50 State Attorney General 27 Page “Settlement” on Fraudclosures

4closureFraud's picture

The way I see it, without CRIMINAL INDICTMENTS, there is no settlement.

Take a look at this 60 Minutes report on what they have done to the children of this nation here...

And they don’t even address MERS.



50 State Attorney General 27 Page Settlement on Fraudclosures

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Forgiven's picture

It's time to light up the banks.


buzzard beak's picture

If you even pay your rent that is.

buzzard beak's picture

Which homeowners demand restitution of what? I know people who own houses. They own houses, not mortgages, houses. They bought them before the bubble and have paid their mortgages down.

Why can't all you whiney subprime-bubble-buyers just come to grips with the fact that pension funds and provincial German bank managers and other dumbass CDO buyers bought your overpriced houses and you're just the suckers who've been overpaying them for rent?

jag's picture

Where were these AG's when the MERS system was originated?

Did any of them initiate ANY investigation of a system designed to bypass the historic

legal process of physically recording changes in liens on a property?

Of course all of them will sign off on something that dismisses THEIR culpability.

MachoMan's picture

They were sitting there with their hands tied watching the state legislatures grant the ability to assign mortgages without recording them...

WallStreetClassAction.com's picture

All of these insider trading charges and SEC "bonus tax" ideas are smoke screen and change of attention tactics.  The same goes for the White House's recent push for "settlement" with "robo-signer banks". In the colossal cluster fk that banking has become, where does one place the blame? The banking industry itself had contributed over $10 BILLION over the last decade on "contributions" to both parties, as to continuously disband and repeal all meaningfull and structurally important regulation.  Conspiracy to commit fraud, strict liability for failed financial products and instruments, wire fraud and obstruction of justice, RICO - all come to mind. At http://www.WallStreetClassAction.com we organize a class action against the banks, the ratings agencies and other financial institutions involved in staging the colossal securitization fraud and subsequently crashing the economy and resulting in over $5 Trillion in asset losses in the US alone. We realize that our own government is effectively a captured entity, so no criminal indictments will be forthcoming. But WE THE PEOPLE will hold the fraudsters accountable.  Sign up on our site, we already have more than 3,000 users within last 2 days. UNITED WE STAND www.WallStreetClassAction.com

TruthHunter's picture

I never saw an attorney general who really cared

about the law, only what he could win.


If there is no rule of law, the remaining precious

metal will be lead.

Quinvarius's picture

When these guys do stuff like this, they don't think through all of the implications.  The whole idea of having original is a safeguard against intentionally fraudulent mortgages as much as anything else.  All they just did was legalize papermills that create fake mortgage documents and allow intentional fraudulent foreclosures that aren't even allowed to happen.  And if anyone thinks that won't start happening en masse now, I remind you who we are dealing with here.

MachoMan's picture

*looks around* what's to stop them from making a copy with blue ink instead of black?

[hint, the debtor needs to keep a copy of the documents...]

Franken_Stein's picture


Looks like today's America equals SNAFU.








I posted Lloyd Blankfein's adress in another comment to another article here on ZH.

Why don't you all just go there and block access to his high-rise, so he can't take a ride in his Lincoln Towncar down to GS' HQ in 200 West Street ?


His $26 million condo, paid with the ill gotten gains from his unlawful practises,

is in the building next to the Trump tower at the Southwestern corner of Central Park, next to Columbus Circle.

He is laughing at you poor suckers, because you financed his lavish lifestyle.

This is your money that he owns now.



Land of the (not so) free, home of the brave (really ?)

From the mountains to the fairies ...


See ya, wouldn't wanna be ya.

Bansters-in-my- feces's picture

And you guys /gals pay taxes.????

Shame on you.Stand up and say FUCK YOU.!!!

Boxed Merlot's picture

Every foreclosed property should be required to have blood smeared over the front doors to indicate the freedom the previous residents are now enjoying. It would also serve as a reminder of the guilt these entities share in their wanton greed and insatiable desire to obtain from others what they themselves had no legitimate right to.

Bansters-in-my- feces's picture

Fuck the UNITED SNAKES GOVT and it's pig-dog clan

Law is for the poor peasants.


sodbuster's picture

This is the response I received from AG Tom Miller of Iowa on Jan 11, 2011, when I asked him (Miller) not to sell out on robo-signing. If they do not have the authority to file criminal charges, how the heck can they authorize a settlement?

The reply I received from AG Tom Miller's office:

The investigation of the state AG’s of mortgage foreclosure robo-signing is, in fact, a civil investigation in that the one law the AG’s share in common is the state civil consumer fraud laws.  While state consumer fraud laws differ a bit, they are sufficiently similar to permit us to work together and are the laws most often being enforced when state AG’s work together on civil consumer protection cases.  However, if the states discover evidence of criminal conduct in the context of a civil consumer protection investigation, we will pass it along to appropriate authorities, be they local or federal.  Some state AG’s do not have the authority to file criminal charges, and we cannot collectively file criminal charges in any event.  If there is a single criminal charge for national criminal misconduct, it would have to come from a federal enforcement agency.  The states are working closely with federal agencies in the context of the mortgage problem, generally, and certainly will not hesitate to pass along evidence of criminal conduct.   In addition, conduct which constitutes a crime under state law can be addressed locally.  In Iowa, that is done by the county attorneys, who have primary jurisdiction to file criminal charges.  If you live in another state, you may wish to contact local and state authorities there. 



MachoMan's picture

He told you...  they authorized a settlement for state civil causes of action for violations of consumer protection laws... 

In other words, if, through discovery, it is found in a particular case that a bank defrauded a debtor, then it may rise to criminal charges...  the problem is that improperly assigning a mortgage/note is not defrauding a debtor...

The AGs may get involved again when state securities laws are tested...  but, my guess is that is well above most AGs pay grades and there will have to be a clearly marked path for them to move in this regard...

In other words, it's not a criminal matter...  it's a civil matter...  a very important distinction...  He didn't say they couldn't prosecute criminal matters, if necessary...  he simply said that was outside the scope of the settlement...  i.e. reserved for a later day.

Fearless Rick's picture

Any of you retards actually read section 1. C 1.? It explicitly states that the servicer must provide the note.

I think this is less bad than some of you are making it out to be. Generally, it's a major clusterfuck, whereby the AGs basically are telling the banks to kindly follow the law.

MERS, FINES and PRINCIPAL REDUCTIONS were left out of this "settlement." They've gotten the banks to agree to do their dirty work in a gentlemanly manner and with all kinds of extras. I think the AGs got the "Paulson treatment" from the banks, i.e., if you prosecute, we'll have martial law in no time.

Trouble is, this document seems to suggest there are more foreclosures to come. The AGs are in on the planned demolition of the USA. It's been every man, woman and child for him or herself since 9/11. This doesn't surprise me one bit.

There's going to me more fallout ranging well beyond this, which, by the way, the banks will no doubt violate at every opportunity.

Massive clusterfuck.

theprofromdover's picture

The worst thing the readers of zerohedge do, and we/they do it all the time, is revert to the old herd instinct.

Too many times everyone jumps on board and rants in whatever direction the first random wildebeest staggers.

It completely deflates the power that this blog should have.

I for one, haven't read this publication. I bet 90% of the rest haven't either. So currently I have no comments to offer.



(other than.. )                       shaddup...

(maybe hidden in the text is something correct, legal and enforcable in the interests of justice for all.)


'Cos I can't believe all 50 of them are in the pocket.

Nacho.Libre's picture

Yeah, I read it.  Now, you go back and read it.  It says they have to provide a "copy" of the note.  It doesn't say the "original" or "wet ink" or "blue ink".  It says a copy!

bigdawg's picture

A copy of the note with endorsements...doesn't mean anything if they don't address MERS. 

The beneficiary for my own note is MERS (solely as nominee for Lender...UAMC).  First I paid UAMC, then Countrywide, now B of A...and I've only had the house for 2-1/2 years.  I'm guessing the note hasn't been transferred correctly.  The language of the proposal above isn't exactly what I would consider strong as far as what foreclosing parties would need to provide.

Look for the AG's to allow MERS beneficiaries for all mortgages/deeds of trust up to this point...with an affadavit from the servicer saying that they "promise" that they're acting on behalf of the lender.  This will allow servicers to rid themselves of the pesky homeowners trying to enfore the servicer/owner to prove ownership with lawful documentation...basically the AG's will kill any hope of lawful proceedings.

But, I'm not so sure that MERS will be allowed in the future...It seems like MERS is falling apart at the seems due to the recent court cases.

GottaBKiddn's picture

As long as they were at it they might as well have annulled Common Law for good measure.

bigdawg's picture

This tells me that the only way to get this mess fixed is by individual participation towards meaningful resolution. 

We know that the "authorities" have always been in bed with the banks but now it is readily apparent that they're not even trying to make it look like they are seeking justice for the benefit of the people.

What a bunch of douchebags.


Fred Hayek's picture

Danninger does a nice job of tearing this apart at The Market Ticker:



RockyRacoon's picture


These Attorneys General are not here to help homeowners.  They're blowing the servicers under the table and lying to the citizens in their states.  Virtually all of the "shall nots" in this document are already against the law and many of them are already subject to criminal penalty, such as perjury.

MachoMan's picture

The issue with attorney generals has always been, why weren't you on top of this sooner?  All of these issues are already against the law...  the question is whether they want to enforce consumer protection statutes and what not...  the issues with each mortgage are specific to that mortgage and the state is not the proper party to get involved...  rather, it's the individual's cause of action...  and, if enough are similarly damaged, possibly a class action is appropriate.

Essentially, the AGs just solidified how worthless they are because they are either: (a) too dumb/lazy/corrupt to proactively help consumers/citizens or (b) largely ceremonial for virtually all issues because it's not the state's point to get involved...

If they really wanted to save face, they would at least pursue foreclosure shops in their respective states... in the end, any justice done will be born out by local courts through lawsuits pursued by individuals...  I really think this settlement is a big to do about nothing...  

tom a taxpayer's picture

Outrageous! The federal government won't prosecute the major financial mobs. Now the State AGs won't prosecute these brazen criminals. 

What justice demands is coast-to-coast arrests, from Countrywide to ratings agencies to Goldman Sachs and every one in between in these overlapping criminal enterprises that raped and pillaged the mortgage industry, ruined the housing market, destroyed the credit system, endangered federal/state/municipal financing, pension funds and the banking system, caused massive unemployment, sent the economy into a downward spiral, endangered the world financial system, extorted the U.S. and the world to pay them billions in ransom or face the destruction of the world financial system and economy, and now are costing taxpayers hundreds of billions, even trillions of $.

We need Shock and Awe RICO prosecutions and mass trials in style of the Maxiprocesso (Maxi Trial) of the Mafia in Sicily during the mid-1980s that resulted in hundreds of defendants convicted.

We need balls-to-the-walls prosecutions of Countrywide, the mortgage industry, the appraisers,Freddie and Fannie, Citi and the big banksters, Goldman Sachs and other Wall Street banks, the rating agencies, AIG, and federal co-conspirators at U.S. Treasury, SEC, OTS, Federal Reserve, especially FRBNY, and those members of Congress who aided and abetted.

We need RICO confiscations of the hundreds of billions in illegal "profits" from the criminal enterprises of the banks, mortgage industry, and Wall Street Mafia. We need prosecutions, RICO convictions, RICO confiscations of mega-billions of dollars of ill-gotten gains, repayment of taxpayers, and 20 years-to-life hard time prison sentences. 

Instead of dishing out justice, the State AGs dish out limp linguine....a spineless, shameful dereliction of duty by 50 State AGs.

johnQpublic's picture

would anyone disagree that this is a conspiracy against the people of the United states?

dick cheneys ghost's picture

"Make Wall Street Pay"............a new campaign. already protests BOA and the cry baby speaker boehner....watch the video........



Zero Govt's picture

Direct awesome stuff... get the bwankers out (and pay their own fuking bills)

James's picture

Makes one wonder the total depth of this nightmare that even State AG's won't pursue cases. The general consensus of this mess is one thing.

Is REALITY  such that no one could possibly wrap there brain around the truth?

You know, that"Normalcy Bias" thing?

To me, this action (or lack thereof) speaks volumes to where we actually are.

Livin' on a prayer..............................

'Ya live for the fight when that's al that you got

Bob's picture

They understand the depth of the fraud, I think.  Banksters are playing the MAD card. 

anolmec's picture

Part B1 says "Servicer shall maintain adequate documentation, including original loan files"".............ummmm gee I thought the notes and mortgages, which are part of the original loan files, were transferred into a trust, and these documents  maintained by the document custodian for the Trustee..........according to the Pooling and Servicing Agreement.


PART B6 " Servicer SHALL NOT be required to accept payment which are insufficient to pay the FULL BALANCE after the borrower has been notified the contact has been declared in default.

I cant read any more of this disgusting document, written and signed by a bunch of disgusting apparatchiks. My prayer is that every signator on this document gets aids and dies......looks to me like they spent the last few months servicing one another

foofoojin's picture

ummm last I checked when a contract is declared in default that mean that there is no contract.  no contract mean no promise to repay. right?  can't i prove that my own contract in default and send a note to myself that my lender does not have to accept less then the full amout? or any amout for that matter? as is what contract are you talking about mr. banker? you touch my credit score or report i didnt pay you and ill sue your ass 8 ways from sunday. If I have no contract. you have no contract. 

Zero Govt's picture

so basically the WS bwankers and State Attorney Generals have struck a deal... but surely they need a 3rd party agreement with the mortgage/home owners too... they can't simply make up their own deal without consent of the 3rd Party, the purchaser... i think this 'agreement' is no such thing, it's illegal by its very nature by not including the purchaser in the negotiations. in the agreement itself and effectively inserting a new clause the purchaser has not given their consent too.
Imagine you lease purchase a car and the Car Co and the Attorney General in your State decides to insert a new clause, without any discussion or consent with you, in your purchase agreement after you've signed it?
This WS/AG agreement is not only bullshit it's illegal/illegitimate in contract law without the purchasers consent

chunga's picture



TAMPA - One of the foreclosure firms under a fraud investigation by the Florida Attorney General's Office is fighting back.

Shapiro & Fishman this morning asked a Palm Beach judge to "quash" an investigative subpoena by the AG's office.

An attorney representing the firm said a subpoena for marketing and advertising material does not pertain to the allegations.

"This law firm doesn't advertise or market itself," Gerald Richman of Richman Greer, P.A., legal counsel for Shapiro & Fishman said in an interview.

Furthermore, Richman said the attorney General's office doesn't have jurisdiction to investigate the law firm.

"If they have a compliant, they should go to the Florida Bar," Richman said. "We think this is really a political situation. This investigation was launched during a highly-contested political campaign."

Florida's Attorney General has accused four large "foreclosure mills" of rushing cases through the system and potentially fabricating documents and signatures.


This is surreal. Everything is political theater. The foreclosure mill goblins squeaked and squealed about the mean old AG over-reaching...yeah right. They all knew this was in the bag. I only have one question left. Will the AG's actually goose step up to the podium in formation to trumpet the virtues of this "deal". This begs for Project Mayhem. 

Where the hell is Nero? I want to make a request. Blech.

Let's see if I can get a comment from George Babcock. I'll bet his level of "pugilism" goes up a notch or two. This will end up before the Nine Judges.


Bob's picture

Opposition is just now becoming organized, many competing groups, but each and every one growing exponentially:


Nacho.Libre's picture

Beyond just that, like a poster above mentioned, this doesn't change the law.  That is a legislative action that each state has to take, though I'm sure the banks will whip out this little document at a foreclosure and say "see, the state AG said it's ok, so judge, you need to rule in our favor." At which point someone better stand up and yell "I CALL BULLSHIT!"

Fearless Rick's picture

+10 You're on a roll, ZG.

I also wonder how individual judges will feel/follow this.

MachoMan's picture

Individual judges are not going to give two shits about this settlement when it comes to cases brought by debtors...  this is an issue BY THE STATE.  It affects nothing of the individuals and cannot alter their vested rights...

cranky-old-geezer's picture

That's it, end of the housing market, get out now while the gittin' is good, sympathies if you live in a recourse state, you're fucked.

My theory is proven, it's a grand scheme for banks & federal government (one in the same) to end up owning all real estate ...for pennies on the dollar.

Zero Govt's picture

yes Cranky but think the next stage through to the Masterplan... State and WS Banksters end up owning 65% or more of US property... but like Bernanke couldn't work out why his 'support' of MBS mortgages couldn't support the price you end up being the seller but having no buyers!
US property is in a terminal cyclical decline to 10% of the value at its 2006 peak (ie. 10 Cents on the Dollar). And it'll be past 2025 before values pick themselves off the floor... they're welcome to 65% of the US housing stock, their loss not ours!

cranky-old-geezer's picture

US property is in a terminal cyclical decline to 10% of the value at its 2006 peak

I believe it's terminal, not cyclical, and yes I agree it may go that low ...deliberately.

...you [banks] end up being the seller but having no buyers!

Who said anything about selling them?

My theory says destroyed chain of title (MERS is part of the scheme) will make title insurance companies flee the market and foreclosed homes unsellable. They'll rent foreclosed homes out, people need a roof over their heads, but renters can forget having any rights.

Ultimately it's not about owning all the real estate, it's about controlling all the real estate, i.e. tyranny.

Zero Govt's picture

controlling real estate has to have a value (pay off) ....having power over property is worthless in and of itself without a financial gain or end-game ...the rental sector will gain huge strides in this recession but with the amount of surplus supply the competition will be fierce too in a consumer market where money becomes ever tighter ...i can't see any end-game in this, it's ever decreasing circles around the drain for more than a decade to come!

cranky-old-geezer's picture

Serfs on feudal land is the endgame.

... what Max Keiser predicts too by the way.

Zero Govt's picture

fan of Max but this 'era' is not the time the New World Order get their wicked way, it's a time in history of regime change ...Rome will be burning, not rebuilding a new one!
Interestingly Max was on tonight interviewing an Egyptian and asked who will be your leader? he replied "nobody, the Egyptian people are the leaders".
If he really means they will not replace one failed corrupt authority structure with another authority structure also designed to feed itself and fail its people then Egypts revolution will not be wasted

cranky-old-geezer's picture

fan of Max

Not exactly, we just happen to agree on this point.

but this 'era' is not the time the New World Order get their wicked way

Who said anything about NWO?  Our own govt & banks hatched this scheme.

 it's a time in history of regime change

Yes, to full-blown fascism. Actually more like feudalism.

Interestingly Max was on tonight interviewing an Egyptian and asked who will be your leader? he replied "nobody, the Egyptian people are the leaders".

Dream on.

MachoMan's picture

The feudal lands require production, not pure consumption...  the lands purchased by fed.gov are consumptive lands...  potentially having literally zero value.  If you want to predict feudalism and the end game, you need to figure out the vehicle from which farm land flows to the elite...  cities will become wastelands of overconsumption and fundamentally impossible to maintain.  There has been much consolidation of farmland into large hands...  but, it's a far cry away from being owned by TBTF, the fed, or fed.gov.  What is your theory?

Fearless Rick's picture

I think you're on to something there, Mr. Zero Govt. Just what they expect to do with the bulk of the US housing market is something I've often contemplated. I maintain they'd be better off just walking away from alot of these mortgages, houses. etc., but, I'm not a banker, what do I know?

Matte_Black's picture

"Just what they expect to do with the bulk of the US housing market..."

65% of the best farm land our country ever had is sitting under those houses. The next big bubble: farm land? Hm. Maybe.

They'll need something to occupy their new debt slaves when all else is lost, I suppose. I for one don't relish the idea of share cropping a hundred acres with a hand plow, but that may be what they have in mind.

It's a good question you ask though.