March, 2011 - FORECLOSURE FRAUD

Archive | March, 2011

BLOOMBERG | JPMorgan Borrowed at Least $5.9 Billion From Fed Discount Window

BLOOMBERG | JPMorgan Borrowed at Least $5.9 Billion From Fed Discount Window

JPMorgan Chase & Co. (JPM), the second- largest U.S. bank by assets, borrowed at least $5.9 billion from the Federal Reserve’s discount window over six months during the height of the financial crisis.

JPMorgan had previously disclosed it borrowed $500 million on Aug. 22, 2007, as similar loans were made to Bank of America Corp. (BAC) and Wachovia Corp. “to display the effectiveness of the facility,” according to a joint statement at the time. JPMorgan accessed the program at least four more times through April 2008, according to documents released today under a Freedom of Information Act request by Bloomberg News and Fox News.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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BLOOMBERG | Goldman Sachs Borrowed From Fed Window Five Times [ZIP DOCS]

BLOOMBERG | Goldman Sachs Borrowed From Fed Window Five Times [ZIP DOCS]

[ZIP FILES BELOW]

Goldman Sachs Group Inc. (GS) tapped the Federal Reserve’s discount window at least five times since September 2008, according to central bank data that contradict an executive’s testimony last year.

Goldman Sachs Bank USA, a unit of the company, took overnight loans from the Federal Reserve on Sept. 23, Oct. 1, and Oct. 23 in 2008 as well as on Sept. 9, 2009, and Jan. 11, 2010, according to the data released today. The largest loan was $50 million on Sept. 23 and the smallest was $1 million on the most recent two occasions.

Courtesy of AmpedStatus

http://cdn.gotraffic.net/downloads/30110331_fed_release_documents.zip

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SHAPIRO & BURSON Under Investigation For Fraudulent Signatures, FREDDIE MAC Drops Them

SHAPIRO & BURSON Under Investigation For Fraudulent Signatures, FREDDIE MAC Drops Them

From the Baltimore Sun [link]

Freddie Mac has instructed its mortgage servicers to stop referring foreclosure cases to Shapiro & Burson, the Virginia law firm accused of improper handling of more than 1,000 deeds for Maryland homes in foreclosure, the mortgage giant reported this week.

Prosecutors in Prince George’s County began investigating the firm in March after a paralegal formerly employed there filed a complaint alleging that deeds and foreclosure paperwork contained fraudulent signatures.

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JAMIE DIMON: Let The Big Dumb Banks Fail

JAMIE DIMON: Let The Big Dumb Banks Fail

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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JPMorgan’s Dimon: No mortgage writedowns

JPMorgan’s Dimon: No mortgage writedowns

From CNNMONEY [link]

“Principal writedown for people who could pay their mortgages? Yeah, that’s off the table,” JPMorgan Chase (JPM, Fortune 500) CEO Jamie Dimon said when asked about the idea after an appearance before a U.S. Chamber of Commerce forum in Washington.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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COMING- 60 MINUTES SUNDAY, APRIL 3, 2011  Foreclosures –

COMING- 60 MINUTES SUNDAY, APRIL 3, 2011 Foreclosures –

Coming this Sunday, April 3, 2011 DOCx, LPS, Lynn Szymoniak (Fraud Digest), Chris P.  who signed over 4,000 documents a day!

As more and more Americans face mortgage foreclosure, banks’ crucial ownership documents for the properties are often unclear and are sometimes even fraudulent – a condition that’s causing lawsuits and hampering an already weak housing market. Scott Pelley reports. Robert Anderson and Daniel Ruetenik are the producers.

[Source: 60 MINUTES]

[CLICK HERE FOR VIDEO LINK]



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From Matt Weidner to Lisa Epstein – Nationwide Title Clearing (NTC) May Find Themselves Like The Law Offices Of David J. Stern…A Company To Stay Away From!

From Matt Weidner to Lisa Epstein – Nationwide Title Clearing (NTC) May Find Themselves Like The Law Offices Of David J. Stern…A Company To Stay Away From!

via: Discovery Tactics Anthony Martinez

MY MESSAGE TO COMPANIES LIKE NATIONWIDE TITLE CLEARING & OTHERS

When people, government officials or corporations come into the people’s cross-hairs and a decision is made that we will no longer allow, YOU ARE DONE!  I will let history remind you that the proof of that statement is in the pudding.  To all the powers that be:

If you are emotional and acting on emotion DON’T!  Whoever is advising you to suppress freedom of speech as a means to strengthen your position has you ill advised…FIRE THEM!  Do not confuse what you do to turn a profit with being morally correct and sound.  This foreclosure crisis has been a direct attack against the American people on American soil for monetary gain.  American’s (as you can see) are starting to stand up and say “We will no longer allow!”  If you’ve learned anything from what has transpired with the Law Office of David J. Stern, it should be that when YOU get enough negative publicity in the American Press, no one will want to do business or associate themselves with YOU.  For NTC, your efforts are misplaced.  Attacking those who are advocates of the PEOPLE like Matt Weidner and Lisa Epstein makes you look bad.  The robo-signer negative publicity has had its impact but you were better off cleaning up that mess by re-assigning people and assuring the AMERICAN PEOPLE that you will take steps and measures to ensure NO robo-signing exist.  It would be better to agree with the people and show a positive support for the people rather than giving them the finger and hiring attorney’s to attack their CONSTITUTIONAL RIGHT to voice their opinion.  Truth be told, the American people don’t care about NTC or Stern or any other company.  They care about their family and friends and do business with those who will further their needs.  Your moves will only cause greater NEGATIVE PUBLICITY toward you which in turn, will cause YOUR CLIENTS to worry about their reputations and business if they associate and do business with YOU!  You don’t believe me?  Watch and learn how this Litigation Consultant gave you free insight that either saved or destroyed your business.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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BLOOMBERG | AIG’s $15.7 Billion Bid for Maiden Lane Mortgage Bonds Rejected by NY Fed

BLOOMBERG | AIG’s $15.7 Billion Bid for Maiden Lane Mortgage Bonds Rejected by NY Fed

The New York Fed will instead sell the assets individually and in blocks, the regulator said yesterday in a statement posted on its website. BlackRock Inc. (BLK), the New York Fed’s investment manager, will issue the first bid list next week, according to the statement.

“We had anticipated we would have the opportunity to buy these assets at a fair price by January 2011 and earn a return on them for the benefit of the U.S. taxpayer,” Mark Herr, a spokesman for New York-based AIG, said in an e-mailed statement. “Now, we must make up for lost time and lost earnings.”


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COMPLAINT | Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Bank of America Corporation

COMPLAINT | Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Bank of America Corporation

ANCHORAGE POLICE & FIRE RETIREMENT
SYSTEM, Individually and on Behalf of all Others
Similarly Situated
,

v.

BANK OF AMERICA CORPORATION, BRIAN
T. MOYNIHAN, CHARLES H. NOSKI,
KENNETH D. LEWIS, and JOSEPH L. PRICE

COMPLAINT FOR VIOLATION OF THE FEDERAL SECURITIES LAWS

[ipaper docId=51999215 access_key=key-f82cuv33cpzwlgt5ltr height=600 width=600 /]

[Source: http://www.glancylaw.com/]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Fraudclosure Settlement Has a Long Way To Go, Time IS of The Essence For You

Fraudclosure Settlement Has a Long Way To Go, Time IS of The Essence For You

Read the excerpts below carefully… You’ll be screwed if you plan to wait on any reasonable settlement, just like “HAMP” left you waiting for your mod. Don’t expect miracles!

PERIOD. DONE.

From The New York Times

“We have a long way to go,” Iowa Attorney General Tom Miller, who is leading the effort from the states’ side, said after the afternoon session broke up.

[…]

Lengthy negotiations work to the banks’ advantage, critics say.

“The banks’ strategy is to run the clock,” a Georgetown University law professor, Adam Levitin, said. “The chances of a settlement that meaningfully reforms mortgage servicing and makes the banks pay an appropriate price for illegal conduct are rapidly slipping away.”

This was taken From Zack Carter’s Article on Huffington Post:

“I am incensed that the FBI has not filed one criminal case,” Rep. Marcy Kaptur (D-Ohio) said, referring to the lack of prosecutions against major banking executives. “And I’m very worried that the game that’s being played here is to run out the statute of limitations.”

#

Oh and AG’s make sure the banks get barred from Deficiency Judgments in your settlement!

#

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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GA SUPREME COURT Rejects Bank’s Definition of “Duly Filed, Recorded, and Indexed” U.S. Bank v. GORDON

GA SUPREME COURT Rejects Bank’s Definition of “Duly Filed, Recorded, and Indexed” U.S. Bank v. GORDON

U.S. BANK NATIONAL ASSOCIATION,
v.
GORDON.

S10Q1564.
Supreme Court of Georgia.

Decided: March 25, 2011.

NAHMIAS, Justice.

The United States District Court for the North District of Georgia has certified a question to this Court regarding the 1995 Amendment to OCGA § 441-4-33. See Ga. L. 1995, p. 1076, § 1. The question is whether the 1995 Amendment

means that, in the absence of fraud, a security deed that is actually filed and recorded, and accurately indexed, on the appropriate county land records provides constructive notice to subsequent bona fide purchasers, where the security deed contains the grantor’s signature but lacks both an official and unofficial attestation (i.e., lacks attestation by a notary public and also an unofficial witness).

For the reasons that follow, we answer the certified question in the negative.

1. In October 2005, Bertha Hagler refinanced her residence through the predecessor-in-interest to U.S. Bank National Association (U.S. Bank) and granted the predecessor a first and a second security deed to her residence. The security deeds were recorded with the Clerk of the Fulton County Superior Court in November 2005, but the first security deed was not attested or acknowledged by an official or unofficial witness. According to the district court’s certification order:

Gordon, the Chapter 7 Trustee in Hagler’s bankruptcy case, sought to avoid or set aside the valid, but unattested, first security deed to the residence through the “strong-arm” power of Section 544 (a) (3) of the Bankruptcy Code. See 11 U.S.C. § 544 (a) (3). Gordon argued that under the proper interpretation of § 44-14-33 of the Georgia Code, a security deed that is not attested by an official and unofficial witness cannot provide constructive notice to a subsequent purchaser even if it is recorded. U.S. Bank argued, in opposition, that a 1995 amendment to § 44-14-33 changed the law to enable an unattested security deed to provide constructive notice. Gordon argued in response that the 1995 amendment served only to recognize constructive notice from a security deed with a “latently” defective attestation, meaning an irregular attestation that appears regular on its face; a deed with a “patently” defective attestation, meaning an attestation that is obviously defective on its face, would not provide constructive notice.

The bankruptcy court ruled in Gordon’s favor, concluding that, under the 1995 Amendment, a security deed with a facially defective attestation would not provide constructive notice, while a security deed with a facially proper but latently defective attestation would provide constructive notice. See Gordon v. U.S. Bank Natl. Assn. (In re Hagler), 429 BR 42, 47-53 (Bankr. N.D. Ga. 2009). Concluding that the issue involved an unclear question of Georgia law and that no Georgia court had addressed the issue after the 1995 Amendment, the district court certified the question to this Court. We conclude that the bankruptcy court properly resolved the issue.

2. OCGA § 44-14-61 provides that “[i]n order to admit deeds to secure debt . . . to record, they shall be attested or proved in the manner prescribed by law for mortgages.” OCGA § 44-14-33 provides the law for attesting mortgages:

In order to admit a mortgage to record, it must be attested by or acknowledged before an officer as prescribed for the attestation or acknowledgment of deeds of bargain and sale; and, in the case of real property, a mortgage must also be attested or acknowledged by one additional witness. In the absence of fraud, if a mortgage is duly filed, recorded, and indexed on the appropriate county land records, such recordation shall be deemed constructive notice to subsequent bona fide purchasers.

The second sentence of this Code section was added by the 1995 Amendment.

3. We first address Gordon’s contention that the 1995 Amendment does not apply at all to security deeds. He contends that only the first sentence of § 44-14-33, which expressly deals with attestation, is applicable to security deeds through § 44-14-61 and that, because the 1995 Amendment addresses constructive notice, it does not apply to security deeds. We disagree. The General Assembly chose to enact the 1995 Amendment not as a freestanding Code provision but as an addition to a Code provision clearly referenced by § 44-14-61. Moreover, “[t]he objects of a mortgage and security deed . . . under the provisions of the Code are identical — security for a debt. While recognizing the technical difference between a mortgage and security deed hereinbefore pointed out, this court has treated deeds to secure debts . . . as equitable mortgages.” Merchants & Mechanics’ Bank v. Beard, 162 Ga. 446, 449 (134 SE 107)Fair v. State, 288 Ga. 244, 252 (702 SE2d 420) (2010), so the placement of the amendment makes complete sense. Indeed, no reason has been suggested why the General Assembly would want the same type of recording to provide constructive notice for mortgages but not for security deeds. Accordingly, we conclude that the 1995 Amendment is applicable to security deeds. (1926). The General Assembly is presumed to have been aware of the existing state of the law when it enacted the 1995 Amendment, see

4. Turning back to the certified question, we note that the “recordation” that is deemed to provide constructive notice to subsequent purchasers clearly refers back to “duly filed, recorded, and indexed” deeds. U.S. Bank argues that a “dulyin fact filed, recorded, and indexed, even if unattested by an officer or a witness. We disagree. filed, recorded, and indexed” deed is simply one that is

Particular words of statutes are not interpreted in isolation; instead, courts must construe a statute to give “`”sensible and intelligent effect” to all of its provisions,'” Footstar, Inc. v. Liberty Mut. Ins. Co., 281 Ga. 448, 450 (637 SE2d 692)State v. Bowen, 274 Ga. 1, 3 (547 SE2d 286) (2001). In particular, “statutes `in pari materia,’ i.e., statutes relating to the same subject matter, must be construed together.” Willis v. City of Atlanta, 285 Ga. 775, 776 (684 SE2d 271) (2009). (2006) (citation omitted), and “must consider the statute in relation to other statutes of which it is part.”

Construing the 1995 Amendment in harmony with other recording statutes and longstanding case law, we must reject U.S. Bank’s definition of “duly filed, recorded, and indexed.” Its definition ignores the first sentence of § 44-14-33, which provides that to admit a security deed to record, the deed must be attested by or acknowledged before an officer, such as a notary public, and, in the case of real property, by a second witness. See OCGA § 44-2-15 (listing the “officers” who are authorized to attest a mortgage or deed). Other statutes governing deeds and mortgages similarly preclude recording and constructive notice if certain requirements are not satisfied. See OCGA § 44-2-14 (“Before any deed to realty or personalty or any mortgage, bond for title, or other recordable instrument executed in this state may be recorded, it must be attested or acknowledged as provided by law.”); OCGA § 44-14-61 (“In order to admit deeds to secure debt or bills of sale to record, they shall be attested or proved in the manner prescribed by law for mortgages”). Indeed, U.S. Banks’ construction of the 1995 Amendment contradicts OCGA § 44-14-39, which provides that “[a] mortgage which is recorded . . . without due attestation . . . shall not be held to be notice to subsequent bona fide purchasers.”

Thus, the first sentence of § 44-14-33 and the statutory recording scheme indicate that the word “duly” in the second sentence of § 44-14-33 should be understood to mean that a security deed is “duly filed, recorded, and indexed” only if the clerk responsible for recording determines, from the face of the document, that it is in the proper form for recording, meaning that it is attested or acknowledged by a proper officer and (in the case of real property) an additional witness. This construction of the 1995 Amendment is also consistent with this Court’s longstanding case law, which holds that a security deed which appears on its face to be properly attested should be admitted to record, see Thomas v. Hudson, 190 Ga. 622, 626 (10 SE2d 396) (1940); Glover v. Cox, 137 Ga. 684, 691-694 (73 SE 1068) (1912), but that a deed that shows on its face that it was “not properly attested or acknowledged, as required by statute, is ineligible for recording.” Higdon v. Gates, 238 Ga. 105, 107 (231 SE2d 345) (1976).

We note that at the time the 1995 Amendment was considered and enacted, the appellate courts of this State had “never squarely considered” whether a security deed with a facially valid attestation could provide constructive notice where the attestation contained a latent defect, like the officer or witness not observing the grantor signing the deed. Leeds Bldg. Prods. v. Sears Mortg. Corp., 267 Ga. 300, 301 (477 SE2d 565) (1996). The timing of the amendment suggests that the General Assembly was attempting to fill this gap in our law as the Leeds litigation worked its way through the trial court and the Court of Appeals before our decision in 1996. See Gordon, 429 BR at 50. We ultimately decided in Leeds that, “in the absence of fraud, a deed which, on its face, complies with all statutory requirements is entitled to be recorded, and once accepted and filed with the clerk of court for record, provides constructive notice to the world of its existence.” 267 Ga. at 302. We noted that Higdon remained good law, because in that case the deed was facially invalid, did “not entitle [the deed] to record,” and “did not constitute constructive notice to subsequent purchasers.” Leeds, 267 Ga. at 302. Because we reached the same result as under the 1995 Amendment, we did not have to consider whether the amendment should be applied retroactively to that case. See id. at 300 n.1.

Our interpretation of the 1995 Amendment also is supported by commentators that have considered the issue. See Frank S. Alexander, Georgia Real Estate Finance and Foreclosure Law, § 8-10, p. 138 (4th ed. 2004) (stating that “[a] security deed that is defective as to attestation, but without facial defects, provides constructive notice to subsequent bona fide purchasers”); Daniel F. Hinkel, 2 Pindar’s Georgia Real Estate Law and Procedure, § 20-18 (6th ed. 2011) (without mentioning deeds with facial defects, explaining that the 1995 Amendment to § 44-14-33 and Leeds “provide that in the absence of fraud a deed or mortgage, which on its face does not reveal any defect in the acknowledgment of the instrument and complies with all statutory requirements, is entitled to be recorded, and once accepted and filed with the clerk of the superior court for record, provides constructive notice to subsequent bona fide purchasers”); T. Daniel Brannan & William J. Sheppard, Real Estate, 49 Mercer L. Rev. 257, 263 (Fall 1997) (without mentioning deeds with facial defects, stating that the 1995 Amendment to § 44-14-33 resolves “the issue that was before the court in [Leeds]”). As noted by the bankruptcy court, if Hinkel and the law review authors thought that the 1995 Amendment altered longstanding law with regard to deeds containing facial defects as to attestation, they surely would have said so. See Gordon, 429 BR at 52-53.

Finally, it should be recognized that U.S. Bank’s interpretation of the 1995 Amendment to § 44-14-33 “would relieve lenders of any obligation to present properly attested security deeds” and “would tell clerks that the directive to admit only attested deeds is merely a suggestion, not a duty,” and this would risk an increase in fraud because deeds no longer would require an attestation by a public officer who is sworn to verify certain information on the deeds before they are recorded and deemed to put all subsequent purchasers on notice. Gordon, 429 BR at 51-52. Moreover, while “it costs nothing and requires no special expertise or effort for a closing attorney, or a lender, or a title insurance company to examine the signature page of a deed for missing signatures before it is filed,” U.S. Bank’s construction would “shift to the subsequent bona fide purchaser and everyone else the burden of determining [possibly decades after the fact] the genuineness of the grantor’s signature and therefore the cost of investigating and perhaps litigating whether or not an unattested deed was in fact signed by the grantor.” Id. at 52.

For these reasons, we answer the certified question in the negative.

Certified question answered. All the Justices concur.

[ipaper docId=51955339 access_key=key-79uy6ey0yzi4364au79 height=600 width=600 /]
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PBPOST | Surrogate signers” signed countless foreclosure documents – with someone else’ name

PBPOST | Surrogate signers” signed countless foreclosure documents – with someone else’ name

From the Palm Beach Post Christine Stapleton [link]

At Lender Processing Services workers who signed tens of thousands of sworn foreclosure affidavits with someone else’ name were called “surrogate signers”, according to Cheryl Denise Thomas, a former LPS worker who admitted to notarizing as many as 1,000 sworn affidavits daily – often without witnessing the signature.

Thomas said despite “raised eyebrows”  her supervisors never used the word “forge” and repeatedly told workers the practice of signing someone else’ name on a sworn affidavit was legal. Thomas detailed the company’s foreclosure document processing practices during a deposition in an Orange county foreclosure case on March 23.

[ipaper docId=51885547 access_key=key-2omhtmjy5z5l5nazqt36 height=600 width=600 /]

[image credit: I-Robot]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Florida Fair Foreclosure Act, HB 1191 would waive rights of some delinquent home owners

Florida Fair Foreclosure Act, HB 1191 would waive rights of some delinquent home owners

From DBR’s Paola Iuspa-Abbott [link]

The law would create an “alternative foreclosure procedure” that lenders could impose on owners of non-homesteaded properties with values far below their mortgages or properties the lender deems to be abandoned.

Under the proposed procedure, delinquent owners would waive their rights to defend the foreclosure, allowing the lender to more quickly obtain a summary judgement to auction the property.

The owners would have 30 days from the date of the foreclosure filing to opt-out of the streamlined procedure. If they do object, the owner would have the right to fight the lender.

[ipaper docId=51932037 access_key=key-1a691ct7878jlfi40rtw height=600 width=600 /]

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Testimony of Joshua Rosner before the Subcommittee on TARP, Financial Servicer and Bailouts of Public and Private Programs

Testimony of Joshua Rosner before the Subcommittee on TARP, Financial Servicer and Bailouts of Public and Private Programs

Testimony of Joshua Rosner before the Subcommittee on TARP, Financial Servicer
and Bailouts of Public and Private Programs.

“Has Dodd-Frank Ended Too Big to Fail?” –
2154 Rayburn House Office Building

March 30, 2011

Almost three years have passed since the United States financial system shook, began to seize up, and threatened to bring the global economy crashing down. The seismic event followed a long period of neglect in bank supervision led by lobbyist-influenced legislators, “a chicken in every pot” administrations, and neutered bank examiners.

[…]

[ipaper docId=51904474 access_key=key-17u5zrx0iyt0tpfk4bm8 height=600 width=600 /]

[Image: Bloomberg]

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Deposition Transcript of DOCx, LPS CHERYL DENISE THOMAS

Deposition Transcript of DOCx, LPS CHERYL DENISE THOMAS

via: NakedCapitalism

Excerpts:

Beginning Pg. 33

that’s when they — well, upon us leaving
anyway, they took up our notary stamps and
everything and destroyed them. But I was
relieved of my duties once moved to
Gwinnett County.

Q. Who — who — I’m sorry, did I miss
that? Who destroyed those documents?

A. I can’t say exactly who destroyed
them. All I know is that Jeffrey
the supervisor in the signing room at that
times, he picked up everyone’s stamp, the
notaries’ stamps.

Q. He took your stamps?

A. He took our stamps. And — and
they were destroying them.

Q. How were they destroying them?

A. I don’t know how. He just said
they were picking up all the stamps, all
of the notary stamps. And they were going
to destroy them, because the company was
closing. And they were only suppose to be
used for that company.

Continue below…

[ipaper docId=51885547 access_key=key-2omhtmjy5z5l5nazqt36 height=600 width=600 /]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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ATTORNEY GENERAL LORI SWANSON CHARGES ONE OF NATION’S LARGEST “DEBT BUYERS” WITH DEFRAUDING MINNESOTA COURTS AND CITIZENS BY FILING “ROBO-SIGNED” AFFIDAVITS

ATTORNEY GENERAL LORI SWANSON CHARGES ONE OF NATION’S LARGEST “DEBT BUYERS” WITH DEFRAUDING MINNESOTA COURTS AND CITIZENS BY FILING “ROBO-SIGNED” AFFIDAVITS

Minnesota Attorney General Lori Swanson today in a legal filing accused one of the nation’s largest “debt buyers” of defrauding Minnesota courts and citizens by filing false and deceptive “robo-signed” affidavits—generated at its offices in St. Cloud, Minnesota—to collect on old consumer debts that it purchased from credit card companies and others for about three cents on the dollar.

The debt buyer—Midland Funding, LLC and its administrative arm, Midland Credit Management, Inc. (collectively Midland)—has purchased $54.7 billion in old consumer debt from credit card companies and other companies. In 2009, it filed 245,000 lawsuits against individual citizens nationwide, and it has filed over 15,000 lawsuits against citizens in Minnesota courts since 2008. Midland pays for its debt acquisitions with hundreds of millions in financing from some of the nation’s largest banks, including several that sell old debt to it.

“The company put its thumb on the scale of justice to unfairly tilt the collection process in its favor,” said Attorney General Swanson.

The Attorney General said that debt buyers cast a wide net to find people who may owe old bills and often pursue the wrong person altogether or pursue people who paid the bills long ago. In some cases, debt buyers pursue people solely because they have the same or similar name or address as the real debtor. The Attorney General said that Midland has created false and unreliable mass-produced, “robo-signed” affidavits as supposed “proof” of consumer debts in lawsuits against individual citizens in order to obtain judgments against or extract payments from mostly unrepresented citizens, some of whom had no knowledge of any alleged debt.

Source: http://www.ag.state.mn.us/Consumer/PressRelease/110328DebtBuyers.asp

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NEW JERSEY Superior Court Dismissal “Hole in the chain of title, Big enough to drive a truck through” U.S. BANK v. SPENCER

NEW JERSEY Superior Court Dismissal “Hole in the chain of title, Big enough to drive a truck through” U.S. BANK v. SPENCER

U.S. BANK NATIONAL
ASSOCIATION, AS TRUSTEE FOR
J.P. MORGAN ACQUISITION CORP.
2006-FRE2, ASSET BACKED PASSTHROUGH
CERTIFICATES, SERIES
2006-FRE2
,

V.

ARTHUR SPENCER, MRS. ARTHUR
SPENCER, HIS WIFE; JOHN M.
ALFIS
,

Argued: March 18, 2011
Decided: March 22, 2011
Amended: March 28, 2011
Honorable Peter E. Doyne, A.J.S.C.

John Habermann, Esq. appearing on behalf of the plaintiff, U.S. Bank National
Association, as trustee for J.P. Morgan Acquisition Corp. 2006-FRE2, asset backed passthrough
certificates, series 2006-FRE2 (Phelan Hallinan & Schmieg, PC).

Gary E. Stern, Esq. appearing on behalf of the defendant, Arthur Spencer (Gary E. Stern, Esq.).

EXCERPT:

Analysis

A. Standing

Defendant’s counsel argued plaintiff did not have standing to sue as there was a break in the chain of title by the U.S. Bank assignment. Counsel specified the Fremont Investment assignment was by Fremont to Fremont Investment; the U.S. Bank assignment was by Fremont to U.S. Bank. The break was said to occur when Fremont, and not Fremont Investment, assigned the note and mortgage to U.S. Bank. Defendant’s counsel contended no explanation or turnover of documentation justified plaintiff’s right to prosecute the current foreclosure proceeding.19 However, the U.S. Bank assignment was from MERS as nominee for FGC d/b/a Fremont and its successors and/or assigns. As Fremont Investment was an assignee of Fremont pursuant to the Fremont Investment assignment, there appears to be no break in title when the mortgage and note were transferred pursuant to the U.S. Bank assignment. Nevertheless, plaintiff has provided no documentation or support for its position it is the trustee for J.P. Morgan, and therefore has not established its right to sue on behalf of JP Morgan.

Of greater import was defendant’s counsel’s argument plaintiff did not have standing as there was no proof the named plaintiff ever took physical possession of the note. Plaintiff’s counsel countered the original note was forwarded to him upon request for the location of the note but was inadvertently returned by counsel to plaintiff. It is though surprising the reply did not set forth, competently, plaintiff possessed the note on filing of the complaint.20

Without establishing physical possession of the note, plaintiff may not be an entity which may foreclose pursuant to the first and second categories in section 301, namely, as a (1) holder of the instrument or (2) a nonholder in possession of the instrument who has the rights of the holder.21 N.J.S.A. 12A:3-301. As plaintiff has not alleged, let alone established, the loss of possession of the instrument or the instrument was paid or accepted by mistake and the payor or acceptor recovered payment or revoked acceptance, plaintiff may not be a party who may foreclose pursuant to the third category in section 301, namely, a person not in possession of the instrument who is entitled to enforce the instrument. N.J.S.A. 12A:3-301; 12A:3-309(a); 12A:3-418(d). Therefore, plaintiff failed to establish standing as it is not a person entitled to enforce the note.N.J.S.A. 12A:3-301.

Plaintiff has failed to establish standing as its relationship as trustee to JP Morgan was not set forth; more importantly, though, plaintiff has failed to establish it had or has physical possession of the note and/or failed to demonstrate the note was indorsed. As such, summary judgment for plaintiff is denied and the cross-motion for summary judgment is granted. Although both motions may have been decided on the basis of lack of standing alone, for purposes of completeness, the court also shall analyze whether the evidence presented in support of plaintiff’s motion was competent and thereafter whether plaintiff has set forth a prima facie case in foreclosure.

B. Admissibility of evidence

Defendant’s counsel correctly asserted no competent witness has brought forth admissible evidence. Yoder does not claim to be a person with personal knowledge. R. 1:6-6. Furthermore, the exhibits attached to the Yoder Cert. do not fall within the business records exception as Yoder does not claim be a person with actual knowledge or to have produced the exhibits by obtaining information from such a person.22 N.J.R.E. 803(c)(6). Therefore, the exhibits submitted on plaintiff’s behalf were inadmissible hearsay and the court may not consider them. This is particularly perplexing as this issue was squarely put forth in defendant’s opposition and cross-motion, was not addressed in plaintiff’s reply, and follows shortly after the publication of Ford, supra.

As plaintiff has failed to justify the relief sought by competent, admissible evidence, plaintiff’s motion for summary judgment is denied. Lastly, the court shall analyze whether plaintiff has set forth a prima facie case in foreclosure.

C. Material issues in foreclosure proceeding

While plaintiff’s counsel conceded the circumstances surrounding the alleged default were “unfortunate,” he asserted it “did not create the fire to the premises nor . . . change the zoning of the subject property.” Plaintiff’s counsel set forth defendant failed to make payments pursuant to the executed note, and the mortgage was executed and recorded. However, as issues of fact remain concerning the fact-sensitive allegations of (1) unclean hands (2) breach of the duty of good faith and fair dealing,23 and, (3) as restoration was not “feasible,” why the proceeds were not applied to the sums secured, plaintiff’s motion for summary judgment is further denied.24 Had defendant’s crossmotion for summary judgment been brought solely upon the allegations of unclean hands and breach of the duty of good-faith and fair dealing, the court would have denied the cross-motion and the matter would have proceeded in the normal course to further explore the facts underlying the defenses; however, summary judgment for defendant is appropriate on the basis of lack of standing.

Conclusion

Some are more empathetic than others to mortgagors who are no longer paying their contractual committed amount in a manner consistent with their obligations. Motions for summary judgment or oppositions to motions for summary judgment based on technical deficiencies or defenses are coming before the chancery courts at an ever increasing rate. This case, though, is distinct from the “run of the mill” motion where defendant’s attorney raises “technical objections” in an effort to delay the seemingly inevitable in an attempt to garner for clients as much time in the home as the law will
permit without paying outstanding obligations.

Here, not only has plaintiff failed to establish standing to bring the instant foreclosure action or present admissible evidence by a competent witness, defendant’s competent assertions have also given rise to fact-sensitive defenses.

Defendant’s crossmotion is granted as plaintiff has failed to establish standing and has failed to comply with the court’s January 25, 2011 order.25 Plaintiff’s motion for summary judgment is denied on three grounds: (1) lack of standing, (2) failure to present a prima facie case by presenting admissible evidence by a competent witness, (3) and defenses raised would be in need of further exploration.

The action is dismissed without prejudice.26 The court’s order shall be sent under separate cover.

19At oral argument defendant’s counsel argued there is a hole in the chain of title “big enough to drive a truck through.” Counsel alleged there was no documentation or support indicating the note was assigned by Fremont Investment. This was the same argument counsel made on the papers.

Continue below…

[ipaper docId=51863302 access_key=key-13o8p1s6xaf9gjcd95gw height=600 width=600 /]

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Posted in STOP FORECLOSURE FRAUD2 Comments

GUEST COMMENT | THE ANSWER IS: There is not enough money in the banking system to fund our nation’s housing stock.

GUEST COMMENT | THE ANSWER IS: There is not enough money in the banking system to fund our nation’s housing stock.

Via: Virginia

This is exactly what I have been saying. If 500,000 mortgages = $80 Billion (source: Taylor Bean complaint)… what do 67 million MERS mortgages equal? Is anybody doing the math in Washington, DC?

http://us1.irabankratings.com/pub/IRAMain.asp

In testimony before the House Financial Services Committee in February 2010, Michael A.J. Farrell, Chairman, CEO, Annaly Capital Management, provided an excellent overview of the current market for RMBS. People involved in the discussions about housing market reform should read Farrell’s testimony carefully. He notes that of $7.5 trillion in RMBS funded by private investors, $5.5 trillion is held by rate sensitive investors in Agency MBS, with about $2 trillion in credit sensitive private label MBS. He also stated that:

“The balance, or about $2.5 trillion, is held in raw loan form, primarily on bank balance sheets. Since our country’s banks have about $12 trillion in total assets, there is not enough money in the banking system to fund our nation’s housing stock, at least not at current levels. It is thus axiomatic that without a healthy securitization market our housing finance system would have to undergo a radical transformation.”

And this is why the states should takeover the loans from 2003-2008. The banks HAVE to foreclose. They cannot hold all the mortgages. They wrote more than they can hold.

By using MERS and other special purpose vehicles to hold mortgages rather than keep them on the banks’ books, the banks lived in a fantasyland. They insured their risk which was a double edge sword; however, they took no responsibility for the volume of loans they wrote.

It’s akin to taking the pill, having numerous partners and thinking you can’t get VD. Only the banks weren’t naive – they were greedy and irresponsible.

It’s only a matter of time before the fact that these banks collected insurance and TARP on these loans and then continued to try and collect from the borrowers starts to come to light – and that would appear to be insurance fraud… probably the main reason for the foreclosures in the first place.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUD1 Comment

WSJ | Banks Offer Own Mortgage Servicing Plan

WSJ | Banks Offer Own Mortgage Servicing Plan

Question: Why don’t the AG’s just FORCE-PLACE a settlement and be done with it?

via: The Wall Street Journal

The document, reviewed by The Wall Street Journal, is a response to a 27-page term sheet banks received earlier this month from state attorneys general that would require the servicers to consider reducing principal for troubled borrowers. The 15-page bank proposal, dubbed the Draft Alternative Uniform Servicing Standards, includes time lines for processing modifications, a third-party review of foreclosures and a single point of contact for financially troubled borrowers. It also outlines a so-called “borrower portal” that would allow customers to check the status of their loan modifications online.

But the document doesn’t include any discussion of principal reductions. Nor does it include a potential amount banks could pay for borrower relief or penalties. Government officials have discussed a settlement sum of more than $20 billion.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUD2 Comments

OMG…lol…OMG “They’re Neighbors”

OMG…lol…OMG “They’re Neighbors”

Who would have thought?

Marshall C. Watson currently has his Fort Lauderdale residence on the market for $9.75 million, a few doors and long walk down from David J. Stern.

According to BlockShopper, Watson purchased this home back on April of 09′ from Chevy Chase Bank for $4.525 million.

Thats all.

source: BlockShopper

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUD2 Comments

Congresswoman Herrera Beutler Seeks Answers from FDIC on Clark County Foreclosures

Congresswoman Herrera Beutler Seeks Answers from FDIC on Clark County Foreclosures

Congresswoman Jaime Herrera Beutler today sent a letter to the Federal Deposit Insurance Corporation (FDIC) seeking answers regarding a troubling pattern of Clark County foreclosures resulting from the failure of the Bank of Clark County.

What has been particularly troublesome to Congresswoman Herrera Beutler is what she learned from several Bank of Clark County borrowers: they made all of their scheduled payments on time, in full.  Why Rialto Capital has chosen to foreclose on borrowers who have honored their loan agreements remains unclear.
[…]
“I’m deeply concerned by what I’ve learned so far about FDIC’s deal with Rialto Capital,” said Herrera Beutler.  “If borrowers who have lived up to the terms of their original loans are facing foreclosure, I want to know why.  It certainly seems like the FDIC has a responsibility and moral obligation to ensure entities like Rialto act in a decent and ethical manner.
.
“The FDIC has not been completely forthright about its decision-making process, even after multiple requests for information by my office.  While Southwest Washington families and businesses suffer the consequences of its decisions, the FDIC may have made it possible for real estate investor Rialto to end up with large tracts of Clark County land at a bargain price by breaking contracts.  That doesn’t seem right.
“I am going to remain vigilant with FDIC and with Rialto until we get answers.”
The text of Congresswoman Herrera Beutler’s letter to the FDIC is below, and attached:

Chairman Sheila C. Bair

Federal Deposit Insurance Corporation
3501 N. Fairfax Dr.
Arlington, VA 22226

Chairman Bair,

In recent weeks I have been contacted by a number of my constituents with concerns about the closing of the Bank of Clark County in Vancouver, Washington. More specifically, the concern is with the FDIC’s decision to sell many of the bank’s outstanding loans to Rialto Capital Management LLC and the management of those loans by Rialto and the FDIC.

Since the closing of the Bank of Clark County a large number of construction properties have been forced into foreclosure. Many of these foreclosures are due to Rialto Capital’s refusal to work with builders in honoring the existing loan agreement, even when the builders are current in their loan payments. Instead, Rialto moves to simply collect on collateral.

In order to understand the FDIC’s role in these procedures I respectfully request that you answer the following questions:

To my knowledge when the FDIC sells a loan package it retains a certain percentage of the package in order to ensure a return on investment. What oversight does the FDIC perform on Rialto Capitol and its management of the loans?

Numerous builders with whom my office has spoken had not missed a single payment on their loans when Rialto Capital took over. What consideration, if any, is given to the lendee’s payment record when deciding to terminate loans?

As a holder of a percentage of the loan package, does the FDIC require Rialto to honor the conditions of previous contracts made and carried out in good faith? What steps has the FDIC taken to ensure that any ensuing foreclosures are not directly attributable to changes in contract conditions made without the consent of the customer by Rialto?

How many construction loans did Rialto Capitol take over from the Bank of Clark County? Of those contracts how many have Rialto and the FDIC continued to honor?

Rialto Capitol calls itself a real estate investment management company. It is my understanding that typically other banks buy these loans. Why is the FDIC selling bank loans to non-banks?

I realize the FDIC closed the Bank of Clark County due to poor performance and bad loan approvals played a role in that. However, many of the people Rialto and the FDIC have decided to foreclose on made sound loan decisions, made their payments on time, and through no fault of their own still lost their loans. In some cases those loans were worth millions of dollars, and in many cases the loss of loans cost people their livelihood.

I do not know what Rialto ultimately intends to do with the large tracts of land it would hold as a result of these foreclosures, but it is clear the company purchased these loans with no intention of working with the citizens of Southwest Washington. Surely the FDIC did not close the Bank of Clark County in order to give real estate investors the opportunity to obtain land for pennies on the dollar by breaking contracts signed and honored by local builders.

The FDIC has a responsibility and moral obligation to ensure the companies that obtain loans as the result of a bank closure act in an ethical and decent manner toward their customers. I strongly urge you to take a hand in this matter and review with great diligence the actions of Rialto Capital.

I appreciate your attention to this matter and look forward to a response. Please contact Chad Ramey in my Washington, D.C. office at (202) 225-3536 for further detail or clarifications.

Sincerely,

Jaime Herrera Beutler

Member of Congress

Source: http://herrerabeutler.house.gov

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUD2 Comments

Keller Rohrback L.L.P. Announces Investigation of Bank of America Corp. and JPMorgan Chase & Co. Regarding Force-Placed Insurance

Keller Rohrback L.L.P. Announces Investigation of Bank of America Corp. and JPMorgan Chase & Co. Regarding Force-Placed Insurance

Keller Rohrback’s investigation focuses on alleged abuses by Bank of America and JPMorgan Chase, among others, such as: failing to pay for hazard insurance out of the borrower’s escrow funds, charging homeowners for unnecessary insurance, backdating policies providing coverage retroactively, utilizing their own subsidiaries to provide the hazard insurance, and purchasing policies from companies who share fees or profits with the servicers—often without disclosing this information to the borrower. Keller Rohrback is also investigating the force-placed insurance practices of the following mortgage loan servicers:

Aurora Loan Services IndyMac Mortgage Services
Downey Savings & Loan Litton Loan Servicing LP
EMC Mortgage Corp. Nationstar Mortgage LLC
Financial Freedom PennyMac
GMAC Mortgage, Inc. Saxon
HSBC SunTrust Mortgage, Inc.

Source: Keller Rohrback L.L.P.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUD1 Comment

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