Mortgage Settlement? Not So Fast!
Mortgage bondholders are threatening legal action over the $25 billion national mortgage settlement, which will give the five largest servicers credits for principal writedowns that the bondholders may be forced to take. As American Banker notes, the investors in those trusts were not a party to the settlement agreement, and now they are objecting to being forced into taking losses – to the banks’ benefit – as a result of it. The government is forcing investors to take losses even though they were not responsible for the foreclosure process abuses that led to the banks’ settlement with state and federal officials. “The banks are trying to pay these fines with our money,” says Vincent Fiorillo (of DoubleLine). Chris Katopis, the executive director of the bondholder trade group, says it is considering its legal options, including filing a friend of the court amicus brief or suing servicers individually…”Banks are shifting their liability to first-lien investors that were innocent of robo-signing,”.
American Banker: MBS Investors Cry Foul Over National Mortgage Settlement
The settlement does nothing to change the contractual pooling and servicing agreements between investors and mortgage servicers…
If a contract does not permit principal writedowns, the servicer cannot take them, according to an official at the Department of Housing and Urban Development…
But if they have to take writedowns without getting paid by the banks, mortgage investors don’t want banks to get credit for them…
Bondholders are especially concerned about writedowns from Bank of America, which has privately securitized more than $285 billion worth of mortgages originated by Countrywide Financial Corp. (B of A acquired Countrywide in 2008)…
The settlement must be approved by a federal district court, and “there is the possibility that some private investors could resist the settlement,” Bordia wrote in his report…
“Even after court approval, an indiscriminate application of modifications to non-agency loans is likely to be met with legal challenges,” he added. “The possibility of legal challenges from investors cannot be ruled out if indiscriminate mass modifications were to take place.”…
“How can the government impose a benefit on servicers at the expense of the investor?” asks Walter Schmidt…
Bondholders also claim that during a Feb. 14 conference call with 90 investors, HUD Secretary Shaun Donovan assured them that the number of private-label securities that could be modified under the settlement would be capped at 15%. The settlement did not include a cap, angering investors who claim the government favors banks over bondholders.”
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Hmmmm, the plot thickens..Bloomberg reported a few months ago that the IMF is one of the biggest bondsholder/shareholders in Fannie Mae…Bloomberg also reported that the FEDERAL RESERVE collects TRILLIONS of dollars a month in mortgage money…!!! Bernanke said the Fed uses that ill gotten mortgage money to buy Treasuries with…!!! In other words…The Fed is hoarding the peoples money and keeping their Ponzi Scheme with the U.S. TREASURY DEPT and Timothy Geithner going for the benefit of themselves and their investor friends at the IMF/WORLD BANK……The FED &Co. are HOARDING THE PEOPLES MONEY that they are not even owed…..They should be paying back the U.S TAXPAYERS FIRST AND FOREMOST…NOT THEMSELVES and THEIR INVESTORS…!!!
Ah, now that makes a lot of sense. The private banks are the FED and the FED is the IMF. The private banks are foreclosing on the hard assets of sovereign nations.
As I said, this settlement wont hold…God is watching…it is an illegal settlement…homeowners have a contractual agreement with the mortgage companies and vice versa and the mortgage companies violated that also when they signed other contracts with investors unknown to the homeowner….
I do so enjoy the collective consciousness in action. Following the REAL news, here, at ZeroHedge, Firedoglake, Naked Capitalism, Abigail Fields, Foreclosure Hamlet, Mandelman Matters, Matt Weidner’s blog and some glimmers of truth in the Main Stream Media, it is amazing to find that, if I come to a realization from my independent research, I find that someone else has already expressed or expresses that same realization, often within 24 hours one way or the other.
ToTellTheTruth: Earlier this year, I was reviewing mortgage documents for the umpteenth time when it hit me. Yes, homeowners agreed to the sale of the mortgage loans BUT never agreed to securitization. Securitization is not a sale. The investors were sold something that did not exist: mortgage backed securities. The transfers to the REMIC trusts were never made as required by law.
I hope the investors intervene in the federal district court and put an end to the travesty of the hold harmless from fraud settlement terms. Homeowners should do so as well. I have been thinking of moving to intervene myself, as an person whose home of 14 years has been temporarily seized under a writ of assistance entered without notice, while I was out of town on business, by a foreclosure mill against which I frequently appear in court proceedings for clients. Each homeowner has special facts and circumstances, but my case involves two copies of the mortgage note–no original was produced–one endorsed in blank and when I challenged it, a second (after the action was commenced) appeared with the top portion of the note containing the bar code covered with a piece of paper and photocopied over (this deletes the identifying information to allow the note to circulate in commerce) with special endorsements and an allonge. Both cannot be true.
I do hope God is watching, but if it is up to us alone, we are all in this together and have more than enough knowledge. Thank you, 4closurefraud for letting us share.
Hard to feel sorry for folks who stood by while homeowners where raped in their name and did nothing.
Hi Lynn, resonating with your post. Well said.
But also sometimes strong causes make for “strange bedfellows.”
If the homeowners don’t want the settlement and the investors don’t want the settlement, maybe both should link up in a virtual occupy platoon, a MOP-UP.
Many Online Protecting – Underlying Property.
Or you name it …
Sincerely yours, SNS,
Here are the 4 steps to taking over a sovereign nation, practiced by the CIA throughout the world and the KGB (now ruling Russia via Putin.)
1. Demoralize
2. Destabilize
3. Create a crisis
4. Normalize (We must not accept the “new normal.”
The takeover has been attempted by, among other things:
1. Undereducating our citizens over 30 years; training students to be servants of the corporate state; medicating the citizens with psychotropic drugs for everything from “depression” to “chronic pain”; alienating families (two parents working harder and harder)
2. Destabilizing the economy (inflation and deflation of asset values, including the value of labor and the currency)
3. 9/11 (blame the usual and then the mortgage crisis (blame the homeowner and not the banks) and throw citizens into the street
4. Normalize (get the population so scared that they turn a blind eye to injustice)
This cycle has been used effectively, time and time again, in Latin America, in Europe and in Asia. The plan may yet fail. Too many still know history and can see through the dismal science, economics, which is better described as “the science of lies.” Modern monetary theory is not a theory but the proper description of the alternative to a private, debt-based medium of exchange.
Many of us know that we cannot be free by enslaving others.
Eventually we will free ourselves from the illusions of private property, but at least we can free ourselves in real time from the debt servitude imposed by private banks creating the currency. I believe that the original mortgage notes are being traded as currency through the international banking system. That is why we do not see many original notes. The notes are just another form of debt-based currency to which our homes are supposedly, but not effectively or legally, attached.
As to the “mortgage crisis,” Representative Marcy Kaptur said it best in the House of Representatives on 2/9/2009
OOPS! I accidentally posted the MSM edited version of Marcy Kaptur’s speech on 1/15/2009 which was saved on 2/9/2009. You have probably all seen this. I think it was part of Michael Moore’s Capitalism: A Love Story, but no one has ever said this more clearly or better than Representative Kaptur:
.com/watch?v=kYLLqoVqouU&feature=related
I agree that Marcy Kaptur is awesome..! She is one of a handful of politicians who has tried to wake up the American people and speak the truth about the biggest fraud in history that has been committed against the American people….I love her anger and her passion when she says if your attorney cant put his or her finger on that mortgage they dont have that mortgage and that they lost the notes up on Wall Street..! I can watch her speeches over and over again..! We need to unify behind people like her. Ms. Kaptur pulls no punches with the powers that be and she calls them all out…! Ms. Kaptur is a true American patriot..!