Fed penalizes 10 banks on mortgage practices

Fed penalizes 10 banks on mortgage practices

By Steve Goldstein
WASHINGTON (MarketWatch) — The Federal Reserve said it’s taken enforcement action against 10 banks over “a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing. These deficiencies represent significant and pervasive compliance failures and unsafe and unsound practices at these institutions.” The banks are Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 12.86, -0.27, -2.06%) , Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 4.41, -0.03, -0.56%) , Ally Financial, the HSBC North America unit of HSBC Holdings /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 53.34, -0.22, -0.41%) , J.P. Morgan Chase /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 44.89, -0.08, -0.18%) , MetLife /quotes/comstock/13*!met/quotes/nls/met (MET 43.88, -0.25, -0.57%) , PNC Financial Services /quotes/comstock/13*!pnc/quotes/nls/pnc (PNC 61.87, -0.01, -0.02%) , SunTrust Banks /quotes/comstock/13*!sti/quotes/nls/sti (STI 28.15, -0.04, -0.14%) , U.S. Bancorp /quotes/comstock/13*!usb/quotes/nls/usb (USB 25.95, +0.11, +0.43%) and Wells Fargo /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 29.89, -0.26, -0.86%) . In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc., which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions

15 Responses

  1. […] View the original article here LikeBe the first to like this post. […]

  2. Let’s get back to basis and for those of you homeowners who do not know what that means, it is this. The banks and financial services group does not control you unless you want to be controlled and WOW, they are doing a great job.

    The rules are already in place but lack the integrity, honesty, and ethics of prudent originating, closing, funding and servicing of the loan – That can be fixed by simply going back to what we used to do.

    What happened to our inhouse auditors that ran randomly notices of payment histories and sent them to customers and oh yes, what about those loan originations and their appraised values – what happened to those guys.

  3. Here come the ethics complaints on a bogus Linda Green DOCX case:

    http://mortgagemovies.blogspot.com/2011/04/kingcast-note-to-attorney-shawn.html

    Ms. Ingress writes: Look for DOCX from Alpharetta, GA at the top of the page. Then scroll down and see the other players: Merrimack Mortgage, American Home Mortgage Servicing, Inc., Wells Fargo Bank, N.A., Trustee… Scroll down some more & note where it says “ASSIGNMENT EFFECTIVE DATE: 4/28/2009”. Then see that it was “executed on 10/16/2009”.

    Now go back to the top right corner of the page and see note that it was recorded at the Registry on 10/27/2009.

    This means that nothing in the assignment would have been legal until it was recorded on 10/27/2009. However, the recorded assignment is back-dated by 6 months which makes it appear to be effective as of 4/28/2009 so they could start to foreclose on 5/1/2009.

    It now appears they had no assignment or standing to do so. And they still don’t because now it turns out the whole assignment is a fake. Thanks to everyone who has been working on figuring this whole mess out!!!

  4. I don’t get it.

    They were as wrong as two left shoes.

    The corporate government and pretend corporate government have turned their head in the right direction, and we still have non-believers?

    Let’s see. We didn’t believe what we saw when it was happening and many sat on their hands or hired a law firm to fix it, and now we don’t believe what we see when something that we want to see is happening.

    How about this to help some of you out.
    Not tooting a horn or anything, but when there is a problem, our job as the living people is to figure out what is wrong, how it got wrong and fix it.

    But reading these blogs, I read from many who wait on a leader to tell them everything is okay, when they don’t, and tell them everything is not okay, when they don’t.

    You will never get the message you seek from any leader. You are the leader. If the Creator made you in his image, you are looking at a mirror and asking it to guide you when you hand the power to an image. All men are created equal; yet some want an equal to be more equal than them so they can guide them. (Ah math, equal is equal.)

    It’s not what they say, it’s what they do!
    You will know them by their deeds.

    When they did wrong you supported them.

    I can probably count the people who bank with one of these entities and still post here complaining about ‘one of the other ones’ that they have their mortgage with.

    People, ‘in all honesty…you were part of the problem, and if you are not part of the solution or have not done something positive to work toward a solution you are still part of the problem’.

    The unwinding is occurring…sit back and thank the Creator for once, for hearing your prayers.

    Give Thanks to anything…a rock, a piece of paper but give thanks to something because we ARE going in a different direction.

    Now pay attention. The Consent Order is only for : “The review shall include residential foreclosure actions or proceedings (including foreclosures that were in process or completed) for loans serviced by the Bank, whether brought in the name of the Bank, the investor, the mortgage note holder, or any agent for the mortgage note holder (including MERS), that have been pending at any time from January 1, 2009 to December 31, 2010, as well as residential foreclosure sales that occurred during this time period (“Foreclosure Review”).”

    If you are outside that window, you still need to be seeking a solution. If you filed for bankruptcy, well you’ve liquidated everything you didn’t know you had, so there is nothing you can do to back that up.

    But we must be adults here. We must stop whining, look for changes, see them, notice them, help be a part of the changes in the making, and aware of our role in this fiasco.

    I’ve done my part to make a difference and I can see the difference being made. I can’t broadcast how I’ve ‘effected change’, but it is not by warring with these pretender lenders.

    You war with them, there will be a winner and a loser. They do enough to hang themselves. Be vigilant about your mortgage. It’s like child birth for women. We can have our first baby and before labor a hundred women can tell us what it was like when the delivered their child, and our experience will be totally different.

    We have to have our own experience. We have to be mature and grow from it.

    We have to be different this time and we have to remain positive.

    If you can’t do that, then this message is not for you, please ignore it. If you can, then let’s see the light and stop looking back at the tunnel from whence it came.

    Let’s see what is really happening and remove the negative thoughts. The light has arrived and the dark is moving out of the way. This is our time. Learn what you can about ‘your’ situation and be active in ‘your’ solution without waiting on Neil and others to do it for you.

    I love you guys. I have grown a lot from this adversity and for that I thank the ‘greedy banker teachers’. They did their job well, except, they violated Universal Law in the process. I’m a student, but not a willing participant in this lesson.

    If they could only get me to contract to accept their offer to ‘steal’ my home, it may have worked, but I never agreed to have it stolen, never agreed to be pulled out of the private and into the public, never agreed to be treated as anything less than the corporeal adult I am, and never agreed to be forced from my home by hired hand. I also did not abandon my home, so it was not fair to turn me into a criminal such that the only way to access my property is to break in, and it was not right to convey it via fraud sale when the Attorney General specifically put a freeze on the sale of foreclosed home. Now they’ve stolen from me and the supposed new homeowners. The problem is, I have the security interest in my home. Cut and dry..I have the security interest. It has to come back to me. “I know what I”m saying when I say I have the security interest in my home.”

    The lawyers that pretended to represent Fannie Mae have really dug themselves a hole. I never had to raise a hand nor fight them. They did it to themselves.

    The judge that sent the hired hand, can’t believe it. I still can’t get a copy of the entire court case. They said they need 10 days to give it to me. Something about it being a big file. Laughing out loud.

    No, you’re probably finally reviewing the evidence. I patient. But I learned a lot. A lot more than I knew before this all began. If nothing else, America is smarter and wiser.

    I love un-windings.

    Light and Love,
    Trespass Unwanted, alive allodial, corporeal, life, live born, free, born alive, in jure proprio, in jure divino, whole blood, freeman, adult

  5. to debi J
    When I received a decision from NY Chief Judge Jonathan Lippman that said ‘Motion for leave to Appeal dismissed upon the grounds that the order sought to be appealed from does not finally determine the action within the meaning of the Constitution” and corrupt Attorney Thomas Malone of Fidelity National Title sent a copy of that decision to Mullooly, Jeffrey, Rooney & Flynn, I knew there was a sinister connection between the two law firms since MJRF had not worked for Astoria Federal S & L for approximately 7 or 8 years. Thomas Malone was part of the title team that paid a bribe to Judge Alice Schlesinger under the table to rule against the US Supreme case of Elliot v. Piersol.
    When I wrote a simple letter to Wm. P Foley CEO of Fidelity National Title “what went wrong that Thomas Malone finds himself fighting for a Forged Deed?” Fidelity National Title’s answer to me was “it is proper…” I thought “it is proper? to fight for a forgery and try to pass it off as real? ” I said to myself this Foley is a con man and applied one of my favorite thoughts – the fish rots from the head down.

    Look at Foleys bio. He was Chairman of LPS Docx till the counterfeiting of douments started to beome known and Foley retired from LPS Docx. He is the man the FEDs should be looking at .I believe Foley caused more people to have lost their homes to fraudulent documents and fake dates then any other person because he is the man behind orchestrating the paperwork scams.

  6. Negligence is a failure to act. The charge should have been fraud because it is a false representation of a matter of fact; deceiptful.

  7. Wimpy, wimpy, wimpy!!! Crooks need to go to jail, or they will just do it again. Really sad. And now our great country is being suborned by the mega corporations. Let’s see: insurance monopoly, pharmaceutical monopoly, munitions manufacturing (Boeing, Westinghouse, GE and more), big agra monopoly (so we can eat more toxic food), mega banks (toxic housing market), stock market manipulaltion, Big oil, media manipulation, Congress and our voting manipulated with huge donations and lobbying, corporate welfare, constant unrelenting wars–all unsustainable and all rotten to the core.
    We, the people, are the only thing left to stop it. Burmese8@yahoo.com

  8. JP Morgan Consent Order Helping?

    I have a client who was paying on a loan mod with Chase but was foreclosed on in Oct 2010. They later stipulated to a judgment in UD. We filed a complaint in Orange County California for breach of contract, promissory esoppel etc. but were up against Malkoskie and were 4 days from the sheriff’s visit. Then, the Chase Consent Order

    My argument is: Although no one is admitting anything, they are ordered to “cease and desist and take affirmative action” to remedy the “alleged” practices that constitute unsafe and unsound banking practices which include all conduct enumerated under category 3 “Foreclosure Review”. Specifically related to my case, that is “(iv)whether a foreclosure sale occurred when the borrower had requested a loan modification or other loss mitigation and the request was under consideration when the loan was performing in accordance with a trial or permanent modification.”

    The Consent order requires JPMC to submit a plan to “(iv) take appropriate steps to remediate any foreclosure sale where the foreclosure was not authorized as described in paragraph 3 above.”

    The attorney representing Chase actually called and said they were calling off the sheriff and going to see if they could work something out. Who knows?

    While it is clear that nothing in the order gives anyone any benefit or legal or equitable right, my plan is to use the Consent Order to get past all their ridiculous demurrers and discovery objections to establish that there is a reasonable basis for me to ask for documents and discovery to establish the wrongdoing and gather the evidence I need to prove the legal right. Remember, we have a hard time getting any proof of the right to foreclose. For cases that I have that fall into any category in paragraph 3, I plan to send my argument to everyone on the cc list for that servicers consent order…don’t care if they want my mail or not.

    Barbara J Gilbert, Esq
    2230 W. Chapman #203
    Orange, Ca. 92868
    949-854-1838

  9. Window dressing. The fraudulent foreclosures will continue.

  10. To the last comment about Foley — good tip and also if u look closely Thomas Haggerty is another one who is one the boards all the way to the lime lite. MGIC is a huge pool insurer – take a look at where Fidelty gets their insurance certificate from. Look at NTC plus FIDELTY and get LPS. Now keep looking. No one cares what I say or have learned – hoping marilyn gets some answers. Its a nice tip to the huge ice berg that’s about to explode or expose (same thing here) once regulators grow some stones or backbone to expose the greed and deceit and the INTENT to defraud America. When our regulators refuse to regulate, that seems like a logical place to start. I think OBSTRUCTION of justice is a good start. We have fee splitting with attorneys, fraudulent documents which judges turn a blind eye and look retarded, to the state attorney generals. No one is doing any thing. Replace all those people as a start and re elect consumers who have been defrauded and raped. I volunteer and I know I could help bring some big boys down. The bigger they are the harder they fall. But if you let the leaders of the frausters stay in authority — where can america go from here? The trust is gone and we look like irresponsible liars and thieves. Who wants to do business with known felons? Is this more about image than justice? We the people deserve a system that is not corrupt and cares only about the mega rich. We are a nation heading towards mass disaster. 9-11 will look like a joke – not that is isn’t already. Our government did that to evade the fraud that was surfacing. This is fraud upon america. Doesn’t anyone care any more?? Debi

  11. To the last comment about Foley — good tip and also if u look closely Thomas Haggerty is another one who is one the boards all the way to the lime lite. MGIC is a huge pool insurer – take a look at where Fidelty gets their insurance certificate from. Look at NTC plus FIDELTY and get LPS. Now keep looking. No one cares what I say or have learned – hoping marilyn gets some answers. Its a nice tip to the huge ice berg that’s about to explode or expose (same thing here) once regulators grow some stones or backbone to expose the greed and deceit and the INTENT to defraud America. When our regulators refuse to regulate, that seems like a logical place to start. I think OBSTRUCTION of justice is a good start. We have fee splitting with attorneys, fraudulent documents which judges turn a blind eye and look retarted, to the state attorney generals. No one is doing any thing. Replace all those people as a start and re elect consumers who have been defrauded and raped. I volunteer and I know I could help bring some big boys down. The bigger they are the harder they fall. But if you let the leaders of the frausters stay in authority — where can america go from here? The trust is gone and we look like irresponsible liars and thieves. Who wants to do business with known felons? Is this more about image than justice? We the people deserve a system that is not corrupt and cares only about the mega rich. We are a nation heading towards mass disaster. 9-11 will look like a joke – not that is isn’t already. Our government did that to evade the fraud that was surfacing. This is fraud upon america. Doesn’t anyone care any more?? Debi

  12. William P Foley CEO of Fidelity National Title and former chairman of LPS Docx has to be added to the list of racketeers the Feds really go after, not just talk about going after.

    Lock him up with Madoff. They could talk and think of scams to eternity.

  13. This is a slap I am sure. Why in the world are felonies payable and not enforced. When are these major players going to jail? In addition to the american publics mistrust of financial institutions already — what is this going to do? Spread the message that u can file fake docs to steal anyones home? This is what causes crime. Penalties are not enforced for any one right? Free reign on the realestate market. But yet, it seems a few indictments have been managed upon the small guys never the ones that count. Why isn’t GE paying taxes? Why is the chief right next to Obama? Why is the foreclosure crisis a joke ? Can’t anyone see what really happened? Does anyone know what a ponzi scheme is? Our government is corrupt as they come. GE and BOA and AT and T ….are playing monopoly with our real lives. Thanks for all the deregulation guys, its really done wonders for the economy. I am sickened everyday by the corruption and lies. And the funny thing is, most people believe what they hear. God bless America – at least the honest hard working ones who deserve and need it. Debi

  14. Top O’ the Morning, Sir!

    http://mortgagemovies.blogspot.com/2011/04/kingcastmortgage-movies-reminder-to.html

    SUNDAY, APRIL 17, 2011

    KingCast/Mortgage Movies reminder to Attorneys Wahlquist, Kacavas and Delaney: You owe me some responses.

    Eternal vigilance is the Price of Liberty…..

  15. Lets see how far it goes!..

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