About Those 1099 and Other Tax Filings from Servicers and Banks …

Faux mortgage and note documents. These were NTMs (non-traditional mortgages). In other words these were securities transactions with zero disclosure to the homeowner who provided the collateral.

Livinglies's Weblog

The problem for everyone involved is that in reality the investors made nothing and merely received a portion of their own money as though it had come from the trust. But it didn’t come from the trust because the trust didn’t even have a bank account. If the banks had disclosed the truth of the matter the investors would have known this is a Ponzi scheme. Imagine what would happen if someone claimed sub S treatment when the corporation they had formed did no business, had no bank account and never had any business activity, never had any assets or liabilities and never had any income or expenses.


Few people can say they understand the Internal Revenue Code (IRC), and far…

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Bernie Sanders Holds Back Tears As Brother Memorializes Their Parents During DNC Vote

Justice League

It is official that Hillary Clinton had clinched the nomination for President. But, this roll call vote for Larry Sanders, Bernie Sanders, who cast the final vote as a representative of Democrats living abroad was very emotional. Yes, Bernie Sanders has lost the Presidential nomination. But the media tend to forget that candidates have family and parents too and may have been the first of their family to run for President or any other public office position. Indeed, any parent would be proud of his or her child that wanted to make a difference in this world.

Huffington Post:

“I want to read, before this convention, the names of our parents, Ely Sanders and Dorothy Sanders,” said Larry. “They did not have easy lives, and they died young. They would be immensely proud of their son and his accomplishments. They loved him.”

“They loved the new deal of Franklin Roosevelt and…

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Bank of America Settles Mortgage-Back Securities Case with Public Fund

Settlements are worthless if based on future payments… As BofA is slated for top pick for break-up by both parties.

Justice League

The bank has agreed to pay $335 million to settle a lawsuit brought by the Pennsylvania Public School Employees’ Retirement System.

The U.S. District Court for the Southern District of New York has preliminarily approved a settlement of a lawsuit brought by Pennsylvania Public School Employees’ Retirement System against Bank of America over the bank’s mortgage-back securities program.

The lawsuit, originally filed in 2011, claims the defendant violated federal securities law by allegedly misrepresenting and concealing the magnitude of the bank’s potential exposure to demands to repurchase mortgage-backed securities that had been sold by Bank of America and Countrywide Financial Corporation, and about alleged risks to the Bank arising from its use of and reliance on a national database that tracks changes in mortgage servicing rights and beneficial ownership interest in loans secured by residential real estate. The lawsuit claims the misrepresentations caused Bank of America stock to trade at…

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FDCPA Claims Upheld in 9th Circuit Class Action

Livinglies's Weblog

The court held that the FDCPA unambiguously requires any debt collector – first or subsequent – to send a section 1692g(a) validation notice within five days of its first communication with a consumer in connection with the collection of any debt.


If anyone remembers the Grishom book “The Firm”, also in movies, you know that in the end the crooks were brought down by something they were never thinking about — mail fraud — a federal law that has teeth, even if it sounds dull. Mail fraud might actually apply to the millions of foreclosures that have taken place — even if key documents are sent through private mail delivery services. The end of month statements and other correspondence are definitely sent through US Mail. And as we are…

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NM and Fla Judges Express Doubt Over Whether Loans Ever Made it Into trust

We have New Century agreements between parties that establish the collateral is merely “pledged” until default and that the investment bank may continue to reuse, repledge, rehypothecate the collateral – even though he collateral is supposed to be inside a closed trust.

Livinglies's Weblog

Judges are thinking the unthinkable — that none of the trusts ever acquired anything and that the foreclosures were and are a sham.



It isn’t “theory. It is facts, or rather the absence of facts.

As shown in the two articles by Jeff Barnes below, we are obviously reaching the tipping point. First, the presentation of a Trust instrument means nothing if there is no proof the trust was active — and in particular actually purchased the subject loan. And Second, Judges will deny all objections to discovery and will rule for the borrower if the Trust did not acquire the loan.

In ruling this way the two Judges — thousands of miles apart — are obviously recognizing that the long standing bank objection to borrowers’ defenses based…

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Mortgage Servicing: You can Bank on Bad Service

Oh, it is so much bigger in reality than anyone realizes. It’s time to rally the troops to start educating the masses. The $3 TRILLION in underfunded pensions across the United States is a devastation that nobody in the main stream media has linked to the banks and the deregulation of Glass-Steagall and other laws that protected retirement funds. This “underfunding” or “shortfalls” terminology is a delusional ruse.

The pension funds were gambled away on Wall Street betting on risky unregulated derivative securities. Yeah, there are “shortfalls” due to bad investments – very bad investments! And believe me when I tell you that had this mortgage scheme been more highly regulated, these securities transactions would have been mandated to provide full disclosure to the homeowners and fraud would be fraud.

Had homeowners have been fully informed many would not have risked their properties in these NTMs. Average homeowners and honest attorneys have put the spotlight on this travesty – not politicians who intentionally did the damage. Now, it is time for all good men and women to link the pension-gate to the intentional deregulations without oversight and warn the world.

These shortfalls and underfunding of pension funds is not due to homeowners who don’t want to pay. Nine out of ten homeowners have tried to modify their loans under the HAMP scam. The banks won’t take their money because insurance pays quicker. Where’s the moral dilemma? It’s in the computer software scheme that has weaponized our own data against us.

Livinglies's Weblog


By The Lending Lies Team

The Goldman’s bought their house months prior to 9/11. For a decade before they had been able to supplement their income by restoring old homes and returning them to their original condition. On average they netted about 27k a home after taxes and expenses. They were so credit-worthy they were granted signature loan status.

Then 9/11 occurred and the markets froze. All of a sudden the Goldman’s had two homes and couldn’t sell either.   Within six months the markets started correcting and although they had gotten behind on their payments they had enough equity in each property- that they could have sold the homes and paid the banks back in full. The banks had different plans.

In fact, the servicer didn’t want to work with the Goldmans- they wanted their homes. The Goldman’s could easily make good on both loans with a little assistance based…

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Washington state invalidates common mortgage provision

Now, as long as the banks, servicers, Fannie and Freddie don’t thumb their noses at the statute and the courts – this will be a good thing. Wonder who their trying to buy off now?

Justice League


Laura Jordan came home from work one day to find herself locked out.

She had missed two mortgage payments, and the company servicing her loan had changed the locks without warning.

Laura Jordan came home from work one day to find herself locked out. She had missed two mortgage payments, and the company servicing her loan had changed the locks without warning.

In a ruling this month, the Washington Supreme Court found that action illegal — a decision that clears the way for a federal class-action case that Jordan brought on behalf of at least 3,600 borrowers in the state, and one that could have broad ramifications on how some lenders respond when homeowners miss payments.

“This is criminal trespass and theft, and it should be treated as such,” said Sheila O’Sullivan, executive director of the Northwest Consumer Law Center. “There’s no basis for them to walk in…

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A Refreshingly Honest Email

IMHO – This was a refreshingly honest email received from the Alan Grayson for U.S. Senate by the Committee to Elect Alan Grayson campaign today.

Print  Dear Sydney,

ALAN GRAYSON 2016 PHOTOYou probably get the same nonsense e-mails from the Democratic Party as I do — touting nonexistent matching contributions, fake fundraising goals, feigned intimacy, faux indignation, etc. Until now, I could live with all that, because I always thought of the Democratic Party as a force for good. But now there is this whole new thing, this new Big Lie.

The dictators who have seized the machinery of the Democratic Party are raising money from Democrats and spending it to defeat a Democrat. Namely me.

Oh, they’ll screech in their e-mails about how much they’re concerned about Donald Trump’s election, or the Koch Brothers’ dirty money, or whatever. They beg relentlessly for us to contribute to them, lest we open the seventh seal and usher in the apocalypse.

Well, they’re bearing false witness. And if Judgment Day ever does come, they surely will go straight to hell.

One of these so-called Democratic groups, the Church of Senator Harry Reid (otherwise known as the Senate Majority PAC) is spending $1 million against our campaign, less than two months before our primary election. They are taking our blue money, under the false pretense of helping Democrats, and instead using it to defeat a member of our own party!

Why me? Because I am unbought, unbossed, and unwilling to worship their Wall Street idols. Because my flock is The People — citizens who believe in democratic government free from special interests and corruption, where our leaders are chosen by us, not dictated by the Establishment.

What’s at stake now in our election? Democracy itself. And an opportunity to take back our Party from the corrupt bag-men who have stolen it from us.

As long as YOU still believe that it’s possible for We, the People, to beat the liars, we can win. Will you lift up our campaign, with a contribution of $15 or whatever you can afford?

We’re not willing to pass the collection plate on Wall Street to fund this campaign. We’re leaving it to our opponents to collect their thirty pieces of silver. We’re counting on you, and thousands of other progressives, to come together — to fund our movement, and to fuel our political revolution. Whether I win or lose this election should be up to the voters, not the party autocrats.

It’s still possible for ordinary people to come together and take charge of our government and our lives, and defeat the un-Democratic Party oligarchs. Chip in $15, or whatever you can afford, to help us do just that >>


Rep. Alan Grayson


This post is for information purposes only. It is not meant a a political advertisement.

SOL – “As the action is time-barred, it cannot be commenced again and the controversy therefore has reached an ultimate outcome.”

A Sydney Sullivan Report

Source: Stopforeclosurefraud – HSBC v CLARK-MOORE | NY SC – As this action is time-barred, it cannot be commenced again and the controversy has therefore reached an ultimate outcome. 

ExpiredThis is a most interesting case. Statutes of limitations exist for both civil and criminal causes of action, and begin to run from the date of the injury, or the date it was discovered, or the date on which it would have been discovered with reasonable efforts. In foreclosure cases there have been controversies stemming at times from the games the servicers play with “trial” payments and modifications.

Many statutes of limitations are actual legislative statutes, while others may come from judicial common law. Source: Cornell University Law School, Legal Information Institute. Both federal and state have various statutes and federal bankruptcy statutes of limitations that may even trump the others.

Here, in CLARK-MOORE, the Supreme Court of the State of New York clarified several controversies found in other circuits by specifying precisely when the SOL begins, “by the commencement of the first action” simply stating:

Fel Moore SOL

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CFPB Sanctions Law Firm and Debt Buyer For Failing to Review Account Documentation

“Using the law firm’s own software, CFPB determined that the law firm lawyers typically spent less than a few minutes reviewing a complaint package and comparing it to the summary information on the spreadsheet before signing the complaint and filing it with the court. The lawyers did not review the account level documentation…”

Justice League

On April 25, the Consumer Financial Protection Bureau (CFPB) entered an enforcement order against New Jersey law firm Pressler and Pressler and its debt-buyer client, New Century Financial Services, for pursuing hundreds of thousands of debt collection lawsuits without reviewing the underlying documentation supporting the existence of a debt. The law firm agreed to pay a $1 million fine, the debt-buyer client agreed to pay a $1.5 million fine, and both agreed to extensive recordkeeping and compliance measures going forward. These recordkeeping and compliance measures include an obligation to file account information in the court file of defaulted debt-collection cases before obtaining a final judgment, and to do no prejudgment discovery of a debtor’s assets.

The sanction stemmed from the manner in which the debt-buyer client communicated with its law firm. Rather than sending account files of the purchased debts, the client would electronically send spreadsheets showing debtor information and…

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