7 reasons bank stocks may keep falling
Number 7…
7. Lawsuits. Half of America’s mortgages are on MERS (Mortgage Electronic Registration System), but, in many states, MERS has no standing in foreclosure. Theoretically every owner of a securitized pool should sign off on each foreclosure in the pool. There could be hundreds, if not thousands, of owners in these pools. In addition, many jurisdictions require that title transfers be recorded in county recorder offices. Since that did not occur, lawsuits are now being developed against the major TBTF players for lost recording/title transfer fees.
The Dallas DA recently sued MERS and Bank of America (BAC) for $100 million of such fees. According to Mark Hanson, since MERS has been operating since 1995, there could be billions of dollars of such thwarted fees. Because nearly every local governmental entity is hungry for funds, this could catch on like wildfire.
Bank of America’s $8.6 billion global services settlement is in trouble, as Attorney General Eric Schneiderman says it should be closer to $25 billion, and he is getting support from other states, like California. The rumor mill has circulated the theory that if lawsuit settlements become outsized, BAC appears to have the option of bankrupting the old Countrywide unit, which it has kept as a separate legal entity since its purchase in 2008. Imagine, though, the market reaction to such a move!
Lawsuits on mortgage trustees are just starting. According to Bloomberg, U.S. Bancorp (USB), Bank of New York Mellon (BK), Deutsche Bank (DB), Wells Fargo (WFC), HSBC (HSBC), Bank of America and Citigroup (C) are the major mortgage trustees. Bloomberg speculates that since these institutions didn’t underwrite, sell, securitize, service, or ship loans according to regulations, the odds are low that the trust departments got it right. So far, Schneiderman has requested documents from Deutsche Bank and Bank of New York Mellon.
In early September, the Federal Housing Finance Agency (FHFA), the receiver for FNMA and FHLMC, sued Bank of America, Citigroup, JPMorgan Chase (JPM), Barclays (BCS), HSBC, Credit Suisse (CS), and Nomura Holdings demanding refunds from these institutions for loans sold to FNMA and FHLMC that were based on false or missing information about the borrowers or the properties. The FHFA said that the two mortgage giants purchased $6 billion from Bank of America, $24.8 billion from Merrill Lynch, which is now owned by Bank of America, and $3.5 billion from Citigroup.
You can check out 1-6 here…
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Began to take on MERS as’ nominee’ for Fremont Investment and Loan, in a Servicing and pooling agreement via CitiGroup (dated 5 mo after house note, and no where in my note). Changed (via a blank undated signature page by the ‘VP of MERS’) to HSBC–wait, right, first to WellsFargo, while being ‘serviced’ by Litton, who was named as the ‘lender’ in some of my documents. Started in ’08-just after filing CH13, just before they began to try to foreclose.
Re-payment plan – $4550/mo for 23 months on an $1800/mo note because of fees, penalties and figured in Payment Pyramiding. Loan loaded with masses of violations.
Too bad, I live in CO – non judicial, can’t find a lawyer ANYWHERE! My BK lawyer took me to the cleaners but didn’t help on my cars or house one bit!
Did research, found the “rules”, figured out how to find the issues in my note(s), and wrote my responses to the Foreclosure we shouldn’t be in. HSBC filed NED on 5/3, Litton had given me (yes in writing) until 5/4 (yes, I milked it till then, but got it – the HAMP paperwork) in-and verified. Next Day, a Notice on the door. Then, same old crap, No contact, Litton didn’t know why HSBC was involved, told me it would be on ‘hold’. Then that it wouldn’t be on hold, but no sale while they ‘evaluated’ (yup, recorded the conversations too).
So I went alone to 120 hearing, Plaintiff’s attny perjured herself in court, and though I objected, with proof, and objection was granted,…the Trustee apparently thought perjury in his court was okay. This is rich: So as they hadn’t shown on July 6th to our appointed 120 hearing (no she wasn’t fined for failing to appear, nor was the case removed), the 120 hearing was put off to late Sept., and again, I had all manner of proofs of predatory, usury, TILA, RESPA, even now HAMP violations, Flipping, Equity Stripping, Missing Docs, Incorrect PUD, over 10k in YSP on the 2nd for broker (2nd being 63k when Fremont split my loan in the ’05 refi) plus OH so much more.. I heard, “I see the procedural issues, but we aren’t here to discuss those.” from the Trustee/Judge.
So Trustee sets sale date for 11/2–while I am still being eval’d for HAMP, even got a HAMP double escalation to deal with Litton. Who sold my Seriously Upside down (try hse worth225K, bought for 285k Fremont split into 2 notes at refi, so ‘only’ owe 286k on 1st – after 9 years.) Off Track, Sorry, Litton, just last week ‘sold/transferredd’ it to Ocwen–the same company Fremont sold the 2nd to! Litton AND Fremont claimed 286k each in my CH13 turned 7 (in 2/2011).
I’m thinking that’s not in Ocwens best interest to purchase a defaulted/foreclosing note, just as it wasn’t in HSBC’s when MERS ‘sold’ it to them (nor were we under 700 credit score, so should not have had a sub-prime ARM in ’05 to start with) – although it says FIL did the selling to HSBC in ’08, and somehow lists Litton as ‘lender’, but by that time FIL was no more – shut down by OCC so far as home lending goes before that confusing transaction.
So I’m in a sh**storm. AND I NEED AN ATTORNEY!! I’ve been looking, calling, reading, searching for a month – no replies. Anyone Know Anyone Tough- price be damned at this point, I refuse to pay my mtg as I don’t know who, or how, owns it. I’d much rather pay an attorney – quiet title, and restitution for my injuries and my attorney’s time, would be the goal. I’ve gone from pretty sane and normal over the past 3 years to a diagnosed Major Depressive, with an eating and sleeping disorder! Wonder why.
I’ve recorded calls, names, times, dates. I’ve highlited, tabbed, and organized with law quoted, all (or most) of the violations in my Fremont refi turned MERS turned CitiGroup turned Litton turned HSBC, and finally (from Litton somehow) turned Ocwen. OMG! Really??? I’ll scan in my signatures tomorrow – unreal amounts of WT* kind of handwriting (oh, that’s a stamped signature on that non-notorized, date-free paper with three *** identified as the New note holder (kindly identified as *** is HSBC — UNDER the signature that resembles nothing in the name of the “MERS” VP).
Hate this. PLEASE SEND ME ATTORNEYS! I CAN NOT DO IT PRO SE ANYMORE! And I Will LOSE MY HO– USE TO THESE CROOKS ON 11/2/11! Even though the HAMP rep tells me there ‘has to be more time, as I have 30 days to read over the NPV explanation, then another 15? days for Litton (or Ocwen) to respond, then a little more time to re-respond, or re-apply” I never should have tried to do this alone! Silly me, all these laws broken and obvious, I ASSUMED that Justice Was Blind!.
Trustee’s just got a 25k raise from the Foreclosure Attny’s lobbying – not too mention their sweet vacation getaway funded by the same attorney’s – the one’s working on Stealing My House! The very same ones who sold the state of CO the computer program that Processes Each and Every Foreclosure – for a hefty sum + a swell Kickback from Every Foreclosure their system processes! (Info on raise and computer program courtesy of Denver Post).
HELP!!
The TBTFs seem hellbent determined to put themselves out of business by conducting one terminally stupid corrupt activity after another. I think we should let them.
I’m still trying to figure out some law firms are still filing foreclosures in the name of MERS – since the recent landmark MI case. I’m thinking the law firms must be filing these thinking that the homeowner isn’t going to fight it, so are taking a “what the heck” approach in the foreclosures by advertisement. Who is going to turn ’em on? Nobody unless the AG or consumer watch dogs start turning in these sections of the newspaper…
Oh wait, the State of MI AG has done nothing anyway….
So as part of the necessary documents to a CA foreclosure, a “Debt Validation” letter has to be filed with the Notice of Default. My own has two different, equally-impossible “Debt Validations”. The original and a later one, neither indicates the existence of the other, prior version. One names may ‘Creditor” as “Mortgage Electronic Registration System” and the other names the debt collector “Litton Loan Servicing” as the supposed “Creditor”. At the time of the supposed default, the servicing was by Countrywide. Servicing moved to help justify deceit on the permanent loan modification. I can not see any possible way that the notice of default was correct. To top it off, the filing of the NOD was done by a ‘substitute trustee’ who acted before they were substituted. Add to the ‘rub’ that the substitution is invalid. I just love the mess they created.
Same shit smears on my toilet paper. Default toilet was flushed before the substitute trusty was even in the can. Somthing FUCKEN STINKS!
It’s been going on about 2 years now, but Fraudie May issued a Bankster directive stating not to steal the house in MERS name. Apparently it was preferable to let the substitute crooks lie in court to enable the thefts.
……my God…how did we let this country become such a mess……and where are our elected amd paid for saviours!
We were all believing the lies….our whole life..We fell for it and now we are hijacked..time to release ourselves from this hostage situation and stop paying the bastards who did all of the lying and stealing..They are INVESTORS IN UNSUSTAINABLE DEBT THEIR PERPS CREATED……THEY ARE NOT OUR OWNERS. THEY OWN OUR POLITICIANS AND WALL STREET….THE POLITICIANS ARE TRAITORS….When the people STOP believing theBIG LIES, that WE OWE WALL STREETS DEBT…!!!!. and the banksters own our homes and own us because they created too much debt……… then there will be big changes..We The People have to be the change…Stop paying and cooperating with this CRIMINAL DEBT CARTEL..ABOLISH THE FED..!!
vote yea
Are you really waiting for saviours? Get out in the streets or support those who do and fight for yourself.
Ron Paul! That’s the only one who has the balls to audit the Fed.