Jennifer E. Bethel*
Allen Ferrell**
Gang Hu***

ABSTRACT

This paper explores the economic and legal causes and consequences of the 2007-2008 credit crisis. We provide basic descriptive statistics and institutional details on the mortgage origination process, mortgage-backed securities (MBS), and collateralized debt obligations (CDOs). We examine a number of aspects of these markets, including the identity of MBS and CDO sponsors, CDO trustees, CDO liquidations, MBS insured and registered amounts, the evolution of MBS tranche structure over time, mortgage originations, underwriting quality of mortgage originations, and write downs of the commercial and investment banks. In light of this discussion, the paper then addresses questions as to whether these difficulties might have been foreseen, and some of the main legal issues that will play an important role in the extensive litigation (summarized in the paper) that is underway, including the Rule 10b-5 class actions that have already been filed against the banks, pending ERISA litigation, the causes-of-action available to MBS and CDO purchasers, and litigation against the rating agencies. In the course of this discussion, the paper discusses three distinctions that will likely prove central in the resolution of the securities class action litigation: (1) “no fraud by hindsight”; (2) “truth on the market”; and (3) loss causation.
*

Click below to continue …

HARVARD
JOHN M. OLIN CENTER FOR LAW, ECONOMICS, AND BUSINESS
LEGAL AND ECONOMIC ISSUES IN LITIGATION
ARISING FROM THE 2007-2008 CREDIT CRISIS

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com

April 9, 2010

John E. Bowman, Acting Director
Office of Thrift Supervision

Sheila C. Bair, Chairman
Federal Deposit Insurance Corporation

This report presents the results of our review of the failure of Washington Mutual Bank (WaMu), Seattle, Washington; the Office of Thrift Supervision’s (OTS) supervision of the institution; and the Federal Deposit Insurance Corporation’s (FDIC) monitoring of WaMu for insurance assessment purposes. OTS was the primary federal regulator for WaMu and was statutorily responsible for conducting full-scope examinations to assess WaMu’s safety and soundness and compliance with consumer protection laws and regulations. FDIC was the deposit insurer for WaMu and was responsible for monitoring and assessing WaMu’s risk to the Deposit Insurance Fund (DIF). On September 25, 2008, FDIC facilitated the sale of WaMu to JPMorgan Chase & Co in a closed bank transaction that resulted in no loss to the DIF.

Section 38(k) of the Federal Deposit Insurance Act requires the cognizant Inspector General to conduct a material loss review (MLR) of the causes of the failure and primary federal regulatory supervision when the failure causes a loss of $25 million to the DIF or 2 percent of an institution’s total assets at the time the FDIC was appointed receiver. Because the FDIC facilitated a sale of WaMu to JPMorgan Chase & Co without incurring a material loss to the DIF, an MLR is not statutorily required. However, given WaMu’s size, the circumstances leading up to WaMu’s sale, and non-DIF losses, such as the loss of shareholder value, the Inspectors General of the Department of the Treasury and FDIC believed that an evaluation of OTS and FDIC actions could provide important information and observations as the Administration and the Congress consider regulatory reform.

Click image to contiue…

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com

Dear Friends,

After the 60 Minutes Segment on Foreclosure Fraud on April 3, 2011, I was contacted by over 2,000 individuals, seeking help or wanting to help.

FOR ALL THOSE WHO WANT TO HELP RESEARCH THE DOCX FORGERY SCHEME:

1. Search the official records of your county and find all the Mortgage Assignments filed by Docx in 2009. Search by bank: Deutsche Bank, Bank of NY Mellon, U.S. Bank, HSBC, Wells Fargo, etc.

These are very recognizable. On each form, in the left hand corner, there is a statement that the Assignment was prepared by Docx in Alpharetta, GA.

For examples, click on the word PLEADINGS on the Home Page of www.frauddigest.com (my online magazine) – then click on the second entry – 10 Versions of Linda Green signatures on mortgage documents.

Print each example you find in your county Official Records. Identify and circle the name of the borrorwer/homeowner on each record.

2. Go Back to the Official Records. Search the name of each homeowner on the Docx Assignments for Lis Pendens.

Print the Lis Pendens that corresponds to the Assignment and staple these together.

Note that there will not be a Lis Pendens for every Assignment – many homeowners will have already handed over the keys or agreed to a short sale to avoid litigation.

3. Sort by Law Firm Preparing the Lis Pendens.

In Florida, for example, the firms using these Assignments will include Law Offices of David Stern, Law Offices of Marshall Watson, Shapiro & Fishman, Florida Default Law Group, Law Offices of Daniel Consuegra, Akerman & Senterfitt, Gladstone Law Group and many others.

These are the firms that continued to use the forged documents, never “noticing” that:

(1) the signatures varied so significantly that forgeries were likely;

(2) the same individuals used so many different job titles that the validity was unlikely;

(3) the dates of the Assignments indicated a fraudulent document because the Assignments came after the Lis Pendens.

4. Compile a report of these findings – LAW FIRMS USING FORGED AND FABRICATED DOCUMENTS TO FORECLOSE.

State plainly which law firms used these documents and attach the documents supporting your conclusions.

5. Send your reports to the following:

(1) your local State Attorney;

(2) the Disciplinary Committee of the Bar Association in your state;

(3) the FBI/attention: Mortgage Fraud Taskforce;

(4) the U.S. Attorney for your district;

(5) the Attorney General for your state;

(6) your country recorder;

(7) your area newspaper/television investigative reporter.

6. You may also sort by the BANK that used these fraudulent documents to take homes, and include that information in your reports.

Please send a .pdf file of your letter (without attachments) to szymoniak@mac.com.

If you are very ambitious, you may also add the face value of all of the Docx Assignments you locate so that you can report the total amount that banks took or tried to take using these forged and fabricated documents in 2009.

WHEN WE ALL COMPLETE THIS PROJECT, WE WILL MOVE ON TO FORGED AND FABRICATED ASSIGNMENTS  PREPARED BY LAW FIRMS (such as David Stern in Florida and Baum in NY) AND OTHER SERVICERS.

Thank you for joining this effort.

Best regards,

LYNN E. SZYMONIAK

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com

From Jacksonville.com

It’s a tale populated with many of the major players in the national foreclosure drama: The law firm of David Stern, the Mortgage Electronic Registration Systems (better known as MERS) and a mortgage packaged with others and sold into a securitized trust.

Here’s how it happened.

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com

Donald Trump recently told NBC’s TODAY Show Host Meredith Vieira, that up until 3 weeks ago he thought the President was born in Amerika. That his birth certificate isn’t even a real “certificate” because it doesn’t have a signature. Now he has his doubts and sources say he has hired a group to investigate.

I say to Donald, save your cash … we have proof it’s signed and real.

Via Williambanzai7 @ Zero Hedge

Although this being a joke, the families unlawfully foreclosed isn’t.

This is just as real as the frauduments used for assigning, satisfying etc. equitable interest to real property…

#

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com