HOW TO AVOID MERS MORTGAGES & DEEDS OF TRUST

Originally posted on Clouded Titles Blog:

The following is an editorial opinion of the author and does not constitute legal advice. For more information about the mess that MERS mortgages and deeds of trust have created, visit my website at http://www.cloudedtitles.com

What can I say in 2000 words that will make sense given the current state of affairs in America?

It never ceases to amaze me how people don’t learn from previous mistakes, especially here in America, where many are brainwashed into thinking that home ownership is their God-given Constitutional right because that document (as well as the Bill of Rights) speaks of Life, Liberty and the Pursuit of Happiness, which includes Property, or the lack thereof.

Even in the days of Christ, who overthrew the moneychangers in the temple, the banks have lent with usury and people who believed that they needed to borrow money became servants of those who lent it.  Times have not…

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CitiMortgage, Wells Fargo lose bid to end lawsuit over falsely notifying credit reporting agencies

How long will it takes to shut the banksters down???. The banksters should be given potential imprisonment and not just civil penalties:

From U.S. Fair Credit Reporting Act:

  • Section 616 – Dollar liability for those who willfully violate the Act — go to Section 616.
  • Section 617 – Liability for those who are negligent in failing to comply with the Act — Section 617.

Oct 1 (Reuters) – Wells Fargo Bank and Citigroup’s mortgage unit must face claims that they violated federal law by falsely notifying credit reporting agencies that thousands of homeowners went through bankruptcies or foreclosures, a federal judge has ruled.

In an order on Monday, U.S. District Judge Janis Sammartino said consumers had offered enough facts to support their claims that Wells and CitiMortgage Inc gave inaccurate information to a credit reporting agency, hurting consumers’ ability to get new loans.

Mark Rodgers, a spokesman for Citi, denied the allegations and said the case is without merit. A spokesman for Wells did not immediately respond to a request for comment.

Filed last year, the lawsuit said the mistakes were made after mortgage customers of Citi and Wells sold their homes in a short sale, an alternative to foreclosure. In a short sale, a home is sold for less than the amount owed on the mortgage, with the bank agreeing to accept the proceeds to settle the loan.

Instead of reporting the transactions as short sales, the banksreported them as foreclosures or bankruptcies and failed to correct the reports when they were disputed, the lawsuit said.

According to the lawsuit, the mistakes occurred because Citi and Wells used the wrong codes when they submitted information about short sales to credit reporting agency Experian to update borrowers’ credit reports.

Read on.

HUD watchdog accuses EverBank of violating FHA short sale policies

This is the same bank that is being investigated by NY AG for redlining of minority homeowners.

The Office of Inspector General of the United States Department of Housing and Urban Development has released a report alleging that EverBank violated the policies of the Federal Housing Administration’s Preforeclosure Sale Program.

According to the report from the HUD-OIG, EverBank improperly determined whether borrowers were eligible to participate in the FHA’s preforeclosure sale program and as a result of those failings, the FHA insurance fund paid approximately $1.57 million in improper claims.

HUD-OIG said that it audited EverBank’s preforeclosure sale program because “it had the highest Florida preforeclosure sale claims of all servicing lenders located in Florida and more than 50% of its Florida FHA claims were from preforeclosure sales with more than $12.9 million paid from 2011 through 2013.”

HUD-OIG said that its objective in the investigation was to determine whether EverBank had gone through the proper steps before a property was placed into the preforeclosure sale program.

“EverBank did not ensure that the mortgagors’ default on the FHA-insured mortgages was due to an adverse and unavoidable financial situation,” the HUD-OIG report stated. “Also, EverBank did not conduct a thorough and independent verification of the mortgagors’ income, claimed expenses and personal resources to properly determine if they had the ability to pay their mortgage payments. Lastly, EverBank did not substantiate that mortgagors’ need to vacate the FHA-insured property was due to the cause of the default.”

Read on.

JPMorgan Says It’s Paid Out Fifth Of Required Consumer Aid

Law360, New York (October 01, 2014, 3:00 PM ET) — JP Morgan Chase & Co. says it has doled out $869 million of the $4 billion in consumer aid it is required to provide under the terms of its $13 billion deal with the Justice Department over its alleged faulty lending during the housing boom years, according to an independent monitor hired to track the bank’s progress.

In a report published Wednesday, Joseph A. Smith Jr. shared JPMorgan’s second-quarter self-reported gross consumer relief and the credited equivalent as shared by the bank’s internal review group —…

Source: Law360

FHFA director faces criticism from former allies

Housing advocates that originally pushed President Barack Obama to appoint Mel Watt as the director of theFederal Housing Finance Agency are frustrated with Watt’s lack of changes to housing policy since he took over. Per Bloomberg:

The National Low Income Housing Coalition and other groups said they expected Watt, the most powerful housing official in America, to move quickly to help troubled borrowers and lower-income families shut out of the two-year housing recovery. Instead, he is maneuvering cautiously, asking for public feedback on many issues — and earning accolades from the mortgage industry.

“Mel Watt has been a huge disappointment,” said Peter Dreier, a public policy professor at Occidental College in Los Angeles who wrote a paper arguing that the FHFA should allow debt reductions for borrowers with Fannie Mae and Freddie Mac mortgages. “No one I know in the housing community understands why he’s sitting on his hands.”

Since taking office, Watt began a nationwide public campaign in July to visit targeted cities with the highest number of in-the-money borrowers who have yet to take advantage of a HARP refinance.

Here’s a link to HousingWire’s exclusive interview with Mel Watt in the directors’ first interview since being appointed.

Source: Bloomberg

Judge throws out Fannie and Freddie investors’ lawsuit, decision favors federal government

A Federal judge late Tuesday threw out a lawsuit brought by investors against the Federal government’s control over Fannie Mae and Freddie Mac.

Currently, Fannie and Freddie profits go to the government, and the investors were suing for their perceived share.

The Washington Post provided full coverage and background, via Danielle Douglas-Gabrielle:

The decision arrives more than a year after hedge fund Perry Capital sued the Treasury Departmentand the Federal Housing Finance Agency, which oversees the government-owned mortgage companies. The fund said they had violated a 2008 law that placed Fannie and Freddie into conservatorship to prevent bankruptcy.

Congress originally authorized Treasury to collect 10% dividend payments from Fannie and Freddie every quarter as a condition of the government’s $188 billion bailout of them. Treasury amended the terms of the agreement in 2012 to make Fannie and Freddie give the government most of their profits, a move known as the “sweep amendment.”

The decision favors the Federal government and its decision to take over the now government-sponsored enterprises.

Tim Pagliara, executive director of Investors Unite, issued the following statement in an email to HousingWire:

“Investors Unite doubts that Congress ever intended for the conservatorship to lead to nationalization of the GSEs with no compensation for shareholders.  We disagree with Judge Lamberth’s decision and we look forward to reviewing what comes out of discovery in the Fairholme trial.”

Source: Wash Post

Ex-Barclays traders facing UK Libor charges sue bank in NY

Reuters) – Three former Barclays Plc traders facing charges in the United Kingdom over manipulation of Libor benchmark interest sued the bank in New York on Tuesday, accusing it of retaliating against them by failing to pay their legal fees.

In a lawsuit filed in Manhattan federal court, Alex Pabon, Jay Merchant and Ryan Reich accused Barclays of violating whistleblower retaliation protections in the Dodd-Frank Act.

The three U.S. citizens who worked for the bank in New York were the first individuals to be charged criminally by the UK Serious Fraud Office (SFO) following a global investigation into alleged rigging of benchmark interest rates. Trial is expected in 2016, the lawsuit said.

Read on.