CHECK OUT OUR EXTENDED DECEMBER SPECIAL!
What’s the Next Step? Consult with Neil Garfield
For assistance with presenting a case for wrongful foreclosure, please call 520-405-1688, customer service, who will put you in touch with an attorney in the states of Florida, Tennessee, Georgia, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).
So, why that mysterious $114 billion bank deposits withdrawal in early January?
Editor’s Summary: While there are always cycles of withdrawals and deposits, the sudden withdrawal of $114 Billion from depository accounts at the major banks is causing something of a mystery. My guess is that it is combination of a loop created by the banks who siphoned out critically needed capital from the this Country, plus movement caused by lack of confidence in the U.S. dollar and lack of confidence in the banks — or to put it more bluntly, outright distrust of those banks. The loop is a time honored technique borrowing from the practice of kiting. Instead of creating money out of nothing it does the reverse: it takes real money and hides it in the loop so it is virtually always in transit and never in any account for long.
For litigators doing foreclosure defense and other mortgage disputes, as they deny and discover pushing hard for the money trail, it will bring the truth out that the banks skimmed a great deal of money out of our financial system as soon as the banks had their hands on the money advanced by investors in bogus mortgage bonds. This is a hot bottom and you can expect a lot of flack as you get over the target of where the money went.
SIGTARP: ResCap executives highly paid right before bankruptcy
Editor’s summary: Millions of Dollars in excessive compensation was paid to executives of an Ally Financial subsidiary despite the impending bankruptcy. Why that wasn’t clawed back and why the law enforcement inquiries failed to inquire why the money was paid in a company going to crash mode is another mystery. And apparently it was done with the full knowledge and consent of the US Treasury department, courtesy of Hank Paulson, Bush’s treasury Secretary, and left to harden into a fair acommplit when Geithner came into the Obama administration.
Here is a theory about those sudden bonuses, options and salaries given to top executives of the nations worst actors in the mortgage meltdown: first it was hush money creating a “club” of those who knew that had been vastly overpaid and comfortable for life as long as they kept their mouths shut about what really happened in the sham securitization of mortgage loans. Second, is the component of greed that they managed in the chaos to take money out that belonged to investors and should have been credited to loan receivable accounts just because they could.
This is another hot button that brings litigators closer to suing individuals who diverted money that was available to pay down the amount due to investors and thus reduce the amount owed to investors from Borrowers and other co-obligors and guarantors.
http://www.housingwire.com/news/2013/01/28/sigtarp-rescap-executives-highly-paid-right-bankruptcy
Ex-Jefferies trader charged with defrauding TARP
Editor’s Summary: Throwing the sacrificial lamb under the bus: “Jesse Litvak, 38, is accused of inflating the cost of mortgage bonds when brokering sales by quoting a higher price to buyers than the sellers were actually seeking — or vice versa — and pocketing the difference for Jefferies (JEF). In other cases, Litvak allegedly told buyers that bonds held by Jefferies were being offered by fictitious third-party sellers, allowing him to charge extra for the transactions, federal officials said.”
Remember all that talk about the tier 2 yield spread premium and outright theft through fictitious transactions? Here is one the banks are giving up in the hope of crating the illusion that this was a isolated instance of a bad guy — who was merely following the model of the big banks. In a small operation like Jeffries there is little to claw back. In the large banks there are trillions that could be clawed back if the money can be found in the deposits and loops around the world (see above). Whatever happens to Jeffries should happen to all the big banks and “titans” of Wall Street who set up the structure, followed the plan and got away with the largest economic crime in history, affecting generations of people around the world.
http://money.cnn.com/2013/01/28/investing/jefferies-trader/
Eric Schneiderman: Mortgage Task Force Eyeing Broader Suits – The Untouchables
Editor’s Summary: Finally in New York, the first shoots of green are starting to appear from a task force that Obama set up to determine what REALLY happened to the U.S. economy and who should be held accountable.
Schneiderman, US Attorney in New York: “We found in several cases that we brought already — and we have other investigations under way — it was a sham. A lot of them used the same third-party due diligence firms to screen the loans. There’s evidence that they knew they were taking loans they shouldn’t take. There’s evidence that there were folks who tried to raise the alarm and were silenced. …”
Unlike previous investigations that got lost in the weeds this one, combining the resources of law enforcement, regulatory agencies and consultants is looking at the patterns of behavior and the system fraud at the core of the mortgage meltdown. Watch this case closely and get all you can from pleadings in court, because the agencies and law enforcement have the resources to retrieve the kind of information routinely denied to borrowers who are “making up excuses and wild defenses.”
With any luck at all, this task force will reveal that most of the homeowners were tricked in the same way that the investors were tricked and the defenses and counterclaims of homeowners have merit and require restitution and damages for obviously fraudulent mortgage origination and obvious faking of the securitization of the loans.
Fannie, Freddie program to allow underwater homeowners to walk away from mortgage
Editor’s Summary: What is different is that Fannie and Freddie are taking the proactive move of avoiding waves of foreclosures caused by people who simply abandon their homes leaving the entire process of foreclosure, questionable credit bids, and simply recognizing that people are not going to volunteer to sacrifice their lives for the banks.
This time it is aimed a those who have been paying their mortgage payments. This focus is an extreme divergence from industry consensus that caused all the banks and servicers that said to borrowers you must default on the loan before we can help you, and then proceeded to foreclose after the borrower went through the gyrations of lost and “unreceived” and deleted documents for a modification that was never going to happen anyway.
It also tacitly pivots the general view that borrowers are all deadbeats. Here we are strictly talking about the people who HAVE been paying their mortgage but are likely to walk from their property, and/or spend far less in a consumer driven economy because of their perception that their net worth has been eliminated or largely diminished.
Fannie and Freddie are neither depository institutions nor lenders. The phrase used in the industry is that the loan was “bought” by the GSE’s who do not buy anything, loan anything or even handle the money from payments or hedge products from insurance and credit default swaps. The GSE’s add a stamp of “Approval” for a guarantee backed by the full faith and credit of the the United States. The loans are actually purchased when they are sold and supposedly securitized in the secondary market with Fannie and Freddie being the Master Trustee.
While tens of thousands of foreclosures are filed each month claiming tacitly or overtly that they represent one of the GSE’s, the fact remains that neither Fannie nor Freddie even know the action is pending. This is exactly the same method used withe the “trustees”of the investment pools who know nothing, do nothing and never handle a dime — which is just like the MERS model where claims are made under cover of apparently authentic documents that were fabricated and forged.
MERS doesn’t know how many foreclosures were conducted in its name because it doesn’t care. They never touch a dime, submit a bid, or act on the order lifting stay in bankruptcy court. Someone else does all that, submits the credit bid from a non-creditor all without seeking or getting an order lifting the stay.
Add to this Mix the fact that Fannie and Freddie are suing and settling cases in which the loans are “put back” to the investment bank, and you get a real stew that stinks. This leaves the investment banks wide open for a direct suit from the borrowers and investors because they are now holding the the supposed asset but the investment bank doesn’t appear anywhere on the foreclosure forms.
http://agbeat.com/housing-news/fannie-freddie-allow-underwater-homeowners-to-walk-away/
We enter now the fifth inning of a nine inning game that might extend into overtime. Between the crunch from the government, the crunch from investors, the crunch from the GSE’s and the crunch from hundreds of thousands of borrowers who now realize that part or all of their secured loan was never properly originated and thereafter was paid down by third parties, the banks are headed for some rocky shores.
The Wall Street spin is about to become unraveled and the ratings of those written off as lunatics will become known as prescient. Unlike some, my articles here are based upon information provided by anonymous sources who know the actual facts, people, places, methods and goals of the banks. It is the same old story: you can fool all of the people some of the time, and you can fool some of the people all the time, but you can’t fool all the people all the time.
I still have hope that the oligopoly created by the banks that controls our ability to function as a society, that influences to a great degree what laws are passed, will be broken, like they were one hundred years ago under Teddy Roosevelt.
Search Our Blog
Categories
Contact Our National Headquarters Phone: 844-583-5339
Connect with us
Contact Our National Headquarters
- 844-583-5339
- Available 24/7
-
200 S. Andrews Ave. Ste. 604
Ft. Lauderdale, FL 33301