Meet The Foreclosure "Experts": Hair Stylists, Walmart Floor Workers And Assembly Line Workers, All Hired To "Defraud Homeowners"

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Wed, 10/13/2010 - 15:56 | 647109 Citizen of an I...
Citizen of an IKEA World's picture

This reads like a bad Scott Turow novel (but I repeat myself).

Wed, 10/13/2010 - 16:26 | 647202 mikla
mikla's picture


Nobody would otherwise believe a plot like this a few years ago.  Unbelievable.

Comically, things are actually much darker than this article states.

Too surreal.

Wed, 10/13/2010 - 16:43 | 647296 FEDbuster
FEDbuster's picture

When CNBS did the show called "House of Cards" on the mortgage mess, there was a guy in CA who had started some chop shop HELOC/refi company which made him millions of dollars in 4 or 5 years.  If I remember correctly, he had been a Mercedes Benz salesman who noticed many of his buyers were in the mortgage business.  At the height of the cash out refi craze, that company would offer jobs to the pizza delivery guys bringing them pizzas to the office.

Wed, 10/13/2010 - 17:43 | 647455 Rusty Shorts
Rusty Shorts's picture

Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself.
- Mark Twain

Wed, 10/13/2010 - 17:57 | 647500 the rookie cynic
the rookie cynic's picture

Fannie Mae and Freddy Mac intiated the crap-ass mortgages (a.k.a Casino chips) which the To-Big-Too-Fail banks promptly scooped up to play high-stakes poker in the leverage-up-'til-the-cow-come-home market (a.k.a the Wall Street casino). The SEC looked the other way (as usual) and the middle-class tax payer is left holding the bag. Now not only to we not know what anything's worth (due to no mark to market), but we don't even know WHO owns it.

If that's truth, justice, and the American way, I'm ready to emigrate.

Wed, 10/13/2010 - 18:51 | 647683 macholatte
macholatte's picture


Fannie Mae and Freddy Mac intiated the crap-ass mortgages...


Close but not quite on target.

The mortgage companies (banks, Country Wide, Wells Fargo, etc.) "initiated" the loans. They had the retail outlets where the consumers went. It was Freddie and Fannie who bought the paper from the mortgage companies.

That's how the daisy chain worked. So the guys who "initiated" the loans might have paid money to escrow to get the loans closed, but got their money back, plus fees, after the loan was sold to Freddie and Fannie or whatever other "major investor" there was like an insurance company or Ice Land. Some would keep their name on the loans called "warehousing".

Like all ponzi's, the last guy holding the paper, had too much in his warehouse, got hammered. There was nobody to peddle the paper to and no real cash to support the inventory.

As I understand it, the loans became securitized like shares of stock and sold off by and to the great wall street fog.


Wed, 10/13/2010 - 20:20 | 647858 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

Those of you who are new here and don't understand how mortgages, wallstreet, CDO's, CDS's all were wrapped together.  This 10 min video will save you some time.

Now it needs to be updated with all the fraud that took place in securitizing all of these products.  And who actually "really" owns the note when someone isn't paying their mortgage.  It used to be easy when the mortgage checks were still arriving but then suddenly becomes obscure once the losses need to be assigned or the house foreclosed.  

Crazy how no matter what the problem is, it's never the Banks holding the blame, it was always someone else's fault.




Wed, 10/13/2010 - 20:35 | 647929 samsara
samsara's picture


Fanny and Freddie were used by the Private Banks as a repository to off load the toxic waste off the banks books to the Taxpayer.

How ?  Who Helped?  Try this one.

JAMES B. LOCKHART. Jim was the head of Fannie Mae,  He oversaw the transfer of debt off the banks books onto Fannies (ie Your Debt and My Debt).       What reward did Jim get for Transfering The Wealth? ( ie Debt from Banks to YOU) ? James B. Lockhart III to become Vice Chairman of WL Ross & Co.   You see,  for these guys, doing a stint in the Gov or Regulatory agencies is like doing time in the service to their "Country" (ie Corporations).    After doing his stint in Fanny,  Jimmy Lockhart was rewarded with a 'retirement' at Wibur Ross's company.   'You did a good job for us Jimmy,  You get a corner office and a bimbo secretary with kneepads for the rest of your days.'
Wed, 10/13/2010 - 17:30 | 647421 B9K9
B9K9's picture

What's so surreal about the US mortgaging its entire national economy just a few short years after we reached peak domestic oil production? As real incomes stagnated, we went on a 30+ year borrowing binge, living large while we still had our good name & the 'credit card' was still widely accepted.

What's really interesting is that the 80s (S&L), 90s (.com) and now 00s (housing) all relied on wide-spread, systemic fraud in which to boost and maximize available credit leverage. If there was ever any proof that the US has simply been resting on its laurels since the 70s, and hasn't come up with a competitive, productive economy that can actually provide anything close to level employment, this is it.

The entire exercise of the last two years have been nothing but a mad attempt at re-blowing a bubble, anywhere, in which to cover up the sins of the past. KD is spot on when he notes that the underlying mortgages where never expected to be paid (off). The entire game was based on recycling total indebtedness in a never ending series of re-securitization schemes.

Ben, Timmy, the whole crew, has known all this from the git-go. They are now literally in a race against time - if they can't get something kick-started in pretty short order, the mortgage mess is finally going to catch up and put this mofu over the tipping point.

It's not a 10, or even 20 year, hang-over that is staring us in the face. More like 30+ years of flying in the face of physical reality.

Wed, 10/13/2010 - 17:35 | 647434 RichardENixon
RichardENixon's picture

They are now literally in a race against time - if they can't get something kick-started in pretty short order, the mortgage mess is finally going to catch up and put this mofu over the tipping point.-- They will simply take all this garbage from the banks' balance sheets onto the taxpayers'. No other way out. Just a question of how they try to sell it. I anticipate words to the effect that we have to keep working Americans from losing their homes.

Wed, 10/13/2010 - 17:54 | 647482 the rookie cynic
the rookie cynic's picture

Love the big picture analysis.

If they do manage to inflate another shadow economy/bubble, do you have a best guess as to the asset class? Alternative energy, T-bills...?

One things for sure, it sure ain't Main Street.

I nominate 1969 for "Peak U.S.A".

Wed, 10/13/2010 - 20:17 | 647897 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

Alt Energy/Cap & Trade.  Carbon Offsets.

When I think of trading in Carbon offsets, this is all that comes to mind for First Bank of Carbon offset trading.  Just add MERS 2.0, Walmart greeters, a couple sun servers and Mary Schapiro.   Stir in some animal spirits and the new normal and viola!


Wed, 10/13/2010 - 17:59 | 647509 CustomersMan
CustomersMan's picture


Don't agree.


We developed the Internet here in the U.S.A. and it has in fact changed the world for the better.


That alone is more than anyone else has done in the same time frame.


Don't be sooo quick to write us off as a bunch of douche-bags.

Wed, 10/13/2010 - 18:26 | 647599 Rusty Shorts
Rusty Shorts's picture

Dude, the military developed the internet and cellular infrastructure, and these will be our undoing in the end...just for kicks, what is the #1 business on the internet? you guessed it, porn.

Wed, 10/13/2010 - 19:20 | 647771 breezer1
breezer1's picture

religion i believe, if you call it a business.

Wed, 10/13/2010 - 18:56 | 647701 traderjoe
traderjoe's picture

It's my argument that most of our innovations over the past couple of decades have actually reduced employment. Efficiency is by definition the reduction of costs, and what is the best way to reduce costs then fire people?

Overnight/air-freight shipping => offshore factories

Online retailing => gutting main street retailers

And on and on. Sure, it means that the precious few at the top can leverage their gains further. But the middle class gets squeezed.

And then the focus on consumer electronics fractures families and communities and keeps people from really being involved with each other. I'm not some "good ole days" person, but I agree with Peak America.

And our sense of arrogance about our status as King of the Hill will also lead to our downfall. That is an age old meme...

Wed, 10/13/2010 - 19:23 | 647783 RecoveringDebtJunkie
RecoveringDebtJunkie's picture

Bingo. Not just America though, but all developed countries with capitalist economies (which is not necessarily the same as a "free market" economy).


Wed, 10/13/2010 - 16:28 | 647224 Saxxon
Saxxon's picture

JPM got it's fat ass sold today.

I know it has been said over and over, but I will add to the chorus - someday very soon I expect to wake up and see the Index futes down 3% across the board. 

They tried to yesterday but got the hose again.

All in SPXU in my gambling account.

Wed, 10/13/2010 - 16:35 | 647268 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

can you say silver squeeze.....


Wed, 10/13/2010 - 17:01 | 647350 let x equal x
let x equal x's picture

If you're a compulsive gambler, like me, there's BGZ.

Wed, 10/13/2010 - 17:20 | 647393 Saxxon
Saxxon's picture

I'll remember that x=x; but SPXU has 3x leverage and that is enough juice for me.

Wed, 10/13/2010 - 18:00 | 647510 PuppetRepubl1c
PuppetRepubl1c's picture

Shorting the POMO steamroller is insanity, the truth is it will be very hard to predict when this thing collapses. 


Personally i think gold is a better investment because you don't have to time it as much, if you are holding gold and the spx collapses you are fine, if you are in SPXU timing is huge as the FED can at any time flatten you with another $50 billion POMO.

Wed, 10/13/2010 - 17:51 | 647480 CustomersMan
CustomersMan's picture

We don't need no Stinkin Banks !!

Wed, 10/13/2010 - 16:38 | 647264 AbandonShip
AbandonShip's picture

Litton Loan Servicing claims its "People" are its Top value!!!!!    YOU CAN'T MAKE THIS SHIT UP!

Wed, 10/13/2010 - 16:54 | 647321 igarciao
igarciao's picture


Wed, 10/13/2010 - 17:09 | 647372 AbandonShip
AbandonShip's picture

Oh and I have saved a picture because I'm sure Litton will update or take down that link tonight.

Wed, 10/13/2010 - 19:20 | 647773 thermroc
thermroc's picture

All the boardroom chairs are empty!

Quick men, to the lifeboats.

Wed, 10/13/2010 - 19:26 | 647792 thermroc
thermroc's picture
"Teamwork - Have the self-confidence to involve everyone and behave in a boundary-less fashion" Ha ha
"Initiative - Be BOLD in our actions, our goals, and our vision of the future" Ha ha ha

"Ethics - Commitment to honesty and integrity" HA HA HA HA

"Community - Give something back to your community" HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA HA  It hurts, it hurts!


Wed, 10/13/2010 - 17:40 | 647444 CustomersMan
CustomersMan's picture


The persistence of a repetitive response after the cause of the response has been removed, or the response continues to different stimuli.
Wed, 10/13/2010 - 15:56 | 647110 outamyeffinway
outamyeffinway's picture

Yeah, I need a lid snap and could you sign here, here annnnnnd here.

Sank you so much!

Wed, 10/13/2010 - 15:57 | 647111 Ragnarok
Ragnarok's picture

This is a message from the emergency broadcast system...

Wed, 10/13/2010 - 16:19 | 647199 MsCreant
MsCreant's picture

This is NOT a test.

Wed, 10/13/2010 - 16:00 | 647124 bob_dabolina
bob_dabolina's picture

Well thats it...

I've heard it all. This would be funny if it wasn't true, but it is true, and that scares me.

We need to re-check the people at our nuclear facilities.

Wed, 10/13/2010 - 16:04 | 647141 reading
reading's picture

They're fine...we put the cosmetologists on that.


Wed, 10/13/2010 - 16:06 | 647158 bob_dabolina
bob_dabolina's picture

Yea...the blind cosmetologists at the rate this type of news comes out

Wed, 10/13/2010 - 16:08 | 647163 NotApplicable
NotApplicable's picture

Those people have to be licensed, after all.

Wed, 10/13/2010 - 16:32 | 647230 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

licensed for what???? to wear a thong?


Hell, if they can sign their name in crayons, the automated machine rubber stamps that license.. no different then the house deeds

Wed, 10/13/2010 - 16:27 | 647236 reading
reading's picture

Exactly, they went to schooool too...we paid for that too!

Wed, 10/13/2010 - 17:16 | 647381 Commander Cody
Commander Cody's picture

You have no idea what it takes to operate a nuclear plant, so shut up.  And what is it that you do?

Wed, 10/13/2010 - 16:00 | 647126 midtowng
midtowng's picture

Just wait until the fraud of the mortgage creation is exposed. We have massive amounts of fraud with two presidential administrations completely asleep at the wheel.

Wed, 10/13/2010 - 16:03 | 647142 Boilermaker
Boilermaker's picture

If you watched "House of Cards" on CNBC, there was a 'quickie loan' guy that said he was hiring pizza delivery guys to do the loans and they were shagging $20k per month.

Yea, we've jumped the shark, leather jacket on and all.

Wed, 10/13/2010 - 16:04 | 647146 JLee2027
JLee2027's picture

These are state issues, not federal ones.

Wed, 10/13/2010 - 16:13 | 647177 Crab Cake
Crab Cake's picture

If you haven't gotten the memo, then you should know that there are no more "states", just federal jurisdictions, and the 10th amendment got buried in a pit filled with lyme.

Everything is a Federal issue in the USSA.

Wed, 10/13/2010 - 16:29 | 647244 JLee2027
JLee2027's picture

I understand your anger, but some things still hold true. We are heading into the storm...and America will survive and be re-born. This I promise you.

Wed, 10/13/2010 - 18:11 | 647548 Arkadaba
Arkadaba's picture


Just had to

Wed, 10/13/2010 - 18:12 | 647549 Arkadaba
Arkadaba's picture

Becuz ....

Wed, 10/13/2010 - 23:45 | 648323 i-dog
i-dog's picture

"America will survive and be re-born. This I promise you"

Too late. Your promise is not worth the electrons it's written with. I admire your faith, but not your logic.

Thu, 10/14/2010 - 04:13 | 648586 Hephasteus
Hephasteus's picture

Not if we sew it's cunt shut.

Wed, 10/13/2010 - 16:50 | 647313 papaswamp
papaswamp's picture

If the mortgages are federally backed I disagree.

Wed, 10/13/2010 - 17:49 | 647477 Crime of the Century
Crime of the Century's picture

Quite so - that is the reason Timmy is backing F&F to the hilt. It makes the Gummint an 800lb gorilla in the mortgage mess.

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