News, Research & Insights for American Homeowners, Patriots & Constitutional Conservatives
"The real key to the distinctiveness of America is the structure of our govenment."
It is a shame that Reuters was about the only media outlet to report on this part of this week’s Senate Judiciary Committee hearing: Supreme Court Justice Antonin Scalia on Wednesday rejected concerns by Americans of a dysfunctional government because of disagreements and difficulty in getting legislation through Congress. Such complaints escalated earlier this year [...]
RIP.
We knew it was coming but that doesn’t make it easier. Horrendous. We are deeply saddened to announce that Steve Jobs passed away today. Steve’s brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve. His greatest love was [...]
Love fest.
I’m heading back home after spending the weekend at TeaCon Midwest 2011 in Chicago, staged by WIND 560 AM at the Renaissance Hotel (actually in the Chicago suburb of Schaumberg). Glenn Beck delivered the keynote speech last night, a passionate entreaty for Tea Party activists to go beyond politics and change the nation through examples [...]
All about the love.
It’s time once again to show your love for Obama — or at least the biggest Obamateurism this week! We’ll only get one leader, which means we’ll have four trailers, but at least it beats gutters. In the end, we’ll just export the losers and let the winner take a bow in the finals, so [...]
Or, why I love Bob Turner.
The more I learn about this guy, the more I like him. He’s green, to be sure: Two days ago, after an interview with Megyn Kelly on “America Live,” he stood up so abruptly he blocked her camera shot and she had to call him out on it (in forceful, friendly, classic Kelly style). But [...]
Bad relationships.
We can’t let the week go without adding this to the OOTD canon: Yes, it’s an ad-libbed response, but cheers of “We love you!” aren’t exactly unknown at Obama rallies. And it seems as though Obama was waiting for just this kind of outburst to tell the crowd, “I love you. But if you love [...]
"This is a campaign."
More evidence that Obama’s jobs plan isn’t resonating as much more than a reelection effort. As Greg Hengler at Townhall.com asks, what do you do when even your fans laugh at you? I’d love to just see the video cut to repeat Carney’s quote, “The president is campaigning. The president is campaigning.” Here’s another fun [...]
Handouts don't help.
Like Fanny Price’s mother in Mansfield Park, those who marry for love only to live in poverty might actually advise singles to seek out a marriage of money and convenience. Studies have repeatedly shown that low-income couples report less marital satisfaction and commitment. But, fortunately, through programs like Medicaid and food stamps, the government provides assistance [...]
Contrast
Pay no attention to those sagging poll numbers or the public’s rather dismal view of Barack Obama’s handling of the economy. In the view of the White House, this too shall pass. The cure for such political doldrums? Just wait until the public gets a load of these Republican clowns who want to replace him! [...]
Plus, was Perry right about Fed policy?
Anyone expecting Rick Perry to ease up on the throttle a bit as a presidential contender will likely be disappointed with his remarks yesterday in New Hampshire — but Republicans will likely be delighted, even if they’re not on board with Perry. The Boston Herald followed Perry’s trip in New Hampshire, where the Texas governor [...]
"The Tea Party [is] a spontaneous American expression of shock and concern over spending."
Why I love Sen. Jeff Sessions (R-Ala.), reason No. 825 (still the number of days the Senate hasn’t passed a budget!): Tea Party trash-talking has crept from the extreme corners of the progressive movement to NYT columnists to the second-highest seat in the country (although Vice President Joe Biden denies it), but Sessions doesn’t take it. [...]
"This is about America, and what's good for this country."
Why I love Sen. Jeff Sessions (R-Ala.), reason No. 821 (heh — look at that, the same number as the number of days the Senate hasn’t passed a budget) … Here’s video of the excellent floor speech he delivered this morning (an excerpt of which I published in an earlier post): “The president said—really—this is [...]
The Consent Orders issued by federal banking regulators a few weeks back said that the country’s largest bank-servicers had to conduct “a thorough independent review” of their foreclosures.
So, on Friday, the OCC met with representatives from the banks to hand them their marching orders. According to American Banker magazine, the bankers were hoping to be instructed to review a few hundred cases, but instead they got a lot more than they’d hoped.
The OCC’s deputy comptroller for large banks, Joe Evers, told American Banker:
“Just pulling a high-level sample isn’t going to cut it. Some of the early thinking we’ve heard of isn’t acceptable. … If anyone thinks there are going to be shortcuts here, it’s not going to happen.”
Okay, so you get that far and you’re thinking: “Wow, cool. Could it be that…?”
And then WHAMO! You get kicked right in the stomach and all the air rushes out of you… you can’t breathe… or if you can, then you just don’t want to.
I’m not a lawyer, so could one of the lawyers reading this please write in and remind me which article of, or amendment to the constitution covers the whole “sealed and secret” thing. Or is it covered by statute, as in perhaps the, “Sealed and Secret Act of 1922.” I only ask because I’m a taxpayer, no big deal.
American Banker says that the scale of the reviews means that Bank of America and Wells Fargo will each have to allow auditors to review thousands of foreclosure files, with dates from Joanuary of 2009 through December 2010. And the OCC says that if they find mistakes… I love it when they call stealing someone’s house a “mistake”… they will broaden their review to incorporate the entire portfolio of necessary… and that they will look at even more files from the six states with the highest numbers of foreclosures.
Evers went on to say that, “even a single error in the sample population is going to require a deeper dive.” The independent auditors will determine if a given “mistake” resulted in financial damages.
The OCC also mandated the design and publication of a “consumer complaint review process.” The idea is that borrowers who lost homes to foreclosure will now be able to complain to an independent auditor… who will do what? Get their house back? Send over a hooker? What will the independent auditor do in response to a homeowner’s complaint? Where’s the rest of that sentence?
Sorry, stuff like that makes me crazed. How can they fail to finish a sent…
Want to have some fun… let’s start a pool on number of complaints received by bank at end of first week, second week, and so on. Oh wait, never mind… we’ll never know the real numbers, will we… no… I forgot.
The OCC urged banks to build the consumer complaint process and channel for communication immediately… so whatever that means in terms completion… I wouldn’t have any idea. In fact, truth be told, I don’t care when they start, I only care when they’re done and yet the OCC tells me the part of the story I could care less about… again. As of right now, I’d peg the completion date sometime between this summer and… the end of time.
The OCC is saying that borrowers will be guaranteed a response from the auditors, so if they don’t get a response they get their home free and clear? No, then what’s the guarantee? A gift certificate? movie tickets… come on, give them something.
And wee already know that the borrower, assuming they do get a response, will never know who specifically adjudicated the complaint, because the OCC is not even disclosing the identities of the companies conducting the reviews Not even the investors who lost money as a result of the servicers practices won’t know who was used or what they found.
Sheila Bair, now a short-timer as chair of the FDIC, argued in front of the Senate Banking Committee this past Friday for both “thoroughness and transparency” of these reviews. Sheila’s point was well taken when she said that only “credible and public reviews” will be accepted by the public and therefore allow the industry to go forward.
No kidding, Sheila… in fact, at this point in the game… I’m not sure I’d believe anything said by a bank or servicer… what would lead me to think they might not be lying? Am I forgetting something? Did they tell the truth once in 2005 and it’s slipped my mind?
As quoted in American Banker’s coverage of this announcement, Kathleen Day, for the Center for Responsible Lending, said:
“Unless they make that review process public, who is to believe it? We’re supposed to take the banks’ and the OCC’s word on this?”
The OCC will have law firms reviewing issues such as whether the servicers had proper legal standing in foreclosure cases, and I’m sure these are law firms that don’t represent banks or want to get future legal work from banks, so let’s not start worrying about that.
Wait, what did I just say? The only type of lawyers that don’t represent banks or want future work from banks… and that are qualified to review issues such as proper standing in a foreclosure case are foreclosure defense lawyers… are they getting the job? Why do I think the answer is no… and I’ll never know anyway, so what am I talking about?
The auditing of fees and penalties assessed will go to PricewaterhouseCoopers LLP, Navigant Consulting Inc. and Promontory Financial Group LLC, et al, which is funny because some of these companies are the same companies that were around when the failure in compliance were occurring… and still are occurring, so the question on everyone’s mind is whether the accounting firm can be credibly independent. And I say, after Enron, and the like… why would anyone think they could? If fees and/or penalties were charged incorrectly, the consulting firm will be responsible to calculate the financial injury to the borrower.
That sounds like a few people are going to find a couple of hundred bucks… it’ll be like a lottery.
In the American Banker story, right after it talked about this issue of whether firms like PwC could be credibly independent, it said: “A spokesman for PwC did not comment by press time.” Funny stuff in American Banker at times… they had to do that on purpose, right?
For example, one of the questions the external consultants are supposed to ask servicers is whether the servicers had adequate compliance and risk management systems to monitor themselves, which is awkward of your PwC and you were supposed to be supplying such systems to the servicer you’re now asking. Good grief, Charlie Brown, do you see how entirely worthless this is guaranteed to be?
The servicers and the OCC are said to still be debating the specifics of the reviews, such as whether a servicer that misidentified a property address in a foreclosure but still properly notified the defaulting borrower? Would that be considered a technical or a material flaw, would it require remuneration to the borrower, if so how much… and does the borrower prefer cash, check or charge… okay, not the last part.
Or, what if a borrower stopped making payments on a modified loan after a bank improperly notified her of its intent to foreclose?
I could care less about this entire exercise in futility because only regulators will know the results, so even if they try to present stats on how borrowers were improperly foreclosed upon, I can’t imagine anyone saying, “Oh, okay then,” and then leaving it at that.
I mean, it’s far from being a secret at this point that the lawyers who foreclosure for banks have no ethics whatsoever and have been willing to get involved in countless schemes to get around the laws, and that’s to say nothing of robo-signing documents presented in court.
David Dunn, a partner at the law firm Hogan Lovells, told American Banker:
“Were there significant numbers of people who were subjected to foreclosures where they shouldn’t have been? We don’t know the answer to that.”
Well, but that’s only because you’re a lazy and dishonest underachiever who hasn’t read a book since law school, right David?
Lastly, the reviewers are also going to be responsible for determining if borrowers were properly offered loan modifications and if servicers’ denials were done properly, and that should be worth the price of admissions, right there. And the OCC has said that the review of loan modification issues should not be limited to whether a bank’s own accounts showed the borrower was in default at the time of foreclosure.
The American Banker story using the following sentence to describe… I think… the money paid to borrowers should “mistakes” be uncovered… you know, like IF they are:
Only material errors will be eligible for redress, though the OCC has not yet determined how it would define such a benchmark.
Well… to wrap things up, I suppose I should say that with findings submitted directly to regulators, like the OCC, and not to the banks themselves, let alone to the public, I think this actually scores a bull’s eye as either the most insulting program design I have ever seen my government announce, or the most uncaring.
So, very well done, fellas in government… you have done it once again… you have managed to take something of critical importance to millions and after spending time and money, make it entirely worthless. It’s not that I didn’t figure this review thing would be useless… I did, and I wrote it in past articles so I’m on the record. I just failed to realize just HOW useless you could make something. You’ve really outdone yourselves and you should be quite proud.
That’s really something… I’m going to have to study your methodology here… it must be the key to consistently producing failed programs, because without the system, probability would dictate that you’d do something at least close to correctly, once in a great while… but no. Stunning… just stunning.
Mandelman out.
Federal Reserve Chairman Ben Bernanke did something the media is describing as being unprecedented… he held a televised meeting at which he read some Fed-type talking points and answered some questions. If I had to describe it in a word, I’d have to go with… hmm… I know… how about: Underwhelming.
I guess what lacked precedent is that he took questions from members of the press for about 45 minutes following a meeting of the Fed’s Board of Governors… something the Fed has never done before in its 98-year history, and that he’s threatening to do this sort of thing four times a year, instead of only when called to testify by congress.
First of all, essentially he didn’t say anything we didn’t already know. And he spoke like a Fed Chair… in Fed speak. Put it this way… I could have easily written his speech before he went on the air, and in fact I’m going to try to remember to do just that next time one of these transparency-fests is scheduled to air.
I guess if you’re a real Fed-watcher, it could have been considered somewhat interesting, I mean… until 1994, the Fed didn’t even publicly announce its policy changes, fearing that too much information in the hands of the people would lead to the utter destruction of the world as we know it.
So, he took questions for 45 minutes. You know, questions like… Is QE2 working?
And Bernanke said something to the effect of… Yes, it has worked, but it hasn’t solved everything.
I love it when he gets all technical like that.
Other take-aways that I took away include:
He said a lot of other things too. Here are some of the highlights with a few quotes from the AP:
1. He called for more lending to people and small businesses in lower-income neighborhoods, and said that they’ve been hurt a lot more by the recession than richer neighborhoods. He thinks we should lend to people and small businesses in “troubled communities” that have good credit… because “it will stimulate economic activity that generates local tax revenues.”
“Tax revenues can then be spent in the community redeveloping vacant properties, training people for new jobs, or on other economic development programs. That leads to more hiring and paychecks that can help poor homeowners avoid foreclosure, he said.”
Okay, that’s it… I’m convinced… Ben has never actually been to a “troubled community.” Would someone in Washington D.C please take him on a tour… pretty much anywhere Southeast will do… Minnesota Avenue, Lincoln Heights, I’m sure Anacostia is lovely this time of year. Take him anywhere outside of Northwest D.C. where he’s apparently been holed up ever since leaving Princeton. Introduce him around… see of you can check out a few credit scores of the folks while you’re there.
2. He also said that people who make less money fall behind on payments at a much higher rate than richer people. Not only that, but the Fed Chair has apparently figured out that poorer folk are also more likely to lose their jobs during the recession.
“Lost income from unemployment is causing families to fall behind on their mortgage payments, Bernanke said.”
Oh, look everyone… the Fed Chair has figured it out! I think I’m going to cry. And it’s only 2011. See, I told you it wouldn’t take him until 2015 like many of you said it would. I’m just so proud of him, I could plotz. But wait… he had more to say…
“A wave of foreclosures has led to more vacant homes in neighborhoods. That’s further depressed home values, attracted crime and created financial burdens for local governments, Bernanke said.”
Oh my God. I think he’s trying to say that foreclosures breed foreclosures. That’s a clever phrase… now, where have I heard that before? And isn’t that an absolutely stunning revelation from the Chairman of the Federal Reserve? Where is he getting this stuff? If I hadn’t seen the sentences come out of his mouth, I wouldn’t have believed it. Did someone hire him a tutor and not tell the rest of us? Who would have ever thunk it? Go figure.
He also said that the housing market is holding back the economic recovery. Isn’t that wonderful? I feel just like I did watching my daughter learn to read… admittedly she was four years old at the time and Ben has a salt & pepper beard, but it’s the same idea.
“Until vulnerable families and troubled communities have regained lost progress, the economic recovery will remain incomplete,” Bernanke said.
Why, that’s very good Benjamin, very good indeed. It seems that you may need a little help with the percentages involved, however. You see, when you’re talking about the percentage of the American people for whom the recovery is underway, you’re talking about roughly 1500 – 2,000 people in this country. And when you’re talking about the “vulnerable families and troubled communities,” you’re describing the balance of the U.S population, so figure about 300,000,000.
(I hope that’s helpful, Mr. Chairman… maybe you should write it on your hand so you don’t forget it when you’re in a meeting with the President or Timmy Geithner. I know… you don’t want to make them look bad… and you’re right… no one likes a show off, but think how cool it would be if you were to know something like that… something neither President Obama or the Treasury Secretary has ever considered? You’d be a star!)
Well, I for one am certainly relieved. And I’m truly sorry for criticizing him in the past for being an idiot incapable of learning things… he has proved me wrong and I’m a big enough person to come right out and admit it when I underestimate someone. I was wrong… Ben Bernanke is a genius.
I think I’ll go hit the sack… get some shut-eye… finally I can rest easy knowing that the country’s got crackerjack leaders like Ben Bernanke at the helm. YAWN… Yeppers… we’re going to be just fine, everyone… just fine and dandy.
Nighty night… and pleasant dreams, as my mother used to say…
Mandelman out.
I love that reruns of the Sopranos are back on. Remember Tony Soprano and the guys and the dark humor of the mafia? If they didn’t like someone, they were whacked….disappeared. But as I woke up this morning, I read on 4Closurefraud something that really blew my mind. It was an absolutely disturbing post from Mandelman Matters where he suggested that the banksters were able to make an entire piece of filed legislation….DISAPPEAR. (Full Story Here)
In the country of our civics books and history, I might say this was all some kind of internet conspiracy nut jobs, but this is the USA, the great criminal oligarchy where the banksters get away with anything. And this is certainly possible. Mandelman has certainly earned his chops, with great reporting and very powerful support for all those that are fighting. Where is the Arizona and national media on this story?
Please visit the Senator’s Page or email her directly mreagan@azleg.gov
Everyone in this Republic is entitled to know what happened in Arizona. Please join me in asking the senator to make a public statement about what happened here.
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I want to reach out to all of those unseen and unsung heroes and angels who got stuck within and caught up in the evil doings of the foreclosure and document mills. Judges, society and prosecutors will recognize those who directed the crimes and those who participated, but were unaware of the impact or the wrong. You still have time to protect yourselves and your families. Reach out again to those than can help you, the press, the prosecutors and attorneys who can give you safe harbor and protect you. I also wanted to share a passage that was recently passed along to me….
A secret agent is one who seeks to protect his country, his king, or his president against evil forces that are opposed to the one he serves…God has his own secret agents–the angels. Unseen and unrecognized by the world, they never fail in their appointed tasks.
Much has been written lately recently about angels–often not based on the Bible but on popular legends…only in eternity will we know how many accidents they prevented, or how often they kept Satan’s malicious spirits at bay. In the meantime, we can take comfort in their presence, and thank God for the love He expresses for us through their service.
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EDITOR’S NOTE: AS MY LAUNCH POINT I AM USING THE FOLLOWING COMMENT POSTED TO THIS BLOG. I’M NOT SURE WHO ACTUALLY ORIGINATED MOST OF THE ORIGINAL LANGUAGE FOUND BELOW BUT WHOEVER IT WAS, THEY KNOW WHAT THEY ARE TALKING ABOUT.
Almost everything done during this mortgage fraud was accomplished through the use of electronic media. MERS is simply an electronic platform that hosts a database that provides access to thousands of users. Transmittal of loan information from a loan originator was not done through sending the loan the documents. In most cases it was accomplished by including a description of loans on a spreadsheet with limited information — just enough to make the loans look good enough to sell, even though they were (a) already sold and (b) had a negative value from the start.
Most transmission of data is accomplished in one of two ways — email and FTP. All email and all documents prepared electronically have “meta data” tagged or attached to them. This meta data will often tell you who the original author was, when it was created, who modified it, and much more information that you’d love to know but never thought you could see. It is all housed on (a) each and every computer that received and sent (or uploaded) it (b) each and every server that received and transmitted it (c) each network server in each of the business locations of the pretender lenders and (d) each back-up device that was used in preserving the information.
I have already received reports that surreptitiously obtained back-up media conflicts wildly with the “original” documentation that was used in court, meaning they changed it and said they didn’t.
Now here is the kicker: from the start of litigation, each party has a legal duty to preserve evidence and you can get some very nice results accusing the other side of “spoliation” of evidence when you actually catch them at it or when the presumption arises that they did it because they refuse to let you see the data and then meta data. Your assumption that the pretender lender has free hands to change evidence is contradicted by the law. And the lawyers who participate in change or spoliation of evidence are subject to more than sanctions — their licenses are on the line.Here is an example of what you will find when you start digging. A loan is closed. before it closed the data was entered on a spreadsheet that was set to a loan aggregator. The loan aggregator changed some of the data and split up the loans into groups including each group into a new spreadsheet. The Collateralized Debt manager then creates the groupings known as tranches, sometimes changing the data or intervening data that loosely describes some of the data in the spreadsheet, all of which is then used to create new spreadsheets that are then used to form the basis of the bonds that don’t exist but nonetheless are submitted for ratings to the rating agencies. Included in each grouping are esoteric or exotic vehicles that appear to be hedge positions but which in actuality reduce the value of the the best looking tranche of loans to less than zero. The transmission data will be devoid of any reference to transmittal of any document that was signed at closing. In fact, the documents signed at closing are neither requested nor reviewed by anyone and are generally destroyed or sent to some central place where they are kept in low-security areas. The data will often show that a scanned copy of a document was used by a program to re-create the original by using color matching and printing.
There have been many seminars given in recent years on electronic discovery mostly ignored by most lawyers because the subject is too intimidating. I am invite those of you who know this subject, to write in and help me develop the topic in language that will be understandable by most lawyers and even most laymen.COMMENT FROM BLOG —-
Sunday 22 August 2010
Some sources for what to demand in discovery:
From “Mass Extinction Of Pools Becomes Clearer” on this site. Do a search under that title and look for the post by…wait. Let me paste the post:
avirani0203, on July 29, 2010 at 11:24 am Said:
So true ANONYMOUS. This is where you have to get down to the nitty gritty. I am seeing too many old-fashioned requests for document production. By old-fashioned, I mean that they are asking for paper documents.
In order to get to the heart of the real fraud, e-discovery is a must. The federal courts and some state courts like Texas have very strong e-discovery rules. What everyone is looking for is in the metadata. Remember, MERS is one huge computer database. The loans were transferred electronically. MERS has an e-note registry. The key information is in those native files. Any tampering or destruction of the metadata is grounds for a spoliation order.
Following is a sample of some definitions that I believe should be included in each and every document production request:
ESI” means electronically stored information including, but not limited to, information electronically, magnetically or optically stored as: (a) digital communications (e.g., e-mail, voice mail, instant messaging); (b) word processed documents (e.g., Word or WordPerfect documents and drafts); (c) spreadsheets and tables (e.g., Excel or Lotus 123 worksheets); (d) accounting application data (e.g., QuickBooks, Money, Peachtree data files); (d) image and facsimile files (e.g., PDF, TIFF, JPG, GIF images); (e) sound recordings (e.g., WAV and MP3 files); (d) video and animation (e.g., AVI and MOV files); (e) databases (e.g., Access, Oracle, SQL Server data, SAP); (f) electronic mail, contact and relationship management data (e.g., Outlook, Maximizer, ACT!), including emails resident on Plaintiff’s and/or Plaintiff’s agent(s)’ servers or computers; (g) calendar and diary application data (e.g., Outlook PST, Yahoo, blog tools); (h) online access data (e.g., temporary internet files, history, cookies); (i) presentations (e.g., PowerPoint, Corel Presentations); (j) network access and server activity logs; (k) project management application data; (l) computer aided design/drawing files; and (l) back up and archival files (e.g., ZIP, GHO)
“Metadata” means system and application metadata. System metadata is information describing the history and characteristics of other ESI. This information is typically associated with tracking or managing an electronic file and often includes data reflecting a file’s name, size, custodian, location, and dates of creation and last modification or access. Application metadata is information automatically included or embedded in electronic files but which may not be apparent to a user, including deleted content, draft language, commentary, collaboration and distribution data and dates of creation and printing. For electronic mail, metadata includes all header routing data and Base 64 encoded attachment data, in addition to the To, From, Subject, Received Date, Sent Date, Time Sent, CC, BCC and Body fields.
“Documents” means the original and each non-identical copy of any written, graphic, electronic, or magnetic matter, however produced, whether sent or received, or neither, including drafts and both sides thereof, in your possession, custody, or control and specifically includes ESI and metadata (as defined). The term shall include handwritten, typewritten, printed, photocopied, or recorded matter. It shall include communications in words, symbols, pictures, sound recordings, films, tapes, drawings, blueprints, charts, maps, graphs, photographs, still or moving picture films, parts or components of equipment, models, information stored in, or accessible through, computer or other information storage or retrieval systems, all other “documents and tangible things,” and any physical object in the possession of, subject to the control of, or within the knowledge of the party responding to these requests for production, including their counsel, experts or investigators. Any and all documents and data existing as electronic or magnetic data shall be produced on disc, either DVD (digital versatile disc) or CD (compact disc) or on external hard drive in the following format: (a) documents in WordPerfect 5.1 or higher shall be produced in the format in which they are maintained (*.wpd); (b) documents in Microsoft Word for Windows 2.x or higher shall be produced in the format in which they are maintained (*.doc); (c) documents in Microsoft Works 4.0 for Windows shall be produced in the format in which they are maintained (*.wps); (d) documents in Microsoft Excel for Windows 4.0 or higher shall be produced in the format in which they are maintained (*.xl*); (e) documents in Lotus 1-2-3 shall be produced in the format in which they are maintained (*.wk?); (f) web pages which cannot be produced as a hard copy shall be produced in *.htm or *.html format; (g) encoded text files shall be produced in the format in which they are maintained (*.txt); (h) Adobe Acrobat .pdf files shall be produced in *.pdf format; (i) electronic mail shall be produced in .pst, .msg or .nsf format; and (j) all other electronic documents and data shall be produced in native format, or in ASCII format, delimited appropriately, with a key, if necessary, identifying the data fields, if production in native format is not feasible. All hard copy (e.g., paper) documents shall be produced as Group IV, black and white, single-page .tiff or color .jpg images with a standard Summation (.dii) load file.
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Max Gardner’s Top Reasons For Wanting A Pooling Servicing Agreement:
http://blog.ncblc.com/?s=pooling+and+servicing+agreement
The Alphabet Problem And The PSA:
http://www.maxbankruptcybootcamp/alphabet-problem-pooling-servicing-agreement
Source for the above two is a neat little site:
http://homeequietytheft.blogspot.com/
THE A MAN,
I am there with you now.
If we tried what they did, we’d be ‘under’ the jail.
In the olden days, we’d have the gun and keep trespassers off.
Now they set you up.
I’ have an interest in your home and I’ll foreclose on you and you can’t stop me.
Do you know? The law firm that foreclosed on me, that’s all they’d say!
Our client has an interest in your home. They never declared me in default. Their client never did either.
They were truthful in that matter, their letters would say they represent their client who has an interest in my home.
Weird, the truth was right there and I thought I could declare not knowing them and keep my home. Nope, they are interested in your property ‘maam’, you don’t have to know them.
They are trusted by your legal system. Let them file some documents that say you lost your rights, and some more that said you transferred your rights and then we’ll let them have your property ‘maam’.
Nope, don’t need a meeting of the minds.
Nope don’t need a contract.
All they need to know is you have a home, and be interested in it.
Well and they need enough money to perpetrate the crime.
Yeah, sounds like RICO, but so what ‘maam’.
When they finally got a mob boss it was over tax evasion, not what he did to the people he hurt.
Don’t you read your history.
He didn’t steal the White House, he stole your house, BIG difference.
RICO matters when people have connections, you don’t have no connections, you as close as the dirt, walking on the land as a man or a woman.
So stop your complaining and get outta thar befar the ‘sheriff’ arrives at yo doh step ta mayk sure you vay-cate da premises’.
Light and Love
I’m sure some that read what I wrote about the Regal 2, the new electronic cigarette that I fell in love with, have wondered what others, besides me, would think about the product. Well, here’s what a couple of my new Regal 2 users (and distributors) had to say in emails to me about a week ago, right after they received their Regal 2s in the mail. And in case you missed my original article about this new product, click here: We Interrupt this Meltdown for a Brief Commercial Message.
Dear Mr. Mandelman –
I purchased the inLife last week because I trust you – you make me laugh and you shoot from the hip. Although I got it on Thursday, I hesitated until Saturday to open the box, and after reading the instructions, found I had to wait 8 hours till the battery was charged.
Finally, at 5:15 last night, I took my first puff – it was amazing – a 3 pack a day chain smoker, a writer like you – I smoked 3 real cigarettes last night, instead of probably half a pack – today I have smoked a pack, but sitting on my butt I would have probably smoked three packs by this time tonight – it takes a little getting used to, but it does satisfy the psychological need of having it in your hand. I grab for it now without thinking, and have even tried to tap the ashes off a few times.
Thanks for introducing us to inLife – It’s a wonderful product!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Ken Baumgardt
Newark, Delaware
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Hey Mandelman!
I just got my Regal 2 today. I know you’re busy, you probably get a thousand emails a day, but I had to tell you… it’s exactly what you said… I love it. I live in Vegas and I’m already building a business around it. A casino manager asked me about buying 3,000 of them! Everyone who sees it is excited too.
I’m glad you wrote about it because I would never have found it on my own… I didn’t even know electronic cigarettes existed before. I’ve been involved in multi-level marketing before, but this is the best product for that type of marketing I’ve seen.
Thanks you so much for my Regal 2, and for your articles. And post this on your site if you want. I could always use the extra promotion… LOL.
Asia McKenzie
Las Vegas, Nevada
So, I’m pleased to be able to announce and recommend Ken as a distributor of the Regal 2 in Delaware, and Asia as a Regal 2 distributor in Las Vegas. If you’re anywhere near Delaware, or Vegas, and you want to know more about the Regal 2, either as a product or as an income opportunity, you should absolutely contact Ken or Asia as shown below.
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And, as always, if you want to talk to me about the Regal 2, email me at: mandelman@mac.com
The other day, I posted an article about how a deal had been negotiated in Congress that would make available $1 billion in federal bridge loans for homeowners who, due to unemployment or illness, are unable to make their mortgage payments. You can find it here: New Legislation to Offer $1 Billion Fund for Unemployed
I came out saying I support the idea, basically because my expectations of what my government is capable of have been reduced to essentially nothing. Everyone knows how much I love sarcasm… or at least have come to love sarcasm writing about the foreclosure crisis… and on this article I think I might have taken my sarcasm to such a level that readers, especially those that read quickly, may have missed it.
Anyway, I say this because I received an email last night from a reader and our conversation back and forth follows. I thought it would be worth reading it for numerous reasons… but, it’s of course up to you… Mandelman
THE MANDELMAN MATTERS READER WRITES:
How can an unemployed person taking on even more loans, for what is most likely a well-underwater home mortgage situation, be a good thing? I still believe the only thing that will work to help resolve this gigantic mess is principal forgiveness, not more loans. Use a tax on banks, hedge funds, Wall Street firms of all types, to help reduce principal. Start with those of us who had fully documented income when we got our loans, have lost income due to the negligent (and intentional egregious behavior of various banking types), and help us out with reductions. I’m surprised that you would think this new program is a good idea (unless I’m reading it wrong).
MANDELMAN RESPONDS:
Well, when you look at it from the perspective of coming from a federal government that has not even come close to doing anything that even gets down the runway, let alone launches…
Bush’s Hope-4-Homeowners plan, which had a $320 billion authorized by American Jobs Creation Act of 2008, ended up modifying one loan and spending essentially nothing.
Obama’s HAMP was authorized at $380 billion and more than a year into it, has spent essentially nothing… $200 million.
Obama’s 2MP program, which was launched 14 months ago, has NOT modified one single solitary second mortgage.
Um, what else… I’m sure there’s more, but I’m tired. When you consider that kind of track record, and the fact that federal employees from two administrations, the entire congress and God knows how many others have been working on this for 3 years… Well, it would seem to me that you either leave the country, eat a gun, or start having some pretty diminished expectations as to the potential for competency that exists.
I mean, it’s like if you were listening to a game of one-on-one being broadcast on the radio, and you were rooting for your player, but he never seemed to be able to hold onto the ball, let alone shoot or score, and then you found out that the guy you were rooting for was playing against Kobe, but was actually a 7 year-old autistic dwarf with Down Syndrome… Well then you clap when he manages to bounce the ball and it doesn’t hit his own foot and rolls out of bounds… Right?
So, with that in mind… A billion in loans for people without jobs, while you allow the market to remain in a freefall with millions of foreclosures ongoing, and at this point nothing even on the drawing board that could potentially stop them… After three years and that many working on the problem…
So… YAY! loans for the unemployed!! YAY! Look, honey, he almost bounced the ball that time. Almost! I know, he hit his toe again, and Kobe got the ball, but the last time he just threw it directly out of bounds, while he shit his pants, slipped on the excrement and fractured his femur… So look how much better this time was!!!
So, YAY!!!’ Loans without jobs!!! That’s the way guys!!! GOOD JOB!!! Assuming they actually do end up making any of the loans that is. If I find out that there’s a requirement attached to the program that says that it only applies to unemployed homeowners with 700 FICO scores and above, and that the bill forgot to consider who the loan originator might be and then they forget to either print or distribute the applications… Well, then that will just be more of the status quo and I’ll have to stop cheering.
AND THE READER REPLIES:
No, it’s another useless program. You’re not applauding a handicapped kid; it’s applause for the Emperor-with-No-Clothes. Its not a kid that can’t do any better; it’s another administration who cant push through a difficult but necessary program. More loans to underwater homes is simply pushing back the day of reckoning by a few months to a couple years. Another misguided program is worse than doing nothing.
AND MANDELMAN RESPONDS:
Well, of course it’s a useless program, in the sense that it is entirely devoid of thought or potential. As in, more loans targeted for people without the ability to repay them? That’s the answer? Well, if they weren’t going to lose their homes, they certainly will now. But then, maybe that’s the goal right? (My sarcasm on this point may have gone too far. Hey, is it okay if I print our interchange if I leave your comments anonymous? MA
ONE MORE THING FROM MANDELMAN TO THE READER…
Oh, one more thought… I should add that in some ways, I am quite seriously in favor of the program. Because our government has proven itself so entirely incompetent, people have taken their own lives and perhaps this program will delay even one person from committing suicide. It probably won’t stop them from doing it, but maybe because of this program, they’ll do it a year later, and at this point… since this is the best case type of accomplishment I’ve come to expect from the government in this country… then good.
It’s the absolute pinnacle of incompetence… something I’d expect in a novel by George Orwell, or Ray Bradbury… a people conditioned to be happy because at least their government managed to delay one suicide by spending a billion dollars… because the other untold billions they’ve spent or tried to spend, accomplished even less.
And there you have it… ain’t life grand?
When it comes to bankruptcy law, fighting for the rights of American consumers, and knowledge of our latest economic collapse, I cannot think of anyone that knows more than Max Gardner. And that’s not just anyone saying that, I’ve written almost 300 articles on these and related topics, so I’ve called or emailed just about everyone on planet that’s supposed to be an “expert” at one thing or another, and Max stands alone.
In my mind, there are three things that make Max special:
Okay, so what can I tell you, I love the guy, and I’m very much looking forward to attending his Bankruptcy Boot Camp at the beginning of July. And you can count on me writing a lot about what I learn while I’m there.
So… as my readers know, I’ve never had guest columnists or posted what others have written, but when I read the article that follows, which was written by Max and his associate Bob Goodwin on June 1st of this year, and then found myself reading sections of it to several people while we were talking on the phone, well… I knew I had to post it.
Max and I are talking about publishing some things together in the future as well, and I think we’ll make a great team. He’s got the knowledge and then some, and I’ll do the jokes. LOL
So… here it is… I know you’ll enjoy the article that follows, but I’m also sure you’ll learn something important as well. I know I sure did. It’s titled: The Great Unwind and the Final Redemption, by O. Max Gardner III, but you can think of him as “Max”.
The Great Unwind and the Final Redemption
Written on June 1, 2010 by O. Max Gardner III with Bob Goodwin
What we are experiencing is called the global credit crisis for a reason. There is too much debt in the world. There is too much oil in the Gulf of Mexico and too little oil in the rest of the world. What used to be up now seems to be down. The stock market is going up on Monday and dropping more than 1,000 points Tuesday afternoon. The economy is in a “recovery mode” but the unemployment numbers keep going up and up and up. What is wrong with these pictures?
More and more economists are talking about the threat of a deflationary crisis ahead. Some are discussing hyperinflation. Others refer to a “double-dip” recession. A few even predict another depression. What we know for sure is that Greece, Italy and Spain are broke. The Euro has lost more value than the latest big fish just lost in Vegas. Foreclosures are at historic highs and unemployment keeps going up.
So, what does this mean for you? Well, if you have a house that is under water, or more debt than you can reasonably hope to repay, your best options may be the unthinkable as in filing for personal bankruptcy. But it really should not be unthinkable to default on a loan or even to declare bankruptcy. Don’t stop reading. It is really a good option for many; it is moral, legal and good for the country. It has also become very common. You and your children will look back in a generation with pride.
In small amounts, debt is good. Home ownership is only possible for the young with mortgages, and many college degrees seem to be totally supported with student loans (don’t get me started on student loan debt). Working capital for growing businesses allow for inventory and distribution expenses. Lenders benefit as well: high interest rates are paid to pensioners on their life savings.
When debt exceeds a certain level it becomes a cancer on society. Easy credit fuels speculation which triggers bubbles. These bubbles lead to a temporary lift in apparent wealth, which increases economic activity beyond its sustainable level. But eventually more and more debt triggers economic decline with the inevitable glut of goods produced by an overheated economy.
What people are discovering too late is that their debt is not repayable. Not now, not in the future, not ever. They once had a hope they could wait out their bad times. This is true of many homeowners, many businesses and many governmental bodies. The “great unwind” is now upon us and is picking up reverse speed every day. And, the unwind is going to be deflationary. Prices and salaries will decline, jobs will become more scarce, and debt will continue to increase.
The earlier you pull the rip cord the better off you will be later. In many states mortgage loans are non-recourse debts. This means that the homeowner has no personal liability for the debt after foreclosure. Never make another mortgage payment in these states. Turn over the keys after foreclosure. You will lose all of your down payment, but the lender can never get another penny from you. Your credit score will fall. But you do not want any more credit. Right? If you are trying to quit crack, how would feel about your pusher reducing your crack score? Does that make sense? If you plan to fight the war on drugs, you fight to win, right? Stay off crack (I mean credit) for a few years, and they will take you back with open arms. Just be sure to look before you leap back into the credit patch.
There should no longer be any moral question about whether it is wrong to walk away from debt legally. The advent of limited liability corporations and the legal ‘personhood’ of corporate shells have allowed business to create one sided bets for years, and they happily walk away from “corporate debt” when the tide shifts. Donald Trump, the famed “Donald”, surely knows how to play this game. The Donald is a credit gamer. Whatever you say about Trump, the guy is a real player at in the debt cancellation game. This may even be the basis for a new show—The Bankrupt.
But, Trump is not the exception to the rule. The Trumpum tactics are the calculus of 21st century finance, and you are a bit player in this game. The Big Players are General Motors, Chrysler, Lehman Brothers, Bear Stearns, Washington Mutual and Countrywide. They have either eliminated their heavy debt-loads by bankruptcies or by forced liquidations and mergers with the FDIC picking up the financial pieces. And, even the Great Mortgage Bankers Association of America recently accepted a $40 million dollar short sale and walked-away from its former world headquarters on K Street in Washington along with about $45 million in unpaid debt. If you want to talk about moral hazards, then these are the players to talk about. Forget about John and Mary Smith on Main Street. John and Mary are mere pebbles in the sand on a very large beach. Nobody notices John and Mary and from my point of view nobody in Washington really cares.
The current administration is implementing a policy of recapitalizing the banks (whose assets are still worth far less than their own debts) by lending them money through the Fed for nothing and borrowing back the money through the treasury for a lot more. This is called transferring debt from the banks to the government. But government debt has the same drag on societies in the long-run, they can just hold their breath longer. And, the so-called HAMP program is nothing more than a smoke and mirrors game designed to make us think that something is being done when in fact nothing is happening other than secretly extending the day of the final reckoning. In short, there is no value in the Net Present Value Test of HAMP.
In the end debt default always occurs in these situations. The debts cannot be paid by the combined debtors in a society. The default may occur when inflation destroys the value of the debt over time. Or the default may occur with the eventual death of the debtor. Or the debt is discharged legally.
The longer this process takes, the more damage occurs to the society. And this process, in my view, is the true moral hazard for America. The hazard of not legally and effectively dealing with these mountains of consumer debt. There are strange incentives that a person has when their debt is unpayable. Why would you try to earn more? The more you earn the more debt you pay. But you cannot earn enough to get out of debt. So you stop trying. If you owe too much on your house, you might decide you have nothing more to lose on your house so you will simply decide to wait it out. You will minimize the repairs and improvements on the house, rent the house out to frat boys and hope for the best. You might as well best your nest-eggs on winning the Power Ball next Wednesday. The odds are not in your favor. The wait it out strategy will only prolong the financial and emotional agony.
The banks are great examples of distorted incentives. They have sucked up well over $3 trillion of government money. They are still paying huge bonuses. They are not lending to businesses in need. They are not lending to consumers. They have “raised” their consumer credit standards. They have not changed any of their prior internal “standards.” Distorted incentives indeed.
In the ancient days the Christian nations would have a debt Jubilee every 30 years. It sounds like a party because it was. Debts were forgiven en-masse when societies became constipated with debt. And, in the days of the Old Testament, individual debts were discharged once every 7 years. It was also considered a sin to try and collect debts after this 7 year discharge.
Suffice it to say we are currently a nation of many, many sinners, the vast majority of whom are trying to collect debts owed by consumers. The only way to run these money changers out of the temple, and to secure true redemption, is to declare personal bankruptcy. You need to legally purge yourself of your debts and your houses and your expensive cars and start working for yourself and for your family. Praise the Lord and pass around those bankruptcy petitions. Like now. Like yesterday.
O. Max Gardner III & Bob Goodwin
Foreclosure News