make real estate…

    Like
    Comment (3)
    Share
    16 hours ago

    Nancy Drewe DRI BROKER BY DRI Management Systems, Inc.
    Application service provider (ASP) featuring software for use in loan management

    CARLO F. VAN DEN BOSCH
    SHEPPARD MULLIN RICHTER & HAMPTON LLP
    650 TOWN CENTER DR FL 4
    COSTA MESA, CA 92626-1993

    E EQUATOR FINANCIAL SOLUTIONS (sm)
    GOODS & SERVICES ‘INTERCHANGE’
    SHEPPARD MULLIN RICHTER & HAMPTON LLP,
    650 TOWN CENTER DR, FL 4 COSTA MESA, CA 92626-1993 .
    The E EQUATOR FINANCIAL SOLUTIONS trademark is filed in the category of Computer & Software Services
    & Scientific Services
    Carlo F. Van den Bosch
    813 trademarks 16 hours ago

    Nancy Drewe REOTrans, LLC
    Suite 500 6060 Center Drive
    Los Angeles, CA 90045
    Registration 3839212 Serial 77839772
    Application service provider (ASP) software automating and optimizing workflow operations, transactional data processing, electronic data interchange (EDI), and electronic commerce;

    Software as a service (SAAS)
    field of automating and optimizing workflow operations,
    transactional data processing,
    electronic data interchange (EDI), and electronic commerce.

    Scientific and technological services and research and design relating thereto; industrial analysis and research services; design and development of computer hardware and software; legal services. 15 hours ago

    DeleteNancy Drewe Solutions for the Default Servicing Industry
    Equator, LLC fka REOTrans, LLC
    Technology innovator providing infrastructure
    Software as a Service (“iSaaS”)
    solutions that offer advanced transactional functionality,
    data aggregation &analysis, & e-commerce capabilities to financial institutions & key participants within the financial services & residential real estate industry.

    Equator’s web-based platform provides industry participants with end-to-end workflow management tools, comprehensive decisioning transaction automation capabilities within a vibrant online Marketplace that facilitates residential transactions.

    201-500 employees http : //www.equator.com
    Founded 2003 15 hours ago

  14. Cue the ‘Dragnet’ Theme. The Department of Justice and the FBI have opened an inquiry about JPM’s trading loss, the papers report, citing anonymous sources who give the usual caveats (The probe “is at an early stage and it isn’t clear what possible legal violation federal investigators may be focusing on,” says the Journal; the anonymice “briefed” on the investigation emphasize to the Times that “the inquiry was at an early stage and that it was routine for federal authorities to open a case after a big bank disclosed a huge blunder”). The investigators are looking into what management knew, and when they knew it, given CEO Jamie Dimon’s infamous dismissal of concerns about the chief investment office as a “tempest in a teapot” less than a month before the $2 billion bungle came to light. For those feeling déjà vu, this is separate from the previously reported SEC investigation. Wall Street Journal, Financial Times, New York Times

    The votes are in. At JPMorgan’s annual

  15. @DCB,

    The more things change and the more they stay the same.

  16. @ENRAGED
    “Weimar all over again and the people waiting for a savior who, ”

    All you europeans just cant get over that minor bump in the road to globalism—we have it so good inthe US today that we could cut standard of living by 2/3 and still be better off than 90% of the world—at least thats what the World Bank, IMF and FEd Reserve think—just lets not talk about it for about 6 months-then with no 3rd term option and both parties sharing the blame—and no alternatives to R’s and Ds ——there is no savior out there ——and a pretty clear future—the more you look back the more clear the future

  17. DCB,

    “…but at the end of the today that means you pay the debt which keeps going up because it bears interest —–or you take your frozen pay-check to buy a loaf of inflation adjusted bread…”

    And then, it’s Weimar all over again and the people waiting for a savior who, by the way, will know right off the bat that austerity is the best way to create riots and that to keep people happy, one needs only to invest heavily into infrastructures and into the youth. Isn’t that what Hitler did? Damn, isn’t that… Oh my god! I don’t want to go there.

    And you know what? I don’t believe that model was patented. Napoleon before him did just that. Comme to realize, they were one and the same… minus a few personal hatred they satisfied in their own ways.

    Hmmm… I wonder if reincarnation does exist…

  18. @DCB,

    Remind me to get a gun… I want to remain delusional but only up to a point.

  19. REOTrans, LLC
    Suite 500
    6060 Center Drive
    Los Angeles, CA 90045
    Trademark Owner History
    Filing Date 2009-10-01
    Registration Number 3839212 Serial Number 77839772
    Application service provider (ASP) featuring software for use in automating and optimizing workflow operations, transactional data processing, electronic data interchange (EDI), and electronic commerce; Software as a service (SAAS) services featuring software in the field of automating and optimizing workflow operations, transactional data processing, electronic data interchange (EDI), and electronic commerce.

    Scientific and technological services and research and design relating thereto; industrial analysis and research services; design and development of computer hardware and software; legal services.

    REOTrans, LLC Trademarks: Justia Trademarks “Our records do not show any trademarks currently owned by this company.”

    Equator, LLC (formerly known as REOTrans, LLC) is a technology innovator providing infrastructure Software as a Service (“iSaaS”) solutions that offer advanced transactional functionality, data aggregation and analysis, and e-commerce capabilities to financial institutions and key participants within the financial services and residential real estate industry. Equator’s web-based platform provides industry participants with end-to-end workflow management tools, comprehensive decisioning and transaction automation capabilities within a vibrant online Marketplace that facilitates residential transactions. Equator’s business is nationwide and employs a staff of 200 associates in five locations.

    Specialties Solutions for the Default Servicing Industry

    2010-08-24: NOTICE OF ACCEPTANCE OF STATEMENT OF USE E-MAILED

    Type Privately Held Company
    Size 201-500 employees Website http : //www.equator.com
    IndustryInformation Technology and Services
    Founded2003

    E EQUATOR FINANCIAL SOLUTIONS

    Howard Levine CRD #1602877
    Registered Titles Broker-Dealer Agent
    Sanders Morris Harris Inc.
    State Registrations
    California
    Colorado
    Florida
    Georgia
    Kentucky
    Louisiana
    Maryland
    Michigan
    Missouri
    Nevada
    New Jersey
    Texas

    Prior: Oppenheimer & Co. Inc. NY 2/20/2003 – 10/17/2008
    Sanders Morris Harris Inc.
    Compare Sanders Morris Harris Inc. Financial Advisors

  20. insurance brokers and risk management experts

    The Equator Principles are a voluntary set of principles that have been adopted by certain banks in connection with project finance deals

    The Equator Principles Association (EPA)

    The Equator Principles explained
    Shepherd & Wedderburn LLP
    Patrick Bell
    United Kingdom

    February 16 2012
    The Equator Principles (EPs) are a voluntary set of principles that have been adopted by certain banks in connection with project finance deals. In particular, the EPs are aimed at ensuring that social and environmental issues are considered when banks and other financial institutions are providing debt finance for infrastructure projects. The banks and other financial institutions that have signed up to the EPs are known as Equator Principles Financial Institutions (EPFIs).

    By way of background, the first set of EPs were originally launched in 2003 by the International Finance Corporation, but the management of the EPs was put on a more formal footing when the EP Association was established in July 2010. The EP Association is governed by a set of Governance Rules, which provide guidance to existing and prospective EPFIs on the processes for the management, administration and development of the EPs.

    Why? Part of the rationale behind the EPs is the recognition that, as banks and financial institutions provide the debt finance to make project deals happen, they are therefore in a strong position to negotiate and influence the terms of the contractual agreements with an eye on social and environmental factors. The EPs are also widely accepted by many global banks and so, by complying with the EPs, EPFIs are able to hold themselves out as responsible lenders. In the event that large projects are scrutinised, they allow the EPFIs funding the project to point to the social and environmental standards that have been used to evaluate the project.

    Importance

    The EPs currently only apply to projects with a capital value in excess of $10 million so it is important to be aware of the EPs when undertaking projects of this value. Although they are not mandatory legal requirements, the fact that over 70 banks and financial institutions worldwide have signed up to the EPs means they will be insisted upon by banks and financial institutions in the project financing documentation for many projects. These EPFIs have agreed to comply with these standards as all EPFIs have undertaken not to provide loans for the development of a project where project sponsors refuse, or are unable, to demonstrate that the project will be constructed and operated in accordance with the environmental, social and governance considerations set out in the EPs.

    Category A – Projects with potential significant adverse social or environmental impacts that are diverse, irreversible or unprecedented;
    Category B – Projects with potential limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures; and
    Category C – Projects with minimal or no social or environmental impacts.
    As Category C projects are such low risk, there is no need for these projects to comply with any requirements. The strictest requirements are for Category A projects, some of which also apply to Category B projects.

    Covenants – The EPs gain a form of legal footing in the finance documentation in project finance deals. This occurs by their inclusion and undertakings given by the project company, as borrower, to the bank lenders in the credit agreement. These are agreements or promises to do or provide something, or to refrain from doing or providing something, which is binding on the party giving the covenant. There is standard wording contained in the EP Loan Guidance which deals with clauses on representations and warranties, conditions precedent, covenants and events of default. This forces the borrower to comply with the covenant. However, rather than a breach of a covenant leading to an automatic event of default, the EPFIs are usually required to work with the borrower to help bring it back into compliance “to the extent feasible” when there has been a breach.

    Update of the EPs

    As well as providing a general overview, the purpose of this article is to highlight that the EPs are currently undergoing a period of review and updating. The EP Association has been running a consultation process since July 2011 off the back of a strategic review. They are now aiming to finalise and launch the third version of the EPs (EP III) between May and July 2012. The discussions have included industry and clients, peer financial institutions, and civil society organisations and have focused on the scope of the EPs, reporting, and transparency and governance issues, including membership criteria. One of the suggestions in the current review is that the scope of the EPs should be extended to cover corporate loans. This was because some projects were being disguised as corporate loans in order to avoid having to comply with the EPs. It will be interesting to see the end result of the review and what changes are in store for the EPs in EP III.

  21. E EQUATOR FINANCIAL SOLUTIONS is CARLO F. VAN DEN BOSCH of SHEPPARD MULLIN RICHTER & HAMPTON LLP, 650 TOWN CENTER DR, FL 4 COSTA MESA, CA 92626-1993

    GOODS AND SERVICES:
    Application service provider (ASP) featuring software for use in automating and optimizing workflow operations, transactional data processing, electronic data interchange (EDI), and electronic commerce;

    Software as a service (SAAS) services featuring software in the field of automating and optimizing workflow operations, transactional data processing, electronic data interchange (EDI), and electronic commerce

    Owner: EQUATOR, LLC LOS ANGELES, CA 90045

    CARLO F. VAN DEN BOSCH
    SHEPPARD MULLIN RICHTER & HAMPTON LLP
    650 TOWN CENTER DR
    FL 4
    COSTA MESA, CA 92626-1993

    International Class Code(s): 042
    US Class Code(s): 100, 101
    Primary Class:
    Scientific and technological services and research and design relating thereto; industrial analysis and research services; design and development of computer hardware and software.

  22. WASHINGTON — Two debt collection agency executives pleaded guilty Friday to charges stemming from a $10 million fraud scheme against Connecticut-based Webster Bank, a participant in the Troubled Asset Relief Program, federal officials said Tuesday.

    Oxford Collection Agency Chairman Richard Pinto and his son Peter Pinto, the company’s president and chief executive, admitted to collecting debts for various clients and routinely withholding those debts in a “client backlog,” then using the funds for their own needs.

    Each pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud. They face a maximum of 35 years in prison and a $20 million fine.

    “The Pintos defrauded clients, investors, and Tarp recipient Webster Bank in a $10 million scheme in which they collected debts on behalf of clients, concealed what they truly owed those clients in return for their work, and used Webster Bank to fund their fraud,” Christy Romero, the special inspector general for Tarp, said in a press release announcing the guilty plea. “Individuals committing fraud against TARP banks will be held accountable and brought to justice by SIGTARP and our law enforcement partners.”

  23. You are self-delusional. WSJ today 5/16/12 back page C20 provides some interesting not oft shown stats. Chase —that cant quite figure out how they lost somewhere between $2 billion and who knows the topend———that just didnt understand the complexity of the derivatives trades [aka “bets”] or implications of the bets—–has total admitted bets outstanding of $70 TRILLION [with a “T”]—–poor bankrupt, taxpayer owned BoA has bets outstanding of $68 TRILLION.

    Wells Fargo only has $3.2 TRILLION bets out there–a mere 10-20 times capital. Other favs like Citi arent disclosed. The US total debt is now $17 TRILLION, was 16 last time i looked a few months ago—something like $50K for every human in the US. Now in these terms one can sort of understand the numbers—-although I will readily admit –it is impossible for me to see how $50 K [before interest rates rise] for every man woman and child can ever be repaid–absent devauation of curreny about to about 10% of current purchasing power—somewhere there in line with Greece

    I think it would be well for every US citizen to look long and hard at what is happening in Greece today—-when everybody finally realizes that they cant pay the national debt owed to offshore hedge funds, Chase etc. and eat both. Yes the US has one huge advantage over Greece–the US can print money at will—-but at the end of the today that means you pay the debt which keeps going up because it bears interest —–or you take your frozen pay-check to buy a loaf of inflation adjusted bread—–the Greeks realize this—-they are chosing to refuse pmt of the foreign debt and keep eating—-there is widespread rioting etc—the top vote-getting party is a supposed far left-wing national socialist party——it appears the far-right natl socialists are also growing—

    the two centrist parties together pulled about 40% of the votes

    Im sure US authorities are looking at this development with some trepidation —–and have already decided in wake of stuff like OWLS sit-ins—–that the best thing to prevent the outbreak of Greece-style democracy–is to toss those pesky non-centrist organizers and followers in those camps–so the bankers dont lose their quadrillion dollar bets–because who could afford to bail them out if they did?

    –those camps are made for you.

  24. @DCB,

    “GOVT guys—you need to step in here and start hanging these frauders–they are doing this blatantly”.

    Man you’re too cute!!! Let us know how you make out please.

  25. CORELOGIC, MERS, EQUATOR. What next? And where do I get a suspicious feeling that it is yet another way to avoid paying legitimate fees and comply with all the applicable laws…?

    Nah. Must be all in my head. They wouldn’t do that…

    Anyway: the good news is that it WILL blow up. The better news is: when it does, there’s gona be so much cleaning up to do that millions of jobs will open up overnight, what with investigations, clearing of titles, prosecutions, jailing, etc. And I know that I know that I know that those FEMA camps were designed… just for bankers and white collar criminals! (Don’t shoot me. Everybody is entitled to dream)

  26. The short sale seller is inclined to leap at the deal as if her shackles just rusted through and fell off—no longer shackled to that house slowly sinking beneath the waves —and accumulating years’ of deferred maintenance. The short seller MUST get legal representation because this is the best bait and switch con-game going today. The implicit “mis-represenentation” is that the liability on that pesky missing note is extinguished magically —“just sign the deed and all will be forgiven” is the nature of the contract. When one is induced to sign a paper–a contract or deed where the other party lacks intent from day 1 to go through with the deal–it is theft by deception [misrepresentation of the fact of intent to perform the promised future performance.

    Follow the UCC —either get the note back marked “paid in full”—or a lost note affidavit WITH A SURETY BOND that lasts the full statutory period –check that usually long. Anything less than this is malpractice.
    To be sure you get the original note –you really need a trail of custody—where has it been? You still have risk the original was stolen–ergo the custody trail–and indorsements–and fine if bigbank is offering this stuff–let them guarantee performance—–and be sure its big bank agreeing in your jurisdiction–by properly authorized representative ——“BIG BANK, FOR ITSELF’ —–ie not BIGBANK AS TRUSTEE——if they throw that sort of offer ie the deal is agreed by BIGBANK AS TRUSTEE-run dont walk to the door—-you may just be giving your house away for noting—and the deal is not guaranteed by big bank–it is being done by the collection agency–without authority

    there are several traps for even the wary here–the problem is that even lawyers are not actually trained to detect blatant fraud —–they tend to believe that the servicers are reputable—that they do not engage in planned fraudulent transactions—-so some of the nastiets bait and switch actions can slip right thru–and 3 years from now when the new collection agency shows up and seeks to collect of the real note–bigbank will claim ignorance—the servicer will have defenses or be gone from your jurisdiction—-

    that is when you will go uppend the deal—no other choice but to accept your house was stolen on false pretenses and time to boot the new occupant———-mess mess mess—–the realtors think they have the leg up–the buyers will be more apt to do the deal if the title is straight from the old owner–but if the owner was defrauded by misrepresentations and the property was stolen —-the mortgage–dot may not be extinguished

    GOVT guys—you need to step in here and start hanging these frauders–they are doing this blatantly—–regular attorneys and certainly homeowners are not equipped to face off planned frauds—standing around to see what happens —is just deferring the day of reckoning here—particularly where the non-bank servicers/collection agencies are concerned—-they ship the money offshore ASAP and are disappearing as fast as the trust accounts at MF Global–only govt investigators trained to identify systematic fraud—not self deluded by the desire that the deal be true—-are able to see these schemes for what they are.

  27. Investors are not lenders…sigh.

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