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Senator Franken Sends Letter To Bernanke, Bair And Holder Demanding Criminal Charges For All Responsible For Biggest Alleged Mortgage Fraud In History

Tyler Durden's picture


The biggest financial story which continues to get absolutely no mention on CNBC just got its latest multi-step escalation: Senator Al Franken has just blasted a letter to Tim Geithner, Shaun Donovan, Secretary of Housing and Urban Development, Eric Holder, John Walsh, Controller of the Currency, Sheila Bair, and, drumroll, Ben Bernanke, telling the recipients that "each of your agencies has an important role to play in addressing this egregious situation and holding all appropriate actors fully accountable. As such, I respectfully request that you collaborate to conduct a thorough investigation into the alleged misconduct. As part of this investigation, it is crucial that Ally and its employees are held fully accountable for any criminal misconduct." Since if this pervasive mortgage fraud is more than just alleged, the stink will reach to the very top of places like JP Morgan, Ally, and possibly every single bank that has been in the mortgage origination business, something tells us that Ben Bernanke, whose job is precisely to protect the banks' interests will not rush into any investigation for the duration of FASB's existence. It gets better: "Additionally, all homeowners who may have experienced illegitimate foreclosure sales, those who have been forced to defend against illegitimate foreclosure actions, and those who have been harmed must be identified. These individuals must receive proper restitution and compensation, as provided for under the law." And the punchline: "It is critical to confirm that no loans provided through the FHA or in conjunction with the HAMP program were associated with Ally's misconduct." Yes, oddly enough the government is about to lose even more credibility once it is discovered that it worked in collaboration with the biggest mortgage fraud scheme in history.

The letter concludes:

"Concerns have been rasied that Ally's practices are not an anomaly in this industry, and that these bad practices are used by numerous other companies as well. Therefore, I request that you report on the actions your agencies are taking (and plan to take) to improve oversight of mortgage servicers overall. In particular please inform me of steps that you will take to ensure that similar misconduct is not currently occurring within other mortgage service companies and how future improper activity can best be prevented."

We will spare you the Donkey Kong graphic today.

Full letter:



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Thu, 09/30/2010 - 11:08 | 615435 Steak
Steak's picture

a random thursday suprise

quick and dirty (an eclectic playlist):

and everyone lay out the welcome mat for Mr. Whalen as well...i for one am very happy to have him on the site :D

Thu, 09/30/2010 - 11:40 | 615576 kengland
kengland's picture

Irrelevant until the most pertinent question is asked...


Who received the funds when the foreclosure was sold. I still have not seen this question asked.

Thu, 09/30/2010 - 12:34 | 615749 VWbug
VWbug's picture

Who received the funds when the foreclosure was sold. I still have not seen this question asked.

i'm pretty sure that Ally and JPM etc are stealing the funds and the owners of the mortgages are too stupid to realize it.

/sarcasm off

Thu, 09/30/2010 - 11:51 | 615610 Nolsgrad
Nolsgrad's picture


Thu, 09/30/2010 - 12:03 | 615653 hbjork1
hbjork1's picture

Franken certainly delivers some wonderful "one-liners".

Thu, 09/30/2010 - 13:58 | 615804 99er
99er's picture

And so a Black Swan appears in Washington. Who cudda known? Another Black...William J.

Speaking truth to power.

Thu, 09/30/2010 - 14:26 | 616107 vachon
vachon's picture

Good to see you, steakz.

Thu, 09/30/2010 - 11:08 | 615436's picture

It would be a lot better if the letter came from a more credible source than the abysmal Franken.

Thu, 09/30/2010 - 11:13 | 615462 mikla
mikla's picture


Franken is a clueless populist idiot, but something like this *has* to come from somebody like that, because anyone with a brain would understand the implications of what's about to happen from such a letter.

I'm glad the letter was written -- consequences are inevitable.  However, we can all agree that it's because Franken is such an idiot that it was possible for the letter to be written at all.

Thu, 09/30/2010 - 11:14 | 615464 Dr. No
Dr. No's picture

Excellent point.

Thu, 09/30/2010 - 11:26 | 615523 Shameful
Shameful's picture

Well I'm sure after a few hard nosed gentlemen show up to his home late at night and explain the situation to him that he will see the error of his ways.

"It's not like SNL, funny man.  Messing with our money is like messing with our emotions"

Thu, 09/30/2010 - 11:26 | 615524 alien-IQ
alien-IQ's picture

"Franken is a clueless populist idiot"

yes, heaven forbid a politician should attempt to do anything that benefits the people. how dare he forget who his masters are. 50 lashes on the white house lawn for this populist scum.


Thu, 09/30/2010 - 11:31 | 615536 docj
docj's picture

And if Fart-face had sent this "strongly worded letter" a year ago it probably would have done some good.  And if he'd followed-it up with a "and let's see what the Fed and the GSE's like Fan/Fred are doing to aid and abbet this nonesense" letter that might have helped, too.

But as someone who's been on this site as long as have I you should be pretty accutely aware that the ZH community has a pretty darn low tolerance for BS populist election-silly-season grandstanding - regardless of the grandstander.

Thu, 09/30/2010 - 11:34 | 615551 Cognitive Dissonance
Cognitive Dissonance's picture

Hey, speak for yourself.

I happen to like "BS populist election-silly-season grandstanding". It makes the silly season that much more enjoyable. BTW, it's just God's gift that Halloween comes around a week before the grand finale. :>) 

Thu, 09/30/2010 - 11:35 | 615556 docj
docj's picture

Heh - fair enough.

I mean, I like it too - like I enjoy good por... uh, streaming video on the internet.  Doesn't mean we have to take is seriously though, right?

Thu, 09/30/2010 - 12:28 | 615731 pan-the-ist
pan-the-ist's picture

Eat a dick docj.  Franken would school you in a debate.

Thu, 09/30/2010 - 13:35 | 615942 patience...
patience...'s picture

ZH seniority doesn't necessarily equate to a correct point of view either.

Thu, 09/30/2010 - 15:41 | 616423 docj
docj's picture

Fuck you very much, asshole.

I'll take the other side of that bet.  Personally.

Thu, 09/30/2010 - 11:31 | 615541 JLee2027
JLee2027's picture

As terrible as Alan Grayson and Al Franken are in other areas, there are correct here.

But I don't think we can avoid "The Great Reset" which is approaching.

Thu, 09/30/2010 - 11:37 | 615566 mikla
mikla's picture

The assertion is that he doesn't know what he's doing, and that he doesn't understand the implications from his decision.

Rather, he is merely posturing for "populist market position" -- establishing a base -- not for any noble purpose, nor for anything to "benefit his people".

However, yes, he serves a purpose:  I'm glad the letter was written, and likely some good will come of it.  In the end, Smeagol "did good" but it was not with his intention to "do good".

Thu, 09/30/2010 - 13:02 | 615851 Ripped Chunk
Ripped Chunk's picture

"Franken is a clueless populist idiot"  But I am sure your credentials are much more impressive mikla. Lets hear them. Otherwise STFU

Thu, 09/30/2010 - 11:26 | 615525 Cognitive Dissonance
Cognitive Dissonance's picture

However, we can all agree that it's because Franken is such an idiot that it was possible for the letter to be written at all.

Point taken.

However is it not always the case that when speaking truth to power is truly a revolutionary act that the deaf, blind and stupid must step up to bat for the more "intelligent", "wise" and "informed" of the nation.

Thank God for Al Franken.

Thu, 09/30/2010 - 13:57 | 615987 Problem Is
Problem Is's picture

"intelligent", "wise" and "informed"

You Mean Obummer, Dodd and Frank, CD?
They are all bought and bribed by TBTF to be "deaf," "stupid" and "blind"...

Current US political system:
Rock, paper, scissors = Systemic corruption, useful idiots, bribes...

Useful idiots (Obummer, Dodd, Frank) cover systemic corruption... Bribes cut through useful idiots...

Thu, 09/30/2010 - 15:07 | 616302 apberusdisvet
apberusdisvet's picture

What everyone seems to be missing is that both Grayson and Franken are useful Progressive idiots that may be merely "stalking horses" for future over-regulation/nationalization of the banksters so that the endgame of the Marxist utopia can occur.

Thu, 09/30/2010 - 12:25 | 615708 hbjork1
hbjork1's picture


Yep.  Ever read the Nathan Hale story.  That guy was an idiot!  Admitting all as he did, throwing away his life and all that he would have had if he had played the game a little smarter.

Having been around through the WWII and since, IMO, Harry Truman was an idiot.  He was so poor when he went back to civilian life that he was only able to have his "Excellent Adventure" because Chrysler gave him a car.  If, in office, he had played his cards right, he could have been a rich man.

People who sacrifice themselves for the benefit of others are surely "Idiots" because they don't understand that the sheeple just don't really give a damm.  

Thu, 09/30/2010 - 13:00 | 615846 Ripped Chunk
Ripped Chunk's picture

"Franken is a clueless populist idiot"  But I am sure your credentials are much more impressive. Lets hear them mikla. Otherwise STFU

Thu, 09/30/2010 - 14:20 | 616073 MrBoompi
MrBoompi's picture

Since there is no information presented to back up your claim Franken is an idiot, I'll assume your post is just worthless partisan hackery.


And maybe next time you can list the Republican lawmakers who have been doing such a bangup job with our economy.  It will be a short list indeed.



Thu, 09/30/2010 - 15:08 | 616311 mikla
mikla's picture

I'm a little surprised at the direction of the thread.  However, since you use whole sentences, I will attempt to be constructive in response, while including responses to other thoughts in this thread (I don't see the need to reply to each comment).

Since there is no information presented to back up your claim Franken is an idiot, I'll assume your post is just worthless partisan hackery.

My response (above):

The assertion is that he doesn't know what he's doing, and that he doesn't understand the implications from his decision.

I don't need to "prove" he's an idiot.  I merely asserted that this train will now leave the station, headed in a direction that Franken doesn't understand (and probably does not want).  I could be wrong (maybe Franken is a genius), but that's (mostly) irrelevant.

For "supporting information" to my "idiot" claim (leaving aside his background and nature in which he got his seat), I would draw attention to the fact that Franken, as a democrat, is historically tied to support of Fannie&Freddie, the MBS market manipulation, and the Government's regulatory roles.  When Franken realizes that he just called them fraudulent in design, form, and function (he doesn't realize he just said that, but that's where this is going), IMHO he will have second-thoughts.

(Both parties are corrupt when it comes to these programs, but they were principally a democrat playground.)

(not to me, but in Franken's defense):

Franken would school you in a debate.

I take that to mean, "You are a poopie-head!".  Yes, I am a poopie-head.

But I am sure your credentials are much more impressive mikla. Lets hear them. Otherwise STFU

I make assertions.  You can respond/question/challenge them, or ignore them.  Credentials are irrelevant.  Clearly, Franken is a Senator, so if credentials were important, then none of us would question him.

However, I assure you that I have many mail-order PhDs from non-acreddited institutions (too many to list here).

People who sacrifice themselves for the benefit of others are surely "Idiots" because they don't understand that the sheeple just don't really give a damm. 

Again, the assertion is that he is *not* sacrificing himself.  He is attempting to establish market position (build a populist support base).  Pretty much all politicians do this.  In Franken's eyes, Franken is behaving with the expectation of "maximum upside" for Franken, and "minimum downside" for Franken.  (No biggie -- almost all politicians do this.)

is franken a populist or a you know the difference?

Franken is both.  Populists attempt to benefit from riding the waves of an angry mob.  That's the motivation for Franken's letter.  Progressives attempt to re-distribute wealth from the "undeserving" to the "deserving".  That's Franken too (e.g., he's a liberal democrat).

We can agree that we are pleased Franken wrote this letter.  We can disagree on whether we want Franken over to our houses for dinner.  My amusement is that Franken has no idea what he's attempting to unleash.  Perhaps you think he understands?  Great.  Then he'll be happy when he gets it.

Thu, 09/30/2010 - 15:33 | 616391 Ripped Chunk
Ripped Chunk's picture

You are correct. Credentials are not required from Trolls. It's a waste of time.

Thu, 09/30/2010 - 15:55 | 616461 docj
docj's picture

Franken would school you in a debate.

That was actually directed at me, but thanks for responding in a slightly more temperate way than did I.  Having to deal with airport security, particularly at Logan, tends to turn my disposition to a darker side.

As to the "debate challenge", I would be more than happy to put-up my ScM (Mathematics) and PhD (Engineering) from Brown against Franken's BS in General Studies from Harvard.

Thu, 09/30/2010 - 14:20 | 616076 greyghost
greyghost's picture

is franken a populist or a you know the difference? are you aware that the populist movement was co-oped by the progressives such as teddy roosevelt and woodrow wilson who gave us the federal reserve. wait does that mean the bankers front run the populist movement to death? does that mean there was not a dimes worth of difference between teddy on one side and woodrow on the other......damn how times don't

Thu, 09/30/2010 - 11:08 | 615438 Dr. No
Dr. No's picture

"Senator Franken" at first I thought is was a joke, but being from Minnesota, realize it really is a joke.

Thu, 09/30/2010 - 11:37 | 615562 E pluribus unum
E pluribus unum's picture

Looks like another Minnesota Senator is about to die "unexpectedly" in a plane crash "accident".

Thu, 09/30/2010 - 11:58 | 615626 packman
packman's picture

Why?  He's pointing the finger at Ally, for Chrissake.  WTF does Ally have to do with the housing bubble?  Very little.  The real culprits - JPM, GS, Citi, etc. - I'm sure are quite applauding Franken's little red herring attempt.


Thu, 09/30/2010 - 12:32 | 615746 hbjork1
hbjork1's picture


1st and apology. I accidently hit the junk butten while going for "reply".  No criticism intended.

IMO, he is going after the domino that he can make a strong case against.  Once precident is established, it will be a guide for the future.

Thu, 09/30/2010 - 12:37 | 615762 Cognitive Dissonance
Cognitive Dissonance's picture

You can always "un-junk" someone you junked. Just hit the button again.

Thu, 09/30/2010 - 14:22 | 616085 hbjork1
hbjork1's picture


Thanks for the "unjunk" note.

Thu, 09/30/2010 - 12:37 | 615763 DaveyJones
DaveyJones's picture

was thinking the same thing.  Ally is the Deepwater Horizon of this mess. I am sure washington and the bankers will come up with their corexit in no time.  

Thu, 09/30/2010 - 13:04 | 615852 Ripped Chunk
Ripped Chunk's picture

Governor Ventura

Thu, 09/30/2010 - 11:10 | 615441 ATM
ATM's picture

The government IS mortgage fraud bitchez.

Thu, 09/30/2010 - 13:59 | 615990 hedgeless_horseman
hedgeless_horseman's picture

Yes, oddly enough the government is about to lose even more credibility once it is discovered that it worked in collaboration with the biggest mortgage fraud scheme in history.

Negative credibility to go with negative interest rates.

Thu, 09/30/2010 - 13:59 | 615993 Problem Is
Problem Is's picture

Fact, ATM...

Thu, 09/30/2010 - 11:10 | 615447 Everyman
Everyman's picture

I don't like Senator Fraken, however I fully support him on this.


But it will go nowhere.

Thu, 09/30/2010 - 11:20 | 615497 spekulatn
spekulatn's picture

Smoke and mirrors. Bullshit. Kacka de agua. Poop.


Barney needs a first down and fast. He is in danger of losing the game.


The good people of Mass. have the plunger and are ready to flush.

Thu, 09/30/2010 - 11:35 | 615558 snowball777
snowball777's picture

The good people of Bost-consin kindly request that you pull your head out of your agua de caca.

Thu, 09/30/2010 - 11:56 | 615624 spekulatn
spekulatn's picture

A sphincter says what?

Thu, 09/30/2010 - 12:46 | 615806 snowball777
snowball777's picture

Don't bring your Mom into this.

Thu, 09/30/2010 - 11:10 | 615448 cossack55
cossack55's picture

My question:  Just how much credibility do you think the goobermint has left. 

Thu, 09/30/2010 - 11:11 | 615449 TradingJoe
TradingJoe's picture

Saw this, it all starts with "The Honorable blabla" none of these scumbags is honorable or honest or truthful so why "honor" them, JAIL JAIL JAIL! I say! 

Thu, 09/30/2010 - 11:16 | 615477 Calculated_Risk
Calculated_Risk's picture

++ see below ;)

Thu, 09/30/2010 - 11:11 | 615452 Ragnarok
Ragnarok's picture

Franken is a laughing-stock in search of legitimacy. 


I like the press though...

Thu, 09/30/2010 - 11:18 | 615489 Joe Davola
Joe Davola's picture

Well done, never thought I'd see Franken and laughing in the same sentence.

Thu, 09/30/2010 - 11:22 | 615505 merehuman
merehuman's picture

Its a frankenmarket, the dead can walk, who knew?

Thu, 09/30/2010 - 11:12 | 615455 Dixie Normous
Dixie Normous's picture

Animal House Student Court clip:

No difference.

Thu, 09/30/2010 - 11:12 | 615456 carbonmutant
carbonmutant's picture

APPL diving, Market following...

Thu, 09/30/2010 - 11:12 | 615458 Cognitive Dissonance
Cognitive Dissonance's picture

This morning on CNBC, around a little after 7 am, Joe mentions something about JPM suspending foreclosures. Immediately he alludes that the reason was to curry favor with the Obama Admin. Everyone else nodded their heads in agreement. Not a word about paperwork problems or fraud.

Not a word.

Thu, 09/30/2010 - 11:13 | 615459 Dr. Copper
Dr. Copper's picture

Oh boy he really told them...


Seriously is this even news?  Bernanke probably chucked it in his waste basket without even opening it.

Thu, 09/30/2010 - 11:18 | 615488 Dr. No
Dr. No's picture

Actually, I bet Timmah (his secretary, not Secretary) chucked it before it even got to his desk.

Thu, 09/30/2010 - 11:23 | 615506 ZakuKommander
ZakuKommander's picture

Wow.  A Strongly Worded Letter!  

Next: Will Timmeh & Co. be threatened with . . . the Comfy Chair?

Thu, 09/30/2010 - 12:58 | 615841 HonestJohn
HonestJohn's picture

no, first will be.....the soft cushions!


Thu, 09/30/2010 - 11:14 | 615460 Dr. Hannibal Lecter
Dr. Hannibal Lecter's picture

My dear friends,

While this is a noble cause and is with merit, fuck Senator Al Franken with all the little dumbass needle dicks from Minnesota that voted this asshat into office.  May he rot in Hell.

Warmest regards,





Thu, 09/30/2010 - 11:24 | 615517 Dr. No
Dr. No's picture

In defense of many minnesota voters, Frankin did not win the popular vote.  Franken won with a small minority vote along with a bunch of fraudulent votes to take the win.

Thu, 09/30/2010 - 11:29 | 615531 Shameful
Shameful's picture

Election fraud is a staple in the US.  Hell look at Kennedy, clear as day he and his rigged the election.  There is even a real dispute about it.  Rigged elections go back to at least Rome.  Besides who are we to take away the right to vote form the dead and fictional people?

Thu, 09/30/2010 - 12:10 | 615676 ZakuKommander
ZakuKommander's picture

Kinda like Bush, huh?

Thu, 09/30/2010 - 12:25 | 615725 pan-the-ist
pan-the-ist's picture

Franken won several times.

Norm Coleman is a fuckin crybaby.

Thu, 09/30/2010 - 11:42 | 615581 Jim in MN
Jim in MN's picture

Your brain is so small, if it was on a razor blade it would be like a pea rolling down a sixteen lane highway.

And your dick is so small if it was next to a pixel it would be like a beach ball next to Jupiter.

You wouldn't know electoral democracy if it pulled up your skirt and stapled a chad to your ass.


A Minnesota Voter

Thu, 09/30/2010 - 14:04 | 616002 Problem Is
Problem Is's picture

"Your brain is so small... your dick is so small..."

I thought you were talking about Uncle Jamie and Aunt Lloyd's nephew:

Timmay G...

Thu, 09/30/2010 - 11:14 | 615461 Calculated_Risk
Calculated_Risk's picture

Bernanke is the problem!


And to put honorable before any of these theiving whores names makes me want to puke and shit at same time from revulsion!

Thu, 09/30/2010 - 11:24 | 615515 Xedus129
Xedus129's picture

and pee? gotta hit all the orifices

Thu, 09/30/2010 - 11:15 | 615463 aint no fortuna...
aint no fortunate son's picture

Holder hasn't done shit to take down the 20 or 30,000 criminals who took  down the whole house in 2008.. why the fuck would anybody expect him to do shit now? I don't even think he knows where the fucking DoJ is located.

Thu, 09/30/2010 - 11:57 | 615625 Kobe Beef
Kobe Beef's picture


But there's some REALLY capital D-Dangerous pot smokers in CA and antiwar activists to watch out for nowadays, so you can see why he's too busy to investigate crimes involving trillions of dollars in fraud & a literal daylight robbery of the US Treasury.

Hey, we all got priorities, you know--defending freedom ain't easy.

"Justice" in America is a f^cking joke.

Thu, 09/30/2010 - 18:28 | 616863 StychoKiller
StychoKiller's picture

Don't forget:  Prosecuting AZ for enforcing Federal Immigration law is chewing up a lot of Holder's time!

Thu, 09/30/2010 - 11:14 | 615466 UGrev
UGrev's picture

Al Franken: "Oh shit.. we're gonna get crushed on Nov 2nd. I need to do something to make myself look good.. "

***ZeroHedge reports on fraudulent mortage activities***

Al Franken: "Eureka! I better pen this letter before the other mofo's catch on to this. I'll look like a G-Damn hero to the zombies, instead of the clown I am". 


Posture, posture...Al, you fucking shit scooper. You're a day late and trillions short. 

Thu, 09/30/2010 - 18:30 | 616867 StychoKiller
StychoKiller's picture

Franken ain't up for re-election just yet.

Thu, 09/30/2010 - 11:14 | 615468 awgee
awgee's picture

It is not mortgage fraud when someone loses their home to foreclosure because they have not paid their mortgage payments.

Thu, 09/30/2010 - 11:17 | 615484 Dr. Hannibal Lecter
Dr. Hannibal Lecter's picture

My dear friend,

You no doubt are a dumbass needle dick from Minnesota.

Warmest regards,


Thu, 09/30/2010 - 11:18 | 615487 Ragnarok
Ragnarok's picture

It is when the person foreclosing on you doesn't own the loan!

Thu, 09/30/2010 - 11:55 | 615621 awgee
awgee's picture

Do you know that JPM does not own the loan?  Yes, JPM is going to make sure that they do own the loan and make sure their procedures are correct after realizing that they have made mistakes, have illicitly presented documents, or whatever, but it is stupid to assume that they do not own the vast majority of the loans they are foreclosing on.

And how many of the homes being foreclosed on do you think are paying their mortgage?  And how many of the "owners" do you think engaged in mortgage fraud obtaining the loans?

It is obvious by now that many of the original loan docs are either lost or difficult to find or expensive to find.  And it is obvious that both the servicers and the courts are overwhelmed by the number of foreclosures in the court system.

But only morons are claiming that those people losing their homes are victims of mortgage fraud.  They aren't paying their mortgage and that is why they are losing their homes to foreclosure.

Thu, 09/30/2010 - 12:06 | 615663 Dr. No
Dr. No's picture

I appreciate your look at the big picture.  But, if you lived in a house, and found out someone was sending you a bill for something which they did not hold the lien, would you pay it or would you wait to figure out who really should be receiving your check?  If you do not know who the lien holder is, you could be paying the wrong person.

Thu, 09/30/2010 - 12:22 | 615713 awgee
awgee's picture

I have had a mortgage and may I assume you have had a mortgage?  My mortgage was sold a couple or a few times.  I don't remember if the original mortgagee notified me of their intentions to sell my mortgage, but I paid and the new servicer and never had any problems.  Maybe I was not so smart, but I never checked to make sure the new servicer was the appropriate party to pay.  In fact, I do not know how to check, and my guess is that neither do 99% of the folks who have a mortgage.

Again, it is moronic to assume that JPM does not own the mortgages it is foreclosing on.  As it would be moronic to assume that JPM is not having quite a bit of trouble proving that they own the huge majority of mortgages they are foreclosing on.  And it is even more moronic to think that the folks getting foreclosed on are victims of JPM or any other lender.  They are getting foreclosed on because they are not paying their mortgage, not because they paid the wrong servicer.

How many people have you read about that have had their home foreclosed on who were paying their mortgage?  One?  Two?

The same reactionary fools who accuse JPM and the other lenders of pretend and extend are also accusing JPM of rushing to foreclosure through fraudulent process.  I am no fan of JPM or Franken.  I think Franken a fool and JPM criminal, but again, it is moronic to assume that JPM does not own the vast majority of mortgages it is foreclosing on.

Seriously, do some of you think that JPM is just choosing addresses and deciding to foreclose?

Thu, 09/30/2010 - 13:03 | 615829 Ace Ventura
Ace Ventura's picture

Actually, it's not moronic to assume JPM does not, in fact, own squat. That's the whole point. Individual mortgages were bundled into MULTIPLE AAA-rated securities and sold to MULTIPLE investors, all of whom theoretically have a claim on that single mortgage. This is precisely the problem, once the first domino in this criminal scheme falls, everyone scrambles to get any sort of return on their formerly 'bullet-proof' investment.

At the bottom of this giant inverted shit-pyramid is the homeowner. No one is making the bankster criminals pay for artificially inflating home prices to the point they sold some poor shmuckatelli a $500k mortgage loan on a piece of property which is really only worth $ $ wait, now $ why should the average peasant maintain moral high ground?

F**k that. I say make the vampires prove they have rights to your blood.


Thu, 09/30/2010 - 13:05 | 615858 Ripped Chunk
Ripped Chunk's picture

Rip Van Winkle was surprised after he woke up too.

Thu, 09/30/2010 - 18:50 | 616915 Larry Darrell
Larry Darrell's picture

Just an FYI

It is very easy to check on the status of your title/deed and who is your mortgage holder.

Just call your county clerk's office.

After reading this last night, I did this morning.  They can not release information over the phone, but if you tell them who SHOULD be listed as the owner of each, they can say yes or no.

I gave her the name of each party, she said both matched her records.

I will, of course, be going to the office in person when I get back in town next week just to see it in print with my own two eyes--can't trust anyone working at a government office.

Thu, 09/30/2010 - 14:49 | 616223 granolageek
granolageek's picture

Whether or not the borrower is in default, it is completely right to insist on proof that the correct note-holder is getting the proceeds of the forclosure.


JPM has totally been nailed for forging documents to show itself as the  lien holder when in fact it was merely the (I don't doubt, legitimate) servicer for Freddie Mac. This doc, also claimed that two transfers ending at Freddie Mac were actually one transfer ending at JPM, blatantly evading Florida transfer taxes and fees. Again, I totally accept that JPM would have done the right thing and forwarded the cash to Freddie Mac. However, the document they forged, would have allowed them to pocket the money.


So, you're a judge in Florida, whose paycheck is likely to bounce. You know that JPM is totally lying to (among other things) avoid helping to pay your salary. What is proven is that JPM fudged the paperwork on a (presumably) legitimate case. It could have been to defraud Freddie Mac, it could have been to duck your cut, it could just have been to minimize payroll. Or, all three, something the bankster shills here on ZH ought to remember.


I'm pretty sure that even in Illinois or Louisiana, the price to screw the guy who signs my paychecks is way higher than the price to screw J Random Homeowner. Better cough up quick, banksters.

Thu, 09/30/2010 - 11:28 | 615530 Miss Expectations
Miss Expectations's picture

My dear friend,

You no doubt are a dumbass needle dick from Minnesota.

Warmest regards,

Miss E

Thu, 09/30/2010 - 11:15 | 615471 saladbarbeef
saladbarbeef's picture

I wonder to what extent that government involvement (party to) a fraud exculpates criminal prosecution of other parties?  Is Ally off the hook because it's a government enterprise?


Anyone wondering why, in an election year, the AGs of the several States aren't climbing all over this issue to protect their people?

Thu, 09/30/2010 - 11:17 | 615472 Spalding_Smailes
Spalding_Smailes's picture

Where Do We Go From Here?

The implications of this FRB report are scary.  Keep in mind that 80% of the 133,000 no down payment loans examined had gone into default within three years.  Clearly, homeowners with no skin in the game have little incentive to continue paying the loan when the property goes further and further underwater.

While many of these 80/20 zero down payment loans have already gone into default, there are still a large number of them originated in 2004-2005 which have not.  We know from LoanPerformance that roughly 33% of all the Alt A loans that were securitized in 2004-2006 were 80/20 no down payment deals.  Over 20% of all the subprime loans in these mortgage-backed security pools had no down payments.  These figures are confirmed by the Liar Loan study which I referred to in a previous article.  It found that 28% of the more than 700,000 loans examined in that report which had been originated between 2004 and 2007 were 80/20 no down payment deals.

The problem of strategic defaults goes far beyond those homeowners who put nothing down when they bought their home.  Although the Morgan Stanley study found that only 12% of all the defaults observed were homeowners walking away from the mortgage, I think their definition of a strategic defaulter is much too narrow.

The chart from that study which we looked at earlier shows strategic default rates when the loan exceeded the home value by 20-60%.  Total default rates were over 40% for mortgages of all sizes.  This tells me that a substantial proportion of all these defaults by underwater homeowners were walk-aways.

Thu, 09/30/2010 - 11:15 | 615473 Eureka Springs
Eureka Springs's picture

Dear Fox, please investigate your hen house slaughtering practices.... and then tell me you are vegetarian.

Thu, 09/30/2010 - 11:15 | 615474 Bob
Bob's picture

Holder included.  Fat chance of action there, but I'm glad that the net was cast wider. 

Franken, shmranken.  Must we get sidetracked into all the bullshit about the person, rather than the substance of the matter at hand?

Thu, 09/30/2010 - 11:17 | 615475 Cognitive Dissonance
Cognitive Dissonance's picture
by carbonmutant
on Thu, 09/30/2010 - 11:12

APPL diving, Market following...


Down goes Frazier, down goes....err...down goes Apple, down goes Apple, down goes Apple.

Thu, 09/30/2010 - 11:20 | 615494 carbonmutant
carbonmutant's picture


Thu, 09/30/2010 - 14:37 | 616165 hbjork1
hbjork1's picture


Apple has had a steady, nonstop ramp since the end of Aug.  Completely overbought. 

IMO, no suprise in correction.  As ZH clearly declares, nothing is forever.

Thu, 09/30/2010 - 14:07 | 616016 Problem Is
Problem Is's picture

Big George hit Frazier/Apple upside the head with the Foreman grill...

Thu, 09/30/2010 - 15:59 | 616472 Cognitive Dissonance
Cognitive Dissonance's picture


Apple's next product.


Thu, 09/30/2010 - 11:16 | 615478 barkingbill
barkingbill's picture

oh yeah a democrat does it so all the republican lovers are confused. where is your wonderful party of integrity the GOP on this one? they are such noble people I know....gag. 

Thu, 09/30/2010 - 11:23 | 615510 Bob
Bob's picture

Now that's not very nice! 

Why would you wanna rain on the Partisan Parade?  it's what keeps the wheels of the one party system turning!

Thu, 09/30/2010 - 11:33 | 615545 cossack55
cossack55's picture

Yeah. So there. You are probably a Teatotalitarion.  Bush sucks. I have no point, just ranting.

Thu, 09/30/2010 - 11:51 | 615602 Real Wealth
Real Wealth's picture


Thu, 09/30/2010 - 11:22 | 615479 williambanzai7
williambanzai7's picture

If anyone asks you what do we need a Consumer Financial Protection Agency for, this whole situation is your short answer.


Thu, 09/30/2010 - 11:16 | 615481 Dr. Engali
Dr. Engali's picture

I'm good enough, I'm smart enough, and doggonit  people like me.

Thu, 09/30/2010 - 11:18 | 615485 Cognitive Dissonance
Cognitive Dissonance's picture

Not with a face like that they don't. :>)

Thu, 09/30/2010 - 11:22 | 615511 Dr. Engali
Dr. Engali's picture

Hey give me a break. It was a rough night last night.

Thu, 09/30/2010 - 11:30 | 615534 Cognitive Dissonance
Cognitive Dissonance's picture

Sadly it shows. :>)

All I can say is "Oil of Olay" by the bucket.

Thu, 09/30/2010 - 11:17 | 615483 carbonmutant
carbonmutant's picture

This is probably a SNL skit...

Thu, 09/30/2010 - 11:20 | 615496 Spalding_Smailes
Spalding_Smailes's picture

Market falling like a stone ... I thought POMO was easy money.

Thu, 09/30/2010 - 11:20 | 615498 Overpowered By Funk
Overpowered By Funk's picture

If If only we'd had a Senator Carlin.

Thu, 09/30/2010 - 11:25 | 615521 Bob
Bob's picture

Word.  I'd vote for Chris Rock as well. 

These guys are all people who made very successful livings saying the things that nobody else would say.

Thu, 09/30/2010 - 14:04 | 616005 hedgeless_horseman
Thu, 09/30/2010 - 11:44 | 615592 aheady
aheady's picture


Thu, 09/30/2010 - 11:21 | 615504 Sausagemaker
Sausagemaker's picture

Screw Donkey Kong.... Time for Pac-Man... all those bankers are about to turn into blue ghosts.


Thu, 09/30/2010 - 11:22 | 615507 treemagnet
treemagnet's picture

What a mess....where would you start.  Throw in Franken from The People's Republic of Minnesota, and show time! 

Thu, 09/30/2010 - 11:22 | 615508 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Al Franken, the village idiot of Congress (which is saying much).

First off: he can spell and write, who knew?

Second: Helo Ben, please investigate yourself.

Third, Timmy did you pay your taxes this year, make sure you update turbo tax to 2010, not 2009 version.

               PS: help Benny Boy with the investigation

Four: Reminder to self to thank staff for writing my letter.

Five: go back to doodling on notepad.


Thu, 09/30/2010 - 11:35 | 615555 NotApplicable
NotApplicable's picture

Remember, he is a Harvard man!

So I suspect he asked Treasury Secretary Geithner to arrest the former president of the Federal Reserve Bank of New York Geithner.

This could be fun!

Thu, 09/30/2010 - 11:24 | 615514 Lord Maximus
Lord Maximus's picture

George Constanza:

"It's not a Lie, if you Believe it."

Thu, 09/30/2010 - 11:24 | 615516 zot23
zot23's picture

Yeah, yeah - Franken is such an idiot and an ass and ... whatever.  Where is the Senator you admire on this issue?  Made a lot of statements like this, have they?

Won't post my opinion on Franken or any other Congressman here, it doesn't matter.  The issue is the thing, let's talk about that please.  Discussing feelings about Senators is mental masterbation: it might make you feel good for a minute, but it's ugly when you do it in public.

PS - Carbonmutant, I love that Deus Ex avatar.

Thu, 09/30/2010 - 11:58 | 615629 carbonmutant
Thu, 09/30/2010 - 11:24 | 615518 docj
docj's picture

Ah, the proverbial "strongly worded letter" from the junior douchenozzle from Minnesota.

I wonder if Hans Blix can be brought out of retirement to deliver it in person.

Thu, 09/30/2010 - 11:26 | 615519 mynhair
Thu, 09/30/2010 - 12:13 | 615684 willien1derland
willien1derland's picture

Thank you for the URL - great post

Thu, 09/30/2010 - 18:42 | 616900 StychoKiller
StychoKiller's picture

While "The Cat" is not taking a stroll down the fashion runway in full view of the MSM, it most certainly is shaking the bag off its rear feet...

Thu, 09/30/2010 - 11:31 | 615537 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

Well yes they all suck; but Franklen is at his own special level of suckness....

and I am sure Ben passed a kidney stone laughing so hard while reading this one.

We now return you to your regularly scheduled fleecing.

Thu, 09/30/2010 - 11:33 | 615548 Yardfarmer
Yardfarmer's picture

Rather than join my voice in what has already been a scathing grilling of the empty posturing of this impotent windbag, I simply take my hat off to all those posting here with such acerbic wit and insight into such an obvious, disgusting and reprehensible ploy. The gauntlet of the ZH forum has stripped this bare-assed buffoon of the last remnants his silly self-serving pretense. Bravo!

Thu, 09/30/2010 - 11:33 | 615549 frosty zoom
frosty zoom's picture

he should have sent the letter to the real john walsh, the dude from america's most wanted.

Thu, 09/30/2010 - 11:37 | 615563 Miss Expectations
Miss Expectations's picture

Hey Eric, yea you.  Get your lazy ass off the bench, grab a mitt and get in the fucking game.

PS:  Al should have cc'd Christopher Dodd.  He may be unaware of this issue.

Thu, 09/30/2010 - 12:09 | 615674 willien1derland
willien1derland's picture


Thu, 09/30/2010 - 15:22 | 616352 TJ_is_annoyed
TJ_is_annoyed's picture


You owe me 60 cents for the soda. Oh, and $147 for a new Dell monitor.

Thu, 09/30/2010 - 11:40 | 615577 heyligen
heyligen's picture

The honorable...The honorable...The horror...The horror...

Thu, 09/30/2010 - 11:42 | 615578 Windemup
Windemup's picture

Biggest Alleged Mortgage Fraud in History?

That's nothin'. There is a gang of thugs responsible for the deaths of thousands of American citizens and the destruction of an entire city block of New York city we call the 9/11 event that has gone without justice now for 9 years. Some prominent American citizens and others need to be tried for treason and I don't see any senator speaking out or writing letters about that.

Thu, 09/30/2010 - 12:42 | 615784 Cognitive Dissonance
Cognitive Dissonance's picture

Within the control system, one can talk all day about the "little" lies.

BUT one must never question the control system itself. And one must Never Ever question the BIG LIES, which are the very basis and foundation for the control system.

Thu, 09/30/2010 - 11:46 | 615595 Jim in MN
Jim in MN's picture

Don't shoot the messenger kids.  You are all messengers too.

Pie in the face: Totally acceptable.

Thu, 09/30/2010 - 11:46 | 615597 Catullus
Catullus's picture

So now the leftists care about property rights?


How about throwing some judges in jail? This is a crisis of the judicial system. Not just banks and the treasury dept.

Thu, 09/30/2010 - 11:50 | 615609 Careless Whisper
Careless Whisper's picture

As such, I respectfully request that you collaborate to conduct a thorough investigation into the alleged misconduct.


Thu, 09/30/2010 - 11:58 | 615630 Buttcathead
Buttcathead's picture

I aint buy'n Nuttin...  I been telling you all, it is Fraud.  It is all fake. Dow 2447  I will buy something around 2500.  If 2447 dont hold I'll join Robert at Dow 1000.

Thu, 09/30/2010 - 11:59 | 615631 macholatte
macholatte's picture

Bullshit. Grandstanding.

Sending a letter to the criminals demanding that they spank themselves is not to be taken seriously. Franken is a comedian and this letter of his is nothing more than another joke.

Rhetoric does not get you anywhere, because Hitler and Mussolini are just as good at rhetoric. But if you can bring these people down with comedy, they stand no chance.
Mel Brooks



Thu, 09/30/2010 - 12:50 | 615819 Jim B
Jim B's picture

+1 FrankenFraud

Thu, 09/30/2010 - 12:07 | 615669 willien1derland
willien1derland's picture

Must give Franken props on this - this is an obscene miscarriage of justice & the government needs to send a message to the banksters that they will be held accountable for their actions - Now back to our regularly scheduled bail-out of the day....did ANYONE say AIG? - Stimulus opportunity - build a prison large enough to house all the yoyos involved -

Thu, 09/30/2010 - 12:13 | 615685 Fearless Rick
Fearless Rick's picture

Franken-stein, bitchez!

Thu, 09/30/2010 - 12:19 | 615700 Ace Ventura
Ace Ventura's picture

Watch Stewart Smalley.....errrr, Al Franken, make the rounds on the alphabet network evening 'news-tainment', and morning 'wake up boobus amerikanus' fluffball shows. Defender of the little people and such. Right before the November circus. The Democraps CARE, sheeple! They care so much more for you than those rich white Repukelicans! Vote Donkey everyone! Donkeys are 'in', Elephants suck!


Flush 'em ALL I say. Line Constitution Avenue with shiny steel pikes neatly topped with various melon-domes from both sides of the aisle.

Thu, 09/30/2010 - 12:27 | 615730 davidsmith
davidsmith's picture

This comments shows you what a pathetic shill Franken really is:


"Tim Geithner, Shaun Donovan, Secretary of Housing and Urban Development, Eric Holder, John Walsh, Controller of the Currency, Sheila Bair, and, drumroll, Ben Bernanke, telling the recipients that "each of your agencies has an important role to play in addressing this egregious situation and holding all appropriate actors fully accountable. As such, I respectfully request that you collaborate to conduct a thorough investigation into the alleged misconduct. As part of this investigation, it is crucial that Ally and its employees are held fully accountable for any criminal misconduct."


Tim Geithner, Shaun Donovan, Secretary of Housing and Urban Development, Eric Holder, John Walsh, Controller of the Currency, Sheila Bair, and, drumroll, Ben Bernanke, just happen to be among the criminal conspirators.


Do you understand now what is going on?

Thu, 09/30/2010 - 12:28 | 615733 surfsup
surfsup's picture

Every time massive news like this comes along and network media holds it back it inflates with immeasurable intensity until the pressure is so great it explodes...  

Mortgage Gate (Foreclosure Gate) has reared its head and the fall out will be massive. Good luck holding this inflating balloon under water much longer guys...  


Elizabeth Warren -- step up!



Thu, 09/30/2010 - 12:32 | 615744 awgee
awgee's picture

Why is it only necessary in judicial foreclosure states to prove ownership of the mortgage?  As far as I know, a new trust deed in not filed every time a mortgage is sold, so the chain of ownership would not be obvious.

Thu, 09/30/2010 - 12:44 | 615786 VWbug
VWbug's picture

although not on the scale of GW's frantic alarmism about the gulf oil disaster, this is in the same vein.

much ado about very little.

foreclosures will get delayed until more people are hired to cross the t s and dot the i's.

house prices will stabilize a bit as a result.

life will go on.

Franken's grandstanding will be ignored completely.

Thu, 09/30/2010 - 18:49 | 616914 StychoKiller
StychoKiller's picture

You don't get it.  I'm betting that in a lot foreclosures, NO ONE has any idea WHO the note holder really is!  Wrap 1000s of mortages in an MBS, slice it into tranches via CDOs, take remaining tranches and slice into other CDOs, wrap CDOs into CDO^2, then place in a CDS box, followed by more CDO wrappings, multiply this idea by 100s of financial firms doing the same thing!  Capiche?

Thu, 09/30/2010 - 23:01 | 617391 VWbug
VWbug's picture

yeah yeah  i get it, and it's all a huge clusterfuck, but eventually the owners will want their money and it will get sorted out.

could hit bank profits i guess, but a lot of people have been accusing the banks of delaying foreclosure deliberately, so i still don't see the big deal.


Thu, 09/30/2010 - 12:44 | 615790 roadlust
roadlust's picture

Franken IS a genius compared to most of the morons sharing their "wisdom" in this thread.  It's time to wash your pajamas children. 

Thu, 09/30/2010 - 12:44 | 615791 Cammy Le Flage
Cammy Le Flage's picture

This fraudulent system has been going on for a long time....many "debt collection" agencies have no paper.   They sue on the paper they do not have and many just dont answer the lawsuit.  If your name is John Smith or Juan Gonzalez - or some other name.....beware - your wages/bank account could be garnished even if it is not your debt.  I have seen this fraud on the courts many, many times.  Mortgages should have never been securitzed ever.   That is the root of this problem.   Once the mortgage goes into a security - 50 state property laws - all different, as well as municipality laws go into effect.   None of those many different laws were considered when securitizing the mortgages.   Debt on debt on debt to create "new money".   Anyone paying their mortgage into this system is a fool unless your mortgage is private and not part of this system.   Fraud on fraud on fraud.   If you disagree with me - then what is the point of "law" if it does not have to be followed or it is not enforced.   This nasty system affects us all but looking to the current administration, banks, investment houses, etc. to clean it up is just insane.    They all knew.   Sec. Paulson and his little one page letter about the financial system crashing....whatever.   Who cares anymore.    This system is so broke it is unfixable.  Crash it and re-start.   The only way.

Thu, 09/30/2010 - 13:03 | 615809 Mercury
Mercury's picture

Sorry to kill the music and turn on the lights but I think the joke's on you.

If these banks who are prosecuting foreclosure don't legitimately own the mortgages than who does and why aren't they trying to seize the collateral behind their non-performing loans?

 Is it possible that the government already owns a lot of these mortgages (via one of those impossible to keep track of bailouts) and they purposely aren't trying to collect on them?...creating an opportunity for fraud in the form of other parties claiming that they own the mortgage? 

In other words, the government may have already decided that many morons who took out mortgages from moron banks (that they never had any real chance of paying off) will ultimately end up owning their properties free and clear for a fraction of their actual worth (with the U.S. taxpayers picking up the difference of course). 

 This is what's really shocking.  The only reason it's coming to light now is that other parties are trying to pull a fast one by posing as the legit. loan holders and laying claim to the collateral.  If the government owns non-performing mortgages in some form taxpayers SHOULD BE DEMANDING FORECLOSURE PROCEDINGS.

Some defaulting home owners might be/are getting off on what amounts to a technicality here. So yahoo...bad banksters, hoo-ray little guy.  But it's coming out of your hide and worse, the government has been planning it that way all along.

Where might I be wrong here?

Thu, 09/30/2010 - 13:25 | 615910 Spalding_Smailes
Spalding_Smailes's picture

It has more to do with mortgage backed secuities and the looming downgrade. Mark to ----0?

Can you say, insolvent. Its the fact that the flashlight is back on the foundation of sand that underpins the credit/debt ponzi ....

A mortgage-backed security (MBS) is an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans through a process known as securitization.

Thu, 09/30/2010 - 15:34 | 616392 CitizenPete
CitizenPete's picture

Agree.  Now how much of this worthless crap is the FED hanging on to?

Thu, 09/30/2010 - 15:56 | 616465 Mercury
Mercury's picture

So the defaulted mortgage is in an MBS and the government (or someone) owns the MBS.  Why aren't they, the legitimate creditors, pursuing foreclosure to cut some of their losses?

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