WSJ | Deutsche Bank Unit Stuffed Mortgage Reviews in a Closet. Literally

If you haven’t taken the time to read the lawsuit, United State of America vs Deutsche Bank and Mortgageit, Inc, I suggest you do. It is actually an easy read for being a legal document.

I was talking about some of it with Lisa yesterday and was going to do a post about this particular section that is below but since the WSJ already has it up you can check it out from there…

It’s a good thing thorough investigations were done by the OCC, OTC, FDIC and the FED before they handed out the consent orders to the banks /sarcasm…

~

Deutsche Bank Unit Stuffed Mortgage Reviews in a Closet. Literally

According to the lawsuit, Deutsche Bank’s MortgageIT unit repeatedly lied to HUD about the quality of its mortgages. And of the more than 39,000 mortgages that Mortgage IT endorsed for HUD’s mortgage-insurance program, FHA, about one third of them defaulted. The government says that when an outside auditor showed MortgageIT its findings about serious problems in its mortgages, the auditor’s findings were literally shoved in a closet:

government filings

And the FRAUDCLOSURES continue…

~

4closureFraud.org

Comments
11 Responses to “WSJ | Deutsche Bank Unit Stuffed Mortgage Reviews in a Closet. Literally”
  1. l vent says:

    Looks like an episode of Hoarders. A sickness that becomes symptomatic of greed.

  2. l vent says:

    I have found there is no differentiating one bank/mortgage broker/title co./plaintiff attorney/mortgage servicer/ratings agency/home builder/real estate/regulators from one another.. They are all foreign owned and operated and they all work for the IMF, foreign owned and operated FANNIE/FREDDIE. They are hiding behind the scenes of this FINANCIAL TERRORISM as is the FED and the WALL STREET CRIME SYNDICATE. DEATH TO THE FOREIGN MULTINATIONAL TYRANNY!! CNBC did a report this morning about the SEC and are posed the serious question, Is the SEC, covering up and hiding financial criminals and their criminal institutions.? They next question CNBC posed was, Could it be because the SEC is covering up and hiding their own negligence and therefore their own embarassment? Looks like maybe CNBC is calling out the SEC for some criminal treason and corruption?? Next question posed, should have been, Who are they really owned and operated by? and then after finding out the TRUTH, it is NOT the U.S. Government, like most people think. Would you rat on yourself? This whole Ponzi Scheme Swindle and Heist could have only happened because of MASSIVE CORRUPTION and TREASON from the INSIDE, just like 9/11. ..

  3. l vent says:

    I have found evidence of HUD fraud in my own paperwork. Blaming the victim is becoming harder and harder for them to get away with. None of us could have known this type of MASSIVE PERNICIOUS MORTGAGE FRAUD could have been perped by an FDIC insured bank. I keep finding more and more fraud. came across a letter from the pretender lender FAILED BANK that did my re-fi that states OOPS, looks like someone forget to sign this here Truth and Lending agreement.. The letter had the words highligted in orange higlighter, NO NEED TO SIGN, UNLESS YOU WANT TO RESCIND. Hmmmm..I also found they cross collateralized my home without with my signature in order for us to buy commercial property. They told me and my husband they were not going to use the home as collateral. Then they did it anyway, without my signature, and without me or him knowing it. . That PROOF is still on the title, though that lien was paid off by “another” bank after I refied and before it went into MERS. There was clearly not enough equity in the home for them to do that. I found the truth is in my house recordings at the CROD last fall, but now that proof has mysteriousy dissapeared into thin air. Good thing I printed that out when I did. They are all scum.

  4. J A says:

    I hope Deutsche Bank is brought down completely by this (and then they all need to be). When I was going through foreclosure in 2008 (different bank), and I was keeping a close watch on all the foreclosures on the Volusia County docket, I saw page after page after page of foreclosures initiated by Deutsche Bank.

  5. Mike says:

    Hmmmm….this plot sounds familiar…..

  6. Glenda says:

    More and more lies….I say DON’T GIVE UP!! You need to put in a Qualified Written Request (I have a copy I can send you) and complain to the Comptroller of Currency. Add all the notes, the details of how you tried to get help and they refuse. Attach the lawsuits and allegations that now Wells Fargo has against them. Below is some of the comments made by the OCC. Now DEMAND in this complaint letter that you want a “REFORMED” agreement, not a modification!!! Meaning, a loan that is at current market value with a fixed rate. ASK you just might receive!!! It has been working for some…just an FYI!!!!

    FOR IMMEDIATE RELEASE
    April 13, 2011
    Contact: Robert Garsson
    (202) 874-5770
    OCC Takes Enforcement Action Against Eight Servicers for Unsafe and Unsound
    Foreclosure Practices
    WASHINGTON — The Office of the Comptroller of the Currency today announced formal enforcement actions against eight national bank mortgage servicers and two third-party servicer providers for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing.
    The eight servicers are Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife Bank, PNC, U.S. Bank, and Wells Fargo. The two service providers are Lender Processing Services (LPS) and its subsidiaries DocX, LLC, and LPD Default Solutions, Inc.; and MERSCORP and its wholly owned subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS).
    “These comprehensive enforcement actions, coordinated among the federal banking regulators, require major reforms in mortgage servicing operations,” said acting Comptroller of the Currency John Walsh. “These reforms will not only fix the problems we found in foreclosure processing, but will also correct failures in governance and the loan modification process and address financial harm to borrowers. Our enforcement actions are intended to fix what is broken, identify and compensate borrowers who suffered financial harm, and ensure a fair and orderly mortgage servicing process going forward.”
    The enforcement actions require the servicers to promptly correct deficiencies in residential mortgage loan servicing and foreclosure practices that examiners identified in reviews conducted during the fourth quarter of 2010. The actions require the servicers to make significant improvements in practices for residential mortgage loan servicing and foreclosure processing, including communications with borrowers and dual-tracking, which occurs when servicers continue to pursue foreclosure during the loan modification process. The enforcement actions require the servicers to ensure that foreclosures are not pursued once a mortgage has been approved for modification and to establish a single point of contact for borrowers throughout the loan modification and foreclosure processes. In addition, the actions require servicers to establish robust oversight and controls pertaining to their third-party vendors, including outside legal counsel, that provide default management or foreclosure services.
    The OCC’s actions also require each servicer to engage an independent firm to conduct a multi-faceted review of foreclosure actions between January 1, 2009, and December 31, 2010. This requirement includes a comprehensive “look back” to assess whether foreclosures complied with federal and state laws, whether foreclosures occurred when grounds for foreclosure were not present, such as when loans were performing, and whether any errors, misrepresentations or other deficiencies resulted in financial injury to borrowers. The actions also require each servicer to establish a process for borrowers who believe they have been financially harmed by such deficiencies to make submissions to be considered for remediation. Each servicer must also submit a plan to remediate all financial injury to borrowers caused by any errors, misrepresentations, or other deficiencies identified in the independent consultant’s findings.
    The OCC based its enforcement actions on the findings of examinations conducted as part of the interagency horizontal reviews undertaken by the federal banking regulators in the fourth quarter of 2010. Examinations of these eight national bank servicers identified significant weaknesses in mortgage servicing and foreclosure governance that resulted in unsafe and unsound practices. The scope and degree of these practices differed among the servicers; however, based on the sample of files reviewed by OCC examiners, borrowers in the sample were seriously delinquent at the time of foreclosures and servicers held the notes and documents required to foreclose. A summary of the findings of the interagency reviews is available in the Interagency Review of Foreclosure Policies and Practices, which was produced by the OCC, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision.
    The enforcement actions do not preclude determinations regarding assessment of civil money penalties, which the OCC is holding in abeyance.

  7. Jason Werner says:

    A closet? Smart move, we put our reviews in the bathroom for our employees to wipe their butts.

    Signed,
    All the Other Big Banks

  8. Too big to fail and too big to regulate.

    • Glenda says:

      Here is the worst part of all of this is copied and pasted below:

      From 2007 through early 2009, Robert Khuzami, the current head of enforcement at the Securities and Exchange Commission, served as Deutsche’s lawyer overseeing regulatory matters and investigations. He was not named in the Justice Department’s suit.

      NOW WHY has this not been presented as how “CORRUPT” this really is!!!! Do we ever learn our lessons from past corruptions…he is the Current Head of Enforcement at the Securities Exchange???? WOW!!!

      • more and more lies says:

        the fraud needs to stop. wells fargo has done the same thing to me. took my file that was under review and moved to a closet. and then they took a financial package i sent by fed ex and put it ina closet. to this day 8 months later i am still not in a mod. and do not wish to deal with wells fargo out side the ocurt, not that the court will help.

      • anthony says:

        At David Stern the files were stuffed in abandoned desks thats why most of the paper work is missing and he is trying to be smarrt by dumping the files and abandoning them to the courts so he doesn’t have to be accountable

Leave a Reply