DISCONNECT BETWEEN HIGH FINANCE, REALITY AND LAWSUITS

WHAT IS THE EFFECT OF SETTLEMENTS, BUY-BACKS AND FEDERAL RESERVE BUYOUTS?

We hear these stories of settlements, purchases by the Fed, buybacks — but what they are buying and which mortgages are affected is never disclosed. Meanwhile the marketplace and the judicial system are functioning as though none of this activity was happening.
First of all it is never clear exactly what is being purchased. It does not appear as though the mortgages themselves have been purchased —  although that appears to be the claim when Fannie and Freddie are involved. If it is the mortgage bond that is being purchased or settled we don’t know whether all of the mortgage bonds issued by a particular alleged “asset pool” were purchased by the Federal Reserve or if they were the subject of a settlement with investors or regulatory authorities. We don’t know if the asset pool still exists. We don’t know how the money was applied and whether the bond receivable account was satisfied as to the asset pool or the investors.
 But we do know that each mortgage bond purports to convey an indivisible interest in the loans claimed by the asset pool, regardless of whether the loan actually made it into the pool or not. And we know that while the settlements are mostly proportional settlements in which less than 100 cents on the dollar was paid, the Federal Reserve is paying 100 cents on the dollar when the bond is sold. And to add to the complexity, we don’t know the terms of the settlement and whether the banks that are claiming to sell these worthless bonds to the Federal Reserve acquired any evidence of title to the bonds.
In the marketplace, banks are accepting payoffs on mortgages they sold. Then they are executing satisfactions of mortgages they don’t own — and never did own. And in court they are filing Foreclosures on the same mortgages and submitting credit bids on mortgages in which they lack ownership of any type of account receivable in which they fulfill the requirements of a definition of creditor who can submit a credit bid instead of cash. So the deed is issued on foreclosure without any sale having occurred because the property went to the credit bidder. And then the right to redeem  is further corrupted because nobody has bothered to require the production of documents showing the true balance of the receivable account (if there is one) after adjustments for receipt of loss mitigation payments.

UBS settles US mortgage lawsuit
http://www.news.com.au/business/breaking-news/ubs-settles-us-mortgage-lawsuit/story-e6frfkur-1226683410294

Bank Of America Calls Foreclosure Whistleblowers Liars
http://www.huffingtonpost.com/2013/07/12/bank-of-america-foreclosure-whistleblower_n_3588374.html

PRACTICE HINT: DO NOT LEAD WITH QUIET TITLE. YOU CAN’T GET THERE ANYWAY UNTIL AFTER YOU PROVE YOUR CASE THAT THE FORECLOSURE WAS WRONGFULLY BROUGHT. LEAVE THE BURDEN ON THE BANK. Attorney Argues “Produce the Note” and Makes a Bad Situation Worse for Homeowners Facing Foreclosure
http://implode-explode.com/viewnews/2013-07-17_AttorneyArguesProducetheNoteandMakesaBadSituationWorseforHomeown.html

OccupyHomes Rallies Around Homeowners Facing Foreclosure
http://www.truth-out.org/news/item/17579-occupyhomes-rallies-around-citizens-facing-foreclosure

JPMorgan Chase Loses Foreclosure Case in Oregon Jury Trial
http://247wallst.com/housing/2013/07/19/jpmorgan-chase-loses-foreclosure-case-in-oregon-jury-trial/

Irregularities in recording and delays in recording open up new channels of attack on mortgages and notes

CLICK NOW TO REGISTER FOR WORKSHOPS: DEFEND PROPERTY! COLLECT DAMAGES!

title-company-sues-countrywide-exposing-deep-flaw-in-loan-closings

PRO SE LITIGANTS AND LAWYERS ALIKE MIGHT WANT TO CHECK WITH REGULATORY AUTHORITIES TO CHECK DISCIPLINE (OR START DISCIPLINARY PROCEEDINGS) AGAINST THE REAL ESTATE BROKER, MORTGAGE BROKER, LENDER, APPRAISER, TITLE AGENT ETC. WHO PARTICIPATED IN THEIR LOAN ORIGINATION AND CLOSINGS. THE TRUE LENDER WAS NEVER DISCLOSED. (POSSIBLE CLAIMS AGAINST THEIR INSURANCE CARRIERS TOO FOR ERRORS AND OMISSIONS.)

THIS TAINTS THE TITLE OF THE COMMERCIAL PAPER (NOTE AND MORTGAGE), WHICH COULD MEAN THERE IS NO HOLDER IN DUE COURSE ANYWHERE. IF THERE IS NO HOLDER IN DUE COURSE, THAT COULD MEAN THAT THERE IS PARTY WHO HAS THE RIGHT TO ENFORCE THE MORTGAGE OR NOTE.

After all THEY knew what was going one — that this was a story of a lot of money looking for a signature on apiece of paper, where they were being paid to violate their duties and standards and professionals. YOU didn’t know this. The borrower is the person with the LEAST amount of actual information about who teh real players were, and how much they were getting paid. When you add all the fees “earned” and paid going up the securitization chhain, none fo which were disclosed to the borrower contrary to law, you might just end up with them owing more than any alleged delinquency and possibly more than the mortgage itself.

SOME PEOPLE ARE ASKING WHETHER THE RECENT ANNOUNCEMENTS THAT THE INVESTMENT FIRMS ARE BUYING BACK THE CERTIFICATES OF ASSET BACKED SECURITIES WILL MAKE ANY DIFFERNECE. THE ANSWER IS YES. PROCEDURALLY THEY ARE MOVING THEMSELVES A MICRO-STEP CLOSER TO AT LEAST ALLEGING THAT ANY DEFECT IN TITLE ON THE NEGOTIABLE INSTRUMENTS (MORTGAGE AND NOTE) HAVE NOW BEEN CURED. THIS THEN IS THE BATTLEGROUND: WHETHER THEY CAN CONVINCE SOME JUDGES THAT EVEN THOUGH THEY COMMITTED ACTS OF FRUAD AND DECEPTION, THE FACT THAT THEY RE-PURCHASED THE SECURITIES FROM THE TRUE HOLDERS IN DUE COURSE SOMEHOW CURES THE DEFECT AND SHIFTS THE BURDEN OF PROOF OVER TO THE BORROWER. NOT SO — WE’LL TAKE IT UP AT THE WORKSHOPS.

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ARTICLE FROM ARIZONA REPUBLIC AUGUST 15, 2008

Transnation fined $600,000 by Arizona mortgage regulator

Efforts to crack down on bad real-estate deals and illegal mortgage activities continue in Arizona.

Last week, Transnation Title Company, a subsidiary of LandAmerica, agreed to pay a $600,000 fine and a $97,000 examination fee to the Arizona Department of Financial Institutions.

Transnation was fined for not recording liens correctly on hundreds of Arizona home loans that involved Residential Asset Management, RAM. The loans were for properties across the state, but most of the business went through Transnation’s Pinetop, Ariz. Office.

Regulators found that on hundreds of loans, liens weren’t recorded on time or properly, which allowed for multiple loans on properties that lenders and investors didn’t know anything about.

Several transactions run through Transnation’s Pinetop office included buyers purchasing homes they never intended to live in and then deeding the trust back to RAM, according to the Department of Financial Institutions But RAM wouldn’t assume the loan, instead it took out other loans on the properties.

Regulators also found Transnation allowed RAM to be involved in its own escrow deals. Escrow or title agencies are supposed to be a neural, third party in real estate deals.

RAM is a familiar name to regulators. Last year, Tempe-based Home One Mortgage or SJJ Corp., lost its mortgage brokers license, in part for allowing RAM to use its license to make home loans. RAM is not licensed to handle escrows or mortgages in Arizona, according to the Department of Financial Institutions.

Draining equity

Former Phoenix mortgage broker Rick McCullough has been indicted on fraud and theft charges that stem from what regulators and prosecutors layout as a scheme to steal home equity from elderly Phoenix residents.

Earlier this summer, the Department of Financial Institutions banned McCullough from the mortgage business. Recently he pled not guilty to the felony charges against him, according to the Arizona Attorney General. McCullough, president of CactusCash, was indicted by a state grand jury in late June for the charges.

The indictment against McCullough says he supposedly persuaded homeowners to refinance their homes through his business and then invest most of that money into the real-estate market through him. McCullough allegedly charges excessively high fees and then failed to invest the homeowners’ funds in real estate and didn’t have assets to guarantee the loans.

Instead, according to regulators, McCullough invested the money jewelry. The Attorney General alleges he stole more than $400,000 from a handful of Valley senior citizens.

To file a complaint against a mortgage broker or title agency, go to www.azdfi.gov.

For complaints against real estate agents, go to www.re.state.az.us.

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