The banking cartels and Wall Street Wizards did not just commit Financial Terrorism against individual Americans, according to 17 lawsuits filed last week, they materially misrepresented facts to the Federal Government….and by extension, you and I are stuck paying the bill. According to the lawsuits, the banking cartels lied…..and they lied big….really big. Read the New York Times Story Here
Now read the allegations contained within just one of the lawsuits. The problem is none of the bankers have been held accountable for any of this….and you and I are paying a massive price.…
Defendants falsely represented that the underlying mortgage loans
complied with certain underwriting guidelines and standards, including representations that
significantly overstated the ability of the borrowers to repay their mortgage loans.
Between September 30, 2005 and November 5, 2007, Fannie Mae and Freddie
Mac purchased over $6 billion in residential mortgage-backed securities (the ” GSE Certificates“)
issued in connection with 23 BOA-sponsored and/or BOA-underwritten securitizations.
The Registration Statements contained statements about the characteristics and
credit quality of the mortgage loans underlying the Securitizations, the creditworthiness of the
borrowers of those underlying mortgage loans, and the origination and underwriting practices
used to make and approve the loans. Such statements were material to a reasonable investor’s
decision to invest in mortgage-backed securities by purchasing the Certificates. Unbeknownst to
Fannie Mae and Freddie Mac, these statements were materially false, as significant percentages
of the underlying mortgage loans were not originated in accordance with the represented
underwriting standards and origination practices and had materially poorer credit quality than
what was represented in the Registration Statements.
The Registration Statements also contained statistical summaries of the groups of
mortgage loans in each Securitization, such as the percentage of loans secured by owneroccupied
properties and the percentage of the loan group’s aggregate principal balance with
loan-to-value ratios within specified ranges. This information was also material to reasonable
investors. However, a loan level analysis of a sample of loans for each Securitization ““ a review
that encompassed thousands of mortgages across all of the Securitizations ““ has revealed that
these statistics were also false and omitted material facts.
Defendant BOA Securities (an underwriter) is directly responsible for the
misstatements and omissions of material fact contained in the Registration Statements because it
prepared these documents to market and sell the Certificates to Fannie Mae and Freddie Mac.
Defendants ABF Corp. (a depositor), BOA Mortgage (a depositor), BOA Funding (a depositor),
and the Individual Defendants are also directly responsible for the misstatements and omissions
of material fact contained in the Registration Statements filed by ABF Corp., BOA Mortgage,
and BOA Funding because they prepared, signed, filed and/or used these documents to market
and sell the Certificates to Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac purchased over $6 billion of the Certificates
pursuant to the Registration Statements filed with the SEC. These documents contained
misstatements and omissions of material facts concerning the quality of the underlying mortgage
loans, the creditworthiness of the borrowers, and the practices used to originate such loans. As a
result of Defendants’ misstatements and omissions of material fact, Fannie Mae and Freddie Mac
have suffered substantial losses as the value of their holdings has significantly deteriorated.
BOA National is one of the nation’s largest banks and a leading sponsor of
mortgage-backed securities. BOA National is also the direct parent corporation of ABF Corp.,
BOA Mortgage, and BOA Funding. As stated in the Prospectus Supplement for the ABFC
2006-OPT3 Securitization, ” [BOA National] and its affiliates have been active in the
securitization market since inception.” The volume of loans originated and aggregated by BOA
National made it possible for BOA Corp. to consistently securitize tens of billions of dollars
worth of mortgage loans during the time period relevant here. In 2005, BOA Corp. securitized a
total of $95.1 billion of mortgages. See Bank of America Corp., 2006 Annual Report, at 119. In
2006, BOA Corp. securitized a total of $65.5 billion of mortgages. Id. In 2007, BOA Corp.
securitized a total of $84.5 billion of mortgages.
from approximately 2005 through
2007, BOA’s involvement in the mortgage-backed securitization industry was substantial.
Defendants indeed had enormous financial incentives to complete as many offerings as quickly
as possible without regard to ensuring the accuracy or completeness of the Registration
Statements, or conducting adequate and reasonable due diligence. For example, ABF Corp.,
BOA Mortgage, and BOA Funding, as the depositors, were paid a percentage of the total dollar
amount of the offerings upon completion of the Securitizations, and BOA Securities, as the
underwriter, was paid a commission based on the amount it received from the sale of the
Certificates to the public.
The push to securitize large volumes of mortgage loans contributed to the absence
of controls needed to prevent the inclusion of untrue statements of material facts and omissions
of material facts in the Registration Statements. In particular, Defendants failed to conduct
adequate diligence or to otherwise ensure the accuracy of the statements in the Registration
Statements pertaining to the Securitizations.
Download the Bank of America Complaint Here:
Then click here for all 17 Lawsuits!
Don’t get to excited about this. The BANKS always win. Is election time coming up? In the 50 state AG investigation into robo signing, and document fraud A/K/A ” The Bank Fraud Concealment And Forgiveness Commission ” they gathered no evidence, of the crimes, and when New York State Attorney Eric Schneiderman said he was ” shocked ” to learn this, I said that he reminded me of the Head Cop in the movie “Casablanca” when he shouted
” I AM SHOCKED!, SHOCKED TO LEARN THAT GAMBLING HAS BEEN GOING ON AT THIS ESTABLISHMENT! ”
Now the NY AG has always had the power to subpoena the players operating on Wall Street and the TBTF Banks, set a Grand Jury, and obtain indictments for the arrest, trial, conviction and imprisonment of the people guilty of felony fraud, committed within NY State, and it’s a massive number of politicly connected players. BUT HE’S DONE NOTHING HIMSELF.
Now Nevada Attorney General Catherine Cortez Masto’s amended complaint in a lawsuit against Bank of America she exposes BOAs disregard and violation of a earlier agreement that sounds a lot like the 50 State AG settlement,
” in her filing, Ms. Masto contends that Bank of America raised interest rates on troubled borrowers when modifying their loans even though the bank had promised in the settlement to lower them. The bank also failed to provide loan modifications to qualified homeowners as required under the deal, improperly proceeded with foreclosures even as borrowers’ modification requests were pending and failed to meet the settlement’s 60-day requirement on granting new loan terms, instead allowing months and in some cases more than a year to go by with no resolution, the filing says […]
So she is doing something, but not going for criminal charges that she should.
The other 48 State AGs are walking in lockstep, and imagine their embarrassment when they are in the process of getting their clients “the Banks” off with a small fine “a taste of the loot” and no jail time for anybody, ” it has to be everybody, or the patsy’s will squeal ” and they get caught and exposed AGAIN! on 07/18/2011 Associated Press reported.
(AP) Mortgage industry employees are still signing documents they haven’t read and using fake signatures more than eight months after big banks and mortgage companies promised to stop the illegal practices that led to a nationwide halt of home foreclosures.
County officials in at least three states say they have received thousands of mortgage documents with questionable signatures since last fall, suggesting that the practices, known collectively as “robo-signing,” remain widespread in the industry.
The documents have come from several companies that process mortgage paperwork, and have been filed on behalf of several major banks. One name, “Linda Green,” was signed almost two dozen different ways.
Lenders say they are working with regulators to fix the problem but cannot explain why it has persisted.”
Now what are the 50 State AGs going to do? They can’t turn their backs on the campaign contributions ” that we know they get ” nor the cash, ” that we don’t know how much they get ” because they can not get reelected without money for 30 second negative TV attack messages about their opponents and billboards listing positive’s about themselves.
I guess they will just have to say they have discussed it with the Banks and they have promised to this time REALLY MEAN IT, when they say no more cheating and fraud!
Meanwhile the bank stocks drop, and the banks just loves it. They buy it back cheap, real cheap, then in a short period, after the banks have enjoyed their short position on there own stock, the TBTF, NWO group turns the money faucet on again, and in a short time the investors see the banks, who now make more money off the stock market than loans, strong position, and their stock rising, and the cycle continues.
THE BANKS OWN/CONTROL BOTH THE MAJOR POLITICAL PARTIES IN THE US. THEIR MAIN GOAL IS TO KEEP US EVENLY DIVIDED AND DISTRACTED FROM THE TRUTH.
I checked MERS for homeowners and NOW my loan is not showing its owned by Fannie Mae. It only gives the servicer which is lovely BOA via Countrywide. What is going on????
i used to work for the snake (boa) i could tell you stories you wouldn’t believe and the feeds would LOVE to hear…names and dates