Livinglies's Weblog

MAYBE IT’S TIME TO SUE THE INVESTMENT BANKS

The 2017 Vanity Fair article zooms in on the $13 billion settlement between the government and Chase and subsequent settlements that were strictly based upon keeping the details of fraudulent schemes out of the public domain. But some of those details leaked out anyway. To date settlements between securities brokerage firms (“investment banks”) and investors and the government have exceeded $500 Billion! Look it up.

But the real takeaway and the real reason for the settlement is still very well concealed. The real business plan of originators was not to make loans, it was to sell loans. And the real business plan of the securities brokerage firms (Goldman Sachs, Chase etc.) was to sell securities under false pretenses. TRANSLATION: This was not a loan transaction; it was a cost of doing business for the sale of loan data and the sale of unregistered securities.

Bottom Line: the consensus view that we are dealing with unpaid loans is false. There can’t be a default if all the players are getting paid and actually making money on the decline in the value of the loan data.

And those false pretenses included false or incomplete appraisals and other computations of viability of loans — a duty that is strictly put on the lenders (TILA) not the borrowers who as a matter of statute and public policy do not have the education, training skills or understanding of mortgage lending.

Taken together, the players were not lending but rather selling without regard to the consequences or damage to homeowners or investors. But homeowners have not used these settlements as a starting point to sue the investment banks as the real parties in interest because the details are still being concealed from them.

Thus by defending foreclosures with affirmative defenses consisting of statutory violations, there is a ready remedy to reduce or eliminate the claim for payment. Such defenses are not barred by the statute of limitations.

see https://www.vanityfair.com/news/2017/09/jamie-dimon-billion-dollar-secret-jp-morgan

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SUBMIT FREE REGISTRATION STATEMENT WITHOUT OBLIGATION

THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

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Filed under: foreclosure |