It hasn’t taken long for the responsibility finger to be pointed at the nation’s biggest banks for mortgage fraud in the Robosigner scandal. The national media is treading lightly, but those who have followed the mortgage modification mess for the last few years are writing about it already. We need to pay attention for our own good.
Yet apparently 50% of our country still blames the general population for mortgage mistakes. In Economic textbooks, it’s referred to as the Just World Hypothesis. To be sure, everyone is responsible for their own signature, but we have yet to see the nation’s banks take any responsibility. Even now, the response of all the banks are minimalized to basically, “It’s no big deal.”
There is a great big deal of blustering by Congress. We’ll see how that goes. The fear is that this next mess will be swept under the rug – again. Seven of the nation’s largest banks have been directed to review their foreclosure processes. In addition to JPMorgan Chase, the list included Bank of America, Citibank, HSBC, PNC Bank, and U.S. Bank. As of Oct. 12, Wells Fargo and Litton Loan Servicing had added themselves to the list. Legislators are referring to “foreclosure mills,” and foreclosuregate.
President Obama surprised everyone by pocket vetoing a bill that would have affected notarization and interstate commerce. The bankers wanted it and he vetoed it anyway, so… surprise!
So far, the country is getting divided into two camps: judicial and non-judicial foreclosure states. A slew of non-judicial state’s Attorney Generals are lining up to peek into the nation’s biggest bank’s books. We’ll see how that goes too.
In ‘judicial” states you actually have to prove you have the right to foreclose before the courts will allow you to foreclose. In the remaining 27 states, you don’t have to prove you hold the note to the property, or anything else for that matter, before foreclosing… in fact, you don’t even have to go to court and prove you have ‘standing” in order to foreclose, which is why these states are called “non-judicial foreclosure states.” California, for example, is a non-judicial foreclosure state, meaning foreclosures do not require the prior approval of a court.
The kernel here is how high will the blame go. Those of us who have followed this mortgage modification mess absolutely know that the responsibility goes to the very top. You just can’t sign 10,000 foreclosure files without the very top executives knowing about it.
From Mandelman:
“It’s important to recognize that these robo-signers are not low-level bank employees. According to April Charney, who the press often calls the country’s top foreclosure fighter, the signing is taking place only a handful of floors below the GMAC/Ally C-Suite offices, and if you think about it, this would have to be the case.
“You don’t have people working near the top of a major financial institution, signing their names thousands of times a month, or employ “document production companies,” as in the cases of the foreclosure mills like David Stern’s law firm, or LPS, DOCX, or any of the other variations on the same theme, in order to get around something trivial.
Employees of GMAC/Ally, JPMorgan Chase and others have now been deposed, and admitted under oath that their jobs have been to sign their names to documents used to foreclose on people’s homes. They said that they skipped out on the notary function entirely, and never read the documents they were signing.”
CBS News this morning referred to fake Social Security numbers on foreclosure documents.
Again from Mandelman:
“They all knew it was wrong. They knew they were breaking all sorts of state and federal laws. They conspired to defraud the federal government, the courts, the states, the American people, and in fact, the entire world. They carefully planned what they did, and until recently, it appeared that they had executed their plans effectively, and certainly with great aplomb.
Banks are falsifying documents and having robo-signers sign things because they’re trying to hide the fact that the notes were never assigned to the trusts that are now trying to foreclose on the homes. The trusts are quite simply empty. They hold nothing inside them. Certificates in the trusts that facilitated the sale of mortgage-backed securities to investors all over the world are missing the “mortgage-backed part.” Now the trusts want to foreclose, but they can’t prove they hold the loans… BECAUSE THE FACT IS… THEY DON’T.
The thing that should be noted is that last June, one of JPMorgan Chase’s “robosigners” testified to the same sort of thing that the GMAC/Ally manager did recently, but I guess since our housing markets had recovered as of last June and our economy was well on its way back to jobless prosperity, no one cared. So, now… apparently, just weeks from the mid-terms someone does.” Linda Green and Jeffrey Stephan were two prominent names associated with the Foresclosuregate scandal.
I personally await the one single Democrat that will get in front of this mess. So far, U.S. Representative Alan Grayson (D-FL) is the closest, most accurate and forthcoming. However, until he rises in the spotlight, that illustrates how difficult it is for a member of Congress or the office of the President to make the banks behave. We’ve watched the banks tell U.S. Treasury Secretary Geithner and President Obama to sit down before when they attempted to get the bank’s cooperation on any societal responsibility.
Of course, since the original publication of this post, the state’s AGs have negotiated punitive monetary damages against the biggest banks. No one will get their house back. It is up to those of private finanancial means to hire a competent attorney to pursue damages in District Court. Competent attorneys are hard to find. The term “Corrupt Title” seems to be emerging as a descriptive keyword.
Including the REST Property Solutions Report in a mortgage modification package or short sale package will ensure that when or if the mortgage goes to foreclosure court, the judge will examine chain of title and hold the investor accountable. It won’t matter whether the mortgage is ‘judicial’ or ‘non-judicial.’
This YouTube video explains the mortgage modification aspect. Go here: How to Get A Beneficial Mortgage Modification Now
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The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report Property Solutions Report is best classified as a real estate title search to prove broken chain of title in a court suit. Synonyms include clear title, quiet title, assign title, assignment of title, and try title, depending on what state you’re in. The REST Report is used to calculate net present value using the mortgage servicer’s own software for the mortgage trust, allonge and allonges. The REST Report is independent mortgage advice and more efficient than a forensic loan audit. Chain of title and the now endemic broken chain of title has been mandatory to sell a property since the Magna Carta in 1066.
This YouTube video explains the Broken Chain of Title, short sale, cloud on title situation
This page explains the Broken Chain of Title Property Solutions Report
It is a pre-requisite to any attorney consultation for this strategy.
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Read Mandelman here
tags: allonge, mortgage trust, try title, allonges, clear title, quiet title, calculate Net Present Value, chain of title, assignment of title, real estate title search, rest report, independent mortgage advice, forensic loan audit,assign title, broken chain of title,
Originally posted 2010-10-11 09:16:11. Republished by Blog Post Promoter
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Robo-signer Mortgage Fraud too endemic to hide – http://t.co/lT7Z31R8
Robo-signer Mortgage Fraud too endemic to hide http://t.co/q5gwhldX