How Obama is Stopping Foreclosures

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18 months Obama has been in office. We suffered waiting for the administration to get the facts and develop a plan to do something about it. To tell you the truth I never thought of this way, but he’s right — it is the best way possible.

It took 35 years for us to get into this mess and now the young president came up with a plan to fix the foreclosure mess, change the housing market, and change our economic prospects from bad to at least possible. The government owns the majority stake in GMAC which handles hundreds of thousands of loans. Oversight of GMAC is by Obama and his administration. The order was given to stop foreclosures, stop hiring people who were falsifying documents and stop evictions, sales, auctions and everything else.

Why? Because the administration was coaxed and coached by some people who have not received sufficient credit yet from the U.S. Senate and from the House of Representatives. In 18 months the President understood what was going on and developed a plan that was designed to stop it dead in its tracks. GMAC was the vehicle for the action, (pardon the obvious double meaning) for stopping all foreclosures throughout the nation. The rest will now unravel on its own and much more quickly than you might imagine.

I don’t care about politics, political parties or ideology. I care about people living in their homes and getting back into their homes. The President just made that possible by forcing the entire industry to its knees. That took a creative plan and an iron will backed by certainty he was right. He waited, to our horror, as millions of foreclosures were pushed through, but until he was sure he knew what was happening and that he wasn’t busting up a legitimate system, he wasn’t going to act. Once he “got it” he acted. And now people are entitled to stay in  their homes, regain their homes, and get damages and even punitive damages. Suddenly 18 months doesn’t seem that long.

I give credit where credit is due. President Obama deserves credit for this bold action that stopped the foreclosures better than any law, legal decision, or politics. As the dust settles from this action, you’ll see what I mean. The jig is up. Pretender lenders are now going to have to answer for their actions in ways they never imagined — including in some cases loss of their freedom as they count days behind bars. The house of cards is in the process of falling. We are no longer watching a train wreck in slow motion. The light at the end of the tunnel is no longer an oncoming train, it is justice.

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43 Responses

  1. Frankielee,

    My email link is working. Don’t quite know why it didn’t work when you were trying.

    Again, it is: LawOfLiberty@gmail.com
    No spam please.

    I just saw your posts on BOA Halts Foreclosure In 23 States. Thank you!

    NO SPAM PLEASE.

    Lucy,

    The legal system works if you know how to use it. Try this for help with it–for pro se:

    http://JurisdictionaryLaw.com

  2. Concerning Obama alleged to have put some stop on foreclosures—I am sorry to say that I can find no confirmation of that claim anywhere else on the net or in other news media.

    As far as I can see, no reference is given by you, Neil, to anything Obama or anybody has done that could or would put any stop to any foreclosures. You give no reference to any Executive Order or anything to substantiate any such government action. You only mention GMAC—and GMAC certainly does not control or have power over other alleged lender/servicers such as BOA, other institutions, credit unions, etc., in any way that that I know of.

    If any of you see what I have missed or if you have some confirmation—let me know.

  3. Thank you BwRight.

    I agree that we the homeowner that is trying our best to fight foreclosure is in dire need of info on how to fight against these giant pretender lenders. First of all, finding a good lawyer is almost impossible !!!

    Is NJ so off the chart that there is no lawyer who are as passionate as Matt Weidner or Ice legal team? Mind you, these lawyers are all in FL but you look up Nj lawyer and we have 3 listed, and they are either from PA, NY.

    You wouldn’t believe the lawyers that are defending the homeowner, they are so ignorant, arrogant, incompetent….

    How the hell can we win when we can even get a good representation?

    Can you tell me what we can do when our own lawyer is not doing their job correctly? We are paying, paying ,paying for what? either mortgage or lawyers fee….
    How many ways can a poor homeowner get screwed?

    The whole legal system sucks !!!

  4. conspiracy theories and legal advice do not mix…!

  5. B wRight, I couldn’t get your link to work. Is it right?

  6. This theory sounds like “I know there is a pony in here somewhere” …. if Oil-Bama has done anything whatsoever right, I will believe that when I see it. Meanwhile this treacherous traitor has reported Arizona to the UN Commission on Human Rights – don’t ya feel better knowing that Jan Brewer will be scrutinized by Libya, Iran, Saudi Arabia, China, Cuba and other paragons of human rights virtue? He belongs at the end of a rope!

  7. Some may find helpful the law course for pro ses at the following link helpful. It has given me a better understanding of how to go into court prepared and strong against the opposition. We are pro se fighting unlawful foreclosure by BAC Home Loans Servicing, LP/BA, was Countrywide Home Loans, Freddie Mac etc., all MERS. It’s good for anyone anywhere. Its out of Florida by a 26-yr practicing lawyer, who is actively involved with foreclosure cases in Florida. He had the course out years before this opera hit center stage.

    http://JurisdictionaryLaw.com

    Best to all,
    BeRight

  8. Response to article “How Obama Is Stopping Foreclosures”.

    Though I have appreciated some of your reporting here, Neal, I
    don’t see any documentation in this article validating your report
    and claims. Nor have I seen or heard any “news” of the alleged
    good news you write of in this article, nor has anyone I’ve asked.
    Have I missed something?

    How has Obumer (Thank you, Laurie Mendoza.) “brought the
    industry to its knees”?

    The whole tenor of this article makes you sound like a secret agent for corruption, Neal, having suddenly appeared. I am surprised! But then, I am only acquainted with you from this blog. Why have you changed positions now?

    Whether your article reports truth or not, how does stopping GMAC foreclosures assure anyone that they will keep their home without further threat and plunder? How does it help anyone else? How does it get anyone back in their homes already stolen from them through Obumer’s work? How does it remunereate those defrauded from their homes and property? How does it remunerate those who have been defending their own cases at great time and expense and with family and personal stress and emotional pain? How does it make corruption incorrupt, and injustice just?

    News is interesting, at times, but it usually offers no practical help
    or solutions, which is why I don’t give it any attention. It’s usually
    skewed in favor of unjust gain, or designed to confuse while
    pretending to help, having the motive of unjust gain.

    To truly “love your neighbor as yourself”, it would be MOST
    beneficial and HONEST if a lot more is said on this blog that will
    actually help homeowners against foreclosure crimes, giving steps they can take without getting a lawyer, and that would also be information they should use to check out a perspective attorney and keep him/her on their toes while handling their case. People are intelligent beings if they just know what to do AND do it.

    Why haven’t you, being a lawyer, used this blog, your knowledge, skill, and heart to help people understand their rights and defenses against these crimes, and how to personally make their claims in correspondence with the companies and in the court if necessary? Because you prefer to sell expensive and probably unnecessary services? If the people only knew what I’ve come to learn!

    For example, this blog could show samples of show-stopper
    correspondence to the companies and to state government offices (like Office of Consumer Protection, Attorney General, Director of Commerce, Secretary of State (Hawaii, Lt. Governor) Governor, legislators (state and fed.) asking formidable questions–seeking proof, proof, proof, evidence, evidence, evidence. Written communication requiring answers by written response from the companies involved in the particular case can build a case strong against them that they won’t want to see you in court. You expose by inquiry the deceptive complexities and practices against which the laws protect human beings, which state and federal laws are to be quoted or referenced in the letter. Such as, laws that require both contracts and laws to BE PLAINLY STATED; contracts are VOID for deceptive practices; contracts VOID for no meeting of the minds, and much more that makes sense to the common man.

    No meeting of the minds might be, for example, if you did not know at signing; 1) that YOU WERE BEING REPRESENTED AS A COMMERCIAL ENTITY WITH POWERS OF COMMERCE and not as the human being you are (if you are not an artificial person/entity), if you are what is often called a “consumer”, (but I object even to that label–it’s a term of art hooked into commercial law), such false representation makes the contract/mortgages VOID; 2) that your loan was written as a commercial contract/ commercial paper and not as a “consumer” loan or loan on your homestead, making it VOID; 3) that the debt collection practices stated in the contract likely make it VOID for violation and misapplication of law; 4) that the interest rates (combined with all fees and other charges) in the mortgage are usurious, exceeding state and federal law, in some states making it VOID (not in Hawaii); 5) that a human being CANNOT WAIVE, even if they ignorantly signed to waive, certain guaranteed rights and protections, making the papers VOID; 6) that disclosures had to be provided AT LEAST 3 DAYS IN ADVANCE of loan signature or contract is VOID; 7) that no purchase money investment was made by the pretender lender, making it without standing and VOID; and many other such FACTS AND LAWS on the side of the homeowner. These types of statements are in ALL STATE AND FEDERAL LAW.

    People need to know the questions to ask and how to keep hammering them to the companies, attorneys, and government
    offices. The proper correspondences build your case OUT OF COURT that you are doing all you know to lawfully answer illegitimate claims; to stand against illegal foreclosure practices; to understand more fully the documents you signed in the realization now that “I didn’t intend that! I didn’t know this means that!”; that you have exhausted administrative remedy (answers, help, and remedy through government process by state law); etc., etc.

    Being a lawyer and well educated and experienced in the above
    matters, Neal, you can teach these things that will be of immediate
    help to the suffering.

    What are you willing to teach about: Rights of and holder of Title?
    Quiet title? Holder in due course? Terminating the mortgages and
    liens with termination statement by the debtor–UCC-3?

    It would also be MOST beneficial and HONEST to all your readers if you would start teaching them HOW to find and research the laws in their favor and against these companies and their fraudulent mortgages, foreclosures, and against their parent and regulating governments, etc. Show them about standing and no standing, etc.

    Use various states’ laws in examples. I can tell you that Hawaii is probably the hardest state for finding statutes needed.

    You have alluded to some of these things, Neal, but have kept it all, more or less, in the realm of “beyond” the common man who needs the help. You have not put it in a form for immediate use.

    If you are afraid you won’t be paid, you won’t be paid. YHWH takes care of those who help the poor and needy, the distressed and weak. I know this by the Word of YHWH God and by experience. He will not let the righteous generous be without plenty.

    I am not a lawyer or political activist and have had to learn MUCH
    by suffering over reading the fraudulent documents, state and
    federal law, communications from the companies and government
    contacts (not mere reading, but by literally scores of re-readings,
    defining words, etc.) and much tedious cross-referencing of the
    “foreign language” of the Hawaii Revised Statutes (HRS), and
    Revised Code of Washington (RCW), (with relatives faced with
    foreclosure in both states), of Real Estate Servicing Practices Act
    (RESPA), Fair Debt Collection Practices Act (FDCPA), United States Code (U.S.C.), Uniform Commercial Code (U.C.C.), and more. Folks, RESPA and FDCPA are most likely referenced on your loan statements and in your contracts (mortgages, etc.) and they bind the companies by federal law. Learn to use them in correspondence and to a judge if you need to.

    People, YOU must learn how to choose and sling killer stones at the giants’ foreheads. Plant them deep. Be copiers of David, and you, too, will reign as kings. Even David must have been taught by someone in his boyhood and he added his relationship with YHWH to the skill taught by another man. Most importantly, he sought and obtained the promised wisdom of YHWH in everything.

    Maybe my son and and I and the friend who has helped us learn
    should put up a website on the lines of the above. By the grace and leadings of The Most High God YHWH and in the authority/ name of Jesus the Christ, we have obtained 4 postponements to the presumptuous auction sale (Hawaii non-judicial foreclosure), using the methods I recommend above with government offices,
    attorneys, and with BAC Home Loans Servicing, LP, which has NO standing, nor does Bank of America, nor does MERS, nor does the pretender lender Countrywide Home Loans, Inc.–which has no purchase-money invested in the property. Some of these
    postponements happened within mere hours of the intended
    fraudulent sale. Now the sale is stopped. It seems they expect a
    signature on another fraudulent document called a “Forbearance
    Agreement”. Signature is NOT going to happen!

    Where we are now is developing a petition to the Land Court to amend the Title to terminate the mortgages to quiet title.

    The actual VERY BEST POSITION AND ACTION to put this whole
    matter to rest is for each of us to claim our inheritance to our absolute, divine right to our land and houses by the law in the Will
    and Testament of Jesus the Christ.

    The Most High God and Father YHWH covenanted this earth to the dominion of man as His undergovernment. He did not give it to the enemy of man, and certainly not to artificial entities. The man that YHWH God brought through the lineage of Adam (specifically through Noah’s son Shem and his line down through
    Abraham>>David>>Joseph, the husband of Mary) to recover the
    earth to man from Adam’s forfeiture, is the man Jesus, whom He
    Anoninted (Christ) for this purpose, as prophesied and according to the law.

    By the will of YHWH God, Jesus the Christ died, as prophesied
    according to the law and covenant, and was resurrected by YHWH
    and placed as chief heir of his own Will and Testament, being a man. By his death, and his resurrection by YHWH, YHWH established Jesus and his spiritual family in the promised inheritance of all this earth that was abnegated and abdicated by our first father Adam to the lying Serpent and his agent children–
    the liars, theives, and murderers.

    Our claim on the Will and Testament of the man Jesus the Christ is just, honest, and true according to the will and testimony of YHWH in His Word written in sacred scripture, the Holy Bible. If you believe by the Word of YHWH God that Jesus died for your sins, that you have been forgiven the sin of agreeing to pay usury, of becoming a debtor, and of just plain not being the image of YHWH God, then you are no longer a debtor and owe no man nything but love. I encourage you to stand boldly on this claim in world society.

    I am seeking of YHWH God just how to effectively make this claim in court and out of court respective to all liens (inaLIENable, not
    possible to aLIENate your right and inheritance from you, not
    possible to put a LIEN/DEBT on these rights), including all taxes–
    income, sales, licenses (drivers, business, etc.), and more, which
    bind you ONLY by agreement with government to be one of its
    commercial children/entity, which I think none of you ever meant to
    do or could do lacking understanding.

    A side benefit of enough of us doing this would be to hone the government servant force down to where it most logically and
    intentionally by the constitutions ought to be, rather than as it is now as a kingdom in and of itself. No money, no power–as you can see is being done to the people.

    If anyone reading this knows, or knows someone who knows, how to effect this stand before earthly “governments” and “authorities”, please send particulars to BeRight1@gmail.com. No spam or ads, please.

    People, keep in mind that we the people are the final authority; our
    servants only govern insofar as we authorize and allow.
    Constitutions bind down government servants and agents, not the
    people. Constitutions are the will of the people for effecting the will of the people. In this country, governments are the people.
    Government servants are our servants (to be thought of as, Citi Zens’ servants).

    Everything is upside down: the government’s servants should NEVER be in the face or affairs of the people. The people should EVER be in the face and oversight of their (government’s) servants.

    Since commercial entities are children of the government’s servants, they should NEVER be in the face or affairs of the people.

    Believe it or not, we the people, the government, the ruling body individually and corporately, OWN EVERYTHING! SO, PEOPLE, ACCEPT YOUR POSITION AND ACT AS DILIGENT, WISE, KNOWLEDGEABLE RULERS. LEARN AND DO!!!!

    Above all, the children of God YHWH by the authority of Jesus the
    Christ, rule over ALL people, and our right and law of sovereignty is LOVE–Love YHWH God supreme with your all of everything
    personal within and without, and Love your neighbor as yourself.

    LOVE does not mingle with error and sin. LOVE holds its dominion over sin. Consider the ministry of Jesus the Christ. He set the captives free from all holds of enemy oppression–from sickness, demon possession, raised the poor and destitute in knowledge, wisdom, and ability to reign as kingdom rulers and ministers, and he put down all oppressors and frauds by the same.

    Again, LOVE DOES NOT INDULGE OR HAVE COMPASSION ON EVIL. LOVE CONQUERS EVIL. Did you ever see someone indulge a person in a destructive habit or practice to their benefit?

    If you know anyone with a heart for the millions suffering by the crimes of these money-changers who can put up a website or two for me, based on donations, as we receive, please refer them to
    BeRight1@gmail.com. We have enough substantial material to help others with at this point, by the grace and leadings of YHWH the Most High God.

    Implementing the above suggestions on this blog, Neal, might make donations to you worthwhile.

    I did not intend to make such a lengthy writing, but may it be of
    some benefit to someone.

    Respectfully and sincerely,
    BeRight

  9. If you think that once the republicans they will help you with your foreclosure.. you are brain dead.. Republicans believe in unregulated market, true capitalism and the YOYO system (you are on your Own).

    If republicans win power.. they will shut down any effort by the DEMs and Obama to crack down in the banks.. they will shut down government just like they did in 95.. and spend all of their time trying to impeach Obama..

    The homeowners will be the last thing they would care about.. look it up .. people in foreclosures are less than scum in their dictionary..

    pray DEMs stay in power.. because if you think DEMs are in bed with banks.. GOP is the sleazy prostitute servicing Banks that will do anything they say for political contributions

  10. Everyone scroll down and read Patrick’s comments, if you haven’t already. That’s the one that hits it on the head.

    Still, if Obama did SOMETHING to stop some foreclosures, that in itself is a good thing, and we need to be able to use that to still further our cause.

    I don’t trust our current usurper in the White House, or his appointees, at all. We may never know the true, behind-the-scenes reasons why this happened….but let’s take the ball and run with it anyway! Stop the land-grab!

  11. so if you were put out of your house just 3 weeks ago to a wrongful foreclosure and you have done the research and can help an attorney to represent you with the research. and you are almost but for sure positive that you have a strong case. why could you not find a lawyer on a contingecy base. if you could prove to the lawyer that you have a strong case before he would consent to represent you. then why is it so hard to find a lawyer. would you not agree that being put out of your house and 3 weeks later obumer decided to halt foreclosures and you are close to 60 with a disability that this would be the ideal time to file a wrongful foreclosure wlith the courts. i guess folks im just a bit angry because of the race for time when the sacramento sheriff department came to move me out and they over killed with county money but having 5 unmarked cars with the civil department of the sheriffs department show up to move me??????? and california is so hurting for money. i did mention to the 5 big guys that i was not a tenant to wells fargo but that i was a home owner and i asked the guys to “please stick to there job title and evict tenants for landlords and not homeowners for banks to stop helping the banks to commit fraud.” being homeless makes you ramble so to all please forgive me. sincerely , laurie mendoza

  12. Does this mean that my home is safe from being foreclosed on even though the servicing is Bank of America previously Countrywide? The trustee sale has been postponed due to our BK filling and we cannot afford the normal payment under the reorganization plan due to lost of 1 income. We are hanging in there barely making it each month to put foods on the table for our young kids and gasoline for work commute. I have been looking for jobs and none out there that I can obtain now due to the ruined credit because of this financial mess. GOD is our witness the suffering that we all go through to survive and protect our home.

  13. OBAMA is GENIUS !!!!!!!

    He set up these banker perfectly for the big TSUNAMI !!!!!

    Soon, we can go after all these BANKERS !!!!!

    Have patience people and get ready. !!!!!

    Thank you Neil,

    Lucy

  14. I wish it really was a plan by Obama and maybe it was, doubtful. And do not be lulled into waiting for the house of cards to fall and fail. We still need to help ourselves and use administrative remedies, the courts and private companies that get mortgage principal reductions. Do not wait to take action. I am still collecting names and email address for class action suit against Wells Fargo and other banks. Call to get on our list today. Robert Ponte 860-599-5557

  15. It is not like none of us wrote, called, faxed and emailed the President, the Senators, the Members of the House, our Governors, our State Attorney Generals to plead with them to stop the foreclosures & evictions. They chose to ignore. They get too much money from the banksters and other large corporations.

    This is most likely part of the plan for the New World Order. The President and other prominent Americans attend the Bilderberg Group meetings.

    Start examining what the New World Order means folks.

    It’s planned to be this way.

  16. Laura Mendoza, I am so sorry. I know the feeling of horror when you loose your home. I now live in a singlewide rotting mobile home with rats and roaches and no matter what we do we cannot get rid of the smell. However, I am greatful because if it was not for someone who had pitty on me and my sons, we would also be in the streets. I know that there was fraud with my foreclosure and I will fight to get my home back. And for all you trolls monitoring this and other sites, you are going down, your time is over.

  17. TO ZINGER:
    once i get off the streets i will resume to fight. its to hard to live on the streets and fight a legal battle. good luck to you.
    sincerely
    laurie mendoza

  18. Laurie so sorry to hear. I know people are living in forests, in garages etc. If we lose our fights we will be in 20 or 40 ft. trailer on friends property. Are you fighting it?

  19. BSE HE did… he took 1 BILLION of your tax dollars and spread them to the states for clean up of foreclosure mess… trick is the states can BUY up the properties.. instant state wealth … on my blog I called it as I saw it, conflict of interest (since state courts decide much of outcome of legal foreclosure fights)

  20. great. now that i lost my home and living in my car for the last 3 weeks obumer decided to stop foreclosures. what does it do for us now homeless? laurie mendoza

  21. I will stop bashing Clinton, Bush, and Obama, if they apologizes, rectify and restore the wealth due to the US Home Owner. Not to mention clean up the ghettos they created.

  22. I think the foundation for new gails could be started .

    WALL STREET knows it , read it :

    http://www.huffingtonpost.com/2010/09/25/wall-street-subprime-crisis_n_739294.html

  23. As the first official “OBAMA BASHER” on the website, I will be asking everyone to take a step back, both emotionally AND politically, and think about a few things that will bring this into perspective. We are experiencing a watershed moment in our history at this time. The installation of conservative, independent-minded, common sense people to political office over RINO Republicans and Democratic panderers (both of which constitute our “Ruling Class”) is happening now. As common sense becomes more uncommon; as the misinformation is distributed with the willing accomplices of the media (and I mean ALL of the media, with few exceptions); and as the legal system continues in most instances to fail to institute the Rule of Law, SOME truth is emerging. There are signs of light, and the time is coming for those who perpetrated the fraud. Will they all be held accountable? Probably not. That is proven by the fact that Wells Fargo is not mentioned once in that Huffington Post article.

    Neil is right when he says that Obama may be responsible for what happened with GMAC/Ally. The judiciary is starting to look foolish in the eyes of those who KNOW the law. The US DOJ is actively pursuing the proof of individual and corporate collusion that occured during the past ten or so years that resulted in the Great Recession. I have previously stated right here on the website that Obama is a “World Traveler”, one of those “One World, One Government” types, who truly believes that only the government can solve the problems of humanity; from obesity to starvation, from eggs to oil, and from cradle to grave.

    As “The Annointed One” (a term coined by my friend Rush) stumbles, bumbles, bobs and weaves his way through his first term, displaying his incompetence at dealing with the economy, unemployment, national security, and the Middle
    East, and exuding the arrogance and condescension that only an elitist liberal can, he is, like all politicians, in search of a “legacy”. All presidents have a legacy; some good (Lincoln), and some, bad (Carter, Clinton, Nixon). But not all presidents conduct business in order to fulfill a predetermined plan. Mr. Obama my have found the “Legacy Golden Egg”: the Foreclosure Crisis.

    The Financial Crisis Inquiry Commission, which our dear Abby points out, is hot on the heels of the crooks. You can’t put all this on TV in front of the 125 people watching C-Span and get away with it, can you? I think not! As our friend ANONYMOUS alluded to some time ago…there ARE IMPORTANT PEOPLE LOOKING INTO THIS. Too many people have lost out on this scheme. It wasn’t just the poor, middle and upper-middle-class people of this country that were ruined by the banks’ actions; FAR FROM IT! After all was set in motion, they brought down whole sovereign countries and thousands of international concerns, not to mention all the domestic pension funds (think UNION!). THESE PEOPLE ARE PISSED OFF, FOLKS! I’ve got a sneaky suspicion that Mister-O is getting tired of those phone calls from inconvenient time zones asking him “HEY! BARACK! WHEN ARE YOU GOING TO START PROSECUTING THOSE CROOKS ON WALL STREET, BARACK? MY CENTRAL BANK IS LOSING THEIR ASS ON THESE FARGING GOLDMAN SACHS DEALS! I SAW ALL YOUR SENATORS AND SOME OTHER PINHEADS GRILLING THOSE WALL STREET GUYS…ARE YOU GONNA LET THEM GET AWAY WITH THIS?”

    He can’t resist! After all, “YOU NEVER LET A CRISIS GO TO WASTE!”

  24. Not pro or anti – Obama. But, too much time as gone by – with numerous fraudulent foreclosures. Do not care who played part in cover-up – it is Obama’s current responsibility to correct the fraud.. GMAC is just a start – there are many other participants in the fraud. Courts have run wild. Obama needs to continue his “cleaning house.” But, how many lives have already been lost? And, will the current challenges still hold and, finally, have an affect on courts?

    Agree – not all Obama’s fault. Congress is largely to blame. But, how many individuals will be lost in the process while the current administration and Congress finally try to get their act together?.

    Big mistake at the onset of the crisis. And, all, including this administration, allowed the fraud to continue by ignoring all and letting individuals such as Mr. Henry Paulson – decide our fate.

    And, again, how could the courts just ignore the fraud?? What were/are they thinking?? How did this happen?? How and when did justice become non-existent in courts of law??? Believe attorney ethics has been violated. What will be done to correct this atrocity?

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  26. I agree with Neil. Think about it–why GMAC? All pretender lenders had robo-signers. GMAC is the only lender of the bunch who (now) has a parent who is not willing to write their little criminals an excuse. This is tough love….and I love it!

  27. If he really ‘cared’, Obama could simply issue an executive order that all $9.5 Trillion in Residential Mortgages are canceled for fraud. Corporations are a creation of the state and owe a duty to the state – Hale v. Henkel, 201 U.S. 43 at 47 (1906)

    Until then, Obama has been and will continue to be a big part of the gigantic $24.5 Trillion governmental ‘Bailout’ cover-up.

    Neil, your Democratic background is deceiving you. In the past two years, American homes have by the RMBS, shifted over to governmental ownership, another form of communism/socialism. Both Obama (and Bush) could have cared less, this whole time.

    Cancel the mortgages, cancel the fraudulent swindling banks and Ponzi Federal Reserve – and let’s get back to America and real Freedom again, from which we left a long time ago.

    Until these mortgages are cancelled for unenforceable fraud and bifurcation, generations of us including our grandchildren will live in perpetual debt-interest slavery.

    $700 Trillion in Ponzi C.D.S. are unpayable and you well know it. Obama cannot aid and abet that, or he is a core part of the problem.

  28. You ARE kidding me right???? If this was political move then it would seem that it would be nationwide and affecting ALLL notary fraud of ALL banks NOT just one company….. And whats the deal with trying to get people to give up their rights by modifying if he was responsible and KNEW there was fraud on the banks parts. Sorry this is just a wee bit to far for me.. .was it meant as satire?

  29. What is amazing is the magnitude of this mess, and the varied remote layers which comply within it. You don’t have to be a conspiracy scientist to see this was either architected years ago, or it appealed to human basic greed and ingenuity, or as I suspect the combination of both. The only ones who will “do time”, are the “slick” fools who jumped on to this scamwagon too late, as in the last few years, and could not control themselves or their organizations enough to pull back, although their cups are over flowing. They don’t mind stealing bread, from the mouths of children. Sad to see, what a fat vein of this country, and I’m sure others are really about. Whole soul service to money work-ship, relentless, shameless greed.

    Now what about all the other crooked ships out their?

  30. Wait, is this ALL foreclosures nationwide for all banks? I hope there will be some clarity here. I can’t find anything in the media, other than GMAC in 23 states.

  31. Did all hear? ***** Hidden In the new Health Bill passed by congress (of all places) is a 3.8% tax on home sales.*****
    Will they make the “pretender” lenders pay this tax when they sell the home that they just illegally foreclosed on? Most homes don’t even have 3.8% equity over and above the mortgage to be able to pay this tax!

  32. Lucy…

    The guy is not on your side, unless you are part of the underclass, foreign or domestic, but likely more foreign than domestic.

    See the Forbes article by Dinesh D’Souza here, about how Obama thinks:

    http://www.forbes.com/forbes/2010/0927/politics-socialism-capitalism-private-enterprises-obama-business-problem.html

    The enemy of your enemy is not necessarily your friend.

  33. News papers refuse to print our opinion articles because they get millions of advertising dollars from the foreclosure mills establishment.

    To bad for them I was about to sign up for home deliver, now I just continue getting their content free on line!
    :)

  34. We should all be supporting president Obama.

    Lets give him the time and the support to fix this mess.

    You can’t expect him to fix anything overnight, and I for one am grateful that he is on our side.

  35. I agree with Bob G. I don’t think Obama has anything to do with anything. Giving him credit is just silly.

  36. Am i missing something, did Obama make an annoucement about stopping foreclosures?

  37. NOW THAT OBAMA IS DOING HIS PART. BY THE WAY GREAT ARTICLE.

    IT IS TIME WE DO OUR PART AND HELP HIM

    FACEBOOK PAGE MYSPACE TWEETER WE NEED TO TELL 10 FRIENDS A DAY ABOUT THIS. GO IN THE BLOGS OF LOCAL NEWSPAPERS ETC………..

  38. Very importend to watch the Lawsuit New York Attorney General Andrew Cuomo against CORELOGIC .That company knows why the split in
    july from First American to CORELOGIC.
    Corelogic was feeding the banks with wrong numbers. I think Mr Cuomo will find out how the
    Banks with Corelogic make the inflated or underevaluated deals.

  39. O Barky is a fraud

  40. We will know if the Obama Administration should be given credit for stopping Foreclosures if & when ALL FORECLOSURES ARE HALTED NATIONWIDE! And not until then! It could be simply GMAC was smart enough to know that their mistakes could cost them BIGTIME MONEY LOSSES!!

  41. iT IS ALSO BECOMING MUCH CLEARER THAT IF THE SECURITIES TRUST WAS SET UP AS REMIC TO HOLD ALL THE POOLED MORTGAGES AND THEN SELL CERTIFICATES TO INVESTORS, THAT IN MOST CASES THE ASSIGNMENTS WERE NOT COMPLETED BY THE SECURITIES TRUST CUT-OFF DATE AS TYPICALLY STIPULATED IN THE PSAs.

    THIS WOULD MAKE THE REMIC SECURITIES TRUST INVALID AND THIS WOULD IN TURN REMOVE THE CUSHY TAX BREAK THAT THE BANKS AND INVESTORS RECEIVE DUE TO REMIC.

    ESSENTIALLY OUR GOVERNMENT (IRS) COULD RECOVER MONEY AT A 100% TAX RATE IF THESE REMIC TRUSTS GO DOWN.

    GOODNESS KNOWS IT WOULD HELP REDUCE OUR NATIONAL DEBT IF THE IRS COULD RECOVER THAT TYPE OF TAX MONEY.

    SEARCH THE IRS WEBSITE FOR THE CHIEF IRS INVESTIGATOR’S INFORMATION—-BE SURE TO WRITE AND REQUEST AN INVESTIGATION INTO WHY COMPANIES SUCH AS JPMORGAN CHASE WERE ALLOWED TO CREATE REMIC SECURITIES TRUSTS BUT NOT COMPLY WITH THE IRS LAWS ON REMIC BY NOT MAKING SURE THE ASSIGNMENTS WERE COMPLETED BY THE CUT-OFF DATE.

    I PRIOR POSTED THE CHIEF INVESTIGATOR
    OF THE IRS’ INFORMATION ON THIS SITE.

  42. NEW PROOF WALL STREET KNEW ITS MORTGAGE SECURITIES WERE SUBPAR: CLAYTON EXECS TESTIFY

    from Huffington Post by Shahein Nasiripour 9-25-10 around 10PM

    During a little-noticed hearing this week in Sacramento, Calif., a firm hired by Wall Street to analyze mortgages given to borrowers with poor credit, which were then packaged and sold to investors during the boom years, revealed that as much as 28 percent of those loans failed to meet basic underwriting standards — and Wall Street knew all along.

    Worse, when the firm flagged those loans for potential issues, Wall Street banks ignored its recommendation nearly half the time and likely purchased those loans anyway — selling them to unwitting investors who were never told that the biggest home loan due diligence firm in the country had found potential defects in these mortgages.

    The revelations give a better picture of what many have likely known for years: Wall Street firms knew they were buying lead yet passed it off as gold to investors who had no knowledge of the alchemy behind the scenes. But it also has real-world implications: the data released Thursday could bolster pension funds and other investors in their pursuit to force Wall Street banks to take back the bogus mortgages they peddled. An untold number of lawsuits have been filed in the wake of the subprime mortgage crisis and subsequent housing market collapse. Thus far, Wall Street has been winning that battle.

    Clayton Holdings, a Connecticut-based firm that analyzes home mortgages for banks, hedge funds, insurance companies and government agencies, provided its data Thursday to the Financial Crisis Inquiry Commission, a bipartisan panel created by Congress to investigate the roots of the worst financial crisis since the Great Depression. The FCIC held its last public hearing in Sacramento, the home of the panel’s chairman, where two current and former top Clayton executives testified under oath about the firm’s role in the mortgage securitization chain.

    During the height of the boom in 2006 and the period prior to its immediate end during the first six months of 2007, Clayton inspected home loans for Wall Street firms and government-backed mortgage giant Freddie Mac. Clayton looked at loans that the companies wanted to purchase from mortgage originators like New Century Financial, Countrywide Financial, and Fremont Investment & Loan. The company examined 911,039 mortgages, documents show.

    Clients included Bank of America and JPMorgan Chase, the nation’s two biggest banks by assets which together have about $4.4 trillion; Citigroup, Deutsche Bank, Goldman Sachs, Morgan Stanley, Bear Stearns and Lehman Brothers. Clayton controlled about 50 to 70 percent of the market, Keith Johnson, the firm’s former president, told the crisis panel.

    Clayton, though, typically looked at roughly 10 percent of the pool of mortgages available for purchase, Vicki Beal, a senior vice president at the firm, said in response to a question by panel chairman Phil Angelides. But during the frenzied last months of the boom, when lenders and securitizers were trying to sell off as much as they could before the market collapsed, that figure reached as low as 5 percent.
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    Of the 911,000 loans that Clayton scrutinized, 72 percent either met the mortgage seller’s standards and other guidelines set by the buyer of the mortgages, typically Wall Street firms, or they had off-setting factors that allowed Clayton to give them a passing grade, like if the borrower who took out the mortgage put a lot of money down or had a very high income.

    But 28 percent failed to meet those standards. Of those 255,802 mortgages that Clayton flagged for what were a variety of reasons, Wall Street ended up waiving 100,653 of them, or 39 percent of those loans that did not meet basic standards. And Wall Street firms didn’t share this with investors.

    “This should have raised red flags,” said Guy Cecala, publisher of Inside Mortgage Finance, a leading trade publication and data provider.

    “To our knowledge, prospectuses do not refer to Clayton and its due diligence work,” Beal told the FCIC in prepared remarks. “Moreover, Clayton does not participate in the securities sales process, nor does it have knowledge of our loan exception reports being provided to investors or the rating agencies as part of the securitization process.”

    Johnson said that Clayton “looked at a lot of prospectuses” — documents given to potential investors outlining what comprises the deal — and that the firm wasn’t aware of any disclosure to investors of Clayton’s “alarming” findings, Johnson said.

    The reports Clayton generates are “the property of our clients and provided exclusively to our clients. When Clayton provides its reports to its clients, its work on those loans is generally completed — Clayton is not involved in the further processes of securitizing the loans and does not review nor opine on the securitization prospectus,” Beal said.

    During questioning by Angelides, Beal acknowledged that, because the firm was checking roughly 10 percent of the mortgages Clayton’s clients were looking to purchase, one could say that Wall Street firms waived in as many as 1 million loans that Clayton had initially rejected.

    Angelides told the current and former Clayton executives that it appeared that securities issuers — Wall Street firms — didn’t examine the other 90 to 95 percent of loans that comprised a pool waiting to be securitized and sold to investors. Johnson agreed with him.

    Furthermore, Johnson said that he heard that some market participants operated under a “three strikes, you’re out rule” — if bad loans were flagged by Clayton, sellers and issuers would have Clayton take out another 5 to 10 percent sample to check the pool again. Angelides hinted that when done three times, it would be incredibly unlikely that Clayton would again discover those individual questionable loans, and that they’d find their way into securitization deals. Johnson agreed.

    “What the standard practice, supposedly, and best practices call for is if you do a sampling and you show problems, you go back and take a bigger slice and keep going until you find out the true extent of the issue and the problem,” Cecala said.

    That didn’t happen.

    “If issuers had been scrutinizing all the collateral in a security and only putting in loans that met actual underwriting and documentation requirements, a lot of these deals wouldn’t have gotten done,” said Cecala. “But as a practical matter that didn’t happen. Most of the loans that were originated got thrown in securities one way or another.”

    Johnson told the crisis panel that he thought the firm’s findings should have been disclosed to investors during this period. He added that he saw one European deal mention it, but nothing else.

    The firm’s findings could have been “material,” Johnson said, using a legal adjective that could determine cause or affect a judgment.

    It’s unclear whether the firms ended up buying all of those loans, or whether Wall Street securitized them all and sold them off to investors.

    “Clayton generally does not know which or how many loans the client ultimately purchases,” Beal said. That likely will be the subject of litigation and investigations going forward.

    “This should have a phenomenal effect legally, both in terms of the ability of investors to force put-backs and to sue for fraud,” said Joshua Rosner, managing director at independent research consultancy Graham Fisher & Co.

    Original buyers of these securities could sue for fraud; distressed investors, who buy assets on the cheap, could force issuers to take back the mortgages and swallow the losses.

    “I don’t think people are really thinking about this,” Rosner said. “This is not just errors and omissions — this appears to be fraud, especially if there is evidence to demonstrate that they went back and used the due diligence reports to justify paying lower prices for the loans, and did not inform the investors of that.”

    Beal testified that Clayton’s clients use the firm’s reports to “negotiate better prices on pools of loans they are considering for purchase,” among other uses.

    Nearly $1.7 trillion in securities backed by mortgages not guaranteed by the government were sold to investors during those 18 months, according to Inside Mortgage Finance. Wall Street banks sold much of that. At its peak, the amount of outstanding so-called non-agency mortgage securities reached $2.3 trillion in June 2007, according to data compiled by Bloomberg. Less than $1.4 trillion remain as investors refused to buy new issuance and the mortgages underpinning existing securities were either paid off or written off as losses, Bloomberg data show.

    The potential for liability on the part of the issuer “probably does give an investor more grounds for a lawsuit than they would ordinarily have”, Cecala said. “Generally, to go after an issuer you really have to prove that they knowlingly did something wrong. This certainly seems to lend credibility to that argument.”

    “This appears to be a massive fraud perpetrated on the investing public on a scale never before seen,” Rosner added.

    New York Attorney General Andrew Cuomo, who’s running for governor, reportedly launched an investigation and granted Clayton immunity in exchange for information on what Wall Street knew and when, according to press reports in January 2008. A spokesman for the state prosecutor didn’t return a Friday call seeking comment.

    Clayton, for example, analyzed about 10,200 loans for Bank of America. It found problems in 30 percent of them. Of those, the bank waived about a quarter.

    For Credit Suisse, Clayton found that 37 percent of the 56,300 loans it reviewed failed to conform to standards. It waived a third of those.

    Clayton discovered that 42 percent of the pool of loans Citigroup wanted to buy didn’t meet standards, and that nearly a third of those were waived anyway. Citi is the nation’s third largest bank by assets and is still owned by taxpayers.

    JPMorgan Chase and Goldman Sachs had rejection rates of 27 and 23 percent, respectively. JPMorgan’s waiver rate was 51 percent. Goldman Sachs, often derided for its practices during the boom and bust, had a waiver rate of 29 percent, far below the 39 percent average Clayton experienced.

    Among the firms with the worst records are Morgan Stanley, Deutsche Bank and Freddie Mac.

    About 35 percent of the 66,400 loans Deutsche wanted to buy were marked for having some kind of deficiency; the bank waived half of them. Morgan’s 63,000 loans had a rejection rate of 37 percent; 56 percent of them were waived in. Clayton rejected 35 percent of the loans government-owned Freddie Mac wanted to buy. The firm, one half of the mortgage duo now owned by taxpayers and costing the Treasury hundreds of billions of dollars, waived 60 percent of those loans.

    Neal, though, testified that Deutsche was one of its tougher clients when it came to checking mortgages. Because of its rigorous guidelines, that’s likely why the German lender had such a high rejection rate, she said.

    These firms were among the biggest issuers of so-called non-agency mortgage-backed securities in 2006 and the first half of 2007. Goldman issued about $65 billion in these securities, Inside Mortgage Finance data show. JPMorgan issued about $61 billion. Morgan Stanley sold about $49 billion, followed closely by Deutsche which sold $46 billion and Credit Suisse which issued $40 billion. Bank of America and Citigroup were next, selling $37 billion and $35 billion, respectively, data show.

    Spokesman for Citi, Morgan, Deutsche, and Goldman declined to comment. Representatives for Freddie Mac and JPMorgan didn’t respond to requests for comment.

    But none of this should be new to savvy market players. Clayton had been warning about these issues for years, Cecala said.

    “We have regular conversations with Clayton and Clayton would make the claim that they were seeing a lot of bad loans in their examinations and not many people were acting on it,” Cecala said. “And clearly, the only way we could have the problems that we experienced is if people actually ignored problems. It’s not like these were bad loans that suddenly turned bad. There were problems from day one and someone should have known it.

    “Clayton was very frustrated that a lot of people never really acted on [their findings],” said Cecala. “Clayton would report that a lot of times they found problems in loan samples and not only did the issuer not want them to sample any more, which would have cost more money, but they didn’t act on the information they uncovered.”

    Issuers, which hired Clayton to perform due diligence, didn’t want to pay for more sampling. They also wanted to pump out as many deals as quickly as possible, Cecala added.

    But, he cautioned, investors weren’t necessarily paying attention to these kinds of details.

    “Keep in mind that investors ultimately bought a deal almost exclusively based on the rating, and not the issuer’s decision [regarding] what loans to put in or what loans not to put in,” Cecala said. “Historically there’s been very little recourse back to the issuer for problems with securities down the road and the bottom line is if you can get it past the ratings services you’re more or less home free.”

    The three big credit rating agencies that dominate the market — Standard and Poor’s, Moody’s Investors Service and Fitch Ratings — had a chance to use Clayton’s information during this time, but declined, Johnson testified.

    He told the crisis commission that Clayton had meetings with S&P in 2006 and with Fitch and Moody’s in 2007. “All of them thought this was great,” Johnson testified.

    But the rating agencies declined. The reason why, Johnson said, was because if a rating agency bought Clayton’s services it would have likely been more stringent. That, in turn, would cause it to lose market share because Wall Street issuers would have just gone to an easier rating agency.

    The rating agencies began requiring such third-party due diligence in 2007 after a state attorney general stepped in, Johnson said. By then, though, it was too late.

    “Keep in mind that the rating services basically based a lot of their rating decisions not on an examination of every loan or the collateral, but basically on representations from the issuer,” Cecala said. “That was the system we had in place.”

    Cecala said it was “highly unlikely” that Wall Street firms shared Clayton’s findings with the rating agencies.

    “We could have… stopped the factory from producing,” Johnson lamented.

  43. NEIL

    How u can conclude that Obama should get credit for this will forever remain one of the Great Mysteries of the Cosmos.

    The guy is trying to dismantle the private enterprise system and fundamentally transform the U.S., mostly by ignoring the Constitution.

    I think your emotions are getting the better of you here, Neil. I’m of the opinion that you are confusing correlation with causation. Warmer temps are correlated with increased CO2. But that is because the oceans when heated release more CO2, as they are the world’s largest carbon sinks. The increased CO2 doesn’t cause the oceans to warm, the sun does. (Think about it this way: a warm bottle of pop releases more CO2 when u open it than does a cold bottle of pop.)

    Similarly, I don’t think that Obama is telling GMAC to do this. I think that GMAC’s title insurers are behind this. They’re not going to insure title to any more GMAC foreclosures until this mess is straightened out.

    Just my 2 cents.

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