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November 2016 Article Archive

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Trump’s Potential Treasury Secretary Headed A 'Foreclosure Machine'
charlotteobserver.com | November 30, 2016
The U.S. government let a high-profile mortgage case against Bank of America quietly fizzle out this week. The Department of Justice had until Monday to ask the U.S. Supreme Court to take up its “Hustle” lawsuit against the Charlotte-based bank. In May, the 2nd U.S. Circuit Court of Appeals reversed findings against the bank in the 2012 case, the first civil fraud suit brought by the Justice Department over home loans sold to mortgage giants Fannie Mae and Freddie Mac.
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Ally $52 Million settlement for “Deficient Securitization”
livinglies.wordpress.com | November 26, 2016
All of these adjectives describing securitization add up to one thing: the claims were false. For the most part none of the securitizations ever happened. And that means that the REMIC trusts never purchased the debt, note or mortgage. And THAT means the "servicer" claiming the right to administer a loan on behalf of the trust is false.
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Feds allow high-profile case against Bank of America to quietly fizzle out
charlotteobserver.com | November 26, 2016
The U.S. government let a high-profile mortgage case against Bank of America quietly fizzle out this week. The Department of Justice had until Monday to ask the U.S. Supreme Court to take up its “Hustle” lawsuit against the Charlotte-based bank. In May, the 2nd U.S. Circuit Court of Appeals reversed findings against the bank in the 2012 case, the first civil fraud suit brought by the Justice Department over home loans sold to mortgage giants Fannie Mae and Freddie Mac.
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Homeowners denied mortgage reduction program accuse Bank of America of fraud
livinglies.wordpress.com | November 22, 2016
Twenty homeowners are suing Bank of America for fraud after the bank denied them a program that would lower mortgage payments. Home Affordable Modification Program (HAMP) was designed to help homeowners affected by the market crash in 2008. The program would reduce monthly mortgage payments to 31 percent of the borrower’s pretax monthly income.
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9th Circuit: Trustee is Not Debt Collector But Reverses Trial Court on Rescission
livinglies.wordpress.com | November 17, 2016
This decision could be a lot worse for the banks and servicers than it might appear. The Trustee for a valid REMIC trust that owns the debt (and doesn't just control the paper) is clearly NOT a debt collector. But considering that no Trustee has EVER claimed to be a holder in due course and that the Trust is in fact a holographic image of an empty paper bag, they most certainly are debt collectors. The catch is you have to plead correctly and undermine the assumption that they own the debt.
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Taxpayers are still bailing out Wall Street, eight years later
washingtonpost.com | November 15, 2016
NEW YORK -- Eight-years after taxpayers rescued the U.S. financial system, some of the country's largest banks, including JPMorgan Chase and Wells Fargo, continue to receive billions in bailout money, according to government data. Wells Fargo is eligible for up to $1.5 billion in bailout funds over the next seven years. JPMorgan and Bank of America could receive $1.1 billion and $964 million respectively.
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Wall Street Wants To Buy Fannie Mae And Freddie Mac Dirt Cheap
seekingalpha.com | November 15, 2016
After the electoral night, we witnessed the most severe turnaround in the financial markets ever seen. The Dow Jones Index futures plummeted more than 800 points in its lows, but it was fully reversed after investors digested the surprising announcement of the President-elect, Donald Trump, that night regarding a massive infrastructure program that wasn't included in his presidential campaign, but Hillary Clinton's.
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Wells Fargo, You Can Run but You Can't Hide: A Homeowner's Testimony
truth-out.org | November 15, 2016
Wells Fargo seems to have its greedy cheating hands in everyone's pockets these days, including Dear Uncle Freddie Mac and Aunt Fannie May, the government entities that are on many millions of mortgages as the primary investors -- "owners," so to speak, of the mortgage loans.
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Governor Cuomo Announces $28 Million Fine Levied Against PHH Mortgage Corporation for Shoddy Mortgage Origination and Servicing Practices
stopforeclosurefraud.com | November 14, 2016
Governor Andrew M. Cuomo today announced that PHH Mortgage Corporation and its affiliate, PHH Home Loans LLC, will pay a $28 million fine and engage a third-party auditor as part of a consent order for violations of federal and New York laws designed to protect homeowners. The consent order between the two companies and the Department of Financial Services was reached following a series of examinations that uncovered persistent shortcomings in their mortgage origination and servicing practices, including discrepancies in how mortgage foreclosures were documented and processed.
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Trump Presidency Could Be Worth $14 Billion to His Troubled Lender
livinglies.wordpress.com | November 10, 2016
Donald Trump’s election has likely given a massive lifeline to Deutsche Bank, the German financial firm that has been rocked recently by rumors that they would have to pay a $14 billion fine to the Justice Department over crisis-related mortgage abuses. That money is unlikely to ever be imposed, now that one of Deutsche Bank’s biggest borrowers – Trump – will soon be sitting in the White House.
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Rescission Redo: 9th Circuit AGAIN Rules that Tender is Not Necessary
livinglies.wordpress.com | November 10, 2016
Judicial Arrogance and Intolerance Keeps leading back to the same point --- that TILA Rescission is not common law rescission. Yet Judges continue to rule on TILA rescission as though it were common law rescission. Here again the 9th Circuit confirms what the Supreme Court of the United States has already said --- neither tender nor lawsuit is required for rescission to be effective. Any other holding is directly contrary tot eh wording of the statute, which as a matter of law is clear and NOT subject to interpretation.
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Victorious Donald Trump Is Devil Wall Street Doesn’t Know
bloomberg.com | November 9, 2016
Donald Trump, the financial sector hardly knows ye. During the campaign, a group of bankers from around the country -- plane tickets in hand -- were looking forward to meeting the candidate in the flesh at Trump Tower in midtown Manhattan. They were going to get a chance to hear from his own mouth what he’d like to do with their industry. But at the last minute, Trump canceled and decided to spend his time elsewhere, so they never got the chance.
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Tax Court Rules on the Transfer of Benefits and Burdens of Ownership in Tax-Deferred Exchanges
jdsupra.com | November 7, 2016
In the recently decided case of Estate of George H. Bartell v. Commissioner, 147 T.C. No. 5 (August 10, 2016), the U.S. Tax Court held that the like-kind exchange engaged in by the taxpayer’s S corporation should be respected for Federal income tax purposes. In so holding, the Tax Court rejected the IRS’s contention that the benefits and burdens of ownership of the Replacement Property passed to the exchangor prior to its sale of the Relinquished Property.
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Foreclosure Victims Say Donald Trump’s Economic Advisor Drove Them Out of Their Homes
theintercept.com | November 7, 2016
Denise Subramaniam doesn’t like to think of herself as homeless. A former software engineer, she has several chronic illnesses, including one known as multiple chemical sensitivity, which causes her to react to allergens and chemicals common in interior spaces. So this January, when LNV Corporation foreclosed on the Portland, Oregon, home she’d inhabited for 20 years, she had no option other than her Jeep.
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False Claims by False Claimants
livinglies.wordpress..com | November 7, 2016
I recently had occasion to respond to an email regarding, as it turned out, understanding the way securitization actually worked, as opposed to what is shown on paper. The topic was "tender." This is what I wrote:
Why would you "tender" money to a party whose claim is obviously false?
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Wells Fargo mortgage lending draws new scrutiny, as bank raises reserves to deal with litigation costs
bizjournals.com | November 6, 2016
San Francisco-based Wells Fargo is talking to multiple regulators about investigations in mortgage lending, and the bank has raised reserves for possible litigation losses related to its fake-accounts scandal to as much as $1.7 billion, it said in a filing this week.
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Casting Doubt on Validity of Servicer Affidavits in Foreclosure Litigation
livinglies.wordpress.com | November 4, 2016
Most institutional lenders, trusts and large financial institutions that loan money to borrowers or acquire distressed loans use loan servicers to service their loans after the loans are originated or otherwise assigned to them. Loan servicing is the process by which a lender uses a third party to, among other things, collect principal, interest and escrow payments from the borrower in connection with a loan.
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Each Subsequent Default Restarts the Clock in Foreclosure Cases
livinglies.wordpress.com | November 4, 2016
The long-awaited decision in U.S. Bank v. Bartram was released yesterday. At issue was whether lenders and servicers could restart foreclosures after five years, or if they would be barred by Florida’s five-year statute of limitations. Yesterday, the Florida Supreme Court clarified that a lender/servicer can restart the foreclosure clock by declaring a new default date.
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Bartram Affirmed: Florida Supreme Court Provides Guidance For Filing a Successive Foreclosure Action Post Dismissal
livinglies.wordpress.com | November 4, 2016
Nearly a year after hearing oral argument on the matter, the Supreme Court of Florida affirmed the decision of the Fifth District Court of Appeal in Bartram v. U.S. Bank, N.A., SC14-1265 (Fla. Nov. 3, 2016), holding that a lender is not barred from filing a subsequent foreclosure action based on a payment default after a first foreclosure action is involuntarily dismissed, provided that the subsequent default occurred within five years of the newly-filed action. The court limited its holding to cases that were involuntarily dismissed and where the mortgage at issue contains a clause granting the mortgagor the right to reinstate after acceleration. However, the court determined that whether the initial foreclosure action was dismissed with or without prejudice was immaterial to its conclusion. Id. at 20.
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Federal Judge Compels Nationstar To Produce (False) Modification / Accounting Records
livinglies.wordpress.com | November 4, 2016
Over the past couple of years, having investigated cases involving “Nationstar” as servicer in various cases throughout the country, a pattern has developed involving “Capitalization Modifications” on loans without borrowers’ knowledge or consent. Before I detail some of this evidence, here is a description of “Loan Modification and Refinance Fraud” and “Mortgage Servicing Fraud” provided at www.FFIEC.gov.
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Fraudulent Alteration of Documents in Foreclosure: Suddenly Prosecution When it is the Homeowner’s Attorney Who Does It
livinglies.wordpress.com | November 4, 2016
Let's be clear. Two wrongs don't make a right. But the very thing that this attorney is accused of doing is what the banks and their lawyers are doing and have done for the last 10 years. What this lawyer did was dead wrong. But why isn't it dead wrong when the other side does it? Law enforcement is walking past elephants in the room in order to pick up a rubber duck. If the banks were not able to get fabricated, fraudulent, forged and robo-signed documents into evidence, this Defendant could not have advanced his "business plan" of tit for tat.
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Wells Fargo in Talks With Prosecutors Over Potential Mortgage Abuses
wsj.com | November 3, 2016
Wells Fargo & Co. is in talks with a group of federal and state prosecutors examining potential abuses related to mortgages as it continues to grapple with investigations and public outrage from its sales-practices scandal. The bank disclosed in its most recent quarterly securities filing posted Thursday that it is in discussions with the Residential Mortgage-Backed Securities Working Group of the Financial Fraud Enforcement Task Force. That group, which includes the Justice Department, has levied billions of dollars in fines on other big U.S. banks, including a $16.65 billion payout from Bank of America Corp. and $13 billion from J.P. Morgan Chase & Co.
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Double Blind Foreclosure Scheme is Working for the Banks: States Quietly Resetting Title Across the Board
livinglies.wordpress.com | November 3, 2016
The plain fact is that if homes were fraudulently foreclosed based upon void fabricated instruments, the foreclosure itself is void. That is what is true under current law. But states like Massachusetts have passed legislation that most homeowners neither know about nor understand. Their rights to possession and title to property that is still legally owned by them (if current law was applied) are again being foreclosed legislatively. This completes the bank scheme in which the TBTF banks received a windfall "profit" in the trillions that really was a double blind fraudulent scheme. Both investors and homeowners alike are the victims while the TBTF banks are the victors.
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Wells Fargo To Pay $50 Million
cathydoesloans.com | November 3, 2016
American financial company Wells Fargo accepted the heviest fine of 50$ million dollars and ready to pay out the mortgage claim. The company was incriminated in reassessment of credit lines to hundreds of thousands homeowners without notifying them, Reuters says.
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African Americans and Latinos today’s fraud targets
rockrivertimes.com | November 3, 2016
Last week, I attended a day-long, annual Consumer Protection Conference in Madison. It’s called “Common Ground” and is hosted, in part by, the Federal Trade Commission. Attending the meeting, along with representatives from Better Business Bureau offices in Illinois, Wisconsin, Iowa, and Michigan were representatives from Attorneys General offices across the Midwest. This year, there were also representatives from the NAACP, the Hmong American Peace Academy, and the League of United Latin American Citizens.
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PointPredictive finds fraud in auto financing & mortgages follows similar risk patterns
autoremarketing.com | November 3, 2016
SAN DIEGO - PointPredictive, a provider of machine learning fraud solutions, recently announced the results of a new study that detected high levels of fraud in early payment auto finance contract defaults. The firm explained its study encompassed data from millions of auto finance applications submitted by dealers all over the U.S. across all vehicle types. PointPredictive auto fraud models analyzed each application and gave it a fraud score.
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Homeowners Claim They Were Burglarized By Their Banks
livinglies.wordpress.com | November 2, 2016
MORRIS, N.J. (CBSNewYork) — Being burglarized is among a homeowner’s worst nightmares. Now, imagine the intruder is actually sent there by your bank. Those break-ins happen more often than you might think. “All the cabinets were open, everything was in disarray,” Davide Adier recalled. What’s worse say owners is the realization that their mortgage holder — the bank, not a burglar — may have been responsible.
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Wells Fargo workers describe mental health nightmares
livinglies.wordpress.com | November 1, 2016
NEW YORK (CNNMoney) - For Janis Barinsky, a former Wells Fargo banker, it started with stress-induced migraines and severe anxiety. She says trying to balance the bank's aggressive sales goals without doing something illegal and sacrificing her morals pushed her into deep depression. Barinsky worked for Wells Fargo from 2002 to 2013 as a personal banker and a business specialist at several locations in Northern California and Idaho. She told CNNMoney she "internalized this constant pressure -- and it manifested itself in physical, emotional and psychological problems in my life."
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CitiMortgage Engineers another Default by providing Inaccurate Information
livinglies.wordpress.com | November 1, 2016
GRAPEVINE (CBS11) – Elizabeth and David Ball have 21 years of memories at their Grapevine home. Elizabeth recalled the time her kids learned how to ride a bike or where they skateboarded. Every street corner has memories, but they don’t have their home. The couple told CBS11 they lost their home to a bank they believed was helping them keep it. They said the whole process caught them by surprise.
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