About Deadly Clear

This blog site is for you - to make your opinions known and enable you to express your thoughts, insights, fears and be DEADLY CLEAR. The author of the blog has become more compassionate and socially enlightened with age after entering this world from a very brainwashed right-winged culture. My goal is to achieve perfection and share in Ho'oponopono which means to make things right.

Mortgage-Backed Securities: “It Is The Rare Ordinary Human Being Who Understands Them”

Deadly Clear:

Does 11 USC § 548(e) have any effect when loans were not timely assigned to the securitized trusts (by the closing dates), clouding the title for the homeowners, depriving investors of standing and/or in some states a loss of proprietary land record placement; and/or when loans were sold multiple times (FCIC, pg. 407)?

Originally posted on Bankruptcy-RealEstate-Insights:

In re Lehman Bros. Holdings Inc., 513 B.R. 624 (Bankr. S.D.N.Y. 2014)

A purchaser of residential mortgage-backed securities filed proofs of claim based on alleged misrepresentations by the debtors in offering materials distributed in connection with sale of the securities. The debtors objected and sought to subordinate the claims as claims arising from securities “of” the debtors.

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Two years later Ocwen still trying to sell company’s chairman’s Atlanta home

Deadly Clear:

What? No extradition from St. Croix?

Originally posted on Justice League:

hahamouse

Two years ago, part of mortgage servicerOcwen Financial Corp. relocated to St. Croix and the company’s chairman, William C. Erbey, wanted to move there, too. The company bought Erbey’s Atlanta home for $6.4 million and put it on the market in September 2012. The house is still for sale and stockholders are paying the price, reports The Wall Street Journal.

By many measures, the company paid too much for the house at 4701 Northside Drive, reports WSJ Moneybeat. Erbey bought the six-bedroom, 12-bathroom, 14,387-square-foot home in 2006 for $4.385 million. He sold it to the company at a 47.7 percent increase, although the median value of top-tier homes in the area had dropped 11.2 percent, the WSJ adds.

Read on.

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Cashmere v. State of Washington Dept of Revenue: Recent REMIC case in Washington

Deadly Clear:

They didn’t even assign the financial assets – makes sense to me. Hopefully, Judges are starting to see the light.

Originally posted on Justice League:

This is a Sept 25, 2014, Washington State supreme court ruling on REMIC taxes not exempt because Cashmere did not receive any interest in mortgages or deeds of trust to back its investment.

Cashmere v. Dept of Revenue (PDF)

Michael Gamsky testified that REMIC investments are not secured transactions because issuers do not pledge any property as security for the investments. He explained that investors who purchase REMIC certificates are beneficiaries of a trust and they have contractual rights under the pooling and servicing agreement, but they are not secured investors.

After reviewing the evidence, the superior court granted summary judgment to DOR. The Court of Appeals affirmed, holding that Cashmere’s investments were not primarily secured by first mortgages or deeds of trust because Cashmere had no power to institute foreclosure proceedings. Cashmere Valley Bank, 175 Wn. App. at 418. Thus, the bank’s investments were not secured and the deduction…

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AIG’s Ex-CEO Says He Took the Job to Help His Country

Deadly Clear:

Oh, sometimes Edward you are just too funny for words. Anyone vote for a lie detector… What did he know and when did he know it?

Originally posted on Justice League:

hahamouse

LOL! What a joke! You mean steal from his country…

Former American International Group Inc. (AIG) Chief Executive OfficerEdward Liddy defended his role as the government-tapped leader of the company at the time of a 2008 bailout, saying he took the job to help his country and protect shareholders.

Without taking an $85 billion loan from the Federal Reserve Bank of New York at steep terms, which now face a legal challenge from then-largest AIG shareholder Maurice “Hank” Greenberg’s Starr International Co., the insurer would have wound up in bankruptcy and stockholders “would have been wiped out,” Liddy told a government lawyer today in Washington federal court.

Read on.

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2nd Circ. Kills $27B Deutsche Bank RMBS Suit

Deadly Clear:

Judges are finally reading the FCIC Commission report, yeah? http://fcic.law.stanford.edu/report

Originally posted on Justice League:

Law360, Los Angeles (October 17, 2014, 9:14 PM ET) — The Second Circuit on Thursday declined to grant a panel or en banc rehearing of its decision to toss an investor class action alleging Deutsche Bank AG lied about its $27 billion exposure to risky mortgage assets during the financial crisis.

A three-judge appellate panel in July refused to revive the action, finding that the bank’s estimation of its position was a matter of opinion. It held that the plaintiff investors failed to establish that statements from the bank about its exposure to risky residential mortgage-backed…

Source: Law360

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N.Y.’s Lawsky Considering Strict Cybersecurity Regime for Banks

Deadly Clear:

Does Lawsky even understand that there is a storage vat of personal data – already and waiting unless the borrowers “opt-out” after the fact?

Originally posted on Justice League:

Banks chartered in New York could soon be required to appoint chief information security officers and submit to quarterly tests of their systems’ vulnerabilities under a cybersecurity regime being considered by state regulator Benjamin Lawsky.

Those strict requirements appear in the Department of Financial Services’ sweeping, controversialproposal for regulating virtual currency businesses. Lawsky said this week he is thinking of using the cybersecurity provisions of the so-called BitLicense framework as a model for banks and insurance companies on his watch. Those rules would be far more stringent than any existing data-security regulations for financial institutions.

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Woman Says Bank Foreclosure Killed Her Mom

Deadly Clear:

Psychotic comes to mind. Hope there is a jury trial.

Originally posted on Justice League:

FRESNO, Calif. (CN) – A woman died after Wells Fargo locked her out of her home in foreclosure proceedings, leaving her unable to plug in the oxygen concentrator she needed to live, her daughter claims in court.
Brooke Noble sued Wells Fargo Bank on Thursday in Superior Court, for negligence and the wrongful death of her mother, Marsha Kilgore.
She claims that in its foreclosure proceedings, Wells Fargo violated state orders and locked her mother out of her home. Her mom died on Oct. 16, 2013, “from inability to breathe,” according to the lawsuit.
The bank knew that her mother was dependent on an oxygen concentrator that needs to be plugged into the wall, Noble says.

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AIG Bailout Trial and the Deadbeat Borrower Defense

Deadly Clear:

Nothing agrivates me more than the deadbeat borrower defense. These banks and AIG were in a simultaneous loan procurement to securities exchange scheme…using the homeowners social security number (person) in the transaction …without disclosure to the homeowners.

Originally posted on Justice League:

Posted onOctober 14, 2014by Yves Smith

It’s déjà vu all over again.

I’m only starting to dig into the AIG bailout trial by reading the transcripts and related exhibits. That means I am behind where the trial is now. However, that gives me the advantage of contrasting what is in the documents with the media reporting to date. And what is really striking is the near silence on the core argument in this case.

The Starr International v. the United States of America suit is, at its core, about whether an insolvent borrower still has the right to the protection of law. It’s thus a high-end, big-ticket replay of the same form of arguments that homeowners fighting foreclosure often tried in court to obtain a mortgage modification: we don’t dispute that we aren’t able to meet our obligations, but the party foreclosing on us needs to go through…

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JPMorgan CEO Jamie Dimon Asks For Help With Data Breaches

Deadly Clear:

Too Big To Protect. The patents describe data storage where applications for credit, home loans , etc. we’re gathered and made accessible to all the players. Privacy – out the frickin’ door! If Dimon wants protection – so do we! Make them dump their data storage and confiscate the patents that control the software.

Originally posted on Justice League:

Yet, he won’t tell the 83 million customers if any of their information was compromised.

JPMorgan Chase CEO Jamie Dimon offered a grave warning on Friday about future cyberattacks.

Making his first public statement about theenormous data breach that roiled the bank this summer, Dimon said the company would spend $250 million a year to increase security and prevent future breaches,The New York Times reported.

“This is going to be a big deal and there will be a lot of battles,” he said, according to a JPMorgan spokeswoman. “We need a lot of help.”

Read on.

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