What It Means to Cure a Default: Never Take Anything for Granted, the Rules Can Always Change


Pacifica L 51 LLC v. New Investments Inc. (In re New Investments Inc.), 840 F.3d 1137 (9th Cir. 2016)

The debtor proposed a chapter 11 plan that included curing defaults under a mortgage loan. The lender objected because the cure payments were calculated using the pre-default interest rate as opposed to the higher default rate.

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“The mirage of promised mortgage modification lured the plaintiff debtors into a kafkaesque nightmare of stay-violating foreclosure and unlawful detainer, tardy foreclosure rescission kept secret for months, home looted while the debtors were dispossessed, emotional distress, lost income, apparent heart attack, suicide attempt, and post-traumatic stress disorder, for all of which Bank of America disclaims responsibility.”  All too familiar.

$45 Million for Stay Violations posted by Alan White

How much in punitive damages is enough to punish unlawful conduct and deter its repetition? $45 million was one bankruptcy court’s opinion, in the case of a wrongful home foreclosure and eviction in knowing violation of the automatic stay.

The court described the plaintiff-debtors’ treatment by defendant Bank of America as Kafkaesque, and found their deeply emotional testimony (one of them attempted suicide during the ordeal) completely credible, awarding more than $1 million in actual damages for the loss of housing and emotional distress. The court also noted that Bank of America had repeatedly settled cases with federal and state regulators for hundreds of millions, and even billions, of dollars, in recognition of serious and repeated compliance failures, including some related directly Continue reading

The Feds Bag another Small Fish: Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Bank Fraud at Public Foreclosure Auctions

…And off in the distance as they escorted him away in handcuffs he mumbled, “Fannie made me do it” but no one cared, wrote the author of the new screenplay by the same name. [somewhat fiction, maybe]

Livinglies's Weblog

While the Big Banks continue to fabricate notes, robosign documents and create fake assignments in order to illegally foreclose, the Federal government continues to focus on the small fish.

A Georgia real estate investor pleaded guilty today for his role in a bid-rigging conspiracy and fraud scheme related to public real estate foreclosure auctions in Gwinnett County, Georgia, the Department of Justice announced today.

Clifford Wayne Hill pleaded guilty to bid rigging and fraud in the U.S. District Court for the Northern District of Georgia.  On Feb. 3, 2016, a federal grand jury in the Northern District of Georgia returned an indictment against the defendant.

According to the indictment, from December 2007 to March 2012, Hill and his co-conspirators agreed not to compete for the purchase of selected foreclosed homes so that they could win the auctions for those homes with artificially low bids. Hill made and received payoffs for…

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 Trump’s SEC Nominee Has a Major Conflict-of-Interest Problem

I doubt there is a sufficient explanation – but it would still be interesting to hear the logic of this selection.

Justice League

Jay Clayton is tied to big banks and corporations—and that could hold up fraud enforcement.

The dominant theme of Thursday’s Senate Banking Committee hearing with Jay Clayton, nominee for chair of the Securities and Exchange Commission, was conflict of interest. Not the well-documented conflicts of some of the more notorious members of the Trump administration but the conflicts of Clayton himself.

A partner at the high-powered corporate law firm Sullivan & Cromwell, Clayton represented Wall Street banks throughout his career. He served as Goldman Sachs’s lawyer during the Wall Street bailout, allowing it to emerge from the financial crisis relatively unscathed. He helped deliver failed investment bank Bear Stearns to JPMorgan Chase and other failed investment bank Lehman Brothers to Barclays. Hedefended Ally Financial in its foreclosure fraud settlement with the government and represented Deutsche Bank in its “mirror trade” Russian oligarch money laundering scandal. He was the lawyer…

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MERS Ownership Intentionally Obfuscated

Oh boy! Here we go – thanks Neil!

Livinglies's Weblog

By The LendingLies Team

In an ongoing California Appeal (that will go unnamed at this time), a homeowner’s attorney obtained a routine MERS corporate disclosure statement in response to an opening appellate brief he had filed.  The attorney shared the disclosure statement with a colleague in Hawaii who noticed that MERS claimed it was owned by its holding company who was owned by Maroon Holding, an LLC.  Further research revealed that Maroon was more than 10% owned by “Intercontinental Exchange, Inc.” (“ICE”).  Additional digging revealed that ICE was listed as the parent corporation for the New York Stock Exchange.  At that point red flags were raised.

The attorney, flabbergasted, after years of trying to peel the layers off of the proverbial MERS onion, discovered that ICE purchased the New York Stock Exchange (“NYSE”) for around 8 billion dollars, and it is now worth over 11 billion dollars (huge profits fueled…

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9th Circuit Opens Door to Modification Fraud and RESCISSION

No doubt in my mind Fannie thought it could usurp HAMP rules just like it did Rule 17. Maybe Fannie & Freddie will also be bought by the NYSE owned by ICE.

Livinglies's Weblog

Modification Fraud or breach of Contract — even when the “offer” of modification is illusory. This is typical bait and switch practice in the industry. the homeowner thinks they are in a modification when Chase was merely dragging “trial payments” out of her.

Rescission counts, although the court states that the homeowner must raise it in her pleadings against Chase.

  • It boils down to this. With its March 1, 2010 letter, Chase deceptively enticed and invited Oskoui into a process with the demonstrably false promise that a loan modification was within her reach if she were to make three monthly payments of $2,988.49 each. The next day – and for the first time – Chase eliminated a HAMP modification from its menu, but neither advised Oskoui what the CHAMP Guidelines required nor suspended additional payments until it could determine her CHAMP eligibility. Chase now says in its brief that the…

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Hopefully Justice Gorsuch will be in place by the time this is reviewed and heard because he is a “Rule of Law” judge.

This is where the Does 1-100 come in…

Case: 16-16566, 02/16/2017, ID: 10322275, DktEntry: 24-1, Page 2 of 43
[Fed. R. App. 26.1]
Pursuant to Fed. R. App. P. 26.1, defendant and appellee states:
Mortgage Electronic Registration Systems, Inc. is a wholly-owned subsidiary of MERSCORP Holdings, Inc. MERSCORP Holdings, Inc. is owned by Maroon Holding, LLC. Intercontinental Exchange, Inc. is the only publicly-held corporation that individually owns 10% or more of Maroon Holding, LLC.

Intercontinental Exchange is parent company for NYSE

Same address as MERS:
RESTON, VA 20190
• Additional Entity Source(s):
o Corporate Filings – Secretary of State
• Location of Incorporation:
• Registered Agent:
• Filing Date:
• Filing Number:

CLICK HERE for copy of the Disclosure Statement.



St. Louis man, 97, accuses Bank of America of pilfering $77,000 of his retirement savings

Sometimes keeping money in a safe is safer. http://wp.me/p1H9BR-Xz

Justice League

ST. LOUIS • A 97-year-old St. Louis man who ran a jewelry repair shop downtown for decades after emigrating from Hungary believes Bank of America has cheated him out of more than $77,000 of his retirement money.

Karlo Tanko, a widower who lives in the city’s Boulevard Heights neighborhood, sued Bank of America on Friday in St. Louis Circuit Court, accusing his former branch at 6639 South Kingshighway of liquidating one of his savings accounts without his consent by forging his signature on a withdrawal slip.

Around the time his wife of 69 years died in June 2012, Tanko transferred five CD accounts from Bank of America to U.S. Bank, according to the lawsuit and his lawyer, Albert Watkins. Tanko soon realized he never received statements from one of accounts that held $77,477.51. He inquired with U.S. Bank and was told it was never transferred. At that point, he…

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‘The Spider Network’ book weaves compelling tale about the global financial crisis

Justice League

In “The Spider Network,” Wall Street Journal editor David Enrich spins a tale about a global conspiracy to manipulate the Libor interest rate benchmark.

To many readers, a non-fiction book about a complex conspiracy to manipulate the London interbank offered rate, or Libor, might sound like fodder for a good nap.

But in the hands of journalist David Enrich, the true tale of former UBS and Citigroup trader Tom Hayes becomes a page-turning crime drama that engages – and educates – readers from beginning to end.

In “The Spider Network,” the author weaves together the vast web of players who blatantly worked to skew the benchmark that is used to set interest rates for everything from home equity loans to complex derivatives. Their goal was to nudge rates in the direction that boosted their trading portfolios – and earn them fat bonuses.

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Why Do Lower Court Foreclosure Judges Appear to be So Dense?


The Rule Ritual: Revealing for the First Time the Centuries Long Hidden Linguistic Origin of Rule Enterprise Reasoning Misleading Today’s Foreclosure Courts

The Foreclosure Hour this Sunday turns attention away from individual cases to share with listeners some original basic research.

We will for the first time anywhere reveal new insight into the foreclosure crisis by challenging the basic philosophy behind the traditional legal reasoning of American Courts and hence of the entire legal profession.

On this Sunday’s live show we will explore the deep-seated, heretofore unseen semantic causes of the foreclosure crisis and the even Continue reading