Fannie and Freddie Demand $6 Billion for Sale of “Faulty Mortgage Bonds”

You read the news on one settlement after another, it sounds like the pound of flesh is being exacted from the culprits again and again. This time the FHFA, as owner of Fannie and Freddie, is going for a settlement with Bank of America for sale of “faulty mortgage bonds.” And most people sit back and think that justice is being done. It isn’t. $6 Billion is window dressing on a liability that is at least 100 times that amount. And stock analysts take comfort that the legal problems for the banks has basically been discounted already. It hasn’t.

For practitioners who defend mortgage foreclosures, you must dig a little deeper. The term “faulty mortgage bonds” is a euphemism. Look at the complaints there filed. When they are filed by agencies it means that after investigation they have arrived at the conclusion that something was. very wrong with the sale of mortgage bonds. That is an administrative finding that concluded there was at least probable cause for finding that the mortgage bonds were defective and potentially were criminal.

So what does “defective” or “faulty” mean? Neither the media nor the press releases from the agencies or the banks tell us what was wrong with the bonds. But if you look at the complaints of the agencies, they tell you what they mean. If you look at the investor lawsuits you see that they are alleging that the notes and mortgages were “unenforceable.” Both the agencies and the investors filed complaints alleging that the mortgage bonds were a farce, sham or in other words, a PONZI Scheme.

Why is that important to foreclosure defense? Digging deeper you will find what I have been reporting on this blog. The investors money was not used to fund the REMIC trusts. The unfunded trusts never had the money to buy or fund the origination of bonds. The notes and mortgages were never sold to the Trusts even though “assignments” were executed and shown in court. The assignments themselves were either backdated or violated the 90 day cutoff that under applicable law (the laws of the State of New York) are VOID and not voidable.

What to do? File Freedom of Information Act requests for the findings, allegations and names of investigators for the agency that were involved in the agency action. Take their deposition. Get documents. Find put what mortgages were looked at and which bond series were involved. Get a list of the mortgages and the bonds that were examined. Get the findings on each mortgage and each mortgage bond. Use the the investor allegations as lender admissions admissions in court — that the notes and mortgages are unenforceable.

There is a disconnect between what is going on at the top of the sham securitization chain and what went on in sham mortgage originations and sham sales of loans. They never happened in the real world, no matter how much paper you throw at it.

And that just doesn’t apply to mortgages in default — it applies to all mortgages, which is why all the mortgages that currently exist, and most of the deeds that show ownership of the property have clouded and probably “defective” and “faulty” titles. It’s clear logic that the government and the banks are seeking to avoid, to wit: that if the way in which the money was raised to fund the loans or purchase the loans were defective, then it follows that there are defects in the chain of title and the money trail that were obviously not disclosed, as per the requirements of TILA and Reg Z.

And when you keep digging in discovery you will find out that your client has some clear remedies to collect the profits and compensation paid to undisclosed recipients arising out of the closing of the “loan.” These are offsets to the amount claimed as due. If the loan was not funded by the Trust, then the false paper trail used by the banks in foreclosure is subject to successful attack. If the loans were in fact funded directly by the trust complying with the REMIC provisions of the Internal Revenue Code, then the payee on the note and the mortgagee on the mortgage would be the trust — or if the loan was actually purchased, the Trust would have issued money to the seller (something that never happened).

And lastly, for now, let us look at the capital structure of these banks. A substantial portion of their capital derives from assets in the form of mortgage bonds. This is the most blatant lie of all of them. No underwriter buys the securities issued by the company seeking financing through an offering to investors. It is an oxymoron. The whole purpose of the underwriter was to create securities that would be appealing to investors. The securities are only issued when you have a buyer for them, and then the investor is the owner of the security — in this case mortgage bonds.

The bonds are not issued to the investment bank as an asset of the investment bank. But they ARE issued to the investment bank in “street name.” That is merely to facilitate trading and delivery of certificates which in most cases in the mortgage bond market don’t exist. The issuance in street name does not mean the banks own the mortgage bonds any more than when you a stock and the title is issued in street name mean that you have loaned or gifted the investment to the investment bank.

If you follow the logic of the investment bank then the deposits of money by depository customers could be claimed as assets — without the required entry in the liabilities section of the balance sheet because every dollar on deposit is a liability to pay those monies on demand, which is why checking accounts are referred to as demand deposits.

Hence the “asset” has been entered on the investment bank balance sheet without the corresponding liability on the other side of their balance sheet. And THAT remains that under cover of Federal Reserve purchase of these bonds from the banks, who don’t own the bonds, the value of the bonds is 100 cents on the dollar and the owner is the bank — a living lies fundamental. When the illusion collapses, the banks are coming down with it. You can only go so far lying to the public and the investment community. Eventually the reality is these banks are underfunded, under capitalized and still being propped up by quantitative easing disguised as the purchase of mortgage bonds at the rate of $85 Billion per month.

We need to be preparing for the collapse of the illusion and get the other financial institutions — 7,000 community and regional banks and credit unions — ready to take on the changes caused by the absence of the so-called major banks who are really fictitious entities without a foundation related to economic reality. The backbone is already available — electronic funds transfer is as available to the smallest bank as it is to the largest. It is an outright lie that we need the TBTF banks. They have failed and cannot recover because of the enormity of the lies they told the world. It’s over.

61 Responses

  1. Hman- first of all, Nationstar is a criminal organization staffed by $8.00 per hour imbeciles. And if the BOA involvement was due to countrywide, you should read Kemp v Countrywide. none of the notes ever made it into the trusts.

  2. I have a DOT with no date and no notarization. I have a LOan Application that the broker made “under the table” that I did not learn about for years which said my income was 80,000 more than the 7,000 it really was, that I had a decades old business which I never had, and that my home was 2-3 times its value. Since the bank never verified that income, of course they gave me any loan he asked for. I got a loan that was NEVER AFFORDABLE from the first payment which was double my disability income, but they did give me the $30 K I sought…with an extra $157,000 loan….. Clever guys. : This was all planned out years ago. I have a case in court….WF has submitted a 2nd Demurrer, even though the first one is not yet completed~ My judge has two mortgages with WF but won’t step down.

    It’s not just the banks….often it is the courts too. Everyone should go to their county recorder’s office, look up their judges and wife’s mortgages and Deeds of Trust and see who their bankers are.
    I haven’t found a judge yet that didn’t have 13 to 20 properties. No wonder they give ours away so easily….their rewards from the banks could be properties for pennies.

    Anyone have any suggestions for me. My attorneys are stepping down soon since they discovered they can’t take much money from me. So, they aren’t doing any of the things a real foreclosure lawyer might have done. Too sad.

  3. Hey—Banksters—guess what—you can’t SELL fake, non-existent “mortgages”, but you can sure as hell foreclose on them!! ‘Cause who gives a crap about the people, right? Whoopie!!

  4. the foreclosure is to WASH the TITLE. They have no colorable claim if the mortgage was not recorded. Title is the key to the res.

  5. No lender will generally make a loan on any life estate to the party who holds that life estate, including an irrevocable one. The “irrevocable” simply means I can’t change my mind in my example and take back possession of the property before the end of the life of the party I granted a life estate. If I decide a year later that you’re a creep or for any reason want my property back, it’s tough for me. The life estate was “irrevocable” and that means by me.
    Now, a lender could make a new loan if it wanted to, but they mostly don’t. Too may complications.

  6. Have to correct something fwiw. I don’t think a life estate is a fee simple estate. I don’t remember, but 99% I’d say not – because a life estate holder can’t convey title himself in fee simple. The reason is because his own estate ends at his death. If I gave KC a life estate and he later gave Joe an estate, Joe’s estate ends when KC’s does – when KC croaks. So, Joe actually had an estate, but only for the duration of KC’s life, at which time the estate is terminated. All rights come back to me or my own designee. Not relevant to what’s going on with fraudclosure. Still wanted to correct that.

  7. KC – What warranty deeds? I have to precede this by saying I’m no authority on lien-theory states which use a “mortgage”, not a deed of trust. But, KC, what warranty deed? The only time a warranty deed is in play is when a property is being sold, not encumbered by a home loan. A warranty deed generally differs from a quit claim deed in that a warranty deed warrants some things (like good and merchantable title) while a qc doesn’t. A qc deed merely conveys whatever interest the grantor may have, if any. A warranty deed is the most common deed used to convey ‘fee simple’ title to real property in a purchase transaction between a buyer and a seller. Fee simple title may be and is encumbered with home loans. If one bought a home, one should have gotten a warranty deed (generally). It’s not in play when one gets a home loan (x that the lender requires that the borrower own the home in “fee simple absolute” and has the right to
    encumber it.
    As far as a “life estate” goes, that is granted generally by deed (it could be created by express contract, I suppose) and imo is in fact subject to existing encumberances on a property. If I own a home and give you a life estate while I still owe ABC 100k, your life estate is subject to that loan. if the payments aren’t made, ABC will terminate my rights and yours in the property. If I have given you a life estate in my home, you have a right to possession and to do what you want with it during your lifetime (subject to existing encumberances). Generally, when you croak, the title (fee simple) reverts to me or someone I have designated. That’s why it’s called a “life estate” – it’s for the lifetime of the designated party (you).
    A leasehold estate is not an estate in fee simple; it’s not ownership. It’s a right to possession during its term. Every apartment renter has a leasehold estate, to put it in perspective.

    Didn’t you once reference your state’s homestead laws. I missed the “and” part….?

  8. Java,

    Sorry if I missed this what state are you in?

    I want to tell you it gets better. At some point you have to decide to continue to fight or let it go. I fought for almost 3 years. I lost my last case almost a year ago and the home still hasn’t been sold. I didn’t appeal because the “bank” attorney said they would seek attorney fees and it was 2 big a risk for me based on the cases that were won on appeal in AZ. I have a family and didn’t want to risk the humility of the sheriff kicking my family out so I made a hard choice to move on and let my house go even though I wanted to kick these guys in the face.

    It’s been vacant about 10 months but I still check up on it, pull weeds etc…I still write & send letters/emails to people who I think might help & I see my servicer keeping them informed of their BS lies. I don’t know what authorities exactly have worked & what hasn’t but I can tell you that I’ve been contacted by Nationstar’s “compliance” dept in regards to a letter I wrote to the CFPB. My opinion is they have been the biggest help. I’ve written the AZ Dept of financial institutions, Secretary of State, AG, FOIA request, Trustee, etc…If you want to continue to fight put your heart into it & do it 100%. Don’t give up! Honestly, I don’t really know what I’m doing. I just lay out the facts and inconsistency in their stories and chain of titles.

    I continue to write frequently and again my date has been pushed back. Had I known I would be able to stay in my home another year without a payment I would have stayed put and put money in savings.

    Like I said at the start it does get better although it sucks at first. I don’t live with the stress of someone changing my locks or putting my personally belongings on the curb in front of my neighbors and kids. Whatever you decide best of luck and keep us posted.

  9. Exactly, KC…the want the land title. Took a long time to figure out what was going on and we get it!

  10. The attorneys who buy the charged off debt thru the 1038 exchange play dirty … and get away with it 99% of the time. This is one property they will never get! We are not friggin deadbeats!! And we certainly didn’t decide to stop payments! When BAC took over CW … they Did that All on their Own!!! Why?? They wanted the Title because they carry all the liabilities!!! Like Slander to Title! Medical and Hospital Bills when the Idiots pushed me over the Edge with their Lies, treble damages, ins Fraud! MBS Fraud Idenity Theft! !! I have letter dated in 2010 BOA is the owner. But they wont step up now and admit it! WHY? Another LIE?

    I have letter and response letter from CW dated Oct 16 2008 acknowledging receipt of our request and reminding us of the pre-payment costs. Oct 31, 2008 Charged Off. Nov 4th 2008 LP filed against title and Judicial Notice filed against Estate.

    There was NO Default!! Except the One they Created for their Books!!

    Case dismissed in May 2010 after I discovered it open….Tolling SOL?

    MERS assignment of Note and Mortgage thru sucessors chain filed on my B-day Sept 28, 2011.

    CW LP released Feb 2012 (dated Nov 2011).

    So here we are still trying to get a pay off … have had our title slandered twice since our 1st request in 2008.

    Couldn’t figure out why they wouldn’t take the money for the longest time. They don’t want the money, they don’t want the house! They want the Deed to the Land!

  11. paid mine to KC, the HOA tried to come after me for dues not paid, I told them excuse en moi, (well actually I called them blood suckers), says on county taxes HSBC is owner (still question of fact subject to my appeal) and I had infract continued to pay right up to my “abandonment” which was subject to a illegal unlawful detainer filing. there is SOOO MUCH wrong with my situation all I need is the rule of law to be applied to get justice. I have wrongful judgments against me on top of identity theft etc., darn right its more than just a house.

  12. They didn’t file the Warranty Deeds, the Deed where you as the Grantor granted and warrantied title Free and Clear of all liens to the Trustee.
    Ask yourself Why they didn’t file them?

  13. Why in tarnations do you think they claim you abandoned the property .. They cant FC! Except with the exceptions listed below and Homeowner association dues. I pay our HA dues 5yrs in advance. 🙂

  14. JG… Irrevocable Life Estate. Meaning title/assets can not be transferred til you croak… as Christine would put it.

    A debt collector may under certain circumstances fc on a revocable trust but not irrevocable! Except for Land Contract Breaches… like taxes, ins and maintenance. hint hint

    Free rent on a leasehold estate til you part this Earth. If that is what you want.

  15. Poppy, just yesterday, Again BOA played their yearly pay my ins and add themselves as mortgagee to our policy. Their money got sent back and they were removed as mortgagee and loss payee from our policy Again!.

    Every year I go up and pay FULL YEAR property tax bill on 1st day when the bills are mailed and the CC accepts payments. By the time BOA gets the statement … its to late. Their payments are sent back.

    Yet they still proclaim they pay the ins and taxes, Why? Its the only way to get FC! Same as reverse mortgage.

    We’ve had an umbrella policy for over 30yrs and BOA pays went to our auto ins also the first two years. But I am the kind of ‘ole gal who pays her own bills. If I need help, I will ask. I don’t care much for peeps to do me favors without 1st asking.

    Sorry BOA….. “sticks my tongue out” ……. LOL!

  16. Oh and BTW, last month I started receiving default notices again and threats to pay my insurance, as they are saying it is required in my contract, when in fact I have an escrow waiver..Hmm. This time, I am going to add Nationwide to the suit. They were at fault too. I repeatedly wrote them and asked they return the payment from BOA…this time, game on. Bring your checkbook kids, I am going to the mat, win, lose or draw! Cannot live like this every day of my life, never knowing when the other shoe is going to drop.

  17. @ java

    Same thing here, with BOA. Insurance payment by them, NO LAPSE. Paid the account with home and auto…on it. Created a suspense account, defaulted the mortgage with late fees paid first over the payment. 3 years in court. Did eventually get a settlement in May 2013, cost them $80,000. They had to pay all of the arrears, legal fees and I took nothing off the table. But the stress, detailed paperwork I had to produce, depositions, mediation (which I walked out on, bunch of bull shit) legal fees (for this case)…this is the reason this crap they pulled is a problem. You have no recourse because they sold all this shit and you cannot get to your lender to work out the problem, they created.

    Under the current setup you have no right to cure a problem and you have damages just by virtue of threats, intimidation, harassment, etc…by parties who own nothing. Had any of us been aware of this maze and breeding ground of “parasites” we would have availed ourselves of TILA remedies long ago. The “intent” to deceive is a real problem here and the courts are woefully inadequate in that, the set time frame, is grossly unfair when you are unaware of the defects in your contract or who you have a contract with. My piece…

  18. Oh I forgot to mention I was never late on mortgage in 15 years. What happened was I paid my property taxes (in nj that is another form of theft that is ready to crumble) directly but had to decide to miss a quarter because money got tight. Well WF swooped in and paid the past due amount , whacked me with fees and escrow and doubled my FIXED mortgage payment And then refused to accept my original payment amount each month. And here we are. Fought the scumbags for over 5 years which I feel good about as I don’t think they counted on that in the business model of theft and fraud.

  19. I Looked into BK but I didn’t think it was best option for me as I had some equity in house even after sheriff sale that I would have lost. So I will get the money after sale is completed although of course I would have much preferred to keep my house of 20 years. Now the best I understand even a BK will not stop since sale already took place…..looks like REDEMPTION OR Objection are only options left, although I could be wrong about this.

  20. I made up this figure (233k), but if the average home loan at F & F were 233k, 6B would handle a little over 26,000 loans. Wow – is that even a drop in the bucket – or is the 6b supposed to represent actual F & F losses on a gazillion loans, and if so, it that even a drop in the bucket?

  21. KC: “But I am sure those unfiled warranty deeds that have both spouses name on them …. means til both part Earth.” Huh?

  22. MS – you may well be on to something, but your communication…….
    I just tried to analyze what you said, but computer ate it. No energy to redo, so how bout you try again. (But I will remind you fwiw that a
    25% prepayment (80k existing – 20k new funds, the 20 in your 80 /20) doesn’t stop payment requirements for five years. It only creates a right for a re-forecast of the loan payments at the borrower’s demand)
    Also, imo no accounting method stopped the requirement for an appraisal supportiing the loan amt on any agency loan (if not others).

  23. They have to prove up in BK court to (just like in state court here).

    I cant sue BOA because they haven’t done anything (like file LP or Lawsuit), It was CW and MERS officer from law firm who slandered our title, ( so good attorney tells me).

    CW is dust in the wind.. Charged Off the Note Oct 31st 2008.

    The Lawyers …. they call me a Thorn. lol

    Java, BK13 is cheaper and gets you an attorney and trustee who gets that the debts are unsecured. It should buy you plenty of time and maybe give you more time with your family.

    No offense JG, but its late in the game for Java to find attorney.

  24. java – try (legal svcs of NJ). There is or was an attorney there who was part of a kick-a$$ team. Caveat: the family she helped had been messed over pretty good by the banksters imo.

  25. Java, have you thought about filing a CH13 and get a stay in BK?

  26. Java – you could always file something in public record, but it should be something not already adjudicated. You might file a Notice containing your take on irregularities in certain relevant documents (like the assignment, NOD, etc). On info and belief, one may not queer title after a foreclosure sale (because one no longer has an interest to queer against others). I’m not a lawyer and this isn’t legal advice.

  27. Hey Neil,

    One of those faulty mortgage bonds BOA sold has my husbands identity affixed to it, you could call it.. his street name.

    In Illinois, a married person can not use marital household as collateral without both parties consent. VOID! Not Voidable! Just VOID!

    The free rent thing does not fly with me, letting others gamble with my life estate .. HOCKY STICKS NO NO NO!. VOID is VOID!

    But I am sure those unfiled warranty deeds that have both spouses name on them …. means til both part Earth.

    I am not a lawyer, I never give legal advise… I make mistakes and I admit up to them. Oh.. And I think out loud to much.

    Many Blessings to All!

  28. Christine, I agree TILA and Reg Z are tried and true. Also FC on a life Estate in an Irrevocable trust is a NO NO! The title could not have gone to a trust with a lien (i.e… no liens). The notes had to be unsecured for that reason.

    But the rest of us want to know how they did it and why? Most of all I want to know why they would charge off performing loans?
    Why? Why? Why?

  29. Oops! And I meant “I’m going to throw this in…”

  30. MS,

    Come up with cases won on whatever you’re peddling. Come up with cases where you, personally, testified as an “expert”. Then we’ll talk.

    Exactly what anyone with half a brain has been asking of… NG! (on whose site you come to peddle, mind you…)

  31. MSoliman …Now, do as you want with it !

    Come now the plaintiff who files its complaint …..
    I. Introduction

    This Case Arises from controversy concerning Real Property situated in the State of ________________at ___________________in the county of _________________ Plaintiffs wire into the loans closing and settlement was by an ABA wire .The wire was rerouted offshore.The existing liens of record were supposed to be satisfied or paid. They were not. The amount due the prior beneficiary as shown in the payoff statements were moved off title Title was therefore made free of all liens and encumbrances subject to the liens of record.The ABA wire that was rerouted off shore was placed into the infamous depositors account. This was used to issue common trust shares or common stock. The common stock was then parlayed at 10:1 into preferred shares. The Trust preferred shares were traded as 30 day commercial paper for up to one year .The lien of record typically equal 80 percent of the new loan origination. In .this was the originating lender offered an 80 20 combo loans and used the 20 percent piece to pay down the existing first mortgage to 60 percent

    These loans were prepaid as they were based off the demand for pay off years five years down the road. This allowed the lenders to do away with true valuations and appraisals. Instead they relied on the accounting basis in assets or accrual accounting to ratchet up the 80 percent at time of payoff –So take your contract payment “Interest Only” and multiply it by 60 months. Subtract it from the total amount you owe and you should come up with a 75% to 80 percent loan that prepays itself every month till the sixth year. In every payment statement is the embedded derivatives and bond trader’s calculations for appearing as a servicer. It’s a simple code to unravel and upon doing so you will see the loans were charged off and tossed out as of October 2008.So what is in foreclosures? Nothing …other than a FDCPA effort to recapture the charges and reconstitute the value lost in the write downs under TARP

    M Soliman

  32. I’m going to through this in just for the hell of it…

    We all met with attorneys, 2, 3, 5 years ago. Some of us got taken for a few bucks by them because they were not receptive. I lost $6,500 to them. It doesn’t mean that they are not receptive today and they can’t or won’t help and prevail today. The landscape has been changing.

    Fringe theories are getting traction and banks are speeding up the process of foreclosing. Any idea why?

    Time is on our side. We need to buy some because banks are going down. And they know it. Of course it’s going to get dirtier: more and more people are held by the short hair, judges included. It’s unraveling. But now more then ever, people need to be aware of how to fight them. Buy time: it’s on our side.

  33. Java,

    Bruce Levittt.

    Anonymous met with him when she was uncovering the crap that had been visited on homeowners and, at the time (5 or 6 years ago) he wasn’t up to speed. He’s learned a lot since and he is a doer. Give him a call and see what he can do to buy you a few weeks. Things are moving.

  34. NJ. I hung on as long as I could but they picked up the speed the last 3 months which means you could be correct on your timeframe ?????

  35. And Java,

    If you’ve gone that far on your own, you can stretch it a little longer. Maybe not on your own but it can be stretched. I am absolutely convinced that it is a questions of weeks, a few months max, before it comes completely undone at the seams.

  36. Java,

    Which state are you in?

  37. Yes Christine still in house. Although guess it’s down to last 30 days. I will fight to the end for sure and then beyond…..I will object to sale this week and if that fails, I have my motions, appeals and objections on record perhaps for one day in the future. Revenge is a dish best served cold. I am and will be fine. Keep up the great work everybody.

  38. Java,

    Is there any way, any way at all, that you could find an attorney willing and able to file some last minute injunction or a TRO on your behalf? Things are moving, as evidenced by the recent bank developments. Banks have used timing to their advantage but the tide is turning. Are you still in the house?

    And listen to UKG. He’s one of those who’ll fight to the end. Find something to file right away.

  39. […] Fannie and Freddie Demand $6 Billion for Sale of “Faulty Mortgage Bonds” […]

  40. UKG. I do have proof of back dated assignments. It was in the plaintiffs own foreclosure Exhibits. I also have proof of robosigned names thru previous depositions of crystal hall and ML Marcum found online. I will try and object based on this info used in foreclosure but it didn’t help/work the previous times in court. Although I was able to put up a long fight it sure seemed WF was set on foreclosure and nothing else. I wonder why ? LOL. thanks for reply.

  41. […] Fannie and Freddie Demand $6 Billion for Sale of “Faulty Mortgage Bonds” […]

  42. […] Fannie and Freddie Demand $6 Billion for Sale of “Faulty Mortgage Bonds” […]

  43. Java, your last chance is before the confirmation of sale hearing. You might want to file a motion to vacate the judgment for fraud or forgery (tough one, to be sure). Once the confirmation hearing occurs, you’re pretty much done. You must file motions or objections prior to the COS hearing. Then you can appeal the judge poo-pooing your motion to vacate. But you gotta have proof.

  44. Scot, what is the name of the Trust and Trustee?

  45. He has not yet served the one liner……

  46. $11.5 million is probably insufficient to make most whole but, all in all, Masto has collected $80 millions from several banks. That should help a few people. I ask again… delayed spring cleaning?

    Attorney General Masto Secures Agreement With Securitizer Regarding Lending Issues
    Download Related Document

    October 17, 2013

    Carson City, NV – Nevada Attorney General Catherine Cortez Masto announced that DB Structured Products, Inc. (DB) will pay the State $11.5 million as part of an agreement, called an assurance of discontinuance, to resolve an investigation into the firm’s role in purchasing and securitizing subprime and Alt-A mortgage loans in Nevada.

    The agreement filed in the District Court in Clark County also requires DB to commit to changes in its practice to securitize Nevada mortgages. The $11.5 million will be used for payments to affected borrowers, mortgage fraud enforcement, and pay the costs of the State’s investigation.

  47. Delayed spring cleaning…?

    Geithner, Paulson Deposed in AIG Case

    2013-10-21 —

    “A lawsuit filed on behalf of Starr International, an insurance company run by Greenberg, alleges that the parts of the AIG bailout were illegal and ended up costing shareholders billions of dollars. Through Starr, Greenberg was once one of AIG’s top shareholders.

    It is unclear what Paulson and Bernanke said during their depositions, which have been sealed by the court. Greenberg’s lawyer, David Boies, is trying to convince a federal judge to make them public.”

  48. No kidding! So, this is NOT one of those “JPM agreed to pay under complete immunity from further prosecution” kinda thing? That would be a first…

    For JPMorgan, ending criminal probe proves impossible for now

    By Aruna Viswanatha, Karen Freifeld and David Henry

    WASHINGTON/NEW YORK | Sun Oct 20, 2013 10:01pm EDT

    (Reuters) – JPMorgan Chase & Co CEO Jamie Dimon has pleaded with and complained to the U.S. Justice Department but cannot convince the government to end its criminal probe of his bank because prosecutors are not yet certain of their findings, people familiar with the matter said.

    Dimon has negotiated a tentative $13 billion deal to settle many of the U.S. investigations into mortgage bonds that JPMorgan – and the banks it bought during the financial crisis – sold to investors.

    But the criminal investigation proved to be a sticking point during negotiations, the sources said, and Dimon’s inability to win this point underscores the breadth of the problems his bank faces even after it resolves these mortgage suits.

    The criminal probe relates to whether JPMorgan misrepresented the quality of the mortgages it was packaging into bonds and selling to investors.

    While JPMorgan was not about to admit wrongdoing, Dimon suspected that ending the criminal probe was a long shot and the bank was not interested in holding up all the other settlements to wait for that, one of the sources said. Civil cases require a lower burden of proof than criminal cases, and can often be wrapped up quicker than parallel criminal proceedings.

    JPMorgan has set aside a total of $23 billion to pay for legal issues, and faces more than a dozen probes globally.

    Prosecutors did not want to end the criminal probe before they were sure of its findings, said several people familiar with the probe and other investigations of the banks. They said the investigation could take another several months.

    U.S. President Barack Obama’s administration has faced extensive criticism for its failure to prosecute bankers criminally for behavior that led to the financial crisis, which by some estimates has cost the United States economy nearly as much as it earns in a year.

    Obama has set up a task force to investigate fraud and other activity that led to the meltdown. Former prosecutors and criminal defense lawyers not involved with the talks said that ending an early-stage criminal inquiry as part of the broader settlement could have created the appearance that JPMorgan was buying the right to flout the law.

    The Wall Street Journal reported on Sunday that the Justice Department hopes to use its settlement with JPMorgan as a template for deals with other banks. The Federal Housing Finance Agency, one of the agencies negotiating with JPMorgan, is hoping to draw a $6 billion penalty from Bank of America, the Financial Times reported on Sunday. JPMorgan’s settlement with the FHFA is expected to be closer to $4 billion.


    Dimon is under pressure from investors and the bank’s board of directors to fix his frayed relationship with regulators and resolve the investigations.

    Beyond mortgage-related probes, federal prosecutors are looking into whether JPMorgan broke laws in its handling of derivatives bets known as the “London Whale trades” that cost the bank more than $6 billion in trading losses, and more than $1 billion in regulatory fines so far.

  49. Did iwantmynpv ever tell us the one sentence one could use to win one’s foreclosure case?

  50. Caveat for Attorneys This is getting alot of attention

  51. Neil, I’ve done FOIA requests for my FREDDIE MAC backed mtg. They hide behind the FHFA’s ‘conservatorship’ of the two former quazi pvt corps.

    I’ve wrestled with this. In my mind they have to treat the foia requests like they have for Amtrak.

    Has anyone gotten further than me with FOIA vrequests? J On Oct 21, 2013 9:25 AM, “Livinglies’s Weblog” wrote:

    > ** > Neil Garfield posted: “You read the news on one settlement after > another, it sounds like the pound of flesh is being exacted from the > culprits again and again. This time the FHFA, as owner of Fannie and > Freddie, is going for a settlement with Bank of America for sale of > “faulty”

  52. Jim
    Dear god that is like saying tbe rule of law is irrelavant- that IS the biggest isdue of all fir me hiw can we ever make it in a criminal world that was what the magna carte stood for its a human right fundamentals we are facing dead on.
    Analogy those big dogs you speak of can not be trusted they need a shock collar applied to keep them in check because like a heroine addict – there is never a big enough high. Sorry analogy works for me.

  53. Yes the hutmaster
    That is bog standard type response to discovery requests,
    Not the end if it though. If its material to the case and discoverable by law – check out their BS, you must press them to SUBSTANTIATE.
    Its about perserverance and rebuttal of the utter BS those ” practices” try to choke us with.

  54. Below is some of the most common BS from the dirtbag Mill Attornies…

    “Plaintiff objects to Defendant’ s Requests to the extent Defendant’s Requests seek information or
    documents not relevant, not reasonably related to the matters at issue in the case, and not reasonably calculated to
    lead to the discovery of admissible evidence.”

    “Plaintiff objects to Defendant’ s Requests to the extent Defendant’s Requests seek information
    about which Plaintiff has no personal knowledge or documents which are not in Plaintiffs possession, custody,

    “Plaintiff objects to Defendant’s Requests to the extent Defendant’s Requests seek information
    relating to a time period that is unduly burdensome and not reasonably calcu lated to lead to the discovery of
    admissible evidence.”

    And, my all time favorite……. “Plaintiff objects to Defendant’ s Requests to the extent that Defendant seeks confidential,
    proprietary , or trade secret information.”

  55. Seems each of these settlements is getting money from their real balance sheet or from their vault assets. Seems like it is something they can’t create out of thin air.

    Seems that each time a settlement is agreed upon, the bank has more exposure to not passing the stress test.

    AND, it seems, they have more derivative exposure.

    yes the amount is less that what they monetized, but if the amount is removed from them does that mean they have to de-monetize and a 6 billion dollar settlement means they have to pull in trillions from the market.

    Will we see deflation as an effect of their punishment?

    Trespass Unwanted, Creator, Corporeal, Life, People, Free, Independent, State, In Jure Proprio, Jure Divino

  56. javagold has it right. The homeowner foreclosed on in a nonjudicial state has no way to resist the steamroller bank foreclosure. The big dogs are fighting over the carcass The homeowner is irrelevant

  57. I agree with bringing more credit unions, small and regional banks to take over too big to fail banks however there is a down side. Its the cost of upgrading these banks. The high volume will require new servicing software and staff. We can only hope our gov’t will begin facilitating this change otherwise, we are going to have an ocean trying to fit into a small lake.

  58. The US continue digging their grave… Paranoia as a way of life. And they still won’t clean up their own house. Is it any wonder the world is seriously resenting this country?

    NSA France: U.S. Conducted Large-Scale Spying On French Citizens: Report

    By LORI HINNANT 10/21/13 05:55 AM ET EDT AP

    Similar programs have been revealed in Britain and Germany. In Brazil, the revelations so angered the president that she cancelled a state visit to Washington and publicly denounced the U.S. for “violation of human rights and of civil liberties.”

  59. As a homeowner that hasn’t found a lawyer that gets it. How would I find and or look up any lawsuits against the trust that is foreclosing on me.

  60. Can we still fight this ponzi fraud, if house has just been sold st sheriff. I bought all this up as pro se in court to no avail. Was foreclosed by WF with backdated robosigned assignments and of course Fannie is the investor , so the scum at WF had nothing to do with start or finish of note and mortgage, yet were able to foreclose, as debt collector servicer.

  61. Your need a new filing category under “filed under”, specifically : “The GSE Business Model”.

    This will allow you to file the article under one category which will reveal to you all players involved under “one sham”.

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