David Dayen | Foreclosure Fraud Settlement Docs (IV): Association of Mortgage Investors Planning to Challenge in Court

Foreclosure Fraud Settlement Docs (IV): Association of Mortgage Investors Planning to Challenge in Court

One of the things I looked at in an earlier installment of the foreclosure fraud settlement documents is how banks can satisfy their obligations by modifying mortgages they don’t own. HUD again tried to push back on this with a blog post about “myths v. facts” in the mortgage settlement (I’ll just say that I’ve taken everything I’ve written about today from the actual settlement documents). Here’s their point on that front:

Myth: The settlement will be paid on the backs of teachers, firefighter and unions because of pension or other investments in private label securities.

Fact: Participating banks own the vast majority of the mortgage loans that this settlement is expected to affect. The settlement could affect some investor-owned loans, depending on existing agreements servicers have with those investors. When banks weigh which mortgage loans to modify as part of this settlement, they will do so based on first analyzing the costs and the benefits of minimizing their losses.

If a loan modification, including principal reduction, is projected to cost the creditor or investor less than foreclosure, the creditor will earn more on that loan.

In other words, this settlement will not force investors to incur losses. That’s because any loan modification tied to this settlement will result in more of a financial return for an investor than a foreclosure would.

This has been the party line from the outset, but it’s only a guess. HUD anticipates that bank-owned loans will be modified first. They don’t say exactly why, but it’s just expected. Common sense, on the other hand, dictates that a bank will pay off their penalty with someone else’s money before they pay it off with their own.

Rest here…

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4closureFraud.org

Comments
7 Responses to “David Dayen | Foreclosure Fraud Settlement Docs (IV): Association of Mortgage Investors Planning to Challenge in Court”
  1. Ali says:

    Where’s the audit and paperwork from the conned people? If Bank of America took me to court tommorrow they would find that the morgage contract (VA no Less) was null and void on the closing date. The chain of title was bifurcated. The loan modification process was a joke. I would laugh but it has made me sick, physically, I have lost 50 pounds being worried to death and inveastacating my loan. I put together my chain of title back to 1990 and back of america was not even in the the picture till our loan was assigned to countrywide by MERS. And that was till 10/2011. They have used Stewaret, ticor, recon, dox, lps, and more. Now they are using Corelogic. They had no standing, have no standing and I don’t see them getting any standing unless they change the laws in the middle of the game . which is pretty likely. I worked with their Hope for Homeowers, I thought I had a good lady but she called me up to say Goodbye because she was leaving, tired of being reprimanded for taking too much time with clients. I took their counsiling sessions and was recomended for loan mod or HAMP. Thank God they turned me down AGAIN after sending in paperwork multible times. I finally had enough and got my record from the Recorders office and found that I haven’t had a mortgage sinceJan. of 07!!!!!! The originating broker did a doc dump into the recorders office. How can that happen I asked. Apparenty Banks can can record anything they want, but not you!!!! This settlement is polical. BoA is the biggest contributer to Obamas campaign and was also the biggist to Bush’s. So how do we beat this monster? I will die tring. They will not get my house that has benn paid for over and over again with money that that was created out of thin air. They made billions on our house and they should be returned to their rightful owners free of charge and someone should be going to jail as a determent to other s who will and I say will repeat this until thay are stopped.

    • lvent says:

      Ali, we have to make them prove they have a legally enforceable lien and we also have to be prepared to show the documented proof of why the mortgages and notes are legal nullities under well settled U.S. PROPERTY LAWS AND U.S TRUST LAWS, STATE AND FEDERAL CRIMINAL LAWS.ETC….We have to prove that they broke the laws of the land…not us.

    • Igor says:

      Ali, Do you have the names of the mortgage brokers who generated any of these mortgages?

      • Ali says:

        I most certainly do! “The First Mortmage Corporation”. Along with their insurance company’s. First American, Tcor, Stewart, Recon. I traced my houses morgage back to 1990, and there has alsos been a Warenty Deed. and all of them used First Mortgage Corp. First Bank, Stewart Title, Ticor. The more I look the more I find. I found out my next door neighbor had an ownership in my house, collected insurence, no clear title! Ans this went on and on. I looked up The first Morgage Corp. on the Will County Recorders web site and they have done the same to over a thousand more people. Smells like a house flipping scam between Mortgage broker, flippers, and insurance companies. I’m calling the FBI in the morning. I called this afternoon and they advised me to call the “Duty Agent” after 8:15 am. I will keep you all posted.Seems like everyone made alot of money off the back of my husband, the Verteran of the United States Airforce who served his country for seven years including three in Italy maintaining runways and and going on search and retrieve missions in the mountains. They should really be ashamed of themselves. I think the County of Will is getting kickbacks because no one seams upset that that there are one to three foreclosures on every block. I feel pretty good about the chances of a Quite Title Action at this point. Also Nationwide was included. I’ll go back to the Recorders web site and get back to you cuz here was one more broker who did alot and that where I found the guy who bought the place in the 90’s. Will get back to you, I promise! I wouldn’t be surprised if the Recorder was in on it. She has been the recorder for years and years, and now when I call with a question they are not so nice to me and my new found knowledge, thanks to all of you!

  2. Igor says:

    WHAT? This is a NONSEQUETOR! HOW CAN WE KNOW “participating banks own the vast majority of the mortgage loans that this settlement is expected to affect” WHEN/WHERE DID THE BANKS GET THE DOCUMENTS TO PROVE THEY OWN THESE LOANS?

  3. Igor says:

    WHAT? I am confused. HOW CAN WE KNOW ‘Participating banks own the vast majority of the mortgage loans that this settlement is expected to affect’ WHEN/WHERE DID THE BANKS GET THE DOCUMENTS TO PROVE THEY OWN THESE LOANS?

  4. Igor says:

    ‘Fact: Participating banks own the vast majority of the mortgage loans that this settlement is expected to affect’.HOW CAN WE KNOW THIS? WHEN/WHERE DID THE BANKS GET THE DOCUMENTS TO PROVE THEY OWN THESE LOANS?I am confused.

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