MERSCORP - FORECLOSURE FRAUD - Page 2

Tag Archive | "MERSCORP"

NYT: The Banks Win, Again

NYT: The Banks Win, Again


Excellent view from this NYT’s editorial piece.

NYT-

Last week was a big one for the banks. On Monday, the foreclosure settlement between the big banks and federal and state officials was filed in federal court, and it is now awaiting a judge’s all-but-certain approval. On Tuesday, the Federal Reserve announced the much-anticipated results of the latest round of bank stress tests.

How did the banks do on both? Pretty well, thank you — and better than homeowners and American taxpayers.

That is not only unfair, given banks’ huge culpability in the mortgage bubble and financial meltdown. It also means that homeowners and the economy still need more relief, and that the banks, without more meaningful punishment, will not be deterred from the next round of misbehavior.

[NEW YORK TIMES]

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Abigail Field: Turns out the Mortgage Deal Is Still Not Done

Abigail Field: Turns out the Mortgage Deal Is Still Not Done


Abigail Field-

Q: When is a deal not a deal?

A: When the deal documents punt on contentious issues, merely agreeing to agree later. 

Sadly, that’s what this “deal” does. This “deal” is a hybrid contract and term sheet, with all the crucial, operational aspects of compliance unresolved. A smallish to-be-dealt-with-later item is the timing for implementing the servicing standards. The biggie is the Work Plans; those have not been negotiated at all.

Yes, part of compliance has been finalized; the metrics, and the basic enforcement structure. But it’s not enough to have metrics; you also need processes for gathering the metric data and computing the results. Similarly you need more than a structure for enforcement; you need how-to details. The not-yet-existing Work Plan will cover all that. Worse, the negotiations will happen while the clock is ticking on the deal.

Servicing Standards Take Effect On a Date TBD

When the deal is approved

[REALITY FIELD]

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L. Randall Wray: Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

L. Randall Wray: Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers


HuffPo-

No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:

  1. Bankers make NINJA loans, securitize them, and sell on to government GSEs
  2. Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street
  3. GSEs sue bankers and force them to take back bad mortgages
  4. Bankers sell servicing rights for the same bad mortgages back to GSEs, who overpay
  5. GSEs resell servicing rights to companies run by former GSE officials
  6. Bankers slapped on wrist with puny foreclosure settlement in return for government promise it will never sue them for past foreclosure fraud
  7. Government stress test claims banks are healthy
  8. Bankers get sweet deal, counting mortgage mods for best borrowers toward the settlement
  9. HUD report released demonstrating massive foreclosure fraud that reached to highest levels of banks
  10. Vampire Squid Executive Director fires off resignation letter decrying bankster culture
  11. Banksters walk away scott-free as statute of limitations runs out for criminal behavior

This would have to be a fantasy because no one would ever believe it could have been true...

[HUFFINGTON POST]

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Barofsky & Stoller: Don’t Believe Hype About $25B Mortgage Settlement

Barofsky & Stoller: Don’t Believe Hype About $25B Mortgage Settlement


by on Mar 15, 2012

March 15 (Bloomberg Law) — The $25 billion mortgage settlement between lenders and state attorneys general won’t help nearly as many people as its touted to, Neil Barofsky, the former Special US Treasury Department Inspector General for the Troubled Asset Relief Program (TARP), tells Bloomberg Law’s Lee Pacchia. He’s joined by Matthew Stoller, a fellow at the Roosevelt Insitute, who says the government and banks delayed filing details of the settlement to give investors less time to challenge the deal in court.

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Matt Stoller: Robosigning Still Going on at Wells Fargo, Reports HUD Inspector General

Matt Stoller: Robosigning Still Going on at Wells Fargo, Reports HUD Inspector General


Naked Capitalism-

I’ve been going over the mortgage settlement documents over the past few days – a lot has been released, with many implications.  There is plenty to criticize.  Subprime Shakeout has a great summary, and David Dayen has done a wonderful job going through the nitty gritty.  Abigail Field has a spectacular review of the problems with the servicing standards.  I’ll make a few criticisms of my own below.  But I think the most interesting parts of the document release were the HUD Inspector General reports on the five banks and the DOJ complaint.  What these prove is what we’ve always known – the law enforcement community knew exactly what these banks were doing.  DOJ simply chose not to prosecute.  There was intent to defraud, fraud, and frankly, according to HUD.

In fact, it’s not clear that the past tense is the correct tense to use.  The Wells Fargo report is particularly interesting on that last point.  Take it away, HUD OIG (italics are mine).

At the time of our review, affidavits continued to be processed by these same signers, who may not have been qualified, and these signers may not have adequately verified certain figures because they accessed a computer screen of data showing a compilation of figures instead of verifying the data against the information through review of the books and records kept in the regular course of business by the institution.

I’m sorry, but WHAT THE $&*@!?!?

[NAKED CAPITALISM]

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DE, MA & NY resolve some claims in MERS suits

DE, MA & NY resolve some claims in MERS suits


HW-

The nation’s five biggest banks will pay $25 million to the New York attorney general’s office to settle certain claims related to the use of Mortgage Electronic Registration Systems.

The agreement with New York Attorney General Eric Schneiderman releases Bank of America ($8.84 0.35), Citigroup ($35.21 -1.24), JPMorgan Chase ($43.58 0.19), Wells Fargo ($33.37 0.04) and Ally Financial from certain claims of robo-signing foreclosure documents.

Schneiderman sued Bank of America, JPMorgan and Wells Fargo, as well as MERS, in early February. The AG’s office said in the complaint the banks “created the MERS system as an end-run around the property-recording system.”

MERS is not involved in the agreement, and a company spokeswoman declined to comment.

Continue to read up on DE & MA … [HOUSING WIRE]

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HUD: Bank Of America Notary went from 60 Documents to 20,000 per day

HUD: Bank Of America Notary went from 60 Documents to 20,000 per day


HUD OIG Report | Bank of America Corporation Foreclosure and Claims Process Review


[ipaper docId=85365683 access_key=key-1fsf4lmx3b4vkbct4k9u height=600 width=600 /]

 

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HUD: CitiMortgage Notaries did not witness signatures, Attorneys may have improperly prepared documents

HUD: CitiMortgage Notaries did not witness signatures, Attorneys may have improperly prepared documents


HUD OIG Report | CitiMortgage, Inc. Foreclosure and Claims Process Review


[ipaper docId=85365712 access_key=key-csoceh86p97oisriqb8 height=600 width=600 /]

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HUD reviewed amounts in 36 Chase foreclosure affidavits; b/c Chase’s records are bad, HUD could validate only 1.

HUD reviewed amounts in 36 Chase foreclosure affidavits; b/c Chase’s records are bad, HUD could validate only 1.


HUD OIG | JPMorgan Chase Bank N.A. Foreclosure and Claims Process Review

[ipaper docId=85365666 access_key=key-2m8ptqj3wnff14pctchr height=600 width=600 /]

 

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HUD: Wells Fargo “upper management” knew it was committing foreclosure fraud and didn’t care.

HUD: Wells Fargo “upper management” knew it was committing foreclosure fraud and didn’t care.


HUD OIG Report | Wells Fargo Bank Foreclosure and Claims Process Review

Thanks to Abigail Field for pointing these out for us.

See PP 6 & 7

[ipaper docId=85365649 access_key=key-14bo0rfvr6w2x133nzra height=600 width=600 /]

 

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Ally bank employees took the 5th (as is their right) rather than cooperate with HUD:

Ally bank employees took the 5th (as is their right) rather than cooperate with HUD:


HUD OIG Report | Ally (GMAC) Financial, Incorporated Foreclosure and Claims Process Review

[ipaper docId=85368972 access_key=key-1puwleudzt8nhu1xxr11 height=600 width=600 /]

 

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Auditor Finds Widespread Failures in Bank Foreclosure Practices

Auditor Finds Widespread Failures in Bank Foreclosure Practices


Does anyone know the judge that is going to look over this case? If so, please forward their name or post in the comment section.

Business Week-

An audit of foreclosure practices at the Federal Housing Administration’s five largest mortgage servicers uncovered widespread failures to ensure the banks had proper legal documents.

According to reports released today by the inspector general of the Department of Housing and Urban Development, banks including Bank of America Corp. and Wells Fargo & Co. (WFC) violated the federal False Claims Act when they improperly foreclosed on homes insured by the FHA.

The audits, spurred by revelations in 2010 that mortgage servicers were seizing homes using improper paperwork, were forwarded to the Department of Justice last year. They formed part of the basis for a $25 billion settlement with five banks filed in U.S. court in Washington yesterday.

“I believe the reports we just released will leave the reader asking one question: How could so many people have participated in this conduct?” the inspector general, David Montoya, said in a statement accompanying the reports. “The answer: simple greed.’”

[BUSINESS WEEK]

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Mortgage Settlement That Divided Democrats May Have Burned Eric Schneiderman’s Bridges

Mortgage Settlement That Divided Democrats May Have Burned Eric Schneiderman’s Bridges


HuffPO-

Top law enforcement officers from most of the 50 states gathered last week in Washington, D.C., for the annual spring meeting of state attorneys general, where the hot topic was the $25 billion foreclosure settlement finally filed in federal court on Monday.

More than a dozen state and federal officials who crafted the deal, which resolves charges that banks wrongfully foreclosed on homeowners, say it is the most ambitious of its kind ever reached, far outstripping the complexity and political machinations of the decade-old case against the giant tobacco companies.

But instead of high-fives and fist-bumps, officials, who had sniped at each other — and at the deal — for the better part of a year, tried to come to grips with the aftermath. The deal had to overcome disagreements between the banks and government officials, and between liberal Democrats and Tea Party-backed Republicans.

“It was like the Battle of Verdun, every square inch was fought over,” said George Jepsen, the Connecticut attorney general, of the 16 months of negotiations between federal officials, state attorneys general and five major financial institutions — Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial (formerly GMAC) — over the foreclosures and a host of other nasty “servicing” abuses.

[HUFFINGTON POST]

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New York AG settles part of the MERS lawsuit With 5 Banks

New York AG settles part of the MERS lawsuit With 5 Banks


Wall Street Journal-

Five of the nation’s biggest banks have agreed to pay New York a total of $25 million to settle claims brought by New York State Attorney General Eric Schneiderman regarding their use of a private national mortgage electronic system.

The agreement, filed in federal court Tuesday, resolves certain monetary claims by the New York attorney general against Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.

The agreement preserves the New York attorney general’s right to sue for damages suffered by consumers …

[WALL STREET JOURNAL]

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Guilford County, NC vs LPS/DocX, MERSCORP, MERS, Inc. et al

Guilford County, NC vs LPS/DocX, MERSCORP, MERS, Inc. et al


STATE OF NORTH CAROLINA

IN THE GENERAL COURT OF JUSTICE
SUPERIOR COURT DIVISION

COUNTY OF GUILFORD

GUILFORD COUNTY, ex rel. JEFF L.
THIGPEN, GUILFORD COUNTY
REGISTER OF DEEDS,
Plaintiff,

v.

LENDER PROCESSING SERVICES, INC.;
DOCX, LLC; LPS DEFAULT SOLUTIONS,
INC.; MERSCORP HOLDINGS, INC.;
MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS, INC.; WELLS
FARGO BANK, N.A.; WELLS FARGO
HOME MORTGAGE, INC.; BANK OF
AMERICA, N.A.; JPMORGAN CHASE
BANK, N.A.; CHASE HOME FINANCE
LLC; EMC MORTGAGE CORPORATION;
MIDFIRST BANK; SAND CANYON
CORPORATION; CITI RESIDENTIAL
LENDING, INC.; GREEN TREE
SERVICING, LLC; AMERIQUEST
MORTGAGE COMPANY; USAA
FEDERAL SAVINGS BANK; AMERICAN
HOME MORTGAGE SERVICING, INC.;
MOREQUITY, INC.; U.S. BANK
NATIONAL ASSOCIATION;
EQUICREDIT CORPORATION OF
AMERICA; NATIONSCREDIT
FINANCIAL SERVICES CORP.; ARGENT
MORTGAGE COMPANY, LLC; THE
BANK OF NEW YORK MELLON; THE
BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.; CAPITAL ONE, N.A.;
FIRST FRANKLIN FINANCIAL CORP.;
NAVY FEDERAL CREDIT UNION; and
WEICHERT FINANCIAL SERVICES;
Defendants.

[ipaper docId=85235617 access_key=key-1g5fk84g1cy0nyzvnllk height=600 width=600 /]

 

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Guilford County, NC Sues To Clean Up Banks’ “Mess” at the Register of Deeds

Guilford County, NC Sues To Clean Up Banks’ “Mess” at the Register of Deeds


For Immediate Release: March 13, 2012
Contact: Ginger Cavanaugh (704) 246-3896
ginger@talcottfranklin.com

Guilford County Sues To Clean Up Banks’ “Mess” at the Register of Deeds

 

Guilford County, ex rel. Jeff L. Thigpen, Guilford County Register of Deeds, filed suit today against LPS/DocX, MERSCORP, MERS, Inc., and numerous banks, loan servicers, and foreclosure specialists seeking to clean up the “mess” Defendants created in the County’s property records registry.

“Our office uncovered an abundance of falsified, forged, and fraudulently executed mortgage documents,” said Thigpen. “But our investigation only found the tip of the iceberg. We need the banks to clean up their mess.”

The suit cites as evidence, Thigpen’s identification of over 6,100 mortgage documents (4,519 of those by DocX) which were filed with the Register of Deeds and signed in the names of known robo-signer aliases: “Linda Green,” “Christie Baldwin,” “Pat Kingston,” “Korell Harp,” “Jessica Ohde,” “Rita Knowles,” “Linda Thoresen,” and “Brent Bagley.”

“How can we maintain accurate records of title with fraudulent documents? The banks are also maintaining their own private registry called ‘MERS’ that prevents the public from discovering who owns what loans. Because there is no accountability for MERS, its records are also a mess,” said Thigpen. “The system is broken and it needs to be fixed. We’re telling MERS and the banks: you broke it, you fix it.”

In an April 6, 2011 letter, Thigpen and Southern Essex (MA) District Registry of Deeds John O’Brien urged Iowa Attorney General Tom Miller to investigate MERS and its impact on Registers of Deeds as part of the national attorneys general robo-signing investigation. The suit cites numerous reasons why MERS fails to keep reliable chains of title, and notes that the recent attorneys general settlement did not address MERS’s and robo-signing’s impact on Registers of Deeds.

“When you combine the fraudulent documents with MERS, it is difficult if not impossible to trace title for property. Potential title defects hurt Guilford County homeowners and businesses by impacting property values,” said Thigpen. “We need to clean up chains of title to ensure certainty in the land records system.”

Under Thigpen, the Guilford County Register of Deeds strives to serve as a model register. The Register of Deeds implemented electronic filing, created an audit software program to improve indexing and correct filing errors, intensified staff training, redacted social security numbers from land records, and significantly upgraded technology.

In 2009, the Register of Deeds received a Local Government Federal Credit Union Productivity Award from the North Carolina Association of County Commissioners for technological innovations.

“It is unbelievably frustrating to expend County resources in an attempt to create an efficient, accurate registry and have these banks wreak havoc on our efforts through fraudulent documents and a secret registry. If we don’t fix this now, the future impact on land records and property values could be severe and incurable.”

“Registries of deeds pre-date the founding of this country and are essential functions of government,” said Guilford County Attorney Mark Payne. “The Guilford County

Register of Deeds has created an outstanding infrastructure, but no registry can work if it is filled with falsified documents.”

The lawsuit, filed by Payne and Deputy County Attorney Matthew Turcola, describes the process by which the Defendants made and sold loans, created and maintained MERS, filed robo-signed documents, and damaged the Register of Deeds and the people of Guilford County. Among other things, the suit seeks the appointment of a special master to oversee an audit of the mortgage documents on file at the Register of Deeds and make necessary corrections.

“While the suit goes into detail on a complex series of transactions, the message is pretty simple,” said Payne. “We’re saying to the banks: ‘You made the mess, you clean it up.’”

Guilford County is located in central North Carolina. Its population is approximately 500,000. Greensboro is the largest city within Guilford County. Guilford County was established in 1771, the same year it began its Registry of Deeds. To assist with the suit, Guilford County retained Talcott Franklin P.C., the nation’s preeminent securitization litigation law firm. Talcott Franklin P.C. has offices in Dallas, Texas and Davidson, North Carolina.
Links:

http://www.restorepublicrecords.com (For copies of the Complaint and associated materials).

[ipaper docId=85235617 access_key=key-1g5fk84g1cy0nyzvnllk height=600 width=600 /]

 

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MBS investors: HUD Secretary let us down in national deal

MBS investors: HUD Secretary let us down in national deal


Alison Frankel-

In a conference call on Feb. 14, Secretary Shaun Donovan of the Department of Housing and Urban Development promised about 90 mortgage-backed bondholders that the $25 billion national mortgage settlement would include a 15 percent cap on the number of investor-owned loans that the five settling banks would be permitted to modify, according to the three participants in the call.

Donovan made the promise in response to MBS investor concerns that banks would shift the cost of the settlement onto their shoulders by writing down the principal in securitized mortgages, rather than in the loans banks hold in their own portfolios. He had already said in a press conference that the settlement would provide incentives for the settling banks — Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial — to reduce the principal in their own portfolio loans, estimating that “a relatively small share, in the range of 15 percent” of the write-downs would be in investor-owned mortgages. In the Feb. 14 call with bondholders, according to the three participants, Donovan went a step farther, assuring MBS investors that the written settlement agreement would limit the percentage of investor-owned loans the banks were permitted to modify.

[REUTERS LEGAL]

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Watchdog says banks impeded foreclosure inquiry; One notary said the daily volume of documents had increased from 60, to 200, to 20,000.

Watchdog says banks impeded foreclosure inquiry; One notary said the daily volume of documents had increased from 60, to 200, to 20,000.


Best way to rob a bank is to own one – William Black


Reuters-

Top banks impeded a federal inquiry into their foreclosure processes, according to a report released Tuesday, dragging their feet on turning over documents and blocking investigators’ attempts to interview bank employees.

The inquiry led to the wide-ranging $25 billion mortgage settlement with the five largest mortgage servicers that was announced last month and filed in federal court on Monday.

But the banks hampered an early investigation into whether they were pursuing unlawful foreclosures through shoddy paperwork and lax controls, the inspector general’s office at the U.S. Department of Housing and Urban Development said in its report.

Bank of America (BAC.N), for example, provided only excerpts of files, incomplete documents, and conflicting information to government investigators, and refused to provide some of its foreclosure policies.

It also limited employee interviews, and refused to let employees answer certain questions, the report said.

[REUTERS]

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HUD OIG Audits re: Alleged False Claims Act Violations

HUD OIG Audits re: Alleged False Claims Act Violations


As Abigail Field says “I thought the indictment that led to the far-too-weak settlement was damning enough;” check out the HUD OIG reports:

Audit Reports

The following reports disclose conditions noted during the identified audit period. They do not necessarily reflect current conditions at the subject auditee. Any questions regarding the current status of corrective actions recommended in these reports should be directed to the report addressee.

 FEATURED

To save time we have provided these quick access links to the recently featured Audit Memorandums. You can also find all memorandums in their respective state sections with summaries.

Issue Date: March 12, 2012
Audit Memorandum No. 2012-KC-1801

Title: CitiMortgage, Inc. Foreclosure and Claims Process Review O’Fallon, MO


Issue Date: March 12, 2012
Audit Memorandum No. 2012-PH-1801

Title: Ally Financial, Incorporated Foreclosure and Claims Process Review Fort Washington, PA


Issue Date: March 12, 2012
Audit Memorandum No. 2012-CH-1801

Title: JPMorgan Chase Bank N.A. Foreclosure and Claims Process Review Columbus, OH


Issue Date: March 12, 2012
Audit Memorandum No. 2012-FW-1802

Title: Bank of America Corporation, Foreclosure and Claims Process Review Charlotte, NC


Issue Date: March 12, 2012
Audit Memorandum No. 2012-AT-1801

Title: Wells Fargo Bank, Foreclosure and Claims Process Review, Fort Mill, SC


For press releases and other OIG news-related information, please contact:

Kathleen A. Hatcher
Director, External Affairs Division

HUD – Office of Inspector General

Phone: (202) 402-8323
Fax: (202) 708-4837
Email:  khatcher@hudoig.gov
Mail: HUD OIG External Affairs Division
         451  7th St. S.W. Room 8254
         Washington, D.C. 20410

Source: http://www.hudoig.gov

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Servicing settlement means more oversight of foreclosure law firms

Servicing settlement means more oversight of foreclosure law firms


Housing Wire-

The $25 billion mortgage servicing settlement means more due diligence work for servicers when assessing the work of law firms and other third parties assisting with foreclosures and bankruptcies.

The national mortgage servicer settlement involving the nation’s top five mortgage servicers shows firms taxed with ensuring that all law firms, trustees, subservicers and other third parties handling foreclosure or mortgage servicing activities are in line with best practices outlined in the settlement agreement.

The settlement, agreed to in February, was officially filed with the court on Monday.

Servicers are required to survey the firm’s qualifications, practices, information security for document handling and financial viability, according to settlement documents.

[HOUSING WIRE]

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Isaac Gradman: My Take On Newly Filed AG Foreclosure Settlement: As Bad As We Thought It Was

Isaac Gradman: My Take On Newly Filed AG Foreclosure Settlement: As Bad As We Thought It Was


Enjoy the perfect clip for this fiasco!~

Subprime Shakeout-

This famous postgame rant from former Arizona Cardinals coach Denny Green after his team’s epic meltdown on Monday Night Football against the Bears could just as easily apply to my reaction to reading the official terms of the Attorney General Foreclosure Settlement (the “AGFS”), filed today.  The nation’s largest banks get off with a relatively small penalty (much of it paid by investors or in “credits” for things the banks should already be doing) in return for releases across a broad spectrum of misconduct that pervades just about every dark corner of mortgage servicing.  The categories of servicer misconduct are laid out in detail in the complaint filed today in D.C. Federal Court, and include the following:

  • Providing false or misleading information to borrowers,
  • Overcharging borrowers and investors for services of dubious value,
  • Denying relief to eligible borrowers,
  • Foreclosing on borrowers who were pursuing loan mods in good faith,
  • Submitting forged or fraudulent documents and making false statements in foreclosure and bankruptcy proceedings
  • Losing or destroying promissory notes and deeds of trust,
  • Lying to borrowers about the reasons for denying their loan mods,
  • Signing affidavits without personal knowledge and under false identities,
  • Improperly charging excessive fees related to foreclosures,
  • Foreclosing on servicemembers on active duty,
  • Making false claims to the government for insurance coverage, and
  • Being unorganized, understaffed, and generally slower than molasses to respond to borrowers desperately in need of relief, while servicing fees continue to accrue.

The list goes on and on…

[SUBPRIME SHAKEOUT]

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Read the smoking hot, banks intentionally and thoroughly violated the law complaint: USA vs Foreclosure Fraud

Read the smoking hot, banks intentionally and thoroughly violated the law complaint: USA vs Foreclosure Fraud


Thanks to Abigail for the post title.

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,
555 4th Street, NW
Washington, DC 20530

49 States et al

Plaintiffs.

v.

BANK OF AMERICA CORPORATION,
Corporate Center 100
100 North Tyron Street
Charlotte, North Carolina 28255

BANK OF AMERICA, N.A.,
100 North Tyron Street
Charlotte, North Carolina 28255

BAC HOME LOANS SERVICING, LP f/k/a
COUNTRYWIDE HOME LOANS
SERVICING, LP,
4500 Park Grenada
Calabasas, California 91302-1613

COUNTRYWIDE HOME LOANS, INC.,
4500 Park Grenada )
Calabasas, California 91302

COUNTRYWIDE FINANCIAL CORPORATION,
4500 Park Grenada
Calabasas, California 91302

COUNTRYWIDE MORTGAGE
VENTURES, LLC,
4500 Park Grenada
Calabasas, California 91302-1613

COUNTRYWIDE BANK, FSB,
100 North Tryon Street
Charlotte, NC 282002

CITIGROUP INC.,
399 Park Ave.
New York, New York 10022-4614

CITIBANK, N.A.,
399 Park Ave.
New York, New York 10022-4617

CITIMORTGAGE, INC.,
1000 Technology Drive
O’Fallon, Missouri 63368

J.P. MORGAN CHASE & COMPANY,
270 Park Avenue
New York, New York 10017

JPMORGAN CHASE BANK, N.A.
1111 Polaris Parkway
Columbus, OH 43240

RESIDENTIAL CAPITAL, LLC,
1100 Virginia Drive
Fort Washington, Pennsylvania 19034

ALLY FINANCIAL, INC.,
200 Renaissance Center
P.O. Box 200
Detroit, Michigan 48265

GMAC MORTGAGE, LLC,
1100 Virginia Drive
Fort Washington, Pennsylvania 19034

GMAC RESIDENTIAL FUNDING CO. LLC
8400 Normandale Lake Boulevard
Minneapolis, Minnesota 55437

WELLS FARGO & COMPANY,
420 Montgomery Street Front
San Francisco, CA 94104-1205

WELLS FARGO BANK, N.A.,
One Home Campus
Des Moines, IA 50328

Defendants.
________________________________________________)

EXCERPT:

57. In the course of their conduct, management and oversight of loan
modifications in the plaintiff States, the Banks have engaged in a pattern of unfair
and deceptive practices.

58. The Banks’ failure to discharge their required loan modification
obligations, and related unfair and deceptive practices, include, but are not limited
to, the following:

a. failing to perform proper loan modification underwriting;

b. failing to gather or losing loan modification application
documentation and other paper work;

c. failing to provide adequate staffing to implement programs;

d. failing to adequately train staff responsible for loan
modifications;

e. failing to establish adequate processes for loan
modifications;

f. allowing borrowers to stay in trial modifications for
excessive time periods;

g. wrongfully denying modification applications;

h. failing to respond to borrower inquiries;

i. providing false or misleading information to consumers
while referring loans to foreclosure during the loan modification
application process;

j. providing false or misleading information to consumers
while initiating foreclosures where the borrower was in good faith actively
pursuing a loss mitigation alternative offered by the Bank;

k. providing false or misleading information to consumers
while scheduling and conducting foreclosure sales during the loan
application process and during trial loan modification periods;

l. misrepresenting to borrowers that loss mitigation programs
would provide relief from the initiation of foreclosure or further
foreclosure efforts;

m. failing to provide accurate and timely information to
borrowers who are in need of, and eligible for, loss mitigation services,
including loan modifications;

n. falsely advising borrowers that they must be at least 60
days delinquent in loan payments to qualify for a loan modification;

o. miscalculating borrowers’ eligibility for loan modification
programs and improperly denying loan modification relief to eligible
borrowers;

p. misleading borrowers by representing that loan
modification applications will be handled promptly when Banks regularly
fail to act on loan modifications in a timely manner;

q. failing to properly process borrowers’ applications for loan
modifications, including failing to account for documents submitted by
borrowers and failing to respond to borrowers’ reasonable requests for
information and assistance;

r. failing to assign adequate staff resources with sufficient
training to handle the demand from distressed borrowers; and

s. misleading borrowers by providing false or deceptive
reasons for denial of loan modifications.

3. Wrongful Conduct Related to Foreclosures

[…]

[ipaper docId=85089309 access_key=key-k9a69upx5raxl358sea height=600 width=600 /]

 

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



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