Elizabeth Warren’s Foreclosure Settlement Bombshell: Banks Determined the Number of Victims of Their Own Foreclosure Frauds

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Elizabeth Warren’s Foreclosure Settlement Bombshell: Banks Determined the Number of Victims of Their Own Foreclosure Frauds

There is only one thing more Kafkaesque than the ongoing Wall Street frauds and that is watching a live United States Senate investigation of a diabolical settlement the banks themselves concocted to repay the victims of their own fraud. Such was the case yesterday when Senators Sherrod Brown, Jack Reed, and Elizabeth Warren grilled regulators from the Office of the Comptroller of the Currency and Federal Reserve along with outside consultants over allowing banks to hand pick the consultants to do their foreclosure reviews, negotiate confidentiality agreements with them and pay them directly.

Hundreds of millions of dollars in checks from the Foreclosure Review settlement will start going out today, eventually topping $3.6 billion in the cash portion of the settlement, and yet it was revealed during yesterday’s Senate hearing that it was the actual banks that engaged in the illegal foreclosure actions that tallied up and classified their wrongdoing under various degrees of harm; deciding themselves how many people would receive $300 and how many $125,000. The outside consultants that were hired to compute the harm were in the dark about this final, and most important, stage of the review process.

While two previous reports by the General Accountability Office (GAO) hinted at a sham settlement, questioning by Senator Warren of three of the highest paid outside consultants left no room for doubt:

Rest here…

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4closureFraud.org

Comments
16 Responses to “Elizabeth Warren’s Foreclosure Settlement Bombshell: Banks Determined the Number of Victims of Their Own Foreclosure Frauds”
  1. Rachel says:

    I was active duty Air Force, in a bankruptcy and I got a check for $600. Where do I sign up for a class action suit? Seriously.

  2. Alabama John says:

    They will try many things to get you to recognize them as the right one to deal with and to get you to settle. Already tried many but since they cannot provide the proof they are the correct one other ways, what better way even though it is costing them money they had rather not spend, it is getting you to accept they are the right ones you owe money to.
    Heck, there are many unscrupulous folks that for $300.00 to $1,000 will hope to get you to give them clear title to your home.
    Surprised many more are not sending these out to lots of folks behind on their payments that have no note or never have had one on your home and excitedly waiting on you to sign the back of their acceptance check and cash it.
    Then they can come get your home and kick you out easily.
    Wonder what’s next!

  3. 1ofthemany says:

    class action is nothing but pennies spread very far even IF won or obtained, tort and suing for damages is crucial, ALL have been HARMED and still are being harmed ….will people come together ….NO
    this is a pure and simple tort crime…

    tort

    n. from French for “wrong,” a civil wrong or wrongful act, whether intentional or accidental, from which injury occurs to another. Torts include all negligence cases as well as intentional wrongs which result in harm. Therefore tort law is one of the major areas of law (along with contract, real property and criminal law) and results in more civil litigation than any other category. Some intentional torts may also be crimes, such as assault, battery, wrongful death, fraud, conversion (a euphemism for theft) and trespass on property and form the basis for a lawsuit for damages by the injured party. Defamation, including intentionally telling harmful untruths about another-either by print or broadcast (libel) or orally (slander)-is a tort and used to be a crime as well.

    good luck all lone riders we will never win anything alone with big brother making the rules
    I have stated this for almost five years ….so be it

  4. letourpeoplebe says:

    I received $500 and I am still, after the false foreclosure 3 years ago, defending it in court. I am not cashing it because they will later claim that I have accepted settlement. I should have received at least $20,000 and as much as $75,000. I would think that those who may need to cash it should … it probably will not affect the class actions that will come.

  5. letourpeoplebe says:

    All of this started in 1990s when the big bankers started grabbing assets at the small banks and then grabbing the small banks customers assets. That is the game ASSET GRABBING. Same as the Robber Train Barons. It is not just sub-prime home loans many businesses are having their assets stolen in the same way. If you review the Officers of these banks they all set on the boards of each the others banks and include the international banks who are considered the 25 to big to fail by the politicians. You also find that deals (which are published on the SEC database) link all these companies and their Cayman and Swiss accounts. It is no coincidence that these large banks independently discovered the same shell game being plaid and then volunteered to be on the boards of others.

    I am starting to understand the Occupy Wall Street thing. My hat goes off to Elizabeth Warren for consistently telling it like it is and refusing to get off the soapbox. I have to ask, why isn’t the White House attacking this problem?

    The most egregious consequence of this act of greed is the wholesale robbery of veterans returning home to no home!

  6. Sue-Ellen says:

    Okay I get that everyone is up in arms and I am fuming as well, but why is she just coming out with this now after the payments went out?? what good is that going to do us. I was in Bankruptcy on the advice of the bank because they would not modify my loan. During the whole bankruptcy process we continued to get monthly bills from the bank and notices that they were proceeding with the foreclosure and after the bankruptcy was discharged the bank never completed the paperwork to take possession of the house so our names were still on the deed 2 years later when we had finally gotten back on our feet and wanted to purchase a home again, we couldn’t because our credit report showed us as still having an open foreclosure. We worked hard to keep every single payment on time and up to date for those 2 years because we knew we wanted to get another home and the general rule is that you must be 2 years out of bankruptcy and/or foreclosure and have an absolutely sparkling credit record from the disclosure of the bankruptcy on and we did.. but with that foreclosure on our credit report we were not able to get a mortgage. After about 100 calls to the bank, I finally had to sign a deed in lieu of foreclosure to get us off the deed and to get it off our credit report. took another year of living in an overpriced very small apartment and wasting all of that money that could have been invested in a home of our own.. So, I get a measly $500 check in the mail yesterday.. big deal.. What is Warren going to do now that the payments have already been sent.. the damage is already done and the solution by the banks/OCC and Federal reserve is an insult at the very least.

    • Lisagp says:

      The Banks Don’t care about us at all the Fraud they did on the American people is just sicking .. The big problem is they were aloud to and they are still doing it .. if that were you or me we would be in Jail for a long time no if’s and or butts about it .. I am so sick of seeing them steal from the American people .. they are the ones that caused the fall out ..

  7. suspect about the process says:

    My wife got hurt at work and became disabled in 09. Up until that point, we never missed a payment- on anything. We applied and were denied by JP Morgan Chase for a home modification, then decided to file for bankruptcy in 2010 & ultimately finalized a deed-in-lieu.

    I haven’t received a check yet- but how much should I get? If I get only $300, can I appeal? Also, I didn’t file for a review in 2012; I had no idea about that and never got any paperwork…

    I appreciate your responses!

  8. talktotennessee says:

    I own a house that the banks says has a mortgage and they are going to foreclose. Yet they have NO deed of trust and I suspect they have no other documents either. They tried to get me to sign a new Deed of Trust by telling me I would not receive a modification if I didn’t. I paid Impac to modify the loan after they solicited me to do it. Skipped a month on payments at Impac’s suggestion and the servicer accepted the first mod payment and sent back the second check and immediately transferred me to a new servicer! Same phone numbers mind you but a different name and these people say they aren’t obligated to modify anything and will foreclose. I live in a non-judicial state so my lawyer says they will foreclose anyway WITHOUT a Deed of Trust!!!We just think we have rights in the U.S. Those of us caught up in this housing/bank mess know better!

  9. talktotennessee says:

    Received my check today for a house I have been trying to modify loan on for 3 years. I filed suit against Wells Fargo. They said send them $4,000+ and they would modify loan so I sued because they kept trying to set a foreclosure and the stress was nervwracking. It was a very bad two loans, one a balloon with a 11% interest amortized over I think 15 years. If that ain’t criminal I don’t know what is! I’ve paid the modification payments ordered by the Court more than the note should have been. Wells keeps paying their expensive attorney and nothing is done, period. I have completed 5 modification packets, nothing changes. So they threw me a bone in the way of a $1000 check. I paid more than that plus the notes in one month and still can’t get a modification!

  10. charley rice says:

    These DOUBLE DIPPING 5 Prime Bailout Banks were ALREADY PAID by the 2008 TARP…

    NOW Wells Fargo Bank, Bank of America, Chase, Citi, GMAC were ALREADY found GUILTY of FORECLOSURE FRAUD back on DECEMBER 23, 2010

    THEY Should be ALL SANCTIONED AND THEIR LAWYERS DISBARRED from going BACK INTO the courts, and the JUDGES have failed under their OATHS.

    Because they let the banks commit grand theft on homes that they KNEW didn’t own, and HAD NO STANDING because the ALL the Subprime lenders went out of business in 2008 means the homeowners aka investors Deed of Trust instrument contract was repudiated by the lender meant that the debt was cancelled.

    NOW here come the Prime Banks AGAIN stealing the homes AND keeping the HOMEOWNERS money.

    Where is there a law that says that you can steal property and keep the money when you’re NOT the REAL PARTY in INTEREST?

    “YOUR SUBPRIME LENDER was The REAL PARTY in INTEREST now no LONGER EXIST.”

    THE PEOPLE SHOULD KNOW THAT The Deed of Trust was UNENFORCEABLE…
    UCC Law Article 2 (3) Cancellation (4) Termination
    The Courts ONLY enforce CONTRACTS…

    NO ONE had NO STANDING, VENUE, JURISDICTION on a Defective Instrument including the Courts, Judges, Sheriff, Police, Foreclosure Mills and their attorneys…

    THIS WAS THE BANKS FAULT AND THEY HAVE INJURED THE PEOPLE.

    OH, What a Big error in rulings, EVERY JUDGMENT IS VOID based on CONTRACT LAW…

    You can no longer hide the TRUTH.

    JUST give back the homes and STOP creating WAR and TERROR upon the PEOPLE…

    “THOU SHALL NOT STEAL”

    • Wake up everyone…Charlie is telling you the facts..the truth….read this over and over…we must all stand together and fight this unjustice act of corruption ..the judges sit in the Hall of Justice wearing the mask… .hiding the facts from the victims…and aiding and abetting with the criminals…why are we letting this happen? THE JUDGES KNOW THE BANKS DO NOT OWN A SHIITTEN THING…AND CANNOT PROVE CRAP WITH ANY WIRE RECEIPTS OR HARD CASH PAID TO PROVE ANY PURCHASE….AND CHASE SAID IN THE FEDERAL COURT ” THEY WERE NOT SUCCESSORS TO WAMU “….YET HAVE GONE ALL OVER THIS COUNTRY IN COURT AND KEEP SAYING THEY ARE…FRIGGEN LIARS 1000%…AND THERE WERE NO ASSIGNMENTS FROM WAMU TO CHASE…NEVER…NEITHER CAN PROVE THEY EVER PAID TO PURCHASE LOANS…CHASE IS LOOKING FOR A FREE HO– USE THAT WAS ALREADY PAID OFF WITH TARP MONEY AND OTHER FUNDS MANY TIMES OVER…MANY MANY TIMES OVER…A COMPLETE SCAM…THIEVES…FRAUD….. NO MATTER HOW YOU SPIT IT OUT…

  11. JS says:

    In my case JPMC rejected my modification after 5 successful trial payments. Then, later, with the help of a great attorney, they put me on another trial modification and ultimately modified my mortgage.

    According to the settlement guidelines, I should have received a check for $3,000. Instead I received a check for $300.

    Should I even bother to deposit this check, or return it as a matter of principle?

    And, I should add, that the guidelines don’t address many of the other dishonest tricks and stunts they pulled… like the fact that they assigned the mortgage to the trust THREE YEARS late, clearly in default of the PSA, and the fact that they initiated the foreclosure as “JPMC, successor in interest to WAMU” while at the same time filing papers in defense of a suit by Deutsche Bank, stating that they (JPMC) are NOT successors in interest to WAMU.

    • Fury says:

      who is to say that the $300 checks that are bouncing
      aren’t just one more way to rip you off?

      what if it is a scheme to get your bank account information or have the clock on your
      loan restart?

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