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

Drink it all in, folks. Things are bad and only getting worse.  No commentary necessary here, no need to read between any lines.  You can all read the black and white.

The rapid descent into a very dark place has only been hastened as it becomes more and more certain and definite that this nation and especially this state are governed not by people or by laws or by any real justice, but by corporations supported and driven as they are by collision of corruption and cash.

The only real question remains is what happens after the full breadth and depth of the tyranny is fully expressed?  What will this world look like when the corporatacracy apparatchik has ground down and spit out every last bit of law and liberty?  What will we the serfs, the peasants, the prisoners do when clamp is tightened down just a few more screws deeper?

That truly is what terrifies me most. What the masters of the machine fail to realize is the profound danger they are placing all of us in by accelerating this descent into lawlessness.

This nation, these people will only be pushed so far.  The real problem is, the masters will not recognize they’ve pushed too far until it’s too late and there is no turning back.

From The Palm Beach Post:

Florida’s once-heralded foreclosure mill investigations have fizzled as the attorney general’s office has failed to find the right strategy to continue its pursuit and three law firms call for the cases to be dismissed.

This week, an attempt to have the Florida Supreme Court weigh in on whether the state has the authority to subpoena the Law Offices of David J. Stern was denied by the 4th District Court of Appeal.

The decision effectively ends the investigations into complaints that the firms doctored court paperwork in an attempt to speed foreclosures.

FLORIDA ATTORNEY GENERAL

UPDATE: BUT NOW HERE’S A REAL CONFLICT THAT’S DEVELOPING…

 What are we dear people, citizens of a United States of America to make of the fact that one state (that would be Florida) has affirmed a very real wild, dangerous environment of lawlessness while other states, that would be New York, California, Nevada, Michigan, just to name a few have said,

WE WILL OPERATE UNDER A SYSTEM OF EQUAL LAWS THAT BIND PEOPLE AND CORPORATIONS

That’s right, just read the lawsuit that was recently filed in Nevada here and another bombshell, read the lawsuit that was just released a few minutes ago from New York here.

It’s kinda setting up a sort of civil war type situation where on the one hand we’ve got states that are enforcing laws while another state sticks out like a downward sticking thumb, thumbing the nose at the rule of law……

People WAKE UP!

You are getting creamed.

We are getting creamed.

We are all getting destroyed by a system of government that is radically unfair, unjust and therefore entirely illegitimate.

YOU CAN NO LONGER JUST SIT ON THE SIDELINES AND BE A VICTIM.  YOU CAN NO LONGER SIT PROSTRATE AND ALLOW THE WHIPPING AND BEATING AND ABUSE TO CONTINUE.

It’s time for every single person who is impacted by all of this…and that is everyone of you…to make a stand…

COME TO THE STATE CAPITOL AND MAKE YOUR VOICE HEARD!

Mortgage Justice Group Announcement

From Matt Stoller at Nekkied Capital:

So that’s a total of 55 people, 10 of whom are FBI agents.  Let’s do a few comparisons.  During the Savings and Loan crisis, Bill Black reminds us that there were about a thousand FBI agents working on the various cases.  That’s one hundred times the number of people working on a scandal that is about forty times larger and far more complex.

To put it another way, let’s say that this scandal cost the American public $5-7 trillion in lost home equity.  That’s about $100 billion of lost home equity per person assigned to this task force.  If someone stole $100 billion a corporation, like say, if somehow Apple’s entire cash hoard which is roughly that amount, suddenly disappeared, I’m guessing that the FBI would assign more than one person to the case.

Another comparison might be Enron, which had 100 FBI agents assigned to the case.

NEKKID CAPITAL

Visit msnbc.com for breaking news, world news, and news about the economy

PLEASE WATCH THIS ENTIRE VIDEO

WASHINGTON — During his State of the Union address tonight, President Obama will announce the creation of a special unit to investigate misconduct and illegalities that contributed to both the financial collapse and the mortgage crisis.

The office, part of a new Unit on Mortgage Origination and Securitization Abuses, will be chaired by Eric Schneiderman, the New York attorney general, according to a White House official.

Schneiderman is an increasingly beloved figure among progressives for his criticism of a proposed settlement between the 50 state attorneys generals and the five largest banks. His presence atop this new special unit could give it immediate legitimacy among those who have criticized the president for being too hesitant in going after the banks and resolving the mortgage crisis. He will be in attendance at Tuesday night’s State of the Union address.

HUFFINGTON POST