New York Getting Ready to Prosecute Banks for Violations of Settlement

At the end of the day everyone knows everything. If you start with the premise that the securitization of debt was a farce and that the necessary element of the false securitization of mortgage loans was the foreclosure of those loans, then you move one step closer to understanding the mortgage and foreclosure mess and a giant step forward to understanding and implementing a solution. All the actions, statements and myths promulgated by the Wall Street banks become clear, including their violation of every consent decree,order and settlement they ever made with respect to mortgage loans.
Attorney General Schneiderman of New York seems to understand this and he is taking the mega banks to task for violating a settlement that looks like pennies on the dollar. He doesn’t care why they violated the $26 Billion settlement but he is taking action for their consistent violation of the settlement. But I care about the reason and so should you. The reason is nothing less than the obvious: the mega banks expose themselves to liability that far exceeds the terms of the settlement.
In any normal circumstances when a big company enters into a settlement that amounts to pennies on the dollar, the company rushes to make the settlement final by paying the money and performing the actions required in the agreement. Thus they commit illegal acts and get away with it by entering into an agreement that looks big but doesn’t put them out of business. They are nothing but anxious to put the settlement behind them.
So why are the mega banks refusing to abide by a $26 billion settlement on a multi- trillion theft? The answer by pure logic and my sources is that if the banks actually performed on the material portions of the agreement they risk going out of business. Why?
The answer is arithmetic. The purpose of the settlement was to stop illegal foreclosure practices and compensate those who lost their homes in illegal Foreclosures (as opposed to simply reversing the Foreclosures and starting over again which is what any court of law would require if there was an admission that the documents and claims in foreclosure were false).
Arithmetic is the answer. Without Foreclosures, the banks cannot support their claim of failure of the mortgages. If the loans are reinstated then the “sales” of loans and mortgage bonds become immediately subject to an accounting and to payback to investors who bought empty bogus bonds issued by a trust that existed in name only. If the loans must be considered performing loans because of any of the reasons contained in those multistage settlements, consent decrees,orders and agency settlements, then the banks must reimburse the insurers, buyers and counter-parties on hedge products like credit default swaps.
Thus satisfactions the settlement agreement exposes the banks to a reduction in their tier 1, tier 2, and tier 3 capital such that the reality and empty underbelly of the banksia displayed for all to see. Those banks and are not nearly as big as they say they are and must be resolved by the FDIC because they actually do not have the minimum capital requirements that all banks must have to continue operations. That is why the Brown bill in the U.S. Senate is dead on right.
If the Foreclosures were invalid there is only one way to correct them, just like any title problem. Correct the defect In Title by reversing the foreclosure or get an affidavit from the homeowner joining in some correction of the corrupted title resulting from fake Foreclosures.
With trillions in liability at stake of course the banks are violating the settlement agreements and consent decrees. All they can do is try to control state and federal action by providing photo opportunities and planted articles around the media to make people feel good. But neither the housing market nor the economy will get the stimulus necessary for a full recovery until the truth is addressed instead of pretending you can fix this mortgage and foreclosure mess with Tiny settlements and promises that nobody intends to keep.
Wells Fargo, BofA threatened with lawsuit over mortgage allegations
http://www.bizjournals.com/dallas/blog/morning_call/2013/05/wells-fargo-bofa-threatened-with.html

Eric Schneiderman: Banks Have ‘Confidence’ That Law Enforcement Is Not Taking Violations ‘Seriously’
http://www.huffingtonpost.com/2013/05/07/eric-schneiderman-banks_n_3226992.html

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33 Responses

  1. Riddle me another one …. My mom told me today that Fannie Mae is the “lienholder” on her townhouse. I asked her who she pays hers mortgage to? She said CHASE…

  2. VICTORY!! CALIFORNIA HOMEOWNER STOPS A FORECLOSURE USING THE NEW CALIFORNIA HOMEOWNER BILL OF RIGHTS. HIS ATTORNEY CAN COLLECT HIS ATTORNEY FEES FROM THE BANK. BECAUSE SINGH WON THE INJUNCTION–HIS ATTORNEY WILL GET PAID BY THE BANK!! FIND THOSE ATTORNEYS TO HELP YOU IN CALIFORNIA.

  3. I believe the commies got to Scneiderman …

  4. The banksters are vultures and will steal whatever they can. Everyones situation is a bit different. If your friend signed a new agreement with them, make them produce a legal assignment from the Issuer of the Original Bill of Credit. If they can’t, that new agreement is a fraud. Tell your friend to do their homework.

  5. I am helping a friend with their home. They went bankrupt 2 years ago, second mortgage was wiped out.. The bank as part of this settlement paid themselves off, the 2nd mortgage of $100,000. Seems very, very wrong…

  6. Hell, we would be doing the world a huge service by purging the world of the worst of humanity.

  7. Maybe we can all hire bounty hunters to go after them. There are a few hundred million if us so it may only cost us a buck or two.

  8. Eric isn’t taking down anything. He is posturing and flexing his muscle a bit to position himself to replace the criminal (Eric Holder) AG. he shows the inner circle he has the know-how,and they will appease.

    We should all gang-rape Jamie Dimon, right on Park Place, in broad daylight. That should get the others thinking.

  9. @ Charles Reed – you overlook the largest GSE in this mess. The Federal Home Loan Banks. They had balance sheet of over 1 trillion in loans at its peak, more than Freddie at one point (when Freddie was still a GSE). The FHLB’s provided the funding for practically every sub-prime loan from 2006 to 2011.

    WAMU and INDY had over 100 billion in loans pledged to the FHLB’s. That is how they are back-dooring us and sweeping the losses over to the taxpayer. Why do you think the FED is buying 40 billion a month in FANNIE and FREDDIE MBS.

    Fannie and Freddie are going to be shuttered, and the 900 billion in actual loss (currently being masked behind temporary changes to GAAP) will be exposed and passed to Joe Taxpayer. The ONLY remaining liquidity outlet will be the FHLB (GSE).

    Now, unlike Freddie and Fannie, who had public shareholders and was an actual quasi-governmental agency, the FHLB’s are owned by its members, who have all the stock, and when their are losses to be taken it will be by the taxpayers to bail out the genral obligation bonds issued by the FHLB’s. The losses at the FHLB on any of its members balance sheets sits before the Depositors at the bank (you and I);

    Everyone should take a closer look at what happened at INDY and WAMU, and I mean… take a look at what really happened.

    The reserve system banks should be broken up immediately. There are 100 other crack-dealers that can absorb their operations and dispose of the non-banking dividisions. All the misdirection about the need for global competition is just that… misdirection.

    America, last i checked is not a global country. It is republic, and is still one nation under God. (There Christine… I said it..) lol

  10. Thank you Eric Schneiderman, you have the support and backing of the American people and will go down in history as the first AG to take down and take on the Mega banks who have absolutely no fear or regard for the laws of the land. They operate like thugs and continue with their racketeering…they must be brought to justice…criminally and well as civil!!! If the banks are allowed to break the law, so will others..I am sure you will not be the only one doing what’s right…you got our support!!

  11. From my HTC Sensation 4G on T-Mobile. The first nationwide 4G network

  12. That’s right..they are all imposters!

  13. The robo signers attested that they were the Principal Owners when in Fact … They were only an Agent of the Principal. But like I said … it came back to bite the principal in the Ass when the robo servicer agent did not or could not complete a FC and get a FC Deed. Yep!

  14. Fisher & Shapiro & PHH Mortgage were caught entering false affidavits in Cook County, Illinois by a judge and were fined a woopee-do $290,000 dollars.

  15. Correct typo….entering fraudulent affidavits upon the court is a criminal offense in any state.

  16. KC…True, the robosigners did not have legal authority to swear to the authenticity of the assignments. I am talking about the banks & their attorney’s presenting fraudulent assignments upon the court as if they were authentic. Then the faulty affidavits in many cases supporting the docs. That is subjorning perjury. They are swearing to the genuineness of the docs either way but when they enter a sworn affidavit and it is a fraud, that is a criminal oftenest.

  17. You are close Stripes … just not quite there yet. Think “Signing Capacity”

  18. Robo-signing is fraud. Swearing to the authenticity of documents when you were not a party to the transaction is criminal. They are subjorning perjury and that is a criminal offense.

  19. Shelley what are they considering Robo? Because as what DocX was doing was not having the correct documents, so they fraudulent made up the assignment placing Linda Green name as VP of 20 banks.

    However I would put what MERS does when assigning titles to a lender after its been in a Ginnie Mae pool as with Washington Mutual, and I am sure with IndyMac and Countrywide the chain of ownership is broken and there not way a assignment can be made. This outfit out of St Louis has gotten away with this type of Robo signing.

    I would believe that most people will not know if they were Robo victim unless they got a copy of the assignments and they say Linda Green, but that only DocX!

  20. ENRON was using the same fraudulent business model as the Banksters. Remember the blackouts in California? Same fraud is happening now on a bigger scale. The investors are the real culprits. The 8 largesse illuminati banking families and their criminal friends.

  21. Who were the investors in ENRON….? No one asks so the big time investors get away with it everytime. Chase were involved in the Madoff scam.

  22. The whole Madoff fiasco was for the benefit of the banksters IMHO…Just like ENRON.

  23. It’s sea biscuit in the fifth. There should have never been a settlement with these crooks. The small time investors whined and wanted to lynch Madoff for a lot less. That proves to me the big time investors are the real hoodlums here.

  24. If you can not find her email send them to me and I will send them to her and send her email to you. Shelleystotalbodyworks@comcast.net My attorney just nailed two more robo signers by deposition and it should be public soon. JC San Pedro and Chamagne Williams. With the net work of robo signer finders we nailed these two for being the fruads they are for one of her clients.

  25. If everyone with robo docs would pdf them and send them to Virginia Parsons a paralegal in Hawaii that runs the Deadly clear blogg she will library them to a portal so lawyers and homeowners will be able to pull them up alphabetically to save their cases in an easy way. .

  26. [...] New York Getting Ready to Prosecute Banks for Violations of Settlement [...]

  27. Why is not Ginnie Mae not charged in a RICO case and MERS along with the servicers the underlings that are not connected businesses but Ginnie Mae is the Kingpin?

    You got nothing in a contract form that the loan belong to Ginnie Mae but they are the investors in MERS system but tells the world they are not the investor big requires the participating lenders in the Mortgage Backed Securities sells scheme to record them (Ginnie) in MERS as the title holder.

    The scam wrong to not allow the borrowers to contact who was calling the shot and the foreclosures took place on the government insured loans.

    However I much as I mention how this crime went down, the conflict of interest is Ginnie Mae because it is owned by the US. Obama and his speeches have brainwashed the public into thinking that those loans were subprime but they were all full income documented loans that was give at a rate of 80% white portfolio of government loans because blacks were steered into subprime loans and 56% of black who did purchase or refinance during 2003-2007 were subprime loans when in fact the blacks qualified for prime & government loans (stats NY Fed Bank report 2008).

    So you got the majority white public thinking that it was black defaulting because of the false tale that CRA was was forced on banks to sell back loan to people who could not pay the loans back. When in fact had the black and Hispanic been sold the correct loan in FHA & VA we would not have this problem. The majority of foreclosures are because of job lost and not some lair loan!

    This is a RICO suit waiting to be made, as Ginnie Mae is that boss in the shadow calling the shots!

  28. I wish it were not true Neil … But It Is! We did not modify, … we turned down CWs offer of forbearance offer, before we transferred the funds to them we were served with FC. We reinstated and continued payments including a large payment for a ? escrow shortage afterwards. But when BOA came into the picture, they refused our payments claiming we were over $12,000 in default and they would only accept full payment. So we played the I fax them the proof and they ignore me. HMMM? !2months later BOA sets up a hearing under the old CW lawsuit (apparently never dismissed way back when) and try to FC in CW name without notice? I find out thru another party (a concerned friend) about the hearing. So I sent cashiers check for full reinstatement figure provided. The hearing is post phoned again and not dismissed? Hugh? BOA not even listed as a party? So I call and find out that the April payment had come due before they received my payment and that left my account in default. HMMM? I send April and May payment just to be safe I threw in a couple hundred extra dollars in to apply to principal (hahaha …playing it safe) . Yep! They dismissed the case in late May (but didn’t release the CW LP on Title). In the meantime BOA apply May payment plus a couple of hundred to our principal and send us bill in late May for May payment. HUH? Next we get bills for property taxes and NOD from BOA ? HUH? Then BOA using a MERS officer goes and files an assignment of the Note and Mortgage together in 2011 and back date it 4yrs to CW HL, BAC loan servicing, and last… BOA NA. HUH? Then they file the CW LP release a few weeks after that. HUH? Still no lawsuits … Crazy Greedy Stuffs!

  29. Agreed
    That is why Lloyd’s of London pulled every dime out of every bank in Europe 10/1/11. The underwriters saw cases being won in USA & understood that there is no securitization & only time before the bureaucracy (SEC, Congress, FBI & the courts eycetra) could no longer hold a gun to the publics head. 1867 Carpenter vs ? Once a mgt is satisfied lien is void

  30. Reblogged this on Integrity Finance and commented:
    Good afternoon Family and Friends!
    I get to share this excellent article from Livinglie’s Weblog on the law suit being filed by New York State Attorney General Eric Schneiderman. This site is an excellent source of information, with a reported over 8,200,000 visitors served. Take a look around and I’m sure you will learn something.
    Enjoy,
    Ed

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