Daily Archives: October 8, 2012

Georgia Foreclosure Fraud Story Emblematic of Lack of Accountability, Crushing Consequences

Here is the moral to the never ending foreclosure stories: Don’t believe the same repeated abusive major banks when they say that they “are sorry and they will not do it again. They promise to make it right” when the banks have their fingers cross in the back of them. Here is Georgia foreclosure story from Firedoglake:

It makes mafia’s organized crime look like fifth-grade math,” said Patrick Powell of Cumming.

Powell said he became a victim of massive foreclosure fraud when he attempted to modify the loan on his Forsyth County home. He said the bank told him not to make his mortgage payments while it worked out the loan modification, then lost his 60-page modification application six times […]

Powell was about to lose his home when he saw a 60 Minutes report in 2011 that blew the lid off the industry’s big secret.

The report revealed banks used phony documents to push people out of their homes. The documents were apparently created because banks lost the original documents when Wall Street bundled mortgages into trusts and sold them to investors.

Bank attorneys and foreclosure firms forged the documents, called assignment of mortgage, which sometimes contained incorrect information about the true owner of the mortgage. The signers that provided signatures of bank vice presidents and notaries were called robosigners.

60 Minutes exposed one prolific robosigner named Linda Green.

“I saw that and I said ‘Linda Green!’ I pulled out my assignment and it’s Linda Green,” said Powell, who thought courts would quickly toss out the case since the bank was trying to foreclose using fraudulent documents.

The rest is familiar. The judge refused to allow Powell to consider the fraudulent assignments in his foreclosure case, and in fact reacted with anger when Powell tried to explain it in court. The response of the judges in Georgia resemble reactions around the country. And really only a handful of anti-foreclosure activists and some registers of deeds have clued into this massive fraud. The woman responsible for mortgage transfers in this area of Fulton County, Georgia, said she’s basically not responsible for authenticating the documents she receives into her office.

And what was the response of the Georgia Attorney General Sam Olens? 

Here was Olens’ response:

“Look. It’s more complicated than that,” Olens said. “When you’re dealing with the foreclosure process most of the time the documents weren’t being changed in the state.”

But Powell’s assignment was signed in Georgia along with untold thousands of others inside an office in Alpharetta.

The only clear message to send to the same repeated abusive banks is not simply having them open up their purses to settle but simply criminal charges. Anyone that signs a document under perjury is held responsible under the court of law and that includes the robo-signers!!!

Class action: BofA accused of reneging on mortgage modification that homeowners accepted, then try to foreclose

Bank of America reneged on a mortgage modification that homebuyers timely accepted, then demanded $13,000 in “supposed arrears” and is trying to foreclose, a couple claims in a federal class action.

Source: Courthouse News

UBS Can’t Toss Claims of Faulty Underwriting

(CN) – A hedge fund can sue UBS Securities for allegedly underwriting $109 million in now-worthless residential mortgage-backed securities, a federal judge ruled.
Capital Ventures International says it bought more than $109 million worth of residential mortgage-backed securities certificates from UBS Securities between 2004 and 2006.
Each certificate represents a pool of thousands of mortgages, and Capital Ventures allegedly replied on representations from UBS made in the offering materials about the quality of the loans that formed the security for the certificate.
Claiming that all of its certificates were downgraded to “junk” by at least one rating agency after the housing market collapsed, Capital Ventures filed suit against UBS.
It said the bank failed to abide by the underwriting standards described in the offering materials, alleging that UBS had inflated what percentage of the loans were backed by owner-occupied properties.
It also said that the loan-to-value ratios provided were misleading. And it claimed that the credit ratings agencies relied on false and misleading data in grading each certificate.

Read on.

Foreclosure prevention law could force loan mods

Residents in the state of Massachusetts may have a fighting chance to force a loan modification on their home if they can prove that it would be more financially beneficial to the lender to allow the borrower to stay in the home with a loan mod rather than foreclosing on the property, according to The Republican newspaper out of Springfield, Mass.

The law that will enforce this change goes into effect next month. It will not work unless the homeowner is still able to make some sort of payment each month.

Click here to read more.

Morgan Stanley Can Be Sued Over Moody’s, S&P Ratings

Morgan Stanley (MS) may be liable for ratings issued by Moody’s Corp. (MCO) and Standard & Poor’s on a group of notes backed by subprime mortgages, a judge ruled.

U.S. District Judge Shira Scheindlin said Oct. 5 that investors in a structured investment vehicle named Cheyne may go forward with claims the bank is responsible for passing along inflated ratings on the notes.

The investors, which include Abu Dhabi Commercial Bank, claim Morgan Stanley was negligent for conveying ratings that it should have know were inaccurate. Scheindlin rejected Morgan Stanley’s argument that the alleged misstatements were made by the rating companies, not the bank.

Read on.

Whistleblower says Oregon housing agency fired her when she refused to shred of evidence of mismanagement

SALEM, Ore. – Robin Cook says in court that an Oregon housing agency fired her when she refused to shred evidence of mismanagement and other crimes.

Source: Courthouse News