A NEW FACE in Government Activism in Securitization Scam

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Editor’s Comment:

Anyone who wants the job of being the county recorder takes a risk of being blamed for all the warts and defects that come out after they take office. So when somebody runs for public office without prior real estate experience like a Nurse, you know that community activism is on the rise and we all know why. The shell game and run-around that the banks and servicers are playing can only work so long.

The facts remain that the county recorders across the country fully understand that title is corrupted but they are mostly elected officials, a member of  a major political party and thus follow orders when told to do the Texas 2-step when it comes to removing illegal documents from the recording system or requiring proof of the authenticity of the documents and declarations in the documents.

We need many more people to run for office where it counts — the county level, get rid of the hacks who refuse to sue the banks for screwing up title, refuse to collect fees that are owed and would help the county budget, and refuse to hold those who submitted false filings accountable. THAT is where the banks have little influence. That is where they are weak politically. The lower the political office the less influence the bank has in preventing actions that would embarrass the mega banks.

Eventually the truth will all come out. It is seeping in through all the windows and doors. The logjam will break and we’ll know everything. And what we are going to find is that most mortgages were recorded without any transaction commenced between the the parties recited on the documents. We’ll find that the record is devoid of any real documentation between the real lenders (who might be impossible to determine with certainty because of commingling of funds in escrow accounts that ignored the existence of the REMICs). All that means is that the mortgages were fraudulently filed and therefore the foreclosures are invalid. There lies the path to salvation to our economy. Instead of the big boys getting a handout, the little people who were scrunched into the dirt by the boots of Wall Street titans are going to get a break.

Support with your money , effort and contacts and networking every candidate on the local level who runs for office on the platform of rejecting these illegal documents and throwing out the deeds of foreclosure based upon illegal mortgages and illegal, fabricated, forged and unauthorized documents.

Foreclosure Fraud Combatant Eyes Clerk of Court Role in Florida

By Jon Prior

Florida has been ground zero for foreclosure fraud, but even with multibillion-dollar settlements and federal consent orders, the state’s financial services industry may face new scrutiny from a community activist who’s taken a critical look at the industry and its practices.

Lisa Epstein, who’s running for clerk of court in Palm Beach County, was once an oncology nurse. For most of her career she saw her patients strike deals with their banks when they ran into debt problems, particularly with mortgage payments, once they became ill.

But when the housing crisis struck and foreclosures mounted, that changed. Banks and mortgage servicers overloaded with delinquent loans struggled with the paperwork and the complexity of linking struggling borrowers with decision-makers. To speed up the foreclosure process, reams of documentation was mishandled, signed improperly and filed at county courthouses.

In 2007, Epstein noticed her patients were no longer being helped. They were being rushed through the foreclosure system.

“That was my first hint that there was something very different,” Epstein said during a HousingWire interview.

So began her advocacy work in Florida fighting against banks and third-party firms handling the foreclosure process. In June, she was placed on the ballot for clerk of court of Palm Beach County, the third largest clerk office in the state.

If elected in August, she will be in charge of many things, including managing an overloaded docket, acting as treasurer and chief financial officer of the county’s funds, and most importantly, serving as the keeper of public record.

Her major focus will be on what she claims is a broken system, surrounding the cloudy chain of title flaws filed with the counties to this day. If state funding allows, she said she will perform wide-scale audits of the entire county database and develop reforms — even if that means shutting down the process entirely.

“I don’t know if it is fixable,” Epstein said. “But these are not truly legal instruments that convey proper property ownership. Conducting any sort of real estate transaction or sorting who really owns the loans in many cases will become an enormous legal burden because of the morass of documentation fraud.”

The Florida system remains a nightmare after the collapse of the Law Offices of David J. Stern in March 2011. Several other firms came under investigation and some settled claims before being shut down. The $25 billion foreclosure settlement involving 49 states (Oklahoma didn’t participate) includes language that will hold servicers accountable for any third-party firms that handle any aspect of a foreclosure filing.

Consent orders with the Office of the Comptroller and the Federal Reserve will also force servicers to monitor these firms, specifically Mortgage Electronic Registration Systems and Lender Processing Services ($23.87 1.23%).

New foreclosure filings in Palm Beach County increased in May by 3.6% from the previous month as servicers are looking to restart the process. The 1,356 new filings was 61% above levels seen in the year-ago period.

Both Epstein and incumbent Sharon Bock, who’s held the office since 2003 and is running for re-election, are concerned with keeping up because of pending budget cuts.

“We expect that our foreclosure division is one that will be heavily affected by these budget cuts,” Bock said in a statement accompanying the numbers last week. “My fear is if the trend of increased filings continues as it has in recent months, we will not have the ability to keep up with the volume. We will do our best, but it will be a challenge.”

Mortgage servicers have stated they’ve ended past robo-signing practices and are installing new policies to reduce risk in the system. Few, if any, borrowers, they claim, were foreclosed on improperly because of past flawed practices.

But the financial industry is watching this election closely. Should Epstein prevail, her appetite for audits and new investigations could wipe out any restart to an already backlogged foreclosure process.

Some county record keepers in other states already launched investigations of their own, some founded on faulty claims, but some may have real consequences. A report in one Massachusetts county claimed 75% of mortgage assignments were invalid. Another in San Francisco attempted to show similar results through an audit but shrivels under scrutiny through California case law.

The treasurer for the clerk of courts in two Michigan counties filed lawsuits against Fannie Mae and Freddie Mac to get fees levied during the recording of foreclosure property transfers. The GSEs used a government tax status to escape the fees, an exemption now being challenged.

Epstein said she would be on board with taking all of these actions and suggested the federal government go even further with a wide-scale probe. For this, Epstein is running into a lot of pushback. Her race against Bock has become one of the most heated in the local Florida elections.

“We have to solve a fraudulent process that is hurting our property value taxes, hurting our ability to do a short sale, hurting our ability to work with lenders,” she said. “It’s hurting the faith that there would be some protection. It’s damaging our court systems and yet our court systems are allowing this go on and on.”







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EDITOR’S NOTE: Whether it’s from natural causes, suicide, accident, or murder, the death of anyone is a tragedy for their family and those in their circle. Our condolences to the family and friends of Tracy Lawrence. Her death is not alone. Many people have turned to suicide, taking their families with them into whatever lies beyond this mortal coil. What I personally hope for, is that at the end of the day we have a new structure in place, governed by true morality as its first precept. Meanwhile, the system, the society, and the components of economics, politics and social services continue to decline into irrelevance as people suffer through the pains of the change that is coming.

Tracy Lawrence, Notary Public Who Blew The Whistle On Massive Foreclosure Fraud, Found Dead

Notary Public Who Blew Whistle On Massive Foreclos

The Huffington Post  

Tracy Lawrence, the notary public who blew the whistle on a massive foreclosure fraud scheme, was found dead in her Las Vegas home on Nov. 28, MSNBC reported.

Cause of death has not yet been determined, but Officer Jacinto Rivera, a Las Vegas Metropolitan Police Department spokesman, said the case was not being investigated as homicide. She was 43.

Earlier this month, Lawrence came forward and admitted to the Nevada Attorney General’s Office that she notarized 25,000 fraudulent documents for Lender Processing Services, a Florida company used by most major banks to process home repossessions. The documents were filed with the Clark County Recorder’s Office between 2005 and 2008, The Los Angeles Times reported.

Lawrence also accused two loan officers of allegedly running the massive robo-signing scheme, saying they forged signatures on tens of thousands of default notices. Nevada now alleges that Gary Trafford, 49, of Irvine, Calif., and Gerri Sheppard, 62, of Santa Ana, Calif., directed their employees to forge foreclosure documents, notarize the signatures on the documents they had forged and file the fraudulent paperwork in order to begin foreclosures on homes throughout the county.

Trafford and Sheppard have been indicted on more than 600 counts of offering false instruments for recording, false certification on certain instruments and notarization of the signature of a person not in the presence of a notary public. Authorities are currently negotiating the terms of their surrender, KSNV MyNews 3 reported.

Earlier this month, Lawrence pleaded guilty to one count of notarizing the signature of a person not in her presence, The Associated Press reported. Had Lawrence shown up at her sentencing hearing on Monday, she could have faced a potential sentence of up to one year in jail and a fine of up to $2,000.

On Nov. 17, Lender Processing Services issued a statement acknowledging that the signing procedures on some of documents were flawed. The company also agreed to fully cooperate with the attorney general’s investigation.

“I am deeply committed to ensuring that LPS meets rigorous standards of professional conduct and operating excellence,” newly appointed LPS President and CEO Hugh Harris stated. “I have full confidence in the ability of our leadership team and over 8,000 dedicated employees to deliver on that commitment.”

According to RealtyTrac, Nevada has had the highest foreclosure rate in the nation for 56 straight months.E


STUDY: Mortgage Assignments to Washington Mutual Trusts Are Fraudulent


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EDITOR’S NOTE: We know the foreclosures were gross misrepresentations of fact to the Courts, to the Borrowers and to the Investors. This article shows the crossover between the MegaBanks — sharing and diluting the responsibility for these fabrications as they went along. If you are talking about one big bank you are talking about all the megabanks.

The evidence is overwhelming. The reasons are many. But the fundamental theme here is that Banks are committing widespread fraud using the appearance of credibility just because they are banks.

Thus the strategy of pushing hard in discovery and persevering through adverse rulings appears to be getting increasing traction. Every time anyone, including judges, take a close look at this mess the conclusion is the same — the Banks’ foreclosures have been a sham. The homeowners still legally own their home and the lien is unenforceable or non-existent.

What part of the obligation of the borrower still exists? To whom is it payable? These are questions the Banks as servicers refuse to answer. It’s a simple set of questions that never had any bite to them until now.

From Lynn Symoniak

Mortgage Fraud

Bank of America
JP Morgan Chase
Lender Processing Services
WaMu Trusts
Washington Mutual
WMABS Trusts
WMALT Trusts

Action Date: August 6, 2011
Location: Jacksonville, FL

An examination of over 5,000 Mortgage Assignments to Washington Mutual
Trusts shows that these Trusts (WaMu, WMALT and WMABS) used Mortgage
Assignments signed by employees of JP Morgan Chase to foreclose. The
most prolific of the Chase signers, all from Jacksonville, Florida,
include Elizabeth Boulton, Margaret Dalton, Barbara Hindman, Patricia
Miner, Roderick Seda and Shelley Thieven. These Chase employees sign
as MERS officers on behalf of at least 30 different mortgage companies
to convey mortgages AND NOTES to Washington Mutual trusts that closed
years earlier.

In the vast majority of these cases, Bank of America is the Trustee.

Because the original loan documents are missing, Bank of America
allows Chase to make up new documents as needed to foreclose. The vast
majority of these Assignments state that the Trusts acquired these
mortgages in 2009 and 2010.

There are two separate frauds here:

1. not having the documents despite the promises to investors that the
documents were obtained and safely held; and

2. fabricating the replacement documents to foreclose.

In almost every case, Bank of America is the Trustee.

Did the FDIC just not notice any of this? There are thousands of these
specially-made Assignments signed by Chase employees for WaMu, WMALT
and WMABS trusts used across the country.

When Bank of America did not use documents fabricated by Chase to
foreclose, it used documents fabricated by LPS in Dakota County, MN.

Price Sheets Continue to State Services for “Correcting” Official Records


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BOMBSHELL: Check Out This Industry Catalog And Price Sheet For FABRICATED Foreclosure Documents

SCRIBD:  Lender Processing Services’ DOC Document Fabrication Price Sheet

You wanted concrete proof of widespread lost mortgage documentation?

Feast your eyes upon this.

A foreclosure lawyer sent this little beauty by email.  I had no idea the market was so robust for missing mortgage documents.  And apparently there is inflation within the foreclosure fabrication circles.  Prices to replace missing documents keep going up…;-)

UPDATE – Here’s an addendum from 4closureFraud.




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Lee Farkas of TBW was right when he said, “I could rob a bank with a pencil.”



EDITOR’S COMMENT: It’s like a checklist of things to examine when reviewing the document trail, the money trail and the loan closing procedures. At the heart of it lies not only the usual fraud and deceit, but what emerges is that the “substitute trustee” is no substitute trustee at all. And even if they were the trustee, they breached every duty set forth in the statutes governing the conduct of the trustee on a deed of trust.

The courts have repeatedly confirmed the extra duty of the Trustee on a deed of trust to exercise due diligence and good faith. What the banks have done is literally appoint themselves as the Trustee and then ran amok doing whatever they wanted. But the law catches up.

Virtually all deeds issued upon auction sales where the “credit bid” was entered, resulted in the issuance of a deed without the Trustee ever having received any consideration — no note and no money, leaving the obligation hanging out there. Just an oral “bid” in which the bidder does not identify any creditor and where the bidder does not tender the note as a credit bid or the money for the house. And if you drill down further you find that there is a cause of action for damages and injunctive relief against the original trustee, the substitute trustee and the parties behind this farce.

Here we have laid bare the following:

  1. Defective Notice of Default
  2. Improper Substitution of Trustee
  3. Notary Stamp Fraud
  4. Altered Affidavit of Mailing
  5. Fabricated Assignment of Deed of Trust
  6. Defective Notice of Sale

From Jake Naumer

This article was written by
George W. Mantor
The Real Estate Professor
Founder, American Foreclosure Resistance Movement

“in their rush to steal another home, Wall Street has inadvertently called attention to the massive repledging of the collateral and the tax evasion at the center of the securitization fraud.”

“I have before me six documents that could lead no reasonable person to any other conclusion than this: Bank of America, hiding behind a bogus Goldman Sachs Pooling and Servicing agreement aided and abetted by MERS, Litton Loan Servicing, Lender Processing Services, and Quality Loan Service, have manufactured documents, to try to steal the beneficial interest of an unknown creditor believed to be Washington based lender MILA, the originator, currently insolvent and in Bankruptcy. The Bankruptcy Trustee is suing MILA for fraud.

Robo-Signers, a Tangled Web Indeed

I was about seven years old when I heard my mother repeat this Sir Walter Scott phrase to my sister, “Oh what a tangled web we weave when first we practice to deceive.”

I’ve always thought it was more practical advice than moral lesson. Men who speak their minds tend to have few false friends and too many enemies but they don’t have to work to keep their stories straight. So, when they do say something, people know they mean it.

Where I come from, it’s so sparsely populated that there isn’t anyone to scam. Loggers, miners, and farmers come right to the point, and it makes some people uncomfortable.

Southern California is beautiful, and most of the people are terrific, but what I was not prepared for is the sort of tacit acceptance of bullshit…like an art form. I’ve been here more than thirty years and I still overhear things that make me involuntarily roll my eyes.

Not that long ago I had a conversation with a woman who asked me, “Do you know what your problem is?”

Here we go. I know the answer to that would take longer than a trip to the DMV, but just as I was about to concede one or two obvious shortcomings, she told me. “You are too direct!”

Ouch! Wow! I had no idea. Thanks for sharing. I’ll try to get better. I didn’t know that you could be too direct. You are either direct or indirect.

It got me wondering if it was a problem I wanted to fix. How would I go about it such a transformation? Is there a twelve step program for that where I can master the skills of less directedness? Do I need to set goals? Should I start out slowly with a few little white lies or should I jump right in and get a job at Goldman Sachs?

Because when it comes to tangled webs, Goldman Sachs is the epitome of deceit. They have admitted and substantial evidence exists that the Goldman plan was to deceive everybody and keep right on doing it until the courts stop them. Which the courts seem strangely disinclined to do despite mountains of evidence piling up at every imaginable agency.

So here I sit with the smoking gun, right in my lap.

Today, I have before me the remnants of GSAMP Trust 2006-HE3 and what has to be the clumsiest attempt ever to transfer the asset of another into a trust years after the cutoff date.

Trust me; you’re going to love this story. For in their rush to steal another home, Wall Street has inadvertently called attention to the massive repledging of the collateral and the tax evasion at the center of the securitization fraud.

This little bit of foreclosure fraud is an absolute classic and we just have to thank our friends at Bank of America for a perfect example.

Hold everything, Ladies and Gentleman…We Have a Winner; this has to be the steamiest pile of doo-doo, yet.

For the few people left out there who do not believe that many of the foreclosures are fraud, and Darrell Issa you know who you are, I have before me six documents that could lead no reasonable person to any other conclusion than this: Bank of America, hiding behind a bogus Goldman Sachs Pooling and Servicing agreement aided and abetted by MERS, Litton Loan Servicing, Lender Processing Services, and Quality Loan Service, have manufactured documents, to try to steal the beneficial interest of an unknown creditor believed to be Washington based lender MILA, the originator, currently insolvent and in Bankruptcy. The Bankruptcy Trustee is suing MILA for fraud.

A Defective Notice of Default

A document purporting to be A Notice of Default was prepared by LSI Title Company dated July 7, 2009 and signed by Merrilyn L. Aguas as Agent for Beneficiary. LSI Title is a division of Lender Processing Services recently under heavy fire for forging loan documents to accommodate illegal foreclosures.

But every indication is that the document was printed at foreclosure mill, Quality Loan Servicing in San Diego. I’m looking into that.

The Notice of Default was recorded on July 9th, 2009 by Elena Davis representing LSI Title Company (CA). But only against one of the borrowers, a husband and wife. Absent from the notice of default was the name of the husband.

This may have been an error, but the result is that the notice of default is defective. One of the very few requirements of a non-judicial foreclosure concerns the filing of the NOD.

Improper Substitution of Trustee

Coincidentally, also on July 7, 2009 in faraway Harris County Texas, a document purporting to be a Substitution of Trustee was prepared.

This is signed by Marti Noriega, who according to his or her LinkedIn page is AVP of Foreclosures at Litton Loan Servicing.

On this document she is representing herself as an Assistant Vice President of Mortgage Electronic Registration Systems, Inc.

She identifies LANDAMERICA/SOUTHLAND as the original Trustee, and Mortgage Electronic Registration Systems, Inc., as Nominee For MILA, as the Original Beneficiary.

Based on this representation, Quality Loan Service Corporation, a law office and well known foreclosure mill becomes the new Trustee under the original Trust Deed.

See how easy that was?

A trustee is supposed to protect the interests of the trustor as well. How a law firm working for the bank trying to steal the home can be the trustee is beyond me.

Notary Stamp Fraud

If that isn’t bad enough, we have notary fraud on the document.

This document purports to have been notarized by a Melissa Bell on 07/14/09, in Harris, Texas. A week after it was signed in San Diego. No big deal you say? Fair enough.

The notary signed the name M Bell, but her stamp clearly shows Melissa Bell. The law in Texas is that the notary must sign exactly as the name appearing on the stamp. Still too picky? They were busy? Okay.

The stamp has a commission expiration date of March 28, 2011. Multiple inquires to the Texas Secretary of State produced no evidence of a Melissa Bell whose commission expires on that date and if anyone knows where she is, we have some questions we’d like to ask her.

There is a Melissa Bell who works or did work for Bank of America. You don’t suppose…?

But wait, there’s more. This document, provided to the borrower, is not the same document recorded on file at the San Diego County Recorder’s Office.

The recorded document, not recorded until August 21, 2009 has been altered. Lined out are the words, “who proved to me on the basis of satisfactory evidence and hand printed “personally known to me”.

The unnotarized document without the interlineation obviously was the original? What effect does this change have? Why was the borrower or borrower’s attorney never provided a copy of the new and improved version?

In recording this document, there is no reference to the borrower so it does not show up in the County Recorders main public portal, the Grantor/Grantee Index, making it virtually invisible to the property owner.

Altered Affidavit of Mailing

An Affidavit of Mailing for Substitution of Trustee By Code was executed by Cynthia Tran representing that she is an employee of Quality Loan Service Corp., an agent for beneficiary whose business address is: 2141 5th Avenue, San Diego, CA 92101.

Herein she swears that she mailed a copy of the substitution on or before 7/16/2009. The copy she mailed to the borrower predated the altered copy in regard to the notarization.

There are two different versions of this as well; the recorded copy was signed by Ms. Tran, if she even exists. The signature line above the name Cynthia Tran is blank on the copy sent to the borrower. In addition, “/s/”, is on the signature line but absent from the recorded copy.

The Substitution wasn’t recorded until August 21, 2009. Why was the borrower mailed a different copy six weeks before it was recorded?

Fabricated Assignment of Deed of Trust

Frankly, I consider this the absolute masterpiece. Also dated 7/7/2009 1:50 PM is an Assignment of Deed of Trust signed again by Marti Noriega, who this time purports to be:

“Assistant Vice President of Mortgage Electronic Registration Systems, Inc., As Nominee For MILA, Inc., DBA Mortgage Lending Associates, Inc. A Washington Corporation.”

(And you think your job title is too long.) (Oh, and the DBA, well, it’s DOA. The original lender and beneficiary under the deed of trust was Mortgage Investment Lending Associates who ceased operation in 2007 and is in bankruptcy as mentioned above.)

Herein, Noriega names, “Bank of America, National Association as successor by Merger to LaSalle Bank National Association, as trustee under the Pooling and Servicing Agreement dated as of May 1, 2006, GSAMP Trust 2006-HE3.”

Of the Documents created in Harris Texas on July 7/7/2009 this is the only one that is time stamped.

Though purportedly created on 7/72009, it wasn’t notarized until November 20, 2009.

Further, this Assignment was not recorded until December 2, 2009 nearly a month after the posted sale date. Had the homeowner not filed a lawsuit, the property would have already have been sold before the assignment was recorded. Now that’s a slandered title.

The borrower was never provided a copy of this document and absent from the recording was any mention of the borrower’s name. As a result this document was not listed in the San Diego County Recorders Grantor/Grantee Index making it virtually invisible to the public and the borrower.

I simply cannot wait to hear the depositions of the people who cooked this up. They want us to believe that a document supposedly created on July 7, 2009 along with two others wasn’t notarized until more than two weeks after the sale date.

They also, and this really is my favorite part, want us to believe that an employee of Litton can transfer an asset from a lender in bankruptcy to a pool of loans that is closed and, by its own rules, cannot accept assets in default and cannot accept any but a performing replacement loan after mid-2006. It stopped reporting to the SEC in 2008, so it must be an empty shell into which they try to launder the theft of the property and disguise the broken chain of title.

So guess what I did? Yup, I picked up the phone and called the Trustee handling the MILA bankruptcy.

Keep in mind that he had been in control of the company for more than two years, winding down MILAs assets and liabilities. He will provide an affidavit to the effect that it did not happen.

Another complete fabrication.  According to him, MILA originated loans to sell them and did not retain notes or trust deeds.

I can’t wait to have Marti Noriega explain this.

What this blizzard of phony documents reveals is the biggest crime in history.

The Pooling and Servicing Agreements are a complete fiction. The loans that are referenced are just that, a reference to something seemingly tangible and yet diluted to worthlessness.

The Pooling and Servicing Agreement, by its very language, requires that all loan documents go to the trust properly assigned and endorsed upon closing and no later than 180 days in rare circumstances which do not apply here.

That means the Mortgage or Trust Deed and the Note should have been with the custodian of the trust documents long before August of 2009.

But wait. The loan, or at least the pledge of the loan, already shows up in the GSAMP Trust 2006-HE3. Out of more than 10,500 loans this is referenced as number 4,067.

That means that MILA did not comply with the terms and did something else with the note and deed of trust. Now an employee of a division of Goldman Sachs, Litton, is trying to use the opportunity to seize a property to which they have no legal right.

The Assignment of the Trust Deed was assigned to the trust three years after closing. So why wasn’t it assigned at origination?

Where oh where might it have been for three years? Is it referenced in multiple pools and legally assigned to none?  Was it used to double or triple fund the loan? And where oh where do you suppose the promissory note might have gone to?

More importantly, this activity causes the trust to lose its status as a REMIC with preferred tax provisions. These cases would be a slam dunk for the IRS. But the IRS, just like every other agency responsible for this economic Katrina, has much smaller fish to fry. Doesn’t anyone, anywhere, in a position of authority, have any balls?

Also, at the exact same time the loan was being originated by MILA, MILA also registered a pool of mortgage backed securities with the SEC. But there is scant information and it appears that it may never have been completed. Why? Would its existence allow MILA to re-pledge the obligation?

MILA owner Wayne Sapp, like Taylor Bean and Whitaker CEO Lee Farkas was, in all likelihood, pledging the loans to multiple pools, submitting the same loan to multiple warehouse lines of credit and keeping the proceeds from those repledgings and destroying the original notes and trust deeds.

According to the MILA bankruptcy trustee, MILA was insolvent as far back as 2004 and covered their position through fraud. Selling the loans to multiple pools and destroying the original Note and Trust Deed would be an easy way to do that because the aggregators of the loan pools knew it was all designed to implode and provide plausible deniability when it did. Knowing the pools were destined to fail, Wall Street bought Credit Default Swaps.

Litton Loan may claim they have the note and trust deed but if they did, why would they produce all of the forged documents to try to justify the foreclosure? And if you knew the documents had been destroyed, why not just launder the theft and the title through a confusing, possibly nonexistent Goldman Sachs Trust on its way to Bank of America and get a kickback?

In a Florida lawsuit Bank of America says the following in one of their pleadings, “Indeed, it appears as though many loans and other mortgage assets have been double-and even triple-pledged to various constituencies.”

Or maybe more, way more. If you do it twice, you might as well do it over and over.

Defective Notice of Sale

On October 13, 2009, Quality Loan Service issued a Notice of Trustee Sale Scheduled for November 4, 2009. This document was recorded on October 16, 2009, six weeks prior to the recording of the Assignment of the Deed of Trust.

Here again the borrower’s copy is unsigned.

In this case, it isn’t just the borrower whose home they are trying to steal, they are also trying to steal an asset from the true beneficiary who may actually possess the note and the Deed of Trust. These aren’t scrivener’s errors or the result of overworked employees. This is RICO.

This is a conspiracy against a presently unknown entity because we know from the documents recorded by the servicer, Litton; that it isn’t that entity.

The evidence in this case, as submitted by the foreclosing attorneys, shows that the loan was originated by MILA and that MILA although a bankrupt entity is the beneficiary under the Deed of Trust and the only party with standing to foreclose.

The MILA bankruptcy Trustee who has been overseeing the company since 2007 denies that Marti Noriega had any authority regarding MILA.

What does it all prove? It proves that Lee Farkas of TBW was right when he said, “I could rob a bank with a pencil.”

And you can steal people’s homes the same way. But beware the web you weave; Bank of America, you sure got some ‘splaining to do. Let the “disco” and the “depos” begin, this is gonna’ be some fun.

Fed penalizes 10 banks on mortgage practices

Fed penalizes 10 banks on mortgage practices

By Steve Goldstein
WASHINGTON (MarketWatch) — The Federal Reserve said it’s taken enforcement action against 10 banks over “a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing. These deficiencies represent significant and pervasive compliance failures and unsafe and unsound practices at these institutions.” The banks are Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 12.86, -0.27, -2.06%) , Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 4.41, -0.03, -0.56%) , Ally Financial, the HSBC North America unit of HSBC Holdings /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 53.34, -0.22, -0.41%) , J.P. Morgan Chase /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 44.89, -0.08, -0.18%) , MetLife /quotes/comstock/13*!met/quotes/nls/met (MET 43.88, -0.25, -0.57%) , PNC Financial Services /quotes/comstock/13*!pnc/quotes/nls/pnc (PNC 61.87, -0.01, -0.02%) , SunTrust Banks /quotes/comstock/13*!sti/quotes/nls/sti (STI 28.15, -0.04, -0.14%) , U.S. Bancorp /quotes/comstock/13*!usb/quotes/nls/usb (USB 25.95, +0.11, +0.43%) and Wells Fargo /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 29.89, -0.26, -0.86%) . In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc., which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions

Can I Borrow Your Law License?

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

“In its S.E.C. filing, Prommis alerted potential investors that it could face challenges from bar associations, prosecutors or homeowners that its relationship with its law firms constituted the “unauthorized practice of law” or involved “impermissible fee sharing” arrangements.”

“The relationship between the Wall Street specialists and a law firm appears to work like this: A private equity firm, in a transaction worth tens of millions of dollars, buys a wide range of services used by the law firm, like its accounting, computer data, document processing and title search departments. Then, a subsidiary of that private equity firm or an entity it controls makes money by providing those services back to that law firm or other businesses for a fee.”

EDITOR’S COMMENT: It was a just a matter of time. Ask any of the anti-foreclosure mills how long and how much money it takes to build up an effective machine to counter the rush to foreclosure, and it doesn’t take a rocket scientist to realize that Stern, Bosco, Baum, Watson et al were getting their money from someplace, and that someplace HAD to be Wall Street. Wall Street effectively owns the foreclosure mills. Bar prosecutors in many states are taking a hard look at the referral of these cases for UPL (Unauthorized Practice of Law) and conspiracy. It’s a felony in most states and there are actual manuals published in many of these states that instruct prosecutors on how to prosecute UPL. It isn’t sexy, but it has a lot of teeth, as I have mentioned before, comparing to how they got Al Capone on income tax evasion.

So the owner of small law firm gets an offer he can’t refuse. We’ll buy out the guts of your firm whether it exists or not. We’ll put in the money to build it up with people, equipment, space, etc. We’ll lease it back to you at a guaranteed amount of money that will make you rich. Just sit back and do nothing. we’ll do the rest. Combined with the admission that the decision as to whether a homeowner would be declared in default was “outsourced” to a computer rather than a person, the pieces are falling together like a jig saw. That decision-making process was also used to “decide” which institution would foreclose — to prevent the obvious inquiries from more than one foreclosure on the same house initiated in the name of two or more supposedly separate and distinct entities. The purpose is to provide “plausible deniability” to the people involved and technical hair-slitting defenses to keep their licenses, keep the money they made, and maintain control of the biggest title fraud in the history of the world.

October 20, 2010

Foreclosures Profit Some Equity Firms


With a surge in lawsuits against law firms specializing in foreclosures, a case in Mississippi is casting light on another aspect of the mortgage mess — the connection between Wall Street private equity firms and those law firms, often known as foreclosure mills.

The lawsuit on behalf of homeowners claims that Great Hill Partners, a private equity firm, has benefited from what the lawsuit calls an illegal fee-splitting arrangement between Prommis Solutions and several of the busiest foreclosure law firms it controls. Great Hills is the biggest stakeholder in Prommis, a company that acts as a middleman between mortgage servicers and law firms.

A lawyer for Prommis rejected that claim, and officials of Great Hill Partners did not respond to inquiries. But a review of public filings, company news releases and other public statements shows that several private equity firms or entities they control have stakes in the business operations of some of the busiest foreclosure law firms in New York, California, Connecticut, Florida, Georgia and Texas.

Some of those law firms — like the offices of David J. Stern of Plantation, Fla., and Steven J. Baum of Amherst, N.Y. — are among those that are either under scrutiny by law enforcement officials or face actions by homeowners contending that they used inaccurate or fraudulent mortgage-related documents. Both lawyers have denied any wrongdoing, and neither has been charged with a crime.

The influence, if any, that private investors are having on the practices of the foreclosure mills is not clear. But the issue is likely to be examined in coming months in lawsuits like the one in Mississippi and as a nationwide task force of state attorneys general start their inquiry into the accuracy of mortgage documents.

To maximize investment returns, private equity firms often squeeze down costs in the operations they acquire. And some legal experts suggest that could be a factor in the quality of legal documents generated by foreclosure mills.

“The concern is that you are pushing production down to least-cost producer,” said Susan Carle, a professor at American University Washington College of Law.

Tom Miller, the Iowa attorney general who is heading up the task force investigating questionable document practices, said he was not aware that private equity firms had acquired some foreclosure-related operations. While there is no law against such purchases, Mr. Miller said the issue could prove significant because it expanded the possibilities of where and how the foreclosure system failed.

“If this is happening, this is something we are concerned about and would want to find out more about it,” Mr. Miller said in a telephone interview.

The investors involved in foreclosure mills include a publicly traded investment fund, Ares Capital, as well as other midsized and small buyout firms like Great Hill Partners.

The involvement of private equity firms in the legal industry is not new. But their involvement with foreclosure mills appears to have started about five years ago, just as the housing market was starting to collapse and the number of foreclosure procedures was beginning to boom.

The relationship between the Wall Street specialists and a law firm appears to work like this: A private equity firm, in a transaction worth tens of millions of dollars, buys a wide range of services used by the law firm, like its accounting, computer data, document processing and title search departments. Then, a subsidiary of that private equity firm or an entity it controls makes money by providing those services back to that law firm or other businesses for a fee.

For example, about three years ago, Tailwind Capital, a private equity firm in Manhattan, acquired many of the business-related operations of a law firm near Buffalo run by Mr. Baum, which does one of the highest volumes of foreclosures in New York State. Soon afterward, the fund bought similar operations from one of Connecticut’s biggest foreclosure law firms, Hunt Leibert Jacobson of Hartford.

Ares Capital, which financed the move, is also now a co-investor in those assets, which are held in a Tailwind unit called Pillar Processing, a public filing indicates.

Similarly, a private equity firm in San Francisco, FTV Capital spearheaded a $27 million investment in 2007 in an entity that buys law firm business operations and then uses them to provide services back to firms specializing in “foreclosure, bankruptcy and eviction,” according to a news release issued by the firm.

“We have been keenly focused on the mortgage-default services space,” the buyout fund stated in a 2007 news release. “The space is important to our strategic investors which represent six of the top 10 mortgage investors/servicers.”

In an e-mail, a spokeswoman for FTV Capital said that company officials were not available for comment.

Law firms receive a relatively low fee from companies that service home loans, say about $1,200 a case for handling a foreclosure-related proceeding. But those fees can translate into big profits for lawyers and their private equity partners when tens of thousands of foreclosures are involved. The law firms and the private equity firms have structured these deals with an eye toward avoiding legal statutes and ethical rules like those that bar fee-splitting between lawyers and nonlawyers.

But that relationship has been challenged in the Mississippi lawsuit against Prommis and Great Hill Partners.

Another company, Lender Processing Services, is also accused in the lawsuit of illegally splitting fees with foreclosure law firms; it also denies doing so.

The roots of Prommis, based in Atlanta, trace back to 2006 when the company acquired the back-office operations of McCalla Raymer, one of the country’s biggest foreclosure law firms. Great Hill Partners states on its Web site that it was interested in the acquisition because it reflected a way for it to profit from the housing downturn.

In subsequent years, Prommis expanded its operations nationwide by buying the back-office operations of other major foreclosure law firms, according to a recent Securities and Exchange Commission filing made by the company in connection with a planned initial stock offering.

According to that June filing, Prommis now generates revenue by providing services like document processing to the same law firms that handle nearly all of the foreclosures initiated by the loan servicers with whom Prommis works.

In a telephone interview, Prommis’s general counsel, Richard J. Volentine Jr., said that the company did not split fees with its affiliated law firms and that those fees were paid directly to those firms by the loan servicers.

In its S.E.C. filing, Prommis alerted potential investors that it could face challenges from bar associations, prosecutors or homeowners that its relationship with its law firms constituted the “unauthorized practice of law” or involved “impermissible fee sharing” arrangements.

Prommis also stated in that filing that any steps that slowed the pace of foreclosures, like government programs that helped homeowners renegotiate loans, would hurt its revenue.

Julie Creswell contributed reporting.

Lender Processing Services, Inc. Contact Info

In the secured offices (and network operations center) of this entity is the REAL STORY about the fraud being perpetrated upon the U.S. Court system and every post 2001 borrower, whether they are in distress or not. Here is where the system works its charms — from avoiding actual title reports, relying upon much less expensive credit reports, to the fabrication and probable forgery of thousands of documents in hundreds of thousands of foreclosures.

In law there is a duty to preserve evidence once party is aware of litigation concerning that evidence. If you are filing a fraud count you might want to consider naming LPS as a co-defendant. Either way you definitely want to issue a subpoena for their records concerning your loan.

Contact Kyle Lundstedt
and tell him to stop harassing us.

Lender Processing Services, Inc.

601 Riverside Avenue
Jacksonville, FL 32204

General Information: 904.854.5100
Toll-free (U.S. only): 800.991.1274
Fax: 904.854.4124

E-mail: mortgage.marketing@lpsvcs.com

Rally in Tally and Other News

It looks bad for the Florida Banker’s Association (FBA) effort to convert Florida into a non-judicial foreclosure state. Wrong time in the wrong place under the wrong circumstances. Attorney Weidner was seen on TV giving instructions to homeowners to have them lobby legislators who were not too keen on the idea anyway, but you can never be sure when you have a strong bank lobby. Once there was a Community Bankers Association in Florida, but it was gobbled up by FBA. FBA is dominated by the major banks and does little to foster the interests of consumers or small banks who serve consumers.

Don’t expert FBA to give up. It is a time honored practice to be persistent and tack on unrelated legislation to an otherwise acceptable bill. State legislators in all 50 states have precious little time to actually read all proposed legislation and they often vote off of summaries prepared by legislative aides or third parties. (That is how the Boston Strangler was cited for his efforts at population control by the Texas legislature about 20 years ago). So expect them to attempt to strangle their victims by surprise. Maintain vigilance.

In the meantime, here’s a call for some help for attorney Weidner and frankly for everyone else. It’s all about the fix in the auction of foreclosed homes and who is getting the benefit of a wrongful foreclosure with control of the title being directed by a non-creditor:


From Matt Weidner Esq at http://www.mattweidnerlaw.com

I’ve been hearing chatter and rumors about parties affiliated with the foreclosure mills buying properties after they have completed the foreclosure and now apparently reporters have been hearing such chatter as well.

If anyone has details on such transactions from anywhere in the state, please email that information to me at weidnerlaw@yahoo.com. Some of you good researchers out there, this could be bombshell material. If you’ve got the time, I would be looking at all sales in a given area, then backtrack that sale to see if the last record was a certificate of title. I would suspect that properties would first be going into LLCs or land trusts so multiple deeds going into these would catch my attention.

We uncovered a mountain of questionable information last time I asked for Assignments, and federal investigations across the country are currently underway into the assignment practices, most notably into the practices of Lender Processing Services, LLC… but that’s just the tip of the iceberg. The feds move slowly, but unlike other crimes, these paper crimes leave a long, recorded trail.

So get out there are poke around…let me know what you find

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