We have come a long way in six years. Back in 2007 almost everyone thought that the mortgage bonds were valid instruments issued by a valid entity that owned valid mortgages.
Now we have Reuters news service reporting that “home loans underlying securities were rotten from the start.” Thus we are crossing that line where the critical mass of thinking is changing the assumptions and presumptions about whether the mortgage bonds were real and about whether the mortgage loans were real. It is becoming increasingly apparent that neither the mortgage bonds nor the mortgage loans had any basis in reality.
Paperwork was all fabricated for the purpose of allowing the banks to pretend ownership over the bonds and the underlying loans plus justifying the purchase of insurance and other hedge products and justifying the claim of a loss on investments the banks never made. The government rescued the banks from a loss they never incurred — basically money that should have been refunded to the investors and lowering or negating the balance due on any loans made to homeowners. Currently the banks are selling these nonexistent investments consisting of nonexistent mortgage bonds issued by nonexistent trusts with nonexistent assets based upon nonexistent loans.
The largest buyer of this crap is the Federal Reserve. This would be the same agency that declared that the collapse in the mortgage markets was “contained.” That was in 2007. The question could legitimately be asked whether the government officials were stupid or simply lying. And the same question could be asked now.
So we really have several issues that are now due to go in reverse despite the apparent drumbeat of foreclosures that continue to be rubberstamped by judges who don’t know or don’t care to know the truth about mortgage loans today. The two main issues are ownership of the alleged loan and the actual balance of the unpaid account receivable.
Regulators and officers of law enforcement are just on the cusp of understanding that the money that showed up at the time of the closing with the borrower/homeowner was stolen and that the theft was covered up under layers of paperwork. Alan Greenspan, who was chairman of the Federal Reserve at the time the banks were on a spree of highway robbery, admitted that neither he nor the 100 economists employed by the Federal Reserve understood one word of the so-called securitization instruments. It was his opinion that the “free market” would correct whatever was wrong. He now concedes that he was wrong to conclude that the market was “free” and he was wrong to conclude that any self correction mechanism could or would work.
As the stench rises from the mortgage bonds and the details are revealed as to how the banks handled the money one might be convinced that this awareness will “trickle down” to the homeowners and borrowers. Don’t hold your breath. Most people in the marketplace and most judges have somehow reached the conclusion that they can lift a stick that is burning on one end and still say “the stick is not burning” because they are holding the end that is not burning.
It may be years yet before there is general consensus that the entire mortgage process was rotten from top to bottom. Thus it is an absolute requirement to litigate, admit nothing, and seek discovery from each key point in the illusion that was called the “securitization chain.” On nearly all “self evident” points there is a lack of corroboration, evidence or truth despite all appearances to the contrary that were carefully constructed by the banks. This illusion is what keeps lawyers from feeling comfortable about denying the documents that were apparently signed, about the default on a loan that was apparently made, and consigning themselves and their clients to the inevitability of the foreclosure.
In the end, when the accounting is done in accordance with generally accepted accounting principles, it will be understood that millions of people were forced out of homes they owned based upon loans with no balance due — documented by loan documents with no validity possessed by strawmen who were covering for the Wall Street banks as they diverted investor money from mortgages to insurance and from loans to credit default swaps. These strawmen were covering for the Wall Street banks as they diverted the loan documents from the investors to the banks themselves, enabling the banks to sell counterfeit bonds based on counterfeit mortgages securing counterfeit notes referencing counterfeit account receivables — all for 100 cents on the dollar and then another hundred cents on the dollar and then another hundred cents on the dollar.
With Wall Street banks sucking up all the money existence somebody had to lose a lot of money. The answer was of course the investors who were tricked and deceived into buying investments that the investment bank would never buy for its own account, based on loans that the investment bank would never have approved if they were using their own money. In fact, the investment bank would never have approved the loans even if they were not using their own money — but for the fact that they were making 100 cents on the dollar several times over on each loan regardless of whether it was a good loan or a bad loan.
And the investment banks knew for a fact that the fund managers of pension funds and other investors would not and indeed could not invest in high risk securities. So they it look like these were low risk securities exempt from securities regulation when in fact they were running a PONZI scheme that diverted the money from the investment vehicle to the pockets of the bankers.
In the end it is the little guy, the common man, who suffers the consequences. If he owns a house he’s going to lose it even though there is no balance due on the loan he received. If he manages to keep the house he’s going to pay a loan that does not exist to a creditor that never loaned him the money but who received payment on the fictitious loan several times over. It is not just the taxpayers who are getting hit and who are entitled to restitution from the financial services industry. It is everyone who lives and works (or who wants to work) who pays the price. It is a society based upon freedom and fair play that has turned into debt bondage and foul play.
ROTTEN FROM THE START: REUTERS
AG: Lawyer e-mails indicate collusion to control foreclosure billing
http://www.denverpost.com/realestatenews/ci_23833815/ag-lawyer-e-mails-indicate-collusion-control-foreclosure
BANKS NOW OWNERS IN COMMODITIES BUSINESSES JUST LIKE THE OWNERS OF REAL PROPERTY CHANGED
Federal Reserve Board Announces Additional Foreclosure Review Settlement
http://www.jdsupra.com/legalnews/federal-reserve-board-announces-addition-78136/
You Will Survive! How to Overcome the Emotional Trauma of Foreclosure
http://realtytimes.com/rtpages/20130812_traumaofforeclosure.htm
Filed under: CDO, CORRUPTION, Eviction, evidence, foreclosure, GARFIELD GWALTNEY KELLEY AND WHITE, GTC | Honor, Investor, Mortgage, Servicer | Tagged: account receivable, appraisal fraud, auction fraud, bailout, Bank of America, Bloomberg, Chase Bank, commodities, disclosure, Federal reserve, foreclosure, foreclosure fraud, Reuters, securitization |
I think The Man A is right about Obama in wanting to get reelected, but I think it deeper than wanting to get reelected, but needing people to to have desperate hope in him so it would drive 10 million foreclosed families to the polls most Dem and those who were GOP voter are not going to the polls because they also need someone to stand up for their properties.
So Obama gets it both ways, but I believe that those backing him stroked his ego and present him with these with these plans as in HAMP, but this is out of Obama field, and right out the gate as with the Obamacare, Obama thought wrongly after he had the banks agree to the program, that bankruptcy judges could change the rates & terms of these mortgages (any season loan officer could have told him this was not true)!
So after the set back they failed to realized that most of these loans had 2nd mortgage behind them and could not be modified without the subornation of the 2nds. In a year long set back was the lenders telling the Treasury that they were not receiving income documents by fax, mail or pigeons, so after a year the applicants were all instructed to sent the docs to Treasury!
Obama believe he was smarter than Jamie Dimon and Lloyd Blankfein who were making $20 million a year. As in 2013 Dimon bonus was $39 million and Blankfein was $23 million. There are many that graduate from Harvard and not all make Forture 100 company money, and Obama not in that class.
Obama had Warren Buffett in his ear telling him this and that while granting a loan to Goldman knowing that hey would get bank status, which would give them TARP money. AIG money and money from the Discount Window. Plus Buffett (Berkshire) is the largest shareholder of Wells Fargo Bank, and at the time the same with UnitedHealth!
Obama I think is trying to save face in these settlements with JPMorgan and the up coming $50 million settlement is a concession the banks need to make to try and make this thing go away. I think also they realize the harm Fannie & Freddie have done and is not giving the shareholder any of this profit as they already paid back the Fed Gov its $190 billion.
It either take these proceeds and spread it around or unleash the sure to come lawsuits IF the attorneys ever catch on to why these bank are reaching deals, and it is about all parts of the securities!
@the A man – that’s what I thought, too, but it’s appearing Christine is right. Obama is a poser.
The A Man,
That theory would hold if… at the onset of his 2nd term, Obama had reversed direction 180 degrees. Last i checked, not only hasn’t he but he appears intent on going as far past the Bushes as he can in the undoing of this country.
Naw. I believed in the guy the first time around. Until he named a Monsanto guy as the head of the FDA, that is. And to consider Larry Summer for Bernanke’s replacement is… well… whatever. Untrustworthy sure comes to mind.
I think the reason the Banksters havent been Criminally charged and all this is coming out now is because Mr Obama wanted to get re-elected. If he would have done this in his first term he would have been politically assasinated (not reelected) by the banksters. I hope I am not naive
NEVER AGAIN
So the Fed and OCC work out the Independent Foreclosure Review Board but we got a just so happen unseal case from May 2011 that tell that the securities are a fraud as the bank used false documentation to foreclose but the OCC said it could not handle the “No Standing” because it was a civil matter.
However if we got a “No Standing” situation that fraudulent assignment were submitted to the courts to conduct the foreclosure it criminal as the fraudulent parties have claim a right to something that does not exist!
Something wrong because I submitted to the SEC in Aug 2011 that Ginnie Mae did not own the mortgage loans in their pools and where illegally foreclosing, and Szymoniak claim with these others but not with the Ginnie Mae Pool! So why have they not address Ginnie Mae? Goveernment!
This article spells out pretty much everything JPM has been guilty of. As Black asked, “Why haven’t charges been filed against the bankers?”
http://www.azcentral.com/business/consumer/free/20130812many-legal-millstones-weighing-down-jpmorgan.html
The many legal millstones weighing down JPMorgan
By Christina Rexrode and Marcy Gordon Associated Press Mon Aug 12, 2013 3:24 PM
Kathleen Day, a professor at Johns Hopkins University who lectures on the history of financial crises, questions whether the bank’s board of directors is doing its job to rein in managers from excessive risk.
“The allegations are serious and unusual,” Day says, “and the list just seems to go on and on.” [Yep. That, it does…]
The following are excerpts from Bill Black’s last tirade. Click on the link for his complete post. Is it going to make a dent? Nope. Only one thing will: if we stop feeding those morons and if we demand their resignations.
Ain’t gonna happen.
http://www.financialsense.com/contributors/william-black/is-b-of-a-the-most-embarrassing-department-of-justice-suit-ever
Is B of A the Most Embarrassing Department of Justice Suit Ever?
By William K Black PhD
The Department of Justice’s (DOJ) latest civil suit against Bank of America (B of A) is an embarrassment of tragic proportions on multiple dimensions. In this version I explore “only” seven of its epic fails.
The two most obvious fails (except to the most of the media, which failed to mention either) are that the DOJ has once again refused to prosecute either the elite bankers or bank that committed what the DOJ describes as massive frauds and that the DOJ has refused to bring even a civil suit against the senior officers of the banks despite filing a complaint that alleges facts showing that those officers committed multiple felonies that made them wealthy by causing massive harm to others. Those two fails should have been the lead in every article about the civil suit.
The next most obvious DOJ fail, also ignored, was that the DOJ compounded the first two fails by congratulating itself for holding the frauds “accountable” for their crimes. One can only imagine the hilarity with which B of A senior officers in their mansions they bought with the proceeds of their frauds must have greeted the DOJ’s latest pratfall. If DOJ’s leadership cannot find the intestinal fortitude to renounce their infamous “too big to prosecute” doctrine they can at least have the decency to stop praising themselves for violating their oath of office and their duty to the Nation.
DOJ’s Gratuitous Gift to the Frauds
DOJ’s Grotesque Ethical Fail
Why Didn’t DOJ Sue B of A’s CEO for Originating “Toxic Waste” Mortgages?
Why does DOJ Pretend that B of A’s Fraud Only Occurred in 2008 in One Deal?
K, This link to these dox does not work. I have reported it.
Carie
There might be a post that might be of interest to you on Foreclosure Hamlet –
‘ The California non-judicial foreclosure is for chattel mortgages …
…and for those foreclosure defense professionals, ‘our guys’ who are making some ‘good luck’ with defenses, is there a way to pitch in to ensure that she makes her ‘best shot?’ Amicus briefs, whatever? Hats off! She’s done soooo much for all of us! Now, that’s a champion for the underdog!
http://4closurefraud.org/2013/08/13/case-number-02013cv00464-usa-vs-ace-sec-corp-et-al-complaint-in-other-szymoniak-qui-tam-case/?utm_source=rss&utm_medium=rss&utm_campaign=case-number-02013cv00464-usa-vs-ace-sec-corp-et-al-complaint-in-other-szymoniak-qui-tam-case
I haven’t read this yet. It’s posting from the Hamlet.
It’s sounding like Lynn’s case is a NEW case, or the ‘other half.’
Don’t know if/what it might hold for the rest of us if/when she prevails.
So I have Chase and Fannie in my case. How do I use Syzmoniak’s findings in my appeal (where I questioned ‘fact’ of assignment to FNMA)? THAT is much more important to me than the end of the world crap recently posted.
@Brian 8/12/13 4:14pm
The below is excerpted from the Dave Dayen article Brian posted. I’m unclear: Is the case referred to in Dayen’s article a NEW SUIT? The article is dated 8/12/13 referring to being “unsealed last Thursday.” Is this case ONGOING to be a FORTHCOMING 2013 finding to unravel this whole mess for us? Did Lynn take part of her earnings to hire attorneys to get to the bottom of this mess for the rest of us who can’t mount such a case? Can anybody clarify?
Your mortgage documents are fake! MONDAY, AUG 12, 2013 07:58 AM EDT
Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover horrifying scheme (Update)
BY DAVID DAYEN
Despite Szymoniak seeking a trial by jury, the government intervened in the case, and settled part of it at the beginning of 2012, extracting $95 million from the five biggest banks in the suit (Wells Fargo, Bank of America, JPMorgan Chase, Citi and GMAC/Ally Bank). Szymoniak herself was awarded $18 million.
But the underlying evidence was never revealed until the case was unsealed last Thursday.
Now that it’s unsealed, Szymoniak, as the named plaintiff, can go forward and prove the case.
Along with her legal team (which includes the law firm of Grant & Eisenhoffer, which has recovered more money under the False Claims Act than any firm in the country), Szymoniak can pursue discovery and go to trial against the rest of the named defendants, including HSBC, the Bank of New York Mellon, Deutsche Bank and US Bank.
This such be a wake up to the American public because this is what I been saying but my claim involves the Ginnie Mae side of lending while Szymoniak claim involve the Fannie and Freddie side of lending.
MERS was robo signing for the Ginnie Mae pooled loans. Washington Mutual government loans that were foreclosed by Wells Fargo are the key to the entire fraud that Ginnie Mae and Federal Reserve are running.
The Federal Reserve needs that money to come back into the Fed but because the issuer is dead, the scheme cannot be hide as a loan Note that never actual left the lender/issuer. This is the issue that BOA is having with Countrywide loan and also that Chase is having with the loans they received from the FDIC with Sept 25, 2008 seizure of the bank.. We cannot not look at the FDIC role in this crime because they gained by not taking the lose to their insurance fund!
“Collapse is the only way, and we shouldn’t fear it.” I tend to agree… trying to fix piecemeal what isn’t fixable will only prolong the insanity and cause more collateral damage. The ultimate result will be a collapse anyway.
Bu if people were serious, they long would have stopped feeding those monsters called government, congress and banks. How? By refusing to pay taxes and walking out of jobs where taxes are automatically taken out. 2 months without military, cops and employees would have been long enough for those in charge to take notice. People would have also made a run on the bank. Why they never did is a mystery…
Yes, slowly, we have admission that things are screwed. Very slowly it’s being disclosed.
What happens when things are shown to be totally skewed to the 1%, as we all know them to be?
What will happen when the Fed’s QE program is shown to be nothing more than a multi-trillion dollar-bad loan laundering device, again towards the 1%?
It’s sleight-of-hand….now you remember it, or see it, now you don’t. You were dislocated by the Broncos game or Shark Week.
Collapse is the only way, and we shouldn’t fear it. What should be feared is continuing down this path of rent extraction and being told to pick between two morons every four years. Hillary is a guarantee, no matter what we want or say. Who says? Don’t question.
Grow up. It’s now or never.
I’m off to the Andes. Maybe for good, if they’ll have me.
Fuck America.
David Dayen in Salon about Lynn Syzmoniak’s continuing efforts;
MONDAY, AUG 12, 2013 04:58 AM PDT
Your mortgage documents are fake!
http://www.salon.com/2013/08/12/your_mortgage_documents_are_fake/
Neil has stated as fact what others find out later.
Articles like these make me very happy that we have Neil. Indeed, everything is rigged, and has been in a big way since 1913. Lindbergh Sr. and McFadden and others knew immediately what was wrong, and in these 99 and a half years since the Federal Reserve came into existence, those guys have been proven right. So it’s taken a century for the Fed to bring us to the inevitable endpoint: a currency collapse (which has already happened but which is not admitted or even discussed in mainstream media) and economic destruction borne not by those who caused it (i.e., the bankers and the financiers and the rent-seekers) but by everyone else, the regular people who just want to live their lives and enjoy themselves.
Even before the Fed came into being, Lindbergh had this to say about money and finance (from 1911): “Our financial system is a false one and a huge burden on the people … I have alleged that there is a Money Trust. The Aldrich plan is a scheme plainly in the interest of the Trust.”
He also noted that: “This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress… The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government.”
This is of course what Neil is also saying, and it needs to be said. Modifications are not enough–we have to change the whole system. If it takes a thousand cuts of homeowner and investor lawsuits to bring the beast down, then so be it.
Neil, your work is thoroughly appreciated and I have great respect for everything you do. However, I’ve sent multiple emails and called a dozen or so times requesting my subscription be canceled to no avail, and I’m still being charged. Please advise what additional steps are necessary to remove the unwanted charges.
Respectfully
DHV333@gmail
Surely the fraud cannot continue ……. just hang in there for as long as you can. ……. eventually the system will have to reset with a moratorium, jubilee or holiday.
Maybe someone should look into the borrower in custody program.
This relates to how they “loans” were originated.
Can you say twinning a stream of revenue?
The FED is running some scam via the Borrower in Custody program.
Quote:
“Loans, and any related documents, must remain in the location designated in the BIC Collateral Certification. Removal and relocation without approval of the Federal Reserve Bank of Cleveland is prohibited and may result in termination of the BIC arrangement.
PERFECTION OF SECURITY INTEREST
All extensions of credit must be secured to the satisfaction of the Reserve Bank by collateral that is acceptable for that purpose. As such, the Federal Reserve Bank will file a UCC-1 Financing Statement”
I challenge anyone to find a single UCC-1 filed on favor of the Fed in any state of the union.
Everything is rigged. That statement is so true. On top of all the fraudulent documents, etc. is the fact that many of the so-called originators and many of the servicers are out of business, bankrupt and/or merged, all the better to fool you with. The big shell games go on and see if you can find the shell with the real mortgage loan and the real securitization under it.
You are doing great work!