Check Out this Little Gem – GMAC’s Judy Faber, Possible Charges of Document Fabrication to Change Title

Well well well..

Now we are talkin…

I have so much info on this issue to present in the coming days that will knock your socks off…

Here is a great lead off into the realm of title fraud RE allonges that I will follow up with in my next post on this topic…

Toxic Titles anyone?

From Naked Capitalism.

Improper GMAC Affidavits Leading to Charges of Document Fabrication to Change Title

Ah, what a tangled web we weave when first we practice to deceive, said the bard.

And the web emanating from the GMAC affidavit improprieties extend much further than most may realize. Although GMAC continues to maintain that having its “robot signor” officers like Jeffrey Stephan provide affidavits on matters they know nothing about is a mere technical problem that they can remedy. In fact, an affidavit is a statement of someone with personal knowledge of a matter. Stephan signed as many as 10,000 documents a month and clearly could not have personal knowledge of the underlying situations. Deliberately preparing and submitting inaccurate documents in a legal proceeding is a fraud on the court, something most judges really really do not like.

Predictably, lawyers who are contesting foreclosures are jumping on the affidavit issue and using it to open up broader issues with foreclosures where GMAC was the servicer of the loan. For instance, this letter to a judge in South Carolina, (below) a judicial foreclosure state, discusses not only the role of an apparent fellow robot signor of Stephan, one Jack Kerr, but more critically, another document provided in this case stamped (not signed) by one Judy Faber, also of GMAC. The Faber document transferred title to the party foreclosing in the case, so if the document is invalid, the plaintiff, in this case a Deutsche Bank trust, will lack standing to foreclose (legalese for “no tickie, no laundry”). Here is the critical section of the letter (on page 2):

Upon information and believe, Judy Faber has instructed document custodians in thousands of foreclosure cases to apply her stamped endorsement bearing her name after foreclosure commenced to an allonge and after a consumer had challenged the chain of title in the case. Upon information and belief, Ms. Faber and her document custodian team at facilities described in the Washington Post article attached to this letter have fabricated and changed title in thousands of foreclosure cases.

This takes a wee bit of unpacking. The pooling and servicing agreement, which governs who does what when in a mortgage securitization, requires the note to be endorsed (just like a check, signed by one party over to the next), showing the full chain of title, and the minimum conveyance chain is A (originator) => B (sponsor) => C (depositor) => D (trust). The note, which is the borrower’s IOU, is the critical document in 45 states. The mortgage, which is the lien, is a mere accessory to the note and can be enforced only by the proper note holder (the legalese is “real party of interest”).

The wee problem is that this apparently never done (I’ve been told one person trying to track down a particular note found it, at Countrywide. The guy who wandered down the corridor to produce it from his files claimed that Countrywide kept all the notes on its deals, and would send them out on request when someone needed them in a foreclosure. If this is true, it indicates there are pervasive and not readily remedied problems. The required endorsements were never done [oh, and the bankruptcy trustee should approving any assets leaving Countrywide, a little nicety that evidently is not being observed either]).

Why is this serious? The cure for the mortgage documents puts the loan out of eligibility for the trust. In order to cure, on a current basis, they have to argue that the loan goes retroactively back into the trust. This is the cure that the banks have been unwilling to do, because it is a big problem for the MBS. So instead they forge and fabricate documents.

The letter in particular mentions an allonge. An allonge is a separate sheet of paper which is attached to a note to allow for more signatures, in this case, endorsements, to be added. Allonges have had a way of magically appearing in collateral files while trails are in progress (I’ve seen it happen in cases I was tracking; it’s gotten so common that some attorneys warn judges to be on the alert for “ta dah” moments).

The wee problem with an allonge miraculously being discovered is that the allonges that show up are inherently in violation of UCC (Uniform Commercial Code) provisions (UCC has been adopted by all states, a few states have minor quirks, but the broad provisions are very similar).

An allonge is NOT to be used unless all the space on the original note, including the margins and the back side of pages, has been used up. This is never the case. Second, an allonge has to be so firmly attached to the original document as to be inseparable. Thus an allonge suddenly being discovered is an impossibility (well impossible if it were legit), yet it seems to happen all the time.

Now the above statements are from Yves Smith, if you do not know who this individual is, I suggest you  research the name.

These comments are not coming from “some loose cannon”, or from some “unemployed housewife”, or from some “deadbeat borrower” or some “tin foil hat conspiracy theorist”.

This is coming from, well I will let you figure it out, just Google Yves Smith, Naked Capitalism…

Be sure to stay tuned for the bombshell we are about to produce on allonges…

Then after that, the fraudulent transfer of title…

You can check out the full article over at Naked Capitalism here…

And you can check out the letter to the Judge below…

I think it is time for a formal introduction…

Shit, meet fan…



Toxic Titles – Letter to Judge Strickland on Mortgage Title Fabrication

5 Responses to “Check Out this Little Gem – GMAC’s Judy Faber, Possible Charges of Document Fabrication to Change Title”
  1. John Vylasek says:

    Do you havde a copy of Judy Fabers stamped signature? She signed, (or stamped) my note.

    Thanks, John Vylasek

    • James Smith says:

      I have a note as Well with her name on it. Would like to see the one the anyone else has. Please send James

      • bob says:

        I have an allonge or a blank piece of paper with two stamps one as her signing as vice president. and a Dana Lantry signing as asst vice president. Do you still want a copy? I could use copies, reply

  2. DJLT says:

    I have an very important question.. can’t seem to find an answer .. If Long Beach mortgage in May of 2006 left an open foreclosure on my land records , and Wamu who is bankrupt, supposenly sold it to DB STRUCTURED PRDOUCTS LLC in Sept 2006 ( mind ya DBSP never showed itself until 2.5 months after the FDIC closed WAMU. Up till Dec 2010 Long Beach has alway been on my land records , it seems after 6 years DBSP suddenly came up with paper work and an assigment which was signed by a Fidelity worked in Fla , but signed as a VP of Deutsche Bank , stating they sold it to Archbay Holdings LLC 2010B , yet , I have notorized papers from my town that show that neither DBS nor Deutsche bank was ever on my land records and like I said theirs an open foreclosure from May 2006 by long Beach. How could it be sold ? Isn’t it the responsablity of the person foreclosing to remove the foreclosure? Please help .

  3. Ron Moss says:

    My knowelege is very limited but one thing I do know is that GMAC was the owner of MortgageIT when they sucked me into their greasy loan which I thought was a five year option to change in five years but in three my payments more than doubled,went from $1,400. to $4,100. As I am now retired it increased to more than my entire income. Carefull planned out and executed fiduciary skill.

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