Mirabile Dictu! SEC Prods Banks Over Mortgage Litigation Reserves
When the SEC wakes up and starts acting like a regulator, you know something serious is afoot.
The Wall Street Journal reports that the securities agency, spooked by Bank of America setting aside over $20 billion for mortgage-related liability, has sent letters to “a number of banks” asking them to do a better job of disclosing what their legal liability is (the elephant in the room is of course the mortgage mess) and making adequate reserves. Per their story:
The SEC is focusing on whether banks are doing enough to disclose the “reasonably possible” category of losses. Officials in the agency’s corporation finance division are reviewing banks’ regular filings to determine whether shareholders have been given fair warning of the mounting future liabilities, according to people familiar with the matter.
One can have a teeny bit of sympathy for the banks. Structured credit and chain of title litigation are cutting edge areas of the law. We are in a better position than the banks to be candid about what is afoot, and even so, we’ve gotten a few calls wrong. But it’s also true that many of the key elements of the law are being sorted out in court, and certain issues are too early to call.
Be sure to check out the rest here…
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If deemed serious enough, watch Congress enact something to bail out the banks chain of title issues. Remember the Banks KNOW their risks better than anyone and they aren’t disclosing bad paper. If they set aside huge reserves you can figure they anticipate paying off investors who sue, with no worries about homeowners. We aren’t represented enmasse and have NO VOICE in resolution. Banks are busy with damage control, making lemonade out of their lemons. Let us hope that the urgency of the situation stays under wraps long enough for expose’ in the courts. This is our best hope for resolution for homeowners, a moratorium on foreclosure, or drop in the market large enough to bust the housing market down to the point where strategic default for those who remain solvent becomes a fact of life. When there is no disclosure or transparency, what you don’t know can’t hurt the banks. With that in mind, the banks aren’t about to disclose their title problems. They will buy out everyone that screams with pennies on the dollar and resell those bad assets for nickels and dimes, dropping the housing market further off the cliff in the process.
Will housing values continue to fall?
As a famous former VP candidate would say, you betcha!
Even that won’t work if they never secured the collateral lien at Origination. They can’t erase the ORIGINATION FRAUD. I ALSO HAVE A $35.000.00 BUILDER LIEN ON MY TITLE FROM A CONTRACTOR THE BUILDER NEVER PAID, IT HAS BEEN ON THERE SINCE 1994. WHO IS GOING TO PAY THAT? MY HO– USE IS OFFICIALLY UNDERWATER ACCORDING TO THE COUNTY ASSESSORS OFFICE MY HOME VALUE DROPPED 80 GRAND. BUT ACCORDING TO THE PAST ASSESSMENTS MY HOME WAS NEVER WORTH THE APPRAISED VALUE. THEN I HAVE FRAUDULENT FEES BY THE TITLE COMPANY ALONG WITH A FRAUDULENT CONVEYANCE BY CHICAGO TITLE AND TRUST TO THE PUBLIC. THERE IS NO FIXING THIS.
SECURITIES FRAUD(THE SELLING OF UNSECURED NOTES), , FORGERIES OF LEGAL DOCUMENTS,ROBO-SIGNING, REPLACING MISSING DOCUMENTS YEARS AFTER THE CRIMES OCCURRED TO MAKE UNSECURED LOANS LOOK LIKE SECURED LOANS,ALTERING OF LEGAL DOCUMENTS AFTER THE CLOSING, MYSTEROUS LIENS APPEARING ON TITLES, MERS, THE INTENTIONAL LOSING TRACK OF WHO OWNS THE LOANS BY BIFURCATING THE MORTGAGE AND THE NOTE to cover up for the fact these are NOT SECURED LOANS, STRANGE CLOSING FEES TO TITLE COMPANIES THAT DON’T MAKE SENSE, SERVICERS, BANKS,FANNIE AND FREDDIE ILLEGALLY FRAUDCLOSING ON HOMES THEY DO NOT OWN THE LOANS TO BECA– USE THEY WERE NEVER A SUCCESSOR OR ASSIGN OF THE LENDER UNDER THE DEED OF TRUST OR EVER RECORDED AS SUCH AT THE RECORDERS OFFICE,,ATTORNEYS FORGING FRAUDULENT, PHONY AFFADAVITS AND OPENLY ADMITTING TO JUDGES THEY ARE COMMITTING FRAUD UPON THE COURT , ALLONGES “ATTACHED TO UNSECURED NOTES” THAT PROVE NOTHING AND ARE THEREFORE FRAUDULENT, MISSING AND FORGED ASSIGNMENTS RECORDED AT THE RECORDER OF DEEDS OFFICES NATIONWIDE, LACK OF EVER PERFECTING THE COLLATERAL LIEN FROM ORIGINATION AND SELLING OF THOSE UNSECURED NOTES INTO POOLS AS SECURTIES WHEN THEY NEVER WERE SECURITIES, NUMEROUS FEDERAL CRIMES PROSECUTABLE UNDER RICO THAT SHOULD NOT ONLY FORCE THE FRAUDSTERS TO PAY RESTITUTION TO HOMEOWNERS FOR SLANDER OF TITLE AND SELLING UNSECURED INSTRUMENTS AS SECURED INSTRUMENTS IN OUR NAMES WHICH IS SECURTIES FRAUD IN THE NAME OF THE HOMEOWNER BUT ALSO RETURN OF ALL STOLEN HOMES, MONETARY RESTITUTION TO THOSE HOMEOWNERS AS WELL AND AN END TO FRAUDCLOSURES WITH NATIONWIDE LOAN RECISSIONS AND AS LONG AS YOU CAN PAY YOUR PROPERTY TAXES, CALL IT EVEN AND RESCIND ALL LOANS AND GIVE EVERY HOMEOWNER CLEAR TITLE TO THEIR PROPERTY. THAT WILL END THE RECESSION. CNBC REPORTED WALL STREET MADE 60 TRILLION IN MORTGAGE DERIVATIVES IN 1999 ALONE. THEY CAN AFFORD TO DO THIS IN SPADES. WALL STREET CAN ALSO GET HANDED THE BILL FOR THE DEBT CEILING WHICH THEY CREATED THAT MESS TOO WITH THEIR MORTGAGE FRAUD PONZI SCHEME. AMEN, END OF STORY.
Again!!!! what about THE PEOPLE living in homes and trying to pay the shareholders the fraud money??? So screwed up this is going to be an ongoing debacle of lies upon lies from the bankster industry until it explodes in everyone’s face including theirs, hopefully theirs FIRST!! As always time will tell. Value of homes decreasing daily, people thinking they got a bargain but just a clouded and will never be paid off unless they come up with another sleeezzy way to show false documents. Way too out of control “BY DESIGN”. Homes stated worth 75% of what bought for and we are supposed to pay for trash now and forever not to mention being taxed on it also oh wait and you have to insure your trash or loose it NOW.. hummm this is all so easy to do and doesn’t it make a lot of sense, yea right!!!! The stupidity of it all. Good luck SEC slow moving machine that you are. Corruption at it”s finest I must say.