Reading the biased judicial opinion in the transcripts of the Florida case, Deutsche Bank vs. Renee Cuenca compels the apparent need to make an early opening statement.
Maybe it needs to be dialogue on a new television series – like “Fraud & Foreclosure” … or “Un-Justice”.
The Cuenca transcripts – like the more recent foreclosure orders dissing the borrowers’ rights to challenge the Assignment of Mortgages, instill a vivid picture of the “cow jumped over the moon.” How does the Judge get from point A to point D without connecting the dots? These Judges are killing the titles.
Is it a premeditated plan coming from a higher cartel? Or is it psychotic indifference? Can you imagine sitting on the bench and not being concerned sua sponte for some 80 year old widow who has made 27 years of payments, was scammed into a short term defective ARM, has lost all of her equity, spent her savings in the modification scheme – and is now getting evicted? Whoa! Wait a minute! Where the hell is the justice here?!
With that thought in mind – let’s plead the case with a made for TV opening statement and pretend we have a jury sitting in the court room (that the Judge never intends to allow us have):
My client was targeted [example: Wells Fargo patent – all the banks have or use patents that they targeted buyers] and was convinced by an inflated appraisal and a slick sales technique that this mortgage was a good, solid investment.
That turned out not to be true. The appraisal was inflated, as most were during the mortgage tsunami, and that fact has been testified before Congress to by the Appraisal Institute and the American Society of Appraisers. Inflated appraisals are a cause of action in almost every investor lawsuit against the banks. Even though the real estate market can drop – this financial force majeure was more than a mere drop – it was a collapse – a complete collapse of the world wide economy – with millions upon millions of inflated appraisals.
And why? Not because borrowers couldn’t pay – but because Wall Street investment firms committed fraud and allowed inflated appraisals, the systematic abandonment of underwriting guidelines and overrated the bonds. Investors want rescissions for the fraud and trillions of dollars in settlements have caused the trusts to deflate landing mortgages back into the laps of about 6 banks – when there used to be 600 pretender lenders writing loans 5 years ago. The banks simply wrote more loans than they can legally hold.
My client was convinced that his house was worth $260,000 and by putting 3.5% down
($7560) plus 2 pts and closing costs ($7825) he could obtain a loan for his home at 7.25% interest only for 5 years and if he made all of his payments and kept his credit in good standing he was sold he would have the “option” to refinance his home in a couple of years and certainly before the end of his 5 year “option” …securities option.
My client had no idea of the Wall Street Ponzi scheme or the real estate fraud market. My client was simply sold that 70 years of historic trends in real estate always had a growth. Just like the tobacco companies sold cigarettes in the 50’s and 60’s – it was all good for you.
Now, my client invested nearly $16,000 and figured, by the certified appraisal the lender provided for him and he relied upon, that he still had $28,000 of equity in his investment when all was said and done; because he was taking out a $216,000 mortgage. Your Honor, the certified appraisal, at the crux of the fraud as we all know by now, was inflated. The real value of the home was more in the neighborhood of $116,000; and after my client’s investment – his mortgage should have been $100,000.
My client’s inflated mortgage payment was $1474, again – interest only, that he made faithfully on time every month for 4 years. That’s $70,752 over 48 months. A great deal of money for a fraudulent investment. But that’s not all your honor, he paid his taxes based on an inflated mortgage figure which total another $8500 over 4 years.
Additionally, because my client was led to believe this was a good investment, he improved the home and added new appliances and a sunroom that cost him out of pocket $41,962.
If you are doing the math your Honor, my client, as I said in the beginning has paid dearly for this house and we’re not even into the title fraud yet – he’s paid the bank $86,752 of that fraudulent appraisal price – and he’s $21,214 self invested over an above what the property is worth today – in reality what the real value was in 2005 – yes, your Honor, my client has paid dearly for this loan. And if Wall Street hadn’t collapsed the economy with their securities scheme – my client would still likely have been able to exercise his option and refinance his mortgage. But Wall Street got caught defrauding investors by inflating appraisals, systematically abandoning underwriting guidelines and over-rating bonds, nothing my client had any control over – they should pay, your Honor – not my client.
Nobody is walking away with a free home. But in today’s fraudulent Wall Street mortgage scheme the borrower’s investment needs to be considered. And when there is fraud, as in this case, your Honor – that too needs a considered adjustment as well.
My client performed under the terms of the contract and promises, your Honor. It was the lender that could not continue to perform and allow my client to refinance at the end of his “option” ARM loan – it was the lender that sold a defective loan, knowing there would be no option in five years or that it was highly unlikely – the lender knew it wasn’t in the deck of cards the lender was dealing… but my client did not know that.
Like tobacco – nicotine was added to stimulate the smoker. In this case a calculated credit scheme stimulated the buyer. Tobacco knew cigarettes were bad – just as Wall Street knew the appraisals were inflated and the loans were defective. Only Wall Street went further than tobacco – they defrauded not only the homeowners and choked the titles – but also defrauded investors and the public whose pension funds they stole – maybe even yours, your Honor?
The homeowners’ lives and title, like the smokers whose lungs were destroyed, were just victims of the banks’ psychotic financial scheme to profit. In both examples, misrepresentation and corruption have caused cancers that we can’t cure until the full picture is examined.
As I said – we haven’t even addressed the title fraud yet – but maybe we have gotten to a more level playing field where you don’t solely assume your banks are the victim.”