Feb
24

The Ed Morrissey Show: Duane “Generalissimo” Patterson & the Week in Review

3 pm ET, 90 minutes!


Today, on the Ed Morrissey Show (3 pm ET), we’ll take a look at the past week with Duane “Generalissimo” Patterson of the Hugh Hewitt Show. Duane and I will talk about media bigotry, media bias, and how the twain often meets.  Plus, we’ll go over Wednesday’s debate and the news from the campaign trail. [...]

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Feb
24

Jeb Bush: “I used to be a conservative”

Used to be?


Jeb Bush isn’t sure where he fits in the panoply of Republican Party leaders anymore. During a Q&A session after a speech in Dallas yesterday, the former Florida governor confessed that he doesn’t know what to make of the direction the current GOP candidates have taken Republican rhetoric: “I used to be a conservative and [...]

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Feb
24

Mark Stopa | Return of Original Note/Mortgage – After a Settlement

“My concern is far greater than this one case. I’ve seen this issue far too often, and I see it as an industry-wide problem. Any time there’s a short sale or deed in lieu with a deficiency waiver, there should be no need for the original Note and Mortgage to be returned to the Plaintiff, … Read more Related posts:
  1. Mark Stopa | Plaintiff as Servicer? I Think Not.
  2. Action Alert | The Case of The Disappearing Docket Entry re: Alleged Original Note & Mortgage
  3. Mark Stopa | Fraudclosure – The Wizard Behind the Curtain
Feb
24

Mark Stopa | Return of Original Note/Mortgage – After a Settlement

“My concern is far greater than this one case. I’ve seen this issue far too often, and I see it as an industry-wide problem. Any time there’s a short sale or deed in lieu with a deficiency waiver, there should be no need for the original Note and Mortgage to be returned to the Plaintiff, … Read more Related posts:
  1. Mark Stopa | Plaintiff as Servicer? I Think Not.
  2. Action Alert | The Case of The Disappearing Docket Entry re: Alleged Original Note & Mortgage
  3. Mark Stopa | Fraudclosure – The Wizard Behind the Curtain
Feb
24

Insider Says Wells Fargo’s Independent Foreclosure Review for OCC is “a Sham”

 

 

I got an email the other night from one of my readers.  It said…

 

“I was hired as one of those “Independent File Review Specialist” at a company called Promontory working on Wells Fargo Bank. I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment.  I must say the whole project is a mess, and a terrible joke on the victims of foreclosure and the American people. It’s a total sham.”

 

No kidding, I said to myself.  Or, as Yves Smith would say… “Quelle surprise.”  The email continued…

 

“I have found errors that should be moved up through the ranks, but am told “quit digging so deep”…”put your shovel away”…Focus on the questions “in scope”… The review forms are set up so no harm could ever be found. It’s equivalent of an attorney presenting his case to a judge with just 20% of the evidence.”

 

Well, that can’t be good, right?  He went on…

 

“I would also like to mention that I was brought in through a temp agency…..some of the people brought in with me do not know the difference between a truth in lending statement, and a note. It’s a shame, these are your reviewers!!! The supervisors don’t want any trouble…they are mostly temps too, just trying to get a promotion to full time. Does this sound like a fair and impartial review to you? Since we’re temps I suppose that’s impartial, not to mention they made us “affiant notaries” so we can so-called “notarize each others reviews.”

 

Doesn’t sound “fair and impartial” in the least, now does it?  But I do like the ability to notarize each other’s reviews.  That sounds handier than a pocket on a man’s shirt.  He closed by saying…

 

“The foreclosed victims don’t realize if they do not provide specific dates on the intake forms… their complaints are considered “general comments” out of scope. They should specifically ask for a “full file review” and hopefully their info has not been scrubbed or purged… I could go on and on, but I just felt I needed to share this.”

 

And in my opinion, you’ve done a very good thing.

 

Our insider says he was hired by Promontory Compliance Solutions, LLC to do work on the Independent Foreclosure Review for Wells Fargo Bank.  The company’s Website describes itself as follows:

 

Promontory excels at helping financial companies grapple with and resolve critical issues, particularly those with a regulatory dimension. Taken as a whole, Promontory professionals have unparalleled regulatory credibility and insight, and we provide our clients with frank, proactive advice informed by evolving best practices and regulatory expectations.

Promontory is a leading strategy, risk management and regulatory compliance consulting firm focusing primarily on the financial services industry. Led by our Founder and CEO, Eugene A. Ludwig, former U.S. Comptroller of the Currency, our professionals have deep and varied expertise gained through decades of experience as senior leaders of regulatory bodies, financial institutions and Fortune 100 corporations. 

 

The company’s founder and Chief Executive Officer is Eugene Ludwig.  According to the company’s Website…

 

“Gene, the Founder and Chief Executive Officer of Promontory Financial Group, is a trusted adviser to many of the world’s leading financial companies. He is widely recognized as a farsighted thinker on the most pressing issues confronting financial services. Before founding Promontory, Gene served under President Clinton as U.S. Comptroller of the Currency, the head of the federal agency responsible for supervising the preponderance of U.S. banking assets. He went on to become Vice Chairman and Senior Control Officer of Bankers Trust/Deutsche Bank.”

“As Promontory’s Chief Executive Officer, Gene provides hands-on leadership and direction to all our global offices.”

The company’s co-founder, Senior Partner, and Chief Strategy Officer is Alfred Moses, and here’s what the Website says about Mr. Moses:

“For more than 40 years, Mr. Moses was a partner in the Washington, D.C., law firm of Covington & Burling. His public service has included terms as Special Adviser and Special Counsel to President Jimmy Carter; as American Ambassador to Romania; and as Special Presidential Envoy for the Cyprus Conflict.”

 

Now, I am not suggesting that either Mr. Ludwig or Mr, Moses are involved in the OCC Complaint review process in any way, and neither is the insider who works there.  But, they do own the company and as such, they are ultimately responsible for what goes on there.  It is my most sincere hope that they fix whatever is apparently broken about the independent review process.

 

Now, I realize that no one was terribly impressed with the OCC’s independent review process when it was announced, and a big part of the dissatisfaction was based on the apparent lack of true independence of the company’s that were being hired to do the reviewing.  But, that didn’t bother me as much as it did others because I think it’s pretty much impossible to find a company in this country capable of handling the requirements of the review that doesn’t already have a relationship with the large banks.

 

I thought, Gretchen Morgenson, did a darn fine job reporting on the various opinions of the program’s inadequacies.  For example, in her column that appeared in the New York Times on Christmas Eve last year, she wrote: “Nye Lavalle, a foreclosure fraud expert who began warning bank executives about bad lending practices back in 1999, is troubled by this situation.”  Nye had told Gretchen: “This review process is a wink-wink, nod-nod.”  (By the way, I just did a Mandelman Matters podcast with Nye and Max Gardner, so look for that this weekend.)

 

Yves Smith on Naked Capitalism also pummeled the obvious inadequacies of the OCC’s process, pointing out flaws including the limited years being reviewed, 2009 and 2010, and borrowers asked to sign some sort of limited release of future claims.  Yves referred to it as, “yet another Obama Administration pretend we are helping ordinary citizens when we are in fact helping the banks” scheme.”

~~~

This, however, is not any of that.  The things told to me by the file reviewer are indicative of a process engineered to find nothing wrong, regardless of the truth of the matter.  And that’s very different from potential conflicts of interest or other such issues.  Here are just a few of the things the file reviewer told me about the process that caused me to feel both angry and sad.

  • File reviewers are only allowed to look at the “last added and removed” dates.  This is the last time the file was opened by a servicing representative before it was removed/referred to attorney for foreclosure.  So they are only getting to review the file at the very end, meaning that’s the only data that’s being examined to determine if anything was done incorrectly.
  • File reviewers get the intake form, which is what the homeowner submitted, and use it to answers questions on Promontory’s form, with drop down options depending on boxes checked. However, if there are no specific dates provided by the homeowner regarding the circumstance being described, the policy is that it’s considered “General Commentary’ it is “not in scope.”  So, it’s disregarded in its entirety.  The thing is that on the official form sent out to homeowners by the OCC, there is no instruction to provide dates for each assertion, with the exception of one of the questions where it says, “if possible provide dates.”   As a result, I would suspect that the vast majority of complaints will be disregarded as “General Commentary.”

Independent Foreclosure Review Form

  • When a file reviewer looks for payment history, oftentimes it comes up as “image not available” or “this time period not available.”  They say that they keep the payment history on microfiche, so he’s told to order a sub-process to get payment history from God knows where, and it takes weeks.  So, whoever gets his request knows exactly what he wants to look at any why, and therefore has the opportunity to scrub the data, to eliminate escrows misapplied or not applied or any inappropriate fees.
  • Supervisors told his entire group that “Wells Fargo had submitted over 10,000 files to Promentory.  Only 4 were found to be in question, and upon final review by Wells, no harm was found.”  So, 10,000 homeowners submitted their complaints and all 10,000 were deemed to be models of perfection.
  • Every problem/error he has found and reported to supervisors, he has been told such things as: “put your shovel away; stop digging; if you look long enough at anything you’ll find something; put your blinders back on and get back to work.”
  • He also says that the questions on Promontory’s form are worded in such a way that it makes it very difficult to ever find fault.  For example, by using compound questions, he is often told to answer “no,” when the first part of the question would be a “yes.”
  • They made the file reviewers, “affiant notaries,” so that they can so-callednotarize each others reviews.”

Here’s a copy of the actual agreement between Promontory and Wells Fargo… it’s 137 pages long, incredibly detailed… SMOKE SCREEN.
Wfb Promotory Agreement

Okay, there’s more… but that’s enough for right now.  I’d like to make a point here.

Everyone knew the OCC’s review process was a stacked deck, but I was willing to let that go, which apparently proves that I’m an overly trusting idiot.  Wait… that wasn’t my point.

 

My point is that for Wells Fargo, a stacked deck apparently wasn’t good enough.  In a game against homeowners, Wells had to have all the cards and then be allowed to deal them without anyone looking so that they could just lay down Royal Straight Flush after Royal Straight Flush.

 

I mean, basically EVERYONE thinks of the OCC as being a regulator that’s straight out of a Marx Bros. movie.  It wouldn’t matter what the OCC said at this point, no one has any confidence in them to be able to do anything effectively, in terms of regulation.  Personally, I’m not banking at anything regulated by the OCC anymore.  It’s become clear that they’re either so entirely bought off, or so entirely incompetent that they’re actually scaring me.

 

Want to know how bad it is?  The OCC makes the SEC look like the Gestapo of Wall Street, right?  Exactly.

 

But, I want to make sure I say this… I don’t believe for a moment that Promontory implemented such a system and set of policies without Wells making it clear that it’s what the bank wanted.  It would be impossible for Promontory to do it on their own… Wells had to be in the drivers seat here.  And that stinks.

 

Let’s just do a quick recap here… it all started with robo-signing making headlines in September of 2010.  GMAC was busted by Jeffrey Stephan’s deposition by attorney (and good friend of mine), Tom Cox of Portland, Maine.  Within days, other banks were feigning shock and announcing “self-imposed moratoriums,” so they could ascertain to what degree they might unknowingly be doing it too.  It’s really kind of hysterical to think about it today, right?  I mean, in light of what John O’Brian, Jeff Thigpen, and most recently San Francisco has brought to light?

 

Not that I ever had any doubt… I knew it was ubiquitous from day one.  Why, because if you’re a bank… then robo-signing is simply not an idea that appears on a list with other ideas.  No one sitting around the conference table on the 32nd floor says:

 

“No, go back one slide… I like the one where we have everyone sign Mickey Mouse.  Yeah, let’s go with that.”

 

I even wrote a song about it when it was revealed that GMAC had not stopped robo-signing even after they had been exposed and then told not to do it anymore.  I guess, Massachusetts Attorney General Martha Coakley was the last straw and GMAC picked up their sandbox toys and stormed out of the state in a huff.

 

So, most of the banks stopped foreclosing so they could do their own internal investigations… okay, it was ridiculous… but it happened.  And after a couple of weeks, they all started back up again, or that’s what they said anyway, having investigated without finding a shred of evidence that anything was amiss.

 

Except Wells Fargo, remember?  I sure as heck do… I never forget a fake.  While BofA and JPMorgan were voluntarily suspending foreclosures pending their own investigations, Wells Fargo was assuring the marketplace that it was certainly not their problem and that there was no need for them to even slow down, let alone stop foreclosing.  They were down right dismissive about the whole thing, which is what made what happened next so great.

 

Does anyone know how to pronounce “Xee Moua?”  (Lord, this is fun.)  Yes, in a deposition of Xee Moua, just two weeks later on October 14, 2010, she said she signed as many as 500 foreclosure related papers per day on behalf of Wells Fargo, and that the only information she verified was that her name and title were spelled correctly.  When the lawyer asked whether she checked the amount owed by the borrower, she said, “I do not.”

 

And if memory serves, Wells Fargo’s response was… “No comment.”  To which I replied, “Hahahahahahaha.”

 

But, I”m not laughing about what’s going on a promontory Compliance Solutions on behalf of Wells Fargo Bank.  Because it’s not the least bit funny.  The OCC, the Federal Reserve and the FDIC said they had all investigated… and at the conclusion of those investigations, the OCC issued “consent orders,” and we all read them.  And they said, among a whole lot of other things, that the banks we employing “UNSAFE AND UNSOUND PRACTICES.”  And the CEOs and other senior executives all signed those “consent orders.”

 

And then months went by, and finally the OCC announced that the time had finally come for some small measure of justice to be meted out to the homeowners who had been victimized by the banks’ “unsafe and unsound practices.”  The homeowners wouldn’t have to sue the banks, the OCC would make certain that the banks were made to compensate those they had wronged.

 

And even though I, like everyone else, didn’t have much faith and recognized that the deck was stacked as I mentioned above, I told people they should not just ignore it out of hand.  I told my readers that I didn’t believe they should asume that no relief would be possible… it sure sounded like the OCC meant business.  It couldn’t hurt anything, and maybe… they’d get something out of it.  I know… the review’s aren’t exactly “independent,” but still… I think it’s worth doing.

 

And Wells Fargo… you should know something about me.  My readers trust me.  Because I never lie to them.  And I take that trust very seriously.  They also ask my opinions on things, and tend to think that opinion is right, especially about something like this.  And yet, after three and a half years and more than 600 articles… long articles, I know, I know… you, Wells Fargo made me wrong.  So, to my readers I apologize, I had no idea that Wells Fargo Bank would even contemplate these sort of deplorable  acts.

 

You had everything in your favor, but you couldn’t even play it fair under those circumstances.  I’m done with you.  Doesn’t Warren Buffett own part of you?  What say you Oracle of Omaha?

 

“It takes 20 years to build a reputation and five minutes to ruin it.  If you think about that, you’ll do things differently.”

 

Who said that, Mr. Buffett?  That would be you, sir.

 

Well… the way I see it, Wells Fargo has deceived the victims of the bank’s unsafe and unsound practices, as determined by an investigation by the OCC, the FDIC and the Federal Reserve, by at least attempting to deprive them of what they were promised.  I have nothing else to say.  It’s not funny.  Not at all.

 

Want to know something?  If I got caught doing something like this… I’d probably leave the country.  I’m not saying anyone else should do that, but I would be so ashamed… oh, wait… I just realized something… if I got caught doing something like this, I’d be arrested and thrown in jail.  That’s right, I wouldn’t have to worry about being ashamed.  Whew… I didn’t know where I was going with that for a moment.

 

What follows is a podcast featuring the “whistle blower”… the anonymous independent file reviewer working for Promontory on the Wells Fargo Bank account that reached out to us because he was fed up.  I verified his identity and spoke with him at length.  His voice has been disguised in order to protect his identity.  Turn up your speakers and click play… it’s fascinating and terrifying and sickening all at the same time.

I had to modify his voice to protect his identity, so it may be difficult to understand him right in the beginning for a few seconds, but you’ll adjust so stay with it and you’ll hear him.  Also, the whole thing is about 15 minutes long, so I hope you stay with it until the end because I included a recently recorded song written and produced by my good friend from Northern California, Denny Armstrong.  It’s good and very uplifting… in a patriotic sort of way,

There will be more to come in the days ahead.

 Mandelman & Field out.

 

Feb
23

Texas A&M students petition for affirmative action for athletic teams

Why does no one want to sign?


This video could have used a few more voices — and the audio is a little patchy in spots — but it makes the point effectively: Some of the same people who support affirmative action when it is applied to the university admissions process don’t support it when it is applied to the athletics recruiting [...]

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Feb
22

Wells Fargo Bank and Patricia Martin Part 2 – A Bank that Cannot Be Trusted

 

Okay, so here’s a quick recap, in case you’re coming in late, followed by an update that demonstrates very clearly why I say that Wells Fargo Bank and the law firm,  Anglin, Flewelling, Rasmussen, Campbell & Trytten LLP… cannot be trusted.

 

First the Short Recap…

 

Patricia Martin, age 65, having lived in her home for 44 years, had major back surgery, so she had to send her daughter into the bank to make two payments.  There were late fees of about $80 a month, but the person at Wells Fargo said they could be paid later, and accepted the check for the two payments.

 

The following month, October, Patricia’s home heating system required major repairs, so the next time she was able to make her mortgage payment was the following month, November.  But, when she tried to make the payment, the bank said that she hadn’t made the September payment, and in fact, she was in default, and had to come up with $4829.96 by November 30th, or the bank would foreclose.

 

What the bank had done was deduct her late fees instead of crediting her payment in September, just like they said they were NOT going to do.  They told her she would have to get a copy of the check and send it in to Wells to have it credited properly.  She did that, but it didn’t matter, because…

 

Wells Fargo did have an idea though… they told her she should apply for a loan modification and that would take care of the back payments.  Oh, joy!  What a great solution, right?

 

Well, not so much.  And for the rest of the year Wells Fargo refused to accept her continuous offers to make her payments and bring the loan current.  Wells Fargo turned her down for a loan modification because they said she failed the NPV… but that was wrong… the bank was using a valuation of $370,000 and the home’s only worth $300,000.  (Wells said they’d re-run the NPV test with the correct valuation, but when they re-ran the test, they used the $370,000 again.)

 

And, to make a long incredibly awful story short, Wells Fargo ended buying her home at a trustee sale for $298,000… like it should have been worth in the NPV test, you might recall.

 

The bottom-line is, as anyone should be able to clearly see… Patricia Martin should NOT have lost her home and Wells Fargo SHOULD help her get it back with a modified payment so she can continue to live in the home she should NEVER have lost in the first place.

 

So… I wrote all about Patricia’s situation the day before yesterday and my DOERS started emailing and calling immediately.  Certainly, many hundreds of people got involved, and yet Patricia’s lawyer heard nothing from Wells or their law firm.

 

The Update… Why Wells Fargo Cannot be Trusted

 

Patricia’s attorney, Mark Zanides, got in his car and drove the five or so hours up to Pismo Beach to appear at the Unlawful Detainer action, at which Wells Fargo and their lawyers planned to have Patricia evicted from her home.

 

It didn’t work.  Although the judge in the case started out accusing Mark of trying to delay and seemed very unlikely to allow that to happen, Mark turned things around and ultimately the judge signed a Temporary Restraining Order, so for the moment he has stopped the eviction from proceeding.

 

But, that only means a delay… and that I’m going to take this fight up a great BIG notch or two, and here’s why… what Wells Fargo Bank did today demonstrated to me that they DO NOT CARE and CANNOT BE TRUSTED.

 

First of all, Wells Fargo’s chosen law firm didn’t even show up in court… they literally phoned it in… I mean they participated by calling into the court on the phone.  And I absolutely HATE that.

 

A human being is potentially losing their home… being evicted.  You should have to come in because people communicate better in person and perhaps the person being evicted would like some extra time or some other concession… and whether you agree or don’t… the right thing to do is to get off your ass, out of your office… and into your Mercedes so you can be in court to look them in the eye, and if necessary hear their tears… you worthless, chicken-shit, foreclosure mill pieces of legal trash.

 

Oh, and by the way… Anglin, Flewelling, Rasmussen, Campbell & Trytten LLP… allow me to introduce myself since I don’t believe we’ve met. You can call me Mandelman, and I’ll be the highly ranked and widely read blogger that will be soiling page one of your Google search page from here on out.  (Can you imagine what it will look like a year from now… think “David Stern West,” and it’ll come to you.)

 

And, Lynette Gridiron Winston… since you’re the lawyer going after Patricia, you might as well Google me as well.  Fun!

 

Wells Fargo through their lawyer, Lynn Gridiron Winston heard Patricia’s attorney explain what had occurred.  Their defense to the allegations?  You won’t believe it…

 

Basically, Gridiron said that Wells Fargo may very well have told Patricia’s daughter that the $82 and change late fee could be paid later, last September when she made the two payments, but it wasn’t in writing so it doesn’t matter.

 

In lawyer-speak, Gridiron cited the “statute of frauds,” saying… “Any alleged oral representations are not enforceable.” 

 

The other way she defended this indefensible position, was to say that it wasn’t clear that Patricia’s check for the two payments was negotiated by the bank, because they said… they couldn’t read the Wells Fargo endorsement stamp on the back of the photocopy of the CANCELLED CHECK.

 

“Plaintiff is not entitled to injunctive relief… “ blah, blah, blah.

 

Memo to lawyers everywhere… this is NOT how you handle this type of situation in our society.  The rest of us find it so objectionable and odious that were we to read in the paper of a lawyer being run over by the fast moving car of a homeowner, as a result of such behavior, we’d be like, “Wow, no kidding.  Are you done with the Sports section?  Thanks.”

 

Let me tell you why…

  • Because it has nothing to do with the statute of frauds.  If a Wells Fargo employee tells someone they can pay the late fee later, then they can.  And if that’s no longer true, then fine… Wells Fargo Cannot Be Trusted, and the entire country needs to be informed that this is the way things are, because it didn’t used to be so.
  • I’ll be happy to lead the charge on the P.R. campaign… and there’s no need to thank me as I’m quite sure that I’ll have lots of help.  I couldn’t do it alone, don’t you know.
  • (In fact, by the way, my partner, Abigail Field is writing about this situation this very evening.  So, just imagine where this thing is going from here… what’s the word they use for these sorts of effects… it’s a math term… oh yeah… exponential.)
  • Now onto the check issue… You know damn well that Wells Fargo negotiated Patricia’s check because Wells Fargo knows it because Wells Fargo GOT THE MONEY.  And if that’s no longer the case, then the public needs to know that Wells Fargo can no longer be depended on to keep track of money or checks that are cashed… and I’ll go ahead and throw that into the aforementioned P.R. campaign as well… no extra charge.

 

Okay, Wells Fargo… so, let me see if I can guess what happened here…

 

I wrote about this two days ago and about a thousand of our DOERS called and wrote in to say that you should not do this… but it was President’s Day and you checked with the lawyers and they told you everything was fine and that you’d be evicting Patricia no problem… so you got up on your hind legs and took a shot.

 

“Screw him, “ one of your inappropriately overconfident executives said about me to himself.

 

Am I close?  I’m thinking I am.  You see… I’m not just some kid or some activist wearing sandals… can you read between the lines here?  I don’t want to do any of this, which is to say that I don’t want to have to write this sort of thing once… and you’re now making me write it twice.

 

Well, I’ve got some GOOD NEWS and some BAD NEWS, which do you want first?  How about the good news?  Okay…

 

The GOOD NEWS is that it looks like you’ve given me a new part-time job, so thanks for that!  And not only that, but as of tomorrow, I’ll be your newest shareholder, so I’m really looking forward to seeing everyone at the annual meeting.

 

The bad news is that I’m just getting started here.

 

Mandelman out.

 

Please send an email to John Stumpf and others at Wells Fargo and tell them how you feel and that they need to stop the eviction by canceling tomorrow’s UD proceedings and give this woman her home back.

 # # #

Chairman of the Board, President, CEO: John.G.Stumpf@wellsfargo.com

~~~~

John Stumpf (415) 396-7018

Feb
21

Price Check | An Example of the Cost of Securitization Fail and Fraudclosure to Retirement Funds, Pensions & Municipalities

Price Check A particularly determined opponent of fraudclosures refused to allow his constitutional property rights and his constitutional due process rights to be violated. He fought and fought and fought. Mr. Duvall’s case went all the way up to the Ohio Supreme Court, where the fraudclosing entity realized the weakness of their position and the … Read more Related posts:
  1. Suntrust & BoA Securitization Fail = Fraudclosure + More Unendorsed Notes
  2. Sat. Oct 15th SAVE THE DATE – SARASOTA, FLORIDA – FRAUD AWARENESS TEACH IN (Property Records, Investments by Pensions & Municipalities, Foreclosure)
  3. Ohio FRAUDclosure Blogger Brief to Supreme Court of Ohio
Feb
21

Two Sets of Books | Loan Balance – MBS Report Conflicts with Servicer Affidavits Presented to Courts & Homeowners

Two Sets of Books This is a whole ‘nother kettle of stinking fish. Again, these insolvent banks prove that they are all making up these facts, sums, figures, and accounting tricks. Here is one example from a fraudclosure on Amos Delva’s home. There’s all manner of fraudclosure tactics involved, including unreported modification payments, magically appearing … Read more Related posts:
  1. New Florida Attorney General Report on Fraudclosures Presented to the FL Senate Banking and Insurance Committee
  2. GAO Finds Serious Conflicts at the Fed | The Sanders Report on the GAO Audit on Major Conflicts of Interest at the Federal Reserve
  3. EXCLUSIVE | The Sophisticated and the Scammed – MBS Trusts Keeping Assets on the Books Long After they are Liquidated
Feb
21

The Disorderly Default in Your Closet Eupdate

Another day, another Greek deal to end them all (more on that soon). Amid the political din, legal and financial complexity, one thing has struck me: the entire enterprise is being justified as a way to avoid "disorderly default." But what exactly is disorderly default--that scary monster in the closet keeping many Eurocrats, foreign bondholders, and Greeks awake at night--and is it really the sole unthinkable alternative to the mess of the past year and, perhaps, some years to come?

Disorderly default, one that comes as a surprise to the markets, leading to contagion, capital flight, bank runs, a crashing collapse of the Euro, and widespread litigation, is surely unappetizing. But the alternative to disorderly default might also be a priced-in default with minimal contagion, a contentious restructuring with lots of litigation, or a slow-bleed near-default, complete with capital flight and bank runs, which destroys trust and political capital, depletes and redistributes resources that might have gone to finance recovery (see Roubini & Setser) ... and ends in default.

Mind you, I am not advocating disorderly default, but rather suggesting that it is of a piece with order, chaos, and other pure, but under-specified alternatives to messy reality. Disorderly default is evil in the same way that pristinely orderly bankruptcy is good. By taking default (orderly or otherwise) off the table early in the crisis, while refusing to finance a credible alternative, the European political leaders may have chosen the worst of all options.

As grandpa used to say, it is much better to be rich and healthy than to be poor and sick.

Feb
19

America is Being Stolen, One Piece of Land At A Time… Who Is The Wizard Behind The Curtain?

America is Being Stolen, One Piece of Land At A Time…Who Is The Wizard Behind The Curtain? A sane person would think that if parties were going to be throwing millions of people out of their homes and into the streets, collecting hundreds of millions of dollars in the process and performing the single largest … Read more Related posts:
  1. Mark Stopa | Fraudclosure – The Wizard Behind the Curtain
  2. Open Letter to Ohio Attorney General Cordray RE: Chase Home Finance, LLC – Across America: Wrongful foreclosures & Corrupted Land Records
  3. Pulling Back the Curtain: Exposing the 1% Behind the 2011 Big Bank Bonuses
Feb
17

REPORT | FORECLOSURE IN CALIFORNIA A CRISIS OF COMPLIANCE

~ 4closureFraud.org TweetRelated posts: California Audit Finds Broad Irregularities in Foreclosures, 84 Percent of the Files Contained what Appear to be Clear Violations of Law 2004 Report on Predatory Lending & Servicing Practices & Their Effect on Corporate Compliance, Conduct, Ethics & Accounting HUD’s Report to Congress on the Root Causes of the Foreclosure Fraud … Read more Related posts:
  1. California Audit Finds Broad Irregularities in Foreclosures, 84 Percent of the Files Contained what Appear to be Clear Violations of Law
  2. 2004 Report on Predatory Lending & Servicing Practices & Their Effect on Corporate Compliance, Conduct, Ethics & Accounting
  3. HUD’s Report to Congress on the Root Causes of the Foreclosure Fraud Crisis
Feb
15

OCC/FED Press Release | Deadline to Request Review Under the Independent Foreclosure Review Extended to July 31

For immediate release February 15, 2012 Deadline to Request Review Under the Independent Foreclosure Review Extended to July 31 WASHINGTON–People seeking a review of their mortgage foreclosures under the Federal banking agencies’ Independent Foreclosure Review now have until July 31, 2012, to submit their requests. The Office of the Comptroller of the Currency (OCC) and … Read more Related posts:
  1. Independent Foreclosure Review | OCC Says Independent Consultants Can’t Contact Borrowers
  2. Federal Reserve’s Independent Foreclosure Review and HAMP Escalations Review
  3. The OCC Independent Review | Fraudclosure Review Application Tips & Traps
Feb
15

OCC/FED Press Release | Deadline to Request Review Under the Independent Foreclosure Review Extended to July 31

For immediate release February 15, 2012 Deadline to Request Review Under the Independent Foreclosure Review Extended to July 31 WASHINGTON–People seeking a review of their mortgage foreclosures under the Federal banking agencies’ Independent Foreclosure Review now have until July 31, 2012, to submit their requests. The Office of the Comptroller of the Currency (OCC) and … Read more Related posts:
  1. Independent Foreclosure Review | OCC Says Independent Consultants Can’t Contact Borrowers
  2. Federal Reserve’s Independent Foreclosure Review and HAMP Escalations Review
  3. The OCC Independent Review | Fraudclosure Review Application Tips & Traps
Feb
14

The Florida Fair Foreclosure Act of 2012 & Our Rally in Tallly Feb 16th – What You Need to Know

FEBRUARY 16, 2012 / NATIONAL FORECLOSURE AWARENESS DAY Several Florida legislature bills, including HB 213 and the amended PCB, sponsored by Kathleen Passidomo backed by The Bankers Association, are attempting to make Florida a non-judicial state which would preclude homeowners from defending a foreclosure in order to “fast track” the foreclosure process, denying Floridians their … Read more Related posts:
  1. Mortgage Justice Group to Protest The Florida (un)Fair Foreclosure Act in Tallahassee on Febuary 16, 2012
  2. RALLY IN TALLY NATIONAL FORECLOSURE AWARENESS DAY FEBRUARY 16, 2012
  3. Rally in Tally | National Foreclosure Awareness Day Febuary 16, 2012
Feb
14

Mark Hansen | Foreclosures & REO RAISE House Prices, Economic Activity & Taxes (WTF?)

Foreclosures & REO RAISE House Prices, Economic Activity & Taxes. How did Everybody get Brainwashed to think otherwise? The entire world is now brainwashed to think foreclosures are a bad thing for the housing market. Perhaps four years ago when a million loans all went into default & Foreclosure at the same time but not … Read more Related posts:
  1. MIT, Harvard Report: Forced Sales and House Prices – Foreclosures Reduce Home Values by 27%
  2. CoreLogic | House Prices Decline for Seventh Straight Month, 6.7% Over the Last Year, Off 34.5% from the Peak
  3. Bank of Japan | U.S. Foreclosures, House Prices, and the Real Economy
Feb
14

Mark Hansen | Foreclosures & REO RAISE House Prices, Economic Activity & Taxes (WTF?)

Foreclosures & REO RAISE House Prices, Economic Activity & Taxes. How did Everybody get Brainwashed to think otherwise? The entire world is now brainwashed to think foreclosures are a bad thing for the housing market. Perhaps four years ago when a million loans all went into default & Foreclosure at the same time but not … Read more Related posts:
  1. MIT, Harvard Report: Forced Sales and House Prices – Foreclosures Reduce Home Values by 27%
  2. CoreLogic | House Prices Decline for Seventh Straight Month, 6.7% Over the Last Year, Off 34.5% from the Peak
  3. Bank of Japan | U.S. Foreclosures, House Prices, and the Real Economy
Feb
13

Lanny Breuer, Eliot Spitzer, Mary Jo White, & Neil Barofsky | Crooks on the Loose? Did Felons Get a Free Pass in the Financial Crisis? (VIDEO)

More than three years after the one of the worst financial crises in U.S. history, the government has been severely criticized for its failure to criminally prosecute senior executives at the Wall Street banks that helped cause the meltdown. Have the feds been soft on banking execs? Are laws on the books inadequate for holding … Read more Related posts:
  1. Up with Chris Hayes | Eliot Spitzer on the 50 State Fraudclosure Settlement “NO, NO, NO, NO” (VIDEO)
  2. Dylan Ratigan | Eliot Spitzer: “In retrospect, I wish we had put more people in handcuffs.”
  3. 6:30pm-8:30pm Oct 11 -NY,NY (& Web) Eliot Spitzer & ProPublica Discuss The Wall Street Money Machine
Feb
13

Lender Processing Services | The Law Firm of Levi & Korsinsky LLP Launches an Investigation Into Possible Breaches of Fiduciary Duties by the Board of Directors

The Law Firm of Levi & Korsinsky LLP Launches an Investigation Into Possible Breaches of Fiduciary Duties by the Board of Directors of Lender Processing Services, Inc. NEW YORK, Feb 10, 2012 (BUSINESS WIRE) — Levi & Korsinsky announces an investigation of possible breaches of fiduciary duties by the Board of Directors and certain officers … Read more Related posts:
  1. David J. Stern DJSP Hit With Another Investigation into Possible Breaches of Fiduciary Duties
  2. Naked Capitalism | More on Corruption in the Florida Attorney General’s Office: Staff Intervenes to Help Lender Processing Services When it is the Target of a Fraud Investigation
  3. FL AG Subpoena’s on Ben-Ezra Katz & Marshall C. Watson RE Investigation Into Fidelity National Financial (FNF) and Lender Processing Services (LPS)
Feb
13

Florida’s Frankenstein Foreclosure Act, House Bill 213 and the 2/16 Rally in Tally

MAKE PLANS TO COME TO TALLAHASSEE NEXT THURSDAY 2/16/2012! Let’s be honest about what this legislation and all this effort is. The banksters, the document mills and the foreclosure firms have made an absolute disaster of their own files and our court system. Remember that, because the elected people in Tallahassee don’t seem to get … Read more Related posts:
  1. Rally in Tally WEAR 3 News Top Stories Video – Home Owners Facing Foreclosure came to the Capitol Wednesday to Drive a Stake in the Heart of the Bill
  2. The Florida (un)Fair Foreclosure Bill Passes Florida House Economic Affairs Committee 12-4
  3. Rally in Tally March 9th 2011 | Own a Business in Florida? SB1288 & HB799 The Nonjudicial Commercial Foreclosure Bills
Feb
13

Florida’s Frankenstein Foreclosure Act, House Bill 213 and the 2/16 Rally in Tally

MAKE PLANS TO COME TO TALLAHASSEE NEXT THURSDAY 2/16/2012! Let’s be honest about what this legislation and all this effort is. The banksters, the document mills and the foreclosure firms have made an absolute disaster of their own files and our court system. Remember that, because the elected people in Tallahassee don’t seem to get … Read more Related posts:
  1. Rally in Tally WEAR 3 News Top Stories Video – Home Owners Facing Foreclosure came to the Capitol Wednesday to Drive a Stake in the Heart of the Bill
  2. The Florida (un)Fair Foreclosure Bill Passes Florida House Economic Affairs Committee 12-4
  3. Rally in Tally March 9th 2011 | Own a Business in Florida? SB1288 & HB799 The Nonjudicial Commercial Foreclosure Bills
Feb
12

Matt Taibbi | Why the Foreclosure Deal May Not Be So Hot After All

Why the Foreclosure Deal May Not Be So Hot After All So the foreclosure settlement is through. A few weeks back, I was optimistic about it – I had been worried that it was going to contain broad liability waivers for all sorts of activities, and I was pleasantly surprised when I heard that its … Read more Related posts:
  1. Matt Taibbi | Obama Goes All Out For Dirty Banker Deal
  2. Foreclosure Fraud – MSNBC Video w/ Cenk & Matt Taibbi
  3. Another Bombshell Interview – Matt Taibbi and Chris Hayes Discuss Foreclosure Crisis
Feb
09

Schneiderman: Civil & Criminal Investigations Will Continue As We Seek Accountability For Those Responsible For Crisis And Leverage Greater Relief For Homeowners

A.G. SCHNEIDERMAN SECURES $136 MILLION FOR STRUGGLING NEW YORK HOMEOWNERS IN MORTGAGE SERVICING SETTLEMENT After Schneiderman’s Persistence, Narrow Settlement Preserves Sweeping Legal Claims For Housing Crisis Misconduct That Has Not Yet Been Investigated New York To Receive More Per Underwater Borrower Than Any Other State, Plus Loan Modifications, Principal Reductions Schneiderman: Civil & Criminal Investigations … Read more No related posts.
Feb
07

Fraud Digest | DocX, LLC., a Subsidiary of Lender Processing Services (“LPS”) & Lorraine O. Brown Indicted on Criminal Forgery Charges

Action Date: February 7, 2012 Location: Boone Country, MO DocX, LLC, a mortgage document company and a subsidiary of Lender Processing Services (“LPS”) in Jacksonville, Florida, was indicted on February 6, 2012, by a grand jury in Boone County, Missouri. Lorraine O’Reilly Brown, a former Senior Vice President of Lender Processing Services, and the founder … Read more No related posts.
Feb
06

Dylan Ratigan & Beau Biden | State AG and Federal Government Stand-Off Over Big Banks (VIDEO)

Delaware Attorney General Beau Biden joins MSNBC’s Dylan Ratigan to discuss his refusal to sign the government’s 25-billion dollar settlement against ‘fraudclosure’ at the banks. ~ 4closureFraud.org TweetRelated posts: Dylan Ratigan | Beau Biden on his Fight to Investigage the Banks Dylan Ratigan | Delaware AG Beau Biden: Fighting Fraudclosure Dylan Ratigan | Fixing America’s … Read more Related posts:
  1. Dylan Ratigan | Beau Biden on his Fight to Investigage the Banks
  2. Dylan Ratigan | Delaware AG Beau Biden: Fighting Fraudclosure
  3. Dylan Ratigan | Fixing America’s Foreclosure Problem (VIDEO)
Feb
04

Attorney Wins “Free House” in Case Before 9th Circuit Court of Appeals – A Mandelman Matters Podcast

 

 

When it comes to defending homeowners against wrongful foreclosure, or suing banks on behalf of homeowners, Attorney Nathan Fransen, of the firm Fransen & Molinaro in Corona, California is a very smart, experienced and dedicated attorney.  This I know for a fact.

How do I know this?  It’s simple.  Over the last few years, I’ve watched him literally bang his head against the wall as California’s courts have unabashedly approved of MERS, disregarded flaws in the securitization process, not cared one bit who signed what, and in general ignored everything having to do with foreclosure cases except the fact that the borrowers hadn’t made mortgage payments in so many months.  He argued complex legal theory and simple fraud… he was honing his approach, and although he had his share of frustrating days, he was careful which cases he took on, never following an unproductive path twice.  I’d refer potential clients to him fairly often, and in most cases, he’d talk them out of filing suit against whoever they had thought they had wanted to file suit against.

Don’t tell him I said it, but he’s also just generally a very smart person, you know, paid attention in school kind of person… fairly well-read… knew about things outside his area of expertise… the whole bit.  He also had both the patience and ability to explain things about the law to me when I was frustrated over how things weren’t working.  When someone can keep complicated things simple, you know they understand them inside and out… and when they can hold their own in a debate with me… well, I’m sorry but that’s saying something.

So, he called me a few weeks back and told me quite nonchalantly that he’d had a very good week.  I was happy to hear that someone had.  What was so good about it?  Well, he had won two of his cases and at least one would result in his client getting a “free house.”  The other might be a free house too, or maybe just a pretty good size pile of money.  It’s true… Nathan had gone in front of the 9th Circuit Court of Appeals… his first time, by the way… and beaten US Bank, hands down… in Causey v. US Bank.

It seemed to me to be an impressive win, because he was appealing after losing in the lower court.  He’s smart, patient and methodical… three things that tend to pay off eventually, but he wasn’t just going up against US Bank… no, he was going up against the dreaded “free house,” meaning that if the court ruled in his favor, his client would no longer have a mortgage secured by real property.  At best, the amount owed would be unsecured debt, like credit card debt, and that would mean it could potentially be discharged in bankruptcy.

But, don’t jump to conclusions because it’s not what you’re thinking.

He showed me how I could actually listen to him argue the case in court, the 9th Circuit has audio files of the courtroom proceedings online, and listening to it was fascinating.  So I figured out how to download it and then convert it to a file format that I could put inside a podcast.  Then I asked him to comment before and after the case so listeners would really get valuable information and be able to learn from his experience.

I don’t want to spoil it, so I won’t say anything more… well, okay I’ll say one more thing.  As I listened to him argue his case in court, one thing came through loud and clear: Judges hate the dreaded “free house.”

This is one Mandelman Matters Podcast that you definitely don’t want to miss.  Nathan sets it up in the beginning, then you hear the audio of the actual courtroom arguments, both his and the lawyer for US Bank… and then he and I argue various topics such as whether robo-signing should be prosecuted and by whom, along with several other things that I know are frustrating homeowners today.

This is the real deal… you could call it “reality podcasting.”  Turn up your speakers, sit back, relax, and listen as three justices from the 9th Circuit Court of Appeals struggle to balance the rule of law against the dreaded “free house.”  I hope you enjoy it as much as I did… 

 

CLICK BELOW:

Mandelman Out.

Feb
04

Press Release | EDWARDS & CLARKSON Release Statement on the Bondi / Atwater Inspector General Report

EDWARDS & CLARKSON, P.A. 412 N.E. 4th Street Ft. Lauderdale, Florida 33301 954.463.5266 February 4, 2012 PRESS RELEASE The scathing rebuke by the “Report of Inquiry” of our investigations into abuses of Floridians in the wave of foreclosures overtaking the State is impossible to reconcile with our outstanding evaluations, awards and recognition bestowed on us … Read more No related posts.
Feb
03

The Ed Morrissey Show: Duane “Generalissimo” Patterson & the Week in Review!

3 pm ET, 90 minutes!


Today, on the Ed Morrissey Show (3 pm ET), we’ll take a look at the past week with Duane “Generalissimo” Patterson of the Hugh Hewitt Show. Duane and I will talk about the week’s news from the Republican primary, the controversy involving the Susan G Komen Foundation and Planned Parenthood, and the latest on the [...]

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Feb
03

A.G. SCHNEIDERMAN ANNOUNCES MAJOR LAWSUIT AGAINST NATION’S LARGEST BANKS FOR DECEPTIVE & FRAUDULENT USE OF ELECTRONIC MORTGAGE REGISTRY

A.G. SCHNEIDERMAN ANNOUNCES MAJOR LAWSUIT AGAINST NATION’S LARGEST BANKS FOR DECEPTIVE & FRAUDULENT USE OF ELECTRONIC MORTGAGE REGISTRY Complaint Charges Use Of MERS By Bank Of America, J.P. Morgan Chase, And Wells Fargo Resulted In Fraudulent Foreclosure Filings Servicers And MERS Filed Improper Foreclosure Actions Where Authority To Sue Was Questionable Schneiderman: MERS And Servicers … Read more No related posts.
Feb
03

Should Holder walk the plank for Fast & Furious, or be pushed?

Plus, "wherever you're from"?


To call Eric Holder’s performance yesterday at the House Oversight Committee hearing unimpressive is to turn understatement into a kind of art form.  The Washington Examiner called it “petulant, angry, and defiant,” and Holder more concerned about how Congress treats him than the hundreds of dead bodies strewn about Mexico and the US from weapons [...]

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