MBS Investors waking up to the fact that servicers represent servicers — not investors.

Originally posted on Livinglies's Weblog:

Hat Tip to Patrick Giunta, Esq.

Stumbled across this 5 year old article that supports the view that servicers are the real parties in interest who are protecting only their own interests at the expense of investor and borrower alike. The facts are undeniable. If the loans were modified or worked out, the investors would have done much better than the self inflicted crash imposed by banks posing as servicers on loans for trusts that exist only on paper and not in real life.

The fact remains that if the servicers were eliminated and a new venue was created to intermediate between borrowers and investors, the investors, the borrowers and the taxpayers would all be better off. Only the banks would ,lose out on prospective illegal gains that they have been faking for a decade. The government should have provided this venue. The crash would not have occurred and the…

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U.S. stocks plummet on China fears; Dow down 12.5% from peak

Deadly Clear:

September! Predictions were for September!

Originally posted on Justice League:

Interesting in Robert Kiyosaki’s book, Rich Dad’s Prophecy, he predicted  in 2002 that the biggest stock market crash in U.S. history would happen sometime around 2016.

A small bit of bad economic news from China sparked a big global reaction as U.S. stocks followed the rest of the world’s markets down sharply Tuesday, a sign of investors’ deepening concerns about the strength of the Chinese economy.

The blue-chip Dow Jones industrial average dropped nearly 3%, falling 469.68 points, to 16,058.35, while the broad-based Standard & Poor’s 500 index fell 58.33, also about 3%, to 1,913.85.

The latest sell-off comes after stocks rebounded last week with the biggest two-day rally in seven years and continues the wild volatility that has marked trading sessions for more than two weeks. Despite the two-day gain, Dow has lost nearly 2,500 points over nine other days.

Read on.

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Proof of Ongoing Foreclosure Fraud and Mortgage Document Fabrication, in Five Emails

Deadly Clear:

Until the software patents are confiscated the “seamless automation” will continue and the computers will continue to commit the frauds.

Originally posted on Justice League:

Five years ago this month, GMAC became the first mortgage servicer to announce that they would suspend foreclosure operations, due to irregularities in their document preparation. Within a few weeks every major mortgage servicer in America followed suit. This is usually called the robo-signing scandal, but to be more precise we gave it the name foreclosure fraud. It ended with the five leading servicers, including GMAC, signing the $25 billion National Mortgage Settlement.

Except it didn’t end, and this past week I was handed inconvertible proof of that fact. The scenario is so fantastical that if I didn’t have a working knowledge of foreclosure fraud I wouldn’t have believed it. But it appears to be very real.

Bill Paatalo is a former cop who worked in the mortgage industry as a loan officer and, from 2002-2008, the President of Wissota Mortgage in the Midwest. Since 2009, after experiencing his own…

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The U.S. foreclosure crisis was not just a subprime event

Deadly Clear:

Effective regulation ought to start with confiscating the patented software programs used by the bandits.

Originally posted on Justice League:

While I agree that the foreclosure crisis was not caused by subprime event, the article leaves out  that The Financial Crisis Inquiry Commission’s report (you can get it online) on the housing meltdown found most of the blame with risky lending practices by the banks, inflated home values by appraisers, and banks making money from originated fees by bundling and selling off a lot of the risk as MBS mixed with good and bad loans and getting the blessing of an A+ rating by the credit rating agencies.

Each month, the NBER Digest summarizes several recent NBER working papers. These papers have not been peer-reviewed, but are circulated by their authors for comment and discussion. With the NBER’s blessing, Making Sen$e is pleased to begin featuring these summaries regularly on our page.

The following summary was written by the NBER and doesn’t necessarily reflect the views of Making Sen$e. We will tell you, however…

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Fed Up Investors Yank Cash From Almost Everything Just Like 2008

Originally posted on Justice League:

  • Credit Suisse report shows cash is leaving bond, equity funds
  • First back-to-back months of simultaneous outflows since 2008

Mom and pop are running for the hills.

Since July, American households — which account for almost all mutual fund investors — have pulled money both from mutual funds that invest in stocks and those that invest in bonds. It’s the first time since 2008 that both asset classes have recorded back-to-back monthly withdrawals, according to a report by Credit Suisse.

Credit Suisse estimates $6.5 billion left equity funds in July as $8.4 billion was pulled from bond funds, citing weekly data from the Investment Company Institute as of Aug. 19. Those outflows were followed up in the first three weeks of August, when investors withdrew $1.6 billion from stocks and $8.1 billion from bonds, said economist Dana Saporta.

“Anytime you see something that hasn’t happened since the last quarter of 2008…

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It’s Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington

Originally posted on Justice League:

Here’s Bloomberg:

China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter.

Channels for such transactions include China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn’t public. China has communicated with U.S. authorities about the sales, said another person. They didn’t reveal the size of the disposals.

The latest available Treasury data and estimates by strategists suggest that China controls $1.48 trillion of U.S. government debt, according to data compiled by Bloomberg. That includes about $200 billion held through Belgium, which Nomura Holdings Inc. says is home to Chinese custodial accounts.

The PBOC has sold at least $106 billion of reserve assets in the last two weeks…

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Bookkeeper sentenced for failing to report $24M mortgage fraud

Originally posted on Justice League:

Yet, no jail time for the banksters….

A bookkeeper who failed to report mortgage fraud was sentenced to two years’ probation, with six months to be served on home confinement, for his conviction for concealing massive financial institution fraud.

Ignacio Huergo was also ordered to pay restitution in the amount of $736,254.25 to M&T Bank.

Assistant U.S. Attorney Trini Ross, who is handling the case, stated that Huergo worked for the companies of Frank Garcia, Federal Guaranty Mortgage CompanyandGuaranty Realty and Investment as a bookkeeper and tax preparer between 2006 and 2008.

Read on.

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Countless Consumers Are Paying Off Someone Else’s Debt Because Of Default Judgments

Deadly Clear:

This stems from the software patents – software developed before there were enough safeguards in place to protect the consumer…and certainly without any thought of privacy laws.

Were you asked if you wanted to share your personal information? Were you told it would be in an archaic cloud (years before the “cloud” became so popular). The simple answer is NO – you were never advised or told that the information was going into a “data storage” tank accessible to thousands of other people everyday! See the 1003 loan application for example: https://deadlyclear.wordpress.com/2012/04/18/behind-the-securitization-curtain-21st-century-mortgage-casino/

Originally posted on Consumerist:

Imagine receiving a phone call that 25% of your wages are going to be garnished because of a credit card account opened 14 years earlier that was never paid off. Making things worse, you know you didn’t have a credit card from the bank in question at that time, so it can’t possibly be your debt. This should be an easily remedied error, but not if a court has already granted a default judgment against you, making you responsible for paying back money that you didn’t owe and didn’t find out about until it was too late.

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Correction or Crisis?

Deadly Clear:

August 24, 2015 – The U.S. stock market had a wild Monday morning in response to another sell-off in China and other major countries, with the Dow Jones industrial average first plunging more than 1,000 points before surging back to trim its losses.

The blue-chip industrials were off about 580 points, or nearly 3.5%, at about 16,150 in midday trading. It had skidded as much as 1,089 points moments after the opening bell and cut its loss dramatically to about 115 before falling again. LA Times

Originally posted on azizonomics:

stock_crash_07

After almost seven years of relative calm and stability, a stock market crash is finally upon us.

This is a very predictable crash stemming from a very widely known cause. Hundreds of analysts including myself — following the trail illuminated by Michael Pettis — have for a long time been banging on about a Chinese slowdown gathering an uncontrollable momentum, sending China into a panic, and infecting global markets.

What’s less clear yet is whether this is a correction or a crisis. My view is toward the latter, simply because confidence is fragile.  Once the animal spirits of the market turn negative, it takes a heck of a lot to soothe them. And the markets look increasingly spooked. The fear is rising. Last week I tweeted that I felt the risks of a new financial crisis are greater than ever.

The reasons why are simple: Western central banks have gone a…

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Donald Trump Puts ‘Hedge Fund Guys’ on Notice

Deadly Clear:

Trump’s correct. And. He’s speaking to all of us – as crazy as that is. How he handles the goofy politics and still protects himself from the cabal is the main question.

Originally posted on Justice League:

“The hedge fund guys are getting away with murder.”—Donald Trump

25 hedge fund managers made more than 24 billion, enough to pay the salaries of 425,000 public school teachers.

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The billionaire Republican front-runner assailed hedge fund managers in a Sunday appearance on CBS’ Face the Nation in which he portrayed himself as a champion of the middle class.

“They’re paying nothing. And it’s ridiculous,” Trump said of those who make a living running hedge funds. “I want to save the middle class. You know, the middle class—the hedge fund guys didn’t build this country. These are guys that shift paper around and they get lucky. And, by the way, when the market collapses, like it is now, the market is going down, they’re losing a fortune.”

Sanders, the leading challenger to Hillary Clinton for the Democratic presidential nomination, has routinely gone after hedge fund managers during his populist campaign.

For Trump, who often…

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