Banking fraud and the foreclosure crisis

I haven't been posting much on open carry lately because I have been spending a lot of time watching this. I finally have to warn all my OC buddies how dangerous times have become. I urge everyone to follow the links below and to educate yourselves about the massive fraud being perpetrated against the American people by the big banks, the Fed, and the corruptocrats.

A sample from bank analyst Chris Whalen:

As a result, these same large zombie banks and the U.S. economy will continue to shrink under the weight of bad debt, public and private. Remember that the Dodd-Frank legislation was not so much about financial reform as protecting the housing GSEs.

Because President Barack Obama and the leaders of both political parties are unwilling to address the housing crisis and the wasting effects on the largest banks, there will be no growth and no net job creation in the U.S. for the next several years. And because the Obama White House is content to ignore the crisis facing millions of American homeowners, who are deep underwater and will eventually default on their loans, the efforts by the Fed to reflate the U.S. economy and particularly consumer spending will be futile. As Alan Meltzer noted to Tom Keene on Bloomberg Radio earlier this year: "This is not a monetary problem."

Forget Treasury Secretary Tim Geithner lying about the relatively small losses at American International Group (AIG), the fraud and obfuscation now underway in Washinton to protect the TBTF banks and GSEs totals into the trillions of dollars and rises to the level of treason. And the sad part is that all of the temporizing and excuses by the Fed and the White House will be for naught. The zombie banks and GSEs alike will muddle along until the operational cost of servicing bad loans engulfs them. Then they will be bailed out -- again -- or restructured.

http://market-ticker.org/akcs-www?blog=Market-Ticker

http://www.zerohedge.com/

http://stopforeclosurefraud.com/

http://www.bloomberg.com/news/2010-...es-deutsche-bank-over-mortgages-update1-.html

From the Bloomberg link:
Assured said more than 83 percent of 1,306 defaulted loans examined in one of the transactions, ACE’s Home Equity Loan Trust, Series 2007-SL2, breached Deutsche Bank’s representations and warranties. In the second deal, Home Equity Loan Trust, Series 2007-SL3, 86 percent of the 1,774 loans breached the agreements, Assured said

We have been suckered and defrauded, folks. It is times like these that the second amendment was meant for.
I have a friend with some rental homes. Recently, he caught a locksmith BREAKING AND ENTERING THE HOME TO CHANGE THE LOCKS AT THE REQUEST OF THE BANK WHO HELD THE MORTGAGE. Problem was, he was not delinquent; the home was vacant due to him evicting tenants. Whomever the bank hired to check out the property reported it as vacant and the bank tried TO STEAL HIS PROPERTY, hoping he would never fight it.

When the rule of law is no longer followed in this country, or we have a two-tiered system of "in the club" and "out of the club", the social contract is broken.

God help us all.

Just another quote from bank analyst whalen

In each case the substance of the transaction is to falsify the financial statements of the participants. And in each case, the acts are arguably criminal fraud. And in the case of the zombie banks, the GSEs and the MIs, the fraud is being actively concealed by Congress, the White House and agencies of the U.S. government led by the Federal Reserve Board. Is this not tyranny?

More-congressional hearings

http://cop.senate.gov/hearings/library/hearing-102710-foreclosure.cfm

Some highlights:

The largest and most complex harm that may exist with the loans in default or foreclosure today is that the paperwork for the loans was not transferred correctly. I emphasize that what constitutes a correct transfer is a gray area; we need more direction from courts and legislatures on this subject. But there are plausible legal claims that the transfers of the notes and mortgages were not effective to give the trust full enforcement rights.

The implications of problems with transfer are serious. If the trust does not have the loan, homeowners may have been making payments to the wrong party. If the trust does not have the note or mortgage, it may not have standing to foreclose or legal authority to negotiate a loan modification. To the extent that these transfers are being completed retroactively, it raises issues about honesty in creating and dating the assignments/transfers and about what parties can do, if anything, if an entity in the securitization chain, such as Lehman Brothers or New Century, is no longer in existence. Moreover, retroactive transfers may violate the terms of the trust, which often prohibit the addition of new assets, or may cause the trust to lose its REMIC status, a favorable treatment under the Internal Revenue Code. Chain of title problems have the potential to expose the banks to investor lawsuits and to hinder their legal authority to foreclose or even to do loss mitigation.

Another type of lawsuit risk is that consumers are able to sue the current holder of their note for violations that occurred at origination. Normally, these complaints fail because the holder of the note is thought to be a "holder in due course," a person that receives protection from most of the claims that someone could bring against the originator of the note. However, if the notes do not meet the requirements of negotiable instruments, there cannot be a holder in due course. The person with the note merely is the possessor "bearer paper," and can be sued for all wrongs associated with that note contract.

Finally, I want to share with the Panel that the lawyers that I have met over years of my research on mortgage servicing—both creditor lawyers and debtor lawyers—have nearly universally expressed that they believe a very large number (perhaps virtually all) securitized loans made in the boom period in the mid-2000s contain serious paperwork flaws, did not meet underwriting or other requirements of the trust, and have not been serviced properly as to default and foreclosure.

The second type of lawsuit that seems certain to follow the exposure of the flawed foreclosure procedure is a claim by investors that problems at loan origination, including a lack of paperwork to support a valid foreclosure, or mortgage servicing mishaps have increased their losses. These suits most obviously will seek to force the banks to "buy back" or "repurchase" loans that were improperly placed into a particular trust for securitization or were improperly originated. Investors could also argue for money damages for lost revenue stream or breach of fiduciary duty by the trust or the servicer to exercise good judgment in favor of in investors’ interests. These suits could be incredibly expensive for banks, requiring the payments of large claims to make investors whole and to satisfy the plaintiffs’ attorneys who will bring such cases.

Folks, every day for the last two weeks, more and more is discovered about the GREATEST FRAUD IN AMERICAN HISTORY. The banks purposely created bad loans and bad securities. They need to be put in receivership and liquidated. This will hurt. The alternatives?

Higher taxes to bail out a corrupt financial system, theft (taxing) of your 401k's, $10 gas and $10 bread.
We will find out very shortly, 14 months max IMO, which side the government is on, the fraudsters or the taxpayers. Unfortunately, I think I know the answer. (cross posted to the bank fraud thread)

I hold a very unpopular position when it comes to the recession. I think it was just what America needed, but the government wouldn't let it happen the way it needed to. Instead they have reinforced society's manufactured dependence on the government and kept our economy hovering on the brink of disaster far longer than it should have been.

We had a chance to hit the reset button, but we chose to keep the banks on life support.

mcdonalk said:

I hold a very unpopular position when it comes to the recession. I think it was just what America needed, but the government wouldn't let it happen the way it needed to. Instead they have reinforced society's manufactured dependence on the government and kept our economy hovering on the brink of disaster far longer than it should have been.

We had a chance to hit the reset button, but we chose to keep the banks on life support.

Click to expand...

That opinion is really only unpopular with liberals.

The late, great, George Carlin's take

http://www.youtube.com/watch?v=i5dBZDSSky0