A letter from my friend Nye:
NYE LAVALLE
10675 Pebble Cove Lane
Boca Raton, FL 33498
561/860-7632
mortgagefrauds@aol.com
10675 Pebble Cove Lane
Boca Raton, FL 33498
561/860-7632
mortgagefrauds@aol.com
Dear Attorneys General:
Before I start in with my letter to each of you in a follow-up to my communications to you last week, I want you to ask yourself a number of simple questions:
1. Why did the banks use robo-signing and why was it so widespread?
2. Why didn’t the original wet-ink promissory notes of borrowers ever make it to their intended securitized trusts?
3. Why don’t borrowers, anymore, get their original wet-ink promissory notes returned to them stamped cancelled and paid-in-full upon payoff or the refinancing with another note?
4. Why did lenders so often claim that notes in judicial foreclosure states were lost, missing, stolen, or destroyed?
5. Why is the entire origination, securitization, servicing, and foreclosure process automated, with little if any human interaction, with the most interaction in the process coming from the robo-signer itself?
6. Why did Fannie, Freddie, Wall Street, CEOs, and boards intentionally ignore the very detailed reports and warnings from me and other advocates and instead launch million dollar plus attacks against the whistle-blowers?
7. Can a bank sell, trade, pledge, or securitize a promissory note to a property AFTER the loan has been paid off or refinanced?
8. Why do so many (one judge I was in front of 2 weeks ago said 90%) foreclosures contain fraudulent pleadings, assignments, and affidavits?
9. Why can’t major banks and servicers show my team the books to a securitized trust or their own general ledger showing where a $1.0 to $4.5 million promissory note is booked so my clients can payoff their lawful obligation to its lawful lender and insure clear and unclouded title without double liability to a future holder-in-due-course (” HDC”)?
The bottom-line here friends, is that the servicers are cooking their books robbing Peter, Paul, and Mary as well as each of us, to pay the hedge funds and those ” ultimate lenders” in what the Federal Reserve calls the Shadow Banking system. Let me show you proof via one example that I can only share in general terms due to the confidentiality agreement in place. A company I am a VP for, owned by a friend, settled for undisclosed terms, a promissory note we sought to pay off.
Prior to pay off, we sought to have the original ” wet-ink’ note returned to us ” cancelled and paid in full” to insure there would by no double liability or HDC issues in the future. The servicer, who then claimed ownership, stated and verified that the note was lost and not in their possession. Why would we pay such a note off then?
We then contacted the President of the alleged owner who said to send in what we thought was fair. We took a 20% haircut and sent in certified funds, only to have the certified funds returned. After a demand by me to either put up the note or face litigation, we get an email from an attorney claiming the original note, which was claimed to be lost, was in his hands and possession.
We went to inspect the note, which indeed was in his hands and possession. However, there was only one problem, the original wet-ink note my friend signed for the company was NEVER EVER endorsed. There was no endorsement, blank or otherwise on the note NOR was there ANY allonge attached or unattached in the file, even though the note was securitized and had three assignments of the mortgage!
After the settlement, which I cannot describe the terms, we owned and held the original note; had a recorded satisfied mortgage; and thus had no further obligation to any lender. Yet, two months later, we receive a monthly statement showing that we owed almost $60,000.00 and that we were $13,000 in arrears, when we had no obligation whatsoever. I have seen this in other cases where we have written down the mortgage to zero and years later, the borrower receives a statement showing balances, insurance, and escrow transactions.
Our conclusion is that while we may not have had any debt any longer, servicers are still ” carrying” the value of the original loan on their books and defrauding investors or shareholders. Why else would such a note, that was no longer owned by them, be reflected on their books and account records?
You see, robo-signing is NOT a simple shortcut or cost saving device as the banks would want you each to believe. It’s a symptom of a much greater scheme which was designed by persons with nefarious motives, some of which may be foreign intelligence agencies and sovereign wealth funds acting in concert with various intentional terrorists, to subvert our system of government and democracy as some have suggested.
I am not one to discount anyone’s so-called theory (conspiracy or otherwise) since the banks have alleged my prior warnings to be that of a conspiracy theorist, but time have scientifically proved virtually ALL of my theories right which now make them scientific fact. In fact, my allegations of robo-signing over a decade ago was labeled just that, the ” crazy talk” of a conspiracy theorist. However, ask yourselves, was I right or wrong, crazy, or did I just see things, many others simply ignored?
Some, like the powers on Wall Street I previously addressed, may not like the ” tone” of my in-your-face style of writing to which I make reference to a few names”¦ Keith Olbermann, Dylan Ratigan, Rush Limbaugh, and Glenn Beck. Please don’t let the tone or inflection of my voice and writing dissuade or persuade you, just investigate my allegations and facts. I write after decades of frustration with our system and the ignorance of many, and the arrogance of those on Wall Street who calculate such frustration and ignorance into their risk/reward models that allow them to continue their fraudulent behavior since they believe that regulators won’t do their jobs and the people won’t riot.
So, I kindly ask that you please don’t discount my intentions or those of others who come before you, until you independently validate or invalidate their evidence and testimony. I am asking each of you to investigate and validate my evidence, prior to any settlement you may each reach regarding securitization issues. I am not asking you not to settlement the robo-signing issues. Take the $15 to $20 billion and settle those obligations and make them follow the previously released ” best practices.” What I am asking is for you to each coalesce together with the Attorneys General of New York and Delaware to fully investigate the securitization issues and do not release ANY bank or lender from liability related to securitization of promissory notes until a complete investigation.
Last week I forwarded to you an email discussing my background in being the first person to identify and report on foreclosure fraud abuses, including robo-signing, over a decade ago. I also provided you some suggestions on your settlement efforts and stated I was willing to assist any of you, collectively or individually, in your efforts to right the many wrongs of the banking community.
Having warned some of your offices as far back as 2000 of many of these abuses, I assumed, wrongly it appears, that this time around, that one or more of your offices would want to hear what I had to say. It was my hope that you all collectively, or one or more of you individually, particularly New York and Delaware, would open your doors to the real facts and evidence my colleagues and I are willing to provide you.
I thought that perhaps the FHFA’s OIG recent report that outted my efforts as far back as 2003 to warn Fannie, OFHEO, and others, including some of your offices, of these abuses and Fannie’s Independent Counsel investigation that validated the allegations in my report, would provide you each with more impetus to listen to my concerns this go-round.
To say I am a little disconcerted that not one of you has responded to my email would be an understatement since some of my colleagues and members of the media have an ongoing gentlemen’s bet on the over and under of you each responding or ignoring my offer of assistance as well as evidence and testimony.
I, nor my colleagues, wish to disrupt or unsettle your settlement agreements for that is your right to do. We know the precarious nature and position of our nation’s banks more than many of you do. We see it each day and are in a better position, having years and even decades of hands-on daily experience to witness the fraud, abuse, and siphoning off of our nation’s riches.
All I am saying and all my colleagues and the people in the streets are asking and praying for is for each of you to do your sworn upon duty to protect us — your citizens. Do not protect the naked men and women who stand behind the veils of the opaque non-transparent money machine pulling the levers (intentional pun) of the of Pandora’s black box of financial alchemy.
The people are not seeking more money from the robo-signing scandal, they are seeking accountability and transparency as well as the ultimate reward, justice, rather than more injustice. Do not propel America’s youth to violence, propel them to seek a better nation and world for all, not some.
Each of you has a moral obligation, a legal duty, and some might argue an ethical and fiduciary responsibility to the citizens of your respective states to do what is right. I am not asking that you not settle the robo-signing controversy. That’s peanuts in comparison to the fraudulent securitization issues and I might add not even peanuts, but sunflower seeds for that’s how small and miniscule the issue of robo-signing is.
A few years ago, I just focused some attention on that ” minor detail,” since it was the most obvious and easiest detail to get a bunch of lazy lawyers and judges to act on to protect American homeowners. It was never my intent to focus attention on the paperwork for I have known for twenty years that you cannot rely on the paperwork or word of banks, since they forge, fabricate, lie, and perjure whenever and wherever necessary. I have 20-years and millions of pages of evidence in that regard.
What I wanted the lawyers, judges, and regulators then, and what I want now, is to focus on the fraudulent securitization practices that have devastated our nation and the world’s economy. The major players always knew that these were not true sales, but financing of receivables that should have been booked on the balance sheets of each bank and lending institution as one Fitch ratings analyst informed me back in the late nineties. The securitizations were not true sales! That’s why the notes were never transferred; and why they were all endorsed in blank; and why there are no intervening assignments; and why now we have robo-signers attempting to create chains of title and possession that never existed.
You see, the issues are assignee liability, holder in due course, and the multi-pledging and sale of the notes in an effort to cook books. If you discount this, read about the LTV bankruptcy and read the article at this link from the respected CFO Magazine https://www.cfo.com/article.cfm/3009430?f=home_featured in which the lead to the story reads”¦ At the Bond Market Association’s annual meeting in New York in April, the moderator of a panel on asset-backed securitization (ABS) joked that this enormously popular form of structured financing has ” proven to be bankruptcy remote “” except perhaps in the event of bankruptcy.”
Many people knew of this fraud and for money, power, and other forms of graft, turned a blind eye or gave a willing hand to the fraud and abuse. One of the first persons to look at is former Senator Phil Gramm of Texas. In fact, you need to look at the law and accounting firms who created and blessed these so-called structured financing deals.
In upcoming emails, I will send you evidence and reports of some of the most egregious examples of fraud that will show and prove to you, without any doubt, what had occurred. In one example, days after I wrote my report, a U.S. trustee sued the banks for $2.2 billion!
Please, I beg of each of you, let’s do something about this mess to fix it for your life and those of your children and grandchildren. Let’s not leave everyone hanging this time around. Each of you and your AG’s will look strong and tough if you simply follow the money, note, and IT trails to where they ultimately lead. Your state’s citizens and pension funds need you, and all Americans need you to do what is morally and legally right, not politically correct to some or convenient to others. Do not make America like the streets of Greece.
I have copied several journalists to keep them abreast of my warnings. I did this before, over the years. Many of them know of my efforts and my desire then to stay behind the scenes. However, I think now is the time to come out of the closet, so to speak, to let everyone know not only what I know, but when I knew and who I informed and warned. We are only in the fourth inning of an extra-inning game. There is plenty of time and need to investigate and hold those responsible for this morass, accountable.
Should you wish any of our discussions to be confidential, I am willing to adhere to that request either by agreement or a gentleman’s agreement.
I eagerly await your response and reply and the opportunity to assist each of you serve the citizens of your states and the American public.
Very truly yours,
Nye Lavalle
