Ally | FORECLOSURE FRAUD | by DinSFLA

Tag Archive | "ally"

Ally says may put mortgage unit Residential Capital (ResCap) in bankruptcy

Ally says may put mortgage unit Residential Capital (ResCap) in bankruptcy


REUTERS-

Ally Financial Inc, the U.S. government-owned lender, said its mortgage unit could file for bankruptcy, in the company’s most direct statement so far about its plans for the struggling business.

Ally Chief Executive Michael Carpenter said its Residential Capital LLC unit has been examining options that range from “staying the course” to bankruptcy.

“We think that the single most important thing that we can do to preserve and enhance shareholder value is to distance Ally from the mortgage business,” Carpenter said on a conference call with investors after the company posted quarterly earnings.

Sources have told Reuters that bankruptcy was an option for ResCap, possibly as early as mid-May, but the company had previously only hinted at the possibility. An executive said Ally failed a recent test from regulators for soundness in distressed economic situations, known as the Federal Reserve’s “stress test,” in large part because of liabilities linked to the mortgage business.

Ally, which was originally the lending arm of General Motors, said it learned on Wednesday that Chrysler Group LLC was not renewing a preferred lending agreement that will now expire next year, but executives downplayed the importance of that loss on the call.

[REUTERS]

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Barney Frank requests hearing on mortgage abuses at Ally

Barney Frank requests hearing on mortgage abuses at Ally


Just one day after Attorney General Martha Coakley urged Congress to investigate Ally, GMAC, this comes.

REUTERS-

Congressman Barney Frank on Wednesday asked his colleagues to hold a hearing on alleged mortgage abuses at Ally Financial, a day after the attorney general from his home state of Massachusetts requested that lawmakers investigate.

“Given Ally’s significant role in the mortgage business and the federal government’s considerable financial investment,” Frank wrote to Spencer Bachus, the chairman of the House Financial Services Committee, “a prompt investigation of this matter by the Committee is warranted.”

The U.S. Treasury owns some 74 percent of Ally after a 2008 investment in the firm.

Last week Massachusetts sued Ally’s mortgage unit, GMAC Mortgage, and four other top banks for allegedly pursuing illegal foreclosures and deceiving homeowners whose loans they service.

[REUTERS]

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LETTER: Attorney General Martha Coakley urges Congress to investigate Ally, GMAC

LETTER: Attorney General Martha Coakley urges Congress to investigate Ally, GMAC


THE COMMONWEALTH OF MASSACHUSETTS
OFFICE OF THE ATTORNEY GENERAL
ONE ASHBURTON PLACE
BOSTON, MASSACHUSETTS 02108
MARTHA COAKLEY
ATTORNEY GENERAL
(617) 727-2200
www.mass.gov/ago

December 6, 2011
The Honorable Tim Johnson
Chairman

U.S. Senate Committee on Banking, Housing, and Urban Affairs
534 Dirksen Senate Office Building
Washington, D.C. 20510

The Honorable Spencer Bachus
Chairman
U.S. House Committee on Financial Services
2129 Rayburn House Office Building
Washington, DC 20515

Re: Ally Financial; GMAC Foreclosure Behavior

I am writing regarding what we believe is serious misconduct committed by Ally
Financial, through its subsidiary GMAC Mortgage, against homeowners in
Massachusetts.

Last week, our office filed a lawsuit against Ally and four national banks for
pursuing illegal foreclosures and deceptive loan servicing. Ally and other banks charted
a destructive path by cutting corners and rushing to foreclose on homeowners without
following the rule of law, which has exacerbated the nation’s foreclosure crisis.
In light of Ally’s alleged deceptive and illegal actions against homeowners in
Massachusetts and across the country, I respectfully request that your committees
investigate Ally’s serious misconduct and consider what actions the federal government
can take to ensure that Ally adheres to the law.

[…]

[ipaper docId=74953296 access_key=key-26rwiob9swfb2t53q7p9 height=600 width=600 /]

 

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Foreclosure Fraud Expert Marie McDonnell Commends Attorney General Martha Coakley’s Lawsuit Against Banks and MERS

Foreclosure Fraud Expert Marie McDonnell Commends Attorney General Martha Coakley’s Lawsuit Against Banks and MERS


Marie McDonnell, President of McDonnell Property Analytics, Inc., and a pioneer in exposing fraudulent and illegal practices in the mortgage industry through her forensic audits, today commends Attorney General Martha Coakley and her staff for filing a comprehensive lawsuit against Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co., Citigroup, Ally Financial Inc., MERS and MERSCORP, Inc.

“Today, AG Coakley took strong and decisive action to enforce the rule of law and obtain meaningful
relief for Massachusetts consumers. As someone who has worked extensively with homeowners who
have faced the threat of foreclosure due to unforeseen circumstances such as illness and job loss, or
because they were intentionally victimized by these banks for profit motives, I feel it is imperative that
the banks be held responsible for the damage they have caused to people’s lives, their communities and
the Commonwealth at large. I applaud AG Coakley for having the courage to stand up to these rogues
and hold them accountable for what they have done, and I look forward to the relief and restitution that
this will bring families moving forward.”

McDonnell was tapped by John O’Brien, Register of the Essex Southern District Registry of Deeds in
Salem, to perform an in-depth forensic examination of assignments of mortgage recorded during 2010
to and from JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Bank of America, N.A. to test the
transparency and integrity of his registry. The audit gained national attention and uncovered massive
fraud and defects in title, such as:

  • · Only 16% of all mortgage assignments examined are valid
  • · 75% of all assignments examined are invalid and 8.7% are questionable
  • · 27% of the invalid assignments are fraudulent, 35% are “robo-signed” and 10% violate the

Massachusetts Mortgage Fraud Statute.

  • · 683 assignments are missing, translating to approximately $180,000 in lost recording fees per

1,000 mortgages whose current ownership can be traced.

The audit also revealed the pervasive role of MERS in the mortgage industry:

  • · 46% of mortgages are MERS registered
  • · 47% are owned by Government Sponsored Enterprises (Fannie Mae, Freddie Mac, Ginnie Mae)
  • · Typically ownership of these mortgages is obscure

One little-known fact revealed by McDonnell’s audit is that when JPMorgan Chase Bank, N.A., Wells
Fargo Bank, N.A. and Bank of America, N.A. issue mortgage loans directly to consumers, they do not
register them into the MERS System. McDonnell also found that these banks do not record interim
assignments of mortgage and are in large part responsible for corrupting the chain of title in John
O’Brien’s registry.

McDonnell’s audit supports Attorney General Coakley’s allegations that these banks committed unlawful
foreclosures and engaged in deceptive practices.

McDonnell Property Analytics has and will continue to assist individual homeowners facing foreclosure
and the attorneys who represent them.

[ipaper docId=74648926 access_key=key-hy53up5vs4or89m2vcw height=600 width=600 /]

 

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CAPITAL STRIKE! GMAC stops mortgage lending in MA in response to AG lawsuit

CAPITAL STRIKE! GMAC stops mortgage lending in MA in response to AG lawsuit


SO WHAT WHO CARES… There are credit unions!

Mass AG: “In this state, banks must follow laws. It appears GMAC acknowledges it has a problem following those laws & being held accountable.”

WSJ-

GMAC Mortgage, the mortgage lender of Ally Financial Inc., is exiting the vast majority of its lending in Massachusetts a day after the state sued it over its foreclosure practices.

The nation’s fifth-largest mortgage originator said it “has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable,” ratcheting up the high-stakes mortgage fight there.

Attorney General Martha Coakley sued the five biggest mortgage servicers Thursday, in the first government lawsuit targeting all five for alleged improper foreclosure practices including so-called robo-signing. The practice involves people who allegedly signed many foreclosure documents …

[WALL STREET JOURNAL]

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MA Attorney General Martha Coakley & Reg. Of Deeds John O’Brien on NBC Nightly News w/ Brian Williams [VIDEO]

MA Attorney General Martha Coakley & Reg. Of Deeds John O’Brien on NBC Nightly News w/ Brian Williams [VIDEO]


“The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis,” said AG Coakley.  “Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law. Our action today seeks real accountability for the banks illegal behavior and real relief for homeowners.”

 

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Massachusetts AG Coakley Takes on the Banks | Abigail C. Field

Massachusetts AG Coakley Takes on the Banks | Abigail C. Field


Abigail C. Field-

The posse of Wall Street Sheriffs just got bigger: Massachusetts Attorney General Martha Coakley joined Nevada Attorney General Catherine Cortez Masto, New York Attorney General Eric Schneiderman and Delaware Attorney General Beau Biden. AG Coakley’s effort is the most comprehensive to date by far, in that she sues five major banks (Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally) and MERS for unlawful and deceptive conduct. (AG Masto still retains the title as the only AG bold enough to indict people.) Her suit does not include all the kinds of claims other AGs have alleged, however, and some of the claims are uniquely provable under Massachusetts law.

[REALITY CHECK]

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Five National Banks Sued by AG Coakley in Connection with Illegal Foreclosures and Loan Servicing

Five National Banks Sued by AG Coakley in Connection with Illegal Foreclosures and Loan Servicing


First Comprehensive Lawsuit to Address Foreclosure Crisis Seeks to Hold Banks Accountable For Illegal and Deceptiv

Bank of America, Wells Fargo, JP Morgan Chase, Citi, and GMAC All Named As Defendants; Mortgage Electronic Registration System (“MERS”) Also Sued 

BOSTON – Five national banks have been sued in connection with their roles in allegedly pursuing illegal foreclosures on properties in Massachusetts as well as deceptive loan servicing, Attorney General Martha Coakley announced today.  The lawsuit was filed today in Suffolk Superior Court against Bank of America, Wells Fargo, JP Morgan Chase, Citi, and GMAC.  It also names Mortgage Electronic Registration System, Inc. (“MERS”) and its parent, MERSCORP Inc., as defendants.

“The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis,” said AG Coakley.  “Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law. Our action today seeks real accountability for the banks illegal behavior and real relief for homeowners.”

In the complaint pdf format of    Complaint Against 5 National Banks  , the Attorney General alleges these five entities engaged in unfair and deceptive trade practices in violation of Massachusetts’ law by:

  • Pervasive use of fraudulent documentation in the foreclosure process, including so-called “robo-signing”;
  • Foreclosing without holding the actual mortgage (“Ibanez” violations);
  • Corrupting Massachusetts’ land recording system through the use of MERS;
  • Failing to uphold loan modification promises to Massachusetts homeowners.

USE OF FALSE DOCUMENTS TO EXPEDITE FORECLOSURES “ROBO-SIGNING”:

According to the complaint, the banks used false documentation in the foreclosure process, including so-called “robo-signing”, whereby bank personnel signed affidavits that were untrue, or not based on the signor’s actual knowledge.  An entity wishing to foreclose on a property must demonstrate it has filed an affidavit in compliance with Massachusetts law.  By  October 2010, the banks’ flagrant disregard of affidavit and notary process requirements became widely known.  Filings with various Registers of Deeds provided to the Attorney General’s Office revealed the pervasive use of mortgage service employees to sign hundreds of affidavits and sworn statements without personal knowledge of the information contained in those affidavits.   Evidence also suggests these practices were not confined to the foreclosure process, but also used in the assignment, transfer and modification of mortgages secured by property in Massachusetts.

FORECLOSING WITHOUT LEGAL AUTHORITY “IBANEZ VIOLATIONS”:

Second, these five entities participated in unlawful foreclosures when they commenced foreclosures on mortgages where they were not the holders of those mortgages.  The Supreme Judicial Court (SJC), in Commonwealth v Ibanez, recently upheld Massachusetts law and stated that “only the present holder of a mortgage is authorized to foreclose on the mortgaged property.”  The complaint alleges that these entities ignored this fundamental legal mandate and proceeded to foreclosure even though they did not hold the mortgage, and thus had no legal authority to conduct the foreclosure.  The banks’ failure to obtain a valid assignment of the mortgage prior to foreclosure has adversely impacted titles to hundreds, if not thousands, of properties in the Commonwealth.  The complaint alleges that the banks falsely claimed to be the holder of a mortgage in several foreclosure documents even though they failed to obtain a valid assignment of the mortgage.

UNDERMINING PUBLIC RECORDS “MERS”:

Third, the complaint alleges that these banks have undermined our public land record system through the use of MERS, a private electronic registry system.  According to the complaint, the creation and use of MERS was adopted by these defendants primarily to avoid land registration and recording requirements, including payment of recording and registration fees, and to facilitate sales of mortgage loans.  The use of MERS has resulted in a lack of transparency as to the entities that have the legal authority to enforce mortgages, and unfairly conceals from borrowers the true identity of the holder of the debt.  Since 1997, more than 63 million home loans have been registered on the MERS System, accounting for more than 60 percent of all newly-originated mortgage loans.  The complaint also alleges that through the use of the MERS system, the banks unlawfully failed to register assignments of mortgages and transfers of the beneficial interests in mortgages.

MISREPRESENTING LOAN MODIFICATION PROGRAMS:

Finally, the complaint alleges the banks deceived and misrepresented to borrowers the process, requirements, and availability of loan modifications.   The banks publically claimed to be engaged in widespread loan modifications aimed at preserving home ownership and avoiding unnecessary foreclosures.   Through the National Homeownership Retention Program, which commenced on November 6, 2008, these banks represented that they would work with borrowers to help them avoid unnecessary foreclosures by reducing monthly mortgage payments to affordable and sustainable levels.  The complaint alleges these banks misled borrowers about their eligibility for this program and the amount of relief available, failed to achieve a significant level of modifications, and often strung along borrowers for months in trial modifications that were ultimately rejected. 

The AG’s lawsuit seeks civil penalties, restitution for harm to borrowers and compensation for registration fees that were avoided. The lawsuit also seeks to hold the banks accountable through permanent injunctive relief to provide a solution for prior unlawful foreclosures and to require that the banks, going forward, register assignments and other documents in accordance with Massachusetts law.

The lawsuit follows more than a year of negotiations with the banks over a 50-state settlement focused around the issues of fraudulent documents, including “robo-signing.”  AG Coakley had made clear that she would not sign on to an agreement with the banks if it included broad liability release regarding MERS and other issues or if she did not believe the banks had come to the table with an offer in the best interest of Massachusetts.

AG Coakley’s office has been a national leader in holding banks and investment giants accountable for their roles in the economic crisis.  AG Coakley has obtained recoveries from Morgan Stanley, Goldman Sachs, Royal Bank of Scotland, Countrywide, Fremont Investment & Loan, Option One, and others on behalf of Massachusetts homeowners.  As a result of these actions, her office has recovered more than $600 million in relief for investors and borrowers, helped keep more than 25,400 people in their homes, and returned nearly $60 million in taxpayer funds back to the Commonwealth.

More information about AG Coakley’s work during the lending crisis can be found here pdf format of    Subprime Lending Crisis Factsheet  .

The lawsuit is being handled by Attorney General Martha Coakley’s Consumer Protection Division, including Assistant Attorneys General Amber Villa, John Stephan, Sara Cable, and Justin Lowe; Acting Division Chief David Monahan; Chris Barry-Smith, Chief of the Public Protection & Advocacy Bureau and Stephanie Kahn, Deputy Chief of the Public Protection & Advocacy Bureau.

 

######################

[ipaper docId=74404114 access_key=key-1am5u5umyvfcaay5kqzo height=600 width=600 /]

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COMPLAINT | Commonwealth of Massachusetts vs.  MERS, MERSCORP, BofA (BAC), Wells Fargo, CitiMortgage, JPMorgan Chase, Ally

COMPLAINT | Commonwealth of Massachusetts vs. MERS, MERSCORP, BofA (BAC), Wells Fargo, CitiMortgage, JPMorgan Chase, Ally


COMMONWEALTH OF MASSACHUSETTS
SUFFOLK COUNTY SUPERIOR COURT DEPART

COMMONWEALTH OF MASSACHUSETTS
PLAINTIFF

vs.

BANK OF AMERICA, NA., BAC HOME
LOANS SERVICING, LP, BAC GP, LLC,
JPMORGAN CHASE BANK, N.A:, CrrIBANK,
NA., CITIMORTGAGE, rNC., GMAC
MORTGAGE, LLC, WELLS FARGO BANK,
N.A., MORTGAGE ELECTRONIC
REGISTRATION SYSTEK INC„ and
MERSCORP, INC.,
DEFENDANTS

 

[ipaper docId=74404114 access_key=key-1am5u5umyvfcaay5kqzo height=600 width=600 /]

 

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Massachusetts AG Coakley to announce “comprehensive lawsuit” on foreclosure documentation against MERS, BofA, Wells, Citi, JPM, Ally

Massachusetts AG Coakley to announce “comprehensive lawsuit” on foreclosure documentation against MERS, BofA, Wells, Citi, JPM, Ally


Developing Story… Come Back and check real soon!

WE SAW THIS COMING!

WILL NEW YORK BE NEXT?

.

.

 The Commonwealth of Massachusetts

Office of the Attorney General

ONE ASHBURTON PLACE

BOSTON, MASSACHUSETTS 02108

(617) 727-2200

 (617) 727-4765 TTY

www.mass.gov/ago

 

FOR IMMEDIATE RELEASE:                                           MEDIA CONTACT:

December 1, 2011                                                                  Press Office

                                                                                                (617) 727-2543

                                                                       

MEDIA ADVISORY

 

AG COAKLEY TO HOLD PRESS CONFERENCE TO ANNOUNCE NATION’S FIRST COMPREHENSIVE LAWSUIT AGAINST 5 NATIONAL BANKS TO ADDRESS FORECLOSURE CRISIS

Files Suit After More Than Year of 50-State Negotiations

 

WHAT:           Massachusetts Attorney General Martha Coakley will hold a press conference this afternoon to announce that her office has filed the nation’s first comprehensive lawsuit against the five major national banks regarding the foreclosure crisis.  The lawsuit was filed today in Suffolk Superior Court against Bank of America, Wells Fargo, JP Morgan Chase, Citi, and Ally Financial.  It also names Mortgage Electronic Registration System, Inc. and its parent, MERSCORP Inc, as defendants. 

 

The AG’s lawsuit seeks accountability for the banks’ unlawful and deceptive conduct in the foreclosure process, including unlawful foreclosures, false documentation and robo-signing, MERS, and deceptive practices related to loan modifications.

 

WHO:             Massachusetts Attorney General Martha Coakley

WHEN:          TODAY at 1:00 PM              

 

WHERE:     Massachusetts Attorney General’s Office

   One Ashburton Place

                        20th Floor

                        Boston, MA   

 

CALL IN:       For those who cannot attend the press conference, you may listen to the audio by dialing into the conference number below. A prompt will then ask you for the Access Code. Please note that you will not be able to ask questions via the conference line.

 

PHONE NUMBER     877-820-7831

ACCESS CODE          379877

 

 

##########

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Bond Insurer FGIC Sues Ally Units Over Mortgage Securities

Bond Insurer FGIC Sues Ally Units Over Mortgage Securities


WSJ-

Insurer Financial Guaranty Insurance Co. is suing several Ally Financial Inc. subsidiaries, accusing the government-owned lender of lying about the quality of mortgages it packaged into securities.

Three lawsuits, filed Tuesday in New York State Supreme Court, claim GMAC Mortgage, Residential Capital and other affiliates made “material misrepresentations and omissions” about the “quality of the tens of thousands of mortgage loans” packaged into the securities. FGIC said it issued insurance policies to Ally for the securities based on this information.

[WALL STREET JOURNAL]

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Jeffrey Stephan, the first bank employee outed as a “robo-signer,” still works at GMAC (not as a robo-signer)

Jeffrey Stephan, the first bank employee outed as a “robo-signer,” still works at GMAC (not as a robo-signer)


For some these are documents and for others it represents families.

 

WSJ-

GMAC Mortgage LLC, the mortgage servicer that vaulted “robo-signing” into the headlines, says it has overhauled its foreclosure procedures.

The unit of Ally Financial Inc. has put each employee who works on foreclosures through an additional 40 hours of training, testing them on what they learned. Outside law firms that handle foreclosures for GMAC must answer questions about their own practices and are subject to on-site reviews.

The changes came after GMAC employee Jeffrey Stephan said in a deposition last year that he had signed off on as many as 10,000 foreclosure documents without proper review.

[WALL STREET JOURNAL]

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BOMBSHELL | GMAC’s Stunning Admissions, Accusations of David J. Stern, DJSP

BOMBSHELL | GMAC’s Stunning Admissions, Accusations of David J. Stern, DJSP


Attorney’s are hired to fix “mistakes”, not make thousands!

Imagine all the people who lost their homes to this. There is a right way and wrong way but this just goes to the core of the allegations made in the Class action again David J Stern, MERS and Shareholders including GMAC, in Florida.

Continue down below to the stunning admissions.

[ipaper docId=62178221 access_key=key-237zpkgmot81a9s9aywq height=600 width=600 /]

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Ally Financial Faces Charge for Mortgage Losses, Receives Subpoens from DOJ & SEC

Ally Financial Faces Charge for Mortgage Losses, Receives Subpoens from DOJ & SEC


WSJ-

Ally Financial Inc. said it expects to incur a $100 million second-quarter charge to cover mortgage losses posted by securitization trusts, and that it received subpoenas from regulators related to “certain mortgage activities,” according to a regulatory filing early Wednesday.

In an updated prospectus filed with the Securities and Exchange Commission, Ally said it made payments to such trusts of $152 million in the second quarter to cover losses related to …

Continue reading [THE WALL STREET JOURNAL]

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Feds to Ally Bank: Shore up foreclosure practices

Feds to Ally Bank: Shore up foreclosure practices


The Salt Lake Tribune-

Federal regulators have ordered Midvale-based Ally Bank to fix significant deficiencies in its foreclosure practices covering a two-year period in which among other things it submitted bogus legal documents for bankruptcies and other court actions.

The order from the Federal Reserve and the Federal Deposit Insurance Corp. alleges employees of Ally, two sister companies and their parent company, Allied Financial, signed foreclosure documents without reading them ­— a possibly illegal practice known as “robo-signing.”


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HEARD ON THE STREET: Mortgage Deal Leaves Bank Investors Guessing

HEARD ON THE STREET: Mortgage Deal Leaves Bank Investors Guessing


WSJ-

Here’s a lesson for the government and Ally Financial in particular: With bank investors fretting about the potential costs of soured-mortgage claims, it is best to get the details out in the open.

That’s the opposite of how Ally and Freddie Mac handled a payment last year of $325 million by the firm to the mortgage company to settle mortgage-repurchase claims. Neither Ally, General Motors’ former financing arm now majority-owned by the government, nor government-owned Freddie disclosed the amount of the settlement when it occurred. The fact that a deal was struck at all was only disclosed by Ally and …


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Massachusetts Homeowner Foreclosure Case to Resume After High Court Ruling

Massachusetts Homeowner Foreclosure Case to Resume After High Court Ruling


BLOOMBERG-

A statewide class action in which Massachusetts homeowners accuse U.S. Bancorp and Ally Financial Inc. of faulty foreclosures will resume now that the state’s high court ruled in a similar case last week.

The litigation was on hold while the Supreme Judicial Court decided whether state law required foreclosures to be conducted by the mortgage owner. The high court ruled Jan. 7 in U.S. Bank v. Ibanez that an industry practice allowing post-foreclosure assignments violated state law.

“This is a statewide class action and it’s going to bring relief to all of the people who are dispossessed homeowners in many instances,” Kevin Costello, a lawyer for the borrowers, said in a telephone interview today. Costello said he will file a motion to restart evidence gathering in the case today.

Claims of wrongdoing by banks and loan servicers triggered a 50-state investigation last year into whether hundreds of thousands of foreclosures were properly documented as the housing market collapsed.

Unwinding of foreclosures may lead to loan workouts with homeowners or force originators to buy back loans that ended up in mortgage-backed securities.

[ipaper docId=46617196 access_key=key-n31m0kugzm5zqylmo8c height=600 width=600 /]

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BLOOMBERG: 50 State AG’s Ready To Settle Foreclosure Fraud, Not Criminal

BLOOMBERG: 50 State AG’s Ready To Settle Foreclosure Fraud, Not Criminal


Foreclosure Deals to Start With Big Lenders, Iowa Says

By Margaret Cronin Fisk and Prashant Gopal – Jan 3, 2011 6:08 PM ET

The 50 state attorneys general probing U.S. foreclosure practices will first settle with the five largest loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., Iowa Attorney General Tom Miller said.

No settlements have been reached yet, Miller said in a telephone interview today. The other three are Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc., said Miller, the leader of the 50-state investigation. The five have 59 percent of the market, Miller said.

“What we’re looking at is five separate agreements with the five largest servicers,” Miller said. “We’re still a ways away” from reaching agreements, he said. “We’re working very hard to figure out what should be in the settlement.”

All 50 U.S. states are investigating whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures. The probe, announced Oct. 13, came after JPMorgan and Ally Financial’s GMAC mortgage unit said they would stop repossessions in 23 states where courts supervise home seizures, and Bank of America, the largest U.S. lender, froze foreclosures nationwide.


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BLOOMBERG: Ally Settles Fannie Buyback Demands for $462 Million

BLOOMBERG: Ally Settles Fannie Buyback Demands for $462 Million


By Hugh Son – Dec 27, 2010 5:48 PM ET

Ally Financial Inc., the auto and home lender majority owned by the U.S. government, said its mortgage unit reached a $462 million settlement to resolve repurchase claims by Fannie Mae on $292 billion in home loans.

Ally, formerly known as GMAC Inc., said the settlement covers loans serviced by its GMAC Mortgage unit for Fannie Mae before June 30 and mortgage-backed securities it sold to Fannie Mae. The accord was reached on behalf of Ally’s Residential Capital unit and some of its subsidiaries, the Detroit-based company said today in a statement.

Chief Executive Officer Michael Carpenter, preparing Ally for a share sale that would allow the government to withdraw support, is trying to resolve ResCap’s losses linked to representations and warranties on home loans. Mortgage buyers invoke the clauses to force lenders to buy back faulty loans.

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ATTORNEY GENERAL CUOMO EXPANDS PROBE OF NEW YORK FORECLOSURE ACTIONS

ATTORNEY GENERAL CUOMO EXPANDS PROBE OF NEW YORK FORECLOSURE ACTIONS


Demands information from Bank of America, JP Morgan Chase, Wells Fargo and GMAC Mortgage/Ally ~Calls for suspension of foreclosures by mortgage servicers engaged in “robo-signing” in New York until accuracy of court documents and integrity of process are assured

NEW YORK, NY (October 12, 2010) – Attorney General Andrew M. Cuomo today announced that he is seeking information from four major mortgage servicers – Bank of America, JP Morgan Chase, Wells Fargo and GMAC Mortgage/Ally – concerning the filing of affidavits that falsely attest the signer has personal knowledge of the facts presented in home foreclosure proceedings, a practice known as “robo-signing.”

In view of the prevalence of this practice in the industry, Cuomo also called on mortgage servicers engaged in “robo-signing” in New York to immediately suspend all foreclosure actions in the state until they correct their procedures to comply with New York law and can assure the public and the courts that integrity has been restored.

“I will not allow New Yorkers to lose their homes due to mortgage goliaths that buck the system by submitting affidavits signed without knowledge of the facts,” said Attorney General Cuomo. “Such conduct is a fraud upon our courts and a slap in the face of New Yorkers struggling to get by in this economy. My office will continue to root out these practices so homeowners receive the full protections afforded by our judicial system.”

Recent reports indicate that employees of these mortgage servicers routinely signed affidavits submitted in foreclosure proceedings without personal knowledge of the underlying facts or verification of loan file information, and without even reading the documents they signed. This practice, known as “robo-signing,” has tainted the integrity of the foreclosure process by which homeowners in New York lose their homes. Bank of America, JP Morgan Chase and GMAC Mortgage announced that they were temporarily halting pending foreclosures, while Wells Fargo has not suspended foreclosures despite the deficiencies uncovered.

Attorney General Cuomo is calling on these mortgage servicers to submit documents and information to his office concerning how foreclosure documents are prepared, verified, attested to and notarized, and how required notices are provided to New York homeowners. The letters request that the mortgage servicers stop re-filing foreclosures that had been suspended (and in Wells Fargo’s case, cease proceeding with pending foreclosures) until the Attorney General’s Office is assured that reliable and fair procedures are in place and that accurate, trustworthy documentation will be submitted to the New York courts. The letters also request that the mortgage servicers refrain from filing any new foreclosures until they can provide assurances that their procedures comply with New York law and are neither tainted nor inaccurate.

Because of the gravity of these transgressions and the high volume of foreclosures, Attorney General Cuomo is calling on all mortgage servicers engaged in “robo-signing” in New York to immediately suspend all pending foreclosure actions in the state, including evictions and foreclosure sales. Cuomo is also requesting that the mortgage servicers not file any new foreclosures until the companies correct their procedures.

Tens of thousands of New Yorkers have been devastated by the foreclosure crisis. In fact, the foreclosure rates in Nassau and Suffolk Counties rank among the ten highest in the nation. More than 60,000 New York homes are currently in foreclosure, and 130,000 New York homeowners have received pre-foreclosure notices this year after falling behind on their mortgage payments.

In addition to his office’s review of Bank of America, Chase, Wells Fargo and GMAC Mortgage/Ally, Attorney General Cuomo is working with other state attorneys general, banking regulators and other interested parties to assess the veracity of servicers’ foreclosure filings and ensure the fairness and accuracy of their processes.

Attorney General Cuomo advises New York homeowners who are facing foreclosure proceedings to do the following:

  • Contact the court to find out the status of your foreclosure proceeding.
  • Seek representation or advice from a qualified attorney. If necessary, contact your local bar association or legal services office for a referral. If you are unable to retain counsel, carefully review any documents filed thus far with the court to ensure their accuracy.
  • If you have not done so already, immediately contact your lender or servicer to discuss available alternatives to foreclosure such as a loan modification.
  • For a general description of the foreclosure process, refer to www.nyprotectyourhome.com/fc_timeline.html.
  • Consult with a government-approved housing counseling agency. To find counselors approved by the U.S. Department of Housing and Urban Development (HUD) in your local area, call 800-569-4287 or visit www.hud.gov. A list of housing counselors also can be found via the NYS Banking Department at www.banking.state.ny.us.
  • Call HOPE NOW at 1-888-995-HOPE. HOPE NOW is an alliance of housing counselors, mortgage companies, investors and other mortgage market participants that provides free foreclosure prevention assistance.
  • If you live in New York City, call 311 to schedule free foreclosure counseling sessions at the Center for New York City Neighborhoods.

New York homeowners who believe their homes were foreclosed based upon false or inaccurate documents filed in court by their lender or servicer should seek representation from an attorney. They may also file a complaint with the New York Attorney General’s Bureau of Consumer Frauds & Protection by calling 800-771-7755 or visiting www.ag.ny.gov.

The investigation, led by Special Deputy Attorney General for Consumer Frauds & Protection Joy Feigenbaum, is being handled by Special Counsel Mary Alestra, Assistant Attorney General Brian Montgomery and Deputy Bureau Chief Jeffrey Powell of the Bureau of Consumer Frauds & Protection under the direction of Executive Deputy Attorney General for Economic Justice Maria Vullo and Deputy Attorney General for Economic Justice Michael Berlin.


© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, bank of america, CONTROL FRAUD, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, GMAC, investigation, jpmorgan chase, MERS, MERSCORP, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., rmbs, robo signers, securitization, servicers, STOP FORECLOSURE FRAUD, Supreme Court, Susan Chana Lask, Violations, washington mutual, wells fargoComments (6)

BLOOMBERG: Citigroup Stops Using Foreclosure Law Firm Under Investigation in Florida

BLOOMBERG: Citigroup Stops Using Foreclosure Law Firm Under Investigation in Florida


By Dakin Campbell and Donal Griffin – Oct 12, 2010 12:00 AM ET

Citigroup Inc. said it stopped steering foreclosure work to a Florida law firm whose court filings to support home seizures are under investigation by the state’s attorney general.

The bank, which is proceeding with seizures as some rivals stop to recheck documents, had used the Law Offices of David J. Stern PA. Florida Attorney General Bill McCollum said Aug. 10 it is examining whether Stern and two other firms filed “improper documentation” with the state’s courts to speed proceedings.

“Pending the outcome of the AG’s investigation, Citi is not referring new matters to this firm,” the New York-based bank said in an e-mailed statement. Citigroup services loans for government-sponsored entities, such as Fannie Mae and Freddie Mac. Stern “was approved by the GSEs during the time in which it was retained by Citi,” the bank said.

Lawmakers, attorneys general and consumer groups have pressed mortgage firms to follow Bank of America Corp., the biggest U.S. lender, which last week suspended all foreclosures to check whether faulty documents were used to confiscate homes. JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC Mortgage unit froze seizures or evictions in Florida and 22 other states. Citigroup said last week it doesn’t plan to join them.

McCollum’s office “hasn’t made any charges or allegations of fault,” said Jeffrey Tew, an outside attorney for Plantation, Florida-based Stern, who declined to discuss its work for Citigroup. “I believe they’re a client. I can’t go into any details.”

Continue reading…BLOOMBERG

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© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, CitiGroup, djsp enterprises, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, investigation, Law Offices Of David J. Stern P.A., notary fraudComments (0)

HUGE |Here comes the Title Companies

HUGE |Here comes the Title Companies


OLD REPUBLIC TITLE:

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

Short and sweet.

Source: MARKET TICKER

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, chain in title, conflict of interest, CONTROL FRAUD, corruption, deed of trust, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, GMAC, insurance, investigation, mortgage, Old Republic Title, robo signers, stopforeclosurefraud.com, Title insuranceComments (1)

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