On Thursday, the OCC banned former Wells Fargo CEO John Stumpf from the banking industry and fined him $17.5 million (13 million pounds) to settle charges he failed to put a stop to sales misconduct – the most it has ever secured from an individual. Among other former executives charged was retail banking head Carrie…
In 2010, Meg Rehrauer, a J.D. Candidate at Northeastern University School of Law, wrote a memorable paper:
It’s Christmas 2 years later and we’re still reeling in foreclosures and frauds committed by the banks because America is stuck in the portion of George Bailey’s dream as if he hadn’t been born.
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By Sydney Sullivan
For over a decade, American Homeowners have been fighting the corruption that stems from the banks to legislators and down through the judiciary… and all the way up to the top of the political chain. Mortgages and Notes were faux pieces of paper created after American Homeowners filled out Fannie Mae 1003 applications where their personal information and properties were sold into securitization/rehypothecation slavery before they signed the fake mortgage deals.
With this corruption grew tons of charlatans riding the gravy train at the expense of naive, sleepy homeowners and business owners who trusted their banks and Continue reading
LivingLies: “Everything that happens in correspondence, statements and enforcement actions is specifically designed to make lawyers, homeowners and judges think that is not the case. Everything is designed to create the false impression that the parties involved have every legal right to originate, process and enforce residential loans when in fact no such authority exists.
The foreclosure process is just one step in many that results in unconscionable profits, fees and commissions distributed to a multitude of players whose livelihood depends upon successfully duping the courts into allowing foreclosure despite the fact that the money from the forced sale will never be paid to the investors who paid for the debt.”
Source: Answering the Shell Game
LivingLies: “And of course the declaration of intent is contained in a “notice of default” that is a complete legal nullity, to wit: it is declared on behalf of U.S. Bank and a trust neither of which have any interest in the loan.
In short, the courts are willing to bend every rule, break any logical flow, and divert every rule in order to rule in favor of nonentities just like this case. U.S. Bank had no right, title or interest in the loan, debt, note or mortgage and neither suffered any financial loss for nor was it exposed to any default declared or otherwise. And neither did any entity supposedly or presumably represented by U.S. Bank.”
LivingLies: While Judges recognize irregularities in the documents and procedures invoked in foreclosures, they are proceeding under the doctrine of “damnum absque injuria.” The judges are saying that there might be a violation but there is no injury because you owe the money and didn’t pay it therefore you should lose your home and the interests of justice are thereby served.
DC: Did you know you were gambling your property and personal data on Wall Street? Did anyone disclose to you, at any time, that this was not a traditional mortgage – but rather a securities transaction?
Source: Capitalism is Not Failing
LivingLies: “The court disagreed with the bank, determining that while the mortgage modification application was filed pursuant to HAMP, the plaintiffs “do not seek to enforce HAMP.” Instead, the plaintiffs argue that the wrongful denial of their application and failure to disclose the calculation error for three years “constitutes unfair or deceptive conduct in violation of the [WCPA].””
LivingLies: “Since 2000, more than 20 million people have been wrongfully displaced from their homes by parties invoking foreclosure laws, millions more lost jobs, and millions more suffered loss of economic opportunity, status and income as investment banks now masquerading as commercial banks continue to rake in huge amounts of revenue — sharing none of it with the investors who put up all the money or the borrowers who put up then lives, their signature, their credit reputation and their homes.”
DC Editor: 20 million is a very low figure considering over 100 million homes (2.5 persons per HH) have clouded titles. Just because they don’t know it yet – it is still problematic
LivingLies: “While it is still a reasonable bet that the investment banks will continue to control the political and judicial narrative, there are many signs that “securitization fail” (see Adam Levitin) is being revealed in the courts. As the number of foreclosures decreases, the increased opportunity for judges to truly consider the scheme in front of them is leading to a rise in judgments for homeowners and a revelation that the “REMIC Trust” is a label without meaning or existence in the real world.”