Bill Schuette | FORECLOSURE FRAUD | by DinSFLA

Tag Archive | "Bill Schuette"

Congressman Conyers Encourages Michigan Attorney General to Reject Flawed Nationwide Mortgage Settlement

Congressman Conyers Encourages Michigan Attorney General to Reject Flawed Nationwide Mortgage Settlement


Feb. 03, 2012

Conyers Encourages Michigan Attorney General to Reject Flawed Nationwide Mortgage Settlement

(WASHINGTON) – Today, Representative John Conyers, Jr. (D-MI) sent a letter to Michigan Attorney General Bill Schutte encouraging him to reject a proposed nationwide settlement between state attorneys general and the Nation’s five largest banks concerning possible fraudulent mortgage origination and servicing practices detrimental to homeowners across the country.  The deadline for the attorneys general to accept the terms of the settlement on behalf of the states is this Monday. 

 

February 3, 2012

 

The Honorable Bill Schutte

Office of the Attorney General 

G. Mennen Williams Building, 7th Floor

525 W. Ottawa St.

P.O. Box 30212

Lansing, MI 48909

 

Dear Attorney General Schutte:

 

I am writing to strongly encourage you to reject the proposed settlement between state attorneys general and the Nation’s five largest banks – Bank of America, JPMorgan Chase, Citibank, Wells Fargo, and Ally Financial – on the grounds that the settlement inadequately addresses the harm they caused to Michigan homeowners through illegal and fraudulent mortgage origination and servicing practices. 

 

Although the actual details of this settlement have yet to be publically disclosed, news reports suggest that the tentative agreement’s terms would only involve $25 billion in total compensation, of which only $17 billion would go towards loan modifications for homeowners.  This is a paltry sum when compared to the scope of the foreclosure crisis in our state.  Over 35 percent of all homeowners in Michigan owe more on their mortgages than their homes are worth.  The settlement would have to provide over $19 billion in relief to Michigan homeowners alone.  This settlement does not provide enough funds to cover damages for our state, let alone the entire country.

 

I also find it troubling that under the proposal, banks may receive greater credit for assisting homeowners when they modify the mortgages of borrowers who owe less than 175 percent of the value of their homes.  These incentives discourage banks from assisting borrowers who are severely underwater – the very people hit the hardest by the illegal behavior the settlement aims to rectify.  Furthermore, in exchange for this onetime payment to homeowners, the proposed settlement would likely release the five banks from liability on the origination and servicing of trillions of mortgages.  This could prevent the state from collecting hundreds of billions of dollars in possible compensation owed to homeowners devastated by the foreclosure crisis. 

 

Moreover, I find it surprising that top law enforcement officials across the country would even consider agreeing to such broad waiver of liability after being presented with clear evidence of widespread fraud.  For example, Delaware Attorney General Beau Biden has stated that a cursory examination of foreclosures in his state showed banks lacked the proper legal paperwork necessary to legally foreclose on a house in one out of four foreclosure proceedings. 

 

This proposed settlement may not do enough to stop ongoing origination and servicing fraud.  According to a Reuters article from February 1, the settlement proposes that state banking regulators take the lead in enforcing the settlement, with North Carolina’s banking commissioner playing a lead role.  But state regulators have an even worse track record than federal regulators when it comes to holding banks accountable.  According to a recent study by the National Bureau of Economic Research:

 

Federal regulators are significantly less lenient, downgrading supervisory ratings about twice as frequently as state supervisors. Under federal regulators, banks report higher nonperforming loans, more delinquent loans, higher regulatory capital ratios, and lower [return on assets].  There is a higher frequency of bank failures and problem-bank rates in states with more lenient supervision relative to the federal benchmark.

 

As long as fraud is pervasive and ongoing, we should not entrust the future well-being of Michigan’s homeowners to state bank commissioners who have historically lacked the will and capacity to police these powerful financial entities. 

 

For all of the above reasons, I believe this proposed settlement will result in nothing more than another bailout for big banks.  A settlement that fails to provide just compensation for hundreds of thousands of Michigan homeowners is not an agreement worth considering.  I ask for full and fair consideration of the concerns expressed in this letter, consistent with applicable law, rules, and regulations. 

 

Sincerely,

 Congressman John Conyers, Jr.

 MEMBER OF CONGRESS

###

[ipaper docId=80666549 access_key=key-2niztqu6p1l3jpcl50g8 height=600 width=600 /]

source: http://conyers.house.gov

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



Posted in STOP FORECLOSURE FRAUDComments (0)

AN OPEN LETTER TO MICHIGAN AG BILL SCHUETTE FROM REG. Of DEEDS CURTIS HERTEL JR.

AN OPEN LETTER TO MICHIGAN AG BILL SCHUETTE FROM REG. Of DEEDS CURTIS HERTEL JR.


Via The American Independent -

AN OPEN LETTER TO BILL SCHUETTE

The Honorable Bill Schuette
Attorney General of Michigan

Mr. Schuette –

I have the utmost respect for you and your office, and I wish to commend your hard work
on the recent mortgage robo-signing crisis. The challenges we have faced in Michigan
concerning property fraud have been unlike anything we have ever seen before, and you
have been actively engaged in this fight with myself and the other Michigan Registers of
Deeds.

As you know, the deadline for Michigan to sign on to the 50-state mortgage fraud
settlement is February 3rd. I recognize that this is a difficult decision, and that there
are many factors to consider.

I am writing to ask that you stand firm, and refuse to add Michigan to any settlement
that would give criminal immunity to the defendants. Our ongoing investigations have
demonstrated that the major banks in this settlement, and their hired document mills,
were engaged in the practice of robo-signing. Hundreds of residents here in Ingham
County, and thousands of residents across the state, were illegally foreclosed upon
because of this practice.

These illegalities have stolen due process from our own citizens, and robbed them of
precious time that could have been used to recover and resume their mortgages, or obtain
a modification. A family who is facing a foreclosure is already vulnerable; this
practice insured that they could not possibly reclaim their home.

We have even received information in recent days that shows LPS, a document mill included
in the proposed settlement, specifically requested to have this criminal investigation
converted to a civil lawsuit. It seems clear that they are aware of their vulnerability
to these charges, and are attempting to save their company’s stock price by avoiding
responsibility.

All I am asking is that we treat the banks in the same way we would treat our own
citizens. If a person in Michigan were to commit fraud and forgery, and use these
practices to take someone’s property, that person would go to jail. I respectfully
request that we leave that same possibility open for the banks and corporations that have
committed those same crimes here in our state.

Sincerely,
Curtis Hertel
Ingham County Register of Deeds

[ipaper docId=80054585 access_key=key-1l4oxuea14k3mh7la6yn height=600 width=600 /]

 

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



Posted in STOP FORECLOSURE FRAUDComments (0)

Internal FL AG’s Office Emails Show “Secret” Discussions About LPS & DOCX

Internal FL AG’s Office Emails Show “Secret” Discussions About LPS & DOCX


A few email discussions of the FL AG’s office that show what went on behind closed doors. Go thru them and thanks to Foreclosure Hamlet for these gems.

Please click on the links below.

 

[M-Hamilton-to-LPS]

[V-Butler-to-LPS]

[B-Julian-to-LPS-1]

[B-Julian-to-LPS-2]

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



Posted in STOP FORECLOSURE FRAUDComments (0)

Michigan Attorney General Subpoenas Three Mortgage Processors in Probe (LPS, FNF, CT CORP. SYSTEMS)

Michigan Attorney General Subpoenas Three Mortgage Processors in Probe (LPS, FNF, CT CORP. SYSTEMS)


BLOOMBERG:

The Michigan attorney general’s office subpoenaed three mortgage processors including Lender Processing Services as part of a state probe of robo-signing.

Michigan Attorney General Bill Schuette said his office serviced Lender Processing, Fidelity National Financial Inc. (FNF) and CT Corporation System with investigative subpoenas as affiliates of DocX, a mortgage service support provider. The attorney general said he is seeking information about documents signed by DocX employees as “Linda Green.”

The subpoenas are part of a criminal investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices, Schuette’s said in a statement today. The subpoenas were approved by the state court in Lansing June 13 and require responses by June 30, Schuette said.

Continue reading [BLOOMBERG]

PRESS RELEASE:

Schuette Issues Subpoenas in Criminal Probe of Mortgage Processors

Contact:  John Sellek or Joy Yearout 517-373-8060
Agency: Attorney General

LANSING- Michigan Attorney General Bill Schuette today announced that he has issued criminal investigative subpoenas against national mortgage servicing support providers in an expansion of his office’s investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the current foreclosure crisis.

“Allegations of forged mortgage documents are very serious and require a thorough investigation,” said Schuette.  “I will continue to work closely with federal and local authorities to find answers on behalf of Michigan homeowners.”

The Attorney General is empowered to pursue criminal investigative subpoenas under the Code of Criminal Procedure (MCL 767A.2(2)).  Schuette’s office has filed criminal investigative subpoenas against DocX, which provides mortgage support services, including creating, processing or recording mortgage assignments or other mortgage documentation.  In addition to DocX, the following companies affiliated with DocX were served with investigative subpoenas by Schuette’s office:

·         Lender Processing Services, Inc.;

·         Fidelity National Financial, Inc.; and

·         CT Corporation System.

Schuette’s office has requested documents regarding the mortgage processing companies’ operations in relation to foreclosure and/or bankruptcy-related document processing.  The subpoenas were approved by the 54B District Court in Ingham County on Monday, June 13, 2011, and the information must be provided to the Attorney General’s Office on or before June 30, 2011.

In April 2011, Schuette launched an investigation after county officials across the state reported that they suspected Assignment of Mortgage documents filed in their offices may have been forged.  A recent “60 Minutes” news broadcast had shown that the name “Linda Green” was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting.  County officials in Michigan reviewed their files and found similar documents, thus raising questions about the authenticity of the documents filed.

Schuette is investigating whether certain mortgage processing companies permitted such robosigning of legal documents filed in connection with Michigan foreclosures.  Apart from the question of whether falsified signatures were used, robosigning may also involve individuals signing affidavits to signify that mortgage documentation was properly prepared without ever conducting a proper review of the documents.  Although Michigan is a non-judicial foreclosure state, Schuette is reviewing whether robosigned documents may have been filed with courts in limited cases.

Schuette urges any current or former employees of mortgage servicers or processing companies with knowledge of unlawful practices related to mortgage servicing or the execution of documents in Michigan to call the Attorney General’s Corporate Oversight Division at (517) 373-1160 (517) 373-1160 .

Schuette is also continuing to work with fellow attorneys general in a national workgroup examining mortgage lending practices, including the robosigning issue and consumer protection concerns affecting homeowners nationwide.

Schuette reminds Michigan homeowners that citizens do not need to pay to speak with their lender or servicer or to obtain outside assistance with foreclosure issues.  Free local assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432 (866) 946-7432.

-30

source: http://www.michigan.gov

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



Posted in STOP FORECLOSURE FRAUDComments (11)


GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Chip Parker, www.jaxlawcenter.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com
Advertise your business on StopForeclosureFraud.com

Archives