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The Epic Farce Continues - US Attorneys General "Robosigned" A Foreclosure Settlement Which Does Not Exist

Tyler Durden's picture




 

It is only appropriate, and so ironic, that a politically motivated settlement whose purpose is to squash any claims of pervasive defective document fraud (and contract law but just ask GM bondholders about that - it's hardly news) is itself found to be... defective. American Banker reports that the reason why the terms of the so-called historic (just ask the Teleprompter in Chief) foreclosure settlement deal are not public yet, is "because a fully authorized, legally binding deal has not been inked yet." Wait, so America's cohort of AGs just all, pardon the pun, robosigned a piece of paper that does not exist? What next: there is a different Linda Green signature on every page of this yet to be produced document making a complete mockery of the rule of law?

Oh and anyone who had doubts that the settlement, which incidentally is paid for by you, dear taxpayers, in the form of bank bailout cash, of which the banks still owe over $10 billion in some capacity, was merely a political ploy to get taxpayers to fund Obama's reelection campaign by subsidizing squatters with $2,000 per vote in the presidential race come November, using banks as intermediaries to make the administration seem oh so powerful and daring to take on the banks, who in fact are the only ones benefiting from this farce, by holding a gun to the head of the hold out AGs forcing them to sign a piece of paper that does not even exist, this should put all those doubts to rest.

American Banker has the story:

The implication of this is hard to say. Spokespersons for both the Iowa attorney general's office and the Department of Justice both told American Banker that the actual settlement will not be made public until it is submitted to a court. A representative for the North Carolina attorney general downplayed the significance of the document's non-final status, saying that the terms were already fixed.

 

Other sources who spoke with American Banker raised doubts that everything is yet in place. A person familiar with the mortgage servicing pact says that a settlement term sheet does not yet exist. Instead, there are a series of nearly-complete documents that will be attached to a consent judgment eventually filed with the court. That truly final version will include things such as servicing standards, consumer relief options, legal releases, and enforcement terms. There will likely be separate state and a federal versions of the release.

 

Some who talked to American Banker said that the political pressure to announce the settlement drove the timing, in effect putting the press release cart in front of the settlement horse.

 

Whatever the reason for the document's continued non-appearance, the lack of a public final settlement is already the cause for disgruntlement among those who closely follow the banking industry. Quite simply, the actual terms of a settlement matter.

 

"The devil's in the details," says Ron Glancz, chairman of law firm Venable LLP's Financial Services Group. "Until you see the document you're never quite sure what your rights are."

 

"It's frustrating," agrees Stern Agee analyst John Nadel. "But it's not unlike anything else that's been going on in financial reform generally, is it?"

That's about right - ever since America became a centrally planned, communist, banana republic with occasional fascist overtones, financial reform in the US is all about frustration: primarily frustrating one out of the will to continue living in a country that would make Stalin green with envy.

American Banker asked The Department of Justice, the Department of Housing and Urban Development, and the offices of Attorneys General in Iowa, North Carolina and Colorado for a copy of the settlement last night. Only Iowa, North Carolina and the Department of Justice have responded, saying that the document would not be available until it is filed with the court on a yet-undetermined date.

Kidding aside, can the bankers who are getting "punished" as part of this deal, please advise the public and the AGs who punished them, just when they plan on releasing the final draft?

All we can say is: Linda Green.

 

 

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Fri, 02/10/2012 - 16:37 | 2147472 Yen Cross
Yen Cross's picture

Payback time for the Mom and POP shops that found lending without recourse?

Fri, 02/10/2012 - 16:39 | 2147480 non_anon
non_anon's picture

when shall we grab our pitchforks and say enough is enough, already

Fri, 02/10/2012 - 16:41 | 2147493 RSloane
RSloane's picture

I'm with the guy who said he needs a fucking sedative. Every god damn day its something different that scream what a bunch of inept and corrupt people we have running the system, or what's left of it.

Fri, 02/10/2012 - 16:47 | 2147518 non_anon
non_anon's picture

yep, have my liquid lunch already and ready to back that up with a toke

Fri, 02/10/2012 - 17:09 | 2147599 jowenchrist
jowenchrist's picture

Dont bogart that joint, my friend ! 

Fri, 02/10/2012 - 17:15 | 2147625 non_anon
non_anon's picture

thanks bro, using a bong

Fri, 02/10/2012 - 17:20 | 2147644 surf0766
surf0766's picture

They are leaders. Please use the correct term

Fri, 02/10/2012 - 16:43 | 2147500 Yen Cross
Yen Cross's picture

 I agree with 99% of you. Can we take it to the 9'th circuit court?

Fri, 02/10/2012 - 16:46 | 2147507 rsnoble
rsnoble's picture

Projected out unless that last few minutes get ugly, a -100 down day on low volume is not an event.  Monday is the important day. If we are below the trendline everyone's looking at today everyone will call it a breakdown. That's not true. It takes more than 1 day to call, I don't care to explain myself let's just say it works 80% of the time.

We'll see how she ends.  I'm in the camp it's long overdue but the Fed isn't.  I think they would prefer to hold off on more QE as long as possible vs. everyone thinks they want to bring it down. If they wanted to bring it down it would already be there.

Fri, 02/10/2012 - 16:47 | 2147511 SillySalesmanQu...
SillySalesmanQuestion's picture

There has been enough tragedy and comedy on these pages for the last two days to produce a Greek drachma....oooops drama.

Great work this week Tyler!

Fri, 02/10/2012 - 16:49 | 2147520 tony bonn
tony bonn's picture

propaganda is a powerful tool indeed....

remember inflation only exists because of irrational thinking - not the result of physical monetary phenomena...

Fri, 02/10/2012 - 18:42 | 2147527 Yen Cross
Yen Cross's picture

Skakespeare/ the progenitor of WAR! I spelled it right the first time Tyler!

Fri, 02/10/2012 - 16:51 | 2147537 Westcoastliberal
Westcoastliberal's picture

The political pressure on these AG's must be tremendous, but I'd really like to hear any of them explain how in the world any settlement can be reached without investigating the crime and determining its scope.  From everything I've personally experienced going through this mess, and from reading about the experiences of others, I'd suggest that the Billions actually need to be Trillions.  Sure it would wipe out the TBTF's, but then the people and investors would be made whole, and it's that really the point?

Fri, 02/10/2012 - 16:54 | 2147538 youngman
youngman's picture

Here is my take on the "settlement"..its a funding mechanizism....the states sue...the banks settle..the Feds fund the TBTF banks....the states get bailed out with Fed funds thru the back settlement door...the States use that money to cover there deficits...the Federal Government can´t bail them out thru the front door...the states sue again..the banks settle again...the states have more "bailout" money...the Feds loan the TBTF banks money at zero % interest...the press demonizes those bad banks for taking advantage of the little guy...so its OK with the sheeple to sue them over and over again....it goes on and on...and trillions more in the holes...and teh Federal Government can turn it into a big social housing program.....quite an scam eh?????

Fri, 02/10/2012 - 16:53 | 2147543 non_anon
non_anon's picture

yeah, OT, but I'm a stupid fucker living in Calistupification

One out of every four Californians has no medical insurance. But $2 billion in taxpayer money is being spent each year to provide medical care to California’s prisoners.

http://sanfrancisco.cbslocal.com/2012/02/09/san-quentin-inmates-taken-outside-prison-for-sleep-studies/

courtesy Drudge

Fri, 02/10/2012 - 16:57 | 2147556 Burr's 2nd Shot
Burr's 2nd Shot's picture

Another example of a government sponsored faith-based initiative

Fri, 02/10/2012 - 16:57 | 2147558 boatwhiskers
boatwhiskers's picture

We have to sign it to see whats in it.....oops thats healthcare

Fri, 02/10/2012 - 17:15 | 2147618 RSloane
RSloane's picture

Seriously. They pass fucking bills that no one has read then cheer for themselves. Dodd said recently he still hasn't read Dodd-Frank. Stupid fuckers.

Fri, 02/10/2012 - 17:34 | 2147685 A Lunatic
A Lunatic's picture

Yet when the dust has settled we all obediently plod on................Who's stupid again?

Fri, 02/10/2012 - 17:40 | 2147712 RSloane
RSloane's picture

I hear you loud and clear.

Fri, 02/10/2012 - 17:00 | 2147562 Yen Cross
Yen Cross's picture

  I'm blinded by the HAZY shade of winter! A Simon and Garfunkle approach.

Fri, 02/10/2012 - 17:06 | 2147590 Cult of Criminality
Cult of Criminality's picture

"The Epic Farce Continues - US Attorneys General "Robosigned" A Foreclosure Settlement Which Does Not Exist"

Somebody should let the FBI in on it

Fri, 02/10/2012 - 18:37 | 2147881 Yen Cross
Yen Cross's picture

Fast and Furious! Eric Holder style. ( The 5th)

Fri, 02/10/2012 - 17:06 | 2147591 Catullus
Catullus's picture

Did the administration try the ole Jedi Mind Trick on this?

Actually, they're probably reading ZH realizing this is not going to go over well. Whatever, they'll just dump it in a defense appropriations bill post hoc pardoning them like they do everything else.

Fri, 02/10/2012 - 17:11 | 2147603 Heavy
Heavy's picture

AGs: Well here's this big turd, lets put it in the punch bowl and hope people drink the koolaid. 

Fri, 02/10/2012 - 17:12 | 2147608 PatBateman
PatBateman's picture

"These swine should be fucked, broken, and driven across the land." - Hunter Thompson

Fri, 02/10/2012 - 17:22 | 2147648 Piranhanoia
Piranhanoia's picture

They forgot to do the investigation into the acts of the bankas. One of the requirements of the deal was that there be an investigation.

So, the deal has been canceled like the law.

Fri, 02/10/2012 - 17:24 | 2147652 MrBoompi
MrBoompi's picture

I heard in Wisconsin they plan on using the majority of the money for the general state budget!  It won't even go to peopple who were illegally foreclosed upon!  What a fucking banana republic this is.

Fri, 02/10/2012 - 17:58 | 2147761 NotApplicable
NotApplicable's picture

I believe the term you're looking for is socialist utopia.

Fri, 02/10/2012 - 17:30 | 2147677 DymanicDoug
DymanicDoug's picture

....THIS does nothing for the corrupted title record, this does not create valid liens on fraudulent mortgages/or home sales and is very very limited in its scope, this does nothing for displaced buyers from wrongfully foreclosed homes NOT covered in an illegal sale of wrongfully foreclosed property...the Federal judge may say NO, this really stinks..he has before, and has proved to be a real standup juy for the other side of this settlement..the many many people and organizations who bought the MBS (or rather "infered") junk that is the root of all this forgery..Very much a shaam settlement...Facist/Propaganda..most people can not grasp the full extent of the fraud involved, even the one's who we pay to over-see this...the experts in this subject are the Federal bench Bankruptsy judges, not political critter AG's

Fri, 02/10/2012 - 18:11 | 2147807 NotApplicable
NotApplicable's picture

Sure it does, it keeps all that messy stuff out of the news.

Neat and clean, like a well-oiled machine.

Fri, 02/10/2012 - 17:33 | 2147679 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Title closing defects are rampant, esp those between 2005 and 2008. I read over 87% have a defect.

Wait until the seller tries to sell a house he doesn't own...or the next buyer figures out the seller he bought from did not have "good title" and watch the SHTF by the thousands.

This happened during the last RE bubble in the 1980's...I know...it cost me $145k in legal fees and court battles to "fix" my title defects.

GL to thfoolish...oops, I mean brave enough to buy any RE in this market.

Fri, 02/10/2012 - 17:57 | 2147757 KCMLO
KCMLO's picture

Did you buy a title insurance policy with your original closing?  I'm not trying to razz you if you did or didn't, I am just curious how a defective title doesn't enact a title insurance payout considering that's the entire purpose...  I know it's not required for the purchaser but mortgage companies usually require a lender's policy to be bought at the home's closing.  Did this come into play at all during your issues? 

Fri, 02/10/2012 - 19:46 | 2148085 Dermasolarapate...
Dermasolarapaterraphatrima's picture

I did buy "title insurance" only to find out later that title insurance is next to worthless. Ask any law professor in RE law and they will expalin to you why.  Sad so many still believe this farce.

My advice is hire a lawyer for any RE transaction...be sure he specializes in RE law. Ask your local law school or bar association for one. The fee is usually pretty reasonable to help you be sure you have good title and the transaction is proper. Pay a little now to avoid a potential huge legal bill and anxiety later.

I'd wait a few years before I bought any RE now given the massive problems in that market right now. In 5-7 years there will be too-many-RE deals to count in my experience.

GL!

Sun, 02/12/2012 - 14:40 | 2151082 hidingfromhelis
hidingfromhelis's picture

When the title defect chickens finally come home to roost in this clusterfuck, the title insurers will have closed their doors and scooted out of town.  Regardless of whether or not you have insurance, remember it's only as good as the insurer.  When the SHTF, and there are claims by the thousands or even millions, who do you think is going to be there to pay?  Hmmm, come to think of it, I smell another settlement approaching!

Fri, 02/10/2012 - 17:52 | 2147745 KCMLO
KCMLO's picture

Any chance Judge Jed Rakoff could be the presiding judge in the court approval process?

Fri, 02/10/2012 - 18:14 | 2147816 blindman
blindman's picture

http://www.australiamatters.com/cms/?p=1485#comments
.
Verbewarp
February 10, 2012 at 12:08 pm
"Well, last night was the event which will have the greatest impact on humanity since the black plague. “ring-a-ring-of-rosies”, appears totally appropriate for a precise analogy between the two phenomenal events. It was reported that the cabal of US Attorney Generals had agreed to a deal that allowed the Banks to blatantly break the Laws of the Land with impunity; past – current - future.

One of the great insights that the US Fathers had was the right to own Property; Private Property in Fee Simple and that right became the core economic driver of the USA – until – the Banks discovered “securitization” in the form of RMBS and all similar and related financial concoctions. When these toxic transactions were questioned at some stage there appeared in the minds of lesser men that not only here there be no value, but the apparatus set up to facilitate the feeding frenzy and lusts of insatiable appetites to make book of the initial assumptions to their profitability, was not only illegal but seriously flawed.

First step was foreclosure before house prices fell to their current ~50% + off purchase price and then step 2 was initiated that required the forgery of deeds of transfer and the whole gambit of Regulations under Law that had been in place since the 17th, Century to protect the very foundations of the then Constitutional Republic of the USA. The Bank innovation is now called “robo-signing” which entails unknown peoples forging the signatures of known peoples onto legal documents required by the Court system (by the individual State Law Systems) and presented to the Courts under Oath. The evidence is ubiquitous and pervasive that these frauds run rampant throughout the USA.

Enter, or so it has been reported, the Federal Government which over-rides the Land Laws of all the States and deems in one sweep, that the Banks did no wrong, and can just keep the scam going while forgetting about established Laws of the Land. And, this is from a President who claims that he is a Constitutional Lawyer?

To the point: The whole US and global banking systems have over the past decade or two (hic) have immersed themselves...."

Fri, 02/10/2012 - 18:48 | 2147925 Raskolnikoff
Raskolnikoff's picture

Suppose you have a concentration camp complete with prisoners, guards and the commodant. OK, it sucks to be a prisoner, some deserve some type onf incarceration, most were just picked up by the paranoia of the ruling establishment. Who are the ruling establishment, well, the guys that pressured the guards to do business with alot of the prisoners. The ruling establishment meant to suck it up with the prisoners but in a quirk of schizophrenia decided that there were rules after all and they were going to take back every kissy face suck-suck they ever hinted of giving to the prisoner, now the commodant and guards are the guys in the middle. They, the guards and commodant are by no means innocent, yet they are surely lower in pecking order than the tempermental and stupid ruling body. Banks are the smoke screen, one of the last layers before you get to the middle of the onion. The core of the onion is where you'll find the target, the one that manipulates the banks, the commodant and the guards.

Fri, 02/10/2012 - 18:20 | 2147826 W10321303
W10321303's picture

Each state's AG office will get 10s of millions of the settlement for thier signature, if not more. The two-tiered 'just-us' system has now become institutionalized. The Massa Choose well when he decided which Negroes to allow into the Big House. (Source DemocracyNow.org & NakedCapitalism.com)

Fri, 02/10/2012 - 18:31 | 2147861 DevilsPrinciple
DevilsPrinciple's picture

Kiss The Foreclosure Settlement Goodbye: Bank of America, Wells And JP Morgan Are Sued Over Use Of MERS ^^^^So what the freep happened to this ?^^^^^ Noo Yawk State fils a detailed lawsuit 8 DAYS AGO and now????? These fraudsters SUKKKKKKKKKKKKKKKKKKKKK dead donkey Koch !

Fri, 02/10/2012 - 20:16 | 2148153 Archon7
Archon7's picture

They "deemed" it signed... just like Obamacare.  What next?  We "deem" the Constitution, Bill of Rights, all Amendments, and why not just throw in the rule of law, to be repealed?

Fri, 02/10/2012 - 20:46 | 2148232 CulturalEngineer
CulturalEngineer's picture

Why have the Boards of Directors of these TBTF instruments of national destruction not been removed at the least? Let alone prosecuted both civilly and criminally...

They are fully aware that the institutions they head have committed illegal acts... and rather than cop to it and fix it... they've sought bailouts and immunity.

Any politician NOT working for their removal and very public disgrace (at the very least) is NOT on your side. 

And it might help if the rest of us let them know how we feel more often than once every few years when we're presented with a couple of corporate approved choices.

Issues in Scaling Civilization: The Altruism Problem

http://culturalengineer.blogspot.com/2012/02/issues-in-scaling-civilizat...

 

 

Fri, 02/10/2012 - 20:53 | 2148255 Kina
Kina's picture

We are all Linda Greens now. Like playing air guitar.

Sat, 02/11/2012 - 09:47 | 2148994 mojine
mojine's picture

Pulpcutter just like Honey Badger. He don't care! Oohh- there he goes running backward again!

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