Matt Weidner – Fighting With The American People

Posts Tagged ‘mortgage fraud’

Okay, before you get started on this article, there is a special and disturbing twist that comes at the end…..Here’s the article…..

Some people are dismissing troubled homeowners’ complaints that they were lied to about the terms of their mortgages. After all, the borrowers should have read what they were signing. But when it comes to the so-called robo-signers at the banks or Lender Processing Services (LPS), the same critique should be equally valid: By signing documents without reading them, the mortgage processors were lying under oath.

But the people who deserve the greatest scorn for their behavior in the foreclosure document scandal are the robo-signing lawyers and their colleagues who submitted robo-signed documents to the courts. These attorneys should be facing discipline and perhaps disbarment for their actions. After all, when we talk of homeowners and robo-signers at banks, we speak of people who should have known better — and that’s the lawyers’ job.

Just how aware some lawyers are of how far wrong the foreclosure business has gone — and the professional risks they run by participating in it — is revealed by the deposition of Tammie Lou Kapusta, a former paralegal at the Law Offices of David J. Stern. Amid all the depressing details of precisely how that foreclosure mill abused the rule of law are lots of comments about how the attorneys, generally inexperienced, were terrified of being disbarred or disciplined for what they were doing, but were also terrified of losing their jobs, given the terrible legal job market.

Now, when you click here for the rest of the story, see  if you can catch what the real issue is…and just to help you out, the real disgusting this is how long this whole mess has slogged out…..nothing’s changed, nothing has happened…..just the long, slow, decline of our nation’s legal system, the biggest scar on a once proud and noble idea here in the entire State of Florida.

I wish I thought that things like this mattered anymore.

I wish I still believed that our nation’s courts had the courage to stand up to fight.

I wish our nation’s laws had powerful advocates who would stand up and fight for THE LAW.

But in case after case, courtroom after courtroom, all across this country THE LAW and OUR COURTS have bent, and then been trampled by the banks and institutions.  The law that has developed is that there is no law for the banks.

ricolouisiana

This is a great, very great explanation of fraudclosure that I encourage everyone to read in its entirety from the blog listed below:

The untold story in the foreclosure crisis unfolding across America is that, following a foreclosure perpetrated by one of the October 2008 Bailout Banks (e.g. Bank of America, Citibank, JPMorgan, Wells Fargo) Fannie Mae or Freddie Mac suddenly appear as the record owner of Average Joe’s home. These federal government sponsored entities then go into local housing court and get a court order authorizing them to evict Joe. If Joe resists, these supposedly charitable institutions obtain a writ ordering the local sheriff to forcibly remove Joe from his home.

Newt Gingrich recently admitted to accepting $1.8 million from Freddie Mac ($25,0000 to $30,000 a month during one span of time) for advising this proto-fascist entity. Gingrich claims that he supports Fannie and Freddie because he believes the federal government “should have programs to help low income people acquire the ability to buy homes.” But Fannie and Freddie don’t do this and never have. When government “helps” someone by subsidizing the purchase of something (through easy credit or lower-than-market rates), it makes that something more expensive. Helping someone buy something that is overpriced because of your help is not help. Fannie/Freddie subsidies not only hurt the low income people they intend to help, they hurt everyone by subsidizing, and therefore distorting, the entire housing market. Fannie/Freddie’s charity has now taken a dark turn. Like their Depression-era New Deal predecessor the Regional Agricultural Credit Corp., Fannie/Freddie are now repossessing homes at an increasing and alarming rate.

Mr. Gingrich either does not understand economics – government subsidies make things more expensive, not less expensive, and therefore hurt their intended beneficiaries – or he is a vain, selfish, and cynical man with no interest in actually helping his neighbor.

You decide.

THE OCTOBER 2008 BAILOUT PAID OFF THE HOLDERS OF MORTGAGE BACKED SECURITES AND DERIVATIVE INSUREDS

The facts indicate that the Federal Reserve “printed” at least 16 trillion dollars as part of the 2008 bailouts. The bigger questions, however, who got it, why and what did the Fed get in return? The Fed doesn’t just print money. It prints money to buy stuff. Most often this is U.S. Treasuries. That changed in October of 2008. In and after October 2008 the Fed printed new money to buy mortgage-backed securities (MBS) that were defaulting at a rapid rate. Want proof? Here is a link to the Federal Reserve balance sheet which shows that the Fed is holding over a trillion dollars in mortgage backed securities that it began acquiring in 2008.

Why is the Federal Reserve holding all these MBS? Because when “the market” collapsed in September of 2008, what really collapsed is the Fannie/Freddie/Wall Street mortgage “daisy chain” securitization scheme. As increasing numbers of MBS went into default, the purchasers of derivatives (naked insurance contracts betting on MBS default) began filing claims against the insurance writers (e.g. AIG) demanding payment. This started in February 2007 when HSBC Bank announced billions in MBS losses, gained momentum in June of 2007 when Bear Stearns announced $3.8 billion in MBS exposure in just one Bear Stearns fund, and further momentum with the actual collapse of Bear Stears in July and August of 2007. By September of 2008, the Bear Stearns collapse proved to be the canary in the coal mine as the claims on off-balance sheet derivatives became the cascading cross defaults that Alan Greenspan warned could collapse the entire Western financial system.

Part of what happened in October 2008 is that the Federal Reserve paid AIG’s and others’ derivative obligations to the insureds (pension funds, hedge funds, major banks, foreign banks) who held the naked insurance contracts guaranteeing Average Joe’s payments. To understand this, imagine that a cataclysmic event occurred in the U.S. that destroyed nearly every car in the U.S. and further that Allstate insured all of these cars. That is what happened to AIG. When the housing market collapsed and borrowers began defaulting on their securitized loans, AIG’s derivative obligations exceeded its ability (or willingness) to pay. So the Fed stepped in as the insurer of last resort and bailed out AIG (and probably others). When an insurer pays on a personal property claim, it has “subrogation” rights. This means when it pays it has the right to demand possession of the personal property it insured or seek recovery from those responsible for the loss. In Allstate’s case this is wrecked cars. In the case of AIG and the Fed, it is MBS. That is what the trillions of MBS on the Fed’s balance sheet represent: wrecked cars that Fannie and Freddie are now liquidating for scrap value.

Thank you Mr. Gingrich. Great advice.

BUT FANNIE/FREDDIE WASN’T MY LENDER AND WASN’T MY MORTGAGEE, SO HOW CAN THEY TAKE MY HOUSE?

To understand how it came to be that the Fed has paid Average Joe’s original actual lender (the MBS purchaser) and now Fannie and Freddie are trying to take Joe’s home, you first have to understand some mortgage law and securitization basics.

Fraudclosure Fraud

Every single American is well-advised to pay careful attention to the continuing struggles of Lynn Syzmoniak.  Remember, Lynn along with Lisa Epstein, June Edwards and Theresa Clarkson were all working selflessly to investigate fraud, crimes and abuses that were being committed in public records and courtrooms all across this country.

You would think that when citizens report crimes law enforcement might, at the very least, give you a high five or an “ATTA GIRL!!”….Well not here in Florida, the fraud and corruption center of the universe.  Not only do these crime fighters, these heroes to the people, not get any support….THEY GET ATTACKED.

Yep, that’s your government, serving the People of the State of Florida folks!

Lynn’s story in particular is so compelling because she helps net billions of dollars for the feds, but the very same conduct…IS COMPLETELY IGNORED HERE IN FLORIDA!

Please read Lynn’s story and share this one around.  Remember, “First They Came For Lynn Syzmoniak But I Did Nothing”

LYNN SYZMONIAK IN HUFFINGTON POST

On Thursday, April 5th U.S. District Court Judge Rosemary M. Collyer announced she had decided to sign off on the ”$25 billion” Mortgage Settlement. By “announced”, I mean she signed the consent orders all our major law enforcers and the biggest bankers had agreed to, and entered them into the record. Judge Collyer didn’t actually say anything about the deal. She didn’t let anyone else say anything, either: she didn’t hold a public hearing on the deal.

In acting silently, Judge Collyer not only okayed the deal’s lousy terms, which institutionalize servicer theft and foreclosure fraud, she reinforced the incredibly poor public process that’s kept the enforcement fraud at the heart of the deal hidden. Deliberately hidden.

Magical Misdirection

To understand just how deceptive “our” government and “our” law enforcers have been with us, imagine them as a Shakespearean magician, confessing his thoughts to us as he tries to trick an audience seated just off stage. Hear the magician, as he secretly pleads for his misdirection to work:

‘Please, keep focused on this hand, the one with the wand waiving above the shiny new servicing “standards.” Pay no attention to what I’m doing with my other hand. Please don’t notice me transforming the “standards” into empty promises through the ‘magic’ of metrics.

I must succeed at controlling and guiding your attention, so you fall for my trick! Otherwise, my trick is obvious-my ‘magic’ is all there in black and white, in Exhibits E and E-1. So don’t look there…stay with me, stay focused on the new servicing “standards” and that big sounding “$25 billion”…

Think I’m overstating the deliberate deception in selling the Mortgage Settlement as something other than the enforcement fraud it is? Let’s review the history.

Abigail Field

I keep having clients try to convince me that we should be calling the banks Organized Crime organizations and treat them as such, but we should not insult the comparatively honorable members of the world’s Organized Crime Families, La Cosa Nostra and all that.  The fact of the matter is the banks are not anywhere near as organized or ethical as the mafia or drug lords.  I know a bit about both and while they are probably bloodthirsty and savage, they play by a set of rules.  One thing for certain, if you were making your protection payments to the mafia, they would not come kicking down your doors and breaking your knees.  The banks on the other hand play by no rules and are perfectly happy to take your money while at the same time coming to kick down your doors and pursue breaking your knee caps….through the perfectly savage forum known as foreclosure courts.

And if they come to kick down your doors, take your property or throw you into the streets and harass you….whether you’re paying or not, they’ll just pounce on you with gangs of attorneys.  Rather than beat you savagely with bats, they’ll make your life hell (and the life of your pool man, contractor, plumber) with depositions, subpoenas, hearings and other attacks.

Make no mistake, the banks have become far more ruthless and savage than organized crime ever became….and they are doing so with the explicit consent and approval of our nation’s court courts.

And the worst thing about it all is the bank savages are bought and paid for with your money.  It really infuriates me when I step into the tall buildings with all their marble and gleaming chrome, polished glass and “free” Starbucks coffee to know that my clients, the victims in all this, are paying for all this…with taxpayer bailout money….right down to the gurgling chocolate fountain I found in the lobby of one law office recently.

I am particularly infuriated by the National Mortgage Sellout, which has apparently just been signed and approved by the Federal Court today….the confirmation marks one of the darkest days in our nation’s judicial history….the deal with the devil (or five national banking devils to be more precise) has now been formally inked.

THE BANKS ENGAGED IN THE WORLD’S LARGEST INSURANCE FRAUD SCHEME, THEY PROFITED TO THE TUNE OF HUNDREDS OF MILLIONS OF DOLLARS AND NOW THEY JUST MOONWALK AWAY FROM THE CRIME SCENE

Keep in mind now that one of the by products of the National Mortgage Sellout has been a massive uptick in new foreclosure filings, a fact especially evident here in Florida.  Just since it was announced I’ve seen a huge uptick in both new filings and the aggressive pursuit of the foreclosure cases that have been stalled out in courts.

And so it appears that the practical impact of the National Mortgage Sellout is more of the taxpayers that bailed out the banks will be thrown into the street, the improper conduct of the banks goes completely unpunished, and the flagrant and systemic abuse of our court system and desecration of the Rule of Law is confirmed and supported by the very court system that has been so desecrated….now ain’t that a grand thing?

The “leadership” of this nation has hastened our descent into a dark, lawless and very dangerous place.

God help us all.