Tail Risk: Kamala Harris Declares War on Lenders, Loan Servicers in CA

rcwhalen's picture


This is a comment from The Institutional Risk Analyst from last summer.  Since then the California Bill of Rights has gone into effect and this comment has landed me on the enemies list with consumer advocates and trial lawyers. Thought we should have an evergreen of this comment on ZH.  Just remember Kamala Harris when the expected HPA fails to materialize in 2013 and CA starts to behave a lot like NY, CT, NJ. -- Chris


Tail Risk: Kamala Harris Declares War on Lenders, Loan Servicers in CA

The Institutional Risk Analyst

October 9, 2012


"Last month's announcements of central bank liquidity provision (or financial repression, for some of you) have made speculative positioning in sovereign debt look like a one-way, nearly risk-free, bet. I believe it's time for macro traders and investors to step back and reconsider what could go wrong with this picture."

John Dizard

Financial Times

"A good year for macro traders will end soon"

Last week The Institutional Risk Analyst was at HousingWire's REperform Summit, a mortgage servicing conference held in Dallas. There were a number of news items that came out of the conference, but perhaps the most urgent was the assessment of the new CA Homeowner Bill of Rights authored by CA Attorney General Kamala Harris.

The Homeowner Bill of Rights launched in California not only changed hundreds of years of real estate law, it may have turned the West Coast state into a judicial foreclosure state with financial firms on high alert," Kerri Ann Panchuk reports for HousingWire's Plano, TX based team. Our take: The largest US banks - Bank America (BAC), JPMorganChase (JPM), WellsFargo (WFC), Citigroup (C), US Bancorp (USB), and a host of private loan servicers and investors, are now targets for the trial bar in CA. This is called "tail risk."


"In California, they just gave trial lawyers a nuclear weapon to use against the industry," said Bob Jackson, president and attorney at Irvine, Calif.-based Jackson & Associates. Jackson spoke atHousingWire's REperform Summit.

"The Homeowner Bill of Rights is the most massive change in the last 100 years of real estate law," he said. "It used to be servicers were in the business of enforcing simple contract law. What the loan servicer did is they enforced the contract, but that is no longer how the game is played."

"Jackson said the bill created several new areas of concern for servicing shops," Panchuk reports. "The first is the potential to be sued for wrongful denial of a loan modification. Firms also can be sued if a loan modification was denied because of a mistake made in the process."

Larry Platt of the Washington law firm of K&L Gates noted ominously that the state AGs have effected a radical change in the relationship between servicers, investors and borrowers. Platt noted that the charter of the new Consumer Financial Protection Bureau focuses on the needs of consumers, not investors. Platt opined during a panel with Jackson at the HousingWire event that servicers traditionally have worked for the investor, not the borrower.

"That is not the law having the servicer look out for the borrower. The role of the servicer is going through a paradigm shift," Platt warns. "When you look at the bulk of litigation nationwide, it doesn't pertain to any violation of a federal or state consumer credit law." His takeaway: "There is a monkey wrench in every single foreclosure in this country based on what the CFPB has created from its own authority."

But in fact CA AG Harris and other AGs around the country are re-writing centuries of state contract law and creating causes of action by borrowers against servicers and their clients, the owners of mortgage notes. This attack on creditors by CA politicians and their allies in the trial bar builds on the erosion of contract rights during the 1930s under FDR, says Jackson. Indeed, the action by CA AG Harris represents deliberate collusion between trial lawyers, poverty advocates and elected officials in CA, who now have turned mortgage lenders into prey as a matter of public policy.

Jackson told the HousingWire audience that the game has changed for loan servicers operating in CA: "It used to be servicers were in the business of enforcing simple contract law. What loan servicer did is they enforced the contract. But that is no longer how the game is played."

He continues: "Before the Homeowner Bill of Rights, you were in the business of collecting loans and after it you were in the business of defending tort claims. The basic cornerstone of contract law doesn't apply here. Saying just follow the law and you won't have a problem is complete and utter non-sense. They are going to say you violated this and you have to prove that you didn't."

The new CA law pretends to protect home owners, but in fact this effort is merely the latest effort by an ambitious Democrat to win higher office by enriching members of the trial bar. There is a direct connection and symbiosis between the politicians, trial lawyers and public policy advocates in the CA HBR that is truly frightening - but hardly surprising.

"California adopted the robosigning [settlement] on steroids," warns Jackson. "Under this law you cannot file a notice of default or sale (or other action) unless a servicer has reviewed them and has made certain the filings are fine. Without that process you have a violation of HBR."

The bottom line is that under the brave new world created by CA AG Kamala Harris and her pals in the trial bar, loan servicers can face civil and even criminal charges for relatively minor errors. Debtor plaintiffs can sue servicers to block foreclosure at the expense of the servicer and expect awards in six figures.

Within a year, lawyers in shopping malls across CA will have a template for filing these claims, a template provided by state and national trial lawyers associations. Think asbestos and the Ford Explorer litigation and you got the general idea. By next year, the American Association for Justice, also known as the Association of Trial Lawyers of America (ATLA®), and like organizations probably will be delivering "how to" kits to trial lawyers all over CA.


Plaintiffs can also sue servicers and their clients for up to three years after a non-judicial foreclosure. Just as in the state AG settlement, the banks and investors in RMBS pick up the tab. And Kamala Harris is leading the parade of state AGs seeking to enrich themselves at the expense of servicers and creditors.

But the more profound point to be made is that the debtors are firmly in control in the US as well as in the EU. Since the US Civil War and especially since WWI, debtors have arguably been in charge in the US. Progressive elements use the power of the state to subordinate the financial interests of savers and investors to the popular desire for nominal growth. And in Europe the same dynamic prevails, this despite talk and more talk in Germany about hard money.

In Spain, for example, borrowers are receiving debt relief en masse via rescission of investments, begging the question as to whether the banks have any remaining rights. Thus we include the quote above from John Dizard of the FT about the duration of the macro trade. The debt of those Spanish banks is held by investors in Germany and France. Will these investors escape sanction as well?

The WSJ reports that in Spain, "Arbitrators have annulled sales contracts and ordered banks to fully repay money invested by customers, minus interest payments already made." The continuing outflow of fund to make speculators whole on their real estate dabbling almost ensure that Spain's banks cannot be recapitalized by the ESM, notes our friend Achim Duebel in Berlin. The plain fact is that there is no political will to impose losses on investors in speculative Spanish real estate investments.

Meanwhile in Washington, the federal housing bureaucracy proceeds heedless of the storm raging outside the beltway in states like CA. Charles Gabriel of Capital Alpha Partners notes that the Federal Housing Finance Administration is seeking comment on a Unified Securitization Platform to replace Fannie Mae and Freddie Mac.


"Continuing to fill the void re Fannie-Freddie reform, the FHFA released an October 4 white paper on a proposed new framework for both a standardized/common securitization platform and model Pooling and Servicing Agreement (PSA)," writes Gabriel. "The FHFA paper seeks comment by early December on seven, largely technical questions relating to its plans to "replace the outmoded proprietary infrastructures of [Fannie and Freddie] with a common, more efficient model" that will allow for "greater participation of private capital in assuming credit risk."

It's nice to talk about the return of private capital to the US housing market, but there are a couple of problems. First, so long as the Fed continues with ZIRP, private investors will not finance non-conforming loans. Need to see the yield curve widen another 100bp to see a real market for private label RMBS return.

Second, non-sense like the CA HBR will discourage private investors and even the US government from financing mortgages in CA. The FHFA already distinguishes between judicial and non-judicial states in setting servicing fees for Fannie and Freddie. The CA experiment concocted by AG Harris in "rule by trial lawyer" may eventually cause the federal government to stop guaranteeing mortgages in CA entirely. Imagine how the CA housing market would perform with no loan guarantees from FHA or the GSEs. More on this unfolding disaster in future issues ofThe Institutional Risk Analyst.

Questions? Comments? info@institutionalriskanalytics.com

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Tue, 02/05/2013 - 22:57 | 3218686 malek
malek's picture

Thanks Chris for posting this here.

To most of the commenters here: you are (mostly) vividly against Obamacare for example, but the CA AG changing the rules of contracts, one of the most basic and most stable concepts defined by law, is all good - because she only has the best intentions? I watch in amusement of such hypocrisy.

Wed, 02/06/2013 - 13:08 | 3220363 waterhorse
waterhorse's picture

Got MERS?  Better check your DOT.

Wed, 02/06/2013 - 19:18 | 3221639 malek
malek's picture

Enlighten me how MERS will be fixed by going after loan servicers (or was even caused by them).

Thu, 02/07/2013 - 12:26 | 3223186 waterhorse
waterhorse's picture

I don't think it can be "fixed" except on a case-by-case basis as the titles have been so badly FUBAR'd by the banksters and considering that the MERS scheme was created by the same Too Big To Fail servicers - Countrywide, B of A, Wells Fargo, Chase - and then given the green light by the white collar criminal defending law firm of Covington & Burling - your silly little question basically answers itself. 

Thu, 02/07/2013 - 22:29 | 3224899 malek
malek's picture

I think you are bending reality to your needs here - MERS was created for repackaging mortgages into MBS and CDOs, which is not something the servicers do or did.

Wed, 02/06/2013 - 00:15 | 3218945 Boxed Merlot
Boxed Merlot's picture

I watch in amusement of such hypocrisy...


You did see where Jackson states unapologetically the servicers held it to be their right to enforce contract law didn't you? Last time I checked, that's the realm and purpose of the courts, not a litigant.  These folks have forgotten there is actually a rule of law to follow.  I have no problem with a court finding a case in their favor, but if they’re the first to break the agreement by way of bifurcating the mortgage, why should the victim be forced to relinquish anything to the criminal?


Treble damages would be too kind.


Wed, 02/06/2013 - 19:15 | 3221631 malek
malek's picture

But no hypocrisy on your side?

The TBTF are also to big to be sued, so we go after the small fish instead, suddenyl giving them liability for almost everything? (And by the way any construction by you that I have implicitly demanded no liability at all for those small fish is a FALSIFICATION.)

If however you are also of the view that tort law in the US is balanced and almost exclusively has positive overall effects, go dream on.

Tue, 02/05/2013 - 17:53 | 3217767 steve from virginia
steve from virginia's picture



Kamala Harris is easier on the banksters than I would be, if given the chance.


I would feed them all into woodchippers and compost the 'residue'.


The banks will be sued ... they deserve much worse.


Here is more mendacity:


"This attack on creditors by CA politicians and their allies in the trial bar builds on the erosion of contract rights during the 1930s under FDR, says Jackson."


The contract in question is the gold clause whereby a bank made a loan as a ledger entry then demanded repayment by the borrower in gold. Getting rid of the gold clause -- which was the means by which banks ruined property owners then businessmen then afterwards, themselves -- required removing specie from circulation ... after all, if there was gold in circulation the bankers would demand it clause or no clause.


It was the banks and their infinite greed ... which were behind FDR's so-called 'confiscation'.


Tue, 02/05/2013 - 18:11 | 3217839 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

what about any gold fillings?

Tue, 02/05/2013 - 17:30 | 3217689 flacorps
flacorps's picture

Whatever drubbing the California lenders are facing ... they should remember it beats guillotines!

Tue, 02/05/2013 - 18:11 | 3217841 LasVegasDave
LasVegasDave's picture

Yes how dare those evil bankers ask for their collateral back;

They should just walk away and leave the property to the greedy deadbeats.

Debt repayment is now optional in america.  Im sure it is going to work out really well.


Tue, 02/05/2013 - 18:48 | 3217959 chunga
chunga's picture

You're such a douche.

Tue, 02/05/2013 - 18:17 | 3217866 waterhorse
waterhorse's picture

most borrowers did just walk away and leave the property to the greedy deadbeats, Paul.

Tue, 02/05/2013 - 17:43 | 3217740 waterhorse
waterhorse's picture

and the perp walks and clawbacks of ill-gotten gains these thieving bastards should have received.

Tue, 02/05/2013 - 17:28 | 3217668 Jumbie
Jumbie's picture

They are going to say you violated this and you have to prove that you didn't."

Unlike now, where the banks say you didn't pay, or violated whatever, and the homeowner has to prove otherwise or be evicted by sherrifs? Where banks don't have to show clear title?

"California adopted the robosigning [settlement] on steroids," warns Jackson. "Under this law you cannot file a notice of default or sale (or other action) unless a servicer has reviewed them and has made certain the filings are fine. Without that process you have a violation of HBR."

And so to this author, 3rd party review is apparently a problem that will just cost banks money.


The bottom line is that under the brave new world created by CA AG Kamala Harris and her pals in the trial bar, loan servicers can face civil and even criminal charges for relatively minor errors.

Unlike now, where "relatively minor errors" ar written into finance contracts, or get homes foreclosed.

ShittyBank is the worst; our re-fi (in AZ) went through 6 back and forths with constant errors, all that would have been in favor of the lender.


Tue, 02/05/2013 - 17:27 | 3217665 Widowmaker
Widowmaker's picture

Kill the "TBTF" banks.  Kill every last motherfucking one of them.


Tue, 02/05/2013 - 16:56 | 3217543 Alpha Monkey
Alpha Monkey's picture

The list of authors whose articles I skip just got longer.

Tue, 02/05/2013 - 16:56 | 3217541 DeadFred
DeadFred's picture

I'm racking my brain as to why I should be worried that Citi BofA and especially JP Morgan might get reamed. Sorry, I'm hitting a blank.

Tue, 02/05/2013 - 16:52 | 3217522 Piranhanoia
Piranhanoia's picture

Mr. Whalen, you're a shill for the most corrupt element of our nation.  California tried to mandate the lenders follow California law in the early 90's and went to court to shut down Wells Fargo for abuses tied to lending.   The feds stepped in and said no,  our friends in banking don't answer to your state, carry on with the fraud.  What did WF do?   They regrouped around 98 and collected the worst scum in lending,  Norwest, Dial Bank, and others and created the new company and set these vultures on the population of the entire country knowing the feds would be backing up their larceny.  You personally know no REMIC or MBS is a legitimate contract or contains any secure debt in regard to the homeowner.  It wasn't a bug, it was the feature.  Since you want to be the public face for corruption,  one can only hope the people harmed by your defense of fraud will find you and cook you.  For dog food.

Do you also recommend the eating of children Fat Bastard?

Tue, 02/05/2013 - 16:40 | 3217467 waterhorse
waterhorse's picture

Sorry, RC, but this "chicken little sky-is-falling if the Too Big To Fail criminal cartel banking turds don't get their way' meme just reeks of Jackson's bank fellations/emissions and falls far short of your usual reporting.  I almost gagged on the absolute putridness of this bankster puff piece.  I gave it 1 star.

Tue, 02/05/2013 - 16:17 | 3217381 Atlantis Consigliore
Atlantis Consigliore's picture

Let it all Crash;  remember real estate is a right; and if you dnot give it to em free, theyll sue;

anybody wanna invest in real estate?  it only goes up, the Hooker Realtor  told me so.  shes hooking now in Cali.

or in Vegas on the weekends, dont they all?

rent....RENT....RENT   and write it all off. 


Tue, 02/05/2013 - 16:04 | 3217329 waterhorse
waterhorse's picture

"And Kamala Harris is leading the parade of state AGs seeking to enrich themselves at the expense of servicers and creditors."

FUCK the servicers and creditors.  They had their chance and they FUBAR'd the economy.  REMIC fraud, MERS fraud, securitization fraud, bailouts and no jail for these scumbags.  If crony capitalism will get the hell out of the way, these Too Big To Fails can be replaced with banks who do business the old-fashioned way - no more securitization Ponzi schemes where the public is left holding the tab.

Tue, 02/05/2013 - 16:01 | 3217315 waterhorse
waterhorse's picture

The bankers keep whining about how protecting homeowners will change hundreds of years of property law.  Yet, no mention is made of the quasilegal database MERS, which destroyed hundreds of years of land title records.  The same fraudsters who created this mess and got off scot-free, now want to

It's funny how in the late 90s the insurance industry lobbyists whined about how if the law was changed to favor consumers the insurers would NEVER DO BUSINESS in California again.  That didn't happen, did it? 

Tue, 02/05/2013 - 16:26 | 3217409 waterhorse
waterhorse's picture

Oh, yes, I remember John Courson pontificating on "moral hazard" of homeowner strategic defaults - yet in a "smart and sound business decision which was lauded by all", he strategically defaulted on his company's 18 million dollar headquarters.

Tue, 02/05/2013 - 15:58 | 3217297 Bastiat
Bastiat's picture

Jeez, who woulda thought that systemic fraud, negligence and abuse by originators, servicers and securitizers would end up destroying the mortgage market. No fair.  It's Kamela's fault!

Tue, 02/05/2013 - 15:57 | 3217292 mind_imminst
mind_imminst's picture

The take away I get is that more laws are probably a negative thing in this case. If the original title/property/contract laws were enforced and the MERS perps were effectively prosecuted, we wouldn't need another layer of government bureaucracy, regulations, "rights" etc... The author is correct, IMO that the HBR in CA will just make housing more expensive, add another layer of complexity, and provide a lot more jobs for lawyers and bureaucrats. Some might cheer that there is some superficial protection for "homeowners" but it would have been better if title/contract law had been enforced in the first place. 

Tue, 02/05/2013 - 15:55 | 3217287 Moon Pie
Moon Pie's picture

Sooo, Mr./Ms. Institutional Risk Advisor person, how is it that SPV's were created and then were funded and populated with loans (if they actually made it legally into the SPV/Trust) originated by such shining examples of business ethics and acumen as Countrywide, Taylor Bean, Long Beach, New Century, et al. that have been found in major RMBS (investor) litigation to have clearly acted fraudulently not only to the Trusts, but to the consumer in egregious fashion, and that the Banks/Investment houses on Wall Street could blithely go along with MERS, which destroyed literally centuries of property recordation law and principles all of which conspired to grossly pump property values that led to the most epic crash in American history, how do all these facts fit nicely with your assertions?

The real blame lies with them.  Period.

Tue, 02/05/2013 - 15:38 | 3217220 Bear
Bear's picture

Obama cut Ca loose .... never happen

Tue, 02/05/2013 - 15:22 | 3217171 Au Shucks
Au Shucks's picture

Good, screw the banks, screw the servicing companies, and screw the legislators who allowed this crooked slavery system to exist in the first place.  Bottom line:  if the bank cannot produce the NOTE, the original, signed NOTE, no further payment is due them and they should have NO legal claim to the property any longer... PERIOD.

Tue, 02/05/2013 - 15:13 | 3217147 onlooker
onlooker's picture


------------------------------Since the US Civil War and especially since WWI, debtors have arguably been in charge in the US. Progressive elements use the power of the state to subordinate the financial interests of savers and investors to the popular desire for nominal growth.----------------------------------------------------------------------------------------------------------------------------


I suggest that you first seek professional help. Second I suggest you brush up on American History in the time you wrote about above.


Thirdly, I thank you for reminding the ZH readers that there are truly nut cases both left and right and we all need to guard against the insanities to protect this Nation and the Constitution upon which it is founded. These are indeed troubling times and common sense is the first thing to be attacked during such times.


As far as California goes, a wild cowboy neighbor graded the State in this manner; it has the best roads (a few years back), the best drugs, and the prettiest women. The roads have budget problems, I never made enough money to afford drugs so I can’t comment, but the girls are easy on the eye. The governing body is as dumb as this article.

Tue, 02/05/2013 - 14:50 | 3217063 chunga
chunga's picture

I ask the author here - what's wrong with judicial states?

Oh no, without FNMA, FHLMC, MERS we'd all die.

This reminds me of this shameless crap from the Illinois Bankers Association.

Illinois Bankers Association Response to Supreme Court Committee 4-13-2102

They basically say, while they love following the law, if they're forced to they'll go broke. And that in turn would cause more terrible suffering for the muppets. Bullshit.

Tue, 02/05/2013 - 15:07 | 3217127 mightycluck
mightycluck's picture

LOL! This guy is testifying in the House on tightening FHA standards tomorrow (i saw the list of testifiers and look him up).

Maxine Waters (D-CA) and the rest of the affordable housing whores will go crazy and attack him viciously.


Tue, 02/05/2013 - 15:43 | 3217240 chunga
chunga's picture

Being affordable and being legal are two different things.

Chris Whalen was in the (very good) movie Bailout so this does not make any sense.

Tue, 02/05/2013 - 14:38 | 3217004 shovelhead
shovelhead's picture

This isn't good for "the dog ate my paperwork" excuse.

Tue, 02/05/2013 - 14:36 | 3216997 Rearranging Dec...
Rearranging Deckchairs's picture

Yeah all the more reason I'll have to eventually get out of my native State. They are going to make it so that no one wants to be productive and thus there will be no good investments in California.I can't see how this doesn't hurt the real estate market one more of a thousand papercuts , it will push up servicing costs and thus make loans more expensive. Who knows it might even make it impossible to get a loan for a few months while the banks and servicers figure out how to build the cost into their models.


For the independently wealthy it might be an okay place to live considering the weather.  If one can stomach the tax nazi's at the Franchise tax board and then the city finance departments. They are crazy aggresive and surly as fuck when one actually points out the law to them.


No wonder I'm investing in Nevada Real Estate. LOL

Tue, 02/05/2013 - 18:17 | 3217861 LasVegasDave
LasVegasDave's picture

Dude; you're talking crazy.

People dont gotta pay their debts- that's for chumps.

Money comes from the govt. and rich folks

Tue, 02/05/2013 - 14:36 | 3216993 SmittyinLA
SmittyinLA's picture

While the trial lawyers fight over the rights to pieces of worthless paper the squatters clock is ticking. 


You only have to occupy a house for 5 years and pay the taxes too, but who keeps track of who pays taxes?

Certainly not the lenders or servicers, they don't even know who owns their own book. 

Tue, 02/05/2013 - 14:28 | 3216967 Northeaster
Northeaster's picture

"There is a monkey wrench in every single foreclosure in this country based on what the CFPB has created from its own authority."

Right. It had nothing to do with banks and servicers running roughshod over 200 year old property law right? One of the first things 1L students learn in Contract & Property Law is: ALL fucking real estate transactions must be in writing. 

Then we get company's like DocX that find an innovative way around that law that no longer matters: We'll create shit like allonges out of thin fucking air, we'll even include a price list for you for any of your missing needs.

Robosigning? Pittance, we don't need no legal signatures in the presence of a notary of all interested parties do we? While we're at it, we don't need to pay those ridiculous fees to The Registry of Deeds either.

Nope, we banks don't care, we own CONgress anyways. We gave ourselves another gift for $25 billion, stupid State Attorney Generals, they know who's running the show. DocX? We don't need jail, just another lackey fine.

Fucking serfs, we are the Rule of Law.


Tue, 02/05/2013 - 14:55 | 3217079 GottaBKiddn
GottaBKiddn's picture

Absolutely right. The RE prices in CA are a joke and have been for the last 50 years. It's about time those prices crash to reality, and the bankster/speculators, including all the parts of the RE industry, take it in the rear. Maybe now buyers will have some negotiating power in the transaction. Now the big job is to crush the property tax monster, ala "Jarvis-Gann", all over again.

Tue, 02/05/2013 - 14:25 | 3216951 Seasmoke
Seasmoke's picture

Lokieboy laughs at this article.

Tue, 02/05/2013 - 14:08 | 3216887 Flocking swans
Flocking swans's picture

What the fuck is this?! So, politicians, especially uppity female ones from CA can't regulate against fraud? Why? Fuck that. Fuck the author, and fuck whichever 'tyler' decided this PRO bank POS article got any read.

Fri, 02/08/2013 - 00:04 | 3225105 MeelionDollerBogus
MeelionDollerBogus's picture

As it happens I think it’s very important we know just how arrogant our enemies are, enemies of law, enemies of property rights, and how arrogant they are includes announcing to all of us how arrogant we are to retain our own property rights in the face of their blatant theft & fraud.

It reveals their strength & weakness. Their strength is the corrupting power of bribes & influence-peddling. Their weakness is their DEPENDENCY on the corruption – once it’s changed, moved, adjusted, removed, they’re fucked completely. It’s good that we can & do know this. Sadly we have to actually read their garbage to glean this but nothing comes for free.

Tue, 02/05/2013 - 15:43 | 3217243 Bear
Bear's picture

I love it "uppity female ones from CA" and from NY, IL, DC, MA ... and the uber-uppity one running in 2016

Tue, 02/05/2013 - 15:33 | 3217197 Joseph Jones
Joseph Jones's picture

Ditto.  My nominee for worst ZH article ever.  

Gee, I really feel sorry for all the poor stupid schmucks stupid enough to still live in that scheet hole of a state...NOT!  Love the 1% tax in San Francisco for selling your home.  Love the $37k per household debt for unfunded SF Pension Fund liability.  Wife's freind in CA is paying taxes for employees of her husband's cabinet business.  She can't figure out why one particular tax is automatically doubled in the CA computer program.  She can't get CA phone help (likely the operator is on break planning next vacation) so she calls the IRS, who tells her certain states like hers automatically double certain taxes to "voluntarily" help pay down state debt.  While state prisoners get state paid sex change operations, etc.

Person I know lives near Fisherman's Wharf, condo, 1400sf valued at $800k.  Plan on getting mugged if you walk in the neighborhood after dark.  I know police in that city.  They are so scared of discipline from multiple citizen review boards that all they do is plan how to live long enough to get their handsome pension and get out.  No one wants to arrest anyone.  Worst arrest rate in the USA for violent felonies.  At least they are politically correct though, plenty of LGBT police!

Years ago my wife volunteered at Sonoma County Office of Education, palatial building in Santa Rosa.  Favorite "employee" pastime (practically all they did) was stand around talking about past and future vacations.  My wife worked harder for free than paid empoyees. 

Inmates took over this asylum decades ago.  

Moving from that crap hole best move of my life.  Unfortunately, they're bringing CA to the state I moved to.

Tue, 02/05/2013 - 13:57 | 3216842 Boxed Merlot
Boxed Merlot's picture

Jackson told the HousingWire audience that the game has changed for loan servicers operating in CA: "It used to be servicers were in the business of enforcing simple contract law. What loan servicer did is they enforced the contract. But that is no longer how the game is played."...


And the downside is? 

 I'm glad to see servicers will no longer be allowed to enforce simple contract law.  That's the duty for the courts.  Servicers are certainly allowed to bring an action when there's a dispute with a contract, but as much as I hate attorneys, the place for adjudication lies with the court, not with servicers and their previous SOPs. 

Now, if we can do away with ben's insidious frns and the feverish exchanging of his crap for the bifurcated deeds fannie and freddie are allowing him to redeem from their collections.   There ought to be a clawback provision against any bank allowed to reconnect an illegally bifurcated deed to a subsequently lifeless promissory note imo.  The control fraud of these people knows no bounds.

Tue, 02/05/2013 - 13:34 | 3216766 williambanzai7
williambanzai7's picture

This is hilarious, rewriting centuries of contract law. You can't be serious? 

Did you have a mortgage note with your Linda Green eggs and sham this morning?

Tue, 02/05/2013 - 13:30 | 3216755 granolageek
granolageek's picture

So inRC Whalen's world, robosigning is ok? So in RC Whalen's world document farud is ok? So in RC Whalen's world it's ok for a bank to string someone along that they are negotiating in good faith for a modification, while actulally trying to set them up for foreclosure?

I wonder what else is ok in RC Whalen's world?

Fri, 02/08/2013 - 00:05 | 3225111 MeelionDollerBogus
MeelionDollerBogus's picture

pretty much this is opposite to all Chris Whalen’s stood for in the past. My estimation is he wants us to KNOW what the other side is up to.

Tue, 02/05/2013 - 22:48 | 3218652 malek
malek's picture

So in your world, two wrongs make a right?

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