Daily Archives: March 12, 2014

Wells Fargo made up on-demand foreclosure papers plan: court filing charges

Wells Fargo, the nation’s biggest mortgage servicer, appears to have set up detailed internal procedures to fabricate foreclosure papers on demand, according to allegations in papers filed Tuesday in a New York federal court.

In a filing in New York’s Southern District in White Plains for a local homeowner in bankruptcy, attorney Linda Tirelli described a 150-page Wells Fargo Foreclosure Attorney Procedures Manual created November 9, 2011 and updated February 24, 2012. According to court papers, the Manual details “a procedure for processing [mortgage] notes without endorsements and obtaining endorsements and allonges.”

Those are the technical terms for the paperwork proving that the company that’s foreclosing owns the loan, and therefore has the right to kick a family out of its home. Wells Fargo services roughly 9 million home loans, according to Inside Mortgage Finance.

A Wells Fargo spokesman denied that the manual could be used to order improper documents. “No note is endorsed without the proper authority,” he said. “Wells Fargo’s foreclosure processes—today and back in 2012—are legal [and] appropriate.”

Attorneys, forensic accountants and consumer advocates have long suspected that banks were systematically creating improper documents to prove ownership of loans. Foreclosure defense lawyers use the term ‘ta-da’ endorsement to describe situations in which they say a document appears, as if by magic, in the bank’s possession as needed in a foreclosure case—even though the proper endorsement was not included in the original foreclosure filing. It might sound like a technicality, but correct proof of ownership lies at the heart of the foreclosure crisis for securitized loans, which were sold by the lender that originally issued the mortgage. To legally transfer a securitized loan, the endorsements and allonges have to be created in a very specific way and within a specific time frame, usually 90 days after a residential mortgage trust closes. For many loans in foreclosure now, which were originated years ago and then sold, it’s way too late to correct incomplete documents, experts said.

If the allegations in Tirelli’s court filing are true, this manual represents the first time ‘ta-da’ endorsements are “being described and admitted to be a procedure” at a major bank, as Tirelli claimed to The Post.

Click here.



Happy Birthday Dr. Seuss!

Happy Birthday  Dr. Seuss!

Publication date: March 12, 1957 (renewed 1985)

I will not trust the banksters and their scam. I will not trust them. Sam, I am. (my version)


Ex-Goldman’s Tourre Ordered to Pay $825,000 in SEC Case

Ex-Goldman’s Tourre Ordered to Pay $825,000 in SEC Case

Ex-Goldman Sachs Group Inc. (GS) vice president Fabrice Tourre, found liable for his part in a failed $1 billion investment, was ordered to pay more than $825,000 in the U.S. Securities and Exchange Commission case.

U.S. District Judge Katherine Forrest in Manhattan ruled today that Tourre must pay $650,000 in civil penalties and give up $175,463 of his 2007 bonus, plus interest. He can’t seek reimbursement of the penalties from Goldman Sachs, the judge ruled.

Tourre, 35, was found liable Aug. 1 after a jury trial at which the SEC claimed he intentionally misled investors in a subprime-mortgage vehicle called Abacus 2007-AC1. Tourre lied about the role played by billionaire John Paulson’s Paulson & Co. hedge fund, which helped choose the securities underlying Abacus then made a billion-dollar bet it would fail, the agency said.


Senators Okay With Spying On Citizens, But Outraged It Happened To Congress

Senators Okay With Spying On Citizens, But Outraged It Happened To Congress

“Those Who Sacrifice Liberty For Security Deserve Neither”. Benjamin Franklin

WASHINGTON — Sen. Dianne Feinstein (D-Calif.), a staunch defender of government surveillance of ordinary citizens, took to the Senate floor Tuesday with the stunning accusation that the Central Intelligence Agency may have violated federal law to spy on Congress.

Feinstein, head of the Senate Intelligence Committee, railed against the CIA for compromising the legislative branch’s oversight role — a theme echoed by many of her Senate colleagues throughout the day. The outrage was palpable among lawmakers on both sides of the aisle, and some suggested CIA Director John Brennan should resign if the allegations are true. Sen. Lindsey Graham (R-S.C.), who has stuck up for intelligence agencies in the past, declared a potential war.

“This is Richard Nixon stuff,” Graham told reporters. “This is dangerous to the democracy. Heads should roll, people should go to jail if it’s true. If it is, the legislative branch should declare war on the CIA.”

When former contractor Edward Snowden revealed last year that the National Security Agency was secretly collecting phone and electronic records from millions of ordinary Americans, the response in Congress was far more muted. Top senators insisted the surveillance was critical to U.S. counterterrorism activities.

“It’s called protecting America,” Feinstein said then. Graham said he was glad Verizon was turning over customer records to the government to ensure that his phone was not linked to any terrorist activity.

It was not until reports that the NSA had spied on foreign leaders and allies, such as German Chancellor Angela Merkel, that Feinstein offered criticism of the agency’s surveillance.

Reminder HAMP homeowners: Your mortgage rate will increase

Fannie Mae sent a polite reminder to mortgage servicers that the five-year anniversary of the federal government’s Home Affordable Modification Program is right around the corner.

This means that for many homeowners with this modification, their mortgage interest rate will begin to increase.

“When these loans were modified, the interest rate was reduced to a below-market rate (as low as 2%) for a set period of time (generally five years),” writes Laura Haverty on Fannie Mae’s Housing Industry Forum. “However, that interest rate will now rise annually by a maximum of 1% per year, until it reaches a “cap” rate which was based on the Freddie Mac Weekly Primary Mortgage Market Survey Rate for 30-year fixed-rate conforming mortgage loans, rounded to the nearest 0.125%, as of the date that the modification agreement was prepared. “





Wells Fargo Home Mortgage Foreclosure Attorney Procedure Manual, Version 1 Status: Revision 3 Origination Date: 11/09/2011 Date Last Published: 02/24/2012 Purpose Pre-Introduction We ask that you share this manual within your office, including those who may not be directly involved, to educate your staff on the Foreclosure program High Level Description of Process Delinquent loans will be referred to the attorney once set up in the Foreclosure Workstation after the expiration of the demand. The attorney will be handling these loans from Referral to Sale/Confirmation/Redemption. The assigned Wells Fargo liaison will assist the attorney with any issues that arise outside of the normal process and review audit results. Upon completion of the required documentation, the attorney will be authorized to file the Foreclosure Notice, keep Wells Fargo up to date, and address objections to the Foreclosure without loan level approval under established timeframes/guidelines. Any over-allowable or hourly fee requests not listed in the pre-approval form will require loan level approval from Wells Fargo. If the attorney receives notice of an adversary, litigation issue, motion for sanctions, or any issue the attorney cannot complete in a time manner timely or any issue that will cause a delay in the timely execution of the sale, refer to the Litigation section of this manual. Wells Fargo will provide further instruction upon receipt of the communication from the attorney. The attorney will also be required to receive authorization for all over-allowable fees and costs as well as hourly billing requests for items not covered by the pre-approval form. If the mortgagor contacts the attorney, and the attorney is unable to answer, the customer should be directed to the appropriate customer service number listed below. At no time should the Wells Fargo Liaison’s direct phone line be provided to outside parties. Wells Fargo Home Mortgage Foreclosure Customer Service – 1-800-868-0043 America’s Servicing Company Customer Service – 1-888-828-2377



Debt collectors go after service members despite protections

Debt collectors go after service members despite protections

Debt collectors are targeting members of the Armed Services by calling their superior officers, threatening reduction in rank and even courts-martial, despite stepped-up efforts to protect them from abuse, according to a government reportissued last week.

“I have heard in my many visits to military installations across the country about aggressive and deceptive tactics by debt collectors specifically targeting members of the military,” said Holly Petraeus, assistant director for service member affairs at the Consumer Financial Protection Bureau.

Petraeus, in a letter accompanying the report, said the “sheer volume of debt collection complaints alone” makes the issue important to her office.

While all Americans are covered by laws barring debt collectors from overly aggressive or deceptive tactics, military members and their families are supposed to receive additional consideration, including protection from foreclosure while deployed, tricky high-rate loans and other financial pitfalls.

That’s because they face particular financial challenges: they relocate frequently, deploy overseas and often are targeted by scammers promoting rip-off deals, officials and advocates say.

Yet military members routinely are denied their additional legal protections, Petraeus’ office found.