Miami Judge: No Transaction=Unclean Hands. Judgment for Homeowner with Sanctions.

It’s time to sit up and take notice. Judges are turning the corner and getting pretty angry about what passed before as evidence. In April this order seemed like a shot in the dark. But now, we are seeing more and more judges actually study the chain of alleged transactions relied upon those who seek forced sale of a residence. The motivation of those seeking foreclosure is gradually being revealed this year. Not surprisingly they are not in the least bit interested in the property or the loan. They want a foreclosure judgment because THAT is what has value for them — getting the judge to unwittingly ratify all the preceding illegal acts and frauds perpetrated on the borrower and the courts. Once again our friends at Ocwen are named as the culprits, but this judge goes further when she says

‘This Court finds the AOM [assignment of mortgage] created in 2012 does not document a transaction that occurred in 2005, as Plaintiff suggests. The transaction described in the AOM never legally occurred.There was never a transaction between MERS and/or Freemont Investment and Loan that sold Defendant’s loan directly to the Trust. Not in 2012, not in 2005, not ever.’ (e.s.)

see ocwen-order

HSBC v Buset, Case # 12-38811 CA 01 Decided 4/26/16 Hon Beatrice Butchko

For about 10 years now I have endured taunts from people representing the banks or themselves citing case after case saying I was wrong in my legal analysis. I persisted because I knew I was right. The reality of a transaction is far more important than the self serving paperwork that parties use to justify their illegal actions  — the last decade notwithstanding. If there was no purchase of the loan then the assignee received nothing.

But more important than that is something that Judge Butchko seemed to pick up on. She asks the simple question: why would Ocwen violate a mandatory discovery order that would prove the Plaintiff’s case? Instead they tried to plow through without the reality of a single transaction in which a loan was made, purchased or sold.

If the alleged loan was not sold then why were there any papers showing a transfer of the “loan.” And if each party in the chain was paying nothing to the party before them, why was the assignor signing an assignment without getting paid for it. And if that is true for all the assignments and endorsements then was the originator a lender? If the originator received nothing in a purchase transaction for the alleged loan, the only logical conclusion is that there was no loan by the originator and there might have been no loan at all.

With that conclusion why would a party with no money in the “game” be suing for foreclosure? The answer must be completely separate from the loan because that is obviously of no consequence to those participating parties that were getting fees for executing documents that pretended that there was a purchase and sale of the debt. The answer is that foreclosure is the ONLY way they could cover their tracks in the false sales of mortgage bonds issued by an empty non-operating trust. If you look at decisions like this and thousands of other cases the conclusion is inescapable — a foreclosure judgment is the first and only legal document is the entire chain.

Here are some quotes

The Court takes judicial notice that on July 25, 2008, Freemont Investment and Loan (“Freemont”) entered into a voluntary liquidation and closing which did not result in a new institution. https://www5.fdic.gov/idasp/confirmation_outside.asp?inCert1=25653. As such, the status of MERS as nominee for Freemont ended when Freemont closed on July 25, 2008, which renders the AOM created in 2012 void ab initio.

This endorsement is contrary to the unequivocal terms of the PSA, in evidence over Plaintiff’s objection, which required all intervening endorsements be affixed to the face of the note because there was ample room for endorsements on the face of the note. There is also no evidence the endorsement was affixed before the originator went out of business in 2008.

The Court also finds unclean hands in Plaintiff’s failure to comply with the Court’s Discovery Order of April 27, 2015.

17. In that order, the Court overruled plaintiff’s blanket objections and found no basis for Plaintiff to object to providing any discovery under Fla. Stat. 655.059.

18. The Court then ordered Plaintiff to provide (1) the final executed documents evidencing the chain of title for the subject loan; (2) all records of any custodian related to the chain of custody of the note; and (3) all records showing how and when the specific endorsement on the promissory note was created.

The Court fails to comprehend why Plaintiff would not fully comply with the Court’s Order compelling discovery when the evidence sought by the Defendant would actually assist Plaintiff in establishing the missing link in the chain of ownership in the endorsement and assignment of mortgage.

The Court hereby enters an Order to Show Cause why Plaintiff should not be Sanctioned for violating the Court’s order on April 27, 2015, after representing that it fully complied on or before January 14, 2016.

23. Moreover, the Court hereby enters an Order to Show Cause why Plaintiff should not be sanctioned for the reasons set forth in Defendant’s Motion for Sanctions Under the Court’s Inherent Contempt Powers for Fraud Upon the Court filed on March 16, 2016.

24. Defendant is hereby ordered to conduct further discovery in support of these orders to show cause and set an evidentiary hearing on them at the Court’s earliest convenience.

Ms. Keeley testified the loan boarding process involved two steps. First, Ocwen confirmed that the categories for each column of financial data from the prior servicer matched or corresponded to the same name Ocwen used for that same column of financial data. Second, Ocwen confirmed the figures from the prior servicer transferred over such that the top figure from Litton became the bottom figure for Ocwen. The court notes that when testifying about Ocwen’s boarding process, Ms. Keeley appeared to be merely repeating a mantra or parroting what she learned the so called boarding process is without being able to give specific details regarding the procedure itself. 1 Her demeanor at trial although professional, was hesitant and lacking in confidence in this court’s estimation as the trier of fact.

To support the court’s concern regarding the lack of foundation of the so called boarded records in this case, the Court takes Judicial Notice of the Consent Order entered in the matter of Ocwen Financial Corporation, Ocwen Loan Servicing, LLC by the New York State Department of Financial Services dated December 22, 2014. This Consent Order documents Ocwen’s practice of backdating business records that it failed to fully resolve “more than a year after its initial discovery.”

1 This Court estimates that it has presided over hundreds of foreclosure bench trials since being assigned to the Civil Division in 2011. The court has accordingly heard hundreds of bank witnesses testify regarding their company’s boarding process and has accepted thousands of documents into evidence pursuant to same. The boarding process and training of personnel regarding the boarding of documents varies greatly from one institution to another.

the Court noted that the first two default letters in the inch thick stack which Plaintiff sought to admit into evidence were inexplicably dated a week apart and had a $1,900 difference in the amount required to cure the default.

the admission of the default letters mailed by an outside entity not testifying in court creates a double hearsay problem as there is no evidence of a boarding process of that third party vendor’s mailing practices and procedures. Nor did the Ocwen representative testify that she had received training regarding the procedure used by the third party vendor in mailing the default letters.

Both the endorsement and the assignment omit the Depositor, Freemont Mortgage Securities Corporation, from the transaction which constitutes a fatal break in the chain of title.

The Court gives great weight as the trier of fact to the testimony of Defendant’s

expert witness, Kathleen Cully. Ms. Cully is a Yale Law School graduate that worked her entire career in structured finance transactions since 1985. She was extremely well versed in the Uniform Commercial Code. Among many other tasks and accomplishments, Ms. Cully testified that she led the Citigroup team that created the first pooling and servicing agreement ever. She led Citigroup’s Global Securitization strategy. The Court finds Ms. Cully eminently qualified as an expert witness in the area of securitized transactions and their interplay with the Model Uniform Commercial Code.

The Court applies Ms. Cully’s reasoned analysis as it relates to the note and mortgage for the subject loan and to Article 3 of Florida’s Uniform Commercial Code. However, it is axiomatic that all promissory notes are not automatically negotiable instruments.

This Court finds that the Note is non-negotiable as the amounts payable under the Complaint include amounts not described in the Note and as the Note does not contain an unconditional promise to pay.

66. The promise is not unconditional because the Note is subject to and/or governed by another writing, namely the Mortgage. Moreover, rights or obligations with respect to the Note itself—as opposed to the collateral, prepayment or acceleration—are stated in another writing, namely the Mortgage.

The Court grants Defendants’ Motion for Involuntary Dismissal and enters judgment in favor of the Defendants who shall go forth without day.

83. The Court reserves jurisdiction to award prevailing party attorney’s fees and to impose sanctions against Plaintiff under the inherent contempt powers of the court for fraud on the court, and such other orders necessary to fully adjudicate these issues.

84. Plaintiff is ordered to produce a corporate representative with most knowledge regarding its efforts to comply with the discovery order dated April 27, 2015, for deposition at the offices of Defendant’s counsel within 15 days from the entry of this order.

 

12 Responses

  1. 3rd district court of Appeals???

    forget it….it will be reversed..for sure…just check the youtube videos to see how the judges are so bias ….all attorneys say is the worst court and even refuse to take appeals because they now it will be useless

    midfirst bank fraud

    oral argument fraud

    3rd DCA Foreclosure Appeal

    they don’t care if you even have the fake signer saying they fabricated docs. they just want you to pay your mortgage.

  2. It’s in the 3rd DCA …forget about it….will be reversed for sure…… 3rd DCA judges are so bias (not to say more) ….they are totally bank owned (just two of these guys seem to be worry but ,wont do anything)…

  3. The order of involuntary dismissal, etc., shows on the docket as being dated May 4, 2016.

    Since that time the docket shows an additional 38 (or so) documents have been filed, the last on September 2, 2016.

    There is also an active appeal in the 3rd DCA, as of early June 2016.

    Keep in mind this case isn’t yet concluded, and it may be premature to draw any conclusions.

  4. Creditors of Remainderman with beneficial interests remain unsecured until the Estate is dissolved. 😂

    Yeah.. . FORCLOSER OR BUST!

    Hang on Folks…We are Going Bust!

  5. Speaking of Bucketeering, Its a NO NO to create such trust .that divides a martial estate while Married Without the consent of Both spouses.

    Plaintiff: KC as One Half of the Estate.

  6. Michael Keane Bites Hard!
    I Like Him! 😃

  7. The “script” is dead

  8. Where’s the “love” button.

  9. Wow, it’s about time!!!! Glad to see a just judge OR one that is awake!! Thanks for this post, gives me hope again!!!

  10. Present, FBI Director, James Comey, was on the board of HSBC, a Chinese – English bank while it was counterfeiting titles to American Homes, in order to launder terror and drug cartel money for “sanctioned” enemies of the US…

    …known to be killing American soldiers.

    So… Our government now works for a criminal cartel that creates phony wars, then sends American GIs into harms way in order to steal their homes through forgery and fraud, while using those corrupted titles to launder terror and drug money.

    The banks robbed the proper, lawful titles, for themselves, after they had 3rd parties pay the “loans” in-full. This is called “Bucketeering”:

    http://financial-dictionary.thefreedictionary.com/Bucketeering.

    Incidentally, allowing a 3rd party to pay for someone else’s mortgage is illegal, in-and-of-itself, as “tertiary financing” and one of the reasons the RICO Laws were formed, because people used to have morality and objected to subsidizing criminal behaviors.

    The Hubert and Ann Marie Fletcher Moore Family of Philadelphia, exposed Federal Judge Gleeson’s analysis of the plea bargain, HSBC signed, among other banks and it proves criminal behaviors that are tantamount to TREASON.

    You may read that analysis of that document here: Case 1:12-cr-00763-JG Document 23 Filed 07/01/13

    Eric Holder created the mechanism that is still being used to forge and counterfeit titles to American Homes- the “MERS”.

    Professor Christopher L. Peterson wrote the original expose’ of the “Mortgage Electronic Registration System” and on page 116, he explains the “MERS” is a “shell company” used to “Pretend” to own American Mortgages.

    Professor Peterson wrote the expose’ while a Law Professor at S.J. Quinney Law School. He is now Chief Counsel for Enforcement of the CFPB.

    You may read his document here:

    http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=3399&context=wmlr

    If you read footnote 23, from the same page, p. 116, you will learn the CEO, R.K. Arnold, states it as his intention to “capture” every mortgage in the country.

    R.K. Arnold was deposed, in court, to admit he is the sole employee of his company- a company that claims ownership rights to some 70 million mortgages.

    It turns out: Arnold sold rubber stamps to Mortgage Bankers throughout all 50 states that enabled them to claim employment with Arnold’s phony company, the “MERS”.

    The rubber stamps cost the bankers $25.00 to fraudulently claim they are “Senior Vice Presidents” in a company that the owner explains never had ANY employees, in the first place.

    Loretta Lynch started a sorority with Eric Holder’s wife and she refuses to disclose Holder and “Covington-Burling” are responsible for the mortgage fraud that goes, hand-in-hand, with the “MERS”…

    Moreover, both AG Holder and now, AG Lynch are familiar with the “Deferred Prosecution Agreement- DPA” that demonstrates HSBC, Bank/America and Wells Fargo are laundering terror and drug money, for entities killing our soldiers; Holder and his DOJ, under Obama, wrote the DPA and Lynch is continuing to allow her DOJ to conceal the contents within it.

    In a bizarre twist, AG Loretta Lynch has sided with the English-Chinese Bank (HSBC) to conceal the contents of the DPA from the American People and her DOJ has forced its full disclosure be withheld, so that years may pass while her DOJ conceals these Treasonous, Criminal Behaviors, during an appeal.

    Federal Judge Gleeson now works for the banks and Federal Judge Ann Donnelly has the Treasonous, Criminal, Mess in her lap.

    These behaviors are still, ongoing and Obama is now known to have kidnapped all of the “loans” within Fannie and Freddie, through his restructure of GM.

    The “shell company” used to “Pretend” to own American Mortgages, at first, is the “MERS”; Obama’s theft of F&F “loans” is the second “shell company”- “RESCAP- Residential Capital”.

    There isn’t one single, legitimate “REMIC Trust”, or “Pooling and Servicing Agreement- PSA” to those “Trusts”- they are all being used for an insurance fraud, aka, “derivatives”.

    Clinton deregulated “Derivatives, now there are 1200 Trillion owed to them (20 X the combined GDP of every country on the planet- an impossible sum of money).

    The 1200 Trillion are predicated upon taking homes in foreclosure using phony, forged and counterfeit titles, after homeowners are “dual-tracked (the criminals are promising modifications in order to identify target homes, they are “making a market” for their fraud).

    Once the target is identified, the “MERS” and/or “RESCAP” claim “ownership” to the “loans”, through phony “Trusts”.

    They then use the PSA to collect on what is simply an INSURANCE SCAM: “Naked Short Sale Bets”, aka, “derivatives”, the homeowner must lose their home because they cannot gain discovery to the phony “Trust” as they are 3rd parties to the signing of it.

    http://stopforeclosurefraud.com/2013/08/31/michael-keane-i-personally-destroyed-thousands-of-mortgage-documents-through-the-same-process-using-a-desk-top-scanner/

    THE DEFRAUDED HOMEOWNERS ARE, ACCORDING TO THE COURTS, NOT ALLOWED TO KNOW WHO IS ROBBING THEM BECAUSE THE DEFRAUDED HOMEOWNERS NEVER SIGNED THE CRIMINAL FRAUD THAT IS THE PHONY, “REMIC TRUST”.

    Instead, the defrauded homeowners must take the word of the bank defrauding them that the bank is the proper party in interest to rob their homes.
    Of course, none of the banks can prove which bank owns what because they have lost and/or destroyed the paper.

    And, with the paper gone, the “REMICs- Real Estate Mortgage Investment Conduits”, are no such thing and now, better-decribe: “REMIFs- Real Estate Mortgage Insurnace Frauds”…

    UNLAWFUL SEIZURES OF PROPERTY, PREDICATED UPON COUNTERFEIT AND FORGED TITLES, TO “LOANS” THAT HAVE BEEN FULLY PAID IN ORDER TO LAUNDER TERROR AND DRUG MONEY.

    Obama’s seizure of the of the revenue streams of the “loans” within Fannie and Freddie is found within the “Fairholme Action” and through the courageous actions of federal Judge Margaret Sweeny.

    The fact the Obama Administration has robbed the investors and Police, Firemen, Teachers, Nurses and Municipal Workers is found, within the dialogue, on Tim Howard’s Blog:

    https://timhoward717.com/2016/04/12/truth-unleashed-governments-scheme-exposed-full-unsealeddocument-release-enclosed/

    The minority families are never supposed to discover Obama betrayed every single one of them and his behaviors regarding F&F will cause minority families, in the future, from ever owning a home- F&F will, without a doubt, be destroyed because of this criminal behavior.

    ~ Michael Keane,
    9/19/16

  11. Nevertheless, this case is in 3rd district court of Appeals now.

  12. Good to know that judges are now favoring homeowners in some states. It’s time to help homeowners as their kids are future for this nation. Hope this begins to happen in Rhode Island as well.

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