I left court the other day after a particularly bruising hearing and thought to myself, “I’m now starting to understand what it must feel like to be a minority.”

Now I’m not going to overstate this, I’m not suggesting that I’ll ever know the full breadth and depth of the horror and inhumanity that is our national history or racism, but the whole experience of walking into an environment where no matter how hard you work, no matter how right you are, the deck is still stacked against you.

I remember years ago someone explained the lasting impact of generations of racism.  It was described as having your legs tied up and hobbled for years, then having the binds removed just before you lined up on the track to start the race.  The gun goes off and the race starts…everyone’s equal right?  Same track, same distance….all the runners are equal, right?  Of course not.  Generations of hobbling make the race inherently unfair.

So I walked into a hostile courtroom and as usual, I had page after page of motion and caselaw highlighted…the facts and law totally on my side.  But after I made my argument…the argument that was totally one sided…..my side….I lost.

I couldn’t believe it.  But then I’ve been there countless times before.

It’s time we all look around us.  At our neighbors, at our co-workers, at the people that are passing us on the street.  We are all different colors. We have dramatically different social, economic, religious and political backgrounds.  But the fact of the matter is, the dyed in the wool lower middle class rebel flag waving pick up truck driver has so much more in common with his inner city, tinted window low riding brother than he has with any of those political leaders that inflame the us v. them divide.

That’s a reality that we all have to start to really consider on a very deep and humanistic level.  When you’re down on your luck, way, way down on your luck…look into the eyes of those around you who are suffering.  Break through the decades of learned divide and separation.  Sit down on the same level and share together the stories of suffering, the sense of betrayal and abuse.  We’re all in this together. Brothers and sisters who must stand together and form unions of mutual protection and support.

I urge you all to search the speeches of Martin Luther King on YouTube.  Just search a few speeches and listen to them in a quiet place.  Listen carefully to the words, the language, the tone and inflection. Breathe in the heart and the soul and the solid as granite resolve in those eyes and those words.  Look at the intensity in the eyes, the passion in the soul.  Carl Jung spoke of the Collective Unconscious, the shared identify of all humanity.  Seek that out as the message behind all of this.

Now, on your way over to Youtube, let me share with you an inspiration I found. My beautiful sister who shared with me her love and joy…

YOU TUBE

LINK HERE

From Abigail Field:

A shocking aspect of the proposed foreclosure fraud settlement among Bailed-Out Banks, the state attorneys general, and the Feds has rightly gotten a lot of attention, namely the Bailed-Out Banks’ ability to use other people’s money to pay their “penalty.” I confess, when I first heard about it, I figured it was a testament to the federal government’s craven capitulation to the Bailed Out Banks. (Let’s call them the B.O.B.s, rhymes with S.O.Bs.) But now I know it’s much worse than that, thanks to excellent reporting by David Dayen. The federal government really wants the B.O.Bs to use pension fund money to pay their “penalty.”

Now, readers know I’m not exactly a Pollyanna, but I feel like one now. See, I thought our federal government understood that the right way to penalize someone with a fine was to actually make them pay the bill. I thought the feds realized the best way to punish the banks was to have them cough up cash into a BP spill-type fund, and have 50 special masters (one per state) use it to pay down mortgages, thereby punishing banks and helping homeowners. I just figured the Feds had rushed things so much, doing essentially no investigation, that they didn’t have the goods to leverage a better deal. But no. The Feds see the banks’ ability to spend firefighters’, teachers’ and cops’ money as a design feature, not a flaw.

ABIGALE FIELD

Attorneys General from all across the country have been under intense pressure by the Obama Administration to accept the terms of the Very Bad Bank Bailout by tomorrow, February 6, 2012.

Word on the street is that there was a conference call scheduled this weekend between all of them to hammer out the details, twist arms, make promises, blackmail and extort.

It is also confirmed that the Obama Administration’s key man i the deal Shawn Donovan, aka Napolean Dynamite had a conference call with activist groups where he explained that the money to pay for the bank bailout bill would come not from the banks but from the investors in the mortgages, which means the 401ks, retirement and investment accounts of little folks like me and you.

HUH? Come again?

Wait just a cotton pickin’ minute here. How can ReTHUGliCON attorney generals like Florida’s Pam Bondi be screaming at other attorney generals like California’s Kamela Harris a Democrat to take a deal that amounts to nothing more than a federal taking of private property with no compensation?

Huh?  Come again?

I checked my “Being a Republican For Dummies” book and being opposed to things like that were covered in the first chapter.  Well, go ahead and read along here folks, cause this is really, really ugly….

In case you had any doubts about what the mortgage settlement was really about and why banks that were so keenly opposed to it are now willing to go ahead, the news of the last two days should settle any doubts.

As we had indicated earlier, one of the many leaks about the settlement showed that there had been a major shift its parameters. Of the $25 billion that has been bandied about as a settlement total for the biggest banks, comparatively little (less than $5 billion) is in cash. The rest comes in the form of credits for principal modifications of mortgages.

Originally, that was originally to come only from mortgages held by banks, meaning they would bear the costs. The fact that this meant that whether a homeowner might benefit would be random (were you one of the lucky ones whose mortgage had not been securitized?) was apparently used as an excuse to morph the deal into a huge win for them: allowing the banks to get credit for modifying mortgages that they don’t own.

The first rule of finance (well, maybe second, “fees are not negotiable” might be number one) is always use other people’s money before your own. So giving the banks permission to modify loans they don’t own guarantees that that is where the overwhelming majority of mortgage modifications will take place, ex those the banks would have done anyhow on their own loans. And the design of the program, that securitized loans will be given only half the credit towards the total, versus 100% for loans the banks own, merely assures that even more damage will be done to investors to pay for the servicers’ misdeeds.

Let me stress: this is a huge bailout for the banks. The settlement amounts to a transfer from retirement accounts (pension funds, 401 (k)s) and insurers to the banks. And without this subsidy, the biggest banks would be in serious trouble

Why? As leading mortgage analyst Laurie Goodman pointed out in a late 2010 presentation, just over half of the private label (non Fannie/Freddie) securitizations have second liens behind them (overwhelmingly home equity lines of credit). Moreover, homes with first liens only have far lower delinquency rates than homes with both first and second liens. Separately, various studies have found that defaults are also correlated with how far underwater a borrower is. If a borrower is too far in negative equity territory, it makes less sense for them to struggle to stay current, no matter how much they love their home.

FROM NAKED CAPITALISM

Some Key Excerpts From The Now Sure to Be Worldly Famous Case No. 5595.  I just got off the phone with Nye and he’s quite amazed at all this…amazed that it took the world so long to wake up to what he’s been screaming about for years.

Like every other whistleblower or advocate who has ever stood up for consumers and the Rule of Law, Nye has been attacked, persecuted, bullied, and yes, attacked again.

Nye has always been a tireless champion for honesty, integrity and the Rule of Law.  Just last week, Nye provided to me the Smoking Gun I needed in a case that I’m taking to trial next week.  He shared with me an affidavit of fraud that is mind blowing.

I’m so glad that this American hero is finally getting the credit he deserves.

I find it most interesting, but not at all surprising, that Pinellas County judges are featured prominently in this report.  Think about it, there are untold tens of thousands of judges all across this country that have presided over millions of foreclosure cases, but a good judge long, long ago in Pinellas County first warned that all of this was going to come back to bite us all in the end.  Some of the best foreclosure scholarship in the entire nation comes out of the thoughtful jurisprudence of Pinellas County.  These judges are tough as nails, and even after all these years and all these motions years after years, they grab each file, and carefully examine each motion and each case, then rule as if each case was the most important one on their crammed docket.

Now, some keys from the report.  Keep in mind here that this is just the tip of the iceberg.  The thing that people won’t get is how those in power keep wanting to ignore all of this…to keep kicking the cow chip down the field. But sooner or later the cow chip breaks apart on your foot.

And now from the report:

Two Florida trial courts recently have criticized MERS for false pleadings in
foreclosure proceedings. Mr. Lavalle apparently approached judges in two Florida counties with
sufficient information to prompt the judges to call extraordinary hearings.

In MERS v. Cabrera, the judge started an extraordinary show cause hearing
regarding nine foreclosure cases by reading portions of inquiries from Mr. Lavalle and his
mother, Ms. Pew.47 MERS counsel was forced to concede that the complaints contained
inaccurate allegations regarding its interests in promissory notes.48 The complaints allege that
MERS is the “holder and owner” of promissory notes when neither is true. This allegation hides
the relationships of the parties who will benefit from the foreclosure and masks a serious legal
issue. The judge was troubled that MERS changed its stance after filing “thousands and
thousands of cases” stating that it owns the note.49

A second judge (who took the time to observe the hearing) criticized MERS for
routinely filing lost note affidavits and counts to reform the promissory notes. It appears the
notes are not lost but lawyers or servicers find it easier and quicker to claim the notes cannot be
found. The judge pointed out the inconsistency of the affidavit to the MERS complaint, asking:
Where is it at the time it is lost in all of these myriad hundreds of cases which alleged that it’s inour possession at the time it was
lost or destroyed?5o

The judge accused MERS of filing “false affidavits” and questioned whether foreclosures should
be allowed to go forward. 51 MERS’ attorney made the concession that “My understanding is lost
note affidavits and lost note counts are routinely filed by mortgagees and note holders … ,,52 He
acknowledged the practice should be “modified.,,53

In an order of dismissal dated September 28,2005, the court dismissed four
foreclosures as a “sham and/or frivolous pleading,” but dismissed them without prejudice so that
the true owners and holders of the notes could file their own foreclosure actions.54
The court also criticized MERS’ practice of certifying servicers’ employees as
certifying officers, saying: “[t]he use of designating employees of the servicer as officers of
MERS in order to circumvent the ‘technical’ requirement of law is transparent.,,55 He called the
practice a “charade.,,56

A judge in the Pinellas County, Florida, circuit court issued an order dismissing
20 MERS foreclosures for essentially the same reasons. Judge Logan noted the false allegations,
stating:

“The standard allegation in the Complaint alleged that … ‘Plaintiff
now owns and holds a mortgage note and mortgage … ‘ The Court
never found that allegation which is contained in all of the MERS
Complaints to be supported by a review of the documents within
the Court file. ,,57

Fannie Mae does not authorize attorneys to represent that MERS holds or owns promissory
notes. The Servicing Guide states “MERS will have no beneficial interest in the mortgage, even
if it is named as the nominee for the beneficiary in the security instrument. ,,58

We conclude that foreclosure attorneys in Florida are routinely filing false
pleadings and affidavits regarding the plaintiffs – MERS or servicers – interest in the
proceedings and regarding lost, missing or destroyed promissory notes. The practice could be
occurring elsewhere. It is axiomatic that the practice is improper and should be stopped. Fannie
Mae has not authorized this unlawful conduct. As a result of the MERS hearings in Florida,
Fannie Mae recognizes the issue and is taking action to correct it.

It is axiomatic that the practice of submitting false pleadings and affidavits is unlawful. With his complaint, Mr. Lavalle has identified an issue that Fannie Mae needs to address promptly. For some time, the Legal Department has been working on a proposal for a new computer system to communicate better with and control attorneys working on Fannie Mae litigated matters. As a result of the Florida cases, the Legal Department is formulating a more immediate solution for the issues raised in those cases, including a directive to attorneys and Servicers in Florida directing corrective action.

Mr. Lavalle’s claim that large numbers of foreclosures – tens of billions of dollars
worth – could be unwound as a result of this misconduct likely overstates the risk to Fannie Mae.
Courts are unlikely to unwind foreclosures unless borrowers can demonstrate that the foreclosure
would not have gone forward with the correct pleadings, which is a difficult burden for most
borrowers to meet. Even the Florida judges who were very angry about the false pleadings ordered that the foreclosures could go forward with correct pleadings and the proper plaintiff.

Civil lawsuits would have a similar burden; the plaintiffs would have to demonstrate damages
arising from the false statements. Mr. Lavalle has not presented evidence that the borrowers
were improperly placed in default. Nevertheless, the issues Mr. Lavalle raises should be
addressed promptly in order to mitigate the risk of exposure to lawsuits and some degree of
liability.

Prior to the creation of MERS, the borrower could look to the land records to
follow the chain of servicers. If a mortgage is registered with MERS, however, MERS is the
mortgagee of record. Fannie Mae does not require lenders to register mortgages they sell or
service for Fannie Mae with MERS.

Mr. Lavalle questions whether Fannie Mae has adequate
procedures in place to keep track of 15 million promissory notes that it has in its possession or is
held for its account. 155 Mr. Lavalle claims that the endorsement-in-blank policy leads to trillions
of dollars of missing or lost negotiable paper. 156 Mr. Lavalle bases his claim that the problem is
widespread by extrapolating from routine filing of lost note affidavits in Florida foreclosure
proceedings. 157 He acknowledges that every entity operating in the secondary mortgage market
has the same policy.158 According to his calculations, about $6 trillion worth of bearer paper
exists due to this practice. 159 Since these notes are negotiable instruments, Mr. Lavalle contends
borrowers face dire consequences from their mishandling. 160 A holder in due course, for
instance, can recover even when the maker has defenses or has paid the note in full.

80495799-Confidential-Report

robo and this is why….

If we are a nation where justice is blind, should we not investigate this possibility before we give the offending financialinstitutions another free pass?

The essence of an effective capitalist system is rules and accountability. For markets, and our larger economy to work, important players cannot be permitted to make up their own rules. In all likelihood, a settlement next week means these serious questions will never be answered.