Uh oh…
Robosigned? That’ll Be $25,000 – Each
This is big news. I just got off a conference call with Richard Cordray, the Attorney General for the state of Ohio. He has filed a lawsuit in Lucas County (Toledo) Common Pleas Court against GMAC Mortgage and their parent company Ally Financial, in a suit which names Jeffrey Stephan, the infamous “robo-signer” who signed off on up to 10,000 foreclosures a month across the country with affidavits, without verifying the information in the foreclosure documents. The lawsuit alleges fraud on the part of GMAC, along with violations of the Ohio Consumer Sales Practices Act, in filing false affidavits to mislead the courts in what they describe as “hundreds” of Ohio foreclosure cases. And, the Attorney General is treating every single false affidavit filed in an Ohio court as a separate violation, with a fine of up to $25,000, plus additional restitution for the homeowner of an unspecified amount.
That’s because it is a separate violation.
That’s north of $10 billion dollars, potentially, for GMAC/Ally alone. In one state.
And by the way, he’s also calling it what it is: fraud upon the court. That is, a crime.
There is a hidden bomb in here as well:
Now that has potential. If MERS didn’t (and couldn’t) actually have the note….. who did?
Here comes the REMIC question!
One of the best parts of this suit’s filing is that it will make possible discovery, during which we’re likely to find out a whole lot about the origination practices of these firms, and exactly how, and if, they conveyed what was supposed to be conveyed – or if the entire securitization structure is a house of cards.
Go get ’em.
Source: The Ticker
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What origination process? The banks claim to be the originator. The true originator is the alleged borrower. Who originally issues the promissory note? THE MAKER DOES! Maybe they can get to the bottom of the real fraud. These notes are directly monetized/deposited/exchanged for fresh new FRN’s at par value. The fact they circulated proves there was no loan . There was a currency exchange, no different than exchanging rupees for marks.
Sorry, but no. I hate the banks as much as anyone, but what you are saying is that negotiable instruments are impossible. Which is not true.
The true fraud is that the note says that any endorser is liable to pay the full amount of the note, but then they change the terms and endorse it without recourse. The federal reserve/taxpayers/FNMA/whatever you call it/ backed these notes because you’re supposed to be able to get full payment from the house no matter what. But since they artificially inflated the prices by lending any amount of money to everyone, and they knew it, they made sure to endorse them “without recourse” (against the terms of note), to give the illusion that they aren’t responsible…but instead that FNMA is….
Its about time they call it what it is…FRAUD UPON THE COURT. Glad to hear it. I really like the hidden bomb too. I hope THAT comes out in the wash too. It is TIME for MERS to get EXACTLY what it has been deserving. I want to see Wall Street punished too for their diabolical REMIC plots – but that won’t happen. Why on earth isn’t the IRS paying attention here?
If CSI forensics can find a murderer by, a shoe print, a FORENSIC AUDIT should find the “fraud” in any mortgage loan documents!
The banks are like “murderers!”, they’re killing peoples lives, & killing America! When a killer is on the loose, cops are called for the hunt. Banks commit criminal activity (kill) and “flaunt” it in the faces of the cops..OCC, Treasury, Courts…And little is done about it! And, the real question, “who controls America?”, the killers? God help us all!
am glad this lawsuit will begin to look at the orignation process. I have been complaining to the attorney general’s offices here in Oregon and Washington for the last two years about the alleged fraud in the origination process and the potential fines in the millions of dollars against these lenders for TILA, RESPA, Yiedl Spread Premiums violations and misrepresenations. I have also filed redlining and HAMP violations against the lender , mortgage servicer and trustees and owner of the trusts . I found out using the Qualified Federal Request part of the RESPA law section 1594 that the Federal Reserve Bank of New York allegedly owns my two trusts Predatory lending has been declared by a federal judge in baltimore, md. in a case city of baltimore vs wells fargo bank , n.a. that predatory lending is a civil rights violation of the Community Reinvestment Act. The fines against these lenders in the alleged fraudulent origination process using brokers etc could reach billions of dollars in fines by the FTC and FCIC and OCC and Treasury Dept . I have been denied access to HAMP as a totally disabled Navy Vietham era veteran per VA and SSA Law and now have been assigned in vestigator by the Secreatry of HUD for discriminatory housing violations by my lender. this is over and above the alleged fraud and misrepresentation in the origination process that includes one flawed so called modificaiton that cost me $ 18,000 . as well as servicing fraud. see http://www.msfraud.org and Denail of Access to HAMP. here in federal court in tacoma, wa in the NOVASTAR case as defendant, the court ruled that all payments and origination fees paid by homeowners on these predatory ARM lemon loans had to be paid back to the homowner,. it only affected 1600 homeowners however. here i n this two nw states, we have non judicial foreclosure and full recourse to recover the mortgage debt. both of these laws should be abolished for lender abuse of homeowners .
thanks for listening. I feel better already just saying. this . homeowners need to be complaining to HUD and Office of the Comptroller of the Currency of the Treasury Dept in Washington as well as their congressman and senators.