FDIC Sues Trustee For Failing to Protect Investors

See West Coast Workshop Northern California

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See http://mcgookeylaw.com/2015/09/fdic-lawsuit-against-bank-of-new-york-citi-us-bank/

Something new, this time from the FDIC. This time the FDIC is suing Bank of New York/Mellon as Trustee for REMIC Trust certificate holders and who failed to protect them as trustee. The suit is for breach of fiduciary duty. They will defend saying that they were prevented from taking action. But when it comes out that the money paid by investors, like a small Texas bank, never went into the trust, things won’t look good for BONY or any other “trustee.” None of the REMIC trustees seem to have any duties. They just collect fees in exchange for using their names on the documentation for the “Trust”. The FDIC had to pick up the tab for the failed certificates owned by the bank that went into receivership.

http://www.housingwire.com/articles/34822-bank-of-ny-mellon-sued-for-over-2b-in-soured-mortgages

23 Responses

  1. Reblogged this on California Freelance Paralegal and commented:
    The FDIC is suing Bank of New York/Mellon for $2 billion dollars for breach of fiduciary duty.

  2. David, you are talking about a CFPB consent order about servicer records not being admissible?? Do you know what Consent Order? There seems to be lots of them.

  3. the Pope is coming to tell a joint session of congress that he is enforcing the treaty of 1166 between King John of England and the Vatican (Bank)…

    he will tell them that the 1783 treaty of Paris between King George and the Colonies is Void because it was in contradiction to the previous standing treaties between England and the Vatican…. and that the Vatican owns the USA…

    he will tell the federal reserve private owners to go to hell, and take all their credits upon the Vatican Bank… and complete the coup that was begun over 500 years ago…

    or not?

  4. PLEASE REMEMBER WHAT I POSTED BEFORE…

    if the fed or your state, county, city, park district, school system, etc. has invested in these MBS/REMIC/TRUSTS (especially yours) and you have seen them devalued and your taxes increased because of their failure… YOU HAVE SUFFERED DIRECT OUT OF POCKET LOSSES based upon their poor management and/or fraudulent activity…

    LOOK UP YOUR MANY CAFR Fund reports and other Investment reports by these political bodies acting on your behalf…

    THERE IS YOUR STANDING!!!!!!!

  5. david, that junk at you link is in an “Advertorial” – see top right of material. It’s advertizing for business from a company which apparently has an idea of a better home than a bank for one’s moolah.

  6. littlefolks, et al: I’ve noticed comments here lately about a lender’s right to call the note if the borrower conveys any interest in the collateral to another. It’s just a due on sale clause. The lender is establishing a right to call the note due if the borrower sells the collateral, the house. What’s the querry? What’s the problem?

  7. collapse or currency crisis.

    But what’s really disturbing here is that the guy who issued this video – out publisher – is the founder and president of a media company bigger than the New York Times and the Wall Street Journal. He even had a corporate legal review every line of it to ensure that it was 100% based in fact.

    For the moment, this video is available online HERE (it’s free). How much longer it will remain so, we don’t know, so watch it now.

    CLICK TO SEE THE SHOCKING TRUTH FOR YOURSELF

    For the moment, this video is available online HERE (it’s free). How much longer it will remain so, we don’t know, so watch it now.

    CLICK TO SEE THE SHOCKING TRUTH FOR YOURSELF
    border=

  8. Why would one of the most powerful senators in DC beg his wife to go to an ATM and take out everything it would let her?

    According to reports, Richard Burr – now the Chairman of the Senate Intelligence Committee – called his wife on a Friday night to tell her he wasn’t coming home for the weekend.

    Then he made a disturbing request: “Tonight, I want you to go to the ATM machine, and I want you to draw out everything it will let you take.”

  9. The video – recently posted on the Internet here – reveals a fatal flaw in the US economy – created in the 1970s – that’s about to make every ATM screen near you go dark… and turn the US dollar into the rarest currency on earth.

    An event like this could leave millions of Americans cut off from their savings, their investments, and their own bank accounts for months – even years – at a time.

    The shocking part is that although this video has been kept under tight wraps up until the now, people are already snatching up as many US dollars as they can. Dollars have been soaring in value over the past year.

  10. I see the CFPB posts, congratulations for using the public servants to protect our rights.

    Now realize this. These businesses have processes for dealing with CFPB, and some of their processes is to submit nonsense answers that will not be read by CFPB personel unless it has a dispute of the response.

    So after 60 days if you are satisfied with what whoever is working for the company, puts together as a response to the complaint, then you are considered to no longer be in dispute.

    if however the employee that put together the response did not answer the question or issue that started the response, or whatever the employee put into the response raises other issues, there is a button to dispute the response.

    If an employee mentions something with absolute certainty and you know they do not have first hand knowledge and are misrepresenting the facts, state that in your reply, using the buttons available.

    Now the business will reply electronically through CFPB as well as sending written correspondence.

    If it is your will, you must decide if you are going to respond outside the CFPB system, or keep all documented results within the CFPB system when you communicate with them.

    I have been through the process, and I have a touch of experience in what they do; and I prefer that CFPB sees all my interaction with the employees of the business so all my communication regarding the dispute is in one place, the CFPB database.

    ————————— interesting open discussion —————————-
    http://billingsgazette.com/business/no-checks-please-irs-no-longer-takes-checks-for-m/article_6cd30c6c-569b-5d61-8194-7c27741b4109.html

    To read the article, a pop is there and the article is blank lines.
    the pop up has a question to be answered, in order to see the rest of the article.
    I selected the option to ask for a different question, and was able to read the article.

    ————————————————————————–
    I don’t know banking just like I don’t know legal.

    Wire transfer is more final than the check kiting people used to be able to do when paying a debt, especially if they have a banker friend that helps them do it.

    So the so called money masters will not be able to trick the system, it would be weird fo have an account that is balance 0, that by receipt of a check, it is handled by hand and magically had 100,000,000 just so the check could clear; wouldn’t it. How’s that for unlimited credit?

    The article states this:
    Checks of $100 million or more have to be processed by hand, increasing the risk of theft, fraud and errors,

    What it doesn’t state is ‘where’ that hand processing takes place that could cause those problems like increase risk of theft, fraud, and errors.
    Where do you think that would happen? How about at a bank with one of those special bank accounts that are handled by hand?
    I have learned not to ‘infer’ anything. If it isn’t specifically stated, then there is no reason to assume they meant the problem would happen in the IRS, as it could just as easily happen at the other location that handles the check that big and would want it in hand to make sure there is watermarks and other security features on it when they process it.

    Ch-ch-changes!

    Trespass Unwanted, Creator, Corporeal, Life, Free, People, Independent, State, In Jure Proprio, Jure Divino

  11. Good info on CFPB as TU, JG? Others have been posting as well. With bankster law firm/”trustees” the law firm, debt collector “robosigning” seems to apply as debt collectors in my case, non judicial cases.

  12. Agree fraudulent servicers, trusts won’t show or can’t prove standing or verify debt if the 90%+ failed securitization is right. My xase has a different twist Garfield and others haven’t gotten into as to the mass mergers, sales.

  13. JUST REMEMBER , THE CFBP CONCENT ORDER SHOW THAT A COURT CANT RELY OWN SERVICER RECORDS. AS TRUEFUL OR CORRECT, ALSO.

    IF IT IS A TRUST TRYING TO FORECLOSE, ITS THE TRUST RECORDS A COURT MUST LOOK AT. AND IF THE TRUST WANT TO SHOW HOW THEY GOT YOUR LOAN, PAYED FOR THE LOAN, BECAUSE, THEY HAVE TO PAY ON THAT LOAN NO MATTER IF BORROWER IS PAYING OR NOT. TRUST HAS TO PAY INVESTORS.

    SO THE TRUST RECORDS WILL SHOW NO DEFAULT HAS HAPPEN ON THE LOAN PAYMENTS TO INVESTORS.

    THIS IS WHY THEY WILL DROP EVERYTHING. THEY DO NOT WANT A JUDGE LOOKING INTO AND BEHIND THE CURTAINS.

  14. I’m on same track. Made complaint to CFPB on fraudulent transfer to PMac, and around sale. Along with cease and desist letters seems to have created stalemate I’m in now. Also complicated by city actions. Just did complaint against bankster broker for harassing me and tenants, invalid docs and illegal sale. Got behind but may be there’s a reason for it with tgese types of actions coming out.

  15. HAMMERTIME ,

    i sent out a complaint to cfbp, that ocwen is not complying to the law on tila, as to what they MUST DO AS SOON AS THEY GET A RESCISSION LETTER. AS A MATTER OF LAW. ALSO SENT THEM A COPY OF THE EMAIL I GOT FROM OCWEN SAYING THEY ACCEPTED THE RESCISSION.

    JUST GOT RESPONSE BACK FROM CFBP/ THAT OCWEN HAS REQUESTED ANOTHER 60 DAYS TO RESPOND.

    NOW , ME AND MY LAWYER WILL BE IN NEXT COUPLE OF WEEKS SENDING THEM A LETTER, STATING THEY HAVE VIOLATED THE LAW, AND IN DOING SO HAVE HARMED MY CLIENT..

  16. First line doesn’t make sense as i read TILA, lay person, and basic wording of Supreme Court.TILA rescission stands on it’s own. Then you claim damages if violated as I understand it.

  17. Recent post, tell me what you think.

    TILA rescission must be accompanied in a claim for recoupment and restitution Under UCC 3-305 and UCC3-306 on the basis of a fraudulent negotiable instrument that never was…..Go to UCC9 and promissory notes are a security. this is evident with the Borrowers Certification and Authorization which demonstrates inconsistencies in language between the Deed of Trust and The notes: 
    the Deed of Trust states as follows:

    18. ‘Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, “Interest in the Property” means any legal or beneficial interest in the Property, including, but not limited to, those beneficial
    interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a
    NATURAL PERSON and a beneficial interest in Borrower is sold or transferred) without Lender’s prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law,

    If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower.

    Now go to your INTEREST-ONLY ADDENDUM TO ADJUSTABLE RATE RIDER and YOUR ADJUSTABLE RATE NOTE in which language is added specific to that slipped in Borrowers Certification and Authorization document

    Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section18, “Interest in the Property” means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender’s prior written consent, Lender may require immediate payment in full of all
    sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) BORROWER CAUSES TO BE SUBMITTED TO LENDER INFORMATION REQUIRED BY LENDER TO EVALUATE THE INTENDED TRANSFEREE AS IF A NEW LOAN WERE BEING MADE TO THE TRANSFEREE AND (b) LENDER REASONABLY DETERMINES THAT THE LENDERS SECURITY WILL NOT BE IMPAIRED BY THE LOAN ASSUMPTION AND THAT THE RISK OF BREACH OF ANY COVENANT OR AGREEMENT IN THIS SECURITY INSTRUMENT IS ACCEPTABLE TO LENDER.

    So as I see it my non legal line of thinking without giving advice 1) the foreclosure mill attorneys are bringing fraudulent claims absent all evidence which seems to me must be inclusive of the Borrowers Certification and Authorization ……

  18. I don’t trust any Trusts. Isn’t that right Bank of America

  19. They need to acknowledge settlements are not being enforced to protect homeowners and there need to be lawsuits to protect homeowners and for real restitution to those harmed.

  20. Section 4.04(c) of the Warehouse Credit Agreement is amended to read in full as follows:
    “(c) The Borrower shall make a deposit in immediately available funds into the Warehouse Payment Account
    by 4:00 p.m. (New York City time) on the Business Day on which the release of the Lender’s security interest in such
    Mortgage Loan or Mortgage-backed Securities is scheduled to occur pursuant to the purchase by an Investor under a
    Purchase Commitment, in an amount equal to the amount by which the aggregate amount of Advances outstanding exceeds
    the Borrowing Base (calculated without reference to any such Mortgage Loan or Mortgage-backed Security).”

  21. Hope to see more of these lawsuits in the near future.

  22. Bad Trustee!!!

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