Aurora Home Loan (Dissolved –now DLJ Mortgage) Goes Down in Flames

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The only thing I would add to this is that Aurora was never real — it was a sham corporation to continue the illusion of ownership and rights to enforce unenforceable mortgages that were fraudulently created and where ownership was fraudulently created by self serving documents. The purpose of Aurora was the same as what Chase did — create a vehicle by which ownership of loans or rights to enforce are claimed to exist even when they don/t Aurora was a creature of the now bankrupt Lehman Brothers. It is interesting that Aurora Loan Services is now DLJ Mortgage which matches with an old name on Wall Street — Donaldson, Lufkin and Jenrette — another investment bank that was active in “securitization.” So we have gone from Bankrupt Lehman to DLJ who was a player all along.


March 5, 2015

Court of Appeals Case No. 32A04-1403-MF-104

Appeal from the Hendricks Superior Court
The Honorable Matthew G. Hanson,
Special Judge
Cause No. 32D05-1109-MF-522

On July 31, 2009, Plunkitt and Imbody filed a joint Indiana Trial Rule 12(B)(6) motion to dismiss, arguing that Aurora could not enforce the note unless it showed that it was in possession of the original note. On the date of the hearingon the motion to dismiss, Aurora produced the original note, unendorsed, with no allonges attached to it. At the hearing, Aurora requested and received additional time to respond to the motion to dismiss. Three months later, in October 2009, Aurora filed its response to the Defendants’ motion to dismiss. To its response, it attached for the first time an “Allonge to Note” which purported to show that CIT had endorsed the note to Aurora. Appellant’s App. pg. 114. Aurora also argued, as an alternative theory, that it was entitled to enforce the note as a non-holder transferee pursuant to Uniform Commercial Code (“U.C.C.”) section 3-301(2), codified at Indiana Code sections 26-1-3.1- 301(2).
Plunkitt and Imbody filed a motion to strike the purported allonge and Aurora’s new theory of recovery, emphasizing that the undated allonge had not been produced or even mentioned during the nearly two years of litigation of the matter and that Aurora’s alternative theory of recovery was outside the scope of the pleadings. The trial court agreed with the Defendants and struck the allonge and the alternate transferee argument. The court then granted the Defendants’ motion to dismiss, noting that “striking having occurred, evidence that [Aurora] is the holder of the Note that is the basis of litigation in the within cause is totally lacking.” Appellant’s App. p. 126. Aurora moved to file a second amended complaint, and the trial court denied the motion. Aurora did not appeal the dismissal of its November 7, 2007 complaint.

In September 2011, nearly two years after the trial court granted the Defendants’ motion to dismiss in the first cause of action (“Aurora I”), Aurora filed another complaint under a separate cause number in the same superior Court.The complaint sought to enforce the note pursuant to Indiana Codesection 26-1-3.1-301 and alleged the same or substantially similar facts as the complaint filed in Aurora I. To the complaint, Aurora attached both the allonge stricken by the trial court in Aurora I and a second allonge, which purported to contain a blank endorsement of the note by Aurora. On November 1, 2011, Plunkitt and Imbody filed a motion for a more definite statement, noting that Aurora failed to state under which legal basis in Uniform Commercial Code section 301 it sought to enforce the note. Aurora amended its complaint on December 7, 2011, asserting that it was the note’s holder pursuant to U.C.C. section 301(1), codified at Indiana Code section 26-1-3.1-301(1). On January 12, 2012, Plunkitt and Imbody filed a joint motion to strike both allonges and to dismiss the case pursuant to Trial Rule 12(B)(6), Trial Rule 12(B)(8), and principles of res judicata. The trial court held a hearing on the Defendants’ motion to dismiss on December 5, 2013. At the hearing, counsel or Aurora informed the trial court that Aurora Loan Services had been dissolved and noted that it had filed a motion to substitute DLJ Mortgage in Aurora’s place as plaintiff.
The trial court held Aurora’s motion to substitute plaintiff in abeyance pending the court’s ruling on the Defendants’ motion to strike and motion to dismiss. On December 9, 2013, based in part on the  Aurora I court’s order regarding the purported allonge, the trial court granted the Defendants’ motion to strike the allonges and dismissed the complaint pursuant to 12(B)(6), finding that “Aurora is still not a party with any provable right to proceed against the Defendant.” Appellant’s App. p. 20. The trial court denied the Defendants’ motion to dismiss pursuant to 12(B)(8) and principles of res judicata, noting that “the issue of whether default has occurred is still a matter that can be heard, but must be pursued by a correct Plaintiff” and that “the prior matter that was dismissed was done so based on the fact that the [Aurora] could not prove that they had a right back then any more than they can prove they have a right now.” Appellant’s App. p. 21.
Aurora filed a motion to correct error on January 9, 2014. In its motion, Aurora argued that the trial court failed to apply the proper standard when striking the two allonges and in determining that Aurora was not entitled to enforce the note and that the trial court should have converted the Defendants’ motion to dismiss to a motion for summary judgment. Aurora also requested leave to file a second amended complaint to assert an alternative theory of recovery based on Indiana Code section 26-1-3.1-301(2) and -301(3). The trial court denied Aurora’s request for leave to file a second amended complaint and denied Aurora’s motion to correct error.
For all of these reasons, we conclude that the trial court did not abuse its discretion in striking two allonges submitted by Aurora with its complaint and did not err in denying Aurora’s motion for leave to amend its complaint. The trial court did err in failing to convert the Defendants’ motion to dismiss to a motion for summary judgment, but because Aurora was provided a unique and ample opportunity to rebut the Defendants’ arguments over the course of two cases involving the same facts, this error was harmless.

BAILOUT TO STATE BUDGETS: AZ Uses Housing Settlement Money for Prisons

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Editor’s Comment:

The general consensus is that the homeowner borrowers are simply at the bottom of the food chain, not worthy of dignity, respect or any assistance to recover from the harm caused by Wall Street. Now small as it is, the banks have partially settled the matter by an agreement that bars the states from pursuing certain types of claims conditioned on several terms, one of which was the payment of money from the banks that presumably would be used to fund programs for the beleaguered homeowners without whose purchasing power, the economy is simply not going to revive. Not only are many states taking the money and simply putting it into general funds, but Arizona, over the objection of its own Attorney General is taking the money and applying to pay for prison expenses.

Here is the sad punch line for Arizona. The prison system in that state and others is largely “privatized” which is to say that the state “hired” new private companies created for the sole purpose of earning a profit off the imprisonment of the state’s citizens. Rumors abound that the current governor has a financial interest in the largest private prison company.

The prison lobby has been hard at work ever since privatizing prisons became the new way to get rich using taxpayers dollars. Not only are we paying more to house more prisoners because the laws a restructured to make more behavior crimes, but now our part of the housing settlement is also going to the prisons. Another bailout that was never needed or wanted. Meanwhile the budget of  Arizona continues to rise from incarcerating its citizens and the profiteers (not entrepreneurs by any stretch of the imagination) are getting a gift of more money from the state out of the multistate settlement.

Needy States Use Housing Aid Cash to Plug Budgets


Only 27 states have devoted all their funds from the banks to housing programs, according to a report by Enterprise Community Partners, a national affordable housing group. So far about 15 states have said they will use all or most of the money for other purposes.

In Texas, $125 million went straight to the general fund. Missouri will use its $40 million to soften cuts to higher education. Indiana is spending more than half its allotment to pay energy bills for low-income families, while Virginia will use most of its $67 million to help revenue-starved local governments.

Like California, some other states with outsize problems from the housing bust are spending the money for something other than homeowner relief. Georgia, where home prices are still falling, will use its $99 million to lure companies to the state.

“The governor has decided to use the discretionary money for economic development,” said a spokesman for Nathan Deal, Georgia’s governor, a Republican. “He believes that the best way to prevent foreclosures amongst honest homeowners who have experienced hard times is to create jobs here in our state.”

Andy Schneggenburger, the executive director of the Atlanta Housing Association of Neighborhood-Based Developers, said the decision showed “a real lack of comprehension of the depths of the foreclosure problem.”

The $2.5 billion was intended to be under the control of the state attorneys general, who negotiated the settlement with the five banks — Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally. But there is enough wiggle room in the agreement, as well as in separate terms agreed to by each state, to give legislatures and governors wide latitude. The money can, for example, be counted as a “civil penalty” won by the state, and some leaders have argued that states are entitled to the money because the housing crash decimated tax collections.

Shaun Donovan, the federal housing secretary, has been privately urging state officials to spend the money as intended. “Other uses fail to capitalize on the opportunities presented by the settlement to bring real, concerted relief to homeowners and the communities in which they live,” he said Tuesday.

Some attorneys general have complied quietly with requests to repurpose the money, while others have protested. Lisa Madigan, the Democratic attorney general of Illinois, said she would oppose any effort to divert the funds. Tom Horne, the Republican attorney general of Arizona, said he disagreed with the state’s move to take about half its $97 million, which officials initially said was needed for prisons.

But Mr. Horne said he would not oppose the shift because the governor and the Legislature had authority over budgetary matters. The Arizona Center for Law in the Public Interest has said it will sue to stop Mr. Horne from transferring the money.

Hating and Hate Speech

It’s important especially now in the political season. People become attached to their candidates in an emotional way. And in the heat of battle they come to despise the other candidates and the people who support them. Besides the obvious damage to our psyche and souls, there is another more practical negative consequence that hurts all of us.

Fear and Hating is the tool of politicians. It distracts us from morality and from exercising independent judgment based upon real facts, rather than sound bites that trigger our emotional “hate” response. The fact is that none of us really know what any of the candidates will do once in office. We don’t even know what emergencies they will confront. Thus having such iron-clad convictions that we exclude everything contrary to the views of “our” candidate, deprives us all of resources we need in a complicated and difficult world.

My basic rule of thumb when judging a candidate is whether he or she provokes me to think, ponder, and wonder how things could be better. I’m looking for someone who understands the nuances and complexities of the world and trusts me to consider the possibilities. The corollary is that a candidate who engages in attacks, in the politics of fear and hate, is one who cannot be trusted to do anything right for me. 

The fact that attack politics works is predictable. Most of us don’t have the time to consider ambiguity in our lives and we want someone “out there” to “just do it.” When we are on the run and we hear a sound bite how someone will fight for us, that’s all we need to know, or is it?


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