Flush The AGs: 27 Pages Of Fluff

The Market Ticker – Flush The AGs: 27 Pages Of Fluff

The 27-page fluff-piece is now out where we can see it….

Let’s be blunt: There’s no “there” there.

The entire document is a rehash of what servicers had a legal mandate to do right up front.  Accurately apply payments.  Respond to inquiries.  Operate in good faith.  Use a NPV test for HAMP (was in the HAMP program originally.)  Document the assignment chain before foreclosing.

There’s exactly one substantive change, in that HAMP did not prohibit “dual-track” (that is, foreclosure while attempting modification.)

Essentially every other item in this 27 pages is something that Servicers already had a legal duty to do, either as a fiduciary to the investor or just through the ordinary covenant of operating in good faith (You know, the original standards that all businesses are held to that aren’t actually racketeering outfits and gangsters?  Yes, that.)

There’s no prosecution for all the bad affidavits, despite them being acts of perjury.

Some of this is truly laughable:

You’re kidding, right?  This is a NEW requirement?

Here’s another one:

Servicers have this duty NOW – it is to the investors!  They’re required to act in the best interest of the investor when choosing how to handle a defaulted loan.  They’re agents for the certificate holders and are not permitted to screw people – they’re acting on the behest of, and for the benefit of, the Trust (and therefore the certificateholders!)

Where in the hell are the fraud prosecutions?

There’s another one.  HAMP ALREADY REQUIRES THIS! You make the payments, you’re required to be converted.  Of course the banks are doing that in a whole lot of cases.  Why not?  Well they get to lard on more fees.  But that too is against the rules – so why do we need to restate what’s already required?

Here’s a good one:

Balloons eh?  Remember how I’ve been talking about Balloon modifications in the context of HAMP?  Well, guess what – they’re still there.  These are the very loans that blew up in the 1930s and cost huge numbers of Americans their homes.  Balloon notes are a complete and total screw-job.  The entire purpose of a modification that has a balloon associated with it is to allow the BANK to claim that the loan is “performing” even though it is outrageously underwater or otherwise could not be paid, right up until the inevitable default at the end when the entire loss will wind up occurring.

The only way these notes will not detonate is if we have another housing bubble.  That’s not going to happen.  Treasury’s willingness to permit these in HAMP in the first place as part of the waterfall process and the allowance by the 50 State AGs to permit these to be included in any form of so-called “mitigation” is an absolute financial **** job served upon the homeowner.  These things need to be outlawed as a “mitigation tool” as they are nothing of the sort but are simply a way for banks to claim that they have “good paper” when in fact they do not.  They prevent mobility to follow job availability and will, in the end, utterly destroy any homeowner dumb enough to accept one of these things, no matter how disguised.

This is also a joke:

What’s the ratio?  Notice how it’s missing?  28/36 was the standard for 50 years.  It’s the right standard.  That’s a 36% back end ratio and it results in sustainable payments. Exceed it materially and things go to hell – fast.  “Consider” tells me nothing.

You have to love things like this:

They already do.  When are we going to see enforcement?  The implied covenant of good faith exists in all transactions.

Who wrote this pablum?

AGAIN: Who WROTE this crap?  Unfair or deceptive practices are always illegal.

And then, finally….

Puff-piece bilge.  All of the practices “prohibited” in this document are already a breach of the implied covenant of good faith and fair dealing and subject to prosecution on that basis.

This is what we get from the so-called “50 States” AG investigation?


These Attorneys General are not here to help homeowners.  They’re blowing the servicers under the table and lying to the citizens in their states.  Virtually all of the “shall nots” in this document are already against the law and many of them are already subject to criminal penalty, such as perjury.

If you sit for this, America, you really are stupid.

View with responses

Angry yet? The extended version of I’m mad as Hell and I’m not going to take this anymore speech.

“I’m as mad as hell” speech

See ya in Tally…




21 Responses to “Flush The AGs: 27 Pages Of Fluff”
  1. Pamela says:

    FLUFF is about it in a nut shell and thats about it.Everybody needs to get into the mindset that there is no help for us the home owners unless we do it for ourselves.There is no Knight in Shining Armor thats going to come to our rescue and make the world a better place for any of us.It’s going to take a lot of hard work,some losses and some gains,but nobody is going to do it for us.More importantly we need to keep in perspective that if we don’t take back what is rightfully ours we will be adding to the crime that has been perpetrated against us and allowing our children to see us as a bunch of lay down and die idiotsticks that could’nt unite on a common course of action to not only save ourselves but them as well.

  2. george babcock says:

    So nothing changes. Lawsuits continue, fraud continues, the meltdown of America continues. What a shame.

  3. Grady says:

    The rule of law is dead in America. It is simply used to advance political agendas and ideology, punish those that resist, enrich the masters of our fiat government, and further the interests of those that plan to enslave us.

    The attorney Generals do not have the Constitutional authority to “absolve” criminals of their crimes. They do not have the authority to disregard the law. Anyone of them that does this, must be recalled for violating their oath to defend the Constitution. That includes Pam Bondi. If she signs on to this and the criminals are not held accountable for their crimes, she must be recalled.

    Why are not the defense attorneys in this foreclosure mess, not suggesting their clients file criminal complaints against the robo signers and those that have manufactured false documents and filed them in public records and with the Court? There are statutes that they are violating. Why do we tolerate this and depend on the Attorney Generals to take action?

  4. Tim Bryant says:

    They are all gutless!! I guess all the campaign contributions they were receiving during the investigation went a long way (BTW, Yes is the answer, if you are wondering if that is illegal).

  5. losing my home in florida says:

    SO…………….let me get this what wells fargo just did to me and my family is perfectly ok. they tank the economy my approving subprime mortgages. food , healhtcare, gas ect (clothes, medicines) go so high the rest of us cant afford our fraudulently over appraised home because we have not had a raise in 10 yrs and prices keep climbing. you apply for a hamp loan, they lose the paper work and they get away with this? if you google mortgage modification fraud, lost paper work it will make you sick to see that it is done by every servicer in every state. Now let me ask all of oyu who are trying to save your home like me….. wells farg asked for my finacial statement the 2nd one, feb 14th. i sent it feb 3rd in a fedez envelpope they sent. i kept the tracking number.
    on feb 15 they inquired why have i not sentt the paper work i told them i sent it feb 3rd. the next day feb 16 they generated a letter for rmy hamp denial. and you will laugh why i was denied. “i did not submiy paper work in a timley fashion” . on feb 21 they put me in foreclsoure and sent me to short sale dept. oh ok im just going to give my house away???????? so i stormed in the post office where isent my fedex package from and asked what the trackcing number is for. he told me they will contact the person that signed for the package.
    the fedex supervisor told me they tried calling wells fargo and could not get this person on the phone. so not even our paper work is safe with a fedex tracking number. funny we all understand you I VENT but there is nothing we can do i live in florida what do you want me to do from here, the fraudulently appraised all our house. my home was 260k now worth 106k so can i do. losing my paper work and now foreclosure. they crazy part is the florida lawyers that take these cases for the banks. they know we have been scammed by the banks and now we are getting sued doesnt at all make sense. the lawyer in orlando is Erin Ward 3185 south conway rd suite E orlando florida 32812. she sounds youg. she should not be defending wells fargo they are the ones bankrupting our state but no one sees this?/??

    please if everyone reading this wants to help my family and the state of florida please write this lawyer and tell her the wells fargo a and all the rest of the banks are committing fraud. they are deceptively losing paper work.. they should turn around the foreclosures and have a class action lawsuit now that that they have the names of the florida residents names whom have been defrauded. foreclosures are bankrupting our state.
    she is in Orlando for sakes its just as bad there as here.

    i am so sad and so stressed my family feels it but i just cant seem to understand how WELLS FAR$GO can away with stealing our homes. and we all sit back do nothing about it.
    my great grandparents were in Auschwitz. if it wasn’t for their fighting spirit i would not be here. this is my Holocaust and my home is my concentration camp. now instead of my people being murdered they are stealing our homes. one by one. if i new how to fight this i would. there is not enough hours in the day.please all of you lets help each other. i am o scared.

  6. Cookie says:

    WA state bar online grievance.
    Tom Miller, Washington AG, is leading this travesty.
    If they’re taking $200 bribes to override the law, how can that be ethical?

  7. Anne Tyler says:

    What we have here is a most remarkable endeavor of all these prosecutorial geniuses who have basically put together this reiteration of “before” and now labeled it “after”.

    Are we supposed to be stupid or what? We’re not supposed ot notice it has the same effect as translating it into another language but saying the same thing?

    This is just ridiculous. But it make them look good to the simple-minded, so there you go.

  8. j a says:

    I just watched “Inside Job” — the documentary that just won an Oscar — and if you haven’t seen it, I recommend you get the DVD from Netflix and watch it. Does an excellent job of showing how the deregulation of the banking and financial industry has been given a blessing by every single president from Reagan, to the first Bush, to Clinton, to the infamous Bush II, to Obama.

    This is because the banks literally own our government.

    It is time for us to contact the most powerful criminal defense attorney in the US and file a class action lawsuit against the US federal government on behalf of all of us who have lost our homes to fraudulent foreclosure (most cases) from 2007 (at least) until the present.

    • Anne Tyler says:

      or to paraphrase … we’ve been sold down the river. Been given a bill of goods that amounts to and is good for nothing.

      This is like they must think they are playing trick the rube. They really have to believe we are all idiots without a clue. It must suck to be us?

      • j a says:

        Ann, just to clarify, that is not what I’m saying at all, so your post is not a paraphrase of mine…


        We have only been sold down the river if we give up, or if we continue to think this is a Florida-only issue.

    • l vent says:

      I agree. Michael Moore explained this in Capitalism a Love Story. It is a true Tyrannical Dictatorship that is allowed to STEAL THE ROOF from over their own peoples heads to pay for their own crimes. They are being controlled by the Nazi’s in the Vatican: http://aftermathnews.wordpress.com/2007/10/01/blackwater-knights-of-malta-in-iraq/ All of the refugees and the homeless from around the world should go to Vatican City and demand to know why they did this to us. Malta, too. Th U.N. is on it too, they hold all land in America in fee simple they are also the SMOM/VATICAN/JESUITS. They U.N. declared all humans are capital. Go to youtube and search for 25 facts every American should know. It is quite startling to see what these foreignors have been allowed to do to all of us right under our noses with THE HELP OF SOME VERY TREASONISTAMERICANS. They are all a DIGRACE.

      • l vent says:

        Here is another interesting link for all who are seeking truth behind the Elite Globalist Agenda 21: http://truthin7minutes,com/

      • l vent says:

        The link above will get you there but not directly for some reason. You also may want to yahoo search the words Agenda 21. It is the U.N./NWO/SMOM/JESUIT/BLACK POPE big plans they have had in the works for all of us devised at the Rio Summit. Let’s educate ourselves about this group of elite tyrranists and all of their evil plans for humanity..They are truly hell bent on destruction.

  9. l vent says:

    What a whitewash. The AG’s are also treasonists and are clearly aiding and abetting the Foreigners. They are not Americans in any sense of the word. They ARE NOT “working for the people”, The AG’s are going right along with the ARISTOCRATS and are being used by them to systematically and strategically destroy us. They are a disgrace and should be thrown out on their ears by the American people. They DO NOT CARE ABOUT US, OR AMERICA or it’s future. They are no better, maybe worse than the imposters working for the foreign banksters posing as Americans because the AG’s are in disguise, imposters who lied about WHO THEY WORK FOR.

  10. Marcy says:

    I was thinking the very same things as I read this!

    Services should not be allowed to make loan modes at all! Instead they should be forced to pay for an
    independent program that program that will do them.

    Banks and Servicer are masters at finding loopholes as long as there is a conflict of interest.

    The whole NPV part needs deleting. People that had equity, put down a good downpayment or
    invested in their home yet are either underwater or can not make big payments should not have a home they lived in for years be taken from them and sold for for less than market but still good return for investor,
    while the borrower has to pay the legal fees .

    If the NPV is negative the servicer should pay the difference or buy back the loan.
    People should not be punished because their loan was sold to a non GSE investor.

  11. John R says:

    I’ve been actively fighting for 3 years… and they sold my house last week. Post dated assignment, robo signers and all the doc’s used to transfer the note from any one entity to another… all were unsigned. 3 years of research and writing… just a judge that didn’t wanna read I guess. just sucks. I spent the day cleaning out a barn I’m moving into when I’m finally evicted. That sucks too.

    But I fought. And I ain’t stopping now!

    Win, lose or draw… I fought. And it feels good to have fought. WHAT A FIGHT!

    time for the Appellate Court!

    So I say the hell with the sold out AG’s……. just keep fighting and costing em money… if that’s the only language they know… let’s kill em with kindness…. and PAPER!

  12. tremendous view says:

    Im enjoying watching the show:)

    • John Ryskamp says:

      Hi Jim and Scott,

      I think there is much more to these settlement terms than you wrote about. You
      definitely should write another article about the Constitutional implications of
      the 27-page “Settlement Terms.”

      I say this because, regardless of whether there is any “agreement” in the
      future with the servicers, the document itself reveals the policy toward housing
      of both the United States Government and the States. I think that if you
      examine the terms you will see that it concedes what has long been sought by
      housing advocates: a right to housing.

      In particular, the United States has long maintained (Geithner just restated it
      the other day) that there is no RIGHT to a mortgage modification. There is a
      reason the government keeps taking this line, even though it has seemed that it
      is encouraging mortgage modifications.

      It has to do with the Constitution. Housing enjoys only “minimum scrutiny”
      under Lindsey v. Normet. That is, there are virtually no individually
      enforceable rights in housing, and the political system has nearly absolute
      control over housing. Housing policy need only be “rationally related to a
      legitimate government purpose.” One of the reasons the Court did not grant
      housing a higher level of scrutiny in that case was its concern over the idea
      “that the Constitution expressly protects against confiscation of private
      property or the income therefrom.” Mandated reductions of mortgage principal
      are exactly that.

      The concern of the political system is that if a higher level of scrutiny is
      granted for housing–if housing is granted, for example, intermediate scrutiny,
      which says that an eviction would have to “substantially advance an important
      government purpose”–then virtually all power over housing (i.e., the money
      related to it) would leave the political system and be placed in the hands of
      individuals according to court-mandated standards.

      However, it has become increasingly clear that U.S. ownership interests in
      financial institutions mean that these institutions are acting as the government
      in HAMP modifications. Thus, the HAMP procedures are actually requirements
      under the Due Process Clause of the Fifth Amendment. Under the servicing
      agreements between the servicers and financial institutions/the U.S., there is a
      third party beneficiary Federal Common Law right to a HAMP modification. (See
      in particular, the Judge’s reasoning in the Southern District of California
      Marques v. Wells Fargo case.)

      The U.S. has fought a losing battle stating that HAMP does not create a housing
      right, even though a spate of poorly/casually reasoned cases seem to suggest
      otherwise–and by the way this is a right to a HAMP modification which in FACT
      reduces the risk of housing loss, not necessarily the government’s 31% debt to
      income level.

      Of course, what the U.S. has feared is that any increased right in housing for
      homeowners will be instantly extended to renters under equal protection.

      But now we see by the “Terms” (generated by, among others, the Department of
      Justice), that the Government DOES believe housing enjoys a higher level of
      scrutiny, and that there is indeed an individually enforceable right to housing.

      Look through the document to see how often the word “shall” is used. And it is
      used to require modifications. Also, notice that the new “review” process must
      be by an “independent” entity. This means quasi-judicial (and soon to be
      official judicial) review in order to see that the right is enforced.

      So really, the “Terms” are the surrender of the United States and the States to
      the proposition that HAMP creates an individually enforceable right to housing.

      That is the importance of the “Terms” and you should let your readers know that.

      John Ryskamp

    • l vent says:

      What show idiot?

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