The Sophisticated and the Scammed
Each time an investor group or shareholder sues a financial institution for MBS damages, the financial institution files a response stating the investors “were sophisticated investors who knew or should have known of big problems.”
We are beginning to uncover and expose continuing scams, fraud, and theft (hint: monthly renewing statute of limitations).
The MBS trusts’ accounting is as suspect, invalid, inconsistent, and outright fraudulent as are the real estate documents fabricated by document mills.
All eyes are on the Pino v BoNYM as trustee of CWALT 2008-oc8 (BoA servicer) fraudclosure case. The FHFA, regulator of Freddie Mac which owns class/tranche 1A1, claims all manner of origination, underwriting, appraisal, loan-to-value, and ratings fraud in their suit against Countrywide (here), and also tranche 2A2B was such a “toxic asset” that it was purchased by the Fed at 100 cents on the dollar and dumped into Maiden Lane II.
After Roman Pino’s fraudclosure defense lawyer at Ice Legal uncovered and exposed massive fraud in the lower trial court, Palm Beach County’s 15th Judicial Circuit, Bank of New York Mellon as Trustee and their fraudclosure mill attempted to slink away by voluntarily dismiss the case while they filed a new case with newly fabricated fraudulent documents.
Ice Legal said, “Not so fast! We insist on a hearing to review the evidence so the judge can dismiss this case to avoid the new fraudclosure case from going forward.” But the lower court judge ruled that it is perfectly acceptable for fraud to be perpetrated on the court as long as the fraudster voluntarily dismisses the case once the fraud is exposed. Ice Legal brought this issue up on appeal. The bank friendly puppets in Florida’s 4th district court of appeal didn’t want to touch this case with a ten foot pole. The appellate judges allowed the lower court decision to stand but turfed up the the case to the Florida Supreme Court stating that fraud was rampant and an issue of great public importance.
BoNYM (BoA servicer) freaked out because, unlike Florida’s lower and appellate courts, Florida Supreme Court is not a sure bank puppet operative. So, the case was “settled” with a confidential agreement. Both the fraudclosure mill and Mr. Pino’s lawyer notified the Florida Supreme Court that the case had been settled and both parties were requesting the case to be dismissed.
The Florida Supreme Court Justices, acknowledging the public importance of foreclosure fraud, decided to keep the case alive. (Can you hear BoNYM & BoA howling in protest?)
While the settlement with Mr. Pino is confidential, we do know that a satisfaction of his mortgage was recorded in the public records in July 2011 (below).
Despite the fact that this mortgage “asset” no longer exists, the trust is still claiming this mortgage as an asset as of the Jan 2012 investor report, charging all sorts of fees, including monthly servicing fees, etc.
Our research has uncovered other non-existent “assets” on the books of this trust. To put this in perspective, at the origination of this trust there were 6,734 loans of which 61 were originated in Palm Beach County. As of the Jan 2012 investor report, 29 of the original 61 Palm Beach County loans remain on the trusts’ books. Only ONE is performing as originally contracted at closing. Three others have been modified; one has a $39k forbearance, one has a $8k added to principal, one has $16k added to principal. The other 25 loans are non-performing. (As of Jan 2012 report, total left in the trust 2,921; of the 2,921 left 1,187 are non-performing (delinquent = 237, bankruptcy 188, foreclosure = 512, REO = 250) but we know this data isn’t correct, so….)
Some “non-existent” loan examples from the trust
Roman Pino loan #130133456 – $162,400 – (July 2011 satisfaction – still on the books in Jan 2012 trust report in “foreclosure” status) [3764 Mil Run Court, Greenacres, FL 33463] – BoA monthly servicing fee for non-existent mortgage $50.73
Samantha Woodruff loan #130521936 – $171,940 – (Sept 2011 deed from trust REO to new buyer – still on the books in Jan 2012 trust report in “REO” status) [1497 Lake Crystal Drive D, West Palm Beach, FL 33411] BoA monthly servicing fee for non-existent mortgage $33.70
Robert Rodriguez loan #130450231 – $176,542 – (Sept 2011 short sale deed & Nov 2011 satisfaction – still on the books in Jan 2012 trust report in “REO” status) [1139 Lake Terry Drive 60L, West Palm Beach, FL 33411] WOW – BoA monthly servicing fee for non-existent mortgage $181.69
Elsa Castillo Rivas loan #130445815 – $375,000 – (July 2011 short sale deed) – remained on books through Dec 2011 in “REO” status), finally reported as “liquidated” in Jan 2012 report [13918 Preacher Chapman Place, Centreville, VA]. WOW – BoA monthly servicing fee for non-existent mortgage $328.04
This is just a small example of what we are uncovering. If we learned anything from the robosigning scandal, if there are more than two “irregularities,” there are thousands.
More examples from other trusts to come.
We feel comfortable saying that this is widespread…
Robert Rodriguez loan #130450231 – $176,542 – (Sept 2011 short sale deed & Nov 2011 satisfaction – still on the books in Jan 2012 trust report)
WOW – BoA monthly servicing fee for non-existent mortgage $181.69
|Seller||CASTILLO RIVAS ELSA M|
|Notes||Valid and verified sale|
|Deed Book and Page||21776-2185|