More Derivatives — More Fraud

It is still the third rail of journalism. Like nobody is interested in corruption of our financial system and our entire political system. To the contrary, people are very interested and they know that the big banks have essentially taken control of our government — all three branches. People are voting with their feet. Nearly $11 Trillion is stuffed into mattresses or low interest safe accounts instead of going into equities and other potential investments that would stimulate the economy. People know the truth. And while most people could not define the terms used on Wall Street they still know that something is very wrong.

Politicians and the Press would serve the country far better if they were as persistent about Wall Street corruption as they are about running the Ferguson Story in Missouri. There is a connection there too as Ferguson was disproportionately hit with wild teaser, reverse amortization mortgages and extremely dubious foreclosures that were rushed through. All of that hurt the average wealth of any household in Ferguson and St Louis, exacerbated joblessness and lowered the already low median income of the residents — which only made the situation worse as home “prices” fell like a stone through the value of property based upon the median income index.

The climate was so adverse to those helping foreclosure victims that several of them literally left the state. The Banks had targeted the population that had the last time, the least education and the least sophistication with complex legal transactions and they got exactly what they wanted — a signature on a piece of paper that contained provisions that the signor would never have accepted if they knew. Missouri’s history of subjugation of minority groups is coming home to roost. The long-term issue is not Michael Brown, whose death was cruel and yet unfortunately the usual way of doing business in many communities. The explosion of violence and protests is only a presage of things to come.

When bullying of all sorts is regarded as unacceptable then justice will prevail. If the police officer does something wrong, he will pay for it. If the Banker does something wrong, he will pay for it. That day will come but in the meanwhile, people continue to benefit from the predatory tactics used in all forms of interaction between people in power and people who are viewed as powerless.

History has shown though that ultimately Thomas Jefferson’s statement is exactly true about the origin of power and government — it depends upon the consent of the governed. And if the consent is withdrawn, power is eroded. We have a democratic process in this Country that allows us to change government through our ability to vote. But our ability to change things with our vote is dependent upon the information we receive and that we understand.

That is where the government and the Press have failed us. We hear about vague allegations and accusations and settlements based upon those claims but we never hear the details. We hear of investigations where irregularities were found in the mortgage process and the foreclosure process — but the people who owned the homes whose files were reviewed by government investigators were never notified about the findings. Most of them were foreclosed while at the same time the government knew the foreclosures were fatally defective and to the detriment of the investors who thought they were buying valuable bonds issued by REMIC trusts and to the detriment of homeowners who would have been happy to settle the case on reasonable economic terms.

At some point, we are going to collectively ask the question “why are homeowners getting no justice and why are homeowners the ones who pay the most for the unlawful actions of the banks?” This isn’t about relief. It is about justice.

19 Responses

  1. Here is Neil’s previous post that talks about Ferguson and how the foreclosure fraud has messed with people there.

  2. Omg Louise
    Round if big applause. Great news

  3. Eggs
    Back at ya.
    Thank you

  4. @Deborah Wynn

    “The essence of optimism is that it takes no account of the present, but it is a source of inspiration, of vitality and hope where others have resigned, it enables a man to hold his head high, to claim the future for himself and not to abandon it to his enemy.”
    ~Dietrich Bonhoeffer

    Wishing you the Best of Luck

  5. Learn Part of our budget should be to find out the relationship between our public servants and the banksters. The most efficient investment before going to court. I am not an attorney and this is my own personal opinion. I have a hangover


  6. I’m still batting and I do. Until fat lady sings

  7. @Deborah Wynn

    “Because I was denied the facts by concealment”
    and the Beat goes on……
    All I can say is I used to have Faith in the American Justice System and Now I Don’t.

  8. Judge ruled for me SURPRISE!! and will not take opp. counsel’s Sum Jud and we are going to trial. Should be interesting. No ruling on the Mot to Compel by judge who is a Obama nominee for state supreme court. InF%&kingcredible.

  9. Exposeineggs
    Hence you don’t just sue the servicer, ( not legal advice just lay opinion )
    The servicer and their purported agents acting for the beneficiary ( cough cough) in their contrived efforts modt definitely did harm here is a partial list :
    Deprivation of my right to occupy my home – my right to possession of. My right to defend my home my right to due process to be able to defend my home my right to equal opportunity to challenge my tax issues and my public duty to report fraud to the Irs and tax law be applied lawfully under their code the five years plus fighting them
    A judgement against me that is downright unlawful aka a traversty of justice and now I have to fight that
    The couple that are living in my former home that never had legal right to possession and the fact that title was snatched like taking candy from a baby
    Because I was denied the facts by concealment. Phew need I go on.
    We must keep talking about this spread the word enough is enough we have to get this through to our judges and courts because the consequences of letting it just go will cost our kids futures.
    As for relying on any kind of ” foreclosure review ” come on. Foregone conclusion look who does the ” investigation” can you say BULLS#+*^

  10. Will someone give light to the Jubilee Year Law?

  11. Just received the results from The Independent Foreclosure Review which states: ” Based on the results of the independent review, you will not receive payment or other compensation through the Independent Review. This is because the review determined that you were not financially harmed by servicer errors or other problems during the foreclosure process.”
    “The results of The Foreclosure Review are final and there is not a process to appeal the results.”
    “The Neutral party reported its results to both IndyMac Mortgage Services and Federal Banking Regulaters.”
    Would love to see their documents which determined this conclusion.
    Would also love to simply know the Truth.

  12. What a time to have a petition for review sitting at the CA Supreme Ct that alleges deceit on banksters’ part. See

  13. Chink in the armor in CA –
    “and as the numbers of such cases grow, other less benign explanations are coming to more and more minds. (See Corvello v. Wells Fargo Bank, NA (9th Cir. 2013) 728 F.3d 878, 885 (conc. opn. of Noonan, J.) One such case comes from our court – West v. JPMorgan Chase Bank, N.A. (2013) 214 Cal.App.4th 780 (West). … West duly notified the lender that the calculations were wrong, and, during a conference call, the lender asked her to resubmit her financial data and assured her that no foreclosure sale pending. Two days later, the home was sold at a trustee’s sale. … we concluded she had stated causes of action for fraud, breach of contract, promissory estoppel, and unfair competition. (Id. at pp. 794, 795, 796, 805, 806.) Other courts faced with similar fact patterns have come to the same conclusions. (See, e.g., Rufini v. CitiMortgage, Inc. (2014) 227 Cal.App.4th 299, 306 and cases cited; Bushell v. JPMorgan Chase Bank, N.A. (2013) 220 Cal.App.4th 915 [breach of contract/implied covenant of good faith, promissory estoppel, fraud]; Barroso
    v. Ocwen Loan Servicing, LLC (2012) 208 Cal.App.4th 1001, 1014-1015 [breach of contract, leave to amend to assert breach of covenant of good faith]; see also Corvello v. Wells Fargo Bank, NA, supra, 728 F.3d 878 [breach of contract, unfair debt collection].”

    Adding insult to injury, two days after the trustee’s sale the lender sent West a letter inviting her to contact it to work out a solution to her mortgage difficulty. About three months after that, West got a letter advising
    her of the availability of government-sponsored alternatives to foreclosure.


  14. “This isn’t about relief, its about Justice. Theft, Greed and Lies.

  15. Paid off by the 1%.

  16. Good Morning Neil:  I am the former US Government Agent for the Criminal Investigation Division that has written you before

    Your articles are amazing and absolutely true,  which I sincerely wish could be read by every home owner in our Nation.  Of course it may be over the head of many who are not up on the manipulations and fraudulent methods the banks have been using to take homes from the citizens that have struggled to live the American Dream of HOME OWNERSHIP, and for years have been making payments so that when they retire or get to an age when retirement and Social Security checks allow them to barely make ends meet, however, your insite  in the foreclosure epidemic will certainly make a difference’  

    We see courts sending people to jail for minor criminal acts, loading the prison system to a point where no rehabilitation is available because there is not enough money to employ professional help so that training and rehabilitation can take place and at least give the less fortunate, a chance to regain their stability and become law abiding citizens.

    Instead, we allow the courts to ignore the true criminals in our land, to set gigantic fines on banks and their banker associates, fines that are paid out of money gotten illegally, costing home owners to lose the largest investments in their life times, their Homes, but no prison sentences for the crimes the bankers are committing.  

    Even though many banks and their leaders give-in to accepting  these fines, after admitting to fraud, forgeries and misrepresentation and presentation of fictitious Robo-Signing of documents the bank lawyers present to the courts, the perpetrators of these gigantic crimes against our citizens, walk away without even a slap on the wrist and without spending one day in jail.  The bankers, who at one time were considered one of the three or so TRUSTED people in the lives of our citizens along with the church pastor, your neighborhood doctor or at times, even your lawyer, who are now being considered the champion crooks of all time.

    With the number of cases I have investigated for home owners struggling to save their homes from the greedy, criminal bankers and their co-conspirator lawyers and bank employees who care not for their fellow man, I have exposed and developed cases where the fraud, forgeries, misrepresentations and manufacturing of fictitious documents provided to judges who have accepted them, ignoring the rights and laws that for decades we as citizens have expected and deserve to have for our protection, are crimes that should be and are, criminal acts by those we trusted, who should be dealt with in the very highest degree, with prison sentences, along with judgments prohibiting them to ever be allowed to represent or be licensed in any capacity in the banking industry. We see news releases every day of citizens losing their drivers licenses for a DUI, or for careless and reckless driving, or sentenced for petty theft, or smoking a joint, but the true criminals, who have turned our economy upside down, and placed thousands, if not millions of  home owners in the street, are sitting in their plush offices counting the trillions of dollars; laughing at the stupidity of the courts, and believing that they will never be detected or stopped in their crime spree, the epidemic that will eventually bring our country to its knees.

    So many of my investigations have been brought to the attention of the Attorney General’s Office, requesting that criminal investigations and prosecutions be brought against banks and their individual co-conspirator employees and lawyers, with requests, if necessary, that Grand Juries be impanelled to conduct and form indictments against these criminal actions.

    For instance, the California Attorney General, Kamala Harris has formed a Strike Force to investigate and prosecute civil and criminal activities of banks and bankers who are found to be violating laws in their foreclosure methods, and hopefully, we will see more and more criminal prosecutions of bankers and their associates and employees, as well as the lawyers who are involved in their unscrupulous, unethical and criminal methods involving this nationwide foreclosure epidemic.  It should be brought to an immediate STOP, even if it causes a run on these giant banks that have been described as TOO BIG TO FAIL. 

    Our great country is TOO BIG TO FAIL and we cannot allow it to happen and our citizens have come together in the past decades to rise up and protect our rights under the constitution, and this will and must happen again.

    More state Justice Departments and the Attorney General’s across our land must move towards instigating Strike Forces to eliminate the injustices and see that these criminal activities are prosecuted, which is the only way it will stop the greedy banks and their methods  to take control of our nation through unethical, illegal and cruel, underhanded financial manipulations.

    Keep up the articles where you have been exposing the banks, and  for your work you will certainly be rewarded.

    William Bennett


  17. Louise
    That’s because the StAtes officials failed in their roles and duties to protect the consumer. I just drove past a banner re elect our AZ atty g. Pray tell

  18. I’m still fighting for a home stolen from us the day after Mother’s Day. And although my appeal court date was pending, the Sheriff delighted in execution of the writ. Treated myself and 16 year old son so abusively, I’m certain they were baiting me so they could put me in cuffs. Unconstitutionally searched my son and I, ran me for warrants, and forbid me to speak to my son the whole while I screamed, “he’s a minor, you have no consent”. I’ve been unsuccessful hiring counsel, and I’ve gotten to the Third District Court of Appeals by sheer grit I feel happy to exercise my rights in trial, yet I am deeply ashamed it has no value in our system. I declared my debt absolved and my land returned as it is the Year of the Jubilee. I will fight until I die, because they’ve stripped me of everything and my possessions, so really I am free, but the Great American Tragedy is simply to strip us. Rape us lawfully. If it isn’t our homes and our 401ks it will be disease or anything. I will never surrender My Dignity more ever. Will our children have anything good to take from this? I say yes, and it has to Change. God Bless!

  19. No one has been compensated for the loss of their homes. The nightmare is still going on.

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