American Banker-

What do an insurance agent in Tennessee, a homemaker in Ohio, a private investigator from Wisconsin and a helicopter stunt pilot in Hollywood have in common?  Well, for one thing, they’ve all participated in some fashion in “Foreclosure Diaries,” the documentary that my company, Pacific Street Films, has been producing, in fits and starts, since 2006.

When work first started on the film, the original tag was “Follow the Money,” and the road seemed to lead towards a dark and confusing destination. There was all this talk in the industry about scads of money to be made in servicing “subprime” loans.  There were seminars, conferences, it seemed all the rage. 

[AMERICAN BANKER]

image: macgasm.net

I don’t know about you, but doesn’t it seem that every player who sold subprime loans knew exactly what they were selling? Fraud?

Like everything else this will NOT lead to any criminal charges. Same old dance.

iWATCH News-

Federal authorities are investigating possible fraud at General Electric Co.’s former subprime mortgage arm amid increased public pressure to hold Wall Street accountable for its role in the financial crisis.

The FBI and the U.S. Justice Department are looking into potentially criminal business practices at Burbank, Calif.-based WMC Mortgage Corp. during the home-loan boom, according to four people with knowledge of the investigation. They declined to be identified because of the sensitivity of the investigation.

[iWATCH NEWS]

NY Times–

YOU’D think the mortgage bust would qualify as a teachable moment.

But some people refuse to learn from mistakes — a list that apparently includes certain mortgage bankers. Their industry is fighting a new rule that might prevent a repeat of the lending binge that helped drive our economy off a cliff.

In case you just arrived from another planet: America’s mortgage mania was fueled by home loans with poisonous features that made them virtually impossible to repay. It was fun while it lasted, at least for the financial types who profited by making dubious loans and selling them to investors.

[NEW YORK TIMES]

via pacfilm

Segment from an actual call, recorded on October 20, 2008, between a homeowner and a lawyer, Heather Johnson, of the notorious foreclosure mill, Steven J Baum, representing Litton Loan Servicing. Mr.Christopher Wyatt, part of Litton’s “Executive Resolution Team,” begged out of the call when told it would be filmed an recorded. Loan modifications were offered on a take-it-or leave it basis; however requests for follow-up documentation were ignored. This same lawyer then signed off on a foreclosure, nearly ten months later, initiated by the trustee, Wells Fargo, on behalf of the securitized pool holding the homeowner’s mortgage. The “foreclosure mill” law firm, in this case, Steven J Baum, was specifically cited in a New York Times article about NY State Supreme Court Judge Arthur M Shack on August 31st, 2009, and has engendered criticism for its faulty filing practices. The firm has done extensive work for Litton Loan and its host of robo-signers, including Marti Noriega (who also does double duty for MERS). Hedge Fund Tailwind Capital has a hefty investment in this foreclosure mill. Guess they figured that throwing families out of their homes had a financial upside. Now, the Steven J Baum firm believes that any attempt to make them produce evidence is, simply, a “fishing expedition.” Why? Because actually producing evidence would be enough to get them and their clients thrown in the proverbial shitcan (judicial or otherwise). This call will become part of Pacific Street’s upcoming feature documentary, FORECLOSURE DIARIES.