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BofA's TARP 2 Overture: Bank Accuses Taylor Bean Of Triple-Pledging Mortgage Assets, Sues FDIC For $1.75 Billion
And here come the US taxpayers to bail out the world's biggest and most toxic bank. Reuters reports that Bank of Countrywide Lynch has sued the FDIC, and is demanding $1.75 billion from US taxpayers to recoup investor losses over a rather interesting spin on foreclosure gate. Bank of America, as trustee for failed Taylor Bean's Ocala Funding Unit, is angry that the FDIC has denied claims by Ocala noteholders to recover from Colonial Bank and an
Illinois lender also in receivership, Platinum Community Bank. The FDIC had previously served as received for Alabama's Colonial BancGroup and Taylor Bean which Zero Hedge wrote about last year. In its lawsuit BofA said Ocala used proceeds from note sales to Deutsche Bank and BNP Paribas to buy Taylor Bean mortgages, but is no longer able to repay noteholders. Yet, as Reuters reports, here is the kicker: "Bank of America accused executives at Taylor Bean, Colonial and Platinum of having fraudulently schemed to "double- and triple-pledge mortgages and steal assets" to hide their faltering conditions as the housing market declined." Ironically, this is precisely what some are accusing BofA itself of having done. And to a much greater degree.
While the Taylor Bean fraud "discovery" resulted in the former chairman's prosecution for $1.9 billion worth of mortgage fraud, isn't this precisely the mechanics of what the worse case scenario of fraudclosure could result in? And if it happened there, it could easily have been taking place for years at virtually every other mortgage company. Furthermore, it doesn't need to have a malicious or criminal intent: it could merely be a function of what is rapidly becoming obvious was a total collapse in the infrastructure of title tracking as originators and servicers sought to rake up fees, first on home sales, and then on foreclosures. Will the BofA lawsuit merely uncover yet another can of worms, in which it becomes apparent that every mortgage in America ends up being double and triple pledged? If so, Goldman's just released analysis of BofA's own downside may need some dramatic revisions.
And from our coverage on TBW as of a year ago:
What is probably most concerning is that according to the same disclosure, at June 30, TBW serviced 488,000 mortgage loans having aggregate unpaid balances of $80 billion. Looks like some more fun for Freddie and Ginnie as they juggle the fall out from this, as TBW borrowers somehow get the impression that since their mortgage lender is bankrupt they never have to pay their mortgage again.
The primary reason for TBW's bankruptcy was given as the termination by Ginnie and Freddie to sell and service their respective $26 billion and $51.2 billion loan portfolios. That and some other disclosures about shady dealings with Colonial: "Historically, TBW and Colonial have had an extensive banking relationship. Colonial maintained virtually all of TBW's bank accounts, including approximately 108 custodial accounts necessary to TBW's servicing business. Significantly, Colonial was party to participation facility agreements with a cumulative purchasing capacity in excess of $3 billion, along with a $20 million line of credit, all of which were critical to TBW's business operations." Alas the relationship ended thusly: "Beginning on or about August 5, 2009, Colonial froze all of TBW's accounts and refused to accept deposits, honor checks, receive wire transfers, or permit disbursements." One wonders how much the other 81 bank failures YTD have impacted existing bank-mortgage lender relationships. If one listens to the news, likely none at all... until it is of course impossible to hide these.
We urge all readers who may have obtained a mortgage from Bank of America to immediately demand proof of title (and lack of duplicate title with another bank), since it is very likely it could be one of these inherited TBW mortgages, which in turn are likely claimed by Deutsche and BNP, and there is a risk a totally unrelated bank could simply decide to take over the property, in the way that JPM was recently caught breaking into a house, or foreclosing on a home which had no actual mortgage lien on it.
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let the lawsuits fly; accuse your opponent with whatever they accuse you
and yet the HFT computers bubble on, with BAC going green on the day. who says you can't sell garbage any more?
If you can't dazzle them with your brilliance, then baffle them with your bullshit.
White collar thugs. All the pricks need to go to jail.
correction "All the pricks need to be lined up and shot in stomach" this produces a longer much more agonizing death fyi.
Death is a form of mortal emancipation. I prefer if they were all shipped to Gitmo and sat in a stinky cell for the remainder of their lives. And I'd supply the vitamins and flu shots, so as to keep the pricks living as long as possible.
+1 Leave their souls in God's hands.
+1345! Gulags in Alaska for the banksters and politicians... Where they would be required to "produce" for their own upkeep so the tax payers wouldn't have to sneeze a dime for it. Now that would be Karma. Their families could ship 'em each an apocalypse pallet from Costco and some hybrid seeds.
very funny
I personally believe in hell so the sooner we ship them there the better, but I like what you are saying too, hell will still be there when they finally expire.
Shut up Tim or the collar geos back on.
Riiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiip
snakes eating snakes
or circular firing squad
Shark's eating their own. World class predator's. I would watch that!
Sounds like Fraudclosuregate is going to be a bonanza for lawyers for years to come.
Uncle! .... Uncle!
It's too late to give up. It's now fight or flight.
Sue Shiela and the govt? Nothing like poking the sleeping bear some more.
Tyler, the rabbit hole just keeps going deeper & deeper. A blanked government "ruling" of some kind, will be necessary, as we all know the major banks are insolvent. If they attempted to defraud BONDholders,as is coming out, certainly then the homeowners also.
Oh, you guys must have missed it. Bob Pisani on CNBC has already covered all of this, banks, fraud, everything.
"The important thing is markets are up."
I suppose we all check in here for various reasons but ZH is quickly becoming my favorite fraudclosure-gate site.
You ever get the feeling that people are just a little too quiet out there? Something that's hard to put your finger on, but it's . . . different. Something's out there.
it was right in everyone's face. tyler and i just made it visible. it was on the tip of everyone's tongue. tyler and i just gave it a name...
Who gives a fuck. By the way, Who is this ficticious, Proverbial tax payer that i hear of everyday? Whoever it is, Must have alot of money.
Well I don't know why I came here tonight,
I got the feeling that something ain't right,
I'm so scared in case I fall off my chair,
And I'm wondering how I'll get down the stairs,
Clowns to the left of me,
Jokers to the right, here I am,
Stuck in the middle with you.
Yes I'm stuck in the middle with you,
And I'm wondering what it is I should do,
It's so hard to keep this smile from my face,
Losing control, yeah, I'm all over the place,
Clowns to the left of me, Jokers to the right,
Here I am, stuck in the middle with you.
Well you started out with nothing,
And you're proud that you're a self made man,
And your friends, they all come crawlin,
Slap you on the back and say,
Please.... Please.....
Trying to make some sense of it all,
But I can see that it makes no sense at all,
Is it cool to go to sleep on the floor,
'Cause I don't think that I can take anymore
Clowns to the left of me, Jokers to the right,
Here I am, stuck in the middle with you.
Well you started out with nothing,
And you're proud that you're a self made man,
And your friends, they all come crawlin,
Slap you on the back and say,
Please.... Please.....
Well I don't know why I came here tonight,
I got the feeling that something ain't right,
I'm so scared in case I fall off my chair,
And I'm wondering how I'll get down the stairs,
Clowns to the left of me,
Jokers to the right, here I am,
Stuck in the middle with you,
Yes I'm stuck in the middle with you,
Stuck in the middle with you.
--------------------------------------
(Sorry, got to go to my job to help pay my share of today's bailout)
here's my song:
make new friends and keep the old
one is silver and the other's gold
and the other one is lead
Now I don't know but I been told
If the horse don't pull you got to carry the load.
I don't know whose back's that strong, maybe find out before too long.
One way or another, one way or another,
One way or another, this darkness got to give.
Now I don't know but I been told
It's hard to run with the weight of gold.
Other times I've heard it said
It's just as hard with the weight of lead.
Yea thats for sure, this Taxpayer fellow must indeed be loaded beyond King Solomons wildest dreams! One thing is certain, its not me, so they can go knock on someone elses door because the only thing behind my door with revenoors' name on it is a pump 12 guage.
I have nothing to offer but my nude pictures Ernest Borgnine . Im broke
Sweet, our kids and grandkids are going to be rich! The government is counting on it, so it must be true.
"Who is this ficticious, Proverbial tax payer that i hear of everyday? Whoever it is, Must have alot of money."
Not anymore. Bernanke has given trillions in taxpayer money to the big banks yet the taxpayers remain poor. So, his next move is to give them some more. Maybe this time it will work.
now this is getting interesting. it's getting beyond mom-n-pop consumer and going for the slice & dice mortgage veg-o-matic machinery.
Freddie and Fannie are probably going to get involved and soon the full court press to lay it all off on mom-n-pop tax payor.
They can keep tacking on 'charges' to the taxpayer for all this BS pump and bailout crap, I got news for them, these crooks arent getting a damn dime from me!
When these banks double (and more?) pledge the same asset to multiple securities, aren't they in essence getting paid twice for the same?
Isn't that like someone personally getting three FULL mortgages on their house? So say it's a $100k house, it's like getting $300k in mortgage loans for that house ($100k from 3 different lenders who have no idea there are other "primary" lean holders as they each thought they were the only one.)
My question is where did the extra $200k go? My guess is it went to the bank executive bonus pool and is gone (distributed to the CEO and such). So there is a huge fraud here with these double and triple resells of the same asset.
Unless I'm missing something?
Think of it as fractional reserve securitization.
The banks counterfeit money
The banks counterfeit commodities
Why not counterfeit mortgages?
It just seems normal for them.
Exactly, and they were only levered 3X on mortgages...they thought they were being conservative. Who'd a thunk that they might have to process a forclosure some day?
"When these banks double (and more?) pledge the same asset to multiple securities, aren't they in essence getting paid twice for the same?
Isn't that like someone personally getting three FULL mortgages on their house? So say it's a $100k house, it's like getting $300k in mortgage loans for that house ($100k from 3 different lenders who have no idea there are other "primary" lean holders as they each thought they were the only one.)
My question is where did the extra $200k go? My guess is it went to the bank executive bonus pool and is gone (distributed to the CEO and such). So there is a huge fraud here with these double and triple resells of the same asset.
Unless I'm missing something"
No, you understand perfectly.
In fact it gets worse. After selling the same mortgage 3 times they buy insurance, in the form of credit default swaps, KNOWING the MBS are going to blow up because they made them that way.
Then they go to the government for a bailout.
It's as if some chiseler bought a house, mortgaged it 3 times for 100% of its value each time, then bought fire insurance from 5 different insurance companies and burned it down.
After pocketing the mortgage advances, plus the insurance payouts, he then goes on TV sobbing about his homeless family and gets thousands of $$$$ in handouts from big hearted people and Habitat for Humanity builds him a new house.
Then he goes on TV again and brags about all the good he does for society, and says the people whose houses got burned down in the fire he started, should suck it up and go get 2nd jobs. Charlie Munger actually said this.
I know you are but what am I ? Im rubber, your glue..
Atkins of Wells on the tube. I'm paraphrasing:
"Everything is fine."
Nothing to see here.
Next story of corruption due up: Fraud at the CFTC. Judges fixing cases in their favor. Isn't NY grand. http://fraudonomics.blogspot.com/2010/10/cftc-judge-claims-colleague-issued.html
CFTC you say ?
"There are two administrative law judges at the Commodity Futures Trading Commission: myself and the Honorable Bruce Levine. On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor. A review of his rulings will confirm that he has fulfilled his vow. Judge Levine, in the cynical guise of enforcing the rules, forces pro se complaints to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case"
http://www.thedailybell.com/1461/Retiring-CFTC-Judge-We-Covered-Up-Marke...
Copy of letter
http://futuresmag.com/SiteCollectionDocuments/Guides_PDFs/Judge%20Painte...
Correct. You beat me to the link. The whole of Wall Street is being revealed. This is really something to watch. Get a big ass fire hose and blow them all out of there already. Good grief!
But some might say it's just the stress talkin'.
@ cdad
thanks for the link. i thought the quote on the top of that blog is interesting:
When you see that trading is done, not by consent, but by compulsion — when you see that in order to produce, you need to obtain permission from men who produce nothing — when you see money flowing to those who deal, not in goods, but in favors — when you see that men get richer by graft and pull than by work, and your laws don’t protect you against them, but protect them against you — when you see corruption being rewarded and honesty becoming a self-sacrifice — you may know that your society is doomed.
Ayn Rand
Atlas Shrugged, page 413
Zzzzzz.....wake me up when there is a real "crisis". You know, the kind that can't be swept under the rug. Another Lehman or Bear Stearns would warrant a wake up. Otherwise, the rest of this stuff is just noise.
Nighty-night, then.
you're right harrywanger, this is just noise. we need to figure out some way to force our "laws" to be enforced. these people need to be in jail, their assets seized. yet they seem to have immunity from all laws, international,federal, and state.
the stink of corruption is gagging me.
Exactly. They get away with this shit all the time. So the government bails them out, people act upset because Fox News or CNN tells them they should be. Then they get confused and turn on Glee reruns. And life is good once again.
Hey! Think the time is right for a palace revolution
'Cause where I live the game to play is compromise solution
Well, then what can a poor boy do
Except to sing for a rock 'n' roll band
'Cause in sleepy London town
There's just no place for a street fighting man
No
*singing along while cleaning 45 auto*
Yes, it does seem that way. So maybe, just maybe, we no longer live in a representative republic and "they" just forget to tell the natives. Probably because the natives would be upset.
After all, if you were able to pull off a bloodless coup under cover of something else, why would you possibly tell the people?
Think about that. Why would you tell people they are no longer "free" (leaving aside the idea that they never were "free" to begin with) particularly if they continue to climb on to their hamster wheel on a daily basis?
Coming soon, The Bloodless Coup.
If you need some help - http://www.mortgagecrime.com/
Well the WH sees no "structural" foreclosure issues. Phew, that was close.
Since we all know the WH always has the back of the middle class, and doesn't just act for the entrenched power base of the kleptocratic class, we can put this issue to bed, n'est pas?
WASHINGTON (AP) -- President Barack Obama's top housing official says lenders are within their rights to resume foreclosures this month despite allegations that they erred in processing documents.
Yes everything seems fine. Millions of fraudulent documents and transactions, business as usual.
I don't like lawsuits. As a taxpayer, I'll agree to a 50% settlement, as long as I can pay them off in crap Mortgage Backed Securities at face value. I presume they won't mind if that leaves me short the MBS.
hmm.. I wonder how the government is going to handle this one
grabs popcorn from bowl*
And the FDIC has how much money? Oh, it's a negative number...
Banking holiday in 3...2...1...
Ahhh Hahahahaha these dogs need to see some jail walls, eh?!
No honor among thieves? Who would have thunk it?
If this is all choreographed by the high command, as some of you think, they must be having more than a few brain farts lately. Sloppy, sloppy, and two weeks before an election. My theory is that Ben and Timmy are shitting bricks.
Maybe Timmy will be the goat. Sure looks that way. Let's help him retrain.
"Would you like some fries with that?"
If you were sentient during the Watergate era (I had many friends and one older brother that were not), this is becoming "deja vu all over again". ;->
So easy to forget that there really is no honor among thieves and much of the action is occurring off stage.
Barliman
here's to me and here's to you; may we never disagree. but if we do ...
... here's to me and to hell with you.
sounds like its time for the sharks and vipers to start eating their own. with apologies of course to all of the sharks and vipers for the unfortunate association with the bankster cartel.
This things like any weapon. Its no big thing till its pointed at you by some crazy thrill seeking motherless fuck with nothing to lose....uh, sorry about that.
Pretty good purge of bank shares there near the close. They must be puking into the XLF's mouth. Sweet. And after expressing all that confidence in the financials.
When do we get to read about the ETF fraud going on on Wall Street?
As a taxpayer may i just say that you muther humpers can just take it off what you owe me and btw I want the rest RIGHT FRIGGIN' NOW!!
Furthermore, until such time as satisfactory proofs regarding title and lien status are given, we recommend you pay your mortgage payments "in-kind" using the following instrument...
another +10
We bought a new home in April 2010...
We financed through the builder who sold the loan to BofA a month later, so BofA "owns" our loan...
Should I be worried?
Nah...nothing to worry about here...nothing to see. Two other banks might claim your home and kick you out...or maybe BofA will simply lose title, but really....why worry?
LOL...Rasna you better ask to see the note ;-)
Thanks Banzi,
Shit! This is just what I need now! Trading is hard enough without this as a personal backdrop.
Fuck the "Where's the Note" email... Just sent a letter Certified Mail Return Receipt Requested... emails are too easy to "lose".
Where's the beef.....err......note?
http://www.youtube.com/watch?v=Ug75diEyiA0
At this point if I went into my back yard and gathered up some fallen sticks to made a camp fire, I don't know if I could prove ownership of it.
So yeah, I'd be worried if I were you. Because who knows who owns what at this point. 300 years of real estate law is now up for grabs and waiting on the Congressional Critters to pass some sort to "mend-a-fence" legislation.
Lynch the Banksters Countrywide....what?
If they pledged the same mortgage 3x, shouldn't there be 2 trusts somewhere who haven't been collecting a monthly mortgage payment on that loan?
Your question was on my mind too. KEEP your eye on MERS. For those who know a little about manufacturing, I believe that MERS would keep track of loans just like BOMs (Bills of Material) keep track of components. For every security created, MERS could have tracked where every loan/title was "assigned". MERS was needed/created to track each loan. When one went bad they could quickly identify which securities the loan had gone into and clean things up...until they couldn't. Now that foreclosures are proceeding I guess that it only took a few weeks to delete the system's duplications.
I have no way of knowing if this is true, but since MERS tracked loans, this capacity is entirely possible.
When you sell the same mortgage 5 times, and the interest rate is only 2% you can make up the payments for a long time out of the money you stole. This is the definition of a Ponzi scheme or pyramid scheme.
Every year you sell a bunch more phony bonds for cash and pay a little more interest until the whole scheme collapses, as the subprime morgage business did in 2006.
In the meantime you buy insurance, or credit default swaps, for 5X the number of mortgages you are in hock for and clean up again.
Plus of course the government bailout money which you lend back to the government for another free profit.
Sweet!
LOL, love the old Brooklyn Bridge note!! Ahhh.... Those were the days when you only got screwed for a couple of thousand.
Just when you thought it couldn't get more interesting. So they've leveraged mtgs. 3 X and what about the MBS on top of that... or no?
Paper GLD is leveraged 100 X 1, are these guys slow or what?
I see a lot of leveraged and debt and a house of cards, and a run on the banks.
Those are the MBS. If you stick the same mortgage into 3 different mortgage backed securities you can sell it 3 times and no one's the wiser as long as you don't show anyone the paperwork.
The bankers are starting to feed on each other.
ML extricated. FRE and FNM issues addressed stealthily by a multi-trillion dollar shuffle of MBS ownership.
Direct Stimulus - pay off $xT of people's mortgages so they can spend, save, or sell. That should drive things up a bit and clean up "all" the balance sheets but one. Don't be dropping dollars from a helicopter when you could be scooping up debt with a frontloader.
Debt, credit, leverage, securitization, fractional banking, derivitives, - get rid of all of it.
Don't be getting all deep on this, it can't possibly be that simple.
-profd
Yeah i saw that episode of 24 too!
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