Legal Heat On Robo-Signing Stokes Foreclosure Fiasco

[lastone]

Source: Forbes

Attorneys General of all 50 states have initiated a joint investigation into foreclosure procedures.



Attorneys general from all 50 states have put on a "bi-partisan multistate group" to investigate if faulty procedures were used to sign foreclosures which lead to evictions, as the foreclosure freezes extend with GMAC, one of the largest mortgage providers, deciding to review its procedures at a nationwide level. Bank Of America has already imposed a "freeze" on all of its foreclosures.

"Robo-signing," as the National Association of Attorneys General puts it, occurred when document signings by people in mortgage providing agencies contained procedural defects, such as signing outside of the presence of a notary public or signing without having the knowledge...

Read more: http://www.forbes.com/2010/10/13/foreclosure-investigation-freeze-housing-markets-mortgage.html?boxes=Homepagechannels

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My pet peeve topic, it is killing me to see so many hard working people I know get foreclosed on when they have lost their jobs (due to no fault of their own) while we give tax breaks to companies that have off-shored their jobs and then beg for and receive more tax breaks and bailouts. People are loosing their homes due to incompetence and fraud, and if your not one of these people please take a minute and think about what it'd be like to have your home taken away from you after paying it down for years because the company you worked for thought it best to move to china.

[SemperEadem]

1. they dodged the big federal bullet

only to face the death of a thousand cuts by 50 attorney's general.

this should be good.

[Po_d Mainiac]

2. That is just the start

If the investment banks that sold the securities failed to disclose that they were known to be defective instruments, or that they had prior knowledge that the securities were structured with non-complying loans, the investors and trust funds can demand full compensation.

States' and pension funds that were hosed should be able to get some of the stolen loot back.

[dixiegrrrrl]

3. Speaking of:

The enormous mortgage-bond scandal.

You thought the foreclosure mess was bad? You’re right about that. But it gets so much worse once you start adding in a whole bunch of parallel messes in the world of mortgage bonds. For instance, as Tracy Alloway says, mortgage-bond documentation generally says that if more than a minuscule proportion of notes in a mortgage pool weren’t properly transferred, then the trustee for the bondholders can force the investment bank who put the deal together to repurchase the mortgages. And it’s looking very much as though none of the notes were properly transferred.

But that’s not even the biggest potential problem facing the investment banks who put these deals together. It also turns out that there’s a pretty strong case that they lied to the investors in many if not most of these deals.
http://blogs.reuters.com/felix-salmon/2010/10/13/the-enormous-mortgage-bond-scandal/
*********************************************************************************************

Longish piece rich in detail.

TPTB are trying to label this as a "robo-signing" problem.

without looking into WHY robo-signing would occur.

This is an ECONOMY problem.
This is a JUSTICE problem.
and it is a PROPERTY RIGHTS problem.

[Po_d Mainiac]

4. Exactly!

The title problem will probably a legislative fix, the banksters will pay a fine equal to a days income..It will suck watching the pukes get away with shit that would put everyone else behind bars. Personally I'd rather see the legislative fix after a perp walk through open sewers. But that will never happen.

People like you and I will not have to worry about screwed up titles (The primary on a place that I bought for one of the kids was assigned to WF via MERS, a second went God knows were?)

What will finally put the fucks outa our misery will be the feeding frenzy by the investors in the securities that were fraudulently issued. If they are successful, the next wave will be the stock holders (who will go down with banksters) clawing back the bogus bonuses. I can't see where the banksters will be able to buy the legislative freedom on the fraud counts.

The lobbyist count on each side of that issue should be an even split.
:popcorn:

[dixiegrrrrl]

5. I AM worried about my title.

Found out yesterday only countrywide and of course MERS is on the title that BOA is now the
'securitizer" of , so we pay BOA BUT we know BOA does not NOT have the note, we know that
probably Fannie Mae has the note.
but fannie mae has the mortgages in bond trusts.

So, says the county, ONLY Countrywide can release the note to show the mortgage is paid.

but...(said I)...Countrywide is dead.

County ...*shrugs shoulders*.

so now I find myself rooting for the robo signers and the fake docx people to forge me a paid off note when the time comes.

christ.

[Po_d Mainiac]

7. Your situation truely sucks

Yours is a classic reason that every AG must set up an escrow acct and require each and every payment go into that account. The funds then can not be released until the lien holder is clearly identified and duly recorded as such. The legislative fix covers any gaps in between that were MERS tracked but not recorded.

If liens are missing, a few people might end up with a free house. I expect those cases to be very rare.

That this issue may end up in a 'lame duck' session is terrifying!

[SemperEadem]

8. that is a good idea

I"m hoping that because this has now gone to the state level, that the AG's are not going to be as easily mesmerized by the banksters and their minions like Congress was in DC.

In the end, anyone who was on the receiving end of this bullshit should have their house title handed to them free and clear.

[Po_d Mainiac]

12. Ummm not exactly

In the end, anyone who was on the receiving end of this bullshit should have their house title handed to them free and clear
I wouldn't advocate that, at least on a wholesale basis

I still believe in paying your bills. The issue is establishing a fair and honest value to that bill and to whom it is owed.

First: The title mess need to be cleared. Who owns what and where needs to be recorded and certified in a manner that is open and legal.
Second: The fraudulent securities need to go back to the issuers.
Third: The value of all securitized RE needs to be re-appraised, and the securities issued against the properties,adjusted accordingly. The false values assessed were the result of fraud by the security issuers, they are free to work down the food chain to recoup. They created that food chain in the first place.

These steps will allow the market to clear, eventually. It should also make the investors (retire plans, State trust funds, Insurance trusts etc) as whole as possible. They should also ruin the Banksters, the rating agencies, and those that fed the fraudulent mortgages into the system.

[Waiting For Everyman]

13. Here's an automated way to demand "where's the note?" (by SEIU)

It helps people send a QWR (qualified written request under RESPA). By law, the banks must respond in writing within a short time-frame.

http://action.seiu.org/page/speakout/wheresthenote

[Po_d Mainiac]

10. Finally on CNN..we want our money back!!

http://www.youtube.com/watch?v=1j2esw2B8TI&feature=player_embedded

[Evasporque]

6. But as long as people can be free of socialism and taxes...it's all good....

apparently.

[SemperEadem]

9. I know.. it totally sucks, don't it?

It really boggles the mind the things some people choose to cling to and believe.

[alfredo]

11. The banks are going to take a hit from investors stepping

away from them.

[Po_d Mainiac]

14. The banks will take a fatal hit when the buyers of fraudulent securities demand their money back! n/

[alfredo]

15. We should go "John Galt" on them. We need to be more like the French.

Instead of going after the government we should go after their bosses in the banks and insurance companies. We should shut down everything until we have public funding of all federal and state elections. Bring back the fairness doctrine and expand it to the Internet and cable/satellite.

[Po_d Mainiac]

16. Here’s That Devastating Report On Bank Of America That Everyone Is Talking About Today

Earlier, we wrote about Felix Salmon’s contention that there’s a new mortgage fraud scandal that has the potential to dwarf Goldman’s ABACUS dealings. In this fraud scenario, banks took advantage of their information advantage and sold CDOs with mortgages they knew to be bad without clear representation to investors.

In August, Manal Mehta and Branch Hill Capital put together a presentation targeting Bank of America’s potential exposure to this mortgage fraud, as well as other problems in the mortgage market.

The presentation comes to a pretty damning conclusion: Bank of America’s exposure could nearly halve its share price.

It’s all about what capital Bank of America has in reserve for the scenario of mortgages having to come back on its balance sheet.

http://stopforeclosurefraud.com/2010/10/16/heres-that-devastating-report-on-bank-of-america-that-everyone-is-talking-about-today/

[alfredo]

17. A classic case of being hung by their own Petard.

[Po_d Mainiac]

18. Hung?

That would be using a definition of "petard" I'm unaware of

How about asphyxiated?

Edit to add: appropriate use on this anniversary when Marie got a close-up look at Dr. Guillotine's device.

[alfredo]

19. Hoist is the proper word. The engineer not getting out of

the way or getting caught up in the ropes for the ones that are slung over a wall then getting blown to bits by his own petard.



From "Hamlet"
"For tis the sport to haue the enginer Hoist with his owne petar"

A guillotine cartoon.

[Po_d Mainiac]

20. you win n/t

[alfredo]

21. I take my victories, no matter how small.