Today the Florida Attorney General issued Subpoenas Duces Tecum’s to both Lender Processing Services Inc. and to a subsidiary DOCX. This involves employees past or present, the four foreclosure firms currently being investigated.

Both Assistant AG’s “McCollum’s Angels” June Clarkson and Theresa Edwards are doing an outstanding job!

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AG_Subpoena_DT-to-Docx_

AG_Subpoena_LPS

STATE OF FLORIDA
OFFICE OF THE ATTORNEY GENERAL
DEPARTMENT OF LEGAL AFFAIRS

______________________________________
ECONOMIC CRIMES
INVESTIGATIVE SUBPOENA DUCES TECUM

“You,” “Your” or “DOC X” as used herein means DOCX, L.L.c. and any ofthe respondents, their agents and employees or any “affiliate” of the aforementioned entities, as that term is herein defined. Your agents include but are not limited to your officers, directors, attorneys, accountants, CPA’s, advertising consultants, or advertising account representatives. Any document in the possession ofyou, your affiliates, your agents or your employees is deemed to be within your possession or control. You have the affirmative duty to contact your agents, affiliates and employees and to obtain documentation from them, if such documentation is responsive to this subpoena.

B. Unless otherwise indicated, documents to be produced pursuant to this subpoena should include all original documents prepared, sent, dated, received, in effect, or which otherwise came into existence at any time. If your “original” is a photocopy, then the photocopy would be and should be produced as the original.

C. This subpoena duces tecum calls for the production of all responsive documents in your possession, custody or control without regard to the physical location ofsaid documents.

D. “And” and “or” are used as terms of inclusion, not exclusion.

E. The documents to be produced pursuant to each request should be segregated and specifically identified to indicate clearly the particular numbered request to which they are responsIve.

F. In the event that you seek to withhold any document on the basis that is properly entitled to some privilege or limitation, please provide the following information:

1. A list identifying each document for which you believe a limitation exists;

2. The name of each author, writer, sender or initiator of such document or thing, if any;

3. The name of each recipient, addressee or party for whom such document or thing was intended, ifany;

4. The date of such document, if any, or an estimate thereof so indicated if no date appears on the document;

5. The general subject matter as described in such document, or, if no such description appears, then such other description sufficient to identify said document; and

6. The claimed grounds for withholding the document, including, but not limited to, the nature of any claimed privilege and grounds in support thereof.

G. For each request, or part thereof, which is not fully responded to pursuant to a privilege, the nature of the privilege and grounds in support thereof should be fully stated.

H. If you possess, control or have custody of no documents responsive to any of the numbered requests set forth below, state this fact in your response to said request.

1. For purposes of responding to this subpoena, the term “document” shall mean all writings or stored data or information ofany kind, in any form, including the originals and all nonidentical copies, whether different from the originals by reason of any notation(s) made on such copies or otherwise, including, without limitation: correspondence, notes, letters, telegrams, minutes, certificates, diplomas, contracts, franchise agreements and other agreements, brochures, pamphlets, forms, scripts, reports, studies, statistics, inter-office and intra-office communications, training materials, analyses, memoranda, statements, summaries, graphs, charts, tests, plans, arrangements, tabulations, bulletins, newsletters, advertisements, computer printouts, teletype, telefax, microfilm, e-mail, electronically stored data, price books and lists, invoices, receipts, inventories, regularly kept summaries or compilations of business records, notations of any type of conversations, meetings, telephone or other communications, audio and videotapes; electronic, mechanical or electrical records or representations of any kind (including without limitation tapes, cassettes, discs, magnetic tapes, hard drives and recordings to include each document translated, if necessary, through detection devices into reasonably usable form).

1. For purposes of responding to this subpoena, the term “affiliate” shall mean: a corporation, partnership, business trust, joint venture or other artificial entity which effectively controls, or is effectively controlled by you, or which is related to you as a parent or subsidiary or sibling entity. “Affiliate” shall also mean any entity in which there is a mutual identity of any officer or director. “Effectively controls” shall mean having the status of owner, investor (if 5% or more of voting stock), partner, member, officer, director, shareholder, manager, settlor, trustee, beneficiary or ultimate equitable owner as defined in Section 607.0505(11)(e), Florida Statutes.

K. The term “Florida affiliates” shall mean those of your affiliates which do business in Florida or which are licensed to do business in Florida.

L. If production of documents or other items required by this subpoena would be, in whole or in part, unduly burdensome, or if the response to an individual request for production may be aided by clarification of the request, contact the Assistant Attorney General who issued this subpoena to discuss possible amendments or modifications of the subpoena, within five (5) days of receipt ofsame.

M. Documents maintained in electronic form must be produced in their native electronic form with all metadata intact. Data must be produced in the data format in which it is typically used and maintained. Moreover, to the extent that a responsive Document has been electronically scanned (for any purpose), that Document must be produced in an Optical Character Recognition (OCR) format and an opportunity provided to review the original Document. In addition, documents that have been electronically scanned must be in black and white and should be produced in a Group IV TIFF Format (TIF image format), with a Summation format load file (dii extension). DII Coded data should be received in a (Comma-Separated Values) CSV format with a pipe (I) used for multivalue fields. Images should be single page TIFFs, meaning one TIFF file for each page of the Document, not one .tifffor each Document. Ifthere is no text for a text file, the following should be inserted in that text file: “Page Intentionally Left Blank.”

Moreover, this Subpoena requires all objective coding for the production, to the extent it exists. For electronic mail systems using Microsoft Outlook or LotusNotes, provide all responsive emails and, if applicable, email attachments and any related Documents, in their native file format (i.e., .pst for Outlook personal folder, .nsf for LotusNotes). For all other email systems, provide all responsive emails and, if applicable, email attachments and any related Documents in OCR and TIFF formats as described above.

P. The relevant time period for the present request shall be from January 1, 2006 to present unless otherwise specifically stated. YOU ARE HEREBY COMMANDED to produce at said time and place all documents, as defined above, relating to the following subjects:

1. Copies ofall “Network Agreements” between DOCX and any law firm with offices located in the State of Florida.

2. Copies of any and all underlying documentation that allows for your employee or ex-employee, Linda Green to sign documents in the following capacities:

a. Vice President of Loan Documentation, Wells Fargo Bank, N.A. successor by merger to Wells Fargo Home Mortgage, Inc.; ;

b. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for American Home Mortgage Acceptance, Inc.;

c. Vice President, American Home Mortgage Servicing as successor-in-interest to Option One Mortgage Corporation;

d. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for American Brokers Conduit;

e. Vice President & Asst. Secretary, American Home Mortgage Servicing, Inc., as servicer for Ameriquest Mortgage Corporation;

f. Vice President, Option One Mortgage Corporation;

g. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for HLB Mortgage;

h. Vice President, American Home Mortgage Servicing, Inc.;

1. Vice President, Mortgage Electronic Registration Systems, Inc. as nominee for Family Lending Services, Inc.;

J. Vice President, American Home Mortgage Servicing, Inc. as Successor -ininterest to Option One Mortgage Corporation;

k. Vice President, Argent Mortgage Company, LLC by Citi Residential Lending, Inc., attorney-in-fact;

1. . Vice President, Sand Canyon Corporation f/kJal Option One Mortgage Corporation;

m. Vice President, Amtrust Funsing (sic) Services, Inc., by American Home Mortgage Servicing, Inc., as Attorney-in -fact;

n. Vice President, Seattle Mortgage Company.

3. Copies of every document signed in any capacity by Linda Green.

4. Copies of any and all underlying documentation that allows for your employee or ex-employee, Korell Harp to sign documents in any capacity for any lender and/or servicing company.

5. Copies of any and all underlying documentation that allows for your employee or ex-employee, Jessica Ohde to sign documents in any capacity for any lender and/or servicing company.

6. Copies of any and all underlying documentation that allows for your employee or ex-employee, Pat Kingston to sign documents in any capacity for any lender and/or servicing company.

7. Copies of any and all underlying documentation that allows for your employee or ex-employee, Christina Huang to sign documents in any capacity for any lender and/or servicing company.

8. Copies of any and all underlying documentation that allows for your employee or ex-employee, Tywanna Thomas to sign documents in any capacity for any lender and/or servicing company.

9. All policy and procedure manuals and/or training materials regarding the methods and timing that DOCX uses, including without limitation relating to the drafting and/or execution of foreclosure and mortgage related documents, including but not limited to Assignments of Mortgage, Satisfactions ofMortgage and Affidavits ofany and all kind.

10. A list ofall employees, dates ofhire and termination, and their duties, including whether or not they provide any notary services for DOCX.

11. All documents in your possession regarding any contracts with Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. and The Law Offices of Marshall C. Watson, P.A., including contracts regarding payments to or from any of those entities.

12. Documents relating to the relationship between DOCX and NewTrac and/or NewInvoice, including but not limited to, documents relating to the types ofdocuments that are or can be generated or are requested to be generated.

13. Any price lists published in any manner to prospective customers, whether by printed or electronic means.

14. All communications between DOCX and Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. or The Law Offices ofMarshall C. Watson, P.A. relating to procedures, policies, instructions or performance ofthe creation, backdating, modification, amendment, or other alteration ofany real property-related transactional document or records, including assignments, satisfactions ofmortgage, affidavits, notes, allonges, or other documents filed in any court.

15. Ledgers ofall financial transactions between DOCX and Florida Default Law Group, P.L., The Law Offices of David J. Stem, P.A., Shapiro & Fishman, L.L.P. or The Law Offices of Marshall C. Watson, P .A.

16. Ledgers ofall financial transactions between DOCX and any title company, recording service, process server, or any other entity that provides payments to DOCX in connection with any services rendered in connection with any residential foreclosure.

17. Ledgers ofall financial transactions between DOCX and any title company, recording service, process server, or any other entity to whom DOCX provides payment(s) in connection with any services rendered in connection with any residential foreclosure.

WITNESS the FLORIDA OFFICE OF THE ATTORNEY GENERAL in Fort Lauderdale, Florida, this 13th day of October, 2010.

June M. Clarkson
Assistant Attorney General
Florida Bar Number: 785709
OFFICE OF THE ATTORNEY GENERAL 110 S.E. 6th Street, 10th Floor
Fort Lauderdale, Florida 33301
Telephone: 954-712-4600
Facsimile: 954-712-4658

Theresa B. Edwards
Assistant Attorney General
Florida Bar Number: 252794

NOTE: In accordance with the Americans with Disabilities Act of 1990, persons needing a special accommodation to participate in this proceeding should contact George Rudd, Assistant Attorney General at (954) 712-4600 no later than seven days prior to the proceedings. Ifhearing impaired, contact the Florida Relay Service 1-800-955-8771 (TDD); or 1-800-955-8770 (Voice), for assistance.

AUTHORITY

Florida Statute 501.206

501.206 Investigative powers of enforcing authority.(

1) If, by his own inquiry or as a result ofcomplaints, the enforcing authority has reason to believe that a person has engaged in, or is engaging in, an act or practice that violates this part, he may administer oaths and affinnations, subpoena witnesses or matter, and collect evidence. Within 5 days excluding weekends and legal holidays, after the service ofa subpoena or at any time before the return date specified therein, whichever is longer, the party served may file in the circuit court in the county in which he resides or in which he transacts business and serve upon the enforcing authority a petition for an order modifying or setting aside the subpoena. The petitioner may raise any objection or privilege which would be available under this chapter or upon service of such subpoena in a civil action. The subpoena shall infonn the party served of his rights under this subsection.

(2) If matter that the enforcing authority seeks to obtain by subpoena is located outside the state, the person subpoenaed may make it available to the enforcing authority or his representative to examine the matter at the place where it is located. The enforcing authority may designate representatives, including officials ofthe state in which the matter is located, to inspect the matter on his behalf, and he may respond to similar requests from officials ofother states.

(3) Upon failure ofa person without lawful excuse to obey a subpoena and upon reasonable notice to all persons affected, the enforcing authority may apply to the circuit court for an order compelling compliance.

(4) The enforcing authority may request that the individual who refuses to comply with a subpoena on the ground that testimony or matter may incriminate him be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against selfincrimination to which he is entitled by law shall not have the testimony or matter so provided, or evidence derived there from, received against him in any criminal investigation proceeding.

(5) Any person upon whom a subpoena is served pursuant to this section shall comply with the tenns thereof unless otherwise provided by order of the court. Any person who fails to appear with the intent to avoid, evade, or prevent compliance in whole or in part with any investigation under this part or who removes, destroys, or by any other means falsifies any documentary material in the possession, custody, or control of any person subject to any such subpoena, or knowingly conceals any relevant infonnation with the intent to avoid, evade, or prevent compliance shall be liable for a civil penalty of not more than $5,000, reasonable attorney’s fees, and costs.

Affidavit of Service Attached

RELATED LINK:

LPS 101

Washington Post Staff Writer
Saturday, October 9, 2010; 10:11 PM

Consumer advocates and lawyers warned federal officials in recent years that the U.S. foreclosure system was designed to seize people’s homes as fast as possible, often without regard to the rights of homeowners.

In recent days, amid reports that major lenders have used improper procedures and fraudulent paperwork to seize properties, some Obama administration officials have acknowledged they had been aware of flaws in how the mortgage industry pursues foreclosures.

But the officials said they could take only limited action to address the danger. In part, this was because they wanted lenders’ help carrying out federal programs to modify mortgages that had fallen into default or were poised to do so.

New concerns about improper practices – such as those involving faked documents or “robo-signers” who signed tens of thousands of documents without reviewing them – have prompted the mortgage servicing arms of the country’s largest banks to freeze millions of foreclosures. As momentum builds for a national moratorium, the administration has begun assessing the potential impact, examining the threat it could pose for the ailing housing market and the wider financial system.

There is no evidence so far that the specific abuses made public in the past few weeks were known to government officials. Nor is it clear whether they were aware that the process of the selling and reselling of mortgages among financial firms – which became extremely common and highly profitable during the housing boom – was raising legal questions about who actually owned the loans and had the right to foreclose if they want bad.

But government officials were told repeatedly that the mortgage servicing industry was deeply troubled, according to administration officials, consumer advocates, housing lawyers and congressional aides.

Continue reading…WASHINGTON POST

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Excerpt:

In addition to renewing it’s Motion for Summary Judgment, Plaintiff has also filed a Motion for Entry of Protective Order pursuant to M.R. Civ. P. 26 (c). This motion is likewise denied.

Rule 26(c) provides that “for good cause shown” a court may enter a protective order “which justice requires to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense….” M.R.Civ. P. 26(c). Plaintiff seeks a protective order prohibiting the dissemination of discovery materials obtained in this case.” Plaintiff’s Motion for Entry of Protective Order at 7. As grounds for it’s motion, Plaintiff points to the embarrassment GMAC and it’s employees have suffered, and will continue to suffer, from the posting of excerpts from Stephan’s deposition transcript on an Internet blog. The court is not persuaded that the Plaintiff has shown the requisite “ good cause” to justify entry of a protective order in this case. See e.g. Public Citizen v. Liggett Group, Inc., 858 F.2d 775, 789 (1^st Cir. 1988) (agreeing with Second Circuit in noting that “the party seeking a protective order has burden of  showing that good cause is not shown, the discovery materials in question should not receive judicial protection and therefore would be open to the public for inspection”) (citation omitted).

Stephan’s deposition was taken in advance a legitimate purpose, and the testimony elicited has directed probative value to dispute. Attorney Cox did not himself take action other that to share the deposition transcript with an attorney in Florida. That the testimony reveals corporate practices that GMAC finds embarrassing in not enough to justify issuance of a protective order. Further, Plaintiff has failed to establish that GMAC has been harmed specifically as a result of the dissemination of the June 7, 2010 deposition transcript, given that similarly embarrassing deposition from December 10, 2009 Florida deposition also appears on the Internet, and will remain even were this Court to grant Plaintiff’s motion. Accordingly, because Plaintiff has failed to satisfy it’s burden of persuasion under Rule 26(c), it’s Motion for Entry of Protective Order is denied.

Scribd

Connecticut halts all foreclosures for all banks

By Ariana Eunjung Cha  | October 1, 2010; 2:41 PM ET

Connecticut Attorney General Richard Blumenthal on Friday ordered a moratorium on all foreclosures by all banks for 60 days–the most radical action taken by a state on issue of document irregularities.

California also expanded the moratorium on foreclosures it announced last week on Ally Financial foreclosures to include those by J.P. Morgan Chase.

Calling the companies’ review of key foreclosure documents “a ruse,” California Attorney General Jerry Brown (D) ordered J.P. Morgan to prove it is following the law before it continues foreclosures in the state.

Both J.P. Morgan Chase and Ally have frozen foreclosures in 23 states because some employees had signed off on foreclosure paperwork without properly reviewing the files.

Colorado and Illinois have stopped foreclosures by Ally and at least seven other states have launched probes into the issue. But Connecticut is the first to institute an industry-wide ban.

… Washington Post

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Looks like this is becoming more and more like a fabricating factory mill full of ?????????

DOCX’s GetNet™ Document Recovery solution is a national network of runners that is engaged to provide document recovery, expedited recordation services, title searches, and insurance submissions.

The service is unique in that our clients can request that DOCX obtain any missing recordable documents through this web site through our online GetNet™ Work Order Form. Status of existing projects can also be obtained through our Online Services.

We also accept work orders the “old fashioned” way via fax or mail. Upon receipt of the work order, DOCX will access the national network of runners, place the order and follow up to ensure prompt delivery.

GetNet™ was designed to assist mortgage servicers in meeting agency certifications and to avoid costly penalties for filing late satisfaction pieces.

GetNet™ Features

• A National Network of title runners retains presence in every county jurisdiction nationwide.
• Obtains missing mortgage documents, assignments, title policies and LGC/MICs.
• Expedites recordation by physically walking documents in to county recorder offices.
• Provides title searches to identify mortgage holders.
• Provides online reporting capabilities.

GETNET™ RATE SHEET

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California Demands Halt To Foreclosures By Mortgage Giant

By Dale Kasler
dkasler@sacbee.com

California officials today demanded that Ally Financial Inc. stop foreclosing on homes in the state, citing reports indicating the big mortgage lender is violating the law.

The cease-and-desist letter, issued by Attorney General Jerry Brown, came as officials in several other states began investigating Ally’s operations.

The controversy stems from a Florida court case in which an Ally official reportedly testified that he signed thousands of documents in foreclosure cases without even reviewing the homeowners’ loan documents.

Continue Reading…THE SACRAMENTO BEE

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This should send a powerful message to each and every Foreclosure Mill out there! You are NEXT!

September 24, 2010

Michael J. Williams
President and Chief Executive Officer
Fannie Mae
3900 Wisconsin Avenue, N.W.
Washington, D.C. 20016

Dear Mr. Williams,

We are disturbed by the increasing reports of predatory ‘foreclosure mills’ in Florida working for Fannie Mae servicers.  Foreclosure mills are law firms representing lenders that specialize in speeding up the foreclosure process, often without regard to process, substance, or legal propriety.  According to the New York Times, four of these mills are both among the busiest of the firms and are under investigation by the Attorney General of Florida for fraud.  The firms have been accused of fabricating or backdating documents, as well as lying to conceal the true owner of a note.

Several of the busiest of these mills show up as members of Fannie Mae’s Retained Attorney Network, a set of legal contractors on whom Fannie relies to represent its interests as a note-holder.  The network also serves as a pool of legal talent that represents Fannie in its pre-filing mediation program, a program designed to facilitate communication between borrowers and servicers prior to foreclosure. In other words, Fannie Mae seems to specifically delegate its foreclosure avoidance obligations out to lawyers who specialize in kicking people out of their homes.

The legal pressure to foreclose at all costs is leading to a situation where servicers are foreclosing on properties on which they do not even own the note.  This practice is blessed by a legal system overwhelmed with foreclosure cases and unable to sort out murky legal details, and a set of law firms who mass produce filings to move foreclosures as quickly as possible.  At the very least, we would encourage you to remove foreclosure mills under investigation for document fraud from the Fannie Mae’s Retained Attorney Network. We also believe that Fannie should have guidelines allowing servicers to proceed on a foreclosure only when its legal entitlement to foreclose is clearly documented.  In addition, these charges raise a number of questions for us about the foreclosure process as it pertains to Fannie Mae’s holdings.

Why is Fannie Mae using lawyers that are accused of regularly engaging in fraud to kick people out of their homes?  Given that Fannie Mae is at this point a government entity, and it is the policy of the government that foreclosures are a costly situation best avoided if there are any lower cost alternatives, what steps is Fannie Mae taking to avoid the use of foreclosure mills?  What additional steps is Fannie Mae going to take to ensure that foreclosures are done only when necessary and only in accordance with recognized law?  How do your servicer guidelines take into account the incentives for fraud in the fee structure of foreclosure attorneys and others engage in the foreclosure process?  What mechanisms do you employ to monitor legal outsourcing?

We look forward to your responses and to understanding more about these disturbing dynamics in future hearings.

Sincerely,

Alan Grayson
Member of Congress

Barney Frank
Member of Congress

Corrine Brown
Member of Congress

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BELOW ARE EXAMPLES OF THE WORK COMING

FROM FANNIE/FREDDIE/MERS/LPS

FORECLOSURE MILL BARON’S

THERE IS MORE OF THESE

I guess WELLS FARGOT…

This statement from Wells Fargo appears on NY TIMES 10/1/2010:

A Wells Fargo spokeswoman said “the affidavits we sign are accurate.”

SUPREME COURT – STATE OF NEW YORK
I.A.S. PART XXXVI SUFFOLK COUNTY

PRESENT:
HON, PAUL J. BAISLEY, JR., J.S.C.

INDEX NO.: 16038/2008
MOTION DATE: 11/24/2008
Plaintiff, MOTION NO.: 001 MI)

PLAINTIFF’S ATTORNEY:
STEVEN J. BAUM, P.C.
P.O. Box 1291
Buffalo, New York 14240- 1291

Wells Fargo v. Oleg Dmitriev

Plaintiffs application is defective because there is no “affidavit made by the party” of “the facts constituting the claim, the default and the amount due” as required by CPLR §3215(f). The proffered “affidavit of merit and amount due” of Jeffrey Stephan identifies him as “the Limited Signing Officer of GMAC MORTGAGE LLC, servicer,” but no proof of Mr. Stephan’s authority to execute such affidavit on behalf of plaintiff is offered. The proffered affidavit does not otherwise comply with the requirements of CPLR $2309(c) for an out-of-state affidavit. In addition, the facts and dates recited in the affidavit regarding the consolidated mortgage and consolidated note that are the subject of this floreclosure action are at variance with the underlying documents.

In light of the foregoing, the motion for an order of reference is denied, without prejudice to renewal on proper papers.

Proposed order of reference marked “not signed.”
Dated: March 16, 2009

Paul J. Baisley, JR
J.S.C.
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Remember Judge Meenu Sasser? Recently in the Palm Beach Post she said, “I haven’t seen any widespread problem,”…referring to fraudulent foreclosure documents.

The Bender’s should take a look at this similar case…“Cat Out Of the Bag” (Trade Secrets) in CAPITAL ONE, NA v. Forbes, Fla: Dist. Court of Appeal, 2nd Dist. 2010

Foreclosure Crisis

4th DCA to review controversial switch of lender plaintiff

September 22, 2010 By: Polyana da Costa

arret Bender and his wife Gina started a court battle more than a year ago against SunTrust Mortgage, which wanted to foreclose on their Delray Beach house to recoup a $4 million mortgage.

The Benders asked the 4th District Court of Appeal to intervene last week after they came across what many foreclosure defense attorneys call growing and serious problems in South Florida courts — plaintiff substitutions and the increasing use of confidentiality in foreclosures against a backdrop of the muddled world of securitized mortgages.

Lender-plaintiffs have often lacked the documentation to prove they are the actual owner of the mortgage in question. Many loans in foreclosure have been sold in securitized packages numerous times and tracking ownership can be complicated. Critics say judges, overwhelmed by the volume of pending foreclosures cases, have overlooked the critical issue to move cases more quickly, taking away the homeowners’ right of due process.

The Benders filed a petition to quash an order by Palm Beach Circuit Judge Meenu Sasser granting a motion by SunTrust to keep confidential the documents related to the transfer and sale of the Benders’ mortgage. In the petition, the couple also criticized the order that allowed SunTrust to name a new plaintiff to replace itself in the foreclosure action. The order granting confidentiality was decided without a hearing and failed to identify the grounds for making the court records confidential, Fort Lauderdale appellate attorney Laura Watson claims in the petition she filed on behalf of the Benders. Watson did not return a call seeking comment by deadline.

Sasser ordered the documents related to the purchase and servicing of the mortgage be made available to attorneys representing the Benders but otherwise remain confidential. SunTrust claimed in its motion for confidentiality that the documents contained “proprietary commercial information.”

Florida International University law professor Howard Wasserman said the ruling seems unusual since no hearing was held on the confidentiality motion and the justification for granting confidentiality isn’t detailed in the order.

“Ideally, there would be an opportunity for the defense to respond, and you have to have good reason why the records should be confidential,” he said.

Continue reading…DAILY BUSINESS REVIEW

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Class Action Attorney Susan Chana Lask targets Foreclosure Mill Attorneys as source of foreclosure crisis.

This is the amended complaint against Foreclosure Mill Steven J. Baum and MERSCORP.

Want to join the Class? No problem!

Please contact: SUSAN CHANA LASK, ESQ.

Scribd

Related posts:

CLASS ACTION | Connie Campbell v. Steven Baum, MERSCORP, Inc

_________________________

CLASS ACTION AMENDED against MERSCORP to include Shareholders, DJSP

This is not a GMAC thing… this is a MERS thing!

THE GOVERNMENT KNOWS THIS IS A MERS THING!

THIS IS A 65 MILLION LOAN THING!

I know if I purchased a stroller for my kid and later knew it these strollers are all defective …I hope the government would kick in and do a nationwide RECALL!!

GMAC stops some evictions, foreclosed home sales

By JANNA HERRON (AP) –

NEW YORK — GMAC Mortgage LLC said Monday it halted certain evictions and sales of foreclosed homes as it corrects “a potential issue” in its foreclosure process.

The action highlights what is becoming a larger problem for lenders and servicers that may have illegally driven homeowners out of their houses. The issue is threatening to clog up an already overloaded foreclosure process.

Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis, foreclosure listing firm RealtyTrac Inc. said last week. Banks have been stepping up repossessions to clear out their backlog of bad loans.

GMAC, which is owned by Detroit-based Ally Financial Inc., did not identify the specific internal issue that prompted the moratorium in its statement, but it has been linked to lawsuits this year surrounding the alleged falsification of a key foreclosure document.

The Florida attorney general is investigating three law firms for allegedly providing fraudulent affidavits that identify who holds the original mortgage note in foreclosure cases. In Florida and in other states, this document allows lenders to bypass a costly trial and proceed with a foreclosure.

Two of the three firms being investigated — the Law Office of Marshall C. Watson and the Law Offices of David J. Stern PA — have represented GMAC in foreclosure proceedings. And the person who signed many of these allegedly false affidavits was an employee of GMAC.

In a deposition taken in December, GMAC employee Jeffrey Stephan said he signed 10,000 affidavits or similar documents a month without personally verifying who the mortgage holder was. That means many foreclosures could have taken place based on false documentation. Stephan could not be located for comment.

“That’s hundreds of thousands of cases,” said Ice Legal PA attorney Christopher Immel who took the deposition. “And there are other people at other places who sign these kinds of documents as well.”

GMAC did not address how many homeowners would be affected by its suspension of evictions and foreclosure sales. It expects the issues to be resolved within a few weeks or, at latest, by year-end. The company didn’t respond to questions beyond its statement.

The issue of documenting who holds the mortgage is not unique to GMAC. Judges and lawyers nationwide are taking a second look at foreclosure affidavits. Many mortgages have been sliced up and sold to many investors as securities and that makes it harder to determine who is the ultimate mortgage holder.

In August, a judge in Duval County, Fla., ruled that JPMorgan Chase could not foreclose upon two homeowners because Fannie Mae carried the mortgage on its books and JPMorgan Chase only serviced the loan. JPMorgan Chase had identified itself as the owner of the loan. Similar cases across the country are pending.

The law firm that represented JPMorgan Chase in that case — Shapiro & Fishman — is the third law firm being investigated by the Florida state attorney.

Copyright © 2010 The Associated Press. All rights reserved.

Related:

MERS101

I go through hundreds of cases each week and I have been saving this one for a rainy day. We’ll it’s raining today.

SUPREME COURT – STATE OF NEW YORK I.A.S. PART XXXVI SUFFOLK COUNTY PRESENT: HON. PAUL J. BAISLEY, JR., J.S.C.

DATED: MAY 10. 2010

The Court is at a loss to understand how a purported “correcting assignment” can be executed eight days before the assignment it is purporting to correct. Moreover, the Court is at a loss as to the identity of the true holder of the mortgage at the time of the commencement of the action (irrespective of any arguments regarding the validity of the purported assignment(s) by MERS as nominee of the original mortgagee; see, for example, US Bank, N.A. II Collymore, 200 NY Slip Op 09019 [2d Dept 2009]), While it is well established that any issues as to a plaintiff’s standing to commence a foreclosure action are waived by the defendant-mortgagor’s failure to appear and answer (HSBC Bank v Dammond, 59 A03d 679 l2d Sept 2009]), the contradictory and conflicting submissions on this motion implicate far more than the more issue of “standing.” Indeed, the submissions appear to have been drafted with utter disregard for the facts, or for counsel’s responsibilities as an officer of the Court, and border on the fraudulent.

In the the circumstances, the motion, which is unsupported either factually or legally, is denied in all respects. Moreover, in light of the failure of the movant to establish that any party was in fact the holder of the mortgage (and the underlying note, see KLuge v Fugm:y, 145 AD2d [2d Sept 1988J) at the time of the commencement of this action - an omission that in the circumstances may not be corrected by mere amendment -- the Court, on its own motion, hereby directs the plaintiff to show cause why the complaint should not be dismissed; and further directs Steven J. Baum, P.c. and Heather A. Johnson, Esq., the attorney of record for the plaintiff in this action and the scrivener of the affirmation referred to above, to appear before the undersigned on June 24, 2010 at II :00 a.m. to show cause why sanctions should not be imposed on plaintiff and/or its attorney(s) for frivolous conduct pursuant to 22 NYCRR §130-1.1 (c).

Dated: May 10. 2010

Scribd

I’m really waiting to see who else will join Madoff with “Racketeering”?

By Edvard Pettersson – Sep 17, 2010 12:01 AM ET

Countrywide Financial Corp. former Chief Executive Officer Angelo Mozilo must face trial on regulators’ claims he misled investors about risks tied to subprime lending, a judge ruled.

U.S. District Judge John F. Walter in Los Angeles yesterday denied requests by Mozilo and two other former senior Countrywide executives, David Sambol and Eric Sieracki, for a ruling that there were no genuine issues to be tried. The case is now set for a jury trial in October.

“It remains to be seen whether the Securities and Exchange Commission will be able to convince a jury that defendants’ statements were indeed misleading and material,” Walter said in his decision. “At the summary judgment stage, the judge’s function is not himself to weigh the evidence and determine the truth of the matter.”

The SEC sued Mozilo, 71, in June 2009, saying he publicly reassured investors about the quality of Countrywide’s loans while he issued “dire” internal warnings and sold about $140 million of his own shares.

Mozilo is the most prominent executive targeted by U.S. regulators examining the subprime mortgage crisis. He co-founded Countrywide in 1969 and built it into the nation’s biggest mortgage lender, helping trigger the subprime bubble by offering loans to customers with below-average credit scores.

‘Flying Blind’

He wrote in an e-mail that Countrywide was “flying blind” and had “no way” to determine the risks of some adjustable- rate mortgages, according to the SEC complaint.

Continue reading…. BLOOMBERG

RUSCALLEDA v. HSBC BANK USA

Glazy Ruscalleda and Jose Ruscalleda, Appellants,
v.
HSBC Bank USA, etc., Appellee.

No. 3D09-997.

District Court of Appeal of Florida, Third District.

Opinion filed September 15, 2010.

John H. Ruiz and Karen Barnet-Backer, for appellants.

Shapiro & Fishman and Heidi J. Weinzetl (Boca Raton), for appellee.

Before WELLS, ROTHENBERG, and LAGOA, JJ.

ON MOTION FOR REHEARING OR CLARIFICATION.

ROTHENBERG, J.

Upon consideration of the appellee’s motion for rehearing or clarification, we withdraw our previous opinion filed on June 9, 2010, and substitute the following opinion in its stead.

This is an appeal of a final summary judgment in a mortgage foreclosure action entered in favor of plaintiff, HSBC Bank USA (“HSBC”), and against the defendants, Glazy Ruscalleda and Jose Ruscalleda. Based on the unique circumstances of this case, we reverse and remand for further proceedings.

The unique circumstances surrounding this case involve a rather confusing situation caused by two banks—the appellee, HSBC, and American Home Mortgage Servicing, Inc. (“American Home Mortgage”)—because they were simultaneously attempting to foreclose the same mortgage. On October 8, 2008, American Home Mortgage filed a foreclosure action against the defendants.^{[ 1 ]} A week later, HSBC filed an action to foreclose the same exact mortgage. The complaint filed by HSBC falsely alleged that it was the current owner and holder of the mortgage and note, when, in reality, American Home Mortgage was still the holder of the note and mortgage.^{[ 2 ]} On October 28, 2008, due to the actions of American Home Mortgage and HSBC, the defendants, who were acting pro se at that time, filed an answer and affirmative defenses only in the foreclosure action filed by American Home Mortgage, which was the holder of the mortgage and note, because they mistakenly believed that the complaints involved the same foreclosure action.

After filing their pro se answer and affirmative defenses, the defendants retained counsel. Continuing in their mistaken belief, they did not inform their attorney of the action filed by HSBC. On November 13, 2008, counsel filed an amended answer and affirmative defenses on behalf of the defendants in the American Home Mortgage action, but took no action on the HSBC complaint.

Although the defendants did not file an answer in response to HSBC’s complaint, HSBC never moved for a default judgment.^{[ 3 ]} Instead, on January 22, 2009, HSBC moved for summary judgment, scheduling the hearing for March 24, 2009. When the defendants received the motion for summary judgment in the HSBC action, it sent the motion to their counsel. It was at that point, that the defendants and their counsel realized that two separate banks were attempting to simultaneously foreclose on the same mortgage, but that they only had been defending the initial action filed by American Home Mortgage.

On February 23, 2009, the defendants filed a memorandum of law in opposition to the motion for summary judgment, the affidavit of Glazy Ruscalleda, and a motion to transfer the case to the division where the foreclosure action filed by American Home Mortgage was pending (“Motion to Transfer”). On February 25, 2009, the defendants filed a request for production, request for admissions, and notice of interrogatory. American Home Mortgage waited until the day before the scheduled hearing to file its notice of voluntary dismissal, although it had executed the assignment of mortgage almost three months earlier.

At the scheduled hearing, the trial court heard the arguments raised by HSBC in its motion for summary judgment and by defense counsel in his memorandum of law filed in opposition. Although it is undisputed that the defendants’ discovery was still pending, the trial court entered final summary judgment on the same day as the hearing, March 24, 2009, in favor of HSBC.^{[ 4 ]}

Based on the unique circumstances set forth above, we conclude that the order under review must be reversed, and the cause remanded for further proceedings, with directions to allow the defendants to file an answer and affirmative defenses and to require HSBC to respond to the defendants’ discovery requests. The record clearly demonstrates that the defendants’ failure to file a timely answer and affirmative defenses in the action filed by HSBC was due to the confusion caused by American Home Mortgage and HSBC when they were simultaneously attempting to foreclose on the same exact mortgage in two different divisions of the circuit court.

Reversed and remanded with directions.

Not final until disposition of timely filed motion for rehearing.

Scribd

Anyone can see the “Fiction” that was set into place from all the institutions in this article below. Each one of these named parties as a shareholder utilizes Mortgage Electronic Registration Systems, Inc., yet Washington never mentions this MERS device.

All this talk of false and misleading loans blah blah blah …I mean grab the bull by it’s nuts and put these criminals behind bars. Not just seek refunds! This clean up should also seek Racketeering Indictments.

Congress Seeks Fannie, Freddie Exit as Banks Eat Soured Loans

By Dawn Kopecki – Sep 15, 2010 1:00 AM ET

U.S. lawmakers will grapple today with how to end the bailout of Fannie Mae and Freddie Mac after two years and almost $150 billion, and who pays the bill for bad loans made during the housing boom.

Regulators who seized control of the two mortgage lenders in 2008 are under pressure to stem losses for taxpayers and recoup money from banks that sold faulty loans to Fannie Mae and Freddie Mac — all without hindering the housing market’s recovery. Assistant Treasury Secretary Michael Barr and Edward DeMarco, acting director of the Federal Housing Finance Agency, are scheduled to testify today on their progress at the House Financial Services Committee.

The Obama administration and Congress are weighing the future of the two companies as part of an overhaul of the U.S. housing finance system. Fannie Mae, based in Washington, and Freddie Mac, based in McLean, Virginia, lost $166 billion on guarantees of single-family mortgages from the end of 2007 through the second quarter, according to the FHFA. Treasury Secretary Timothy F. Geithner has promised a comprehensive proposal by early next year.

“The biggest problem in the economy is that we have three or four million too many homes,” said Chris Kotowski, a banking analyst at Oppenheimer & Co. The solution “will take another two or three years to work out until we sop up the excess supply,” Kotowski said.

Loan Clean-Up

The clean-up includes seeking refunds from lenders who sold loans based on false or misleading information, and the two government-backed firms aren’t the only ones demanding buybacks. The Federal Reserve, private mortgage investors and mortgage insurers are combing through loan documents for faulty appraisals, inflated borrower incomes and missing documentation that would support a refund request.

As of the end of the second quarter 2010, Fannie Mae had $4.7 billion in outstanding repurchase requests, and Freddie Mac had $6.4 billion in outstanding repurchase requests. DeMarco said in his prepared testimony that outstanding repurchase requests continue to be “of concern.”

Continue reading…BLOOMBERG

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I was wondering why this site blew up with hits today!

THIS INVOLVES 65 MILLION LOANS…it was ’62′ !!! I have a source that confirmed this.

“The Curse Of The MERS”

READ ALL ABOUT MERS HERE…MERS 101

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