OCC Responds to Rep. Grayson’s Letter on Systemic Risk Over Foreclosure Fraud

OCC Acting Chief John Walsh responded to Rep. Grayson’s letter on systemic risk surrounding foreclosure fraud.

I rate the response as a total FAIL.

Guess what all, we are still on our own here to fight this fight so let’s bring it as hard and fast as we can.

The Congressman’s original letter is here…

Rep. Grayson Asks the Financial Stability Oversight Council to Require a Special Capital Buffer to Large Banks Due to Foreclosuregate

Posted by Foreclosure Fraud on November 2, 2010 ·

Dear Secretary Geithner and members of the Financial Stability Oversight Council, I’m writing concerning the foreclosure fraud crisis and the resulting potential need for a special capital buffer for large systemically significant institutions. I’m particularly worried about the title insurance market, and attempts to lay off title liability onto large banks without corresponding changes in … Read more

The OCC’s response letter is below…



I sure could use some…


OCC Response to Rep. Grayson’s Letter

15 Responses to “OCC Responds to Rep. Grayson’s Letter on Systemic Risk Over Foreclosure Fraud”
  1. l vent says:


  2. Equity Free says:

    Don’t expect much help from DC, everyone there is bought and paid for . Most of the ones who spoke out were not re-elected, either was Ohio’s AG who was heading up the investigations into the fraud . Wall Streets only worry now is cutting up the new record bonuses for 2010, on the semi QT – 144 BILLION ! Appalling
    Stay in your HOME, Pay only the property taxes, and do not pay your Mortgage . Do unto them , what they have done to humanity, Screw Em …

  3. Officer of the Law says:

    Typical BS “we are looking into the problem if there is one” response. I’m sure that their review will find that everything has been corrected, not that anything serious needed to be corrected. Can you say whitewash?

    Naturally, the OCC and the Administration believe that doing anything to stop bankers from using fraudulent documents to steal homes would have unnecessarily adverse affects on the bankers plan to steal as many homes as possible and hurt the economy, too. Surely, everyone realizes that throwing millions of Americans out into the streets after stealing their homes and life savings and destroying their credit will be just great for the economy, right?

    As I’ve said many times before, the regulators and prosecutors know all about the fraud that has been committed by the big banks over the last decade, and they have done nothing because they have been bribed by the bankers.

    Law enforcement can do very little because we have to get a prosecutor to prosecute, and the prosecutors are on the payroll of the big banks.

    As readers of this blog know, many sheriffs and police chiefs will let bankers break into homes, destroy and steal property, and unlawfully lock homeowners out even when the bank has no foreclosure judgment or eviction notice. They are also on the bankers’ payroll.

    Other sheriffs and police chiefs are not on the bankers’ payroll, but they are going along with the orders that they have received from the prosecutors and regulators which instruct them to tell victims of the bankers’ multitude of frauds that it is a civil matter and should be reported to the regulators. These do nothing order followers are almost as bad as the crooked prosecutors and regulators.

    Fortunately, a few people in law enforcement are trying to put a little heat on the bad guys. The FBI even put out an official warning about fraudulent, predatory and criminal activity a few years ago, but even then the prosecutors didn’t prosecute and the orders came down from above to let the regulators handle the bankers.

    Will voting some incumbents out help? No, most members of both parties are on the bankers’ payroll.

    What can be done to enforce the law if the prosecutors and regulators work for the criminals? Who can do anything? Only action by the people can make a difference.

    The best way to put pressure on bankers is by pulling your money out of the banks and by putting it into credit unions. Do it, tell your contacts to do it, or let the banksters and their government partners in crime steal everything and crash the economy.

  4. Alina says:

    Where do I sign up? This is totally ridiculous. Does the present administration not understand that their betrayal of Main Street is the reason the Democrats lost miserably?

    Mr. President, wake up and smell the coffee – your duty is to the people of this country not to those on Wall Street. Wall Street has already taken the entire world to the brink of disaster, why are they even allowed to walk the streets freely?

  5. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    @ Mike – Two things

    First, I have been litigating for three years and I’ve put up a helluva fight. While there does seem to be general incompetence on the part of plaintiffs counsel they haven’t thrown in the towel. It appears I have at least 2 more years of litigation, and perhaps more. Fight we must but don’t count on the other just giving up.

    Second, is there a source for the documents in the case you mention? I always like to actually READ the successful pleadings, and stories. And this does more than just make me feel good. Often times the successful pleadings in another case are quite instructive.

    • Mike says:

      Stupendous Man–

      Yes. I would need to get permission to “post” what I have, but I am sure that the plaintiff would not mind if I sent the pleadings to you privately. There is a motion for immediate order for preliminary injunction, and a verified petition and complaint. Perhaps I could email them directly to 4closurefraud, and the 4closurefraud gods could email them along to you? How do I go about doing this?

      Also–have you read in re Taylor? It is the most eye-opening case I have read to date! (It is apparently part of what triggered the Dory Goelsby case.) But this is the most revealing thing that I have read about the role of intermediaries, such as LPS and Prommis. You can read for yourself how appalled the (federal) judge seems to be, as well. The case is more than a year old, but is filed as a BK case, so it just hasn’t seemed to make its way into “our” circles quite yet. It is utterly fascinating, and PRICELESS information to have for the litigation of foreclosure cases. (Spoiler alert: opposing counsel….is a computer! 🙂 )


  6. mAGGIE SIMI says:


  7. pparke500 says:

    Well, that answer was total bullshit. Talk about being careful not to look where you might find something. It’s not a problem with assignments only, it is the fraud and felonies committed by banks and the financial liability that is coming. I also thought the validation of MERS is interesting considering that it is totally outside of the Uniform Commercial Code which governs the disposition of notes.

  8. Wayne Fox says:

    Baring a stampede of 500,000 people to the steps of the White House, Treasury in DC or the FDIC, things will go as planned. I so applaud the creators and contributors of this and other websites like it. I will donate, for sure. One thing that is helping to get attention is the effect that these securitized instruments are having on investors. Hopefully some of Wall Street will cry hard enough to force more buy backs. Massive coordinated marches are needed to tilt this beast in our favor. This process is going too slow. Our CONgress and Wall Street powers are taking us for idiots and for the most part they know that the sheer number of educated fighters are limited to take them on. When there is a video of an actual case in foreclosure court it takes 30 mins…when not video recorded it defaults back to the normal 2-3 minutes. CONgress, Wall Street pundits and Bank spokes persons still constantly publicly humiliates the homeowner as dead beats. I’m up for a march!!

  9. Mike says:

    I agree that we have to fight these fights by ourselves for the time being.

    A pro se litigant walked into FEDERAL court in Atlanta week before last and had a FEDERAL JUDGE grant a TRO just hours before the home was scheduled for auction. The court even granted a waiver of the $350 filing fee, based upon the economic circumstances of the litigant.

    McCalla Raymer withdrew the foreclosure in a skinny minute.

    Foreclosure mills aren’t paid enough to actually litigate these cases. Put up enough of a fight to make your home not worth their time.

    In a perfect world, everyone would have a lawyer–but until that time, a pro se defense is better than no defense. IMHO, of course.

    • J A says:

      Mike, you are absolutely correct. Representing yourself pro se, and following the Florida foreclosure statutes to the letter, and adhering to all the deadlines for filings, is the best way to hold off the process if someone can’t afford an attorney. I did this myself 2-1/2 years ago from June 2007 to June 2008. I only gave up the fight at the end because I was terrified of a sheriffs deputy coming to our home and throwing our things out on the lawn. As a single mom, I have to think for myself and my son who was 17-18 at the time. I just got scared and let the final judgment happen. By that time I had found a house to rent and was preparing to move.

      IF ONLY I had known then what I know now I would have won! I should have objected to the final judgment, and if that was ignored, I should have appealed.

      But they wore me down in the end.

      So the lesson is to never let them wear you down. You love your home more than they ever will. The Florida statutes are available online to anyone, and those are the same laws that anyone must adhere to as far as filing timeframes and deadlines, and so forth.

      By the way, thanks again for representing us in DC this past weekend, and if you have some sort of report coming soon, I am eager to read it! And I really meant my offer in another post — I am a freelance boo manuscript editor (and I edit all sorts of manuscripts), and I would gladly help you with rewriting or perfecting any sort of report or other writing you need to produce and don’t have the time to perfect it for presentation, etc.

      J A 🙂

      • J A says:

        I wrote this thinking I was writing to Michael of 4closurefraud, when I said thanks for representing us in DC this past weekend! (I think the MIke posting just above me is a different MIke…not sure). Anyway, keep up the good fight!

  10. yvonne says:

    So much hogwash…there are mortgages from years before the 2007 issues that slipped through the cracks that are now surfacing …in the foreclosure proceedings…showing up that fraud was perpetuated so long ago and no one paid much attention to it until now…there are those who did not renege on their payments that still got foreclosed..there are those who never had a loan for years…fully paid and still foreclosed…
    Are they not seeing that since all this there has been so many acquisitions and mergers between certain banks to complicate the matters more and to cover up more of the fraud?

    Who are these people they are paying so much to do these reveiws or investigations?

  11. This reminds me of when a parent of an outrageously spoiled, undisciplined child repeatedly threatens them with some sort of punishment after they count to (the mystery ultimate number is revealed when the child stops misbehaving on what number). The punishment is never delivered to the child, only to those subjected to his behavior. Instead of COUNTING, why don’t they just say, “Stop!” If they don’t stop then the next that happens is PAIN. Wa-la – no more counting 🙂

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