PR STRESS TEST: GMAC, CHASE say loans OK

It should come as no surprise that GMAC and probably a succession of other pretender lenders will come to the same conclusion: there is no defect in the loans and the foreclosures will proceed. That’s like asking the fox if he knows what happened to the chickens. Jamie Dimon, announcing that Chase has not been using MERS since 2008, tried to put a good face on the whole process. The message is clear — the paperwork process was messed up but the foreclosures will proceed. They will find another way to clear things up.

The point here is that you must be prepared to meet the argument that they used the best experts they could find and that the securitizations did not materially vary from the terms of the agreements, that the loans are owned by the pools and that the pools are properly represented in court. Sorry we used faulty filings before but that is all corrected now.

SO we are back to evidence. Does the Judge let them get away with that “representation” or does he make them prove it, as he/she should? If nothing else, there should be no doubt that there is a question of fact as to ownership and the issue of the accounting from the real creditor, yet to be identified, has not even been addressed.

Thus the moratorium is a smoke screen like the Geithner stress test back in 2009 where they wanted to assure the public and our foreign counterparts that our banks were safe and sound. They were not, as the the litany of failed banks told the story. The big ones are only “safe and sound” if you ignore the fact that virtually all their capital is composed of ill-gotten gains and illusory assets. The mortgages are fatally defective and nearly worthless — unsecured and offset by loss mitigation payments and claims from borrowers and investors who were defrauded. They can say what they want. Your job is to make them prove it. Don’t wait for discovery, press it early. Jon Lindeman’s success is based largely on the fact that he presses for discovery at the earliest moment it he is allowed to file for it. You do the same.

Posted in bubble, Corruption, Eviction, securities fraud |