Big Banks Told Not To 'Fix' A Fraud

[Robbien]

Source: WSJ

Ohio's attorney general threw a wrench into the banking industry's push to quickly restart foreclosures by fixing faulty paperwork, and pressed them to modify mortgage loans.

In two letters released Friday, Attorney General Richard Cordray criticized a number of banks and loan-servicing companies, including Wells Fargo & Co.; Ally Financial Inc.'s GMAC Mortgage; Bank of America Corp.; and J.P. Morgan Chase & Co. Mr. Cordray said the banks are trying to paper over fraud committed in foreclosures with temporary fixes that don't address underlying problems in the banks' practices.

"It is not acceptable for a party who believes they submitted false court documents to merely replace those documents. Wells Fargo and any other banks are not simply allowed a 'do-over,' " he wrote in the letter to Wells. The other letter was sent to Ohio judges, who were asked to notify Mr. Cordray when banks file substitute affidavits.

He demanded that the banks vacate any court order or motion that was based on improper paperwork. In an interview Friday, Mr. Cordray said the banks would "be well-served to work out a settlement with the borrowers to modify the loans and work out payments."




Read more: http://online.wsj.com/article/SB20001424052702304879604575582743893387762.html

---

"The banks are committing fraud on the court, essentially perjury, and then saying 'Whoops! You caught me! Here's some different evidence and use that instead,' " Mr. Cordray said

Nice to see an AG not mince words. He rocks. Hopefully this spreads to the other 49 states.

[bluerum]

1. dupe

[Robbien]

2. Where is it a dupe? I don't see another posting

:shrug:

[xchrom]

3. recommend

[jerseyjack]

4. Ohio's Kick-ass A.G.

Here's a guy who oughta replace Holder.

[femrap]

21. Richard Cordray is one of those

few people who really takes his job seriously and fights for Justice. He would also make a great Governor for Ohio someday...but US AG would be cool, too.

[aquart]

32. Never heard of him but won't forget.

Wish he was US AG right now.

[tridim]

5. Great! But the banks are continuing to steal homes.

Start making arrests AG's, then we'll be in business.

[Robbien]

6. There is hope for some AGs. The DC AG is doing something great for the District

D.C. Attorney General Peter Nickles this week created an opening for potentially tens of thousands of homeowners to challenge their foreclosures. He issued an enforcement statement emphasizing that District law requires that the assignment of a mortgage from one party to another be recorded within 30 days of the transfer.

This is a problem because many of the country's biggest mortgage companies list MERS, or the Mortgage Electronic Registration System, as the mortgage holder -- rather than the actual owner of the mortgage -- in local deed offices.

<snip>

"A homeowner should not be misled into believing that a threatened foreclosure is supported by the District's public records when it is not," Nickles said in a statement, explaining that such practices are a violation of the jurisdiction's consumer protection law.

Nickles said such violations may provide a "good basis for challenging the foreclosure in court" and encouraged homeowners and advocates to contact the attorney general's office so that it "may consider bringing enforcement actions to stop foreclosure proceedings and seek restitution for consumers."

http://voices.washingtonpost.com/political-economy/2010/10/dc_attorney_general.html


So yes, there are still the Bushie AGs out there helping banksters steal homes but some of the non-Bushie AGs are finally stepping up to the plate and doing their jobs.

[tridim]

7. According to a lawyer, CO law doesn't require recording of assignments.

She said our state law is really screwed up. Full of loopholes and circular logic.

None of my assignments were recorded after 2003 when it was sold to WaMu. Yet, Chase is still stealing my house. They know I can't fight them.

[Robbien]

8. I remember reading you have done a lot of work on researching your mortgage situation

So you probably are already aware of this article on Free help for troubled homeowners in Colorado
http://www.9news.com/money/article.aspx?storyid=159101&catid=344
MORTGAGE LINE 9: 1-877-667-6727 Monday, Oct. 25, 2010

<snip>
Having been in existence since October 2006, the Colorado Foreclosure Hotline's network of housing counselors have met face-to-face with more than 25,000 homeowners and have assisted 20,000 in reaching a positive resolution. All of their services are free.

<snip>

Together, with its 26 nonprofit housing counseling agencies, Rocky Mountain PBS, the Colorado Attorney General's office and JP Morgan Chase, thousands of homeowners will be alerted to the red flags of loan modification scams and direct homeowners to trusted, free, professional assistance through the Colorado Foreclosure Hotline.

The Colorado Foreclosure Hotline is the first statewide hotline in the United States, and provides an easy way for homeowners who may be in danger of delinquency or foreclosure to talk directly with a trained, professional housing counselor. HUD-Approved Housing Counselors offer free assistance to help homeowners understand options, negotiate solutions, and find the best resolution for their particular circumstances. Four out of five homeowners who successfully complete a face-to-face meeting with a housing counselor will avoid foreclosure in some capacity.

--------



I really wish there was an easy way out for the people such as yourself who are clearly being cheated.

[tridim]

9. I called months ago, had a meeting with HUD..

I was too poor to get help. Literally. Complete waste of my time.

HAMP requires the banks to comply, and they are not.

[Robbien]

10. Have you contacted Suthers' office?

This article says he is looking to the public for proof of evidence of fraud

http://www.denverpost.com/commented/ci_16453181?source=commented-

<snip>

Suthers' office has solicited consumer complaints and has heard several related to borrowers offered a loan modification designed to keep them in their homes who then had their homes sold at foreclosure auction.

"This indicates these foreclosures are on such a fast track that people aren't communicating," Suthers said.

Representatives for JPMorgan Chase & Co. and Bank of America, which suspended foreclosure sales earlier this month, declined to comment.

------

How close is your foreclosure date?

[tridim]

11. 24 days away.

I've contacted the AG, and they requested I send them my evidence. I will.

But

Chase is still going to steal my house.

[Robbien]

12. Sending out best wishes

sanity returns and the robbers are stopped.

:hug:

[24601]

36. How can they steal it if your payments have been made? Are they

claiming you didn't?

[midnight]

35. I guess those in charge have no intention of sharing...

[Moonbat2]

20. Who's really "stealing"

If the homeowner is not paying there mortgage(not even trying now)yet still living in the residence for 1-2 years, who is the thief?

[Jazzgirl]

27. Why don't you do some searching before you

imply Tridim is stealing. Just sayin'.....

[Robbien]

28. Banksters who may or may not have the mortgages are saying homeowners are in default

Banksters who have been proven to have submitted fraudulent papers claiming ownership (thus criminals) are saying homeowners haven't been paying them.

Why should homeowners be thrown out on the street on fraudulent papers? They could be homeowners in good standing regularly paying their mortgage to another bankster. Who knows?

Nothing here is proven. Nothing.

A criminal bankster submitting fraudulent papers to the court deserves nothing.

That is what this situation is all about.

[Moonbat2]

29. get real

not crossing a t or dotting an I is not criminal
being a squatter is criminal

[Robbien]

31. Paying people to certify that a bank owns a mortgage without actually having the note is fraud

Banksters giving that fraudulent paper to judges in order to steal people's houses is criminal.

Banksters should be sitting behind bars for forgery and theft.

Yes, someone should be checking to see who has the note and whether the homeowner is paying to the actual holders of that note, but that's another story.

The story here is that banksters are submitting forgeries to judges in order to fraudulently receive someone's property. That's fraud and theft.

Forgery and theft is not just "not crossing a t or dotting an I".

[aquart]

34. Collecting money without proof it is owed IS criminal.

And if the homeowner pays the mortgage money to the bank that cannot prove ownership of the debt, the bank that does own the paper can still demand to be paid.

Do you think a debt should be paid TWICE?

[SOS]

40. The biggest fraud ever perpetrated in US history reduced to "not crossing a t".

Presenting forged documents to a court is criminal.

Since you trust banks over homeowners, here's a great way to invest all of your assets:

"Make More with Mortgage-backed Securities"

Who should buy Mortgage-backed Securities?
Mortgage-backed Securities are ideal for investors interested in safety and income.

http://www.allstarstocks.com/gpage1.html

Since banks "are not criminal" you should feel comfortable investing everything you have.

[aquart]

33. Welcome to DU.

May your short stay be a happy one.

[blue sky at night]

13. I'll tell you what's really important too.......

that Cordray gets re-elected on Tuesday!! Hear that OHIO, you know what is right, now let's get it done.

[EFerrari]

14. Does the AG have any authority in the matter? I don't think so.

Here in CA, Jerry Brown called for a moratorium but he can't actually make one happen.

[Robbien]

15. They don't have authority to stop foreclosures BUT

they do have authority on how to treat the fraud perpetrated by the banksters. So far no banksters have been tried criminally for fraud.

Piss off the AGs of all fifty states and that situation may change.

[EFerrari]

16. Maybe something will shake loose after the election. n/t

[lonestarnot]

17. K & R!

[Xipe Totec]

18. No Evildovers allowed. nt

[dkf]

19. What we need are strong whistle blower laws where people get paid for turning others in.

That would fix these systems.

Then all these liar loans would never have been approved and all those people would have never bought a place or obligated themselves to anything. They would be renting...as they should have been all along.

[Moonbat2]

22. I don't understand

your point. I am not sure what you are trying to convey

[dkf]

24. People got into loans that were too much for them.

The problems started at the beginning of the situation when the qualifications were fudged. The foreclosure screwups are only the tail end of a huge debacle.

[Moonbat2]

25. I Agree

that people were getting qualified for more than they should have but they were "riding the gravy train" borrowing against their mortgage
just to buy toys or take nice vacations. My feeling is that they are responsible for the choices they made.The people I am talking about are not stupid and were not duped, they thought the party would never end and lived well beyond there means

[Robbien]

26. This is not about foreclosures. This is about fraud. Bankster fraud

Banksters who do not have proof of ownership of mortgages are paying people to commit forgery and certify that the banksters DO have proof of ownership of mortgages. Then the banksters foreclose upon properties for which they don't legally have rights.

All mortgages are in question here. All of them.

But every single time banksters are clearly in the wrong, some posters here at DU quickly come out pointing fingers at homeowners (thus protecting banksters) and muddying up the situation.

This is not about foreclosures.

This is about banks claiming ownership where they have no proof of ownership.

They buy forgers. They buy judges. They buy politicians.

Then people are out on the street and grinning banksters get paid for forged documents.

[glitch]

30. AND maybe State AGs don't have a role in foreclosures, the DO have a BIG role in FRAUD. Go AGs!

Thanks for the thread, K & R

[dkf]

37. Yet how many mortgages were granted fraudulently?

When examining the pools of loans they found up to half weren't underwritten as described. That means half the loans shouldn't have been given. If all these loans were being paid up properly because people had the wherewithal to pay them there would not have been so many foreclosures and therefore why would anyone have not done a proper job?

The foreclosure fraud stems from the overwhelming number of people who can't pay their mortgages. It simply became unmanageable. But these employees should not have signed on procedures they did not execute. Workers also need to be kept accountable.

[Robbien]

39. You seem to only be super angry at homeowners and give everyone else a pass

Credit Suisse says that by 2006, 49% of all mortgage originations were liars loans. Independent studies suggest that by then some degree of fraud was present in 80 – 90% of those loans. There was fraud every step of the way: Borrowers lied, appraisers overvalued, brokers oversold risky loans to unqualified buyers and coached them how to lie, securitizers sold the same loans multiple times, credit rating agencies knowingly overrated securities for fees and investment banks colluded with hedge funds.

from http://www.msnbc.msn.com/id/31510813/#39836703


At the top of the heap of fraudsters, billions were made by banksters/hedges. Billions were made by securitizers, credit raters, etc. Hundreds of millions were made by brokers, appraisers, etc.

At the bottom of the heap, homeowners overpaid for their homes and paid the price by paying huge monthly payments until they couldn't afford to do so anymore. Sure they may have had several months of "free" rent, but by the end of the day they are broke.

Now banksters are committing fraud again expecting additional billions in profit and the ONLY thing you focus your hatred on is the broke homeowner. Something is seriously wrong with your perspective.

[dkf]

41. I am mad at all the crooked people in this entire mess....

The realtors, the appraisers, the loan officers, the home owners, the underwriters, the credit rating agencies, and yes the investment banks.

All of them wanted too much and they lied, cheated and over extended and all are complicit.

But the only one we here want to give a free pass to is the homeowners and I'm not standing for that either.

The only entity that can make this right is the SEC who can subpoena the underlying mortgage pools so that investors can get enough data to win their court cases. That is the way to make the banks pay.

But individuals do not get free houses for their part in this mess either. They are also guilty of fraud because many knew they couldn't pay or should have known if only they could read and had rudimentary math skills to add up a budget.

For those who lost their jobs, I empathize completely. But here is where I blame this administration for botching up job creation. Throwing HCR, financial reform, and uncertain tax brackets at potential employers is just too much and plainly counterproductive. They need to get their agencies to come out with rules ASAP so people can figure out what is going on and make some plans. The Democrats played politics with the tax vote and that is simply wrong. Ironically if the Repubs get the house they will vote to extend all the cuts and the Dems will have lost the house and lost their ability to dictate tax policy.

[CRH]

23. Might work in Ohio, but in the states, ...

that home prices have depreciated significantly, leaving many underwater, failure and foreclosure are also needed. It possibly is politically popular to contest on technicalities, but a person who has not paid their mortgage for six months, a year, or more, and cannot re-fi or find a solution for modification, sadly must be allowed to fail. It might be ugly and messy, but foreclosures in these instances need to continue, if future real estate markets are to benefit the many in the future.

To remain in the ashes of destruction, benefits not the past, not the present, or the future.

Sometimes hard realities need come to bear.

[The Uncola]

38. Excellent! Kick those greedy ..

.. bastards in gonads and keep 'em pinned to the ground. No economic justice, no peace!