Harmon Taylor Newsletter 2 September A.D. 2011
Posted: September 2, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience | Tags: Bank of America, Foreclosure, Harmon Taylor, Legal Reality, Newsletter | Leave a comment2 September A.D. 2011
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Subject: | Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril |
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Date: | Thu, 01 Sep 2011 16:28:20 -0500 |
Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril
by Paul Kiel
ProPublica, Aug. 30, 2011, 5:46 p.m.
(Flickr: proimos)
This post has been updated to reflect Bank of America’s response.
The state of Nevada dramatically expanded its lawsuit against Bank of America today, turning the narrow case it filed late last year into a broadside that targets virtually all aspects of the bank’s mortgage operations. Bank of America has previously denied wrongdoing.
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. (You can read the suit here.)
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.”
The suit also weakens a separate, 2008 multistate settlement in which Countrywide promised to evaluate troubled homeowners for loan modifications.
Most broadly, Nevada’s action signals that the banks’ problems with home mortgages—the main cause of the financial crisis—continue to burden them and rattle investors. Bank of America, the nation’s largest bank and company that services mortgages, has seen its stock plunge about 40 percent since March, in part because of its mortgage liabilities. Nevada’s action won’t help.
Nevada’s attorney general charges that Bank of America and the now-defunct mortgage giant Countrywide acquired by the bank in 2008, deceived borrowers and investors at almost every stage of the process.
According to the suit, borrowers were duped into unaffordable loans and then victimized again through a misleading mortgage modification program that homeowners tried to use to avoid foreclosure. Finally, the suit alleges, the bank filed fraudulent documents to move forward with the foreclosures.
“Taken together and separately, [Bank of America’s] deceptive practices have resulted in an explosion of delinquencies and unauthorized and unnecessary foreclosures in the state of Nevada,” the suit alleges.
The state’s suit had previously been confined to the modification issue. At that time, Bank of America also said homeowners would be best served not through litigation but through reaching a multistate settlement that would “broaden programs for homeowners who need assistance.”
By expanding the suit, Nevada’s Catherine Cortez Masto joins New York Attorney General Eric Schneiderman in stepping up investigations of the bank. In addition to initiating a broad investigation of banks’ securitization practices, he recently filed a suit charging that Bank of America had fraudulently foreclosed on homeowners.
A coalition of all 50 state attorneys general has been seeking a settlement with the five largest banks to address their foreclosure practices, such as the filing of thousands of false sworn statements with state courts. Some critics have said the states were speeding to an agreement without thoroughly investigating the banks’ abuses.
Last week, fissures in the coalition became public when Iowa Attorney General Tom Miller, who leads the 50-state coalition, removed New York’s Schneiderman from the group’s executive committee because, he said, Schneiderman had “actively worked to undermine” its efforts by opposing any quick settlement. As part of any settlement (reportedly in the range of $20 billion to $25 billion), the banks have been seeking a wide-ranging release from future legal claims, not just those related to foreclosure practices. Schneiderman has publicly rejected that idea and pushed ahead with his investigation.
Masto’s suit signals that Nevada may also reject any settlement in the near future on the foreclosure issues. Two other attorneys general, notably those from Massachusetts and Delaware, have also voiced concerns recently about any broad waiver of claims.
Geoff Greenwood, the spokesman for Iowa’s attorney general, declined to comment on Nevada’s suit.
Nevada’s newly expanded suit also undermines a previous settlement between Countrywide and numerous attorneys general. In 2008, as part of that settlement, Bank of America agreed to implement a mortgage modification program to address charges that Countrywide’s marketing and lending practices had defrauded borrowers. That promised wave of modifications never came, however, so Nevada alleges Bank of America has breached the agreement. The expanded suit revives those allegations.
In its new claims, Nevada also charges that Countrywide bungled the process of bundling loans into securities by not properly documenting the transfer of assets. Despite the lack of documentation, Bank of America has fraudulently pursued foreclosure on these homes anyway, the suit charges.
New York’s Schneiderman made similar charges earlier this month when he sued Bank of New York Mellon, which, as trustee for several pools of Countrywide loans, was supposed to oversee the securities for investors. Countrywide’s failure to transfer complete mortgage loan documentation “impair[ed] the value of the notes secured by those mortgages” and “triggered widespread fraud, including Bank of America’s fabrication of missing documentation,” the suit charges.
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Purpose Driven Defects: Hidden Players
Posted: July 27, 2011 | Author: georgesblog360 | Filed under: Social Conscience | Tags: Bankers, Banksters, Debt, Foreclosure, Legal, Money, Mortgage, Ponzi, Real Estate | Leave a commentPurpose Driven Defects: Hidden Players
Purpose Driven Defects
Hidden Players
This is an interesting scenario. I wish this were the only variation on this theme. Then, someone could tell me that the world isn’t as crooked as I say it is. The heart of man is deceitfully wicked, above all things. Played out many times in the last 30 years, any legal conflicts never exposed all of the parties involved, in the same litigation. One hand is literally clueless to the existence of the other. Documentary separation precludes both hands being caught in the cookie jar, at the same time.
At the top of this food chain is a bank trustee to sign off on everything. Next, there is at least one loan officer, to make the paperwork look good. Rounding out this cabal is a real estate broker, an insurance broker and 4 to 6 investors. Just to illustrate the financial clout in one of these arrangements, if the buy-in to the group is $50,000, that’s a total of as much as $450,000 in seed money. Once the consortium is rooted and established, it could be collecting 2% interest on as much as $6 million in mortgages. Let’s take a look at the possibilities.
Scenario #1 A mortgage applicant walks into the bank and sits down with the loan officer. He doesn’t have the required 20 % down payment. Yes, I know that a lot of creative financing has gone under the bridge since those days, but that is exactly the practices under discussion here. The loan officer looks over the application. He sees the negative against approval by the bank and says, “No problem! “We” can get you financed.” The applicant is sent to the real estate broker. An agreement is written, containing 2% more interest that the holding/funding company can get on a mortgage. One important point must be made, here. In many instances, the funding source is not presenting itself or acting as a lending institution. It isn’t until there is a legal conflict that people discover that they only thought they had a “mortgage” with the “bank”. In reality, the funding company jumped the applicant on the sale, then made agreementon a private sale by owner, with private terms. The fuinding company bought the property, and the applicant helped make the down payment. Technically, the applicant doesn’t own the property until the terms are satisfied. There is a closing, but it isn’t as the applicant believes. He’s in the property , under license.
As an example, if the sale price is 150,000, the applicant gets a much more expensive deal than the den of thieves. He has 20,000 down and a financed amount of $130,000. The cabal $30,000 down, a financed amount of $120,000 and an interest rate 2% lower than the applicant. Over time, the payoff amounts widen and it’s a winner for the funding company. In some cases, the money people had lines of credit equal to their investment. Effectively, they risked nothing. I’m sure you’re aware of all of the self help real estate books and videos about using “Other Peoples’ Money”. This is one opf those brilliant ideas.
Scenario #2 In this scenario, the fun is just beginning. After 5 years, either the funding source or the original applicant finds a buyer for the property at $200,000.
There are enough carrots dangling here, to make everyone happy. The applicant is offered his equity and appreciation, plus a $20,000 “commission”, if the funding company writes the new agreement. There’s nothing like bringing unwitting and unaware in to do their bidding. However the chips fall, the funding company makes a lot of money, especially if the original applicant “buys” another property, through them. In a rising market, it has proven to be easy to do, with no disruptions to risk exposure in litigation.
Scenario #3 This one is everyone’s nightmare. A declining market, growing numbers of defaults, and uncertainty about the future begin to wear on the money machine. The negative cash flow runs back up the pipeline in a shockwave. Capital sources dry up. Banks fail. Holding a lot of inventory that isn’t producing income puts a business, out of business.That should explain ehy the only word thast people want to hear is “recovery”. When the wheels fall off of the currency everyone loses except the Federal Reserve. The system acquired the assets for the printing costs.
All of the details in these scenarios don’t exactly fit any single individual or institution. The pattern however, is much deeper and ingrained in the United States. If people learn how things work, it’s because the Federal Reserve taught them. Once people learn how to create “money” out of thin air by terms of sale and the wiggle room in fractional banking, unwary people are ripe for the plucking. No one runs the Bait-and-Switch better than the Federal Reserve. They built the cracks that are the reason the “owner” of a property can be officially listed as “occupant”. In the illusion of the Federal Reserve world, no one owns anything and everything is under central Fascist management. As strange and dangerous as this Brave New World is, people still want to be good, loyal little Corporatists. When their turn comes to take one for the team, the newest version of Der Feuhrer will say nice things about them after they’ve gone conquering for the Homeland. They went too far too back out. Now, they just hope for the best, and legally support the worst.
“People stand silent in the presence of corruption, to fall back in the small comfort of passionate defense of virtue they should have displayed, before the fact.”
Purpose Driven Defects: Position of Trust, Predator’s Lair
Posted: July 25, 2011 | Author: georgesblog360 | Filed under: Commentary, GAO, Social Conscience, Uncategorized | Tags: Administrative, Assets, Banking, Banks, Conservator, Currency, Elderly, Foreclosure, Fraud, Healthcare, Law, Legal, Medicaid, Money, Probate, Real Estate, Recievership | Leave a commentPosition of Trust, Predator’s Lair
This scenario illustrates a structure that harvests a most vulnerable group, the elderly. By the nature of their circumstances, they can get harvested by the most respected members of a community.
In this scenario, a District Court judge, a real estate broker and and an attorney devised a scheme to acquire property for pennies on the dollar. The victims, all elderly, in nursing homes and without interested family members, were left vulnerable to someone they trusted. The victims were longtime clients of the judge, also a well established attorney in the community. With the families too busy or to far away to actively participate in daily affairs, it was a simple matter for the judge to be named Conservator.
When the time came to liquidate the victims’ property, a quick, private sale went through the system, unnoticed. Since family wouldn’t receive any proceeds from the sale, they weren’t interested. They were happy that the medical bills were paid and there were no issues to resolve.
One property in this scenario was typical. The owners were in a facility about an hour’s drive away. Family lived in other parts of the country. The property was a large house on 2/3 acre of land, 4 or 5 blocks from downtown. If I remember correctly, the assessed value was $158,000. This group acquired the property for $14,300. That wasn’t the only one. Rumors suggested that they owned as many as 43 properties, acquired in this manner.
You just can’t trust some people, especially when you are unable to defend yourself. There are always people in place, ready and waiting for you. The best defense is to have as many real friends and family, who genuinely care about you. I’m sure that there are better arrangements that families can make, well ahead of time. The bonus is that life can be much more pleasant and in good company.
“People stand silent in the presence of corruption, to fall back in the small comfort of passionate defense of virtue they should have displayed, before the fact.”
Purpose Driven Defects: Introduction
Posted: July 22, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience, Uncategorized | Tags: Agency, Attorney, Banking, Banks, Currency, Default, Foreclosure, Fraud, Government, Injustice, Institution, Justice, Law, Lawyer, Legal, Money, Property, Real Estate, Social | Leave a commentPurpose Driven Defects
The common response to the truth is skepticism. That’s only fair, because a statement isn’t truth until it is tested and cross-checked.
Unnatural Law: Debt vs. Security
Posted: July 20, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience, Uncategorized | Tags: Bankruptcy, Budget Deficit, Congress, Corporation, Country, Crisis, Currency, Current Events, Debt, Default, Economy, Equity, Federal Reserve, Foreclosure, Gold, Law, Legal, Money, Nation, News, Obama, Paper, Silver, Social Security, Solvency | Leave a commentUnnatural Law
Debt vs. Security
The functional parameters of the concepts Debt and Security are black-and-white opposites. The contrast is so sharp that the use of the word “Securities” in investment circles is a fraudulent misrepresentation for the purpose of commercial promotion. There is nothing secure about paper. Ask Bernie Madoff’s investors. Read the rest of this entry »
Unnatural Law: Introduction
Posted: July 13, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience, Uncategorized | Tags: Banks, Commerce, Corporation, Corporatism, Corruption, Country, Credit, Debt, Eminent Domain, Fannie Mae, Foreclosure, Freddy Mac, Government, History, Law, Legal, Loans, Mortgage, Municipal, Nation, Real Estate, Secret Police | Leave a comment
INTRODUCTION
This article will describe, in general terms, the history of each section title. For further study and investigation, better books have been written, compiled and edited by people with far more expertise, experience, research and professional background than myself. If anyone is encouraged to further study, this article will have served it’s purpose.
Separation of Bureaucracy and Humanity 7/13/2011
Posted: July 13, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience, Uncategorized | Tags: Anarchy, Banks, Color of Law.Public/Private, Eminent Domain, Executive Order, fascism, Fiat, Foreclosure, Government, History, Invasion, Law, Money, Mortgage, Municipal, Ordinance, Partnership, Real Estate, Regulation, Riot, Social Studies, War | Leave a commentSeparation of Bureaucracy and Humanity
July 13th, 2011
The contrast between Bureaucracy and Humanity isn’t always obvious, but when it is, it seems to jump out at us. In public situations the difference jumps out at us and we recognize that something is very wrong. It feels like we are flying an airplane and the controls suddenly start working backwards.
Wage Slave 2012 Update 12/26/2011
Posted: October 26, 2011 | Author: georgesblog360 | Filed under: Commentary, Social Conscience, Uncategorized | Tags: Banks, FEMA, Foreclosure, Government, Law, Money | 8 CommentsWith the passage and signing into law of the National Defense Appropriations Act 2012,, everything we thought we knew or believed about America is changed. By the process of incremental gradualism, we have been brought to this point in history. The process of Reconstruction that began in 1860 with the War of Corporate Conquest change our country, before we were ever born. We never had the opportunity to live in the real America.
We now live in a corporate oligarchy, the system of tyranny that our Founding Fathers warned us about. We have had many warnings since then, but generations have ignored them. We now are held captive by laws that gave place to the genocidal tyrants of history. History records that these laws are used by present and / or future dictators to enslave, persecute and murder segments of the population.
A chilling aspect of the NDAA legislation is the encroachment of Islamic Sharia law into the U. S. legal system. The historical fact of Islamic invasion and conquest is very well documented. Slavery is an accepted practice in Islam. It was an integral part of the slave trade that displaced African populations, throughout history. The days are coming when the NDAA law will be used against the non – Muslim population of the United States. This sets the stage for everything I wrote in “Wage Slave 2012”. The Corporatist agenda that dragged us into two World Wars and numerous invasions and police actions has turned it’s attention back to the United States. For a time, it has been busy reconstructing the world. Now, we see the Draconian invasion of America, complete with checkpoints and the presumption of guilt. No formal charge, no right to trial by jury, no right to be informed of the nature of the charges and imprisonment without due process of law, are all in play now. We are definitely not in America, now.
You don’t have to know a whole lot about political systems, anywhere. All you have to do is recognize a thief, when you see one. People seemed to go on with life, after the European disaster, yesterday. They talk like it doesn’t mean anything to them. Well, in the short term, maybe not. After they lose their jobs or can’t get a loan, then they might notice. It’s time I wrote an update on “Wage Slave 2012”. I see a few surprises in the coming year.
http://www.zerohedge.com/news/mike-krieger-exposes-three-card-monti?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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