Do Banks Lose Money or Make Money on Foreclosures?

Real Estate Justice For ALL!

Reality NOT on TV – Banks Make Money on Foreclosures

by Mario Kenny

DETROIT, MI – Wouldn’t it be fun to take the CEO’s of Chase, Bank
of America, Citibank and Wells Fargo, hold them somewhere with just the
bare living essentials and force them to negotiate loan modifications
and short sales with their own customer service departments to earn
their freedom? Imagine their frustration as they have to wait on hold forever,
speak with poorly trained, clueless staff who can’t find the documents
they’ve faxed or emailed for the umpteenth time and have to keep
starting over.

It’d make a great movie! We could call it, “Groundhog Accountability Day for Bank Executives”.

“Sigh”. Unfortunately, that’s a fantasy and reality is what we have to deal with. Why are the big banks so difficult to deal with? Why don’t they seem
to understand that they lose more money when they…

View original post 484 more words


Virginia drops JPMorgan from mortgage securities fraud lawsuit


, , , , , , , , , , , , , , , , , , , , , , ,

Sept. 22, 2014
Full link here

Virginia Attorney General Mark R. Herring (D) on Monday dropped JPMorgan Chase from a mortgage securities lawsuit against the country’s biggest banks, after learning that his predecessor Ken Cuccinelli (R) had already struck a “confidential” settlement with the bank.

JP Morgan

The decision comes a week after Herring announced a $1.15 billion lawsuit against 13 of the country’s biggest banks for misleading a state retirement fund about the quality of bonds made up of residential mortgages.

JPMorgan and its Washington Mutual subsidiary were named in the suit, along with Citigroup and Bank of America, for packaging faulty home loans into securities sold to the Virginia Retirement System (VRS).



*What the story does not tell you is that in order to obtain 90 x 1 leverage the same securities were sold many Many times over to retirement funds, pensions AND securities investors. See here for more info: for more info.

*A better explanation of the reason for the lawsuit.

*Why it is important to understand documentation and possible deficiencies.

Bank Of America Settlement Looks Impressive But Maybe Its Time To Take One Of These Cases To Trial


, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

August 21, 2014dannlaw

I should be excited about the nearly $17 Billion Settlement agreement between Bank of America and the U.S. Department of Justice announced yesterday. I am happy for our clients here in Ohio facing foreclosure because according to initial press reports, the agreement, like previous agreements with Citibank ($7 Billion) and Chase ($13 Billion)


 Anyone facing difficulty paying their Bank of America, Countrywide or America’s Wholesale Lender originated mortgage or who is in foreclosure currently, even though those companies are no longer involved as an investor or servicer of their loan should wait if possible until this new settlement agreement takes hold to see if there is an opportunity to negotiate a better outcome. If this agreement is anything like the National Mortgage Settlement it may require persistence and the assistance of a lawyer to access the benefits that the government has negotiated for you in this settlement.


My guess is that as in prior settlements DOJ left too much discretion in the hands of the Defendant in the case Bank of America to pick and choose who they will help.


But despite the good news, I have some serious concerns about these settlements. These pacts are about the origination and securitization of hundreds of thousand of fraudulent and unsuitable mortgages to American Consumers and their sale to unsuspecting investors throughout the world that nearly caused the collapse of the US economy in 2008. The illegal and possibly criminal conduct of these bad actors left millions of Americans financially insecure, caused a depression of the housing market that continues to this day and have cost investors and homeowners billions of their hard earned dollars.


What disturbs me the most is that theses settlements have been reached before a lawsuit was filed against the banks. If a complaint laying out the government’s case against Chase, and Citi and BOA had been filed before settlement, the public and future generations would have had a chance to see the unfiltered findings about the conduct of these bad actors by the Department of Justice and 50 State Attorneys General who participated in the settlement. If any of these cases had actually gone to trial, whether the government had won or lost, the adversary process would have revealed a much more realistic picture of what actually happened between 2001 and 2008 that caused the apocalyptic collapse in 2008.


For the agreements to come to fruition, a formal complaint and consent judgment entry will have to be filed but that complaint will be carefully drafted with the consent of Bank of America. Just as the complaints and agreements in the Chase and Citi cases were drafted jointly by lawyers for the DOJ and those banks. Historians, legal scholars and future market participants trying to determine the parameters of proper conduct will be left without the guidance that a contested trial, judgment and decision of a court of appeals could provide to how such market participants acted to incur such massive liability and how they should act in the future to avoid causing such pain and hardship to future consumers and investors. The New York Times addressed this risk of the Bank of America Settlement and other settlement on the eve of yesterday’s announcements.


In defending individual homeowners in foreclosure, bringing claims under state and federal consumer protection laws and civil tort claims we are taking cases to trial in Ohio every day setting standards for everything for who has standing to enforce a note and mortgage to what kind evidence a lender is required to proffer to establish a default on a mortgage or compliance with federal regulations that govern the enforcement of FHA or VA loans. These trials, decisions and appeals will provide a chronicle of the abuses of the past and a roadmap for proper conduct for mortgage lenders for the future.


We should expect no less from the United States Department of Justice and the State Attorney General Partners.


Marc Dann




No Dirty Deeds; why is George Mantor running for San Diego Co. Assessor-Recorder-County Clerk?


, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,



I am running to restore the transparency and reliability of our centuries old and highly precious land title records which have become infected and thus clouded by an unauthorized, bank-owned, alternative title registry, MERS.

Every time a mortgage assignment is entered into the MERS system without payment to the local county recorder for the recordation of same, the county loses revenue and the ability to accurately track the information. To land title records, the impact is definite and negative. Faulty information, fraud and gaps in the records have occurred as a direct result.

Even worse, it puts every property owner in the position of having their property seized without any due process whatsoever.

The incumbent has allowed for fraudulent actors, and their supporters, to access the land recording system by permitting robo-signed mortgage assignments to permeate land title records, jeopardized the sanctity of the mortgage foreclosure process and inserted uncertainty into the mortgage finance process.

The integrity of land title records and the consuming public now hang in the balance and nothing is being done.



A few weeks ago, I published a lengthy piece on the recent court case giving California homeowners some hope.

My phone has not stopped ringing, and the documents that I have reviewed so far reveal that the same old fraudclosures are continuing to be perpetrated by Bank of America, Chase, Wells Fargo, and the rest of the gang.

They are still relying on void assignments to do it. The majority of people who contacted me so far were in some version of the mod runaround.


Most of these victims have sent letters and documents to all of the agencies who should be pursuing the fraud and they never hear anything back.
Where is our monitor, Katherine Porter? Where is our attorney general, Kamala Harris? Where is Eric Holder? Despite the fact that everyone knows, despite the fact that they signed consent decrees promising not to steal homes, they go right on doing it.

I’m sick of writing about it. No more polite talking with judges. I want to up my game and put more heat on the bankstas. If they cannot record obviously void documents, they cannot foreclose. So, I’ve decided that I am going to run for the office of the Assessor/Recorder/County Clerk, and put an end to this.

The incumbent offers this standard response to any suggestion that he should stop recording forged documents:

“The County Recorder does not make a determination as to the legal sufficiency of recorded documents. Recording is a process for providing constructive notice. The duty of this office is to create and maintain records of documents that are required or permitted by law to be recorded in accordance with California Government Code Section 27201 et seq.

My response is that the County Recorder has a duty to uphold the validity and the reliability of our land records and it is not permissible to file forged and fabricated documents.
470. (a) Every person who, with the intent to defraud, knowing that he or she has no authority to do so, signs the name of another person or of a fictitious person to any of the items listed in subdivision (d) is guilty of forgery.

In San Francisco, the County Recorder, Phil Ting, did an audit on foreclosure recordings and found that 85% contained fraudulent documents. Why would San Diego be any different? Given that finding, I believe he is derelict in his duties not to conduct the audit.

Fortune examined the foreclosures filed in two New York counties (Westchester and the Bronx) between 2006 and 2010. There were 130 cases where the Bank of New York was foreclosing on behalf of a Countrywide mortgage-backed security. In 104 of those cases, the loan was originally made by Countrywide; the other 26 were made by other banks and sold to Countrywide for securitization.

None of the 104 Countrywide loans were endorsed by Countrywide – they included only the original borrower’s signature. Two-thirds of the loans made by other banks also lacked bank endorsements. The other third were endorsed either directly on the note or on an allonge, or a rider, accompanying the note.

The lack of Countrywide endorsements, combined with the bank’s representation to the court that these documents are accurate copies of the original notes, calls into question the securitization of these loans, as well as Bank of New York’s right, as trustee, to foreclose on them.

These are not paperwork errors; they are evidence of a crime in progress and they are themselves criminal acts prohibited by law.

Across the country, other County Recorders have stood up to the bankstas and put a stop to filing forgeries. John O’Brien, Jeff Thigpen, and Curtis Hertel stopped accepting forged documents on behalf of the residents of their respective counties. It can be done.

San Diego County is no different. The same banks, mortgage servicers, and foreclosure mills operate here and are doing the exact same things even to this day despite numerous settlements and consent decrees. The County Recorder’s office is a crime scene, and it is a crime in progress that must be stopped.

If you are sick of politicos and bureaucrats who won’t do their jobs for the people they serve than I offer a rare alternative.

-George W. Mantor

Candidate for San Diego Co. Assessor-Recorder-Co. Clerk



Assuming you were a dishonest man… you could make more with a flop than you could with a hit

TBTF Derivatives Exposure – Cashing in at Taxpayers Expense

Massive new fraud coverup: How banks are pillaging homes — while the government watches


, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

When financial crimes go unpunished, the root problem of fraud never gets fixed — and these are the consequences

                                                      Eric Holder (Credit: AP/J. Scott Applewhite)


Joseph and Mary Romero of Chimayo, N.M., found that their mortgage note was assigned to the Bank of New York three months after the same bank filed a foreclosure complaint against them; in other words, Bank of New York didn’t own the loan when they tried to foreclose on it.

Glenn and Ann Holden of Akron, Ohio, faced foreclosure from Deutsche Bank, but the company filed two different versions of the note at court, each bearing a stamp affirming it as the “true and accurate copy.”

Mary McCulley of Bozeman, Mont., had her loan changed by U.S. Bank without her knowledge, from a $300,000 30-year loan to a $200,000 loan due in 18 months, and in documents submitted to the court, U.S. Bank included four separate loan applications with different terms.

All of these examples, from actual court cases resolved over the last two months, rendered rare judgments in favor of homeowners over banks and mortgage lenders. But despite the fact that the nation’s courtrooms remain active crime scenes, with backdated, forged and fabricated documents still sloshing around them, state and federal regulators have not filed new charges of misconduct against Bank of New York, Deutsche Bank, U.S. Bank or any other mortgage industry participant, since the round of national settlements over foreclosure fraud effectively closed the issue.

Many focus on how the failure to prosecute financial crimes, by Attorney General Eric Holder and colleagues, create a lack of deterrent for the perpetrators, who will surely sin again. But there’s something else that happens when these crimes go unpunished; the root problem, the legacy of fraud, never gets fixed. In this instance, the underlying ownership on potentially millions of loans has been permanently confused, and the resulting disarray will cause chaos for decades into the future, harming homeowners, investors and the broader economy. Holder’s corrupt bargain, to let Wall Street walk, comes at the cost of permanent damage to the largest market in the world, the U.S. residential housing market.

By now we know the details: During the run-up to the housing bubble, banks bought up millions of mortgages, packaged them into securities and sold them around the world. Amid the frenzy, lenders failed to follow basic property laws, which ensure legitimate transfers of mortgages from one legal owner to another. When mass foreclosures resulted from the bubble’s collapse, banks who could not demonstrate they owned the loans got caught trying to cover up the irregularities with false documents. Federal authorities made the offenders pay fines, much of which banks paid with other people’s money. But the settlements put a Band-Aid over the misconduct. Nobody went in, loan by loan, to try to equitably confirm who owns what.

Now, the lid banks and the government tried to place on the situation has begun to boil over. For example, Bank of America really wants to exit the mortgage servicing business, because it now finds it unprofitable. The bank entered into a deal to sell off all the servicing for loans backed by the Government National Mortgage Association (often known as Ginnie Mae). But Ginnie Mae refused the sale, because the loans Bank of America serviced are missing critical documents, including the recorded mortgages themselves.

If you’re a mortgage servicer, and you don’t possess the recorded mortgage, you probably aren’t able to foreclose on that loan without fabricating the document. And Ginnie Mae made it clear that the problem could go beyond Bank of America. “I don’t mean to sound like we’re picking on BofA,” Ginnie Mae president Ted Tozer told trade publication National Mortgage News. “I can’t say if it’s just BofA or not.” Incredibly, this would represent the first time a government agency has actually examined loan files under its control to search for missing documents, seven years after the collapse of the housing bubble and four years after the recognition of mass document fabrication.

Any effort to fix the system would start by reforming MERS, the electronic database banks use to track mortgage trades (and avoid fees they would incur from county clerks with every transfer). MERS was part of a broad settlement in 2011 with federal regulators, and they promised to improve the quality control over their database to avoid errors and fraudulent assignments. Three years later, the fixes haven’t happened, and four senior officers brought in to comply with the settlement have left. MERS then tried to hire a consultant to manage the settlement terms whom U.S. regulators found unqualified for the job.

The database still tracks roughly half of all U.S. home loans, and banks fear that without changes, they might have to – horrors – actually go back to recording mortgages individually with the county clerks! You know, the property law system that the nation somehow survived under for more than 200 years.

Click HERE for link to the full article