Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

6th Circuit Reverses Trial Court on RICO Against BofA, Law firm, et al

livinglies.wordpress.com | May 18, 2015

By Neil Garfield

The key element here is the Court’s determination that the lawyers were misleading the court by characterizing the homeowner’s claim as seeking damages for a false assignment. The Sixth Circuit correctly analyzed the situation and arrived at the simple conclusion: if BOA didn’t have any right to foreclose the mortgage then it doesn’t matter whether or not the homeowner defaulted.

The importance of this finding, finally, in a somewhat conservative court cannot be understated. It might well be as important as the Jesinoski decision. The reason it is so important is that this means that the primary assumption by virtually all courts in the land is turned upside down. That assumption is that if the borrower defaulted it doesn’t matter who is foreclosing. This Federal Court has arrived at THE OPPOSITE CONCLUSION that cannot be argued — which I have been saying since 2007: If the party foreclosing has no right to do so then the alleged default of the alleged borrower doesn’t matter. And the reason for THAT is that the alleged default is irrelevant. Why is it irrelevant? Simple: it is irrelevant because the party foreclosing has no legal relationship with the loan as owner, holder, servicer or anything else. This is the first major decision where the court shows its understanding that the foreclosing parties have no injury, regardless of whether the homeowner stopped paying or not.

Just like the Jesinowski decision told thousands of Judges they had it wrong on rescission, so does this decision tell thousands of Judges they have it wrong on the burden of proof and the burden of pleading. This decision comes in no small part from the fact that after getting a foreclosure judgment, on the eve of a hearing in which the capacity of the person who executed affidavits was going to be examined, BOA dismissed the action and then vanished. Lesson: If BOA suddenly dismisses the action it can only be the result of their knowledge that they had no right to foreclose in the first place.

If that is the correct conclusion, as it was in this case, the homeowner has every right to sue for wrongful foreclosure. But this case goes further: the sixth circuit says, and I agree, that such conduct qualifies for a RICO lawsuit which makes punitive damages a lot easier.



Back to May 2015 Archive


CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo



Contact us or view our Sample Documents & Audits by completing the form below.

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package