Forget Mass Joinder just use Consumer Legal Remedies Act Civil Code 1750

CALIFORNIA CIVIL CODE
SECTION 1750 et seq
Consumers Legal Remedies Act

1750. This title may be cited as the Consumers Legal Remedies Act.

1751. Any waiver by a consumer of the provisions of this title is contrary to public policy and shall be unenforceable and void.

1752. The provisions of this title are not exclusive. The remedies provided herein for violation of any section of this title or for conduct proscribed by any section of this title shall be in addition to any other procedures or remedies for any violation or conduct provided for in any other law.
Nothing in this title shall limit any other statutory or any common law rights of the Attorney General or any other person to bring class actions. Class actions by consumers brought under the specific provisions of Chapter 3 (commencing with Section 1770) of this title shall be governed exclusively by the provisions of Chapter 4 (commencing with Section 1780); however, this shall not be construed so as to deprive a consumer of any statutory or common law right to bring a class action without resort to this title. If any act or practice proscribed under this title also constitutes a cause of action in common law or a violation of another statute, the consumer may assert such common law or statutory cause of action under the procedures and with the remedies provided for in such law.

1753. If any provision of this title or the application thereof to any person or circumstance is held to be unconstitutional, the remainder of the title and the application of such provision to other persons or circumstances shall not be affected thereby.

1754. The provisions of this title shall not apply to any transaction which provides for the construction, sale, or construction and sale of an entire residence or all or part of a structure designed for commercial or industrial occupancy, with or without a parcel of real property or an interest therein, or for the sale of a lot or parcel of real property, including any site preparation incidental to such sale.

1755. Nothing in this title shall apply to the owners or employees of any advertising medium, including, but not limited to, newspapers, magazines, broadcast stations, billboards and transit ads, by whom any advertisement in violation of this title is published or disseminated, unless it is established that such owners or employees had knowledge of the deceptive methods, acts or practices declared to be unlawful by Section 1770.

1756. The substantive and procedural provisions of this title shall only apply to actions filed on or after January 1, 1971.

1760. This title shall be liberally construed and applied to promote its underlying purposes, which are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection.

1761. As used in this title:

  • (a) “Goods” means tangible chattels bought or leased for use primarily for personal, family, or household purposes, including certificates or coupons exchangeable for these goods, and including goods which, at the time of the sale or subsequently, are to be so affixed to real property as to become a part of real property, whether or not severable therefrom.
  • (b) “Services” means work, labor, and services for other than a commercial or business use, including services furnished in connection with the sale or repair of goods.
  • (c) “Person” means an individual, partnership, corporation, limited liability company, association, or other group, however organized.
  • (d) “Consumer” means an individual who seeks or acquires, by purchase or lease, any goods or services for personal, family, or household purposes.
  • (e) “Transaction” means an agreement between a consumer and any other person, whether or not the agreement is a contract enforceable by action, and includes the making of, and the performance pursuant to, that agreement.
  • (f) “Senior citizen” means a person who is 65 years of age or older.
  • (g) “Disabled person” means any person who has a physical or mental impairment which substantially limits one or more major life activities.
    • (1) As used in this subdivision, “physical or mental impairment” means any of the following:
      • A. Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss substantially affecting one or more of the following body systems: neurological; muscoloskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genitourinary; hemic and lymphatic; skin; or endocrine.
      • B. Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term “physical or mental impairment” includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairment, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, and emotional illness.
    • (2) “Major life activities” means functions such as caring for one’ s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working.
  • (h) “Home solicitation” means any transaction made at the consumer’ s primary residence, except those transactions initiated by the consumer. A consumer response to an advertisement is not a home solicitation.

1770.

  • (a) The following unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer are unlawful:
    • (1) Passing off goods or services as those of another.
    • (2) Misrepresenting the source, sponsorship, approval, or certification of goods or services.
    • (3) Misrepresenting the affiliation, connection, or association with, or certification by, another. (MERS)and Securitization
    • (4) Using deceptive representations or designations of geographic origin in connection with goods or services.
    • (5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he or she does not have.
    • (6) Representing that goods are original or new if they have deteriorated unreasonably or are altered, reconditioned, reclaimed, used, or secondhand.
    • (7) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.
    • (8) Disparaging the goods, services, or business of another by false or misleading representation of fact.
    • (9) Advertising goods or services with intent not to sell them as advertised.
    • (10) Advertising goods or services with intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
    • (11) Advertising furniture without clearly indicating that it is unassembled if that is the case.
    • (12) Advertising the price of unassembled furniture without clearly indicating the assembled price of that furniture if the same furniture is available assembled from the seller.
    • (13) Making false or misleading statements of fact concerning reasons for, existence of, or amounts of price reductions.
    • (14) Representing that a transaction confers or involves rights, remedies, or obligations which it does not have or involve, or which are prohibited by law.
    • (15) Representing that a part, replacement, or repair service is needed when it is not.
    • (16) Representing that the subject of a transaction has been supplied in accordance with a previous representation when it has not. Sign this transaction now and when the option ARM adjusts we will refinance at no cost to you
    • (17) Representing that the consumer will receive a rebate, discount, or other economic benefit, if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.
    • (18) Misrepresenting the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction with a consumer.
    • (19) Inserting an unconscionable provision in the contract.
    • (20) Advertising that a product is being offered at a specific price plus a specific percentage of that price unless (1) the total price is set forth in the advertisement, which may include, but is not limited to, shelf tags, displays, and media advertising, in a size larger than any other price in that advertisement, and (2) the specific price plus a specific percentage of that price represents a markup from the seller’s costs or from the wholesale price of the product. This subdivision shall not apply to in-store advertising by businesses which are open only to members or cooperative organizations organized pursuant to Division 3 (commencing with Section 12000) of Title 1 of the Corporations Code where more than 50 percent of purchases are made at the specific price set forth in the advertisement.
    • (21) Selling or leasing goods in violation of Chapter 4 (commencing with Section 1797.8) of Title 1.7.
    • (22)
      • (A) Disseminating an unsolicited prerecorded message by telephone without an unrecorded, natural voice first informing the person answering the telephone of the name of the caller or the organization being represented, and either the address or the telephone number of the caller, and without obtaining the consent of that person to listen to the prerecorded message.
      • (B) This subdivision does not apply to a message disseminated to a business associate, customer, or other person having an established relationship with the person or organization making the call, to a call for the purpose of collecting an existing obligation, or to any call generated at the request of the recipient.
    • (23) The home solicitation, as defined in subdivision (h) of Section 1761, of a consumer who is a senior citizen where a loan is made encumbering the primary residence of that consumer for the purposes of paying for home improvements and where the transaction is part of a pattern or practice in violation of either subsection (h) or (i) of Section 1639 of Title 15 of the United States Code or subsection (e) of Section 226.32 of Title 12 of the Code of Federal Regulations.
      A third party shall not be liable under this subdivision unless (1) there was an agency relationship between the party who engaged in home solicitation and the third party or (2) the third party had actual knowledge of, or participated in, the unfair or deceptive transaction. A third party who is a holder in due course under a home solicitation transaction shall not be liable under this subdivision.

(b)

    • (1) It is an unfair or deceptive act or practice for a mortgage broker or lender, directly or indirectly, to use a home improvement contractor to negotiate the terms of any loan that is secured, whether in whole or in part, by the residence of the borrower and which is used to finance a home improvement contract or any portion thereof. For purposes of this subdivision, “mortgage broker or lender” includes a finance lender licensed pursuant to the California Finance Lenders Law (Division 9 (commencing with Section 22000) of the Financial Code), a residential mortgage lender licensed pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code), or a real estate broker licensed under the Real Estate Law (Division 4 (commencing with Section 10000) of the Business and Professions Code).
    • (2) This section shall not be construed to either authorize or prohibit a home improvement contractor from referring a consumer to a mortgage broker or lender by this subdivision. However, a home improvement contractor may refer a consumer to a mortgage lender or broker if that referral does not violate Section 7157 of the Business and Professions Code or any other provision of law. A mortgage lender or broker may purchase an executed home improvement contract if that purchase does not violate Section 7157 of the Business and Professions Code or any other provision of law. Nothing in this paragraph shall have any effect on the application of Chapter 1 (commencing with Section 1801) of Title 2 to a home improvement transaction or the financing thereof.

1780.

  • (a) Any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared to be unlawful by Section 1770 may bring an action against such person to recover or obtain any of the following:
    • (1) Actual damages, but in no case shall the total award of damages in a class action be less than one thousand dollars ($1,000).
    • (2) An order enjoining such methods, acts, or practices.
    • (3) Restitution of property.
    • (4) Punitive damages.
    • (5) Any other relief which the court deems proper.
  • (b) Any consumer who is a senior citizen or a disabled person, as defined in subdivisions (f) and (g) of Section 1761, as part of an action under subdivision (a), may seek and be awarded, in addition to the remedies specified therein, up to five thousand dollars ($5,000) where the trier of fact (1) finds that the consumer has suffered substantial physical, emotional, or economic damage resulting from the defendant’s conduct, (2) makes an affirmative finding in regard to one or more of the factors set forth in subdivision (b) of Section 3345, and (3) finds that an additional award is appropriate. Judgment in a class action by senior citizens or disabled persons under Section 1781 may award each class member such an additional award where the trier of fact has made the foregoing findings.
  • (c) An action under subdivision (a) or (b) may be commenced in the county in which the person against whom it is brought resides, has his or her principal place of business, or is doing business, or in the county where the transaction or any substantial portion thereof occurred.
    If within any such county there is a municipal or justice court, having jurisdiction of the subject matter, established in the city and county or judicial district in which the person against whom the action is brought resides, has his or her principal place of business, or is doing business, or in which the transaction or any substantial portion thereof occurred, then such court is the proper court for the trial of such action. Otherwise, any municipal or justice court in such county having jurisdiction of the subject matter is the proper court for the trial thereof.
    In any action subject to the provisions of this section, concurrently with the filing of the complaint, the plaintiff shall file an affidavit stating facts showing that the action has been commenced in a county or judicial district described in this section as a proper place for the trial of the action. If a plaintiff fails to file the affidavit required by this section, the court shall, upon its own motion or upon motion of any party, dismiss any such action without prejudice.
  • (d) The court shall award court costs and attorney’s fees to a prevailing plaintiff in litigation filed pursuant to this section. Reasonable attorney’s fees may be awarded to a prevailing defendant upon a finding by the court that the plaintiff’s prosecution of the action was not in good faith.

1781.

  • (a) Any consumer entitled to bring an action under Section 1780 may, if the unlawful method, act, or practice has caused damage to other consumers similarly situated, bring an action on behalf of himself and such other consumers to recover damages or obtain other relief as provided for in Section 1780.
  • (b) The court shall permit the suit to be maintained on behalf of all members of the represented class if all of the following conditions exist:
    • (1) It is impracticable to bring all members of the class before the court.
    • (2) The questions of law or fact common to the class are substantially similar and predominate over the questions affecting the individual members.
    • (3) The claims or defenses of the representative plaintiffs are typical of the claims or defenses of the class.
    • (4) The representative plaintiffs will fairly and adequately protect the interests of the class.
  • (c) If notice of the time and place of the hearing is served upon the other parties at least 10 days prior thereto, the court shall hold a hearing, upon motion of any party to the action which is supported by affidavit of any person or persons having knowledge of the facts, to determine if any of the following apply to the action:
    • (1) A class action pursuant to subdivision (b) is proper.
    • (2) Published notice pursuant to subdivision (d) is necessary to adjudicate the claims of the class.
    • (3) The action is without merit or there is no defense to the action.
      A motion based upon Section 437c of the Code of Civil Procedure shall not be granted in any action commenced as a class action pursuant to subdivision (a).
    • (d) If the action is permitted as a class action, the court may direct either party to notify each member of the class of the action.
      The party required to serve notice may, with the consent of the court, if personal notification is unreasonably expensive or it appears that all members of the class cannot be notified personally, give notice as prescribed herein by publication in accordance with Section 6064 of the Government Code in a newspaper of general circulation in the county in which the transaction occurred.
    • (e) The notice required by subdivision (d) shall include the following:
      • (1) The court will exclude the member notified from the class if he so requests by a specified date.
      • (2) The judgment, whether favorable or not, will include all members who do not request exclusion.
      • (3) Any member who does not request exclusion, may, if he desires, enter an appearance through counsel.
    • (f) A class action shall not be dismissed, settled, or compromised without the approval of the court, and notice of the proposed dismissal, settlement, or compromise shall be given in such manner as the court directs to each member who was given notice pursuant to subdivision (d) and did not request exclusion.
    • (g) The judgment in a class action shall describe those to whom the notice was directed and who have not requested exclusion and those the court finds to be members of the class. The best possible notice of the judgment shall be given in such manner as the court directs to each member who was personally served with notice pursuant to subdivision (d) and did not request exclusion.

1782.

  • (a) Thirty days or more prior to the commencement of an action for damages pursuant to the provisions of this title, the consumer shall do the following:
    • (1) Notify the person alleged to have employed or committed methods, acts or practices declared unlawful by Section 1770 of the particular alleged violations of Section 1770.
    • (2) Demand that such person correct, repair, replace or otherwise rectify the goods or services alleged to be in violation of Section 1770.
      Such notice shall be in writing and shall be sent by certified or registered mail, return receipt requested, to the place where the transaction occurred, such person’s principal place of business within California, or, if neither will effect actual notice, the office of the Secretary of State of California.
  • (b) Except as provided in subdivision (c), no action for damages may be maintained under the provisions of Section 1780 if an appropriate correction, repair, replacement or other remedy is given, or agreed to be given within a reasonable time, to the consumer within 30 days after receipt of such notice.
  • (c) No action for damages may be maintained under the provisions of Section 1781 upon a showing by a person alleged to have employed or committed methods, acts or practices declared unlawful by Section 1770 that all of the following exist:
    • (1) All consumers similarly situated have been identified, or a reasonable effort to identify such other consumers has been made.
    • (2) All consumers so identified have been notified that upon their request such person shall make the appropriate correction, repair, replacement or other remedy of the goods and services.
    • (3) The correction, repair, replacement or other remedy requested by such consumers has been, or, in a reasonable time, shall be, given.
    • (4) Such person has ceased from engaging, or if immediate cessation is impossible or unreasonably expensive under the circumstances, such person will, within a reasonable time, cease to engage, in such methods, act, or practices.
  • (d) An action for injunctive relief brought under the specific provisions of Section 1770 may be commenced without compliance with the provisions of subdivision (a). Not less than 30 days after the commencement of an action for injunctive relief, and after compliance with the provisions of subdivision (a), the consumer may amend his complaint without leave of court to include a request for damages. The appropriate provisions of subdivision (b) or (c) shall be applicable if the complaint for injunctive relief is amended to request damages.
  • (e) Attempts to comply with the provisions of this section by a person receiving a demand shall be construed to be an offer to compromise and shall be inadmissible as evidence pursuant to Section 1152 of the Evidence Code; furthermore, such attempts to comply with a demand shall not be considered an admission of engaging in an act or practice declared unlawful by Section 1770. Evidence of compliance or attempts to comply with the provisions of this section may be introduced by a defendant for the purpose of establishing good faith or to show compliance with the provisions of this section.

1783. Any action brought under the specific provisions of Section 1770 shall be commenced not more than three years from the date of the commission of such method, act, or practice.

1784. No award of damages may be given in any action based on a method, act, or practice declared to be unlawful by Section 1770 if the person alleged to have employed or committed such method, act, or practice

  • (a) proves that such violation was not intentional and resulted from a bona fide error notwithstanding the use of reasonable procedures adopted to avoid any such error and
  • (b) makes an appropriate correction, repair or replacement or other remedy of the goods and services according to the provisions of subdivisions (b) and (c) of Section 1782.

 


Civil War Erupts On Wall Street: As Reality Finally Hits The Financial Elite, They Start Turning On Each Other

Full-Blown

September 3rd, 2011 | Filed under Economy, Feature, Hot List, News . Follow comments through RSS 2.0 feed. Click here to comment, or trackback.
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By David DeGraw

Full-Blown Civil War Erupts On Wall Street: As Reality Finally Hits The Financial Elite, They Turn On Each OtherFinally, after trillions in fraudulent activity, trillions in bailouts, trillions in printed money, billions in political bribing and billions in bonuses, the criminal cartel members on Wall Street are beginning to get what they deserve. As the Eurozone is coming apart at the seams and as the US economy grinds to a halt, the financial elite are starting to turn on each other. The lawsuits are piling up fast. Here’s an extensive roundup:

As I reported last week:

Collapse Roundup #5: Goliath On The Ropes, Big Banks Getting Hit Hard, It’s A “Bloodbath” As Wall Street’s Crimes Blow Up In Their Face

Time to put your Big Bank shorts on! Get ready for a run… The chickens are coming home to roost… The Global Banking Cartel’s crimes are being exposed left & right… Prepare for Shock & Awe…

Well, well… here’s your Shock & Awe:

First up, this shockingly huge $196 billion lawsuit just filed against 17 major banks on behalf of Fannie Mae and Freddie Mac. Bank of America is severely exposed in this lawsuit. As the parent company of Countrywide and Merrill Lynch they are on the hook for $57.4 billion. JP Morgan is next in the line of fire with $33 billion. And many death spiraling European banks are facing billions in losses as well.

FHA Files a $196 Billion Lawsuit Against 17 Banks

The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the Enterprises), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.

Complaints have been filed against the following lead defendants, in alphabetical order:

1. Ally Financial Inc. f/k/a GMAC, LLC – $6 billion
2. Bank of America Corporation – $6 billion
3. Barclays Bank PLC – $4.9 billion
4. Citigroup, Inc. – $3.5 billion
5. Countrywide Financial Corporation -$26.6 billion
6. Credit Suisse Holdings (USA), Inc. – $14.1 billion
7. Deutsche Bank AG – $14.2 billion
8. First Horizon National Corporation – $883 million
9. General Electric Company – $549 million
10. Goldman Sachs & Co. – $11.1 billion
11. HSBC North America Holdings, Inc. – $6.2 billion
12. JPMorgan Chase & Co. – $33 billion
13. Merrill Lynch & Co. / First Franklin Financial Corp. – $24.8 billion
14. Morgan Stanley – $10.6 billion
15. Nomura Holding America Inc. – $2 billion
16. The Royal Bank of Scotland Group PLC – $30.4 billion
17. Société Générale – $1.3 billion

These complaints were filed in federal or state court in New York or the federal court in Connecticut. The complaints seek damages and civil penalties under the Securities Act of 1933, similar in content to the complaint FHFA filed against UBS Americas, Inc. on July 27, 2011. In addition, each complaint seeks compensatory damages for negligent misrepresentation. Certain complaints also allege state securities law violations or common law fraud. [read full FHFA release]

You can read the suits filed against each individual bank here. For some more information read Bloomberg: BofA, JPMorgan Among 17 Banks Sued by U.S. for $196 Billion. Noticeably absent from the list of companies being sued is Wells Fargo.

And the suits just keep coming…

BofA sued over $1.75 billion Countrywide mortgage pool

Bank of America Corp (BAC.N) was sued by the trustee of a $1.75 billion mortgage pool, which seeks to force the bank to buy back the underlying loans because of alleged misrepresentations in how they were made. The lawsuit by the banking unit of US Bancorp (USB.N) is the latest of a number of suits seeking to recover investor losses tied to risky mortgage loans issued by Countrywide Financial Corp, which Bank of America bought in 2008. In a complaint filed in a New York state court in Manhattan, U.S. Bank said Countrywide, which issued the 4,484 loans in the HarborView Mortgage Loan Trust 2005-10, materially breached its obligations by systemically misrepresenting the quality of its underwriting and loan documentation. [read more]

Bank of America kept AIG legal threat under wraps

Top Bank of America Corp lawyers knew as early as January that American International Group Inc was prepared to sue the bank for more than $10 billion, seven months before the lawsuit was filed, according to sources familiar with the matter. Bank of America shares fell more than 20 percent on August 8, the day the lawsuit was filed, adding to worries about the stability of the largest U.S. bank…. The bank made no mention of the lawsuit threat in a quarterly regulatory filing with the U.S. Securities and Exchange Commission just four days earlier. Nor did management discuss it on conference calls about quarterly results and other pending legal claims. [read more]

Nevada Lawsuit Shows Bank of America’s Criminal Incompetence

As we’ve stated before, litigation by attorney general is significant not merely due to the damages and remedies sought, but because it paves the way for private lawsuits. And make no mistake about it, this filing is a doozy. It shows the Federal/state attorney general mortgage settlement effort to be a complete travesty. The claim describes, in considerable detail, how various Bank of America units engaged in misconduct in virtually every aspect of its residential mortgage business. [read more]

Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril

The sweeping new suit could have repercussions far beyond Nevada’s borders. It further jeopardizes a possible nationwide settlement with the five largest U.S. banks over their foreclosure practices, especially given concerns voiced by other attorneys general, New York’s foremost among them…. In a statement, Bank of America spokeswoman Jumana Bauwens said reaching a settlement would bring a better outcome for homeowners than litigation. “We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality. [read more]

FDIC Objects to Bank of America’s $8.5 Billion Mortgage-Bond Accord

The Federal Deposit Insurance Corp. is objecting to Bank of America Corp. (BAC)’s proposed $8.5 billion mortgage-bond settlement with investors, joining investors and states that are challenging the agreement. The FDIC owns securities covered by the settlement and said it doesn’t have enough information to evaluate the accord, according to a filing today in federal court in Manhattan. Bank of America has agreed to pay $8.5 billion to resolve claims from investors in Countrywide Financial mortgage bonds. The settlement was negotiated with a group of institutional investors and would apply to investors outside that group. [read more]

Fed asks Bank of America to list contingency plan: report

The Federal Reserve has asked Bank of America Corp to show what measures it could take if business conditions worsen, the Wall Street Journal said, citing people familiar with the situation. BofA executives recently responded to the unusual request from the Federal Reserve with a list of options that includes the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, the people told the paper. Bank of America and the Fed declined to comment to the Journal. Both could not immediately be reached for comment by Reuters outside regular U.S. business hours. [
read more]

Bombshell Admission of Failed Securitization Process in American Home Mortgage Servicing/LPS Lawsuit

Wow, Jones Day just created a huge mess for its client and banks generally if anyone is alert enough to act on it. The lawsuit in question is American Home Mortgage Servicing Inc. v Lender Processing Services. It hasn’t gotten all that much attention (unless you are on the LPS deathwatch beat) because to most, it looks like yet another beauty contest between Cinderella’s two ugly sisters. AHMSI is a servicer (the successor to Option One, and it may also still have some Ameriquest servicing).

AHMSI is mad at LPS because LPS was supposed to prepare certain types of documentation AHMSI used in foreclosures. AHMSI authorized the use of certain designated staffers signing with the authority of AHSI (what we call robosinging, since the people signing these documents didn’t have personal knowledge, which is required if any of the documents were affidavits). But it did not authorize the use of surrogate signers, which were (I kid you not) people hired to forge the signatures of robosigners. The lawsuit rather matter of factly makes a stunning admission… [read more]

Fraudclosure: MERS Case Filed With Supreme Court

Before readers get worried by virtue of the headline that the Supreme Court will use its magic legal wand to make the dubious MERS mortgage registry system viable, consider the following:

1. The Supreme Court hears only a very small portion of the cases filed with it, and is less likely to take one with these demographics (filed by a private party, and an appeal out of a state court system, as opposed to Federal court). This case, Gomes v. Countywide, was decided against the plaintiff in lower and appellate court and the California state supreme court declined to hear it

2. If MERS or the various servicers who have had foreclosures overturned based on challenges to MERS thought they’d get a sympathetic hearing at the Supreme Court, they probably would have filed some time ago. MERS have apparently been settling cases rather than pursue ones where it though the judge would issue an unfavorable precedent

3. The case in question, from what the experts I consulted with and I can tell, is not the sort the Supreme Court would intervene in based on the issue raised, which is due process (14th Amendment). But none of us have seen the underlying lower and appellate court cases, and the summaries we’ve seen are unusually unclear as to what the legal argument is. [read more]

Iowa Says State AG Accord Won’t Release Banks From Liability

The 50-state attorney general group investigating mortgage foreclosure practices won’t release banks from all civil, or any criminal, liability in a settlement, Iowa Attorney General Tom Miller said. [read more]

Fed Launches New Formal Enforcement Action Against Goldman Sachs To Review Foreclosure Practices

The Federal Reserve Board has just launched a formal enforcement action against Goldman Sachs related to Litton Loan Services. Litton Loan is the nightmare-ridden mortgage servicing unit, a subsidiary of Goldman, that Goldman has been trying to sell for months. They penned a deal to recently, but the Fed stepped in and required Goldman to end robo-signing taking place at the unit before the sale could be completed. Sounds like this enforcement action is an extension of that requirement. [read more]

Goldman Sachs, Firms Agree With Regulator To End ‘Robo-Signing’ Foreclosure Practices

Goldman Sachs and two other firms have agreed with the New York banking regulator to end the practice known as robo-signing, in which bank employees signed foreclosure documents without reviewing case files as required by law, the Wall Street Journal said. In an agreement with New York’s financial-services superintendent, Goldman, its Litton Loan Servicing unit and Ocwen Financial Corp also agreed to scrutinize loan files for evidence they mishandled borrowers’ paperwork and to cut mortgage payments for some New York homeowners, the Journal said. [read more]

Banks still robo-signing, filing doubtful foreclosure documents

Reuters has found that some of the biggest U.S. banks and other “loan servicers” continue to file questionable foreclosure documents with courts and county clerks. They are using tactics that late last year triggered an outcry, multiple investigations and temporary moratoriums on foreclosures. In recent months, servicers have filed thousands of documents that appear to have been fabricated or improperly altered, or have sworn to false facts. Reuters also identified at least six “robo-signers,” individuals who in recent months have each signed thousands of mortgage assignments — legal documents which pinpoint ownership of a property. These same individuals have been identified — in depositions, court testimony or court rulings — as previously having signed vast numbers of foreclosure documents that they never read or checked. [read more]

JPMorgan fined for contravening Iran, Cuba sanctions

JPMorgan Chase Bank has been fined $88.3 million for contravening US sanctions against regimes in Iran, Cuba and Sudan, and the former Liberian government, the US Treasury Department announced Thursday. The Treasury said that the bank had engaged in a number of “egregious” financial transfers, loans and other facilities involving those countries but, in announcing a settlement with the bank, said they were “apparent” violations of various sanctions regulations. [read more]

This Is Considered Punishment? The Federal Reserve Wells Fargo Farce

What made the news surprising, of course, was that the Federal Reserve has rarely, if ever, taken action against a bank for making predatory loans. Alan Greenspan, the former Fed chairman, didn’t believe in regulation and turned a blind eye to subprime abuses. His successor, Ben Bernanke, is not the ideologue that Greenspan is, but, as an institution, the Fed prefers to coddle banks rather than punish them.

That the Fed would crack down on Wells Fargo would seem to suggest a long-overdue awakening. Yet, for anyone still hoping for justice in the wake of the financial crisis, the news was hardly encouraging. First, the Fed did not force Wells Fargo to admit guilt — and even let the company issue a press release blaming its wrongdoing on a “relatively small group.”

The $85 million fine was a joke; in just the last quarter, Wells Fargo’s revenues exceeded $20 billion. And compensating borrowers isn’t going to hurt much either. By my calculation, it won’t top $20 million. [read more]

Exclusive: Regulators seek high-frequency trading secrets

U.S. securities regulators have taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes. The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA), a Wall Street brokerage regulator, are part of investigations into suspicious market activity, said Tom Gira, executive vice president of FINRA’s market regulation unit. [read more]

And here’s part of the Collapse Roundup I wrote on August 25th, referenced in the beginning of this report – as you will see, I would probably make a lot more money as an investment adviser:

Collapse Roundup #5: Goliath On The Ropes, Big Banks Getting Hit Hard, It’s A “Bloodbath” As Wall Street’s Crimes Blow Up In Their Face

Collapse Roundup #5: Goliath On The Ropes, Big Banks Getting Hit Hard, Banking Cartel's Crimes Blowing Up In Their FaceTime to put your Big Bank shorts on! Get ready for a run

The chickens are coming home to roost. Reality is catching up with the market riggers (Fed, ECB, PPT, CIA) and the “too big to fail” banks are getting whacked. Trillions of dollars in bailouts and legalized (FASB) accounting fraud cannot save these insolvent zombie banks any longer. The Grim Reaper is on the horizon and his sickle will do what paid off politicians won’t, cut ‘em down to size. So get your silver stake ready, time to plunge it into their vampire squid hearts….

What about Warren Buffet? He saved Goldman Sachs with a bailout in 2008. Can he save Bank of America?…

Warren’s bailout will help BofA over the short run, but $5 billion is just a drop in the bucket when it comes to their problems. The only thing his $5 billion will accomplish is a temporary run up in stock value so everyone who has been killed on the plummeting stock price can then jump out without complete loss….

Trouble a-comin’…

Goldman Sachs TANKS After CEO Lloyd Blankfein Hires Famous Defense Lawyer

Collapse Roundup #5: Goliath On The Ropes, Big Banks Getting Hit Hard, Banking Cartel's Crimes Blowing Up In Their FaceIs the Goldman Sachs CEO facing a new lawsuit?

The market seems to think so. Goldman Sachs just tanked in minutes before the close after news that Lloyd Blankfein hired a lawyer famous for defending vilified execs. It’s back up a bit since dropping over 5%, but the news is still concerning.

It’s unclear whether the lawyer is for him, Goldman Sachs, or both, but Goldman Sachs’s CEO Lloyd Blankfein hired Reid Weingarten, a high profile defense attorney who says “I’m used to these monstrously difficult cases where everybody hates my clients,” according to Reuters.

Reuters says the hire might have something to do with accusations of Blankfein’s committing perjury. Or something else:

One former federal prosecutor, who was not authorized to speak publicly, said Blankfein may have hired outside counsel after receiving a request from investigators for documents or other information. [read full report]

Speaking of hiring lawyers…

The Global Banking Cartel’s Crimes Are Being Exposed Left & Right…

Blowing Up In Their Face… Prepare for Shock & Awe…

BOOM! Moody’s exposed:

MOODY’S ANALYST BREAKS SILENCE: Says Ratings Agency Rotten To Core With Conflicts

A former senior analyst at Moody’s has gone public with his story of how one of the country’s most important rating agencies is corrupted to the core.

The analyst, William J. Harrington, worked for Moody’s for 11 years, from 1999 until his resignation last year.

From 2006 to 2010, Harrington was a Senior Vice President in the derivative products group, which was responsible for producing many of the disastrous ratings Moody’s issued during the housing bubble.

Harrington has made his story public in the form of a 78-page “comment” to the SEC’s proposed rules about rating agency reform….

Here are some key points:

* Moody’s ratings often do not reflect its analysts’ private conclusions. Instead, rating committees privately conclude that certain securities deserve certain ratings–but then vote with management to give the securities the higher ratings that issuer clients want.

* Moody’s management and “compliance” officers do everything possible to make issuer clients happy–and they view analysts who do not do the same as “troublesome.” Management employs a variety of tactics to transform these troublesome analysts into “pliant corporate citizens” who have Moody’s best interests at heart.

* Moody’s product managers participate in–and vote on–ratings decisions. These product managers are the same people who are directly responsible for keeping clients happy and growing Moody’s business.

* At least one senior executive lied under oath at the hearings into rating agency conduct. Another executive, who Harrington says exemplified management’s emphasis on giving issuers what they wanted, skipped the hearings altogether. [read full report]

BOOM! The SEC Caught Covering Up Wall Street Crimes:

Matt Taibbi Exposes How SEC Shredded Thousands of Investigations

An explosive new report in Rolling Stone magazine exposes how the U.S. Securities and Exchange Commission destroyed records of thousands of investigations, whitewashing the files of some of the nation’s largest banks and hedge funds, including AIG, Wells Fargo, Lehman Brothers, Goldman Sachs, Bank of America and top Wall Street broker Bernard Madoff. Last week, Republican Sen. Chuck Grassley of Iowa said an agency whistleblower had sent him a letter detailing the unlawful destruction of records detailing more than 9,000 information investigations. We speak with Matt Taibbi, the political reporter for Rolling Stone magazine who broke this story in his latest article….

KA-BOOM! The Fed And All Their Crony-Capitalist Cartel Members Exposed, Yet Again:

Wall Street Pentagon Papers Part III – Are The Federal Reserve’s Crimes Still Too Big To Comprehend?

Collapse Roundup #5: Goliath On The Ropes, Big Banks Getting Hit Hard, Banking Cartel's Crimes Blowing Up In Their FaceAnother day, another trillion plus in secret Federal Reserve “bailouts” revealed. Bloomberg News exposes this latest Fed “deal” after winning a long Freedom of Information Act (FOIA) legal battle to get the details on what was done with the American people’s money. Their report runs with an AmpedStatus style headline: “Wall Street Aristocracy Got $1.2 Trillion From Fed.”

The aristocracy is alive and well… thanks to the Fed, of course.

Keep in mind, this $1.2 trillion is in addition to the $16 trillion the Government Accountability Office (GAO) audit revealed and the over $2 trillion in Quantitative Easing the Fed dished out, not to mention the now continued promise of the Zero Interest Rate Policy (ZIRP). This is also separate from the $700 billion TARP program that Congress approved. This is yet another unknown secret program, throwing another mere $1.2 trillion in public money at the Wall Street elite (global banking cartel), just being revealed now.

Those of us paying attention over the past three years have had Fed crony-capitalism on steroids fatigue for awhile now. Nonetheless, this is deja vu all over again as another mindbogglingly huge story that must be covered comes to light.

Here are the details of this latest revelation:

[read full report]

Speaking of the $16 trillion GAO audit…

BOOM! GAO audit exposed, missing some vital details:

More on how the GAO’s Fed audit failed to disclose some dirty secrets about BlackRock and JP Morgan

In its review of the Fed’s outsourcing practices, it failed to mention the most damaging and suspicious sole-source (no bid) contract awarded to BlackRock, which was for handling the New York Fed’s toxic Bear Stearns portfolio, otherwise known as Maiden Lane. This contract would generate $108,000,000 in fees and was one of the largest awarded during the bailout period, but it might also have saved JP Morgan $1.1 billion in losses from its Bear Stearns acquisition….

Also, BlackRock was also one of the managers of the NY Fed’s separate $1.25 trillion MBS purchase program as part of QE1. Contrary to the lie on the NY Fed’s webpage (that the MBS auctions were conducted via competitive bidding), the NY Fed’s own purchasing manager, Brian Sack, admitted in a paper that, “the MBS purchases were arranged with primary dealer counterparties directly, [and] there was no auction mechanism to provide a measure of market supply.”

Putting it all together, it looks like Jamie Dimon signed off on hiring BlackRock for no justifiable reason to trade the very Maiden Lane portfolio that could have caused his bank, JP Morgan, to lose up to $1.1 billion. And, it was entirely possible that BlackRock saved the portfolio by trading the MBS portion of ML with the New York Fed directly as QE1 was underway. [read full report]

BOOM! Bear Stearns exposed:

Report Says Bear Stearns Executives Sold Illegal RMBS and Covered It Up

Former back office employees from Bear Stearns are coming out of the woodwork to explain how Tom Marano’s mortgage group cheated their own clients out of billions. This week I reported at The Distressed Debt Report, EMC insiders say they were told to make up the classification for whole loans, packaged into mortgage securities, to get them switched out of the trust. By classifying the loans as ‘prepaid’ or having ‘subsequent recoveries’ Bear employees were able to fool the trustee into giving them back loans they were not able to legally service. A move New York Attorney General Eric Schneiderman is actively investigating now.

In my latest DealFlow story we hear from EMC staffers who describe how subprime loans, that would have been sold by Bear Stearns trader Jeff Verschleiser’s team, never had a proper servicing license in West Virginia when they were packaged into the residential mortgage backed security. In 2003 Bear/EMC put $100 million of subprime loans from West Virginia into a few RMBS transactions. EMC, the banks wholly owned mortgage servicing shop, would service all of Bear’s RMBS after they were sold.

A year latter, when senior executies realized the mishap instead of Bear going out and informing their regulator and applying for a license, they orchestrated a cover up and even threaten EMC employees not to talk about it. [read full report]

The big banks are getting lit up!

You shall reap what you sow.

Karma is a … bit@h. [read full report]

Let’s end with this video. We need to keep in mind that the Federal Reserve has known about all of this criminal activity from the start. Yet, they have done everything they could, and are still trying, to keep this criminal operation up and running. As all these criminal banks begin to blow up, let’s not forget who their central bank is and what they have done to the American people.

Cenk, take it away and drive the point home:


- David DeGraw is the founder and editor of AmpedStatus.com. His long-awaited book, The Road Through 2012: Revolution or World War III, will finally be released on September 28th. He can be emailed at David[@]AmpedStatus.com. You can follow David’s reporting daily on his new personal website: DavidDeGraw.org


~ We are fighting to remain 100% independent, completely free from partisan influence. If you respect our work, please donate to support our efforts here.

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A TRUSTEE CANNOT MAINTAIN AN ACTION ON BEHALF OF A TRUST THAT DOESN 'T EXIST

I looked into the records for that entity in the SEC EDGAR online database and discovered that the last annual report was filed in 2007, contemporaneously with a FORM 15 filing.That Form 15 filing claimed a standing under 15d-6 of the 1934 SEC regulations which exempts the entity of filing an annual report, whereby the number of claimed investors had fallen below the SEC registration and reporting threshold of 300 persons. ( To my understanding, the same Form 15 filing is also used when a registered, reporting, entity is dissolved.)

I then began looking at many other securitized trusts in the EDGAR database. Literally dozens and dozens of these securitized trusts have done exactly the same thing. The trust is established and appropriate SEC documents are filed for a period of time, usually 1 or 2 years. The trust then files a Form 15 claiming exemption of the obligation to file reports with the SEC under 15d-6
The paper trail for the Trust with the SEC thereby ends. Many of these trusts have not filed anything with the SEC for years. Many as far back as 2005 and 2006. Some of the SEC Form 15d-6 filings disclosed as few as 15 or less investors . Bear in mind, these are for trusts that purportedly hold well over $1 BILLION in mortgages, and there are dozens and dozens of these trusts with a mere hand full of investors! I also noted that the agents of record of many of these trusts have changed many times, and are very infrequently named, but list only an address and phone number, (usually in New York). In several of the cases I ‘ve looked at in the EDGAR database, I actually called some of the phone number listed at 3:00am EST and got the voicemail of someone at a bank in N.Y. Note that the answering party was NEVER a bank listed as the Trustee, (as Deutsche Bank is in my case), or the trust administrator as listed in the PSA or any subsequent SEC filings. I actually got the voicemail of some fellow at HSBC Bank who was the anonymous contact in my case! My point is this — Has anyone actually verified that the securitized trusts claimed to be under the trusteeship of some of these banks still ACTUALLY EXIST? We ‘ve been so focused on the NOTE and the fraudulent paper being slung about for assignment of those notes, and whether or not the plaintiff has standing to bring the foreclosure action, has anyone thought to see if the plaintiff trust is even still active or not? Were many of these trusts actually dissolved after payouts from credit default swaps and TARP funds and the actual investors now long gone? We have no records to show whether they are alive or dead. Most of these trusts haven ‘t filed anything with anyone in years as far as I can tell. Certainly, as in my case, Deutsche Bank, (as Trustee), still exists, but can these plaintiff securitized trusts be made to prove they still exist? What happens to a foreclosure case if the plaintiff entity,(the securitized trust, not the Trustee for it), no longer exists or cannot prove it exists? IT ‘S TIME FOR ME TO GET BACK TO AN ISSUE THAT I HAVEN ‘T TALKED ABOUT FOR A WHILE AND IT IS THIS CAPACITY ISSUE BECAUSE IT STRIKES AT THE HEART OF THESE CASES. SIMPLY PUT, A TRUSTEE CANNOT MAINTAIN AN ACTION ON BEHALF OF A TRUST THAT DOESN ‘T EXIST.

KISS: KEEP IT SIMPLE STUPID from Garfield

Finality versus good and evil. In the battlefield it isn’t about good and evil. It is about winner and losers. In military battles around the world many battles have been one by the worst tyrants imaginable.

Just because you are right, just because the banks did bad things, just because they have no right to do what they are doing, doesn’t mean you will win. You might if you do it right, but you are up against a superior army with a dubious judge looking on thinking that this deadbeat borrower wants to get out of paying.

The court system is there to mediate disputes and bring them to a conclusion. Once a matter is decided they don’t want it to be easy to reopen a bankruptcy or issues that have already been litigated. The court presumably wants justice to prevail, but it also wants to end the dispute for better or for worse.

Otherwise NOTHING would end. Everyone who lost would come in with some excuse to have another trial. So you need to show fundamental error, gross injustice or an error that causes more problems that it solves.

These are the same issues BEFORE the matter is decided in court. Foreclosures are viewed as a clerical act or ministerial act. The outcome is generally viewed as inevitable.

And where the homeowner already admits the loan exists (a mistake), that the lien is exists and was properly filed and executed (a mistake) and admits that he didn’t make payments — he is admitting something he doesn’t even know is true — that there were payments due and he didn’t make them, which by definition puts him in default.

It’s not true that the homeowner would even know if the payment is due because the banks refuse to provide any accounting on the third party payments from bailout, insurance CDS, and credit enhancement.

That’s why you need reports on title, securitization, forensic reviews for TILA compliance and loan level accounting. If the Judges stuck to the law, they would require the proof first from the banks, but they don’t. They put the burden on the borrowers —who are the only ones who have the least information and the least access to information — to essentially make the case for the banks and then disprove it. The borrowers are litigating against themselves.

In the battlefield it isn’t about good and evil, it is about winners and losers. Name calling and vague accusations won’t cut it.

Sure you want to use the words surrogate signing, robo-signing, forgery, fabrication and misrepresentation. You also want to show that the court’s action would or did cloud title in a way that cannot be repaired without a decision on the question of whether the lien was perfected and whether the banks should be able to say they transferred bad loans to investors who don’t want them — just so they can foreclose.

But you need some proffers of real evidence — reports, exhibits and opinions from experts that will show that there is a real problem here and that this case has not been heard on the merits because of an unfair presumption: the presumption is that just because a bank’s lawyer says it in court, it must be true.

Check with the notary licensing boards, and see if the notaries on their documents have been disciplined and if not, file a grievance if you have grounds. Once you have that, maybe you have a grievance against the lawyers. After that maybe you have a lawsuit against the banks and their lawyers.

But the primary way to control the narrative or at least trip up the narrative of the banks is to object on the basis that counsel for the bank is referring to things not in the record. That is simple and the judge can understand that.

Don’t rely on name-calling, rely on the simplest legal requirements that you can find that have been violated. Was the lien perfected?

If the record shows that others were involved in the original transaction with the borrowers at the inception of the deal, then you might be able to show that there were only nominees instead of real parties in interest named on the note and mortgage.

Without disclosure of the principal, the lien is not perfected because the world doesn’t know who to go to for a satisfaction of that lien. If you know the other parties involved were part of a securitization scheme, you should say that — these parties can only be claiming an interest by virtue of a pooling and servicing agreement. And then make the point that they are only now trying to transfer what they are calling a bad loan into the pool that the investors bought — which is expressly prohibited for multiple reasons in the PSA.

This is impersonation of the investor because the investors don’t want to come forward and get countersued for the bad and illegal lending practices that were used in getting the borrower’s signature.

Point out that the auction of the property was improperly conducted where you can show that to be the case. Nearly all of the 5 million foreclosures were allowed to be conducted with a single bid from a non-creditor.

If you are not a creditor you must bid cash, put up a portion before you bid, and then pay the balance usually within 24-72 hours.

But instead they pretended to be the creditor when their own documents show they were supposed to be representing the investors who were not part of the lawsuit nor the judgment.

SO they didn’t pay cash and they didn’t tender the note. THEY PAID NOTHING. In Florida the original note must actually be filed with the court to make sure that the matter is actually concluded.

There is a whole ripe area of inquiry of inspecting the so-called original notes and bringing to the attention the fraud upon the court in submitting a false original. It invalidates the sale, by operation of law.

MANDELMAN MATTERS: DEADBEAT BORROWERS AND THIEVES WHO CALL THEM THAT

“If you’re allowed to foreclose and kick someone out of his or her home without being the party that either owns the loan or represents the person who owns the loan… if you can ignore those laws, why can’t you ignore other laws too? Which laws apply, when one of the parties didn’t make his or her payments?”
Home » Today’s New… “But, You Didn’t Make Your Payment” Exemption to the Law
Today’s New… “But, You Didn’t Make Your Payment” Exemption to the Law

I’m not a lawyer, so let’s be very clear about that, but I’m about to tell you how the law has always worked in this country, as far as I have understood it.

If you came to repossess my car, then you were required to be the person or entity that held the pink slip to my car, or you had to be working for the person or entity that held the pink slip to my car. If you were not the person or entity holding my pink slip, then you couldn’t come repossess my car.

In fact, if you came and repossessed my car but were NOT the person or entity holding my pink slip, then we had a phrase to describe that occurrence as well … you were STEALING MY CAR.

Pretty straightforward, right? I don’t even think you need to finish law school if that’s the extent to which you want to understand the law. And don’t let any of the attorneys that may be reading this around you try to make it more complicated, because it’s not. It is that simple… you can’t repossess someone’s car unless you’re the person or entity that holds the pink slip, or title, to that car… or are working for that person or entity, of course.

That’s the same way it’s supposed to work where houses are concerned. If you don’t make your mortgage payments, that doesn’t mean that everyone in the country is allowed to throw you out of your home… only the person or entity that holds your mortgage is supposed to be able to do that, right? Of course that’s right, silly. And don’t play semantics with me, that’s the deal.

But in this country today, there appears to be a new exemption to quite a few laws… it’s called the “But you didn’t make your mortgage payments” exemption, and when it comes into play, nothing else seems to much matter… you just lose.

Like, what if you don’t make your mortgage payments and the entity that comes to evict you from your home is one that you’ve never heard of before. And they have no proof whatsoever that they own your loan or represent the entity that owns your loan. Well, in general it’s tough cheese. The judge just says, “But you didn’t make your mortgage payments,” and that’s the end of that. And most everyone seems to be in agreement with this line of thinking.

You say, “But, your Honor… they’ve broken a dozen laws here… important laws… laws governing the transfer of property rights upon which the country has been built.” And the judge just gets annoyed saying, “But you didn’t make your mortgage payments,” and that’s the end of that. It’s almost like a get out of jail free card.

So, you say, “But your Honor, they’ve forged the documents, falsified the records, committed fraud on your court.” But he says it doesn’t matter… you didn’t make your mortgage payments… you have no rights and the party that’s foreclosing is now exempt from all of the laws that might otherwise apply. In fact, those laws are now reduced to being mere “technicalities.” And no one cares about technicalities as compared to you not making your mortgage payments.

So, I’m just wondering… don’t you think this sets kind of a dangerous precedent?

Let’s say that you’re not making your mortgage payments. And one night after dinner, the doorbell rings and you answer the door and it’s a representative of your mortgage servicer… and he punches you right in the face and then proceeds to beat the crap out of you.

And you end up in court. And the judge says, “But you didn’t make your mortgage payments, “ and dismisses the case. And you say, “But, your Honor… my mortgage servicer beat the crap out of me and that’s against the law, in fact there are all sorts of laws broken by him beating the crap out of me.” But the judge just replies, “But you didn’t make your mortgage payments, “ and that’s the end of that.

Do you think I’m being ridiculous? Why? What’s the difference between ignoring one set of laws and another set of laws? If you’re allowed to foreclose and kick someone out of his or her home without being the party that either owns the loan or represents the person who owns the loan… if you can ignore those laws, why can’t you ignore other laws too? Which laws apply, when one of the parties didn’t make his or her payments?

You see, I think the reason we have laws about the transfer of property is because it was important that someone not lose their property without those laws being followed. Whether one made their payments or not, wasn’t the point… the point was simply that the transfer of property rights has always been seen as a pretty big deal under the law, as far as I can tell.

I think the reason we let things get a little loose concerning foreclosure is that we trusted the bankers who were foreclose. In California, and all of the non-judicial foreclosure states, as far as I know, you don’t need to prove to the court that you hold the title to someone’s home in order to foreclose, and I’m pretty sure that the reason that was okay to our lawmakers was that they trusted the bankers… and they never envisioned not trusting them in that regard.

The problem is that today there is an abundance of evidence that says we cannot trust our bankers… quite often they lie, commit fraud on the courts, and in general are more than willing and able to fabricate and falsify whatever is required to foreclose on someone’s home… period. They don’t care at all… and they don’t get in trouble for it either, which I find the most disturbing part of the whole thing.

So, since its become clear that bankers lie, and cannot be trusted, we’re going to need to bring back the old laws about having to prove you’re the right party to be foreclosing on someone’s home before you’re allowed to do so. Several states have already done this… Hawaii and Arkansas, most recently. Arizona tried to pass such a law, but the banking lobby got to them and killed them both.

California had a bill that would have come close, but the banking lobby killed it in committee, for heaven’s sake. It was too dangerous to even debate in the legislature.

Some have said to me, “But Mandelman… the banks need to be able to foreclose or repossess when people don’t make their house or car payments.” And I reply… “No one is debating that point. Of course they can foreclose when payments are not made. If they’re the party who holds the beneficial interest, as the lawyers says, in the loan. If they lost the pink slip, they’ll have to correct that problem before they can come take back my car.”

It’s no different than if my car gets impounded for being parked in the wrong spot. When I show up to get it out of impound, I better have the registration, right? If I don’t, what am I told by the man at the impound lot? No ticket, no laundry, right?

We have laws about the transfer of property in this country and there are reasons for these laws. None of these laws say anything about banks only being required to follow them when someone is current on his or her payments.

Let’s stop making this more complicated than it needs to be… if the trust can prove that it does hold the note, that the note was properly assigned to that trust, that the note was endorsed… or whatever was supposed to happen according to the laws and rules, did in fact happen, then fine… foreclose away. But if that’s not the case, banker people… then you have to fix it… before you’re allowed to foreclose.

Sorry, and I know how unfair you think this is, but forging the documents isn’t an okay answer to this problem. Like if you want to repossess my car and you lost the pink slip, the acceptable answer is not to fake one on your laser printer and get Linda Green to sign it, got it? That’s not how we fix things in this country, and it doesn’t matter who made payments on time and who didn’t.

If that’s inconvenient, then so be it. And I have to think it’s a damn sight less inconvenient than what’s going on today, and if it’s even more inconvenient than that, then the bankers in this country have really screwed up bad, and we should all be shown what they’ve done.

I ran all of this by a lawyer friend of mine and here is the language from the Deed of Trust (page 23):

“Reconveyance. Upon payment of all sums secured by this security instrument, lender shall request trustee to reconvey the property and shall surrender this security instrument and all notes evidencing debt secured by this security instrument to trustee. Trustee shall reconvey the property without warranty to the person or persons legally entitled to it.”

So, apparently this language appears in EVERY Deed of Trust, including yours, your Honor. So when you want your pink slip/title/note in order to have your mortgage burning party, you may be disappointed to find that no one seems to have it.

And what about title insurance in the future? Will we be able to get it as a result of this whole mess being allowed to go on unchecked? I don’t think anyone really knows the answer to that question.

Lastly, the question always seems to come around to one of damages. How did the note not being properly endorsed to the trust and the trust being permitted to foreclosing anyway damage the homeowner? Again, it’s quite simple, really…

If someone is allowed to repossess my car even though that entity doesn’t hold my pink slip or work for the entity that holds my pink slip, then whoever repossessed my car STOLE IT. And that, by itself, sounds pretty damaging.

But what if someone shows up later and says they have the pink slip? What then? Will they be understanding and say, “Oh, someone else got it. No problem, we’re sorry to have bothered you. We’ll follow up with them.”

Somehow I doubt that will happen that way. And there are several reasons I’m not at all sure that this won’t be the case in the years to come. For one thing, both Taylor Bean & Whittaker and New Century Mortgage were found to have sold mortgages to more than one person at the same time, and others have admitted that it happens all the time.

And for another, I know of several homeowners who have filed quiet title actions and are still waiting for someone to show up and say they own the loan… in one case that’s recently been brought to my attention, it’s been almost a year and still no one has shown up. Does that mean no one will? Or will someone show up years from now? (Here’s the case, click it and you’ll see.)

Harvey v Garbett, Quiet Title Case in Draper Utah

I don’t really know, but wouldn’t it just be easier for the entity foreclosing to be the entity that actually holds the beneficial interest in the loan? You know, just as the law has always intended?

There’s another reason that it makes sense to require the right entity to foreclose… because the right entity, the entity that does in fact hold the beneficial interest in the loan would be much more likely to want to modify the loan as opposed to foreclosing on it, in instances where the payments have not been made.

You see, servicers chose to foreclose because it’s in their own best interests to foreclose, but what about the investor’s best interests? After all the investor is who put up the money in the first place, so what about the investor’s best interests?

Surely the investor would rather have a modified loan, especially in instances where the home is terribly underwater and by foreclosing the investor will realize an enormous loss and then not be able to sell it… perhaps for several years… wouldn’t you think that investor would prefer to modify the loan and get payments again?

Louis Ranieri, who is often referred to as the father of mortgage-backed securities had the following to say about foreclosing:

“The cardinal principle in the mortgage crisis is a very old one. You are almost always better off restructuring a loan in a crisis with a borrower than going to a foreclosure.

In the past that was never at issue because the loan was always in the hands of someone acting as a fiduciary. The bank, or someone like a bank owned them, and they always exercised their best judgment and their interest. The problem now with the size of securitization and so many loans are not in the hands of a portfolio lender but in a security where structurally nobody is acting as the fiduciary.”

Well, what do you know about that? So, it seems there are lots of good reasons that we should make sure that the entity foreclosing is the entity who does in fact own the loan, or at least work for the entity that owns the loan.

So, why are we making this so damn difficult? And why is it such a big problem for a bank-servicer-whatever to show up and actually prove that the trust actually holds the note in question? They don’t really expect us to buy into that whole, “But we lost them, your Honor. All of them, your Honor. It was a mass misplacement, your Honor.”

I mean, come on now… are we really supposed to believe that ALL of the major banks lost ALL of the notes and ALL at the same time? Seriously? I know 14 year-old boys that could tell you that such a story is simply not believable.

It’s time to come clean banker-people. Your story stinks to high heaven and the homeowners, lawyers, investors, and even the government investigators are all getting closer to uncovering the truth every day.

And until the banks start telling the truth, or modifying loans in the best interests of the investors and homeowners like they are supposed to…

… how about we the people pass a bill that requires the entity foreclosing to prove they are the entity that owns the loan… because it’s clear… abundantly clear… that we certainly can’t trust the trustee any more.

SAY NO TO LENDERS FRAUD!

Contact Us: MortgageReductionLaw.com

Dear Homeowner,

It’s been widely reported around the country, via internet, blogs and newspapers, how the lenders used the foreclosure mills and other legal ways, to fabricate fraudulent documents to record in the county recorder offices and pretend they have legal standing to initiate the foreclosure procedure.

Neil Garfield in his blog www.livinglies.com, The Huffington Post, The New York Times, Steve Vondran in his website www.foreclosuredefenseresourcecenter.com, Tim McCandless in his blog http://timothymccandless.wordpress.com and many others have been advocating for the homeowners trying to raise awareness in the courts so that justice can be served.Contact Us: MortgageReductionLaw.com

A few years ago, when the Mortgage Debacle started, these lenders went after the Mortgage Brokers after they found themselves in trouble for the many defaulted loans. They filed civil and criminal lawsuits convicting these brokers for fabricating documents and forging signatures to fund the loans. The legal system, judges and General Attorneys were prompt to convict “these so called criminals”.Contact Us: MortgageReductionLaw.com

Today the tables have turned 180 degrees and we have discovered how these entities have been widely practicing what they accused others of. Today the lenders are fabricating documents, forging signatures and filing fraudulent documents with the government agencies to weasel their way into owning the homeowners’ properties.Contact Us: MortgageReductionLaw.com

The fact that judges preceding the Unlawful Detainer hearings are not educated enough about the matter and don’t want to take the time to hear the attorneys defending the homeowners, does not help to make this wrong right. Securitization is a very complicated subject that cannot be taught in an Unlawful Detainer hearing or even in a Wrongful Foreclosure hearing. The way judges have been manipulating the information provided by the homeowners in their lawsuits to rule in favor of the lenders is despicable!Contact Us: MortgageReductionLaw.com

That’s why it’s so important to have all your property recorded documents used to foreclose on your home, been researched and analyzed by an expert that can identify all the issues that can be used in a Court of Law to fight for your home.

When you go in front of a Judge with enough evidence to prove that fraud was committed by the lender when the lender fabricated documents used to foreclose, you have a good chance to get the Judge’s attention. Fraud is a subject they know, it’s a crime and they can rule in your favor. It would be very difficult for a Judge to justify this fraudulent behavior on the part of the lender.

Later on, once you have successfully received an injunction, you can bring the securitization argument in your complaint and make the lender prove their innocence.Contact Us: MortgageReductionLaw.com

The documents used to initiate the foreclosure of your home have been fraudulently fabricated by either the Trustee or the Lender.

Some attorneys who have explored this cause of action in their civil lawsuits, have been able to get relief for the homeowners by getting the in Temporary Restraining Order and the Injunction granted.

Below please find proof of a very common practice within these entities when they fabricate documents. They use the name of one person who becomes an officer of many entities and the signature is very different in different documents. This has happened in your case too.

This is a portion of our report after thoroughly performing research and discovery for one of our clients: (testimonial letters can be provided upon request after signing a confidentiality agreement).

SIGNED BY: LINDA GREEN AS VICE PRESIDENT FOR AMERICAN HOME MORTGAGE SERVICING, INC. AS SUCCESOR IN INTEREST TO OPTION ONE MORTGAGE CORPORATION

TOO MANY JOBS

For this report, over 500 mortgage assignments were examined.

Each Assignment was filed by Docx, a mortgage servicing company in Alpharetta, GA; each was notarized in Fulton County, GA.

Many of these Assignments have been used in foreclosure actions to prove that the lender has the legal right to file the foreclosure actions.

The name of Linda Green, frequently appears on Docx documents. The following list summarizes some of the many job titles used by Green.Contact Us: MortgageReductionLaw.com

JOB TITLES HELD BY LINDA GREEN

11-11-2004 & 06-22-2006

Vice President, Loan Documentation, Wells Fargo Bank, N.A., successor by merger to Wells Fargo

Home Mortgage, Inc.

08-11-2008 & 08-14-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

08-27-2008

Vice President, American Home Mortgage Servicing as successor-in-interest to Option One Mortgage Corporation

09-19-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit

09-30-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

09-30-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit

10-08-2009

Vice President & Asst. Secretary, American Home Mortgage Servicing, Inc., as servicer for Ameriquest Mortgage Corporation

10-16-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

10-17-2008, 11-20-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit

11-20-2008

Vice President, Option One Mortgage Corporation

12-08-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit

12-15-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for HLB Mortgage

12-24-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

12-26-2008

Vice President, American Home Mortgage Servicing, Inc

01-13-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for Family Lending Services, Inc

01-15-2009

Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage Acceptance, Inc

02-03-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Broker Conduit

02-24-2009

Vice President, American Home Mortgage Servicing, Inc. as successor-in-interest to Option One Mortgage Corporation

02-25-2009

Vice President, Bank of America, N A

02-27-2009

Vice President, American Home Mortgage Servicing, Inc., as successor-in-interest to Option One Mortgage Corporation

03-02-2009

Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage

03-04-2009

Vice President, Argent Mortgage Company, LLC by Citi Residential Lending Inc., attorney-in-fact

03-06-2009 & 03-20-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

04-15-2009, 04-17-2009, 04-20-2009

Vice President, Bank of America, N.A.

05-11-2009, 07-06-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

07-14-2009

Vice President, Bank of America, N.A.

07-30-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

08-12-2009

Vice President, Sand Canyon Corporation f/k/a Option One Mortgage Corporation

08-28-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.

09-03-2009

Asst. Vice President, Sand Canyon Corporation formerly known as Option One Mortgage Corporation

09-03-2009

Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage

09-04-2009

Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage

09-08-2009

Vice President, Bank of America, N.A.

09-21-2009 & 09-22-2009

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc

ATTACHED TO THIS DOCUMENT OTHER DOCUMENTS SIGNED BY LINDA GREEN THAT SHOW THE VARIATIONS OF HER SIGNATURE

IT APPEARS AS IF THE SIGNATURE OF MS. GREEN COULD BE A FORGERY.Contact Us: MortgageReductionLaw.com

A forgery is a writing which falsely purports to be writing for another and is executed with the intent to defraud. Ordinarily a forged instrument cannot carry title.

THE SIGNATURE BELOW IS THE SIGNATURE IN THIS ASSIGNMENT OF DEED OF TRUST:Contact Us: MortgageReductionLaw.com

THE FOLLOWING SIGNATURES ARE FROM DIFFERENT DOCUMENTS RECORDEDIN DIFFERENT COUNTIES:

THIS WHOLE SYSTEM IS A FARCE. A BROKEN DOWN, FRAUDULENT, SHAKY, DISHONEST AND TERRIFYINGLY CORRUPT SYSTEM.

The press and the general public is starting to pick up on these major systemic issues that judges, attorneys and other insiders have known about for some time…when the whole system collapses we’ve all got a real mess on our hands.

As we all struggle to unravel this monstrous mess, breaking down capacity will be a key focus in the problem. We’re all going to be searching around to determine who to sue and where to sue them, but because the courts failed to enforce the most basic pleading requirement….i.e. specifically identify who the parties to the lawsuit are, this is going to be most difficult.

One of the persistent and most pervasive problems in the whole foreclosure crisis is the inability of any party to get reliable or credible information about what is owed on a mortgage, who that phantom amount is owed to and what negotiated amount a lender, servicer or other party involved in the transaction might accept to modify or short sale the underlying loan.

A very concerning issue is the publication on the MERS website of information that identifies who the servicer on a loan is and who the investor in that loan is. But, neither the servicer or investor matches up to the information in many cases.

When you combine all this information with the depositions of Robo signers that are posted on many website, you’ll understand that in a large number of cases, the only connection between the plaintiff foreclosing and the mortgage being foreclosed is a sloppy and hastily executed Assignment signed by an officer that has no corporate authority and has no personal knowledge of the information contained on those documents.

It’s simply not okay to use the “robosigning” practice in the non judicial foreclosure states because these foreclosure cases don’t have to go to court.

The following are some of the most clear legal reasons why the Robo-Signer Controversy should entitle hundreds of thousands of homeowners wrongfully foreclosed and evicted to sue in non judicial foreclosure states. Robo Signers are illegal because fraud cannot be the basis of clear title, trustee’s deeds following Robo Signed sales should be void as a matter of law, notarization is a recording requirement for many of the documents, which was often botched, and most importantly because robo signed falsifications are meant for use in court, including unlawful detainers and bankruptcy matters.Contact Us: MortgageReductionLaw.com

CALIFORNIA

1. Clear Title May Not Derive from a Fraud (including a bona fide purchaser for value).

In the case of a fraudulent transaction California law is settled. The Court in Trout v. Trout, (1934), 220 Cal. 652 at 656 stated:

“Numerous authorities have established the rule that an instrument wholly void, such as an undelivered deed, a forged instrument, or a deed in blank, cannot be made the foundation of a good title, even under the equitable doctrine of bona fide purchase. Consequently, the fact that defendant Archer acted in good faith in dealing with persons who apparently held legal title, is not in itself sufficient basis for relief.” (Emphasis added, internal citations omitted).

This sentiment was clearly echoed in 6 Angels, Inc. v. Stuart-Wright Mortgage, Inc. (2001) 85 Cal.App.4th 1279 at 1286 where the Court stated:

“It is the general rule that courts have power to vacate a foreclosure sale where there has been fraud in the procurement of the foreclosure decree or where the sale has been improperly, unfairly or unlawfully conducted, or is tainted by fraud, or where there has been such a mistake that to allow it to stand would be inequitable to purchaser and parties.” (Emphasis added).

If forged signatures are used to obtain the foreclosure it makes a difference!

2. Any apparent sale based on Robosigned documents or forged signatures should be void and without any legal effect.

In Bank of America v. LaJolla Group II, the California Court of Appeals held that if a trustee is not contractually empowered under the Deed of Trust to hold a sale, it is totally void. Voidness, as opposed to voidability, means that it is without legal effect. Title does not transfer. No right to evict arises. The property is not sold.

In turn, California Civil Code 2934a requires that the beneficiary execute, notarize and record a substitution for a valid Substitution of Trustee to take effect. Thus, if the Assignment of Deed of Trust, the Substitution of Trustee or the Notice of Default are Robo-Signed, the sale should be void.Contact Us: MortgageReductionLaw.com

3. These documents are not recordable without good notarization.

In California, the reason these documents are notarized in the first place is because otherwise they will not be accepted by the County recorder. Moreover, a notary who helps commit real estate fraud is liable for $25,000 per offense.

Once the document is recorded, however, it is entitled to a “presumption of validity”, which is what spurned the falsification trend in the first place. California Civil Code Section 2924. Therefore, the notarization of a false signature not only constitutes fraud, but is every bit intended as part of a larger conspiracy to commit fraud on the court.

4. The documents are intended for court eviction proceedings.

A necessary purpose for these documents, after the non judicial foreclosure, is the eviction of the rightful owners afterward. Even in California, eviction is a judicial process, albeit summary and often sloppily conducted by judges who don’t really believe they can say no to the pirates taking your house. However, as demonstrated below, once these documents make it into court, the bank officers and lawyers become guilty of felonies:

California Penal Code section 118 provides (a) Every person who, having taken an oath that he or she will testify, declare, depose, or certify truly before any competent tribunal, officer, or person, in any of the cases in which the oath may by law of the State of California be administered, willfully and contrary to the oath, states as true any material matter which he or she knows to be false, and every person who testifies, declares, deposes, or certifies under penalty of perjury in any of the cases in which the testimony, declarations, depositions, or certification is permitted by law of the State of California under penalty of perjury and willfully states as true any material matter which he or she knows to be false, is guilty of perjury.Contact Us: MortgageReductionLaw.com

This subdivision is applicable whether the statement, or the testimony, declaration, deposition, or certification is made or subscribed within or without the State of California.

Penal Code section 132 provides: Every person who upon any trial, proceeding, inquiry, or investigation whatever, authorized or permitted by law, offers in evidence, as genuine or true, any book, paper, document, record, or other instrument in writing, knowing the same to have been forged or fraudulently altered or ante-dated, is guilty of felony.

The Doctrine of Unclean Hands provides: plaintiff’s misconduct in the matter before the court makes his hands “unclean” and he may not hold with them the pristine remedy of injunctive relief. California Satellite Sys. v Nichols (1985) 170 CA3d 56, 216 CR 180. California’s unclean hands rule requires that the Plaintiff don’t cheat, and behave fairly. The plaintiff must come into court with clean hands, and keep them clean, or he or she will be denied relief, regardless of the merits of the claim. Kendall-Jackson Winery Ltd. v Superior Court (1999) 76 CA4th 970, 978, 90 CR2d 743. Whether the doctrine applies is a question of fact. CrossTalk Prods., Inc. v Jacobson (1998) 65 CA4th 631, 639, 76 CR2d 615.

5. Robo Signed Documents Are Intended for Use in California Bankruptcy Court Matters. One majorly overlooked facet of California is our extremely active bankrtupcy court proceedings, where, just as in judicial foreclosure states, the banks must prove “standing” to proceed with a foreclosure. If they are not signed by persons with the requisite knowledge, affidavits submitted in bankruptcy court proceedings such as objections to a plan and Relief from Stays are perjured.

The documents in support are often falsified evidence.

CONCLUSION

Verified eviction complaints, perjured motions for summary judgment, and all other eviction paperwork after robo signed non judicial foreclosures in California and other states are illegal and void. The paperwork itself is void. The sale is void. But the only way to clean up the hundreds of thousands of effected titles is through litigation, because even now the banks will simply not do the right thing. And that’s why robo signers count in non-judicial foreclosure states. Victims of robosigners in California may seek declaratory relief, damages under the Rosenthal Act; an injunction and attorneys fees for Unfair Business practices, as well as claims for slander of title; abuse of process, civil theft, and conversion.Contact Us: MortgageReductionLaw.com

The securitization argument a year later

SEPARATION OF DEED OF TRUST FROM NOTE: Bellistri Opinion

Posted on April 28, 2010 by Neil Garfield

There is a lot of conflicting opinions about this. My opinion is that the confusion arises not from the law, not from application of the law and not from what is written on the note or deed of Trust. If you look at the Bellistri Missouri case the issue is well settled. And the problem is not what is written, it is what is assumed to be written. The Bellistri case, 284SW 3d 619, (Missouri Appeal, cert. reportedly denied) coupled with its quote from Restatement 3rd is simple: put one name on the note and another on the DOT as beneficiary (particularly when the beneficiary is MERS and therefore an undisclosed principal) and you have direct evidence that the intention of the parties was to separate the note from the mortgage. The burden of proof thus shifts to the alleged creditor.

Conflict comes not from the law or the wording on the instruments but from the inherent question of “why would anyone want to do that?” There are of course many answers to that question in a securitized mortgage context. But it is the existence of the question that causes people to lean toward the idea that no reasonable person would have intended that and to assume that the parties, including the borrower, would never have intended WHAT WAS WRITTEN.

I think the point of the Bellistri case is simple: factually, the note and DOT are split and according to the Restatement 3rd, they can never be put back together again. The note, while still enforceable as an instrument by itself, is no longer secured by an encumbrance on the property. The “mistake” is that of the drafter of the instruments. They want to say, much later in time, what we NOW mean is that the beneficiary is X, who is not the payee on the note,, but X has received an assignment of the note. Thus NOW the beneficiary and the payee are the same which means we can foreclose.

So the question put to the Judge is can a note and security instrument, initially made out to two different parties be LATER joined and if so, what does that mean for enforcement. My first comment is that once you have established that facially the note and DOT were split, your prima facie case is met and the burden goes to the “lender” to prove they are the creditor along with a whole bunch of other things that are not unlike the elements of proving up a lost or destroyed note. You can’t just say it happened. You must explain and prove HOW it happened.

But the simple answer to the question as per the Restatement 3rd, is “NO.” The reason why they cannot be joined later is not just because Restatement 3rd says so, it is the reason Restatement 3rd says that, to wit: if you allowed, particularly in a non-judicial setting, parties not named on the note and not named as beneficiary to later act because of a claim as being both, you are introducing uncertainty into the marketplace which is the precise reason we have the law of contracts, property records and such. The moral hazard is raised from possibility to near certainty when you KNOW from the beginning that the payee and the beneficiary are two different parties and the beneficiary is not the real party so the knowledge includes, from the beginning, that there is at least one additional undisclosed party.

Let’s take the simplest example we can given the complexity of securitized residential mortgages. ABC is named the Payee on the note. MERS is named the beneficiary. MERS obviously has some understanding with a third party DEF not to make a claim on the loan (according to their website). So we must presume that they have that understanding and that maybe it is in writing in some general type of contract which was neither disclosed nor revealed to exist at the time of the closing with the borrower. DEF defaults in its payment obligations to MERS. MERS now says we refuse to perform under our contract with DEF. Borrower knows nothing of DEF nor of DEF’s payment default to MERS. Borrower pays the note in full to ABC. ABC returns the note as paid in full. Borrower wants a release and reconveyance (satisfaction) so the title record is clear.

Now it MIGHT be that DEF=ABC. But we don’t know that. So for purposes of your case, you MUST assume that DEF is simply an undisclosed third party. Borrower asks MERS for the release and reconveyance.  MERS refuses because it wasn’t paid by DEF and because it has no idea whether you paid the right person. With MERS refusing to execute a document releasing the lien, Borrower now has a defect in title that is unmarketable.

Borrower files a quiet title suit against MERS. MERS says it was named as beneficiary but that the DOT clearly states it serves only as nominee and therefore has no power to do anything. Now you have, on record, that the beneficiary is not MERS but the undisclosed third party DEF. The court MIGHT grant the final judgment, but it would then be adjudicating the rights of other parties who are not present in court, thus leaving the title clouded and possibly still unmarketable.

Another possibility is that the Court would inquire or allow discovery to allow the identification of DEF. Assuming MERS wishes to comply, there is still a problem. Data entry is NOT performed by MERS employees. Data entry is performed by “members” with passwords and user ID’s. Thus all MERS can say is that at a particular point in time MERS computer records show DEF, which was assigned to ABC or perhaps yet another party. The assignment is executed by Jane Jones as “limited signing officer” for MERS. MERS can’t say they know Jane Jones or anything about her because she doesn’t work for MERS. Therefore the only competent evidence from MERS is the data in fields populated by unknown sources of data input, and references to documents that were never seen or kept by MERS. The evidence from MERS thus has little or no probative value.

So now the Court or borrower goes to DEF and says “Who is Jane Jones?” DEF replies they don’t know because the assignment document was prepared by a foreclosure processing firm in Jacksonville, Florida named DOCX. DOCX has no contract with ABC or DEF or MERS. They were just following orders from yet a fourth party who is unidentified, and whose instructions were relayed through a fifth firm that serves as the correspondent or document manager once the loan goes into foreclosure (perhaps ordered by the servicer, BAC).

Thus the reason that a note and DOT can never be joined at any time other than the creation of those documents and executed contemporaneously with the funding of the obligation is that the contract and its performance is not based upon a condition subsequent (because such a condition would render the contract inchoate until the condition subsequent arrived or which would extinguish the obligation, note and mortgage). For there to be enforceability there must be certainty in the contract. Certainty can only be achieved if the terms and parties who are expected to perform are identified with sufficient clarity that any reasonable person would say they are known.

A borrower who signs papers without having a known party who is required by law to execute a satisfaction (release and reconveyance) has in effect executed documentation without a counterparty. The document is therefore void. Since the document (note, DOT, etc.) is only evidence of the obligation that arose because the borrower did in fact receive a benefit from the funding of the loan, the obligation survives while the note and/or DOT do not. However, in order to achieve certainty in the marketplace, the obligation is not secured unless and until some party identifies itself as the creditor and establishes a subsequent encumbrance through judgment lien, equitable or constructive trust or some other means.

Such a creditor action would be subject to rigorous requirements of pleading and proof. In the context of a securitized residential mortgage, the creditor can only be the party(ies) who advanced actual money, from which money the borrower’s loan was funded. In the context of mortgage-backed securities, a creditor who pleads that he expected a secured loan, must also plead all the documents and transactions that gave rise to advancing the money. This would mean that the creditor would be required to disclose and account for credit enhancements, insurance, credit default swaps, over-collateralization, cross-collateralization, and payments received from all sources pursuant to the terms under which the creditor advanced said funds.

Those terms are included in the prospectus and bond indenture which incorporate the pooling and service agreement, Depositor Agreement, Assignment and Assumption Agreements etc. In other words, the actual terms upon which the creditor advanced money were different from the actual terms accepted by the borrower. A court in equity would thus be required to allocate equity and liability for the various unpaid and paid obligations of multiple parties whose existence was unknown to borrower at the time of the loan closing, and whose existence even now would be at best dimly understood by the borrower or any other person who was not extremely well-versed in the securitization of credit.

linda green robo signer notary fraud complaint

If Linda Green or any of the other docx companies signed any of your assignments or substitution of trustee this might be your complaint:

mccandlessrobosignercomplaintlindagreenrobo signer

Timothy L. McCandless, Esq. SBN 147715

LAW OFFICES OF TIMOTHY L. MCCANDLESS

1881 Business Center Drive, Ste. 9A

San Bernardino, CA 92392

Tel:  909/890-9192

Fax: 909/382-9956

Attorney for Plaintiffs

 

SUPERIOR COURT OF THE STATE OF CALIFORNIA

 

COUNTY OF ____________

___________________________________,

And ROES 1 through 5,000,

Plaintiff,

v.

SAND CANYON CORPORATION f/k/a OPTION ONE MORTGAGE CORPORATION; AMERICAN HOME MORTGAGE SERVICES, INC.; WELLS FARGO BANK, N.A., as Trustee for SOUNDVIEW HOME LOAN TRUST 2007-OPT2; DOCX, LLC; and PREMIER TRUST DEED SERVICES and all persons unknown claiming any legal or  equitable right, title, estate, lien, or interest  in the property described in the complaint adverse to Plaintiff’s title, or any cloud on Plaintiff’s  title thereto, Does 1 through 10, Inclusive,

Defendants.

CASE NO:

FIRST AMENDED COMPLAINT

FOR QUIET TITLE, DECLARATORY RELIEF, TEMPORARY RESTRAINING ORDER, PRELIMINARY INJUNTION AND PERMANENT INJUNCTION, CANCELATION OF INSTRUMENT AND FOR DAMAGES ARISING FROM:

SLANDER OF TITLE; TORTUOUS

VIOLATION OF STATUTE [Penal

Code § 470(b) – (d); NOTARY FRAUD;

///

///

///

///

Plaintiffs ___________________________ allege herein as follows:

GENERAL ALLEGATIONS

            1.         Plaintiffs ___________ (hereinafter individually and collectively referred to as “___________”), were and at all times herein mentioned are,  residents of the County of _________, State of California and the lawful owner of a parcel of real property commonly known as: _________________, California _______ and the legal description is:

Parcel No. 1:

A.P.N. No. _________ (hereinafter “Subject Property”).

2.         At all times herein mentioned, SAND CANYON CORPORATION f/k/a OPTION ONE MORTGAGE CORPORATION (hereinafter SAND CANYON”), is and was, a corporation existing by virtue of the laws of the State of California and claims an interest adverse to the right, title and interests of Plaintiff in the Subject Property.

3.         At all times herein mentioned, Defendant AMERICAN HOME MORTGAGE SERVICES, INC. (hereinafter “AMERICAN”), is and was, a corporation existing by virtue of the laws of the State of Delaware, and at all times herein mentioned was conducting ongoing business in the State of California.

4.         At all times herein mentioned, Defendant WELLS FARGO BANK, N.A., as Trustee for SOUNDVIEW HOME LOAN TRUST 2007-OPT2 (hereinafter referred to as “WELLS FARGO”), is and was, a member of the National Banking Association and makes an adverse claim to the Plaintiff MADRIDS’ right, title and interest in the Subject Property.

5.         At all times herein mentioned, Defendant DOCX, L.L.C. (hereinafter “DOCX”), is and was, a limited liability company existing by virtue of the laws of the State of Georgia, and a subsidiary of Lender Processing Services, Inc., a Delaware corporation.

6.         At all times herein mentioned, __________________, was a company existing by virtue of its relationship as a subsidiary of __________________.

7.         Plaintiffs are ignorant of the true names and capacities of Defendants sued herein as DOES I through 10, inclusive, and therefore sues these Defendants by such fictitious names and all persons unknown claiming any legal or equitable right, title, estate, lien, or interest in the property described in the complaint adverse to Plaintiffs’ title, or any cloud on Plaintiffs’ title thereto. Plaintiffs will amend this complaint as required to allege said Doe Defendants’ true names and capacities when such have been fully ascertained. Plaintiffs further allege that Plaintiffs designated as ROES 1 through 5,000, are Plaintiffs who share a commonality with the same Defendants, and as the Plaintiffs listed herein.

8.         Plaintiffs are informed and believe and thereon allege that at all times herein mentioned, Defendants, and each of them, were the agent and employee of each of the remaining Defendants.

9.         Plaintiffs allege that each and every defendants, and each of them, allege herein ratified the conduct of each and every other Defendant.

10.       Plaintiffs allege that at all times said Defendants, and each of them, were acting within the purpose and scope of such agency and employment.

11.       Plaintiffs are informed and believe and thereupon allege that circa July 2004, DOCX was formed with the specific intent of manufacturing fraudulent documents in order create the false impression that various entities obtained valid, recordable interests in real

properties, when in fact they actually maintained no lawful interest in said properties.

12.       Plaintiffs are informed and believe and thereupon allege that as a regular and ongoing part of the business of Defendant DOCX was to have persons sitting around a table signing names as quickly as possible, so that each person executing documents would sign approximately 2,500 documents per day. Although the persons signing the documents claimed to be a vice president of a particular bank of that document, in fact, the party signing the name was not the person named on the document, as such the signature was a forgery, that the name of the person claiming to be a vice president of a particular financial institution was not a “vice president”, did not have any prior training in finance, never worked for the company they allegedly purported to be a vice president of, and were alleged to be a vice president simultaneously with as many as twenty different banks and/or lending institutions.

13.       Plaintiffs are informed and believe and thereupon allege that the actual signatories of the instruments set forth in Paragraph 12 herein, were intended to and were fraudulently notarized by a variety of notaries in the offices of DOCX in Alpharetta, GA.

14.       Plaintiffs are informed and believe and thereupon allege that for all purposes the intent of Defendant DOCX was to intentionally create fraudulent documents, with forged signatures, so that said documents could be recorded in the Offices of County Recorders through the United States of America, knowing that such documents would forgeries, contained false information, and that the recordation of such documents would affect an interest in real property in violation of law.

15.       Plaintiffs allege that on or about, ____________, that they conveyed a first deed of  trust (hereinafter “DEED”) in favor of Option One Mortgage, Inc. with an interest of

approximately $_________________.

16.       Plaintiffs are informed and believe and thereupon allege that Option One Mortgage sold interest in the aforementioned DEED to unknown parties as a derivative security, who then repeatedly resold their respective interests, if any, in said DEED on at least six different occasions.

17.       Plaintiffs allege that pursuant to California Civil Code section 2932.5, an assignee may effectuate the power of sale provided the assignment is properly acknowledged and recorded. Plaintiffs further allege that due to acts and/or omissions of Defendants, and each of them, that none of the named Defendants herein are holders in due course and do not maintain an interest in the Subject Property, including but, not limited to: there are no lawful records connecting Defendants to this property other that Sand Canyon Corporation f/k/a Option One Mortgage Corporation, and the interest of Sand Canyon Corporation f/k/a Option One Mortgage Corporation was long ago sold-off to unrelated third parties for which there is no proper “paper trail” to establish the true holder in due course. Plaintiffs allege that as will be seen hereinafter that Defendants, and each of them, resorted to forged instruments in an attempt to create the appearance that Defendant Wells Fargo Bank, N.A. as Trustee of the Soundview Home Loan Trust 2007-OPT2.

18.       Plaintiffs allege that due to certain acts and/or omissions once the DEED was “assigned” to various parties the DEED was detrimentally affected in a number ways, including but, not limited to: that the power of sale inherent in the DEED was severed, because the subsequent parties were no longer holders in due course as a matter of law.

19.       On April 3, 2011, on the national program “60 Minutes”, two former employees of DOCX made admissions which entirely support the allegations set forth in Paragraphs 12 and 13, herein. During said program, former employee, Chris Pendley [sic] stated that he personally drafted the name of “Linda Green” on thousands and thousands of assignments, although he was not Linda Green, that he was signing in excess of 2,500 documents per day, and that he was paid the sum of ten ($10.00) per hour to forge the name of “Linda Green” and that he made no inspection of any documents to determine whether the execution of the assignment was lawful, had no training to make an inspection of documents to determine if the assignment was lawful, and was told by his superiors that his execution of the name Linda Green was lawful.

20.       On April 3, 2011, Linda Green, a former employee of DOCX, appeared on the aforementioned “60 Minutes” program and stated that she worked in the mailroom of DOCX and

eventually signed some documents, that although she was listed as a vice president of several

companies, that she had no connection with those companies, and that she was aware that her signature was being used by several other persons on assignments because her name was short and easy to spell.

21.       Plaintiffs are informed and believe and thereupon allege that Linda Green, acting in her capacity as an employee of DOCX allowed her name to forged upon literally thousands of purported assignments, although Linda Green never executed those assignments, never inspected those assignments, and that DOCX simply listed that Linda Green was a vice president at various

Banks and lending institutions, however, Linda Green was not lawfully a vice president, and the assertion that Linda Green was a vice president was an artifice. Plaintiffs further allege that Linda Green’s name fraudulent appeared on documents for the following institutions: 11-11-2004 & 06-22-2006 Vice President, Loan Documentation, Wells Fargo Bank, N.A., successor by merger to Wells Fargo Home Mortgage, Inc.; 08-11-2008 & 08-14-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 08-27-2008 Vice President, American Home Mortgage Servicing as successor-in-interest to Option One Mortgage Corporation; 09-19-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 09-30-2008;

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home

Mortgage Acceptance, Inc.; 09-30-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 10-08-2009 Vice President & Asst. Secretary, American Home Mortgage Servicing, Inc., as servicer for Ameriquest Mortgage Corporation; 10-16-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 10-17-2008, 11-20-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American

Brokers Conduit; 11-20-2008 Vice President, Option One Mortgage Corporation; 12-08-2008

Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 12-15-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for HLB Mortgage; 12-24-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 12-26-2008 Vice President, American Home Mortgage Servicing, Inc.; 01-13-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for Family Lending Services, Inc.; 01-15-2009

Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for

American Home Mortgage Acceptance, Inc.; 02-03-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 02-05-2009 Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for

American Home Mortgage Acceptance, Inc.; 02-24-2009 Vice President, American Home Mortgage Servicing, Inc. as successor-in-interest to Option One Mortgage Corporation;

02-25-2009 Vice President, Bank of America, N.A.; 02-27-2009 Vice President, American Home Mortgage Servicing, Inc., as successor-in-interest to Option One Mortgage Corporation;

03-02-2009 Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage; 03-04-2009 Vice President, Argent Mortgage Company, LLC by Citi Residential Lending Inc., attorney-in-fact; 03-06-2009 & 03-20-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home

Mortgage Acceptance, Inc.; 04-15-2009, 04-17-2009, 04-20-2009 Vice President, Bank of America, N.A.; 05-11-2009, 07-06-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 07-14-2009 Vice

President, Bank of America, N.A.; 07-15-2009 Vice President & Asst. Secretary, American

Home Mortgage Servicing, Inc., as servicer for Deutsche Bank National Trust Company, as trustee for, Ameriquest Mortgage Securities, Inc. asset-backed pass through certificates, series 2004-R7, under the pooling and servicing agreement dated July 1, 2004; 07-30-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home

Mortgage Acceptance, Inc.; 08-12-2009 Vice President, Sand Canyon Corporation f/k/a Option One Mortgage Corporation; 08-28-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 09-03-2009

Asst. Vice President, Sand Canyon Corporation formerly known as Option One Mortgage

Corporation; 09-03-2009 Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage; 09-04-2009 Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage;

09-08-2009 Vice President, Bank of America, N.A.; 09-21-2009 & 09-22-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc. Plaintiffs further allege that Linda Green was never lawfully the vice president of any entity, more particularly the foregoing listed entities.

22.       Plaintiffs are informed and believe and thereupon allege that Defendant DOCX was a continuing criminal enterprise whose sole function was to create and forge fraudulent assignments which would purport to convey interests in real property and the entities listed in Paragraph 21 hereinabove, were complicate in Defendants’ fraud.

23.       Plaintiffs are informed and believe from beginning circa 2007 and continuing until sometime in 2010, DOCX produced thousands upon thousands of false and fraudulent assignments which were recorded in the Offices of the County Recorders of the State of

California, and several other States in the United States of America as well.

24.       Plaintiffs are informed and believe and thereupon allege that during the “60 Minutes” program on April 3, 2011, another former DOCX employee, Savonna Krite [sic] acted as a notary public and notarized that the signatures of Linda Green and others, were valid, however, she admitted that the notarizations were not that of Linda Green. Savonna Krite [sic] further admitted that she was told by officers of DOCX that it was “alright” for her to notarize signatures as being valid. Savonna Krite [sic] also admitted as of the program that she now understands that her notarizations of said assignments were “not alright.”

25.       Plaintiffs are informed and believe and thereupon allege that because the entire company structure of DOCX was to manufacture forged assignments by the thousands per day, without any consideration whatsoever that the information contained on those assignments was valid, and that the notarizations were in fact fraudulent, that no reasonable expectation can be made that any of the assignments executed by DOCX employees were or are valid.

26.       Plaintiffs are informed and believe and thereupon allege that circa _______,

Defendants, and each of them, utilized the services of DOCX in order to manufacture a fraudulent assignment from Defendant AMERICAN to WELLS FARGO, because WELLS FARGO could not find documents which would demonstrate that it owned an interest in the Plaintiffs’ subject property.

27.       Plaintiffs are informed and believe and thereupon allege that WELLS FARGO never had a lawful interest in the Plaintiffs’ subject property, either in its own capacity or as that as Trustee for the SOUNDVIEW HOME LOAN TRUST 2007-OPT2.

28.       Plaintiffs allege that they fully tendered all mortgage payments which were

lawfully due under the DEED, and that they are not in default of their payments, having lawfully

tendered all amounts due and owing.

29.       Plaintiffs allege that WELLS FARGO made demands for payment as against the DEED, however, Plaintiffs allege that WELLS FARGO was not a lawful holder in due course, that SOUNDVIEW HOME LOAN TRUST 2007-OPT2 was not a lawful holder in due course, and that neither party had any lawful right, title and interest in the DEED.

30.       Plaintiffs are informed and believe and thereupon allege that on or about, _______________, Defendant DOCX at the request of Defendants, and each of them, forged an instrument (hereinafter “FORGED ASSIGNMENT”) with the name “Linda Green” which was notarized by

“Ellis Simmons.”

31.       Plaintiffs are informed and believe and thereupon allege that on or about, _______________, an unknown employee of DOCX, in the course and scope of their employment, signed the name “Linda Green” and that such document had a notary stamp placed upon the FORGED ASSIGNMENT which purported to be lawfully notarized by “Ellis Simmons.”

32.       Plaintiffs are informed and believe and thereupon allege that the FORGED

ASSIGNMENT was then sent by DOCX through the United States Postal Service or transmitted by facsimile over the telephone and telegraph wires of the United States of America to Defendants, and each of them, in order that such FORGED ASSIGNMENT would be recorded in the Office of the County Recorder of the County of _______________.

32.       Plaintiffs are informed and believe and thereupon allege that on or about _______________, that Defendants, and each of them, their employees and/or agents, caused the FORGED ASSIGNMENT which unlawfully affected Plaintiffs’ subject property to be recorded in the Office of the Country Recorder of the County of _______________ as Instrument No. _______________. A true and correct copy of the assignment set forth in Paragraphs 30 – 31, is attached hereto as Exhibit “A”, and is incorporated by this reference.

33.       Plaintiffs are informed and believe and thereupon allege that the sole claim of Defendants, and each of them, as to their right, title and/or interest in the Plaintiffs’ Subject Property is the  FORGED ASSIGNMENT.

34.       Plaintiffs allege that the FORGED ASSIGNMENT as a matter of law is void and that it did not constitute a conveyance of an interest to Defendants, or to anyone at all, and that the FORGED ASSIGNMENT is a legal nullity.

35.       Plaintiffs allege that Defendants, and each of them, are presently relying upon the FORGED ASSIGNMENT and are knowingly and intentionally prosecuting a non-judicial foreclosure based solely upon the recordation of the FORGED ASSIGNMENT, necessitating the instant action.

FIRST CLAIM FOR RELIEF

(Slander of Title As Against All Defendants)

            36.       Plaintiffs incorporate Paragraphs 1 through 35 of the General Allegations as though such have been fully set forth herein.

37.       Plaintiffs allege that on or about, _______________, Defendants, and each of them, in some measure actively, directly, indirectly, openly and secretly contributed to the preparation of the FORGED ASSIGNMENT and the recordation of said Instrument in the Official Records of the Office of the County Recorder of _______________ County.

38.       Plaintiffs allege that the recordation of the FORGED ASSIGNMENT, by Defendants and each of them, rendered Plaintiffs’ title to the Subject Property as unmarketable.

39.       Plaintiffs allege that Defendants, and each of them, recorded the FORGED

ASSIGNMENT without privilege, knowledge and/or consent of Plaintiffs, the information contained in said FORGED ASSIGNMENT is false in that no lawful conveyance ever existed between the parties thereto, and said FORGED ASSIGNMENT when recorded published the information therein which disparaged Plaintiffs’ title as would lead a reasonable man to falsely assume that Defendants, and each of them, in some measure actually maintained some right, title and interest in Plaintiffs’ Subject Property, whereas, some of the information contained in the FORGED ASSIGNMENT is false. A true and correct copy of the FORGED ASSIGNMENT  is attached hereto as Exhibit “A”, and is incorporated by this reference.

40.       Plaintiffs allege that they actually and proximately suffered damages due to the planning, preparation and recordation of the FORGED ASSIGNMENT in an amount the totality of which has not been fully ascertained, but in no event less than the jurisdictional limitations of this court.

41.       Plaintiffs allege that the slander of the Subject Properties title was intentional,

fraudulent, malicious, oppressive and burdensome and deserving the imposition of punitive

damages in an amount sufficient that such conduct will not be repeated.

SECOND CAUSE OF ACTION

(Tortuous Violation of Statute Penal Code §§ 470(b), 470(d)

As Against Sand Canyon Corporation f/k/a Option One Mortgage Corporation;

American Home Mortgage Services, Inc.; Wells Fargo Bank, N.A., as Trustee

for Soundview Home Loan Trust 2007-OPT2; DOCX, LLC)

42.       Plaintiffs re-allege and incorporate Paragraphs 1 through 35 of the General Allegations and Paragraphs 36 through 41 of the First Cause of Action as though such have been fully set forth herein.

43.       Plaintiffs are informed and believe and thereupon allege that circa July 2004, Defendants, and each of them, contrived a scheme to replace missing documents which purported to assert interests in real properties through-out the United States of America.

44.       Plaintiffs are informed and believe and thereupon allege that by August 2008, Defendants, and each of them, had in some measure participated in the request for production of forged instruments from DOCX, as well as other document forgery mills, the purpose of which was to effect title to real properties through-out the United States of America.

45.       Plaintiffs are informed and believe and thereupon allege that on or about, August 8, 2008, the agents and/or employees of Defendants and each of them, knowingly and intentionally with the intent to defraud Plaintiffs’ interest in the Subject Property, prepared the FORGED ASSIGNMENT and caused said FORGED ASSIGNMENT to be recorded in the Official Records of the Office of the Recorder of the County of _______________ as Instrument No. _______________. A true and correct copy of the FORGED ASSIGNMENT, is attached hereto as Exhibit “A”, and is incorporated by this reference.

46.       Plaintiffs allege that Defendants, and each of them, tortuously forged the

signature of Linda Green, on the FORGED ASSIGNMENT, with the intent to defraud Plaintiffs, and such forgery directly affected Plaintiffs’ interest in the Subject Property in tortuous violation of California Penal Code sections 470(b) and 470(d).

47.       Plaintiffs allege that they actually and proximately suffered damages due to the planning, preparation and recordation of the FORGED ASSIGNMENT in an amount the totality of which has not been fully ascertained, but in no event less than the jurisdictional limitations of this court.

48.       Plaintiffs allege that the tortuous violation of Penal Code sections 470(b) and 470(d), by and through the preparation of the FORGED ASSIGNMENT, and subsequent recordation thereof was in willful disregard for Plaintiffs’ right, title and interest in the Subject Property,  intentional, fraudulent, malicious, oppressive and burdensome and deserving the imposition of punitive damages in an amount sufficient that such conduct will not be repeated.

THIRD CAUSE OF ACTION

(Notary Fraud  As Against DOCX, LLC and Defendants 1 through 10, Inclusive)

49.       Plaintiffs re-allege and incorporate Paragraphs 1 through 35 of the General Allegations, Paragraphs 35 through 41 and Paragraphs 42 through 48 of  the First and Second Causes of Action as though such have been fully set forth herein.

50.       Plaintiffs are informed and believe and thereupon allege that circa July 2004, Defendants, and each of them, contrived a scheme to replace missing documents which purported to assert interests in real properties through-out the United States of America.

51.       Plaintiffs are informed and believe and thereupon allege that by August 2008, Defendants, and each of them, had in some measure participated in the request for production of forged instruments from DOCX, as well as other document forgery mills, the purpose of which

was to effect title to real properties through-out the United States of America.

52.       Plaintiffs are informed and believe and thereupon allege that on or about, _____________, the agents and/or employees of Defendants and each of them, knowingly and

intentionally with the intent to defraud Plaintiffs’ interest in the Subject Property, prepared the FORGED ASSIGNMENT and caused said FORGED ASSIGNMENT to be recorded in the Official Records of the Office of the Recorder of the County of _______________ as Instrument No. _______________. A true and correct copy of the FORGED ASSIGNMENT, is attached hereto as Exhibit “A”, and is incorporated by this reference.

53.       Plaintiffs are informed and believe and thereupon allege that the FORGED ASSIGNMENT contained knowingly false statements including, but not limited to: that Wells Fargo Bank, N.A., as Trustee for Soundview Home Loan Trust 2007-OPT2, that Linda Green was a vice president of American Home Mortgage Services, Inc., and that Ellis Simmons lawfully notarized the FORGED ASSIGNMENT.

54.       Plaintiffs allege that they actually and proximately suffered damages due to the planning, preparation and recordation of the FORGED ASSIGNMENT in an amount the totality of which has not been fully ascertained, but in no event less than the jurisdictional limitations of this court.

55.       Plaintiffs allege that Defendants, and each of them, committed notary fraud by and through the preparation and notarization of the FORGED ASSIGNMENT, and subsequent recordation thereof was in willful disregard for Plaintiffs’ right, title and interest in the Subject Property, intentional, fraudulent, malicious, oppressive and burdensome and deserving the imposition of punitive damages in an amount sufficient that such conduct will not be repeated.

FOURTH CAUSE OF ACTION

(Cancellation of Instrument As Against Wells Fargo Bank, N.A. as Trustee for

  Soundview Home Loan Trust 2007-OPT2 and Defendants 1 through 10, Inclusive)

56.       Plaintiffs re-allege and incorporate Paragraphs 1 through 35 of the General

Allegations, Paragraphs 35 through 41 and Paragraphs 42 through 48 and Paragraphs 49 through 55 of  the First, Second and Third Causes of Action as though such have been fully set forth herein.

57.       Plaintiffs allege that a FORGED ASSIGNMENT was recorded in the Official

Records of the Office of the County Recorder for the County of _______________ as Instrument No. _______________.

58.       Plaintiffs seek an Order of the above-entitled court cancelling Instrument No. _______________, in as much as said document contains false information and affects Plaintiffs’ right, title and interest in the Subject Property.

FIFTH CAUSE OF ACTION

(Quiet Title As Against All Defendants)

59.       Plaintiffs re-allege and incorporate Paragraphs 1 through 35 of the General Allegations, Paragraphs 35 through 41 and Paragraphs 42 through 48 and Paragraphs 49 through 55 of  the First, Second and Third Causes of Action as though such have been fully set forth herein.

60.       For all the facts alleged herein, Plaintiffs seek an Order quieting title as of

_______________.

SIXTH CAUSE OF ACTION

(Declaratory Relief As Against All Defendants)

61.       An actual controversy has arisen.

62.       The parties desire a judicial determine that they may ascertain their respective

right, title and interest in the Subject Property.

63.       A judicial determination is necessary that the parties may  right, title and interest in the Subject Property.

64.       Plaintiffs allege that as a regular and ongoing part of the business of Defendant

DOCX was to have persons sitting around a table signing names as quickly as possible, so that

each person executing documents would sign approximately 2,500 documents per day. Although the persons signing the documents claimed to be a vice president of a particular bank of that document, in fact, the party signing the name was not the person named on the document, as such the signature was a forgery, that the name of the person claiming to be a vice president of a particular financial institution was not a “vice president”, did not have any prior training in finance, never worked for the company they allegedly purported to be a vice president of, and were alleged to be a vice president simultaneously with as many as twenty different banks and/or lending institutions, that the actual signatories of the instruments set forth in Paragraph 12 herein, were intended to and were fraudulently notarized by a variety of notaries in the offices of DOCX in Alpharetta, Georgia,  that for all purposes the intent of Defendant DOCX was to intentionally create fraudulent documents, with forged signatures, so that said documents could be recorded in the Offices of County Recorders through the United States of America, knowing that such documents would forgeries, contained false information, and that the recordation of such documents would affect an interest in real property in violation of law, that on or about, May 7, 2007, that they conveyed a first deed of trust (hereinafter “DEED”) in favor of Option One Mortgage, Inc. with an interest of approximately $815,000, that Option One Mortgage sold interest in the aforementioned DEED to unknown parties as a derivative security, who then repeatedly resold their respective interests, if any, in said DEED on at least six different occasions, that pursuant to California Civil Code section 2932.5, an assignee may effectuate the power of sale provided the assignment is properly acknowledged and recorded. Plaintiffs further allege that due to acts and/or omissions of Defendants, and each of them, that none of the named Defendants herein are holders in due course and do not maintain an interest in the Subject Property, including but, not limited to: there are no lawful records connecting Defendants to this property other that Sand Canyon Corporation f/k/a Option One Mortgage Corporation, and the interest of Sand Canyon Corporation f/k/a Option One Mortgage Corporation was long ago sold-off to unrelated third parties for which there is no proper “paper trail” to establish the true holder in due course. Plaintiffs allege that as will be seen hereinafter that Defendants, and each of them, resorted to forged instruments in an attempt to create the appearance that Defendant Wells Fargo Bank, N.A. as Trustee of the Soundview Home Loan Trust 2007-OPT2, that due to certain acts and/or omissions once the DEED was “assigned” to various parties the DEED was detrimentally affected in a number ways, including but, not limited to: that the power of sale inherent in the DEED was severed, because the subsequent parties were no longer holders in due course as a matter of law,  that on April 3, 2011, on the national program “60 Minutes”, two former employees of DOCX made admissions which entirely support the allegations set forth in Paragraphs 12 and 13, herein. During said program, former employee, Chris Pendley [sic] stated that he personally drafted the name of “Linda Green” on thousands and thousands of assignments, although he was not Linda Green, that he was signing in excess of 2,500 documents per day, and that he was paid the sum of ten ($10.00) per hour to forge the name of “Linda Green” and that he made no inspection of any documents to determine whether the execution of the assignment was lawful, had no training to make an inspection of documents to determine if the assignment was lawful, and was told by his superiors that his execution of the name Linda Green was lawful, on April 3, 2011, Linda Green, a former employee of DOCX, appeared on the aforementioned “60 Minutes” program and stated that she worked in the mailroom of DOCX and eventually signed some documents, that although she was listed as a vice president of several companies, that she had no connection with those companies, and that she was aware that her signature was being used by several other persons on assignments because her name was short and easy to spell, that Linda Green, acting in her capacity as an employee of DOCX allowed her name to forged upon literally thousands of purported assignments, although Linda Green never executed those assignments, never inspected those assignments, and that DOCX simply listed that Linda Green was a vice president at various Banks and lending institutions, however, Linda Green was not lawfully a vice president, and the assertion that Linda Green was a vice president was an artifice. Plaintiffs further allege that Linda Green’s name fraudulent appeared on documents for the following institutions: 11-11-2004 & 06-22-2006 Vice President, Loan Documentation, Wells Fargo Bank, N.A., successor by merger to Wells Fargo Home Mortgage, Inc.; 08-11-2008 & 08-14-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 08-27-2008 Vice President, American Home Mortgage Servicing as successor-in-interest to Option One Mortgage Corporation; 09-19-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 09-30-2008; Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 09-30-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 10-08-2009 Vice President & Asst. Secretary, American Home Mortgage Servicing, Inc., as servicer for Ameriquest Mortgage Corporation; 10-16-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 10-17-2008, 11-20-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 11-20-2008 Vice President, Option One Mortgage Corporation; 12-08-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 12-15-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for HLB Mortgage; 12-24-2008 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 12-26-2008 Vice President, American Home Mortgage Servicing, Inc.; 01-13-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for Family Lending Services, Inc.; 01-15-2009 Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage Acceptance, Inc.; 02-03-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Brokers Conduit; 02-05-2009 Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for

American Home Mortgage Acceptance, Inc.; 02-24-2009 Vice President, American Home Mortgage Servicing, Inc. as successor-in-interest to Option One Mortgage Corporation;

02-25-2009 Vice President, Bank of America, N.A.; 02-27-2009 Vice President, American Home Mortgage Servicing, Inc., as successor-in-interest to Option One Mortgage Corporation;

03-02-2009 Vice President, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage; 03-04-2009 Vice President, Argent Mortgage Company, LLC by Citi Residential Lending Inc., attorney-in-fact; 03-06-2009 & 03-20-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home

Mortgage Acceptance, Inc.; 04-15-2009, 04-17-2009, 04-20-2009 Vice President, Bank of America, N.A.; 05-11-2009, 07-06-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 07-14-2009 Vice

President, Bank of America, N.A.; 07-15-2009 Vice President & Asst. Secretary, American

Home Mortgage Servicing, Inc., as servicer for Deutsche Bank National Trust Company, as trustee for, Ameriquest Mortgage Securities, Inc. asset-backed pass through certificates, series 2004-R7, under the pooling and servicing agreement dated July 1, 2004; 07-30-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home

Mortgage Acceptance, Inc.; 08-12-2009 Vice President, Sand Canyon Corporation f/k/a Option One Mortgage Corporation; 08-28-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc.; 09-03-2009

Asst. Vice President, Sand Canyon Corporation formerly known as Option One Mortgage

Corporation; 09-03-2009 Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage; 09-04-2009 Asst. Secretary, Mortgage Electronic Registration Systems, Inc., acting solely as nominee for American Home Mortgage;

09-08-2009 Vice President, Bank of America, N.A.; 09-21-2009 & 09-22-2009 Vice President, Mortgage Electronic Registration Systems, Inc., as nominee for American Home Mortgage Acceptance, Inc. Plaintiffs further allege that Linda Green was never lawfully the vice president of any entity, more particularly the foregoing listed entities, that Defendant DOCX was a continuing criminal enterprise whose sole function was to create and forge fraudulent assignments which would purport to convey interests in real property and the entities listed in Paragraph 21 hereinabove, were complicate in Defendants’ fraud, that beginning circa 2007 and continuing until sometime in 2010, DOCX produced thousands upon thousands of false and fraudulent assignments which were recorded in the Offices of the County Recorders of the State of California, and several other States in the United States of America as well, allege that during the “60 Minutes” program on April 3, 2011, another former DOCX employee, Savonna Krite [sic] acted as a notary public and notarized that the signatures of Linda Green and others, were valid, however, she admitted that the notarizations were not that of Linda Green. Savonna Krite [sic] further admitted that she was told by officers of DOCX that it was “alright” for her to notarize signatures as being valid. Savonna Krite [sic] also admitted as of the program that she now understands that her notarizations of said assignments were “not alright,” that because the entire company structure of DOCX was to manufacture forged assignments by the thousands per day, without any consideration whatsoever that the information contained on those assignments was valid, and that the notarizations were in fact fraudulent, that no reasonable expectation can be made that any of the assignments executed by DOCX employees were or are valid, that circa July 2008, Defendants, and each of them, utilized the services of DOCX in order to manufacture a fraudulent assignment from Defendant AMERICAN to WELLS FARGO, because WELLS FARGO could not find documents which would demonstrate that it owned an interest in the Plaintiffs’ subject property, that WELLS FARGO never had a lawful interest in the Plaintiffs’ subject property, either in its own capacity or as that as Trustee for the SOUNDVIEW HOME LOAN TRUST 2007-OPT2, that they fully tendered all mortgage payments which were

lawfully due under the DEED, and that they are not in default of their payments, having lawfully

tendered all amounts due and owing, that WELLS FARGO made demands for payment as against the DEED, however, Plaintiffs allege that WELLS FARGO was not a lawful holder in due course, that SOUNDVIEW HOME LOAN TRUST 2007-OPT2 was not a lawful holder in due course, and that neither party had any lawful right, title and interest in the DEED, that on or about, _______________, Defendant DOCX at the request of Defendants, and each of them, forged an instrument (hereinafter “FORGED ASSIGNMENT”) with the name “Linda Green” which was notarized by “Ellis Simmons,” that on or about, _______________, an unknown employee of DOCX, in the course and scope of their employment, signed the name “Linda Green” and that such document had a notary stamp placed upon the FORGED ASSIGNMENT which purported to be lawfully notarized by “Ellis Simmons,” that the FORGED ASSIGNMENT was then sent by DOCX through the United States Postal Service or transmitted by facsimile over the telephone and telegraph wires of the United States of America to Defendants, and each of them, in order that such FORGED ASSIGNMENT would be recorded in the Office of the County Recorder of the County of _______________, that on or about _______________, that Defendants, and each of them, their employees and/or agents, caused the FORGED ASSIGNMENT which unlawfully affected Plaintiffs’ subject property to be recorded in the Office of the Country Recorder of the County of _______________ as Instrument No. _______________. A true and correct copy of the assignment set forth in Paragraphs 30 – 31, is attached hereto as Exhibit “A”, and is incorporated by this reference, that the sole claim of Defendants, and each of them, as to their right, title and/or interest in the Plaintiffs’ Subject Property is the  FORGED ASSIGNMENT, that the FORGED ASSIGNMENT as a matter of law is void and that it did not constitute a conveyance of an interest to Defendants, or to anyone at all, and that the FORGED ASSIGNMENT is a legal nullity, that Defendants, and each of them, are presently relying upon the FORGED ASSIGNMENT and are knowingly and intentionally prosecuting a non-judicial foreclosure based solely upon the recordation of the FORGED ASSIGNMENT, necessitating the instant action, and as such, the Defendants set forth herein have no right, title and interest in the Subject Property, whereas, Defendants contend that all of their acts and/or omissions were lawful and that Wells Fargo Bank, N.A. as Trustee of the Soundview Home Loan Trust 2007-OPT2.

WHEREAS, Plaintiffs Manuel A Madrid and Virginia J. Madrid pray for Judgment as follows:

FOR THE FIRST AND THIRD CAUSES OF ACTION:

1.         For an Order, restraining Defendants, and their agents, employees, officers, attorneys, and representatives from engaging in or performing any of the following acts: (i) proceeding with the non-judicial foreclosure without an Order of this court, (ii) offering, or advertising this property for sale and (ii) attempting to transfer title to this property and or (iii) holding any auction therefore;

2.         For general damages subject to proof at time of trial;

3.         For special damages subject to proof at time of trial;

4.         For punitive damages subject to proof at time of trial;

5.         For costs of suit herein;

6.         For reasonable attorney’s fees provided by contract or statute; and

7.         For such other and further relief as the court may deem just and proper.

FOR THE SECOND CAUSE OF ACTION:

1.         For general damages according to proof at time of trial;

2.         For special damages according to proof at time of trial;

3.         For costs of suit incurred herein;

4.         For reasonable attorney’s fees provided by contract or statute; and

5.         For such other and further relief as the court may deem just and proper.

FOR THE FOURTH CAUSE OF ACTION:

1.         For an Order cancelling Instrument No. _______________, which was recorded on August in the

Office of the Country Recorder of the County of _______________;

2.         For costs of suit incurred herein;

3.         For reasonable attorney’s fees as provided by contract or statute; and

4.         For such other and further relief as the court may deem just and proper.

FOR THE FIFTH CAUSE OF ACTION:

1.         For an Order quieting title to the Subject Property from _______________;

2.         For costs of suit incurred herein;

3.         For reasonable attorney’s fees subject to proof at time of trial; and

4.         For such other and further relief as the court may deem just and proper.

FOR THE SIXTH CAUSE OF ACTION:

1.         For a declaration that Defendants do not have a right, title and interest in the Subject Property;

2.         For costs of suit incurred herein;

3.         For reasonable attorney’s fees subject to proof at time of trial; and

4.         For such other and further relief as the court may deem just and proper.

Dated:  _______, 2011                                                LAW OFFICES OF

                                                                                    TIMOTHY L. MCCANDLESS

 

 

 

                                                                                    __________________________________

                                                                                          Timothy L. McCandless, Esq.,

Attorney for Plaintiffs

VERIFICATION

I, Timothy L. McCandless am the attorney of record for Plaintiffs in the above-entitled action. The Plaintiffs are either absent from the County of Los Angeles where my office is located, or is otherwise unable to verify this complaint, or the facts are within the knowledge of the undersigned. For this reason, I am making this verification.

I have read the foregoing Complaint and know of its contents. I am informed and believe the matters therein to be true, and on that ground, allege that the matters stated in it are true.  I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed at San Bernardino, California

DATED: __________, 2011

         ____________________________

                         Timothy L. McCandless, Esq.

THE GREAT SECURITIZATION SCAM AND THE GREAT RECESSION

By Neil Garfield

 

            Both the class action lawyers and the AG offices are looking for settlements that will cure the “foreclosure” problem. This is based upon the perceived benefit of getting the foreclosures either litigated or settled, SO THE “MARKET” CAN RESUME “FORWARD” MOTION. But what if the basic transaction was so defective as to be incapable of understanding, much less enforcement?  We ignore the fact that the basic transaction was a lie, that lies are not enforceable and while they could be modified by agreement into enforceable written instruments (completely absent from the current landscape) the inescapable fact is that in order to do so, you will need the signature of borrowers on loans that are based upon fair market values, reality and set-off for the damages inflicted on the homeowners by the Great Securitization Scam.

 

            So we start with the myth that there was a valid legal contract at origination, an assumption that upon examination by a paralegal, much less a first-year law student, is patently untrue.  Thus we proceed with the following ten (10) lies that form the foundation of our impotent financial and economic policies in the Great Recession triggered by the housing crisis:

  1. 1.       VALID MORTGAGE TRANSACTION: There was a loan of money, but not by either the payee, the mortgagee, the trustee or anyone else that is mentioned in the closing papers or the foreclosure papers filed anywhere. That is why the pretenders would rather play with the word “holder” than “creditor.”
  1. 2.       LEGAL MORTGAGE TRANSACTION: Even if the right parties were at the table, the transaction was illegal because of appraisal fraud, underwriting fraud, Securities Fraud and Servicing Fraud.
  1. 3.       LEGAL LOAN: Even if the right parties were at two different tables, the transaction was illegal because of ratings fraud, securities fraud, common law fraud, predatory loan practices and servicing fraud.
  1. 4.       KNOWN CREDITOR: Neither the investor who was the source of funds, nor the investment banker who only committed SOME of those funds to loan transactions, nor the borrower (homeowner) even knew of the existence of each other. After the “reconstituted” bogus mortgage pools that never existed in the first place, payments by insurance, credit de fault swaps, and federal  bailouts, it is at the very least a question of fact to determine the identity of the creditor at any given point in time — i.e., to whom is an obligation owed and how many parties have liability to pay on that transaction either as borrower, guarantors, insurers, or anything else? The dart board approach currently used in foreclosures and mortgage modifications, prepayments and refinancing has generally been frowned upon by the Courts.
  1. 5.       KNOWN OBLIGATION AMOUNT: The amount advanced by the Lender (investor in bogus mortgage bonds) was far in excess of that amount used by intermediaries to fund mortgages — the rest was used to create synthetic derivative trading devices and charge fees every step of the way. Part of the difference between the funding of the residential loans and the amount advanced by the lender (investor) is easily computed by applying the same formula used to compute a yield spread premium that was paid to mortgage brokers under the table. By obscuring the real nature of the loans in the mix that offered (sold forward without ownership by the investment bank with the intent of acquiring he mortgages later) a 6% return promised to an investor could result in a yield spread premium of perhaps 12% if the loan was toxic waste and the nominal rate was 18%. Thus a $900,000 investment was converted into a $300,000 loan with no hope of repayment based upon a wildly inflated appraisal. Payments by servicers, counterparties, guarantors, insurers and bailout agencies were neither credited to the investor nor to the obligation owed to that investor. Since there was no obligor other than the homeowner according to the documents creating the securitization scam infrastructure, the borrower was part of a transaction where he “borrowed” $900,000 but only received $300,000. Third party payments made under expressly and carefully written waivers of subrogation were not applied to the amount owed to the investor and therefore not applied to the amount owed by the borrower. The absence of this information makes the servicer “accounting” a farce.
  1. VALID ACCOUNTING BY ALL PARTIES: Continuing with the facts illuminated in the preceding paragraph, both mortgage closing documents and foreclosure documents are devoid of any reference to the dozens of transactions carried out in the name of, or under agency of, or as constructive trustee of the investor who as lender is obliged to account for the balance due after third party payments.