- advertisements -
I'm sure the author meant to say that U.S. citizens pay for the repurchases of fraud, which is accurate.
Any criminal charges filed yet? Didn't think so.
True dat. The GSEs settle (what
gives them the right?) with BOFA
for a token amount of the fraud and
US taxpayers pick up the balance.
Ain't that grand?
No one [incorporated] will see it coming.
It's always been coming. You just know
that of all the MBS the Bernanke
bought from the banksters in QE1,
billions of it are likely fraudulent garbage.
What does the Bernank care? It's all
ultimately guaranteed and put back to
the GSEs whose losses are guaranteed
by US taxpayers. Shell game of epic
The Ally Bank/GSE settlement was even funnier, seeing that .gov owns both of them.
Criminal charges? Criminal charges? No one goes to jail and any highly financially beneficial crimes get fined 30% of their overall take (as VIG to the Powers That Be yet said to be fines and punishment to those Bad Boys... and this keeps We The Sheeple complacent).
Looks like it is worse than that, here is an article that implicates the judicial and enforcement branches in fraudulent foreclosure coverups.
Excerpts but the article is full of specific cases/judgments/incarcerations.
This writer's human rights defender colleague who has advocated for recently freed attorney Richard Fine and continues advocating for some 30,000 Falsely Imprisoned Persons (FIP) in the Los Angeles prison system and homeowners robbed by banks, injustices due to court corruption, has released his account of being threatened with violence by unidentified armed federal agents. For peacefully working against banksters and "justice" system fraud, the Los Angeles area doctor narrowly escaped his residence and remains in hiding.
For a look at how the U.S. era of bogus "homeland security" and "war on terror," supported by the USA PATRIOT Act, is actually covering up high-level terror and other crimes in an undeclared real war on We the People, one need look no further than the life of one man over the past couple of years, that of Dr. Joseph Zernik.
Joseph Zernik, PhD is the rights defender and Bank of America (BofA) shareholder who obtained evidence of BofA President, Brian Moynihan securities fraud and that the SEC v BAC (1:09-cv-06829) litigation was a bogus litigation. He's the man with integrity who, “These are securities fraud that would bar a person from the financial industry for life.” (See: (Video) Evidence of Bank of America fraud, Dupré, D., Examiner, Feb. 4, 2010)
Sunday, Dr. Zernik and Human Rights Alert (NGO) released documentation of his filing a report about threat of violence against him with Harvard "Citizen Media Law Project." He has named U.S. Deputy Marshal, on behalf of the US District Court, Central District of California as the perpetrator. But will anti-terrorist officials really take note and act to protect and defend the innocent? Chances of that do not look good when those tasked with such nobel duties are the same officials terrorizing the innocent.
The threat against Dr Zernik in April 2010 followed his requests filed with the Clerk of the Court, Terry Nafisi and the Chief Judge, Audrey Collins, US District Judge, Central District of California, that were also published online, to correct the false PACER dockets, pursuant to the Code of Conduct of US Judges."...........
On or about April 24, 2010, Dr. Zernik was informed by his neighbor that the previous night, unidentified armed federal agents appeared at Dr. Zernik's residence and tried to apprehend Dr Zernik.
According to the neighbor, the agents also knocked on his door and asked the neighbor about Dr. Zernik's whereabouts. The neighbor also told Dr. Zernik his concern that shooting was going to take place if the agents appeared again.
Dr Zernik immediately abandoned his residence and has not returned ever since.
It was about that tim that this writer received the phone call from her noticeably shaken colleague. He had requested that if his postings are not seen for a few days, to reach out. He feared being kidnapped or disappeared in prison, justifiable fears, as few know as well as he.
No known corrective actions have been taken to this date regarding the false and deliberately misleading PACER dockets in Zernik v Connor et al or in Fine v Sheriff."
Warrants for night raids are generally more scrutinized given the increased likelihood for mishap. I would be very curious why a night raid would be needed to apprehend a guy like this.
yeah, but...but we got that dude Eric Holder (is that his name?) on the job! no worries
yep; he's a holderin' the bag. (we need someone far more bolder than sad, weakass eric holder.)
Kept scrolling down to see what that big red stripe was measured against. Thaouth I was in interrupted page-load.
Weird. It's these kinds of in-sights that tell me that all the major players know the end of the road is around the next false-flag.
Till then, it's high drama time. Such a dis-traction.
What they do is get all those nice juicy PAPER records and store them in something with a number 7 on it. Then when everyone is looking over >>>>>>>>>>>>>>>>>> HERE.
They torch building 7 (the records)
And you are not a good Merkin if you aren't fighting in Ganistan 'bout it.
The elaborateness of the ritual burning is a little overdone though, don't you think LeBalance?
I wonder if the debt ceiling isn't raised and we kill the GSE's because there simply isn't the money to pay for the debt hole without transfering it to US Treasuries.
I wonder what happens than, I also wonder what happens also when the only entities providing new capital for new mortgages cease to exist to BAC balance sheet with the loans they are still keeping on their books.
Keiser's 80% call for housing price decline doesn't seem that nuts in that situation.
If Congress wasn't the most corrupt entity in the world, I'd encourage them to impeach the President and clawback the fruits of bribery and financial fraud, however that is how 99% of them got into office.
The 1% being the result of hardcore socialist electing them or anti-federal reserve activist in Texas.
Money Hole, Debt Hole, its all good.
What do you mean you don't know what's going to happen? When the GSEs implode, there is still rubble lying around. Meaning, all of the toxic assets are still there... they are assets and still in existence. As a result of the implosion, they will all be liquidated to the highest bidder. The bidding process will be closed and a bidder or two carefully appointed. The haircut will be more than enough to entice the "bidders" to purchase the toxic assets. The assets will be claims on real property.
Part of the spoils of the wealth gap remain in the ether because it is known there is still loot to be made. They are allocated to the purchases known to be available in the near future...
The Fed will buy up the toxic bond rubble. It will therefore wind up with the property.
It will need it to collateralize the new currency. See the rentenmark solution to hyperinflation, Germany, circa 1923.
In the end, in order for the robbery to be complete, the assets accumulated will need to be offloaded to the principal actors (as well as hush money to others)[although, they've already been paid once from the toxic crap]. The FED will be just as insolvent as the next place. How do you collateralize/mortgage/leverage already leveraged assets whose income streams are already impaired (hence the toxic part)? The only way to turn them into anything worthwhile is to give them a gigantic haircut and offload them and close up shop (close the FED).
The mechanism to control money has ceased being useful as credit started contracting... right now it is an unprecedented effort to counteract shadow banking losses. The FED will lose the fight... all it is doing is stalling allowing its principal actors more time to convert their spoils from the ether. The FED was always a vehicle of limited duration... its longevity has only been extended through our sheer ignorance and propensity for credit fueled spending and general aversion of production (shit man, that's like work and stuff).
I don't see what is supposed to come in and back the dollar pt. 2 other than the often rumored to be leased/sold gold holdings. Well, it was supposed to be carbon credits, but that POS idea has fallen through... they'll need to pony up something more tangible... MBS are not going to cut it. That will not instill faith in whatever subsequent currency ensues. If the FED/Treasury is insolvent, then whatever assets it has will be insufficient to back a new currency (hence the loss of faith in the first place). If the FED/treasury is not insolvent, then it has no need to find an alternate currency.
Here are a few more claw backs... All of the money spent chasing phantom WMD's, all of the no bid government contracts, all of the government guarantees for big business, all of the taxes avoided by doing business in the USA and shifting the profits off shore, all of the H1b visas where corps paid less tax on the visa holders than an American worker, all of the bailout money, all of the Bush tax breaks that did not create jobs, all of the offshore tax breaks for Corps doing business overseas, all of the tax entitlements and subsidies. RICO for financial fraud that strips every asset from the fraudster.
ella, you are my hero of the day.
I'm afraid we'll never see RICO prosecutions. The judicial system should be loaded to the gills with them, but it appears our govt is in cahoots with the fraudsters.
Shares up 4% . Who gives a shit ?
"Shares up 4% . Who gives a shit ?"
That's the spirit, so what if the Financial Elite destroy the economy... Just get in on the action.
BAC is up .60 cents pre-market on this wonderful news. Another day on planet Mars folks.
BoA? Fraud? Sacre bleu! I'm shocked and stunned. A Primary Dealer and member of Club Fed actually allegedly committing fraud?
This is stunning news.
You mean the market god did not use its invisible hand to regulate and prevent fraud? Shocked.
Sigh, the invisible hand died in 1987....
Here's a recap of the mortgage mess that you don't see in the NYT's, although we should.
Worse, from the perspective of the banks, they've got to take back all the fraudulent MBSs, most of which are toxic.
In what follows I want to present the most favorable case for the mortgage industry. That is to say, I will ignore fraud and criminal conspiracies. Let us look at the current predicament as if it resulted from a series of monumental errors. With that in mind, what is the best-case scenario? First a caveat: I am not a lawyer nor am I an investigative reporter. I have relied on my perusal of reported evidence, plus a discussion with James McGuire who has put together an entirely convincing argument that the securitizations of mortgages resulted in securities that are not backed by mortgages. I urge interested readers to go to his website.
With that caveat, let us work through the problems now facing the banks.
1. A valid "mortgage" requires a (“wet signature”) note and a security instrument; these must be kept together, and any subsequent transfer of lien rights to the security instrument must be recorded at the appropriate public office. The mortgage note must be properly indorsed each time the mortgage is transferred. In the era of securitized mortgages this can be a dozen times or more. If ever presented for foreclosure, endorsements should demonstrate a clear chain of title, from origination through to foreclosure; and this should match the records at the public office.
2. MERS intended to provide an electronic registry of all mortgages. By appointing a “vice president” in every financial firm, it believed that all transfers of lien rights among these firms were "in house". Hence it operated on the belief that no subsequent public recording was necessary, and no further endorsement of the mortgage note was necessary for in-house transfers of the payment intangible as it kept a record of transfers of the mortgage. It claimed to be a nominee of these firms (purported to hold the mortgage) but also to be the holder of the mortgages including the "Unidentified Indorsees In Blank"—mortgages that were never properly endorsed over to purchasers. We know, however, that MERS recommended that mortgage servicers retain notes, so MERS's claim to be the holder rests on its claim that appointed VPs are employees. But these employees are not an agent/employee of the "Unidentified Indorsee In Blank", nor are they paid by MERS or in any way supervised by MERS.
3. This practice is in violation of numerous laws. Property law requires filing sales in the public record. Notes must be affixed (permanently) to the security instrument—a mortgage without the note has been ruled a “nullity” by the Supreme Court. MERS's recommended business practice (with the servicer retaining the note) would make the mortgages a “nullity”. A complete chain of title is required to foreclose on property—every sale of a mortgage must be endorsed over to the purchaser, and properly recorded. Without this, it is illegal to foreclose on property—no matter how many payments the homeowner has missed.
4. However, if the notes can be found and if MERS can provide records, it is possible that the mortgages can be made valid (“proved up”) for purposes of collecting upon the indebtedness, but foreclosure would not be possible without a valid continuous perfected mortgage showing a chain of title from origination through to the current party trying to enforce the mortgage note. Any break in the chain of indorsements along with any break in the chain of title renders the Power of Sale clause in the security instrument to be a nullity and therefore no party can foreclose on the real property. So long as there is no fraud affecting the mortgage note, then rights to enforce the indebtedness can be further negotiated. If there is no break in the chain, when fraud is shown affecting the security instrument (such as robosigners, etc), this does not affect the rights to enforce the mortgage note--but such fraud will affect the validity of the security instrument perhaps making foreclosure impossible. Fraud affecting the mortgage note would affect the right to foreclose.
5. If the notes cannot be found and a Lost Note Affidavit can not reestablish the indebtedness, then foreclosure is not possible and collecting of the indebtedness is also not possible. Homeowners still can be sued for collection of owed moneys upon a “proved up” note or lost note affidavit but a current perfected lien is required to foreclose.
6. However since the mortgage-backed securities are governed by PSAs (pooling and service agreements), the practices above make the securities unsecured debt and there is no solution. The securities are no good. (This would be a Representation & Warrant violation as the MBSs stated that a secured indebtedness was to be purchased, but since the Trustees of the securitization would not have the notes, the securities cannot be “secured”.)
What does all this mean? In plain simple language, the banks are royally screwed. They cannot foreclose on the properties. Holders of the “mortgage-backed” securities can turn them back to the banks because they are actually unsecured debt. In previous pieces I have also explained why MERS's recommended practice also violates US tax code—so back taxes are owed. And we know that the mortgages stuffed into the securities did not meet the “reps” of the PSAs.
So, in short, banks have got to take the whole lot of toxic waste securities back. Trillions of dollars worth. The banks are toast. There is no cooking of the books that will turn this blackened toast back to bread.
L. Randall Wray is a Professor of Economics, University of Missouri—Kansas City. A student of Hyman Minsky, his research focuses on monetary and fiscal policy as well as unemployment and job creation. He writes a weekly column for Benzinga every Thursday.
He also blogs at New Economic Perspectives, and is a BrainTruster at New Deal 2.0. He is a senior scholar at the Levy Economics Institute, and has been a visiting professor at the University of Rome (La Sapienza), UNAM (Mexico City), University of Paris (South), and the University of Bologna (Italy).
Interesting and yet irrelevent since, after a series of pay-offs to Congress and regulatory bodies, they will simply change the laws to make what the banks do legal.
My guess is that this will happen AFTER BAC is dismantled by the NYers.
This from the FHFA re the BAC deal:In total they pawned off 18,000 sub standard mortgages. Buy this stock at your risk.
On December 31, 2010, Fannie Mae (formally, the Federal National Mortgage Association) entered into an agreement with Bank of America, N.A., BAC Home Loans Servicing LP, and Countrywide Home Loans, Inc., each of which is an affiliate of Bank of America Corporation. The agreement addresses outstanding repurchase requests on loans with an unpaid principal balance of approximately $3.9 billion delivered to Fannie Mae by affiliates of Countrywide Financial Corporation (collectively, "Countrywide"). Bank of America Corporation merged with Countrywide in 2008. In this report, Bank of America and its affiliates are referred to individually and collectively as "Bank of America."
Under the agreement, Bank of America agreed, among other things, to a resolution amount of approximately $1.52 billion, consisting of a cash payment of $1.34 billion made by Bank of America on December 31, 2010 and credits for payments recently made or to be made by Bank of America. The agreement:
• substantially resolves outstanding repurchase requests on 12,045 loans sold to us by Countrywide; and
• addresses 5,760 other loans sold to us by Countrywide and permits us to bring claims for any additional breaches of our representations and warranties that are identified with respect to those loans.
Our mortgage seller/servicers are obligated to repurchase loans or foreclosed properties, or reimburse us for losses if the foreclosed property has been sold, if the mortgage loans do not meet our underwriting, eligibility or other requirements. We refer to our requests to seller/servicers to honor these obligations collectively as "repurchase requests." As of September 30, 2010, approximately 55% of our $7.7 billion in outstanding repurchase requests to all our mortgage seller/servicers, as measured by unpaid principal balance, had been made to Bank of America. This agreement addresses approximately 44% of our $7.7 billion in outstanding repurchase requests as of September 30, 2010. These amounts do not include amounts relating to repurchase requests originating from missing documentation or loan files.
We continue to work with Bank of America to resolve our outstanding repurchase requests to Bank of America, including requests relating to loans delivered to us by Bank of America, N.A.
So 55% of outstanding repurchase requests were to BofA.
Nothing about potential future requests. Why am I not surprised.
It looks like the settlement was just for outstanding repurchase requests. There is no agreement for future requests as far as I can tell, unlike the deal JD struck with Freddie re: WaMu loans.
So it looks like they agreed to repurchase the 12,045 loans, or pay off Fannie for the loss is probably more accurate (at an average nut of 126K, which makes sense - average loan size * severity of loss), and Fannie backed off on the request for 5,670 other loans, but reserve the right to find other faults on those loans.
Based on some of the other news I have read, it looks like this deal was done so they can pay themselves cash bonuses for 2010.
I was badly mistaken.
I thought Moynihan and Desoer would be out by year end.
Instead, they still remain at the pinnacle of B of A, and the company continues to lumber on.
I'm with you on that one.....2011 will probably be the last year for both of them. Ya know, I'm betting Kenny boy Lewis is probably glad he got booted when he did. It's fairly obvious BofA is an absolute mess with the question being how long will they survive.
The check to Organizing for America, Obama's political arm must have cleared today.
Can it possibly be any more clear to people who still believe in the rule of law and regulatory ethics (oxymoron intended) that the banks own this country. Woe to investors who mistakenly think they can beat the house or that the gaming commission ensures 'fairness' in this casino. Bizness as usual. Happy New Year, sodomized America!
The beast is starting to eat itself. Spurned persons with insider knowledge will indeed help the cause of imploding the Corps(es). Just getting started, sounds like the start of a great new year. At some point these bonds will backdoor to the Fed, has to happen unless Ron Paul can put on a full court press and stop it.
and this does not even count all the worthless (and i mean as in ZERO) Bank of America HELOC on the books
this is such an obvious short of this stock that will be zero someday, but who has bankroll to outlast the Fed
Someday. Sounds so distant, So poetic. Someday, I want to be a dentist. Someday
I love to watch the GSE's and banks attempt to cannibalize each other, but watch out because there will ultimately be a backdoor subsidy via tax law changes, since banker welfare and bailouts in a more obvious way will no longer be allowed. I'm calling a top in BOA. I hate those fuckers because I had decent business credit cards until they bought my account and then started showing incompetency just to be incompetent I guess. Didja hear I'm calling a top in BOA? Thus sayeth the troll
Every dime that insolvent fucker (BAC)
and every asset they hold SHOULD
belong to us. But no, we're going to
pretend all is well.
Post that in the WSJ comments section and see how fast you get called a communist (along with Obama of course).
Whats up with the good Doctor this morning?
I just woke up to see if there's anything new and exciting. Apparently not. Naysayers continue saying the "Math will prevail SOON" while the market continues bitch slap them like fucking Carlos bitch slapping Connie. If i wasnt sleeping with the fishes, I would of paid him a visit. Well, Im going back to bed. I will watch the Godfather later. Math? We dont need no stinkin' math. Just POMO.
I'm crying my eyes out right now!!!
Friday I sold all my warants of BAC 14 april and these are now already up 65%....
There there SD, go play amongst your PM hoard.
Soothe your paper loss pain.
Like some sage said, "there are no markets anymore, only interventions"
The government gives and then takes..... Looks like a money laundering scheme to keep the political hacks running the GSEs making money they don't deserve!
Kind of like
FED (free money) and Treasury (TARP) -> BOA -> GSE -> Loser management (political hacks)
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.