David Dayen: The Epidemic of Mortgage Fraud


“It is happening again”: David Dayen on the epidemic of mortgage fraud and the rigged economy that sets it in motion

David Dayen’s new book explores the criminal conspiracy that destroyed the lives of millions

"It is happening again": David Dayen on the epidemic of mortgage fraud and the rigged economy that sets it in motionDavid Dayen (Credit: The New Press/lumy010 via iStock/Salon)

Earlier this week the New York Times featured a depressing story about homeless people living in the foreclosed and abandoned houses that still dot the landscape in Nevada, reminding everyone of that awful time just a few years ago when families all over the country lost their homes in what has become euphemistically known as “the housing crisis.” It was actually much more specific than that, it was an epidemic of criminal mortgage fraud and it devastated millions of people, many of whom have still not recovered.

My Salon colleague (and one-time blogging cohort) David Dayen has written a wonderful new book called “Chain of Title” about some amazing Americans down in Florida who were caught in the maw of this epic criminal conspiracy and bravely took on the system when no one else would do it. Faced with a morass of impenetrable documents and intractable officials they took matters into their own hands and uncovered the crime of the new century by becoming internet muckrakers, using crowd-sourcing and social media. And in the process of following their fascinating story, we learn the full scope of this massive crime which goes all the way from the Florida suburbs to the boardrooms of Wall Street.

For David’s Interview please go to Salon.com.


12 Responses

  1. The alleged investor did not provide us with a certified copy of the Note. Instead, they sent us a Note with no signatures on it. The assignment of mortgage to Bank of New York Mellon is defective as it was assigned to a closed trust. This is like transferring money to a closed bank. If this alleged investor can foreclose our property any bank or anyone in the world can foreclose our property. Where is commonsense in the state of Rhode Island? Why is it that we need to be lenient to banks when we know for a fact that mortgage meltdown and recession were caused by them. Why do we need to follow and allow the greed of the banks which, perhaps, could cause depression in America. It is time for judges to give favorable judgments to poor people as they are the one who need help.

  2. The problem, perhaps, with the Hardest Hit Fund is that we need to sign a mortgage-like-thing with them so that the people who are giving the money could take our home away by foreclosure if we make any defaults ! Also, the Hardest Hot Fund payment is good only for one year and after that what do we do in this recession banks have created.

    Accepting payment from HHF may be like clearing up the problems of illegal investor for not having Note and holding defective assignment.

    We are not going to help them to come out clean.

  3. for years i have come to neil’s site (thank you neil) and others sites, read case after case, learned more than i ever wanted to know about mortgage, securities, securitization, forced placed insurance, the crime of notary fraud called robo signing, and most recently someone is trying to convince me that this was a reverse purchase and sale. I say fine to all of that, great, doesn’t sound like the transaction my spouse signed up for. I have withstood the disdain of many people, even people i know who think that i am a deadbeat because i refuse to pay a non creditor. i want the answer to one question:

    who is the creditor?

    7/23/2008 we sent debt validation letter to reconstrust, in response to 3 notices of default ,each with a different dollar amount. We received a response from the lawyer for recontrust- stacy o’neal- (texas) and she only parroted the obvious, she named the originator and mers. but in no way did she explain how the heck bony and cwalt were involved.

    so after attending neil’s seminar in sept 2008, we rescinded (within the 3 years from origination). and the response from linda reese of the office of the president of countrywide home loans said – forget the rescission, sign a forbearance or lose the house.

    i am not a borrower on the loan but i am a spouse and my marital property is at risk of theft. i will not give up or in.

    want me to name more name bank trolls?, i will maybe your name will be on the ever growing list of ordinary americans doing the nasty job of stealing other people property

  4. Do you happen to know the author’s name please?

  5. Thanks on the book recommendation Shadowcat. I believe I need it.

  6. Rhody
    Did you look into the hardest hit fund? They received more money in Feb.


    Signing Agent, Notary , Reverse Mortgage Specialist


  8. Rhody ,

    I waited a few days to see if anyone would answer you as I have no knowledge of what’s happening in Rhode Island..

    The biggest questions are how much money you have on hand… How accommodating are the courts to defense arguments… and what are your exact circumstances and the details of the case…

    Post that info and someone will give you their OPINION.

  9. We are in Rhode Island facing illegal foreclosure and wondering whether to mitigate or litigate, Please advise.

  10. Reblogged this on sandrakblog and commented:

  11. I wonder if I SHOULD PAY my payment to my new attorney to litagate or was it mitigate for the big crooks .I think it will not matter,just a nuther dead beat tax paying layman in OHIO. who is WIDE AWKE

  12. Not that any of my comments have ever been posted in the past but I just received my letter from state of NEW YORK OFFICE OF THE ATTORNEY GENERAL Eric T. Schnederman file number 2016-1285432 company Troy Doucet & Associates co. L.P.A, DEAR Sandra S SO SORRY very truly yours bridget santigo BUREAU OF CONSUMER FRAUDS AND PROTECTION LOL ONLY IN AMERICA. Sadly thousouds of children suffered familys were destroyed .but I GUESS THAT THE WAY THE COOKIE CRUMBLES IN OUR GOVERMENT.

Contribute to the discussion!

%d bloggers like this: