The West Coast Foreclosure Show: Nardilillo v. JPMorgan Chase synopsis

The West Coast Foreclosure Show with Charles Marshall Synopsis

Broadcast date: September 21, 2017

Guests:    Investigator Bill Paatalo of the BP Investigative Agency

Eric Mains, former FDIC Team-member

Topics:     Nardolillo v. Chase

LPS/Black Knight Consent Judgment and FOIA Strategy


Send Targeted FOIA Requests to unravel the LPS/Black Knight Consent Judgment

Eric Mains, a former FDIC team-member, who personally observed securitization irregularities while at the FDIC, discussed his FOIA strategy targeting state Attorney Generals who have failed to enforce the LPS/Black Knight 2008 consent judgment.

LPS/Black Knight provided ‘Desktop software’ to foreclosure mill attorneys.  LPS provided “solutions” to “support” every part of the mortgage fraud continuum from table-funded originations, servicing, loss mitigation and asset disposition- but did so by manufacturing fraudulent documents to create the appearance of a legitimate chain of title in order to foreclose.  LPS counterfeited notes, assignments and endorsements.

The government estimated that 80% of all foreclosures processed by LPS between 2008 and 2010 had defects.   The LPS Consent Judgement stated that LPS interfered with the attorney-client (servicer) relationship in order to foreclose quickly and illegally.  The servicers and their attorneys are aware of the judgment and cannot claim that they didn’t know that robosigning was occurring- because it is spelled out in the consent judgment.

The state Attorney Generals offices obtained millions of dollars in the settlement but did little for the homeowners harmed by LPS/Black Knight.  Most recently, the Attorney Generals have failed to ensure that LPS complies with the consent judgment by remediating the fraudulent and forged documents they introduced by the millions into state county recorder’s offices, as agreed. The AGs got the money and did little else to correct the massive fraud perpetuated by LPS/Black Knight.  Mains asserts that the fraud continues to this day and that LPS, now called Black Knight, continues to manufacture documents or instructs others to do so.

LPS/Black Knight FOIA Strategy

Mains believes his FOIA strategy that demands answers from the state Attorney Generals is relevant because homeowners can obtain information that would help homeowners to:

  1. Overcome prejudicial Legal Presumptions that the chain of assignment and foreclosure documents were or are legitimate if handled by LPS/Black Knight.
  2. Determine if documents in the county records, documents used for foreclosure, and documents used to answer Qualified Written Requests are valid or forgeries/fabrications.
  3. Determine if documents are hearsay, robosigned or contain factual data.
  4. Invalidate claims of firsthand knowledge, when attorney/employee has knowledge that LPS/Black Knight admitted to document fabrication and forgery.

Eric Mains encourages homeowners to write to their AG and demand to know:

  • How many falsified notes, endorsements or assignments have been corrected in the state county records?
  • What information have do you have?
  • What did the AG do to ensure that robosigning was stopped?
  • How do you know LPS/Black Knight is in compliance?
  • What parameters were implemented to insure compliance?
  • A copy of Eric’s letter to the Indiana AG can be accessed here.

The Attorney Generals will typically respond with a long letter that provides no useful information.  Investigator Bill Paatalo obtained a FOIA letter from a homeowner who wrote the California Attorney General about the LPS consent judgment and received this pathetic reply.  Basically, the AGs lie and say they can’t comment or discuss the consent judgment. There is no client-attorney privilege between the Attorney Generals and LPS/Black Knight- the AG wants you to give up and go away.

The Foreclosure Mills in your state that utilized LPS/Black Knight’s services are liable, just like the  Stern Law firm in Florida, that was shut down by the Florida Attorney General in 2014.  The Stern Law Firm used the services of Black Knight to robosign, falsify and fabricate mortgage and foreclosure documents.  David Stern was disbarred for his practices.  Mains says the courts may protect the big banks but that foreclosure mills and servicers who perpetuated the fraud are fair game and are more likely to take the fall.

Banks have created an intricate web of plausible deniability- but the foreclosure firm attorneys are low-hanging fruit, ripe for picking, because homeowners can PROVE that LPS/Black Knight issued NO corrective assignments in the county records, LPS failed to comply with the consent judgment, and the AGs did nothing but cash the check.

Eric Mains suggest that homeowners unite!  By creating small homeowner networks in each state (and especially in epicenters California, Florida and New York), homeowners can begin compiling records demonstrating that LPS did not correct assignments, failed to correct pervasive robosigning, and state AGs have allowed LPS/Black Knight to continue its crime spree unabated.

State AGs can be cornered by irate and vocal homeowners who demand answers- and when armed with incontrovertible evidence of LPS/Black Knight wrongdoing- this is an area where homeowners can gain traction.

CALIFORNIA AND FLORIDA HOMEOWNERS- IT IS TIME TO ORGANIZE, OBTAIN EVIDENCE, AND DEMAND YOUR STATE AG TAKE ACTION.   If you succeed in designating a team committee, please provide your information to: and LendingLies will assist in your efforts to recruit damaged homeowners.

Eric Mains says it is easy and inexpensive to obtain the evidence necessary to force your state AG to act on behalf of the millions of homeowners damaged by LPS/Black Knight and the foreclosure mills that used its “services”.

Steps to obtain Evidence:

  1. Look up the foreclosure attorney’s unique ID number. For example, the Middle District of Florida has an attorney roll where you can obtain the attorney’s ID number and then reference cases filed and outcome.  You can also contact the local BAR.
  2. There are databases that allow you to search by ID number to see the cases the attorney has handled.
  3. Go to a Title Search Engine and pull assignments and compile data on each case.
  4. Look for evidence of robosigning by comparing signatures. Examine chain of title and parties listed.
  5. Check to see if any of the assignments or documents were remediated. The remediation will indicate a corrective assignment and should have a new time stamp regarding when it was filed.
  6. Research assignments that were done post consent-judgment or cases where a foreclosure occurred using fabricated or robosigned assignments.
  7. Create spreadsheets including case number, attorney, address, suspect documents and date.
  8. Print or save a copy of the questionable document and assign it an exhibit number.
  9. Organize your information, draft a report, and schedule a group of homeowners to meet with the state Attorney General’s office to discuss your findings.
  10. Copy your state representatives, special interest groups and the media on your findings.

Once you have substantiated your findings, consider filing a class-action on behalf of harmed homeowners in your state.  By providing incontrovertible evidence you can destroy legal presumptions.

In litigation, Foreclosure Mills should be asked:  Did you use LPS?  Were you aware LPS admitted to forging documents and were required to remediate them?  The Attorney General in YOUR state will have difficulty turning a blind eye if you and a group of similarly situated homeowners: provide evidence, partner with special interest groups, involve community and governmental leaders, utilize local media and DEMAND ACCOUNTABILITY FROM THE ATTORNEY GENERAL.

Investigator Bill Paatalo stated that the robosigning behavior has NOT stopped and may be worse, while California attorney Charles Marshall impresses that there has been absolutely no enforcement of the consent judgment.

Marshall recommends that homeowners send a pro-forma pushback letter to their state AGs stating there is public interest in enforcing the consent judgment and that failure to provide this information is unfair to those victimized by the practices of LPS.  The documents manufactured by LPS/Black Knight to foreclose were void- not voidable and a crime was committed.

Nardolillo v. JPMorgan Chase

See: Nardolillo v. Chase

Investigator Bill Paatalo has made the Washington Mutual-FDIC-JPMorgan Chase illusory transfer of assets his life’s mission, discussed Nardolillo v. JPMorgan Chase.  California’s Northern District denied Chase’s Motion to Dismiss, ruling that a Purchase and Assumption Agreement (PAA) was insufficient to prove ownership.

Nardolillo claims that WaMu securitized his note and Deed of Trust prior to JPMorgan Chase becoming the beneficiary.  JPMorgan Chase, via a slick substitution of Trustee maneuver, created a self-serving document assigning the loan to itself before transferring the loan to a trust.

Paatalo claims that because there are extreme disconnects in the WaMu-FDIC-JPMorgan Chase documents, especially in non-judicial foreclosures, Chase must come up with an assignment to foreclose.  Therefore, they resort to trustee substitutions.  “If the loan was securitized, or sold prior to (FDIC) receivership, JPMorgan Chase can’t execute a substitute trustee, foreclose, or issue assignments to itself,” Paatalo points out.

JPMorgan Chase has issued thousands of self-serving assignments as beneficiary when it was never empowered as beneficiary to do so, according to Paatalo.  Thousands of loans also failed to go through the FDIC during receivership as claimed, and JPMorgan Chase cannot produce any record of authority.

Paatalo discovered that $615 billion of loans securitized in the A01 Asset Acceptance Trust were never purchased from the FDIC (these loan transactions show investor code “AOI” or “369”).    Chase has maintained that: (1) it acquired the loans through the PAA, and (2) the assignments of beneficial-ownership interests to the loans unto itself are valid.

If Nardilillo is successful, it would eradicate Chase’s reliance on PAA acquisition claims and the ability to self-assign beneficial interest to itself.

Paatalo and Marshall confer that Chase’s cover has been blown and they can no longer claim to have acquired loans through the FDIC that were previously securitized.  Only by trumping up the paperwork can they foreclose.  The fact pattern is simple in non-judicial foreclosures: JPMorgan Chase executes a Substitute of Trustee to get to foreclosure via summary judgement.  Homeowners must challenge the Substitute of Trustee when JPMorgan Chase is involved.

CPA involvement critical to Litigation Success

Lastly, Marshall and Paatalo discussed the importance of using a CPA to audit and analyze servicer’s general ledgers in foreclosure litigation cases.  They point out that judges have difficulty understanding the deliberately complex securitization scheme, but judges understand and are receptive to hard data.

Homeowners should consult with a forensic CPA to analyze their statements prior to filing litigation if possible.  Servicers who acquired servicing rights years after loan origination often did not board information from the prior servicer (who also may not have had a full loan history).  This information void can be used to compel the servicer to produce the general ledger information in a lawsuit.  Typically, once the loan goes into default, a plethora of late charges, fees, and escrow charges are applied- and it takes a sophisticated forensic accountant to unravel the charges to determine if the balance due is correct.  The general ledger is a more complex document that reflects subsidiary ledgers and third parties that may have credited or debited the account.

A forensic CPA can simplify the discrepancies,  highlight the abuses, and identify credits and debits in the general ledger so the judge can understand the loan complexity.  The numbers don’t lie- and if private mortgage insurance has paid a loan in full- the CPA can demonstrate that homeowner is not in default.

The West Coast Foreclosure Show with Charles Marshall is broadcast the first and third Thursday of each month. The  Neil Garfield Show is broadcasted live on the second and last Thursday of each month.

Contact Information:

Charles Marshall, Esq.

Law Office of Charles T. Marshall

415 Laurel St., #405

San Diego, CA 92101

Phone 619.807.2628


Investigator Bill Paatalo of BP Investigative Agency can be contacted at:

BP Investigative Agency, LLC
P.O. Box 838, Absarokee, MT 59001

Office: (406) 328-4075

5 Responses

  1. @ Cement Boots & ALL

    Here is an another UNPUBLISHED Decision in Kalifornia.


    Park v. Wells Fargo, N.A. — Rethinking the California Court-Generated
    “Void Versus Voidable” Distinction


    SEAN PARK et al., Plaintiffs and Appellants,
    WELLS FARGO BANK, N.A. et al., Defendants and Respondents.

    No. B264026.

    Filed September 13, 2017.

    Court of Appeals of California, Second District, Division Seven.

    APPEAL from a judgment of the Superior Court of Los Angeles County,

    Super. Ct. No. SC121710.

    We conclude the Parks have shown there is a reasonable probability they can amend their complaint to cure the defects in the first amended complaint and to state causes of action for wrongful foreclosure, cancellation of instruments, and quiet title against Wells Fargo, and we direct the trial court to allow the Parks to file a motion for leave to amend to allege these causes of action. We conclude, however, the Parks have not made such a showing for their causes of action against BNYM and Golden West. Therefore, we reverse the judgment in favor of Wells Fargo and affirm the judgment in favor of BNYM and Golden West.

    The judgment is reversed. The matter is remanded to the trial court with directions to vacate the order sustaining Wells Fargo’s demurrer to the first amended complaint without leave to amend, and to enter a new order (1) allowing the Parks to file a motion for leave to amend their complaint pursuant to California Rules of Court, rule 3.1324, to add
    causes of action against Wells Fargo for wrongful foreclosure,
    cancellation, and quiet title based on the proposed allegations described in the Parks’ reply brief, and (2) sustaining the demurrer by BNYM and Golden West without leave to amend. The court is also to enter a new judgment in favor of BNYM and Golden West only. The Parks’ motion to augment is denied as moot.

  2. John Cleese Explains Why the Truly Stupid Lack the Capacity to Realize How Stupid They Are

    Cleese’s statements are based on research by David Dunning and Justin Kruger of Cornell University into the so-called Dunning-Kruger effect…

    “In order to know how good you are at something requires exactly the same skills as it does to be good at that thing in the first place. Which means, and this is terribly funny, that if you are absolutely no good at something at all, then you lack exactly the skills you need to know that you are absolutely no good at it.”

    (Sound like trying to get a judge in foreclosure court to understand securitization or void vs voidable?)

  3. IF the Democrats want to regain any control, they need to admit what was done, what was concealed, and what can be done to fix what was done during the Obama administration – if fixing is now even possible. Trump cannot undo. But, he can address. Trump has just wrongly accepted. Yet, this is not acceptable if he truly is for the “forgotten man.” Trump is not investigating what he should investigate. He just accepted. Trump does not have “open” communication as he promised.

    All has been buried. Need to resurrect. Otherwise it stays buried.

  4. This is what needs to happen to Black Knight ,,,

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