Bank Of America Faces New Probe; New York Attorney General Launches Investigation Into Mortgage Securitization


Bank Of America Faces New Probe; New York Attorney General Launches Investigation Into Mortgage Securitization

New York Attorney General Eric Schneiderman has targeted Bank of America, the biggest U.S. bank by assets, in a new probe that questions the validity of potentially thousands of mortgage securities and their associated foreclosures, two people familiar with the matter said.

The investigation, which began quietly in recent weeks, is part of a larger inquiry that is scrutinizing whether mortgage companies and Wall Street firms took the necessary steps under New York state law when creating mortgage-backed securities, these people said, who requested anonymity because they weren’t authorized to speak publicly about the probe.

Court testimony and independent studies have raised questions over whether banks and other financial firms passed along the required documents to trusts, the independent entities that oversee securities for investors. In some cases where trusts moved to seize borrowers’ homes, judges have determined the trusts lacked legal standing due to faulty documentation.

Check out the rest here…


18 Responses to “Bank Of America Faces New Probe; New York Attorney General Launches Investigation Into Mortgage Securitization”
  1. Ron Moss says:

    Mike; Do you remember which case it was that introduced the new fact that securitizationtaxing waived the standing to foreclose.

  2. One Observer says:

    Regards your articles in, I wanted to share with you a snippet of my saga in the hopes to raise visibility into this fraud issue that would not only assist my family (me and my child) but as you well know, milliions of others either as investors or as home owners. Thank you for all the great information on your blog, it’s outstanding.

    Context (This part is just for context, soap opera-like but very true)
    Husband and I are estranged in 2003, he wants to refinance in early 2004. Eventually leaves in Dec 2005. After months in 2006 of disagreeing to a refi, I agree to it. He signs the Note and Mortgage but the Deed stays in both our names (he pursued me to transfer but I didn’t, thank God). Turns out my forged signature appears on the Mortgage –but not the Note. This ‘secured’ the Note. Since I made more money than him, I can see why Merrill Lynch Credit Corp–the underwriter–would want to forge my signature on the asset.

    In April 2006 he stops paying mortgage. Then the divorce action starts, blah, blah, blah,

    The servicer PHH through its Foreclosure Attorneys–Shapiro & Dicaro 9the foreclosure mill)–, files an Order of Reference in late 2006, a few months after the mortgage default as of April 1, 2006. The Judge dismisses it due to Plaintiff not providing the ‘Trustee Agreement’ as evidence they have any claims. Plaintiff files for an Appeal but suddenly withdraws it.

    Important Stuff
    Shapiro & Dicaro, attorneys for servicer PHH file another foreclosure complaint in April 2008. The mortgage assignment is executed by Marc J. Hinkle, an employee of PHH acting as ‘Attorney In Fact’. The recipient of this assignment is Wels Fargo Bank, N.A., as Trustee. (Trustee of what? It didn’t say)
    Shapiro withdraws the foreclosure complaint in June 2008. This allowed them to ‘perfect’ the assignment, however, it was amost two years after the Trust’s Pooing & Servicing Agreement allowed it AND it was already a non-performing loan–against the Prospectus’ terms.

    Months later I find out there’s another forecosure complaint filed by Shapiro as attorneys for a Trust I didn;t know who it was a Trustee for. This was filed July 29, 2008. Several months after filing, I came across these documents through the divorce case. It showed a mortgage assignment to: MERRIL LYNCH MORTGAGE INVESTORS, INC TRUST SERIES MLCC 2004-G PASS-THROUGH CERTIFICATES. The person assigning it had been the same Marc J. Hinkle, again as Attorney In Fact. So here, an agent for an entity that hasn’t yet taken ownership of any property to claim, acts as an agent of that property. Interesting.

    This is was in June 2008. I searched and looked at the Pooling & Servicing Agreement for the above mentioned Trust/certs. The closing date of this transaction was ‘ On or about December 29, 2004’, by which time the ‘asset.backing’ mortgages had to be transferred into the Trust.

    So the natural questions are:

    1-Why was this mortgage assigned to the Trust almost 4.5 years after the Trust’s own Pooling and Servicing Agreement closing date?
    2-Why was this non-performing asset transferred into a Trust that sold bonds on the premise (according to the prospectus) of being guaranteed by performing loans?
    3-Why did Merrilll sell the bonds based on the tranche risk profile of the underlying loan pool guarantees when even if by 1 loan, this product was fraudulent?
    4- Why didn’t Merrill or the Trustee Wells Fargo report this to investors? (investor listing below)

    The associated tranches and CUSIPS are:
    A-1……………….. $306,568,000 (2) Senior 59020U NZ4
    A-2……………….. $163,396,000 (2) Senior 59020U PA7
    A-R……………….. $ 100 (3) Residual/Senior 59020U PC3
    X-A……………… (4) (4) Notional/Senior 59020U PB5
    B-1……………… $ 5,092,000 (2) Subordinate 59020U PD1
    B-2…………… $ 3,880,000 (2) Subordinate 59020U PE9
    B-3………………. $ 2,182,000 (2) Subordinate 59020U PF6

    A nsampling of the associated investors of one or more of these tranches of this specific example include: (from public information and for the years 2007-2010):
    –Wiliam and Melinda Gates Foundation
    –Massachusetts Mutual variable Annuity Separate Account I
    –CM Variable Life
    –MAIDEN LANE II Portfolio (not sure if NY FRB sold it yet as it is a non-agency RMBS and the NY FRB stalled sales of Maiden in July 2011)
    –AIG (back in time when they bailed out Bear Stearns, they held one of these tranches)

    The NY foreclosure judges don’t comprehend the esoteric world of securitization–they are elected officials. 🙂 They only go by legal procedure, and even in the face of blatant FRAUD, these Judges gloss over issues of Standing. In layman’s and contemporary folklore: “Dude, if you are not the true owner of this asset, you can’t get the face value of this asset—for the Nth time” (ie the re-securitization process, the bailout and TARP, etc.).

    Your commentary on this simple yet powerful humble example of how this foreclosure mess stil needs a lot more transparency than what the FRB claims it has would be so, so helpful to millions of hard working people.


  3. l vent says:

    Thank You AG Schneiderman for this and to the HONEST New York judge for the Appellate court ruling against MERS. I am meeting today with someone from my State AG’s office about the mortgage fraud in my docs. I went to my CROD office yesterday and I got a copy of a release of Mortgage to myself and my husband from MERS in 07. On the second page of the Release it is NOT signed by a notary public by the name of SHAWN LYERLY and there are three stamps which are womans dresses on hangers, You Just can’t make this stuff up. The pretender lender is trying to fraudclose by joining us as the defendants to foreclose on MERS but there is no record of my loan being assigned back to MERS. In fact it was never, ever actually assgned to MERS. Fraud on top of fraud.

  4. Fury says:

    AG schneiderman!, go get the crooks who caused this misery and destroyed our lives.
    thank you!

  5. Elizabeth says:

    As much as this article highlights the state of the current situation with the infamous boa,
    what is the next STEP that we (as consumers) or you (as reporter) or them (as banks, AG’s, Government, judges, committees, OCC, investors, and such) should/must do
    not only to stop this practice from being accepted as NORMAL BUSINESS,
    but prevent such happenings in the future?

    All this:
    a) being now widely accepted as legal,
    b) discussed on all levels and in every regulatory assembly like a regular thing on the agenda,
    c) and going on for too long all across US unpunished,
    makes us think that the world has already “changed its poles” and is now in up-side-down position.

    Who should not do what?
    Who is the new Authority and who this Authority works for?
    What are the new TOOLs and TERMs of righting “the unrightable wrong”?

    We all have to be in it, this is our own American QUEST.
    Let’s continue not only comment but help each other the best we can.
    We will sure WIN because FAIRNESS always wins.
    Just some more pushing.
    And then…?


    • TheHutMaster says:

      Hey LIZ,

      There is no class that we take. This is a river that those of us spend countless hours to keep up with.

      I do strongly agree, WE CAN and SHOULD have not only not let this happen but,,,,, It is an easy fix. Get Oblabla on the phone with me and its fixed.

      “Fight The Good Fight”

  6. l vent says:

    Well it is about damned time someone has some guts to stand up for what is right. The U.S. Government has been letting the Federal Government run wild for long enough. Death to the tyranny!!!!.

  7. Sorry to upset anyone, the banks win, end of story

    • woodknot says:

      @anntrummerttraci-you are wrong !
      just read several new articles on BOA and others such as Goldman
      Check out latest market reports June 13, 2011 (4:30pm)Wall Street Journal, Bloomberg most all of them have BOA Stories with titles such as;
      BOA 27 Billion in mortgage putbacks & losses
      BOA 7 Billion losses
      BOA “Significantly Hinders Federal Investigation”
      BOA -“too big will be broken up by 2013”
      “At Bank of America, Even Good News is Bad News” Wall Street Journal
      Check for youself anntrummerttraci-go to any stock ticker or market news

    • l vent says:

      I think you may work for Fannie and Freddie or maybe the IMF. I think the UNDENIABLE truth will set us free and then, WE THE PEOPLE WIN. END OF STORY. THE HOMES ARE PAID FOR FREE AND CLEAR BECA– USE OF THE PONZI SCHEME AND THEY ARE UNSECURED DEBTS. SORRY TO BURST YOUR BUBBLE.

    • housemanrob says:

      Why do we resond to low paid flunkies like this clown? Everybody who resides on this blog is intelligent and informed. Suddenly, some idiot like anntruwho? arrives with the mind of a 5 year old, not even creative enough to convince anybody, well……….why bother with such carpetbaggers. Ignore them and they go away. Evil can only receive power from us. Let’s not feed them!

  8. woodknot says:

    aahhhhh the more investigations into BOA the merrier I am.
    I have to keep praying all these investigations and legal suits will lead to FAIRNESS FOR HOMEOWNERS.
    Bye Bye BOA your end is in sight ! the party is over.

    • woodknot says:

      forgot to say THANK YOU NEW YORK AG
      and to Florida AG BONDI -thanks for NOTHING !

    • HELL NO - No More Bail-Outs (no more BO or BS) says:

      @ woodknot

      I believe in both prayer and ACTION.

      After reading an article in January that said AG Schneiderman was investigating the foreclosure mess, I went onto the NY AG’s website, found the link to make a report and I proceeded to point out that they needed to look at the loans in such trusts as CWABS 2005-10.

      I then gave a VERY DETAILED account as to WHY they needed to be investigating HOW CountryWide could have EVER had grounds to assert that they could put loans into such trusts when the loans were written in the name of a NON-EXISTENT corporation. I cited the tax evasion that this represented and the rip-off of the large pension fund-iinvestors that lost big-time in NY.

      I then explained that the loan I have names a lender that is described on the Deed as being a New York Corporation but which did not exist until a group unrelated to CountryWide registered the corporation 3 years after my loan was originated. That corporation never authorized CountryWide or anyone else to later assign my loan into the CLOSED trust.

      The loan was originated in 2005.. Supposedly it was involved in the CWABS 2005-10 trust that closed in December of 2005. Supposedly the loan was in default by 5/2009.

      Litton Loan Servicing and LPS generated a ‘MERS-assignment’ of that mortgage in 2010 yet other information showed the loan supposedly already in the trust well before that date.

      Now if you have read ANYTHING about the principle of a ‘nominee’, you should then know that the company or entity that you are acting as the nominee of must exist at the time of the action. In this case, even prior to the action of Littion/LPS, there is clear evidence that MERS could NEVER be the LEGAL nominee of that LENDER name on the Deed and Note. The corporation needed to exist at the time the loan was signed. It did NOT.

      This information should make things a bit dicey for BOA since CountryWide wrote a significant number of loans where they identified the ‘LENDER’ as this BOGUS corporation.

      If you have a loan that was initially serviced by CountryWide but the ‘LENDER’ was named as “AMERICA’S WHOLESALE LENDER” and the lender was further identified as a New York Corporation, look closely to verify that there is NO reference to CountryWide as being in a d/b/a role stated on the Deed or Note.

      If the lender named is just purely “America’s Wholesale Lender” and your mortgage is supposedly in one of the ‘trusts’ then go to the NY AG’s website and report the fact that your loan was illegally securitized.

      Since the ‘AWL Corp’ never existed, there is no legal way to transfer that loan even to CountryWIde itself. That would have been the first step needed in the chain required by the PSA.

      Another case has already found that the ‘AWL Corporation’ as LENDER did not give permission to MERS to transfer the loans to CountryWIde. All the applicable PSAs show that CountryWide was to do the first assignee in the key chain of transfers. Any ‘AWL Corp’ loan would have needed that prior transfer from AWL to CountryWIde to be valid. It can’t be. Therefore the Trusts where these AWL Corp loans are listed should come under fire.

      If you have one of these loans, help add to the bonfire by reporting it to the NY AG.Let’s get the word out and add to his kindling!

      • woodknot says:

        @Hell No More Bail Outs-thanks for your info.
        I have been searching the SEC & Edgar, what a tangled web they weave !
        Right here on this site-somewhere ?? I had read a case transcript regarding this.
        I clicked a link and read the exhibits and I SAW MY LOAN NUMBER-unfortunately I did not
        print it or write it down and cannot locate it again to send to my Attorney.
        Yes, I constantly pray and also take ACTION every time I can forward a link or email to my local newspaper Editors, County Clerk, State & US Reps., SEC, President, State Ag Bondi (waste of time)even Facebook.
        Without this website and folks like you I would not really know or understand what is going on.
        Now back to locating that case file on this website because the SEC & Edgar is no help at all.

      • woodknot says:

        @Hell No-gotta thank you again…and found the case I was searching for..Walnut Place LLC v. Countrywide-New York Supreme Court-Manhattan. But I cannot find that Walnut Suit /story here again on this site where I saw the exhibit list that displayed my account number & mortgage loan amount.
        I tried SEC/EDGAR search found the prospectus but not the Exhibit (which is a numerical Mortgage Account List). Then I went to NY Supreme Court and found the case.
        SEC & Edgar are too confusing for me…please help
        CWALT_CWABS so many ……It has Certificates listed by class 1-A-2 or 4-A-2 of CWALT 2006 or
        0A10-and about 15 others !
        My ASSIGNMENT of Mortgage says; MERS , As Nominee FOR AMERICAS WHOLESALE LENDER,
        1595 Springhill Rd. Vienna, Virginia 22182 of the sum of $1.00 blab blab transfer to COUNTRYWIDE HOME LOANS SERVICING LP 7105 Corporate Dr.,Plano, Tx –
        Signed by Patricia Arango-Notary: K. Anderson
        Now back to locate the TRUST from November 2005 aaaaaaaaghghghgh

  9. lies all of it says:

    hi everybody it seems like there is new news daily but none touches on the real subject….what about the homewoners. we know there is mortgage fraud and appraisal fraud and fraudclosures and robosigning. but what about us what do we do. we deserve not be in the middle of this. if a bank tells you not to pay your mortgage because you have to be in inenent default before they can help you should not be given the opportunity to foreclose. wells fargo told me not to pay. just so they can dual track and get me closer to foreclosure and collect their big win this is all so sick to prey on us

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