This is Rep. Alan Grayson explaining the crisis of foreclosure fraud and how it links to the entire securitization chain of Wall Street.

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One of My First Videos 2/10/2010

This is what made plenty of noise!

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This is the actual “BOGUS ASSIGNEE” that was found…then came many.

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The recent announcements by J.P. Morgan Chase and Ally Financial that they were freezing some foreclosures because of paperwork irregularities raises a key question: How many more mortgage companies employed “robo-signers?”

In a sworn deposition in July, Erica Johnson-Seck, an Austin, Tex.,-based vice president for bankruptcy and foreclosure for OneWest Bank, said she and her team of seven others sign 6,000 documents a week or about 24,000 a month without reading all of them.

Johnson-Seck estimated that she spent no more than 30 seconds to sign each document.

She explained that while she does not check everything, she does check some information, “which is why I said 30 seconds instead of two seconds.”

Continue reading…WASHINGTON POST

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“Unfortunately, concerns have been raised that Ally’s practices are not an anomaly in this industry, and that these bad practices are used by numerous other companies as well,”

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THANK YOU OHIO!!!!!

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SAN FRANCISCO (Reuters) – An outcry over questionable foreclosures by GMAC Mortgage and other lenders is likely to hit some states more than others because of major differences in real estate law across the nation.

But ramifications for federal taxpayers and investors will depend on the costs of clearing up the problem, the latest fallout from the bursting of the U.S. real estate bubble.

GMAC Mortgage announced last week that it had suspended evictions and post-foreclosure closings in 23 states due to concerns over paperwork. In order for a lender to foreclose on a property, it must prove that it actually checked the borrower’s loan agreements, and that the homeowner defaulted.

But the unit of Ally Financial, which is 56.3 percent owned by the U.S. government after a $17 billion bailout, said employees preparing foreclosures had submitted affidavits to judges containing information they did not personally verify.

“It’s a real mess,” said Justice Arthur Schack, a jurist on foreclosure issues who sits on the New York State Supreme Court in Brooklyn.

GMAC’s announcement has raised doubts about whether some people lost their homes without good reason. Attorneys general in several states, including California, Colorado, Illinois and Ohio, are investigating.

“The law demands that lenders prove their case in foreclosure actions,” Illinois Attorney General Lisa Madigan said last week.

But Ally characterizes the problem as merely technical, arguing that the underlying facts in each foreclosure are accurate.

“We are confident that the processing errors did not result in any inappropriate foreclosures,” it said in a statement last week.

GMAC landed in its predicament after one of its employees testified in a December 2009 deposition that he signed off on tens of thousands of affidavits containing information he did not verify.

The company said it has “substantially increased” the number of employees to verify documents, provided additional training, and suspended evictions out of an “abundance of caution.”

Ally isn’t the only firm under the microscope.

JPMorgan Chase & Co is delaying its current foreclosure proceedings and has begun to systematically re-examine related documents after discovering that some employees may have signed affidavits in some cases without personally reviewing the files.

Lawyers in Florida are questioning JPMorgan’s practices after discovering one of its executives did not check the details of its claims against a homeowner.

The executive said she had been part of an eight-person team that signs 18,000 documents a

Continue reading… REUTERS

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North American Title Complaint to California–Fraudulent Documents

From: Brian Davies

Complaint to the State of California on title and escrow fraud. Security interest not perfected. Married sole and separate. Not single. Never can a married man ever be listed as single. Let alone I was married and they never got a quit claim release.

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I feel this is the beginning of this as well.

Hat Tip to a subscriber on this:

Erika Herrera CA Notary Public No. 1290845 Revocation Cert 9-29-10,

If Erika Herrera Notarized your foreclosure documents the foreclosure is illegal!!

Employed by Washington Mutual and acting as a Notary was not a legal Notary in California where she worked and notarized thousands of foreclosure documents. Please see attached and inform all of your members nationwide!

She has notarized documents including affidavits and assignments.

Scribd

For Immediate Release

SECRETARY BRUNNER OUTLINES TWO LINES OF ATTACK IN FIGHTING HIGH OHIO FORECLOSURE RATES

COLUMBUS, Ohio – Ohio Secretary of State Jennifer Brunner, Ohio’s chief elections officer and the state officer responsible for licensing notary publics, today issued a directive to boards of elections that foreclosures cannot be used without further investigation to disqualify voters and revealed that she has referred specific instances of notary abuse occurring at Chase Home Mortgage in Columbus and by the Mortgage Electronic Registration Systems, Inc. (MERS) to a federal prosecutor for investigation.

DIRECTIVE ON VOTERS FACING FORECLOSURES: Secretary Brunner, in Directive 2010-66, instructed Ohio’s 88 county boards of elections that they may not cancel an Ohioan’s voter registration based solely on the fact that the person is involved in the foreclosure process.  The filing of a foreclosure action does not affect a voter’s right to vote until there is a final judgment entry, including the passage of at least 30 days from the date of the entry because of the right of appeal, and verification that the person no longer resides at the property. Ohio continues to experience high residential foreclosure rates.

Those who lose their homes because of foreclosure may wait until Election Day to update their address. Boards are instructed in the directive how to help voters displaced because of foreclosure, based on whether they move (1) within the same precinct, (2) within the same county but to a different precinct, or (3) to a different county in Ohio.  Voters facing foreclosure may use their current location of residence as their residence for the purposes of voting.

REFERRAL OF CHASE HOME MORTGAGE AND MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. TO FEDERAL PROSECUTOR: Secretary Brunner, in two letters dated Aug. 11, 2010 and Sept. 1, 2010, referred matters of alleged notary abuse in thousands of home mortgage foreclosures by Chase Home Mortgage and the Mortgage Electronic Registration Systems, Inc. to U.S. District Attorney Steven Dettelbach in Cleveland. Citing two depositions, (one & two) of Chase employee Beth Cottrell, taken in Columbus in May of 2010, and a deposition of MERS Secretary and Treasurer, William Hultman taken in New Jersey in April of 2010.  These depositions contain sworn testimony that at Chase Home Mortgage, 18,000 documents per month are executed and notarized per month by eight people, with admissions that:

1. it is the notary and not the document signer who gives an oath who fills in numbers in the affidavits used in court ordered foreclosures,
2. no oath is administered for the signing of each document,
3. notarized documents are not verified by the person signing and giving oath that they have personal knowledge of the contents of the documents, but rather, signers are relying on verification by others,
4. documents are signed in bulk and notarized in bulk separately,
5. notaries know this at the time they notarize documents in this process.

The MERS deposition of William Hultman demonstrates that after corporate status changes occurred for MERS, new designations of authority were not executed, leaving one or more individuals for the former MERS corporation continuing to delegate authority on behalf of the new corporation without authorization by the new corporation.

According to its website: “MERS was created by the mortgage banking industry to streamline the mortgage process by using electronic commerce to eliminate paper…MERS acts as nominee in the county land records for the lender and servicer. Any loan registered on the MERS® System is inoculated against future assignments because MERS remains the nominal mortgagee no matter how many times servicing is traded. MERS as original mortgagee (MOM) is approved by Fannie Mae, Freddie Mac, Ginnie Mae, FHA and VA, California and Utah Housing Finance Agencies, as well as all of the major Wall Street rating agencies.”
MERS was created by the mortgage lending industry to:

1. eliminate frequent re-recording of liens,
2. avoid paying county recorder fees and other local taxes as mortgage loans are assigned as backing or securitization for derivatives trading by banks and other financial institutions,
3. monitor and facilitate the transfer of original mortgage notes in the trading of mortgage-backed securities,
4. foreclose on mortgage notes for unnamed note holders, even though it is not the real financial party in interest and does not hold the original note for the mortgage.

Currently, over half of all new residential mortgage loans in the U.S. are registered with MERS and recorded in county recording offices in MERS’ name, reducing transparency, leaving consumers unable to determine who actually holds the note on their homes.

Secretary Brunner made the following statement on the situation:
“Mortgage foreclosure documents must be notarized according to the law. Requiring this is not an afterthought or an exercise of form over substance—the law must be followed when taking away someone’s home, regardless of the circumstances.

For too long thousands of homes have been taken from consumers without proof that the foreclosing party actually has that right. Our courts must be cautious and require absolute adherence to the law. As the officer in Ohio who licenses notaries, I cannot stand idly by and watch financial institutions concoct a chain of title they never had by abusing the notary process.

It’s not fair to consumers or to the employees who by virtue of their jobs, are signing these documents. I urge the U.S. Department of Justice to take up this investigation with vigor and purpose to protect consumers and hold financial institutions to the standards of scrutiny and exactitude required by law, even if it means prosecuting some of our largest corporations. These apparent violations of state law point to schemes that merit federal investigation of large institution lending practices and use of the U.S. Postal Service.”

Last week, GMAC Mortgage announced it had suspended evictions and post-foreclosure closings in 23 states over concerns about employees preparing foreclosures with affidavits submitted to judges containing information they did not personally verify. Yesterday it was announced that JPMorgan Chase and Co hired external counsel to review its affidavit process based on the depositions of Beth Cottrell and is delaying approximately 56,000 current foreclosure proceedings.

OLD REPUBLIC TITLE:

The Company will not insure title to any property which has been foreclosed by Ally Financial, Ally Bank or GMAC until further notice.

Short and sweet.

Source: MARKET TICKER