The Banks are now like the proverbial frog in the water that gradually heats up to boiling. Their arrogance causes them to disregard all the warning signs.
The “mismanagement” of investor’s funds and documents is a euphemism. What they are talking about is that the banks never put the money into the trusts. So it is impossible for the trusts to have purchased any loans. Therefore the PSA is irrelevant, and the servicer et al are all acting without any color of authority except that the borrower has in some way acknowledged the appearance of authority. And that means none of the banks should have filed foreclosures. And that means that if investors were told what they need to know and if borrowers were told what they need to know, then the foreclosures would never have occurred.
The foreclosures are a necessary completion to the fraud. At some point here the judiciary is going to make a fast turn, realizing that the foreclosures are a means to an end that has nothing to do with protecting lenders and everything to do with committing the world’s largest economic crime.
And I say again, if the courts want to clear their dockets, just require the foreclosing party to have proof of the money trail starting with the original loan. 80% of the cases will fail just on the basis of origination fraud — the taking of money from a party who is being defrauded and using it for the benefit of an entire series of parties involved in a meaningless paper trail that has no connection or intersection with the money trail. Apply the same logic to the endorsements and assignments and you will have practically no foreclosure cases. Just debts and debtors looking for a creditor to settle up accounts.
Bank Of America Hammered By The United State’s FHFA
Fri, Nov 8 | by Don Dion
In 2011, President Obama’s Federal Housing Finance Agency (FHFA) made financial history when it filed civil suits against Bank of America (BAC) and other mortgage lenders. The FHFA argued that the lenders in question grossly misrepresented the quality of their mortgage-backed securities. Packaged deceptively and sold to semi-public institutions like Fannie Mae and Freddie Mac, these toxic securiti…