Foreclosuregate – SEC Sends More Subpoenas in Mortgage Probe

SEC sends more subpoenas in mortgage probe-sources

* U.S. SEC expands mortgage foreclosure probe-sources

* New round of subpoenas sent to Wall St banks-sources

* SEC taking harder look at securitization process-sources

NEW YORK/WASHINGTON, Dec 17 (Reuters) – U.S. regulators have opened a new line of inquiry in their mortgage foreclosure probe and are asking big Wall Street banks about the beginning stages of mortgage securitization, two sources familiar with the probe said.

The Securities and Exchange Commission launched the new phase of its investigation by sending out a fresh round of subpoenas last week to big banks like Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N) and Wells Fargo & Co (WFC.N), the sources said.

The subpoenas focus on the earliest stage of the mortgage securitization process, said the sources, who requested anonymity because the probe is not public.

The sources said the SEC is asking for information about the role of so-called “master servicers” — specialized firms that oversee the selection and maintenance of the large pool of home loans that go into every mortgage-backed bond.

In many cases, Wall Street banks that underwrite mortgage-backed securities either own their own master servicing firms or are closely aligned with one.

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Comments
9 Responses to “Foreclosuregate – SEC Sends More Subpoenas in Mortgage Probe”
  1. Mimirayo says:

    If they want the real information how about a call out to homeowners? I researched my loan with the SEC filing and I can definitely piont out how they fraudulently represented my loan to the investors. If there is one loan in the package with fraud, there’s bound to be more! This way they can narrow the mine field of “packages ” , and maybe get some real action.
    Sad thing is though that the investors will be reimbursed, fines will be paid, but the homeowner will still be stuck with a crappy loan that will never get modified, and banks will still find a way to make a buck!

  2. l vent says:

    I love this country.

  3. l vent says:

    I think Freedbird should be our new national anthem.

  4. A ‘probe’ now? In 2003 in the AR’s Series…in the prospectus…Washington Mutual proudly stated they were the Master Server, the Depositor, and the Custodian and kept the notes..not stamped. Never assigned..to cut adminiatration costs. . Did not give the notes to the trust…someone might steal them. That is what it said. The prospectus said the PSA recorded with SEC listed all mortgages with complete information in the Schedule Exhibit D…recorded with SEC…Exhibit D..” Deliberately omitted “. Seven or eight years later a ‘probe’ ? The SEC must be full of recorded crap , lies and fraud. And the probe is not public? HMMMM Behind closed doors again ? I can’t speak for other banks, but Washington Mutual did business on Fraud Street.

  5. Secret Squirrel says:

    Sending subpoenas sounds like the SEC is actually trying to do “something”. Since they are another notoriously limp wristed agency, full of political fear and incompetence,I wouldn’t think anything more will come of it, perhaps with a few wrist slaps, followed by more news stories about porn downloads at their HQ. The expectation remains that all the fraud will be swept under the rug early next year, Timmy Geithner firmly believes in torturing homeowners out of their homes to “correct” the housing market. ( Remember kids, DC is at war with you too! )

  6. John R. says:

    Another great example of “All hail the Mighty Dollar!” Seems our govt. is going to bend over backwards to satisfy the “Investors” but even with millions of people screaming in the streets, they turn a cold eye on the “sheeple”.

    I wonder what ever happened to the concept of “By the PEOPLE and FOR the PEOPLE”.

    I wonder what happened to the concept of money as a “tool” of mankind instead of the “money is the RULER of mankind” philosophy that it seems to be today.

    I wonder what it’s finally gonna take for the judiciary to do the job that “We the people” pay it “money” to do.

    Or is it now against the law to wonder too?

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