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Banks To Get Away Scott-Free Again? Mass Fraudclosure Settlement To Be Announced Today Without Financial Penalties
As we noted earlier, JPM recorded $650 million in costs to "foreclosure-related matters" read legal costs associated with Robosigning (and if JPM is over half a billion, BofA legal invoices are certainly in 9 digit territory by now). Obviously, this is a situation that has to be resolved as USSA kleptocracy can not be forced to pay for prior (and ongoing) transgressions. Which is why we were not surprised to learn that "Bank regulators plan to announce settlements later on Wednesday with the largest lenders over allegations of shoddy foreclosure practices, but the pacts will not include financial penalties." All those who had been hoping for an equitable judicial treatment for criminal bank actions are urged to bottle their righteous indignation and stow it away (at this rate of inflation indignation will be worth 50% more in a mere 3 months). "The Office of the Comptroller of the Currency, the Federal Reserve and the Office of Thrift Supervision have spent the past few days completing the settlements with some of the largest U.S. banks, including Bank of America Corp, Wells Fargo & Co, JPMorgan Chase and Citigroup Inc. The pacts would resolve only part of a large probe involving a group of 50 state attorneys general and about a dozen federal agencies." But don't worry banks, won't actually have to part with even one dollar: "JPMorgan Chase & Co Chief Executive Officer Jamie Dimon said on an earnings conference call that the regulators would release consent orders that would make the banks address weaknesses in foreclosure affidavits. Fines will probably come later, he said." Probably. Although don't hold your breath.
From Reuters:
Federal regulators and state attorneys general have been investigating bank mortgage practices, including the use of "robo-signers" to sign hundreds of unread foreclosure documents a day, that came to light last year.
Some lenders, including Bank of America, temporarily suspended foreclosures late last year while they scrubbed their servicing practices, but government agencies have been pushing for broader reforms.
At first, all the government agencies involved in the probes said they wanted to announce deals with servicers at the same time so there would be a clean conclusion to the process.
That unity began to fracture as the attorneys general, along with some parts of the Obama administration, pushed for servicing changes and fines of about $20 billion, beyond what the bank regulators wanted.
The partial settlement with the bank regulators will probably leave open the question of the banks' legal costs stemming from the weaknesses in their foreclosure practices.
The uncertainty could also mean that some foreclosures will remain stalled, keeping the recovery of the broader housing market in limbo.
On Wednesday, Dimon said a comprehensive foreclosure settlement would be good for everybody, including the housing market.
He also said some of the foreclosure settlements with the government could increase the costs of mortgages to consumers.
Actually no: if fraudclosures clear out the market, if banks released millions in shadow housing inventory, and if there was even a trace of legal precedent in the US, costs of mortgages to consumers would plunge, and a clearing price level without constant Fed supervision would be established, returning such long-missing concepts as unadulterated supply and demand in the housing market. Until then we can expect to hear much more such M.A.D. posturing from the like of King James.
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enjoying a smoke w/ you, ORI!
ahem...btw...the dollar index is 75.04 and the bonds are a deep green again, today, too,...mr anti-einstein,... peace.
So say I buy a bank REO home all cash that previously was a sub-prime defaulted property with MERS fingerprints on the prior deed but I get an extended title policy and a general warranty deed. Do I have clear title or not?
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This was a federal court opinion, as the case was filed and issue of property title raised and was contested in bankruptcy court proceedings. There are many state court decisions reflecting exactly or closely the same legal analysis.
It's one thing for a state's highest court to render a decision gutting MERS, essentially, of any legal effect/status, but for numerous federal courts to join so im doing, now, and for similar if not the same reasons (when a question of federal law provides jurisidiction) is quite telling.
"I steal, therefore I am.
The robosigning, etc., all front and center and featured prominently on '60 Minutes' and other MSM bullshit programs are red herrings literally put out there by those holding bad mortgage debt due to the legal vacuum that is MERS to distract people from the fact that the key and central point in establishing a broken chain of title rests exclusively around the precise moment that an assignment of mortgage interest was was run through MERS and NOT the appropriate local governmental unit that handles and has always handled such conveyances, which is typically either known as the register or registrar of deeds office, and is typically located in the county seat where the respective property is located.
Everything else is smoke and mirrors.
If that mortgage assignment was not properly recorded in the appropriate register or registrar of deeds office, it's very strongly suspect as being legally deficient.
Which brings the subject forward that any "settlement" herein is nothing more than typical slap on the wrist crap. But may not mean anything in terms of getting the foreclosure process started again in earnest.
My question here is ... wouldn't a full start to the foreclosure process just speed up the recognition of bad assets by the banks?
These fuckers own the system. I would think they could have rammed the subject through at any point they wanted. Rather, the foreclosure process grinded to a halt. I can only think they wanted it this way. To delay - even stop - the balance sheet bleeding.
That's not true at all... in fact, the respective counties/divisions of counties probably have to abide by state law that says assignments do not have to be recorded....
Further, broken chain of title can start long before any purported assignment to MERS... I strongly suspect many titles will have been broken multiple times before being dumped on some scandinavian municipal bagholder.
The issue is that the assignments are not legally valid because they were not executed with the necessary formalities and/or have been lost... recording only affects priority... not validity... [Remember, even a deficiently executed, unrecorded mortgage is still good as to the mortgagor] (unless of course it is improperly assigned).
no offense m_man, and under common law or something you may be, technically correct. i've never seen ya talk outa yer ass here, yet.
but, for purposes of determining rights to title in a freaking courtroom? ok, again, in principle, you may be quite right, under ordinary/normal circumstances. so stipulated, k?
the judges seem to be saying this mers tranche fraud securitization nonsense is not legal conveyance, doncha think?
First, title is not conveyed, at the earliest, until foreclosure occurs (presuming no short sale occurs)... so, we're really talking about the rights of lienholders, not title holders... the title holders are enjoying $50b in mortgage payments avoided.
Second, MERS is absolutely a piece of shit and defunct... it never was legit... and upon rudimentary scrutiny has fallen like a house of cards... totally agreed on the MERS issue.
But, for the proposition that an unrecorded assignment is inherently suspect as being legally deficient, that is patently incorrect... assignments, in general, do not have to be recorded by law... so this is a basic function of the expected transactions...
Further, even if required to be recorded, just like deeds, etc., they are generally not required to be recorded to be effective... they are only required to be recorded to the extent you want to take refuge in the state's recording acts... i.e. priority. Show a mortgage (or a copy of a mortgage) to a judge that a defendant agrees he executed, and I'll show you an effective mortgage... However, this issue is totally separate from the issue of who actually owns the mortgage... luckily, the asshole who actually owns it (and the note) is required to foreclose... otherwise, it's a no go (unless the owner's agent).
Race-Notice is the rule in the pursuit to become 'bona fide.'
So, yes, first to file takes priority.
However, any party filing a deficient instrument is stuck with a deficient filing.
Moreover, if the deficient filing fails to satisfy minimal legal elements giving rise to valid claim, the filing is toilet paper. I can file a quit claim deed to you conveying you my interest (i.e. none) in the Brooklyn Bridge, and that's what you'd be able to claim as your interest.
Finally, forged instruments, especially where originals are missing, destroyed or altered are deeply frowned upon by courts, and often treated with criminal and/or heavy-handed civil sanctions.
The filing may be deficient, but that does not mean the instrument itself is unenforceable... big difference... The lien you execute is valid as to you... it's just not valid to anyone else unless you record and/or they knew about it at the time of recording (depending on jurisdiction).
Further, whether or not originals are available or missing is irrelevant to any court when a document has been submitted to the court, its authenticity sworn to, and it is later found to be a fraud (no need to see the original when robosigning is at issue)... Criminal sanctions are... generally not going to be issued... however, civil sanctions often are, especially considering the effect of quite a few of the rulings, e.g. temporary free housing, possibly permanent.
At settlement here in Maryland, they collect local recording taxes and fees...then they don't record at the County.
Crooks...
That is... a huge problem for them... and an enterprising attorney would be licking his chops on that kind of case.
I suppose it's only as good as the title companies' pockets are deep, but still...
So you're saying that the original closing of a home, whereby a mortgage is executed and funds withheld from the parties for recording fees, does not result in a filed mortgage? That seems pretty incredible to me given the likelihood of another creditor intervening in the chain of lienholders... or are you referring to an assignment? Are the title companies simply agents of the creditors? Otherwise, I'm not sure how their interests could coincide so as to end up with a mortgage not being filed... In other words, the creditor has an incentive to record the lien ASAP and does not get to collect the recording fees... The title company/closing agent gets to keep the recording fees, but should another creditor file a lien on the subject property prior to the title company getting off its hands, then there is going to be some significant jawboning/litigating...
or are you saying they record the lien, but not the deed? How do they record a lien that references a wild deed?
Sounds like to me you got a pretty easy case to recoup fees collected as well as for the local government to file some type of third party beneficiary claim... on top of punies of course...
Do you have any link/article referencing this practice? I've never heard of this (and it sure as hell doesn't happen around here).
I pulled my land records from county including my Mortgage. Shows the original mortgage and docs from 11 years ago. ...no refinance is in there. And I have/kept my settlement sheets which show the taxes paid. So the refi was never recorded, but the taxes were collected at settlement. But yes, the lien is at the court (country here has 2 places where records are kept - court where they foreclosure with the lien and country where land records are).
I can't imagine I'm alone in all this.
The key portion of the Reuters dispatch is:
"The uncertainty could also mean that some foreclosures will remain stalled, keeping the recovery of the broader housing market in limbo."
I don't think the people are willing to allow foreclosures to resume absent fines, penalties and a clear mandate for modifications, write-downs, principal reduction, where the value of the underlying real estate has crashed and similar relief.
It will all end in tears.
Where's Bucky O'Hare and his righteous indignation?
Well obviously not in D.C.
What a crock.
We can still Glass-Steagall them, which will still 0 out everything at the banks.
If you want these assholes to take any hit, Glass-Steagall IS (or will be when this settlement farce is completed) your only shot at it.
Glass-Steagall or the banksters win another one (for a while)
Its over. They won. They probably won through Paulson in 2009, we just didn't realize it.
Anyway, its over. The US is a pure plotocracy now, with no rule of law. Laws are written and enforced for the rich and influential.
Don't be so negative. These scams always expand until they blow up. It's all based on their money fraud....which is dying out. These are the last days of the Fiat Reich.
Re: banks... shorting BAC into earnings this Friday morning!: http://www.hedgefundlive.com/blog/trading-bank-of-america-bac-earnings
BLOW JOBS AND CHAMPAIGN ALL ROUND. But T.V is very good these days and democracy is being dished out by the boat load...so all is well in OZ.
I sure hope I'm still live when the revolution takes place....
Dreaming I suppose.
One little fly in this ointment.
Title Insurance.
So this brings up the question... what crimes could a banker get away with today in America?
Just how useful is privilege? Fraud yes, clearly. You get a bonus for fraud, but what about you know, less white collar crimes?
Obviously you can't extract financial penalties from insolvent entities. Any fine would have to come from another bailout.
Any meaningful change will have to come from criminal penalties directed at senior managers. But that is hard to prove and impossible when the prosectutors, judges and legislators are on the same team as the criminals.
Boy, talk about the new world order in practice.
Just think about it... settlement without participation of the damaged parties, actual calculation of real damages to the damaged parties, any compensation for the damaged parties, or punishment of the guilty parties. How ethical is that? How just is that? How lawful is that? Answer: zero.
predators DBA government
predators DBA corporations
A little something is going on in Kansas
http://www.housingwire.com/2011/03/28/ongoing-mers-lawsuits-may-hurt-cur...
http://www.economicpopulist.org/content/foreclosuregate-deal-mandatory-c...
http://www.nytimes.com/2009/09/27/business/27gret.html?_r=1
http://longislandbankruptcyblog.com/powerful-mortgage-foreclosure-defens...
Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-st...