KABOOM – Fidelity National Has Told Lenders to Halt Foreclosures, and to Stop Sales

I think this might just be the straw…

This just in from Zero Hedge

Massive Mortgage Mess Update: Title Companies Stop Insuring Foreclosed Properties

Today’s latest chapter in what is now known as the new 3M: the Massive Mortgage Mess, is that Fidelity National has told lenders to halt foreclosures, and to stop sales of bank owned properties. The reason, and this should be no surprise to anyone, is “possible document flaws.” Fidelity is merely the next of, well, all. And while the WaPo reports that the John Walsh, acting director of the OCC has reached out to seven lenders including Chase, Bank of America, Wells Fargo, Citi, PNC Bank, U.S. Bank and HSBC, to review their foreclosure processes in light of the Ally and JPM Chase situations, the news of the day comes from the NYT that Old Republic National Title has stopped insuring title to Ally-foreclosed properties “until further notice.” And once the insurers lost faith in the product they are supposed to have 100% confidence in it is game over: virtually no foreclosure transactions will take place going forward.

Rest here..

More to come as I get updates…



10 Responses to “KABOOM – Fidelity National Has Told Lenders to Halt Foreclosures, and to Stop Sales”
  1. FKA says:

    Fidelity National did our Initial Judicial Report. LSI changed the mail to address on our taxes…they are an affiliate…also an affiliate of LPS. They are all bottom feeders and KARMA is a Bitch. I caught them all red handed 🙂 Their BANK is on my short list! Pretty dissapointing that The BEST MINDS in the WORLD worked this out…LOL …it wasn’t so hard to figure out…LOL
    Feeling down today…

  2. leapfrog says:

    B of A has hopped on the 23 state bandwagon – just saw on associated press. YAY for ALL of us. YAY!

  3. Michael says:

    Banks, let me be the first to introduce you to FL Stat. 772.11. Down here we refer to it as our Civil Theft statue. I think it’s pretty unusual.

    I’ll summarize: statutory treble damages for a wrongfully taking an asset. Three times the value of the asset. Plus attorney fees, of course, which can be contingent. Best of luck trying to get even our legislature to change it to bail you out for your fraud; the bailouts are over [any politician that even thinks about it — figure out where the money will be soon enough and act appropriately; they’re broke].

    Glad you signed and swore about the value of all those homes to pick up those deficiency judgments.

    Read it yourself, then have a good weekend. We will. Don’t worry though, our servers don’t sleep or rest. They’ll continue hauling in data that proves the cases at throughput higher than ever. Isn’t it fun to be on the opposite end of a massive piece of complex software designed for your financial doom? Almost like you’ve been subjecting your borrowers to for years (OK, except that ours is legal):


  4. Regarding the spreading delay of foreclosure proceedings due to widespread use of spurious documentation to authenticate debt, everyone is overlooking the 800 pound gorilla in the room. What about people who have already lost their homes in proceedings which relied upon such false documentation? Each homeowner can sue the lender who foreclosed for monetary damages for “wrongful foreclosure” as a result of fraud and deceit perpetrated upon the court and the homeowner. The potential liability in class action lawsuits runs in the billions and billions of dollars.
    Most of the news reports only deal with “authentication fraud”, that is that the person signing the affidavit falsely attested to the accuracy of the amount owed while never having reviewed the borrower’s financial records. Soon the companion problem of assignment fraud will be reported. Assignment fraud occurs where spurious documents have been filed as evidence of the chain or title of the mortgage note from the originator of the loan to its current holder. Assignment fraud is widespread because when a loan was sold to a mortgage backed securities trust, the transfer was accomplished electronically through the use of digitized management information technology in a paperless transaction. In short, the required paperwork to convey the mortgage was never produced and never used. This led to the widespread fabrication of after-the-fact impostor documents. More liability for the banks for wrongful foreclosure!
    “Oh what a complicated web we weave, when first we practice to deceive.”

  5. Michael says:

    What’s the difference between that REO house and one voluntarily sold?

    Well … buyers own the one voluntarily sold. The REO one arguably comes with joint and several liability that’s likely to financially wipe you out worse than the prior occupant, who will be moving back in soon.

    Title insurance companies: don’t believe a word the banks and mills tell you. This mess is way, way worse than they’ll report and we’ll be happy to definitively show that. You’re already in a world of hurt: no more title insurance on REO properties (and legislators: absolutely no bailout for any of them!). Vultures: make sure whoever sells you title has deep, deep pockets.

  6. Nat-AHA says:

    Fidelity National issued a statement today that was about the exact opposite of this…of course I’m sure they’d say whatever they could to stop their stock from plummeting, but there’s no quote or citation for that bit about Fidelity at all. I’m not sure title insurers would really have that power anyway…?

  7. FKA says:

    Yeah for the Kaboom! The house of cards is falling…I hope no one halts my foreclosure…been in limbo for years…want to move…kids are grown.
    Can’t sell or refinance because they destroyed the Title to my house…no one will insure it. Trying to get quiet title in court during foreclosure litigation…if we ever get around to litigating…the news is always so good and bad at the same time! Thanks Michael..
    BTW…I live in Ohio and u scooped me with the Secretary of State Press release yesterday…Hat
    Tip To You Sir!

  8. foreseeyer says:

    Fidelity National Title, or Fidelity National foreclosure services, or is that LPS? Doc X? Who the eff are these guys?

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