New York State Banking Department has STOPPED ALL Foreclosures in the State! Not waiting for banks to stop themselves!

NOW, When are ALL the States going to do this?  New York State Banking Department STOPPED ALL FORECLOSURES IN THE STATE!

Notice in the article it says SERVICERS!!  Get it?  SERVICERS Are Foreclosing on People NOT the Owners/Holders of the Mortgage!  Right there is the Problem - THE SERVICER DOES NOT OWN THE MORTGAGE!  Over and Over again the articles SAY what the problem is and it is NOT paperwork irregularities - It is Servicers Foreclosing on people and having to create fraudulent paperwork to do so!  It is a Circle of FRAUD!

Article:

The N.Y. State Banking Department has suspended home foreclosure actions by mortgage loan servicers, requiring that they conduct internal reviews of their foreclosure practices. 

The servicers were also asked to respond to the Banking Department on the following issues:  the steps the servicer is taking or has taken to review the foreclosure process in New York; the results of the review, including a description of the process for verifying affidavits;  the corrective action, if any, the servicer has taken or intends to take in response to the review; the measures taken to ensure that affidavits filed in New York foreclosure actions are executed in compliance with New York law; and  the status of pending foreclosure actions in New York and measures taken to suspend such actions pending review.

The N.Y. Banking Department joins 47 state attorneys general and 37 banking and mortgage regulators as part of a multi-state group that is investigating the foreclosure practices of mortgages servicers throughout the country.

White House has Known about Mortgage Servicer Fraud, Did Nothing - Looked the other way! This Washington Post Article, touches a Little on the TRUTH of the MERS Foreclosure Fraud!

This article from Washington Post comes closest to the TRUTH of the MERS FORECLOSURE FRAUD of any MSM article so far of what is happening.  They Say the White House had Been WARNED about MORTGAGE SERVICER FRAUD/PROBLEMS! 

Did you catch that????  MORTGAGE SERVICER PROBLEMS!  Right there SAYS IT ALL!  MSM articles have been only saying Paperwork "irregularities".  But what they don't say is those irregularities are because the servicers are trying to cover up the Fraud of MERS foreclosures.

Small Portion of Article:

Consumer advocates and lawyers warned federal officials in recent years that the U.S. foreclosure system was designed to seize people's homes as fast as possible, often without regard to the rights of homeowners. 

In recent days, amid reports that major lenders have used improper procedures and fraudulent paperwork to seize properties, some Obama administration officials have acknowledged they had been aware of flaws in how the mortgage industry pursues foreclosures. 

But the officials said they could take only limited action to address the danger. In part, this was because they wanted lenders' help carrying out federal programs to modify mortgages that had fallen into default or were poised to do so. 

But government officials were told repeatedly that the mortgage servicing industry was deeply troubled, according to administration officials, consumer advocates, housing lawyers and congressional aides.

"Have we talked to them about servicer incompetence? Repeatedly. Have we talked to them how the servicer system is broken? Yes," said Ira Rheingold, executive director of the National Association of Consumer Advocates. "Have we talked to them about the costly stream of errors made by servicers? Yes."

Finding the FRAUD in your Loan Documents! What to Look For!

Besides the basic fact that servicers do NOT have a Right to Foreclose on anyone and MERS is Fraud and the Banks have been using fraudulent paperwork.........

Here is a good article about Looking at your loan documents and What to Look for in them for Fraud!

At 03:35 PM 10/5/2009, Mortgage Audits wrote:
Finding the Fraud in the Loan Documents:
What is now beginning to surface are the losses attributed to the massive amount of fraud that
mortgage originators created and passed on to Freddie Mac with two specific types of origination
fraud know as “Double-Funding”, “Double Selling” or “Double Warehousing” fraud and
Assignment Fraud.
“Double-Funding” involves a mortgage originator sending simultaneous funding requests for the
same loan to two different warehouse lenders. Both warehouse lenders, unaware of each other,
would send funding for the loan to the title companies specified by the mortgage originator. The
mortgage originator then disburses the money from one lender to the borrower, while directing
the title company to wire the money received from the other lender to mortgage originator’s bank
account. The mortgage originators then provide fabricated mortgage documents to the
warehouse lenders that falsely represented that the lender’s funds had, in fact, been used to
finance borrower loans.
Assignment Fraud involves modifications to the original loan where the name of the bank who
actually owns the note is changed on execution of the Loan Modification Agreement. The problem
with these “modifications” (actually new loans with new “lenders”) is that the old loans remain
unaffected. The existing cloud on title to the property, the mortgage deed (or deed of trust), the
note, the obligation, the purported assignments etc. is being compounded by attempts to allow
impostors to foreclose on the mortgage, collect on the note, modify the loan, or approve a short
sale. The time bomb is title where securitized loans were recorded, foreclosed, modified or sold.
The parties (other than the borrower and possibly the Trustee on the Deed of Trust) had actual
knowledge that the “lender” was not the Lender, the terms of the obligation were already changed
at the time of closing, the appraisal was false, the underwriting was negligent or fraudulent, the
Good Faith Estimate was by definition rendered neither in good faith nor even close to an
accurate estimate, and the list goes on and on.
In determining whether a particular loan is part of a “double-funding” or “double-selling” scheme,
examiners and forensic accountants should look for as evidence that a mortgage originator is
engaging in this scheme and participating in a pattern of deception, forgery and fraud. Once
demonstrated, these indicators inevitably point to fraudulent affidavits and assignments of
mortgages filed in the public records.
As you examine your loan documents you should be looking for the following:
1. Loan originators, servicers and their lawyers forge documents with “squiggle marks” that are
not the marks, initials or signatures of the actual officer that is notarized to be the signatory.
2. Signature, initials or “squiggle marks” differ for the same signatory from document to
document.
3. Squiggle marks and full signatures that are diametrically opposed to the known signature of the
signatory.
4. Pre-stamped assignments and notary signatures on assignments, affidavits and proof of
claims.
5. Back-dating of dates on assignments and signatures of officers dating years after either a
company is no longer in business or the officers are no longer with the company.

Examples of this can be seen here:
http://dc131.4shared.com/download/134186016/9761c46f/BadNotary.pdf Notice that the notary
swears under oath that they witnesses the signature on these documents in 2001. However in the
State of Texas, notaries are commissioned for 4-years. The notary stamps on these documents
expires in 2006 making it impossible for this notary to have witnessed anything in 2001. Again,
these are all loans originated by Memorial Park Mortgage, sold to Freddie Mac and then, as
demonstrated here, other banks on forged and fraudulent assignments.
6. The forgery of forbearance agreements and modification agreements.
7. Missing assignments or multiple assignments of the same instrument filed in the public records
are a direct result of multi-pledging and the use of the same collateral, the mortgage loan, to pool
into securities or pledge for other financing and should be viewed as an overt act of fraud when
encountered.
As an example: http://dc131.4shared.com/download/134185974/325196a4/Aug28Admit.pdf
Freddie Mac was finally compelled by a court to admit to purchasing this particular loan even
though no assignment to Freddie Mac was ever filed in the public records.
8. The discovery of pre-dated, backdated and fraudulent assignments of mortgages or
endorsements either completely filled in or left blank to be filled in before or after the fact to
support the future allegations of a foreclosing party. These fraudulent assignments are typically
discovered by examiners in the servicers files or MERS files when MERS acts on the servicers
behalf. These documents are created for the sole purpose of assisting in concealing known
frauds and abuses by originators, prior servicers and are designed specifically to conceal the true
chain of ownership of a borrower’s loan.
Here is an example from a loan from Memorial Park Mortgage of Houston, Texas that was first
sold to Freddie Mac and then to several other banks by the originator.
http://dc148.4shared.com/download/134235430/a8cc4755/BlankAsmt.pdf Notice that the bank to
whom the assignment is made is left blank as are the instrument number and several other
blanks. More importantly, notice that the assignment has already been signed and notarized. This
document was produced in discovery by CitiMortgage even though an assignment to them
already existed in the public records.
9. No escrow instructions or settlement statements should trigger the examiner to immediately
attempt to locate the assignment of the mortgage. Multiple or missing assignments coupled with
an inability to produce escrow and settlement statements demonstrate a deliberate concealment
of the ownership of the borrower’s mortgage debt obligation and the actual lender to whom the
borrower is indebted.
10. Lack of possession of the original note demonstrating the proper chain of title and legal right
to foreclose should be noted as evidence of fraud. Coupled with a missing assignment or multiple
assignments is further evidence of the existence of fraud.
A common practice by some banks party to or victims of this kind of fraud is the fraudulent
concealment from the court and the borrower that the financial institution does not have
possession of the note. Of special note is the use of known false, fraudulent, and forged affidavits
and assignments by those institutions unable to demonstrate their possession of the original note.
The effects and implications are more far reaching than a borrower simply having their debt
extinguished. Debt extinguishment or dismissal of foreclosure actions could be obtained if it can
be shown the entity filing the foreclosure:
1. Does not own the note;
2. Made false representations to the court in pleadings;
3. Did not have the proper authority to foreclose;
4. Does/did not have possession of the note;
5. All indispensable parties (the actual owners) are not before the court or represented in the
pending foreclosure action.
This kind of fraud is not difficult to detect once you know the indicators.

MERS Tried Quiet Title - Didn't Work - WAY FOR ALL TO FIGHT MERS! Debt Still Valid - BUT NOT AGAINST HOME!

MERS tried to Quiet Title. In so doing they paved the way for millions of homeowners to sue MERS to quiet title. 

Here is yet another way to fight MERS - besides the fact the servicers are the ones trying to foreclose, of which they CAN NOT!

9.09.10 NY MERS NO AUTHORIY DISMISSED

MERS tried to Quiet Title. In so doing they paved the way for millions of homeowners to sue MERS to quiet title. The net result is that the encumbrance is invalid. That means the debt, the obligation, MIGHT exist, but it is NOT secured by the home. I’d say I told you so, but that would be immature.

All of that is important but Judge Jeffrey Arlen Spinner went a lot further and made his mark on the issue of bogus affidavits that say nothing but which are used by foreclosure mill attorneys who spout off about what the affidavit says or what it proves. Judge Spinner flatly says the affidavit would be insufficient even if MERS had an interest, which it does not. He clearly states the law which is valid not only in New York, but EVERY state and federal jurisidiction, but which has been ignored by a majority of judges until now:

To establish a claim of lien by a lost mortgage there must be certain evidence (e.s.) demonstrating that the mortgage was properly executed with all the formalities required by law and proof of the contents (e.s.) of such instrument. … Here Burnett’s affidavit simply states that the original mortgage is not in Deutsch Bank’s files, and that he is advised (e.s.) that the title company is out of business. Burnett gives no specifics as to what efforts were made to locate the lost mortgage…. More importantly, there is no affidavit from MLN by an individual with personal knowledge of the facts that the complete file concerning this mortgage was transferred to Deutsch Bank and that the copy of the mortgage submitted to the court is an authentic copy of Torr’s Mortgage.” (e.s.)

EDITOR’S NOTE: The importance of this decision and its citations cannot be over-stated. Now we are getting down to the nub of it. It isn’t enough for the  foreclosure lawyer to make empty allegations contained nowhere in pleadings, affidavit or proof. The foreclosure lawyer is seeking affirmative relief — enforcement of the note and sale of the property. If he can’t plead the case in good faith then he doesn’t belong in court. And if he does plead the case he must prove it within the boundaries of ordinary rules of evidence. A competent witness must exist who is wiling to testify under oath and who actually appears to do so. They musts possess PERSONAL knowledge (not what someone told them) of the facts about which they are going to testify. Business records exceptions are very restrictive as they prevent the other side from cross examining a live witness (a basic constitutional right of due process).

• “Trust me” is not a substitute for real evidence.
  
• If they want to prove the obligation, they need evidence.
  
• If they want to prove a default, they need evidence,
  
• if they want to prove the note is evidence of the obligation, they must prove that assertion with evidence that the note is the whole deal (which is NEVER the case in a securitized loan).
  
• If they want to prove a lost note they need evidence that the note was in existence, when it was in existence, how it came into existence, and what happened to it — not just say we had it, but now we don’t.
  
• And watch out for those “original notes.” Many of them are fabricated using simple software and a color printer. If there are no impressions on the back of the page, even the note they present is probably NOT the original and is probably a fabrication printed off a laser or dot matrix printer. Close examination will show even a novice the truth of this statement.

MUST WATCH - Secrets of Mortgage Servicers - They WANT To Foreclose. Servicer Whistleblower, got in trouble stopping foreclosure!

MUST WATCH! Whistleblower saying Servicers WANT to Foreclose - that is the way they are making the money!  She got in trouble for stopping a foreclosure, when people paid!





Gretchen Morgenson, Pulitzer Prize winning New York Times writer, about Mortgage Servicer Fraud