FREE Information, Resources and Help with Your Mortgage Loans – Over 13,000,000 Visitors

WELCOME TO LIVINGLIES

ABOUT LIVINGLIES AND LENDINGLIES

CONTACT US: Free and private REGISTRATION FORM

VIDEO: How To Use the TERA Report by LendingLies.com

Thursdays LIVE! Click in to the The Neil Garfield Show

Or call in at (347) 850-1260, 6pm Eastern Thursdays

About Neil F Garfield

Schedule Private Consultation

Purchase Services and Products

Submit Case Interview Form – Receive Customized Recommended Services

Q & A – What can you do for me?

Contact Information:

GTC Honors, Inc.

Phone: 954-451-1230

Email: info@lendinglies.com

Services include: Expert Consultative Services, Strategy, Qualified Written Requests, Case Review and Reports, Forensic Analysis Referrals, and our Title and Encumbrance Analysis.

MISSION STATEMENT: I believe that the mortgage crisis has produced manifest evil and injustice in our society. I believe our recovery will never reach the majority of struggling Americans until we restore equal protection for all citizens and especially borrowers in our debt-ridden society. LivingLies is the vehicle for a collaborative movement to provide homeowners with sufficient resources to combat bloated banks who are flooding the political market with money. We provide thousands of pages of free forms, articles and discussion of statutes, case precedent and policy on this site. I provide paid services, books and products that enable us to maintain an infrastructure to provide a voice to the victims of Wall Street corruption.

Ask about our CONSULTATION SERVICES and LITIGATION SUPPORT.

Case reviews by Neil Garfield available. Litigation and Expert Consulting in all fifty states.

Educate Yourself and Your Lawyer: Read this Blog and Purchase Books & Services from our Online Store

  • GET A CONSULT WITH NEIL GARFIELD
  • PARALEGAL SERVICES
  • GET A REVIEW AND REPORT ON STATUS AND STRATEGIES
  • GET our Rescission Package
  • GET Litigation support
  • Get our COMBO Title and Securitization Report
  • FREE! Select recent articles from the right side of this page!

RECOMMENDED READING:

WHOSE LIEN IS IT ANYWAY? by Neil F Garfield. E-Book available on our online store.

Pretender Lenders: How Table Funding and Securitization Go Hand in Hand” By William Paatalo and Kimberly Cromwell. CLICK: http://infotofightforeclosure.com/tools-store/ebooks-and-services/?ap_id_102

Eric Mains: #MeToo- Is Social Justice a Viable Alternative to a Flawed and Compromised Judicial System?

La Revolucion

# MeToo and #MineToo revolución!

By Eric Mains, J.D, Former Federal Bank Regulator

In the last few months we have seen a literal wave of the wealthy and influential falling from grace, losing their positions of power and ducking for cover as their conduct becomes scrutinized in media and social media. They have become keenly aware if they have something to hide in their past or present that maybe, just maybe, the specter of justice, fate, retribution… call it what you will, but a reckoning of some sort may finally be coming for them.

The key difference from what we have experienced in the recent past is this is not just a few token individuals who are intentionally being sacrificed by other peers just to placate the masses, to give us a sense that there is justice out there, while a majority of the remaining transgressors remain free to go about business as usual. Until recently perpetrators of sexual harassment could expect their violations to either go unreported, or if reported by a victim to a typically “helpful” HR representative at a major corporation, would likely result in that persons termination shortly afterwards or a hushed payout and dismissal from employment. So, what’s changed? Why this sudden firestorm in the specific areas of sexual harassment & civil rights?

Well for one, the rise of social media giving voice to those who were previously either too intimidated or too ashamed to go through the regular channels of our justice system or report incidents to mainstream media. The lessening of any stigma attached with coming forward over allegations of sexual misconduct or workplace harassment to be sure; but perhaps more overlooked has been the slowly building tension from all corners of America with a justice system that over the past few decades has become ever more inaccessible and ever more compromised for certain victims.

The courts in America have slowly devolved (or evolved, depending on your perspective) into a long, drawn-out, pay-for-play system which favors those with the most money and connections. They can hire consultants to figure out how to pick and influence juries, and to try and maneuver into the most favorable venues with the most sympathetic judges. Whether the offense is sexual misconduct, civil rights violations, foreclosure fraud, etc., in many cases if the transgressors have enough resources, they are likely to see a deminimus sentence and little punishment handed out. This disparity in a lack of justice for victims, as compared with other areas of the law, has long existed due to the perceptions surrounding the victims by those in the public and in the system as well.

The above may sound cynical to some, or simply a self-evident statement of the way things are to others.  Those in the former category, who are true believers in our current justice system, may think that movements like #MeToo are just mob justice, devoid of the kind of impartial and logical dissemination of fact based justice they believe our current system provides.  To them, it represents chaos, it threatens the foundational platitude that, “We are a nation of laws”, with a system that meets out justice in a generally fair and impartial manner while ensuring the innocent aren’t wrongly accused or convicted.  That would be a valid sentiment-IF backed factually by a system that did function as such a majority of the time. Most would simply point out to the supporters of our current system that unless they have had blinders on for the past 200 years, they would notice our system has done a pretty haphazard job at providing for such an idealized form of justice in practice.

Don’t get me wrong, having a law degree and having worked as a government regulator I want to be able to have more faith in our justice system and the rule of law, faith that we do have mostly impartial and fair judges, and a court system accessible and open for equal justice to all. I still remember from my law school days something that particularly offended me at the time, when one of my professors stated matter-of-factly to our property law class the futility of assuming case law or precedent was necessarily going to ensure victory in the court room, “Unfortunately, most of the time the law is what the judge says it is, heh, heh, haauurrgh”. In hindsight, Professor Rooney was right, and the reality of our justice system keeps smacking I & my former classmates in the face daily just to drive home that point. Looking at a crosscut of some recent data and analysis of our nations various court systems shows the general problems petitioners/consumers/victims run into once inside it.

Consider access to the judicial system: In a Propublica study of bankruptcy filings, it found for those residing in majority black zip codes who file for bankruptcy, the odds of having their cases dismissed (and failing to attain lasting relief) were more than twice as high as those of debtors living in mostly white zip codes. Why? In general, it was driven by money. Impoverished filers could not afford to file for the costlier Chapter 7 cases as opposed to Chapter 13’s, resulting in less of their unaffordable debt loads being relieved. They, ironically, could not afford to get lasting relief from the bankruptcy system because of immediate financial distress. See https://projects.propublica.org/graphics/bankruptcy-data-analysis . A facial review of our justice system shows one in which only those with income below stated poverty lines can access free legal help in general, and that help is generally outgunned and outmanned. Got $200-$350 to file your court case and pay for your attorney fees/retainer in a civil matter otherwise? Not likely, and a pretty good chunk of those between the $20K-50K range really can’t afford the cost of entry in civil litigation, and are quickly priced out of the game when litigating against corporations. Why not take advantage of some impartial arbitration if you can’t sue?….don’t make me laugh.

How about impartiality in judicial decisionmaking? In a recent paper, Judging the Judiciary by the Numbers: Empirical Research on Judges, by Jeffrey Rachlinski (Cornell) & Andrew Wistrich (CA Central Dist. Ct.), the authors found that just like most humans, judges succumb to various “mental shortcuts” that can lead them to mistakes. The paper’s abstract reads “Do judges make decisions that are truly impartial? A wide range of experimental and field studies reveal that several extra-legal factors influence judicial decision making. Demographic characteristics of judges and litigants affect judges’ decisions.

Judges also rely heavily on intuitive reasoning in deciding cases, making them vulnerable to the use of mental shortcuts that can lead to mistakes. Furthermore, judges sometimes rely on facts outside the record and rule more favorably towards litigants who are more sympathetic or with whom they share demographic characteristics. On the whole, judges are excellent decision makers, and sometimes resist common errors of judgment that influence ordinary adults. The weight of the evidence, however, suggests that judges are vulnerable to systematic deviations from the ideal of judicial impartiality.” See Cornell Legal Studies Research Paper No. 17-32, July 2017 at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2979342

Racial and gender discrimination in decisionmaking? In Examining Empathy: Discrimination, Experience, and Judicial Decisionmaking, by Laura Beth Nielsen & Jill Weinberg of Northwestern University, a 2012 paper at http://www.americanbarfoundation.org/uploads/cms/documents/weinberg_nielsen_-_examining_empathy.pdf , the researchers reported that white federal judges are about four times more likely to dismiss race discrimination cases outright, and are half as likely as black federal judges to rule in favor of people alleging racial harassment in the workplace.

The authors argue this is because African American judges have likely experienced discrimination themselves, and therefore they can recognize more complex and subtle forms of racial harassment. How about gender bias in sexual assault cases? “A Baltimore detective said 90% of sexual-assault cases are ‘bulls—,’ but that’s just the start of the department’s problems” from  http://www.businessinsider.com/justice-department-slams-baltimore-police-department-gender-bias-2016-8  …and here https://www.justice.gov/opa/pr/justice-department-finds-substantial-evidence-gender-bias-missoula-county-attorney-s-office .

A DOJ investigation in Missoula in 2014 noted the following “Despite their prevalence in the community, sexual assaults of adult women are given low priority in the County Attorney’s Office; The County Attorney does not provide Deputy County Attorneys with the basic knowledge and training about sexual assault necessary to effectively and impartially investigate and prosecute these cases; The County Attorney’s Office generally does not develop evidence in support of sexual assault prosecutions, either on its own or in cooperation with other law enforcement agencies; Adult women victims, particularly victims of non-stranger sexual assault and rape, are often treated with disrespect, not informed of the status of their case and revictimized by the process;  and The County Attorney’s Office routinely fails to engage in the most basic communication about its cases of sexual assault with law enforcement and advocacy partners.” This is a 2014 report of just one city…ever wonder why women from the 1970’s, 80’s & 90’s often never bothered/dared reporting any assaults until now? Enough said.

Racial discrimination in sentencing? In a first of its kind report from 2014-2015 found here http://projects.heraldtribune.com/bias/sentencing/ The Herald-Tribune in Florida spent a year reviewing tens of millions of records in two state databases. Among the stated findings: “Florida’s sentencing system is broken. When defendants score the same points in the formula used to set criminal punishments — indicating they should receive equal sentences — blacks spend far longer behind bars. There is no consistency between judges in Tallahassee and those in Sarasota. • There’s little oversight of judges in FL. The courts keep a wealth of data on criminal defendants. So does the prison system. But no one uses the data to review racial disparities in sentencing. Judges themselves don’t know their own tendencies. Across FL, when a white and black defendant score the same points for the same offense, judges give the black defendant a longer prison stay in 60% of felony cases. For the most serious first-degree crimes, judges sentence blacks to 68% more time than whites with identical points. For burglary, it’s 45% more. For battery, it’s 30%.”

Consistency in decision making and opinions based on case precedent?  In a Nevada Law Journal paper entitled Stare Decisis In The Inferior Courts Of The United States, by Joseph W. Mead, his abstract notes “While circuit courts are bound to follow circuit precedent under “law of the circuit” the practice among federal district courts is more varied and uncertain, routinely involving little or no deference to their own precedent”  While I simply don’t have room for his full analysis here, I will note he concludes his paper in part as follows “But we are now left with a puzzle. If district courts indeed possess the power to either adopt the law of the district or require some other level of deference to precedent, and there are good reasons to do so, why have so few followed this path? I think the answer is not that district courts are choosing not to, but that they have not yet given the matter consideration.”

Foreclosure Bias? That’s an entire book, just ask David Dayen who wrote Chain of Title, or Abigail Field who accurately noted back in 2011 http://fortune.com/2011/04/18/fighting-a-foreclosure-suit-hope-for-the-right-judge/ “Not all judges are confronting the issues in the same way. Many are adopting procedures to stop any fraudulent behavior by the banks and are investigating questionable documents submitted in their cases. Other judges are turning a blind eye, at best.”

While I will save that aspect for a near future article, I will simply note that some judges going beyond turning a blind eye; they are straying into obstruction of justice, using a “selectively creative” doctoring of fact patterns from homeowner complaints to suit their narratives when issuing rulings, or just outright failing to address motions to correct error or address black letter law when challenged by attorneys. Par for the course, especially in the federal court system, which took a shamefully compromised former AG Eric Holder’s call to consider his TBTF/sympathy for the devil ideology in favor of Wall Street banks, and the fed courts ran like Usain Bolt with it (All while Holder’s temporarily vacant office was being kept warm at Covington & Burling, and Fannie Mae & Freddie Mac were being systemically looted by the Obama administration). A recent article discusses how the black community and consumers suffered in the name of this flawed ideology  http://peoplespolicyproject.org/2017/12/07/destruction-of-black-wealth-during-the-obama-presidency/ by Ryan Cooper and Matt Bruenig)

I know what many are thinking at this point: “So What? What are you telling us we don’t already know? The justice system is not perfect, it never will be, but it’s functional, and it’s the best we have to work with!” It would be the last part of that sentence that I would wholeheartedly disagree with, and why a platform like #MeToo is now becoming an important, and I think very valid, social justice alternative. Our system is not the best it can be in part because we have come to accept the fallacy that judges, politicians, prosecutors, police, CEO’s, talk news hosts, etc., those who help to shape, influence, or enforce our justice system in different ways, should be held to a different level of accountability, job performance, and social review than the rest of society.

You screw up on your job, make a bad decision that costs the company, hurts clients/constituents, and choose to allow an illegal or immoral activity to take place?-FIRED! Those in the aforementioned categories? Insider trading based on stock tips you get in office, OK! Screw over constituents/rear end a petitioner because his mother dresses him funny? That’s valid! Harass your office assistant or underling? You gave them a job, and they knew the game, grin and bear it! I could go on, but need not. Not only do those with access and who benefit from the system not want change, but those who work within it often don’t recognize the need for change (See Mead & FL Herald Tribune report, supra). Those within it don’t tend to question the biases that have been ingrained in them when they do make decisions (See Rachlinski, Nielsen, etc., supra). They are subject to undue influence by those with access and money who know how to “work” the justice system.

I routinely quote, and will continue to quote Frederick Douglass, because 150 years later the reality he highlighted has not changed one iota, “Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.” Church Frederick! If we must accept that our system is biased, broken, and not soon to change, how the hell can we expect to wrangle justice out of it when all avenues for influencing seem out of our control? That’s where Douglass recognized the simplicity of the truth, and so does #MeToo-It’s demand! It’s fear of a collective and sizeable retribution for ignoring social justice & common morality. It’s creating consequences outside of a non-functional system that ultimately can lead to change in that system. Social media has given a voice to those who have not had a simple, affordable, accessible platform to demand justice denied them. Technology has now made that possible, and another old adage has proven itself to be as true as ever-“Cockroaches scurry under the light”

Can the wrong perpetrators of alleged crimes be identified or wrongly harassed by a # MeToo movement? Yes, but that risk is also true in the current system. Laws are in place to protect or compensate the innocent or wrongly accused, as well as punish those who knowingly make false statements. If the law and our justice system is a search for truth and justice, then maybe # MeToo will help expedite the administration of this in a system where it has been delayed and denied those without money and a voice. Maybe it’s time for a few more platforms like it from civil rights violations to fraudulent foreclosure….Maybe it’s time to remind those in our system who they are there to work for, and demand they do a better job of it… to demand a change from them and our system instead of quietly submitting…. Viva la # MeToo revolución!

Editor’s note:  Perhaps the wronged homeowner’s call to arms simply starts with a simple hashtag called #MineToo.  If you have been victimized by a loan servicer or foreclosed on fraudulently tweet #MineToo!!!

 

 

 

The Phantoms of Foreclosure: Phantom Creditors, Trusts and Debt

by Jay Guggenheim

Hurry!  Sign up for the ‘Death of a Salesman’ seminar on Monday at 4pm Eastern here.

 

Neil Garfield, attorney Charles Marshall and investigator Bill Paatalo discuss how mortgage servicers are collecting phantom debt on behalf of phantom creditors by creating fabricated and forged documents on the Neil Garfield show.  Servicers counterfeit mortgage notes and pursue collection of this ‘debt’- but who do they send the proceeds they collect to, if there is no true creditor or funded trust that can be identified, or can accept payments from the servicer?

It is now known that:

  • The banks funded themselves instead of the trusts which never really existed (phantom trusts).
  • The banks covered up their theft of investor money by originating or buying loans with investor money and not trust money.
  • The theft has been the subject of settlements in which the owner of the debt — the investors — is paid off with cash and “resecuritization” in which actual loans were “sold” into a new trust (Like Zuni) by a party who STILL didn’t own them (phantom sales).
  • The proceeds of judicial and nonjudicial sales do not go to investors but back to the “underwriters” of nonexistent worthless certificates issued by nonexistent trusts that are registered nowhere and unfunded (phantom trusts).
  • The underwriter acts as “Master Servicer” for the phantom trust and collects “servicer advances” that were neither advances nor from the servicer, but rather a return of investor capital even if it was OTHER investors.
  • The “Trustee” of the Trust is not a Trustee either in writing nor in practice (phantom trustees).
  • We know the banks are acting on their own behalf and not on behalf of the investors or the trusts.

What we still don’t know- is where do the proceeds collected by the servicers from homeowners go- if there is no Trustee or Trust? 

The servicers are trying a ‘hide in plain site’ strategy by deliberately adding new players to the chain of title and switching servicers so another opaque level is created.

  1. Servicers are often changed the moment a homeowner goes into default.  Therefore, if litigation ensues, the servicer won’t have to reveal who payments are being forwarded to because no payments are being made, and
  2.  Servicers often change immediately after a foreclosure sale occurs so it isn’t disclosed where the sale proceeds went to.

Therefore, Neil Garfield suggests that homeowners and attorneys subpoena, not demand in discovery, who receives/received payments from the servicer, and name not only the current servicer in litigation, but former servicers as well.   Charles Marshall points out that he sees this servicer-switch particularly with homeowners who prove difficult or litigious, and to create an additional layer to conceal the truth.  The servicer transfers are an attempt to launder the papertrail.  He also says that this strategy makes it more difficult to discover who the true lender at origination was.

 

Neil Garfield says this plan is standard operating procedure now and that he can “imagine a room full of lawyers trying to plan out a strategy to confuse the homeowners, attorneys and courts- first they must make the money and ownership transfers difficult to understand, and then they must devise a system that makes it difficult for pro se litigants to get the information they need to create a defense.”

Back in 2007 and 2008 Garfield said he was sending out QWRs on behalf of homeowners who were not in default and saw an interesting pattern.  The homeowners who were current, and not in foreclosure, would receive letters providing a payoff amount, but no copies of note or assignments; but homeowners in foreclosure would receive payoff amounts including endorsed notes and assignments, to establish a credible chain-of-title.  Thus, those in foreclosure received a full QWR response including fabricated and robosigned documents that created the appearance of legitimacy.

Neil Garfield says that the banks and servicers have created an Industry of Fraud where people can create an entity, purchase lists of old debt that may or may not be valid, and attempt to collect.  Most people will tell the debt-collector to prove it or go to hell, but there is a percentage of poor, disadvantaged or unsophisticated people who will pay up.  Mortgage servicers and REMIC trustees are following the same business model by attempting to collect on debt they can’t prove they own without resorting to fabricated and forged documents.

Investigator Bill Paatalo says that in all of the years of investigating the trusts he has not yet seen any evidence that the trusts were funded or the entity foreclosing on the home purchased the debt legitimately.  In litigation, he never sees a credit or certificate holder identified and the banks rely on smoke and mirrors to collect on the phantom debt.  He said that he recently had a client that was not in default but was curious about who owned his loan.  Bill’s client received a response from Aurora emphatically stating that the note had never been transferred and would never be transferred unless there was a default.  Aurora was perplexed why a homeowner that was not in default was concerned about the ownership of his loan.  Paatalo claims he has called the GSEs and Hud who refuse to return his phone calls so he can verify a Power of Attorney.  He says it is clear that the Power of Attorneys are being substituted for the missing assignment of mortgages- because Power of Attorneys are typically not recorded in the county records.

Phantom debt is being collected on behalf of phantom creditors and the nonexistent party is being papered over by pledging the loan to a trust that doesn’t exist, as agents of agents of agents, and false Power of Attorneys and Attorneys in Fact.  The scheme creates such a convoluted ‘fact’ pattern so that homeowners and their attorneys must try to untangle the ownership knot thus requiring hours and  hours of work.  Garfield points out that this layering, or laddering as Goldman Sachs calls it, id a deliberate attempt by the banks, to confuse whoever is bothering them.

For example, there may be a signature and the name of a corporation on a document, below  it will show Bank of America as successor to Lasalle Bank as Trustee, as Trustee for XYZ trust, as Attorney In Fact, for x entity.  This deliberate obfuscation should be brought to the attention of the court and is a strategy to push out time and space- to buy time and also for attorneys to create additional billing hours.

Neil Garfield calls this strategy of the major investment banks, the “real thiefs in interest” because they do not posses a party who can be identified as the “true party in interest” as required to declare a default or foreclose.  The investment banks create puppet attorneys who do their dirty work, and because of this risk, the lawfirms facilitating this crime are paid handsomely.

Bill Paatalo recently who is an expert on the ‘hide, conceal, and cover’ strategies by the banks, recently obtained a copy of a itemized settlement statement from a lawfirm defending a USBank/Chase foreclosure.  The bank had paid over $450k and over 1,224 billable hours to defend against a simple foreclosure action, to buy a Cynthia Riley issue and hide the fact there was no certificate holders.  Paatalo points out that the head attorney was paid $628 an hour for four months of full 40-hour work weeks.   It is likely the mortgage wasn’t a fraction of this amount, but it shows that the banks are afraid. He points out that it is unlikely that any investors would authorize that type of expenditure if they existed- but would look for an equitable solution.

Garfield says to take the billing expense issue one step further, and states that attorney fees are deliberately ran up by law firms defending the banks due to the risk of the work being done.   Attorneys submitting forged and fabricated documents are putting their careers on the line, therefore they build in a profit for undertaking that much risk.

Additionally, the lawfirms have software that can recreate the record, cover up bonuses, move numbers around and create legitimate billing hours that were never done.  This ‘bonus’ is overlooked by the bank as compensation for risk taking.    Listen to the audio recording above to listen to investigator Bill Paatalo discuss a recent tax settlement where the certificate holders state that they have no right to recover from the homeowner, and no right to enforce the mortgage or note.

And lastly, Neil Garfield educates homeowners that the chances of proving in court ‘what really happened’ will likely not happen for sometime, if ever, and the goal of the homeowner and his or her attorney should be to reveal the GAPS in what is being assumed as the foreclosure path.

 

 

 

 

 

 

The Neil Garfield Show: Foreclosure Q & A. Have a Question? Neil Garfield wants to hear from you!

Q & A with Neil Garfield

Thursdays LIVE! Click in to the The Neil Garfield Show

Or call in at (347) 850-1260, 6pm Eastern Thursdays

 

Co-hosted with attorney Charles Marshall.

Do you have a perplexing question about foreclosure, securitization or chain-of-title issues?

Neil Garfield will answer questions from callers.  Please keep your question brief and limit yourself to one question so other guests may have an opportunity to speak with Neil.  Information provided is for educational purposes only and is NOT intended as legal advice.  Neil recommends you meet with an experienced attorney in your jurisdiction for guidance.

The Neil Garfield blog at www.livinglies.wordpress.com is the nation’s premiere website for information on fighfting wrongful foreclosure, identifying predatory bank practices, securitization issues and .chain-of-title issues.

www.lendinglies.com

MAIN NUMBER: 202-838-NEIL (6345).

Get a Consult!

https://www.vcita.com/v/lendinglies to schedule, leave message or make payments.

Our Services:  https://livinglies.wordpress.com/2016/04/11/what-can-you-do-for-me-an-overview-of-services-offered-by-neil-garfield/

Register for Consultation here: https://live.vcita.com/site/lendinglies

Investigator Bill Paatalo: Nationstar Conducts “Bulk Note Sales” Without The “Notes?”

In 2013, investors in six “RALI Series” Trusts filed a complaint in New York against their Master Servicer (Nationstar Mortgage, LLC) for conducting “Bulk Note Sales” of non-performing loans owned by the trusts for its own benefit; specifically to recoup upwards of a billion-dollars worth of servicing advance receivables. The Plaintiff / Investors accused Nationstar of conducting these “Bulk Note Sales” without having any ownership or requisite authority to do so. (See: KIRP LLC V Nationstar Mortgage LLC).

Per the complaint:

“INTRODUCTION
1. KIRP is a significant investor in certificates issued by six residential mortgage backed security trusts sponsored by Residential Accredit Loans, Inc. (the “RALI Trusts”).  KIRP brings this action against Nationstar, the Master Servicer for the RALI Trusts, for its liquidating loans owned by the trusts through on-line auctions at fire sale prices without authorization and in  blatant abdication of its servicing duties under the governing contracts.
2. As the Master Servicer, the RALI Trusts pay Nationstar to “service” the mortgage loans owned by the trusts in the best interests of the trusts and their certificateholders.  This includes working to maximize the recoveries on each of the mortgage loans through enumerated actions detailed in Pooling and Servicing Agreements (the “Servicing Agreements”), which set forth the Master Servicer’s duties.  However, rather than fulfilling its responsibilities to maximize recoveries, Nationstar has recently embarked on a campaign to benefit its own interests at the expense of the RALI Trusts and their certificateholders, through auctioning off the trusts’ mortgage loans in bulk (“Bulk Note Sales”) for amounts that are a fraction of the loans’ unpaid balances or the value of the properties securing the loans.  While these Bulk Note Sales injure KIRP and the RALI Trusts’ other certificateholders by dissipating the assets of the RALI Trusts, they provide multiple benefits to Nationstar, including through allowing them to more quickly recoup certain advances they made on the mortgage loans as part of their servicing duties.  KIRP seeks to enjoin Nationstar from engaging in any further Bulk Note Sales in breach of its duties and to recover damages for the Bulk Note Sales that have already occurred.”
      When I read this complaint, a couple questions immediately jumped out at me regarding the so-called “notes” being auctioned off by a party that doesn’t own said notes. What did Nationstar disclose to the “purchasers” at auction as to their rights to sell the notes? And, were the “original notes” actually delivered to the bulk-sale purchasers by Nationstar as a non-owner of the notes?
 I went to the SEC and located the 424(B)(5) Prospectus filing for one of the named trusts in the lawsuit (RALI 2006-QO1). (See: http://www.secinfo.com/dsvRa.vC1.htm#7fll).
Here’s what the Trust disclosed as to the custody of the loan files on P.S-108:

Custodial Arrangements                                                          

      The trustee will appoint Wells Fargo Bank,  N.A., to 
serve as custodian of the mortgage  loans.  The  custodian is 
not an affiliate of the  depositor,  the master servicer or the 
sponsor. No servicer will have custodial  responsibility for 
the mortgage loans.  The custodian  will maintain mortgage 
loan files that contain  originals of the notes,  mortgages,  
assignments and allonges in vaults located at the sponsor's 
premises in Minnesota. Only the custodian has access to these 
vaults. A shelving and filing system segregates the files 
relating to the mortgage loans from other assets serviced 
by the master servicer.

 

 

      If Nationstar had no authority per the trust instruments to sell, liquidate, and convert the notes for its own personal gain, it’s hard to believe that Wells Fargo would release the “original” notes in bulk to Nationstar for these purposes. The likely scenario is that the bulk purchasers were delivered copies of the notes from Nationstar’s servicing system that were pawned off as “originals.”
     This goes to the heart of what I have suspected for years now in regards to these “bulk non-performing loan purchases” by debt buyers. The “Sellers” often have no rights to sell these loans, and the “Buyers” are purchasing bogus collateral files with no “original notes” and no verifiable chains of title.
 Judge Mosman Quote - Re-Default and Authentic Note
Contact Investigator Bill Paatalo at www.bpinvestigationagency.com
Private Investigator
BP Investigative Agency, LLC
bill.bpia@gmail.com

How You Can Easily Research State Records For Evidence Of Unremediated LPS Robo-Signing Fraud

How You Can Easily Research State Records For Evidence Of Unremediated LPS Robo-Signing Fraud*[1] 

By Eric Mains, Former FDIC Team Leader

Introduction

Many of the banks conducting foreclosures 2008-2013 relied on a few large foreclosure mills to litigate cases for them, and still do. For large banks, it made sense–consolidate your cases with specialized firms employing dozens of attorneys/paralegals, one-stop shop the process. Most of these firms from 2008-2013 used a version of Lender Processing Services (“LPS”) Desktop software program to create needed assignments for claimed holders of loans (Extra stress on the “claimed” part!). Some estimates put LPS’s dominance of the foreclosure software marketplace at 80% of the market during that period. LPS helped banks retain attorneys for foreclosures, and not surprisingly often chose large foreclosure mills to partner with- mills that often times had much in common with the infamous David Stern firm in Florida.

Stern’s firm became infamous for performing foreclosures using robo-signed/ forged documents when parties claiming holder in due course status lacked one inconvenient little thing–proper chain of title backing up their alleged home loans. The Stern law firm was ultimately brought down by its malfeasance after being investigated by the Florida AG’s office and sued successfully in multiple class actions. See http://www.palmbeachpost.com/business/judge-class-action-status-for-homeowner-lawsuit-against-florida-law-firm/cQbMHYSVMFUCZOILofW10K/.

The robo-signing scandal was also brought front and center in modern pop culture when CBS’s 60 Minutes newsmagazine aired an episode on the infamous use of “Linda Green” by an LPS unit as a pseudonym to endorse thousands of invalid note assignments. The episode told the story of Lynn Szymoniak’s successful investigation and qui tam lawsuit exposing the rampant use of robo-signing/forgery by banks and foreclosure mills to pursue illegal foreclosure actions. See https://www.cbsnews.com/news/whistleblower-facing-foreclosure-wins-18-million/ .

 

In 2013 a widely touted Consent Judgment (CJ) by the various State AG’s offices claimed to have resolved LPS’s robo-signing practices, see  http://www.mass.gov/ago/news-and-updates/press-releases/2013/2013-01-31-lps-settlement.html . The problem became however, if there were 1000’s of these robo-signed documents out there, how exactly did the AG’s offices follow up to confirm the documents were in fact remediated? How did they confirm the robo-signing/forgery by LPS had stopped? This was what the CJ required, and the State AG’s offices were to get quarterly reports from LPS confirming their compliance through January 2018. So why are the State AG’s offices refusing to release copies of these compliance reports to this day?

Why have they never published a list of the names of known robo-signers to be distributed to homeowners or their attorneys? Or released data on how many homeowners received required remediation under the settlement? Strange behavior from the office(s) of AG’s who collected millions under the settlement with LPS, and claimed a “Win” for consumers…or maybe not so strange if they simply failed to do anything TO follow up on the CJ. So what can the average person, or potentially a class action attorney, do to see if LPS actually complied with the CJ and remediated documents BEFORE foreclosing on homeowners, as the CJ required? Below is a basic guide one can use to get started.

 

STEP #1- Identify the Foreclosure Mill Attorney

 

Attorneys in every state are identified by a unique Attorney number (see ex. below). This makes it very easy to track the cases they have handled if your state has an online database. Unfortunately for large foreclosure mills, this also makes it extremely easy to track the specific foreclosure cases their attorney’s have handled because that’s basically the only kind of cases they handled. Alternately, you can do a search by name of bank, name of trust, etc., in most state databases, but the attorney ID number seems to work best when concentrating on one firm. The example I use below is from the State of Indiana, and uses the IN public roll of attorney database, as well as its Odyssey case management system which allows the user to search non-confidential cases. Most states do provide similar such free database systems to the public. The case lists usually go back up to a decade or more.

 

(Example from Indiana website at https://courtapps.in.gov/rollofattorneys )

Indiana Roll of Attorneys

The Roll of Attorneys is the listing of all attorneys licensed to practice law in Indiana. Search for attorneys by name or attorney number. Each attorney’s record includes license status, disciplinary history, contact information, and any other names the attorney has practiced under.

Top of Form

Search for an Indiana attorney:

By Name :

Last Name (required)

First Name

Attorney Number:

  1. 99999-99

Bottom of Form

Results

Kemper , Lawrence Joseph 18029-29 Carmel IN 10-31-1994 Active In Good Standing

 

STEP #1a- Search For Cases the Firm/Attorney Handled.

 

The mortgage foreclosure cases will be marked as such, with all litigation information available when you click on the details. Once you do that, you have party names, filings, home address of the house being foreclosed, etc. So, say you are looking for all foreclosures handled by a foreclosure mill attorney from 2008-2010, or end of 2012 through 2014? Easy to sort out using a database like above, just refine your search fields.

Prepare a list of foreclosure cases filed by your subject attorney/firm. You will want to narrow it down by the relevant dates LPS & its attorneys were required to remediate documents (2008-2010), as well as looking at foreclosures instigated and completed between early to mid-2012 through end of 2013 (or in some cases later). Why? If you later find evidence of robo-signing and backdating post January 2013, this helps establish the foreclosure mill attorneys and LPS directly violated the CJ by moving ahead with a foreclosure using documents they knew violated its terms. With your list of cases, names, etc., you’re ready for Step #3.

https://public.courts.in.gov/mycase/#/vw/Search

Search Results

Attorney Search
Attorney Search
First:
Middle:
Last:
Sounds-like:
Business:
Attorney#:  18029-29
DOB:
Court:
Limit To: Civil
File Date:
Status:
  • List
  • Hide List Details Show List Details
  • Table

1 to 20 of 2449

by File Date, Descending

1 2 3 4 5

JPMorgan Chase Bank, National Association v. Glen David Johnson, Glen David Johnson, Any Unknown Occupants et al

49D07-1709-MF-034571

Court

Marion Superior Court, Civil Division 7

Case Type

MF – Mortgage Foreclosure

Filed

09/11/2017

Status

09/11/2017, Pending

Charges

Parties

JPMorgan Chase Bank, National Association, Johnson, Occupants, Flanagan DDS, IMC Credit Services, LLC, MSW Capital LLC, Unifund CCR Partners Assignee of Palisades Ac…

Attorneys

Tekulve, Kemper, Flatt, Lawrence, Matheis

STEP #2- Locate the Land Record of Interest and Assignments.

Once you have this information, it is a simple matter to locate any recorded assignments in the county recorder’s office. Luckily, this is also available online & automated for your convenience in most states……and cheaply at that!! Using the State of Indiana as an example again, they use a commercial service called Doxpop (FYI, Doxpop handles MI too). Through these services, ANYONE can search for recorded land title records (See below). Average cost to search for, pull up, and print an assignment from home or office? $1-3 per assignment, depending on if you buy a bulk search package or just do single search. You are going to be scanning for any assignment performed just prior to, or during, a foreclosure action. In some cases a corrective assignment may exist, and if so the signature should be that of the actual person authorized to sign for a bank….good to have for later.

https://www.doxpop.com/prod/in/recorder/

 

Wells County Recorded Documents are now available through Doxpop! Details here.

Welcome to Doxpop Recorded Documents

NEW! Looking for full-size preview images of documents? Try our new Unlimited Viewing service, available in participating counties. Watch a demo to learn more.

Doxpop provides access to over 16,804,357 recorded documents from 42 counties in the Doxpop Network. Our information is updated every ten minutes and is accessible 24 hours a day, 7 days a week. We are working every day to bring new counties to our Recorded Document Service.

Learn about our advanced searching options, enhanced results, document details, and document images.

You can use our recorded document search features to find documents by name, details about the document such as the date, and information about the property to which the document refers. These documents include documents deeds, mortgages, and liens. (See a more complete list of document types.) By subscribing to any Doxpop search plan you can access these features, view all details about a document, and purchase, view, and print pages directly from our website.

STEP #3- Time to Start Comparing Sig’s, Date(s), & Notary Cards Against Your Claimed Notary.

Time to start playing “Which signature(s) don’t match?” (both Attorney-in-Fact and Notary), and “Which recording dates don’t make sense?”. You will be comparing signatures of known LPS robo-signers, whose names are easily found on the web… Google “robo-signers & LPS” as a search and you will find a trove of websites listing names. In the alternative, you will find many of them listed in Lynn Szymoniak’s original qui tam lawsuit, also available on the web in PDF.

So what are you looking for?

-Signatures by “Attorneys-in-Fact” on assignments used in a foreclosure case should match one another if made by one person. They shouldn’t be unrecognizable scribble marks in one case, legible in another, non-matching in multiple instances, etc., …common-sense stuff.

-Look at the signatures of the “Notary” on the assignment. Ditto with the above- BUT FURTHER– If they are a registered notary, does their signature match the signature card on file at the registered State agency? (Available by going down in person or requesting such from that county by mail usually).

-If the notary dated the assignment on “XX-XX-XXXX” date, then the assignment would have been sent directly to the county recorder’s office to be recorded afterwards, usually 30 days to protect priority of lien. If there is an unexplained lapse in time from notary signing to recording.. 9 months..years..Why??

Question(s) for attorney’s in a FC case if they performed discovery-

a.) Did the foreclosure mill attorney ever disclose that the documents used and material parties involved in your case included LPS, or the use of the Desktop software platform?

b.) The CJ directly affected the FC mill attorneys because of LPS conduct of interfering in the relationship between FC mill attorneys & their “real” clients (banks, servicers). LPS was found to have virtually taken over the foreclosure process in retaining and directing attorneys as to what to do from 2008-2013. Query- was the attorney effectively able to relay any requests for discovery/production of documents, arbitrate loan modification meetings (required in many states), etc., with the “real”/ supposed note holder, or did LPS interfere with these activities so pervasively as to render them a nullity?

b.) Did the foreclosure mill attorney disclose to you the fact a Consent Judgment had been issued and the documents in your case might be covered by it? Did they point out a toll free number was available for you to contact and request information/lodge complaints?

Remember- it was just such evidence of forgery and backdating, attorney/client interference, etc., that landed Lynn Szymoniak $18M when she filed her qui tam lawsuit…..her suit ultimately leading to the 2013 $125M Multistate Consent Judgment with LPS. What could a good class action attorney do with mass evidence LPS & FC mill attorney’s NEVER remediated robo-signing as required or disclosed material evidence/parties in discovery?….. Love to find out!

The Terms of the 2013 Consent Judgment in Relevant Part

Definitions, section 2.2: “Covered Conduct” shall mean LPS’ practices related to mortgage default servicing, including document creation, preparation, execution, recordation, and notarization practices as they relate to Mortgage Loan Documents as well as LPS’ relationships with attorneys representing the servicers and other third parties through the Effective Date of this Judgment.

Release, section 2.7: “Nothing herein shall be construed as a waiver or release of any private rights, causes of action, or remedies of any person against the Defendants with respect to the Covered Conduct.”  (See above!)

** Important- The Below Was Required of LPS under the CJ

“LPS will undertake a review of documents executed during the period of Jan. 1, 2008 to Dec. 31, 2010 to determine what documents, if any, need to be re-executed or corrected. If LPS is authorized to make the corrections, it will do so and will make periodic reports to the AG’s Office of the status of its review and/or modification of documents.” See, http://www.mass.gov/ago/news-and-updates/press-releases/2013/2013-01-31-lps-settlement.html

Per section 3.2 of the Consent Judgment, the 48 State AG’s offices are responsible for monitoring LPS compliance with the consent judgment through January 31, 2018. LPS is required to be in compliance with not only the terms of the Consent Judgment, but other mortgage servicing agreements and judgments in force, such as the widely touted National Mortgage Settlement, and is in compliance with the servicing standards of those settlements and other applicable state or federal laws.

Through January 31, 2018, LPS will allow the 48 state AG’s access to non-privileged documents without need for a subpoena or other compulsory process.

Section 6.1 allows the 48 State AG’s the right to reopen investigations into LPS for noncompliance with the CJ.

Section 7.1 allows for the State AG’s to take action for other violations of law, and take any actions necessary to protect the health and safety of the public.

What’s in it for you?

A search of 100 assignments looking for evidence that foreclosures were completed in violation of the CJ using robo-signed or backdated documents may cost as little as $100-$200. Cost to benefit ratio wise, if you are a large class action law firm, and if you have just a 10% hit ratio of questionable documents after searching 500 documents, that’s $500-$1000 spent to get 50 potential clients. Not bad when you look at what happened with David Stern’s firm, and look at the millions of dollars collected it in class actions.

The State AG’s are in a bit of a quandry as noted above, because if mass evidence is unearthed showing a failure to remediate and correct before foreclosing on innocent homeowner in direct violation of the CJ, they will be forced to take action. This would further open up the possibility that mass actions against large foreclosure mills will be settled quickly, unless such firms want to risk being faced with the fate of the late David Stern firm. Not bad for a minimal investment, and a little legwork.

So in closing, and to reiterate, developing a large database of signatures by name, FC mill involved, and date(s) in critical to be able to demonstrate that what the AG’s were supposed to insure happened, unfortunately, did not. The proof required is no different than it was for Lynn Szymoniak back in 2011, and just as basic and generally cheap to find….The only question is whether enough defrauded homeowners, their attorneys, or a class action firm cares to dig…..

[1] *The contents of this paper are not meant as legal advice, but merely a tool to be used by those who may wish to research foreclosure cases, and potentially seek legal advice from a licensed attorney.

Listen now to the recorded The Neil Garfield Show: Setting your case up for Litigation, Modification or Settlement.

Thursdays LIVE! Click in to the The Neil Garfield Show

Or call in at (347) 850-1260, 6pm Eastern Thursdays

Log-in to listen to archived show.

This episode will discuss setting up your case for litigation, modification or settlement.  California attorney Charles Marshall will discuss settlement framework (writ large and small), and the numerous misunderstandings regarding how settlement should or even can work.

The overwhelming majority of civil cases will settle well before reaching the trial stage of a lawsuit, nationwide. Whether we’re talking about a divorce, a car accident lawsuit, or foreclosure case parties often choose to settle their case rather than leave their respective fates in the hands of an unpredictable jury. But is settlement always more beneficial?

Settlement Basics

“Settlement” is a term for formal resolution of a legal dispute without the matter being decided by a court judgment (jury verdict or judge’s ruling). Usually it means the defendant offers a certain sum of money to the plaintiff in exchange for the plaintiff’s signing a release of the defendant’s liability in connection with the underlying incident or transaction. This can happen at any point in a civil lawsuit. It can even occur before the plaintiff files a lawsuit at all, if the parties can come together a reach a fair agreement soon after the dispute arises, and both sides are motivated to do so.

Benefits of Settling a Case:

  • Expense.
  • Stress.
  • Privacy.
  • Predictability.
  • Finality.

With foreclosure lawsuits a homeowner often has a personal or profound sense of right and wrong, and decides to make an important point that impacts more than the parties in the case. For cases challenging the constitutionality of a law or some other perceived fundamental unfairness, settling also doesn’t create precedent and won’t affect public policy.

If one or both parties aren’t motivated to settle, or aren’t coming to the negotiating table with a remotely realistic offer, then resolution of the lawsuit before trial may not be possible.  This is often the case in foreclosure disputes- by the time the lender is prepared to settle, the homeowner wants vengence for the harm they have sustained (justifiably).

Please contact Attorney Charles Marshall at:

California Attorney Charles Marshall, Esq.

cmarshall@marshallestatelaw.com

Phone 619.807.2628

This program is for informational purposes only and is not legal advice.

https://www.vcita.com/v/lendinglies to schedule, leave message or make payments.

Register for Consultation here: https://live.vcita.com/site/lendinglies

%d bloggers like this: