Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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  Now that deflation is apparent to everyone (stockmarket down 50% and
homes down 50%), TARP money should be used to buy all owner occupied,
single family mortgage Notes at 50 cents on the dollar and then the US
govt should devalue all single family, owner occupied mortgages by 50%.
   By doing this, the govt. could effectively stop the deflationary spiral
and stimulate buying, which is what we need to stop this depression from
getting any worse.
   Most of this mortgage money, since 1968, was created out of thin air by
monetizing the perceived value of real estate in any case, so nothing of any
value was ever loaned. By devaluing the mortgages, a big burden would be
lifted off the middle class, which is basic to restarting the economic engine.
   Also, Mr. Obama and Congress need to revalue the Ft. Knox gold to $1,000
per ounze and start issuing "red label" US Notes to put AMERICANS back to
work on infrastructure and energy efficiency jobs. Congress must stop bor-
rowing private sector Federal Reserve Notes and leave them for the private
sector. Also they need to reback them with 20% gold.
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O -

Thats a good idea.

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    Apparently, the idea of returning to the gold standard and issuing US Notes backed by Fort Knox gold is a concept way beyond the ken of our
lawmakers. They are still talking about trying to borrow more Federal
Reserve Notes from the private sector to finance their bail out schemes.
    The problem with this is that as they soak up all the private sector
currency for government programs, they are making the chances for a
private sector recovery even worse.
     With gold at about $900/oz, revaluing Ft. Knox gold to $1,000/oz and
then using that asset for the issuance of "red label" US Notes is not that
far fetched. This is what FDR did in the 1930's and it worked well.
     Since trillions of dollars in asset value have vaporized in the last six
months, (no one knows exactly how much), the government could print
alot of US Notes without creating inflation. Also, new taxes, possibly
on energy would be necessary to gradually remove them from circulation
and prevent any resurgence of inflation. Devaluing mortgages would also
have to be part of the plan to get US out of this mess!
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To Mr. Obama,
 Dear Sir,
    I know you mean well but your recent "stimulus" package, in my humble
opinion is doomed to failure because it does not address the central problem
of our time, namely " Excessive debt".
    Once deflation got started, it would be very difficult to reverse. Your
mamby pamby half measures, in my opinion will have no effect whatever.
    Here is what you face: the total collapse of most world currencies into
runaway inflation, the total collapse of the US economy into runaway deflation, with the dollar trading at $50/oz of gold and most world currencies
(like the Euro and British pound) worth zero!
     Real estate in the US will be worth 10% of its 2006 value( if you can find
a buyer) and swarms of homeless people taking over foreclosures by adverse
possession since 99% of the Banks will no longer exist! Most States and local
governments will go belly up because employess can't be paid. Law enforcement agencies will have to be nationalized as part of the military.
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An open letter to Mr. Obama,
    After seeing you on the Jay Leno show, it is clear you are a very personable guy (or Goy as the case may be). Unfortunately, you are a
very "gullible goy" if you think that allowing the privately owned Fed
to buy Treasury Notes is going to help the situation. All this does is
transfer ownership of the debt from some private owners to the privately
owned Fed (which is owned by the member banks). It does not reduce
the overall debt of the US Government nor of homeowners whose Note
is owned by Fannie Mae or Freddie Mac.
    What this country needs is "Debt Reduction" not "Debt Transfer".
The only way debt reduction is going to happen is when you devalue
mortgage debt by fiat by at least 50% on the ground that the debts
were obtained by fraud using "fiat currency" by the banking system.
    To reduce the Federal debt, you will need to issue "US Notes" directly
to the American people for energy and infrastructure work. You will also
have to increase energy taxes to withdraw them gradually from circulation.
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Dear Mr Obama,
   I am sure you witnessed the April 15th demonstrations and I'm sure you now understand that "we the people" are not happy about you using tax-
payer money to bail out this "debt-usury, fiat, funny money system" that
was imposed on this country in 1968 and which allows the "insiders" to create
money out of nothing and loan it to us "outsiders" at interest so the "insiders"
can continue living off the "fat of the land" while the working class waits
on them "hand and foot" and their sons and daughters fight their unneces-sary foreign wars against people who did us no harm.
   Every "new" Federal Reserve Note" contains an interest charge to private
entities, mainly the "bankers club" members of the Federal Reserve System.
   The alternative to this "system" is to use the "National debt" as the basis
for the issuance of non-interest bearing "US Notes" and impose a tax on their
use in order to pay down the "national debt". TAXES ,NOT INTEREST, ON NEW MONEY CREATION! This is how Hamilton and the early FEDERALIST PARYT did it in 1790. Within 20 years the USA was debt free by doing this!
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Breaking news:
   "Our" government is thinking about converting the TARP loans to equity,
ie "stock" in the banks to whom they loaned all these "taxpayer" funds.
    This is an outrageous rip-off of the taxpayers. Most of these banks
(except Wells Fargo and Bank of America) are destined to fail, no matter
what the government does, so a conversion of "loans" to "equity" virtually
guarantees that the "loans" will never be paid back. As loans, the TARP
funds have a good chance of being paid back because the Government
would have a first lein on all the "notes" they are holding. These "Notes"
might only be worth 50% or less of face value, but at least they will be worth
something. Stocks could become worthless and probably will.
     AS long as Mr. Obama surrounds himself with "insiders" and "dual nationlists", he is incapable of putting AMERICA FIRST. Instead, he is
concerned with his standing among the "JAP" advisers he hired to help
him, but whose divided loyalty and "special interests" make it impossible
for Mr. Obama to get good advice on what needs to be done>
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If we had principal reduction in the housing industry it would reduce monthly mortgage payments automatically.  Then the loan modification could be used to bail out foreclosures.  Principal reduction could be used for homeowners who are not behind on their monthly payment, but need to reduce their payments.  Loan modification could be used for foreclosure and to reduce a homeowners monthly payments.  Maybe they should be handles in two separate issues with the same goal in mind.

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    Great idea! If the President and Congress would only listen to the voice
of the people, instead of the voices of the "special interests" who want the
current "debt-usury" system to continue, then the problem would be solved.
    Under the current "system" only the principal of the loan is created, not
the "interest". This makes such a system unsustainable over the long term
and guarantees a "deflationary depression" because there is not enough
"interest free" money in circulation to pay back both the principal and the
interest. One or the other has to give!
     Prior to 1968, the USA had three types of currency in circulation:US Notes (red label), silver certificates (blue label) and Federal Reserve Notes
(green label). The first two were issued interest free directly by the US
Treasury, where as the last one was issued by the private banks (Fed)
and carried an interest charge. We need to bring back the "interest free"
US Notes and place an energy excise tax on them to pay-off the National
Debt. This combined with a cross the board "mortgage reduction" of 50%
would free up enough cash to both pay-off the US debt and move the eco-
nomy forward, while the USA updates its energy infrastructure.
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                               Good News for a Change!
    On April 28,2009, the Obama Administration made some significant changes in the Fannie Mae/Freddie Mac "loan modification" possibilities
which includes Second Mortgages in the program.
     Also, they are in the process of adding FHA loans to the program which
involve lowering the principal of "underwater" homeowners with no equity
down to a level where they have some equity again. In many cases, it
appears this could result in substantial "write downs" of the "principal"
owed, in line with what we've been asking for. So apparently the President
and Congress have been listening to us. The exact details of the program
are not yet available but to stay informed, go to the websites: making home and for FHA loans, HOPE FOR HOMEOWNERS PROGRAM.
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                                 Continuing Good News!
     Today the US Senate approved a revision to "Hope for Homeowners" by
a margin of 91 to 5, which would allow homeowners with FHA loans to modify
their mortgages by "writing down" the principal owed to 96.5% of "market
value". Given that deflation has left millions of homeowners "upside down"
and "underwater" on their home mortgages, with no equity left, this is really
good news.
     It now has to go to committee to work out the differences between the
House and Senate versions before it goes to the President for his signature.
So all of you who were thinking of sending your server some "jingle mail",
don't do it. Your equity has been restored along the lines of what we had
been calling for.
     For those of you participating in the "50%" mortgage strike, keep up the
good work, and don't give in! Help is on the way!
     Now, let's concentrate on getting rid of this "debt-usury" slave system
and return to a debt free America and a Constitutional monetary system!
 "All for one, and one for all! Long Live America the Free and the Brave"!   
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Dear Mr. Obama,
    Your appearance and speech at Notre Dame was excellent, you are obviously a very intelligent, charismatic leader. Unfortunately, you are
being badly advised on a number of issues which effect the housing situation in the USA.
    For example, the cap and trade energy tax is a fiasco based on a false
premise, namely that CO2 is a "cause" of "global warming rather than a "symptom" of a more serious underlying problem. With all due respect to Al
Gore, he is not a scientist. He has pointed to "CO2" as a cause, when in
fact both "global warming" and "the rise in CO2" are merely symptoms of
the real problem, "deforestation". FDR, back in the 1930's had a better grasp
of this problem than anyone does today. He witnessed the heat waves and
"dust bowls" of the time. His response was to create the "CCC" and put youth
to work "reforesting" the landscape of America.(CCC = Civilian Conservation Corp). An excise tax on energy makes sense in order to balance the Federal
Budget (or on beer,marijuana, or soda pop for that matter) but it needs to be combined with debt reduction by fiat, ie a 50% mortgage reduction in order to free up the cash for the "excise tax" to reduce the National Debt!
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Washington seems to have great difficulty understanding Cause and Effect.

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   You're right about that, as evidenced by Mr. Geithners interview with Congress this morning. All they could talk about was how to get the banks
lending again (ie get US borrowing again at interest). In their Debt-Usury
system, no new money comes into existence unless someone takes out a
loan. As debts get liquidated, the money supply contracts and the deflation
gets worse, causing even more people to default on their debts.
    As many economists from the 1930's stated, new money has to be issued
by the government interest free and spent into circulation on infrastructure
and CCC type jobs. This way people can pay down their debts. This is why
FDR bought up all the gold coin at $20/oz, put it in Fort Knox, and then revalued it to $35/oz, so he could start issuing "interest free" US Notes directly to the people without the "banksters" charging their pound of flesh
in interest. The "mugwump" Republican morons critisize FDR for doing this,
but in fact, it was the right thing to do at the time, as my own father who
lived through the Depression testified to me. Before FDR, Americans were reduced to "barter" because there was almost no money in circulation. A $5 US Note =$50 in todays money, perhaps even more, and that was a weeks salary for a young worker. It put alot of people to work on useful projects!
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Pres. Obama Signs Helping Families Save Their Homes & Fraud Enforcement and Recovery Act

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I was thinking about restitution for African American and people do not want money.  I think it would be wonderful if African American receive a 5 - 10%
permanent preference points like the Veterans. It could be implemented easily and would have a lasting effect on generous to come.
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4 Justice Now
I believe I have given up on our president and congress. They continue to do their utmost to protect the banksters and fraudsters, and then totally ignore their victims. The suggestion that Mike and many others here have made makes total sense, yet nobody in Washington is even willing to discuss it.

The criminals intentionally inflated home prices and passed out predatory loans as though ethics, morals, common sense and the law itself no longer applied.  Why not normalize the balance owed on mortgages now? Is it now acceptable to defraud the working class? After all the price many paid for their homes was a direct result of intentional fraud and organized crime. Cut the principal owed on mortgages by 50% and most home owners will be able to retain their homes (assuming the "servicers" aren't then allowed to steal them) and they will be able to spend more of their income in order to support the economy. Anything else is short sighted and criminal at best and will never even begin to compensate those who have been scammed, etc.

My Opinion


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4 Justice Now

Mike, I'm so very glad that reason won, and the moderators didn't attempt to ban you from this site, as the anonomus but very obtuse fellow wanted.


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great comments!!!

What really bites my butt is the dishonest "loansharks" make money off the foreclosures, get the property back, probably collect on an insurance policy, then get a summary judgement (for the unpaid balance with interest) to boot in many cases. 

Damn, how many times do they get to collect on the same loan/property?  It does look to me like one transaction can be quite lucrative for a company that might have dishonest employees.

And Mike, I too am glad you didn't get banned even though you too can irritate me.  I would rather get ticked off at you than not have you around.
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I started to inquire about the Obama Home Retention Plan and I was advised by Bank of America that if you are behind in your mortgage payments that they will help you by adding the payment to your principal balance.  This plan is just for homeowners who are behind on their monthly mortgage payments.  The letters have already been sent out to people who qualify.  I thought the plan was also for homeowners who are on the option arm plan or need to lower their monthly payments, but it isn't for everyone.

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Since the first Obama Home Retention Plan is to assist homeowners who are behind on their monthly mortgage payments and the banks are adding this to their prinicpal balances.  Maybe Obama's should lower the principal balance on all mortgages since we are in a upside down market.

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National Australia Bank Fraud Case Gets U.S. High Court Query -

National Australia Bank Fraud Case Gets U.S. High Court Query
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By Greg Stohr

June 1 (Bloomberg) -- The U.S. Supreme Court signaled it may consider how far the country’s securities fraud laws extend overseas, asking the Obama administration for advice on a shareholder lawsuit against National Australia Bank Ltd.

Australian shareholders of Melbourne-based NAB want the justices to review a federal appeals court’s decision that the suit was beyond the jurisdiction of U.S. courts. The investors’ appeal says HomeSide Lending Inc., formerly a Florida-based mortgage-service subsidiary of NAB, fraudulently overvalued its assets, eventually forcing $2.2 billion in writedowns.

Should the high court take up the case, it would become one of the top business disputes of the nine-month term that starts in October. The U.S. Chamber of Commerce, the Securities Industry and Financial Markets Association and the Securities and Exchange Commission all filed briefs when the dispute was before the 2nd U.S. Circuit Court of Appeals in New York.

The justices directed their request today to U.S. Solicitor General Elena Kagan, the administration’s top courtroom lawyer. She will receive input from the SEC, which supported the investors at the appeals court.

The case stems from NAB’s disclosure in 2001 that interest- rate assumptions used by HomeSide in a valuation model were incorrect and caused inflated estimates of mortgage-servicing fees. Writedowns in 2001 caused the bank’s American depositary receipts to fall more than 11 percent.

Fraud in the U.S.

The shareholders contend that the core of the alleged fraud occurred in the U.S., giving American courts jurisdiction to consider the case and apply U.S. securities laws.

“Every false statement made by NAB concerning HomeSide’s operations, results and value was a repetition of the false financial information that HomeSide concocted in Florida for the very purpose of misleading NAB’s shareholders,” the appeal argued.

The 2nd Circuit rejected that reasoning, noting in its 3-0 ruling that NAB compiled and issued its public statements in Australia.

“The actions taken and the actions not taken by NAB in Australia were, in our view, significantly more central to the fraud and more directly responsible for the harm to investors than the manipulation of the numbers in Florida,” the three- judge panel said.

NAB told the Supreme Court that “every single one” of the alleged misstatements and omissions were made in Australia by the parent company. NAB acquired HomeSide in 1998, then sold it to Washington Mutual Inc. in 2002.

Courts around the country have used different standards to determine whether judges can consider so-called “foreign cubed” lawsuits, those that involve non-U.S. plaintiffs, corporations and markets.

The case is Morrison v. National Australia Bank, 08-1191.

To contact the reporter on this story: Greg Stohr in Washington at

Last Updated: June 1, 2009 10:03 EDT

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    Despite Mr. Obama's best intentions, he can not stop deflation because
the banks refuse to lend and are cutting lines of credit even on people with
excellent credit.
    With the current monetary system, new money only comes into existence
when someone takes out a loan. Only the principal is created, not the interest. This is why FDR created a tripartite monetary system using "interest
free" US Notes and Silver Certificates to counterbalance interest bearing Federal Reserve Notes issued by the member banks. This system worked well
from 1934 to 1968, when LBJ and the Democrat Congress destroyed this
"tripartite currency system" and replaced it with the current "debt-usury"
fiat money system containing only interest bearing "Federal Reserve Notes".
    Unless Congress adresses this issue soon, we might as well all cease making any future mortgage payments because the entire country is condemned to foreclosure sooner or later. It's like the old game of musical
chairs, where chairs keep being removed, until only the last player is left.
Instead of chairs, imagine money being removed from the system, until
only a few winners are left in the game. Everyone else will be on the street!
The solution is across the board debt reduction before it's too late.
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Dear Mr. Obama,
   I have followed your attempts to get some kind of "national health insurance" passed. Unfortunately, you are not really explaining it so the
American people can understand it. This allows the "mugwump" Republicans
who "know nothing about it" to derail your plan. As a small business person,
let me see if I can help you.
   Most Americans who work, (ie 66%) are covered by three insurance policies. At work, it's called "workmens comp", while driving to or from work,
it's called auto "personal injury protection" and liability for hurting someone
else while driving, and then when one arrives safely home, it's called standard
"health insurance" in case you burn yourself on the "barbie" or have a heart
attack from eating too much "cholesterol" as you wolf down that "steak" which makes US so "overweight".
   Why don't you explain to the American public what a gigantic "rip-off" this
whole system is, which allows a few "chosen" to live off the earnings of the workers while denying claims when a "worker bee" actually gets sick or injured or eats too many "dead cows"!
   We Americans pay more for health insurance than any country in the world
but when we get sick, we never know if "it's covered" in spite of paying the
premiums for years. This is something even Rush Limbaugh can not explain.
Americans should not have to go bankrupt when they get sick. On the other
hand, they should pay a penalty for murdering so many cows,( even though the cows get even by clogging up the arteries  of the dumb Human Beings who ate them!)
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Good Morning,

I have been accepted into the HOMR (Home Owner Mortgage Restructuring)
Program as of May 4th. The timeline is between 60 to 90 day to successfully negotiate my current mortgage with Investors Finance Inc. I am very pleased regarding this matter.  Things are looking brighter and it is all good.

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    Well, here we are a year later, and nothing much has been done on the
mortgage issue. Many servicers "pretend" to be working on a "modification"
while moving full speed ahead with the foreclosure.
     Property values are still in a tailspin for most owners, leading to more
and more defaults and deflation (which might turn out to be a good thing).
     The problem with the modification and "cram down" of principal is that
it is very unwieldy and difficult to accomplish. Perhaps a better idea is a
moratorium on mortgage interest rather than a "cram down" of principal.
This would be easier to put into effect and keep many more people in their
homes until the crisis is over and a "new" monetary and financial system
emerges with an end to USURY and a return to "Constutional" money, like
we had before 1968.
      The death throws of the current "debt-usury" system can be seen in
Greece and Mexico, two countries that are "imploding" due to excessive
      It may be that Alexander Hamilton was correct when he predicted over
two hundred years ago, that America would one day annex Mexico and
make it part of the USA. It may be that the only way to stop the chaos
on the border is to bring America to Mexico, instead of bringing Mexico
to America. Mexicans are voting with their feet, that they would rather be
Americans, than continue to suffer under the Tyranny of the Mexican system. What say you? Should America annex Mexico so Mexican refugees
won't have to leave home to find a job? Jesse Ventura likes it down there
so if Mexico were part of America, many of US could join Jesse and live
down there part time. That would create better conditions on both sides of
the border! Then the media could focus on the real problems in the USA,
like the current "debt-usury" system and its ellimination!
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