COMBO TITLE AND SECURITIZATION SEARCH, REPORT, ANALYSIS ON LUMINAQ EDITOR’S NOTE: In 1983 the nominal value of credit derivatives was zero. Today it is over $600 TRILLION. None of this would have been possible without the active complicity of credit rating companies who as quasi public agencies “assured” the quality of securities sold to both …
APPRAISERS AND CREDIT RATING COMPANIES ARE GETTING AWAY WITH IT TOO Read More »
From Brian Davies COMMENTS ON CALIFORNIA MELLO ROOS FRAUDS PERPETRATED BY LENNAR, RYAND, SUNCAL. THE BUILDERS AND SUNCAL THE DEVELOPER FUNDED BY LEHMAN BROTHERS GOT THE APPRAISER (IN THE 990 PAGE MELLO ROOS DOCUMENT ATTACHED) TO SAY THAT A RECENTLY SOLD DEVELOPMENT WAS WORTH $81 MILLION. THIS APPRAISER FRAUD WAS BASED ON SALES PRICES TO …
COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary We now have a growing group of unlikely bedfellows — investors, homeowners and local governments who were all duped and whose claims are being treated as though each one was unique when in fact the entire plan was a highly organized crime. Add the Federal …
LOCAL GOVERNMENTS UNDERWATER: TIME TO CORRECT PRINCIPAL BALANCES Read More »
SEE ALSO securitization-understanding-the-risks-and-rewards?page=1 Subprime debacle – the truth emerges: Part 2 Posted by Anthony Harrington, October 28, 2010 Recommend this Article 0 Comments Login to add your comment Anthony Harrington Amongst the real horrors perpetrated during the subprime disaster, such as the many outright frauds practised on US homebuyers who should never have been re-mortgaging …
Harrington: eloquent account of the law of unintended consequences of APPRAISAL FRAUD Read More »
SERVICES YOU NEED The common thread is they were lying. They lied when they said these were AAA rated liquid investments based upon industry standard underwriting standards for residential mortgages They lied when they said this property is worth more than the principal that was borrowed. They lied when they said these loans are in …
TURNING A DEFENSE INTO AN AFFIRMATIVE DEFENSE FOR SET OFF AND A CLAIM OR COUNTERCLAIM FOR DAMAGES AND ATTORNEY FEES So the question is how would you allocate third party payments and what difference will that make to a Judge hearing the case. ASSUMPTION: XYZ Investment Banking Holding company has received a total of $50 …
Allocation of Third Party Payments and Loans to Specific Loan Accounts Read More »
I’m told by some industry insiders that you can buy a piece of our loan for pennies on the dollar, much the same as NPR did when they wanted to track the money and documents through the securitization structure. That’s a good goal because it will give you “inside information” on what the pretender lenders …
APPRAISAL FRAUD IS THE ACT OF GIVING A RATING OR VALUE TO A HOME THAT IS WRONG — AND THE APPRAISER KNOWS IT IS WRONG. This can’t be performed in a vacuum because there are so many players who are involved. They ALL must be complicit in the deceit leading to the homeowner signing on …
Editors Note: If anything shows the extent of appraisal fraud, it is the sheer number of homes that are under water. These figures while high, report only a fraction of the actual number of homes because of the way they are computed. If you take the asking price, reduce it by at least 4% (which …
Editor’s Note: Hard to say which way this will go, but it SHOULD go negative for Moody’s, Fitch and Standard and Poor’s. This was appraisal fraud at the OTHER end of the lending chain. Investors were misled as to the value of the security not only because the home appraisals were inflated, and not only …
Moody's Gets Notice from SEC: May Lose Status as Rating Agency Read More »
Editor’s Comment: Appraisal fraud, ratings fraud, misrepresentation, steering investors and borrowers in the wrong direction — all of these amount to the same thing: DECEIT. And as everyone knows, when someone is bilked out of money or value through deceit, they are entitled to made whole — as close as possible, and probably entitled to …
Insider Confirms Builder Complicity in Appraisal Fraud Read More »
Editor’s Comment: Home builders made out like bandits as they were complicit in the rampant appraisal fraud that served as the keystone of the mortgage meltdown. Both the homes that were sold and the securities that were sold to fund the mortgages were inflated in the same way. But on the homeowner side there was …
Editor’s Note: The significance of this announcement is that the bondholders, who were insured directly by AMBAC (as opposed to the investment bankers who bought “bets” like credit default swaps) are receiving 25 cents on every dollar they funded as creditors for the funding of loan to homeowners (debtors/ borrowers). This supports and corroborates two …
Ambac Clients May Receive 25 Cents on Dollar in Cash Read More »
“(T)he differences between the values ascribed to these properties and the prices at which the properties were sold in foreclosure are significantly greater than the declines in house prices in the same geographical areas over the same periods,” Editor’s Comment: BINGO! Use this complaint for both discovery and as a pleading guide. Send me a …
Bank Accuses Investment Houses of Lying About Mortgage Backed Bonds Read More »
Rizk was sentenced by United States District Judge Dean D. Pregerson, who warned that other professional real estate appraisers should know that if they inflate appraisals and lie about the value of homes, “there is an overwhelming likelihood that they will be caught and go to prison.“ Lila Rizk, 43, Rancho Santa Margarita, California, a former state-licensed …
Appraiser Sentenced in Massive Mortgage Fraud Case Read More »
OK I’m upping the ante here with some techno-speak. But I’ll try to make it as simple as possible. YIELD is the percentage or dollar return on investment. For example, if you buy a bond for $1,000 and the interest rate is 5%, the yield is 5%. You are expecting to receive $50 per year …
Yield Spread Premiums Prove Appraisal Fraud: The Key to Understanding The Mortgage Mess Read More »
In the complaint, the plaintiffs’ lawyers contend that Credit Suisse and Cushman & Wakefield conspired by setting up a Cayman Islands branch to circumvent federal law on real estate appraisals. Credit Suisse knew the resorts would most likely default under the weight of inflated values, which would allow the bank to take ownership as agent …
Credit Suisse Appraisal Fraud Cited by Investors Read More »
Appraisal negligence and/or fraud is overlooked by many. Appraisers are usually licensed and insured. Filing a complaint with the licensing board as well as sending a demand letter to them to forward to their carrier could produce some substantial results. And remember that the originating “LENDER” supposedly has a committee or person verifying the appraisal …
Appraisal Malpractice as State Court Action — Albright Case 561 So 2d 1326 5th DCA Read More »
From Mario Kenny — see comments posted to blog As we have stated repeatedly, the logistics were simple: (a) inflate the value of the mortgage backed securities with fraudulently obtained Triple AAA Ratings and (b) inflating the value of the home with fraudulent and negligent use of false comparable and ignoring time factors. The economics …
August 4, 2008 20 MILLION HOMES TO HAVE NEGATIVE EQUITY Housing Lenders Fear Bigger Wave of Loan Defaults By VIKAS BAJAJ The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building. Homeowners with good credit are falling behind on their payments …
20 MILLION HOMES TO HAVE NEGATIVE EQUITY — THE RESULT OF LENDER INDUCED APPRAISAL FRAUD Read More »
QUESTION/COMMENT: ANSWERS IN BOLD A client in NorCal was referred to me. She took out an 80/20 loan first and second for about $650,000 total in 2005. She has paid over $150,000 towards interest, payments and fees. SEE APPRAISAL FRAUD, CNN ARTICLE FOR 2005, APPRAISAL FORUM SPEECH FROM 2006, RECENT POSTS. TITLE COMPANY/TRUSTEE, LENDER AND …
FORECLOSURE DEFENSE AND OFFENSE DISCUSSED: APPRAISAL FRAUD Read More »
more than 8,000 appraisers – roughly 10 percent of the industry – have signed a petition asking the federal government to take action. “There are a lot of people who have refinanced for more than their homes are actually worth and they’re effectively already upside down even without a real estate bubble bursting,” said Callahan. …
“Fraud is an intentional and material misrepresentation. A faulty or even fake appraisal is at the basis of most fraudulent mortgage transactions.” Most Fraud Charges Not Investigated by Lew Sichelman October 18, 2006 A lack of enforcement at the state level is a major reason appraisals remain at the root of mortgage fraud, said panelists …
