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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arkygirl
We will not rid ourselves of greedy thieves so easily.....we will just shift everything over to another greedy pack of thieves!

Updated: The REAL Story on Countrywide

4:54:56 PM January 10th, 2008
                                                                        Permalink  |                                           Comments (89)                                                                                                        

Updated to show Jon Najarian options insight.

We’ll know it soon enough, but with the leak that Bank of America is near acquiring Countrywide, several things would appear apparent (at least while we’re playing the guessing game):

1. The Fed is behind the deal.
2. The Fed is behind the deal because the rumors yesterday of a near bankruptcy were probably true.
3. As part of the deal, the government likely agrees to guarantee BofA against Countrywide-related losses.
4. Lost in the in the noise yesterday was that Moody’s downgraded the ratings on 30 (count ‘em — THIRTY!) tranches of Countrywide’s mortgage debt by more than a few notches. They did something similar before American Home Mortgage filed for bankruptcy.
5. Investors bid the stock higher assuming a premium when it’s likely that BofA still needs to fully assess the value of the assets before the deal’s full value will be known.
6. Big question, of course, is what Countrywide investors will get.
7. Rule of thumb with bankruptcies: Stocks often double on their way to zero.
8. BofA gets a free bank and a put to the government.

Menawhile, Jon Najarian of Optionsmonster.com writes, “To say there was HUGE unusual activity in Countrywide Financial ahead of today’s news that Bank America was close to finalizing a deal to buy the troubled mortgage giant would be as surprising as seeing Dennis Kucinich end his presidential run! We show over 304,000 calls traded against 248,000 puts, but the interesting thing here is that the bulk, some 76 percent of these calls were bought before the announcement! To us this means the likelihood of someone being tipped off was quite high. Like Burj Dubai Tower high!”

Onward.

http://blogs.marketwatch.com/greenberg/2008/01/the-real-story-on-countrywide/
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Media Spin

Countrywide rescue would be boon to regulators

A takeover of the troubled lender would prevent further damage to the mortgage market and economy, analysts say.

WASHINGTON (AP) -- A Bank of America bid for Countrywide likely would come as a relief to federal regulators, analysts said.

By purchasing Countrywide, Bank of America Corp. would prevent the largest U.S. mortgage lender from filing for bankruptcy and thereby avert significant damage to the home-loan market - a mess the Federal Reserve and other agencies desperately want to avoid, and one that poses far greater risks to the economy than mortgage industry consolidation.

The Wall Street Journal and The New York Times reported online Thursday that a deal was in the works, citing unidentified people familiar with the deal. The transaction would put the country's largest mortgage lender in the hands of the largest U.S. bank by market capitalization.

Bank of America was expected to announce as soon as Friday morning a deal to acquire Countrywide, which ran into trouble last year when it got hit by a surge of defaults, especially among buyers with poor credit.

The potential deal is "by far the most palatable way to resolve Countrywide's problems" said Guy Cecala, publisher of Inside Mortgage Finance, an industry newsletter.

Cecala said a failure at Countrywide would put the mortgage industry and its regulators in the extremely uncomfortable position of trying to figure out who would be responsible for collecting payments on millions of home loans. It could also be a huge blow to government-sponsored mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE, Fortune 500), which are major buyers of Countrywide's loans.

For the first nine months of 2007, Countrywide was the largest U.S. mortgage lender, while Charlotte, N.C.-based Bank of America ranked fifth, according to Inside Mortgage Finance.

A Bank of America-led buyout is "the one and only hope that (Countrywide) has" to avoid bankruptcy, said Sean Egan, managing director of independent ratings firm Egan-Jones Ratings Co. Egan-Jones warned earlier this week that Countrywide could "falter" unless it receives an infusion of $4 billion in capital within the next two weeks.

A combination of Bank of America and Countrywide would require approval from the Federal Reserve, and possibly other agencies. Banking regulators declined to comment on the reports.

Federal law bars banks from making acquisitions that would increase a bank's market share to 10 percent of U.S. deposits, and Bank of America is nearing that point at 9.88 percent. However, experts disagreed about whether deposits held by Countrywide's federally regulated thrift, Countrywide Bank, would count toward that limit.

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by lowering interest rates and losing deposits to competitors.

It wasn't clear how quickly a deal might be struck for Countrywide, which has been roiled this week by rumors that a bankruptcy filing was imminent. The Journal reported that negotiations between the two companies could fall apart.

Bank of America, which took on a 16 percent stake in Countrywide over the summer, said it does not comment on market rumor or market speculation. Countrywide did not return calls or e-mails seeking comment.

Countrywide (CFC, Fortune 500) shares climbed $2.63, or 51.4 percent, to close at $7.75 Thursday, while Bank of America (BAC, Fortune 500) shares rose 56 cents, or 1.5 percent, to $39.30.

Countrywide's stock plummeted in recent days to record lows amid intensifying anxiety among investors over a continuing surge in defaults and foreclosures afflicting the Calabasas, Calif.-based lender and others in the mortgage industry. Last August, the mortgage lender drew on an $11.5 billion line of credit to steady itself.

Bank of America aided Countrywide by buying $2 billion in the form of nonvoting, convertible preferred stock. The shares can be converted into common shares of Countrywide at $18 per share. If Bank of America should convert the shares, it would hold between 16 percent and 17 percent of Countrywide shares. To top of page

 
 
 
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Gumshoe

"prevent further damage" ? When will spin masters get over epidemic cranial rectal inversion?
What we are witnessing is the breakdown of modern day banking system. 

This is a systemic global banking crisis.  


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arkygirl
Why all the double speak about regulators? There are NO regulators. "The Regulators" are another government con job to make the American people feel better; they hope we assume that "The Regulators" are on the job to protect us.

"The Regulators" exist only to help the fraudsters cover up their tracks. Heaven forbid that "The Regulators" might have to figure out how to straighten up a mess of their own creation. That might require some brains and a little work.

If we ever had any doubt that government is in bed with the banking industry this unfolding fraud story should clear it all up for us. Their only worries are for the banks and the crooks, period. Their biggest worry is trying to figure out how to hide the fact that the government and the banks are insolvent, so they keep shuffling the deck for show.

I firmly believe that we are all going to hit the wall by late this year or early next year. The game is over for all of them. And, unfortunately, maybe for all of us, too.

On a brighter note, the FBI will have to scale back its surveillance of Americans since it seems that the government is unable to pay its phone bill. Boo hoo.

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srsd

AMEN ARKY....!!!!  I think the people on this board should be the regulators...since we are the one`s involved in this mess we are probably more qualified than any person that is called a regulator.

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So?
Get a grip people. There is a shorting side of the market that makes a killing off planting rumors and getting bad news out there. The opposite of pump and dump is short and trash.




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Who in their right mind does not believe that the FED, has "Conspired" with the major banks to take over Countrywide, and WAUMautual?  Lowering the discount rate, forgiving fee's for going over the lending limits! 
 
What Bull!   The FED is attempting to save off the crisis!  at the Tax Payers Expense, next year when your costs of food and everything else goes up, because the dollar has been devalued, remember these deals!!!!
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JCD
FWW:

Are they ever going to acknowledge and/or address the real victims and what has been extorted and/or stolen from them? Are they ever going to stop handling these scumbag lenders/servicers with kit gloves, and make them accountable for their pitiful crimes? Will they at the very least make the criminals disgorge themselves of all their ill gotten gains?

My guess would be NO on all counts. We as the American middle class have been sold out by our own government and by the agencies who's salary we pay. We pay to borrow our own money, which is then stolen, and the people who we pay to protect us from these criminals totally ignore us in favor of the banks and others who would gladly take their money if only they were given the chance.

That's certainly one very F'd up system!
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Nice... The Fed helps to bail out Countrywide after Countrywide turns Katrina victims into MSF victims. I do believe that I'd be a tad perturbed with this latest development were I one of the Katrina or Rita victims...

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You're right Gary the Fed is covering for itself and passing the losses on to us. People think the IRS is used to collect taxes to pay for government services but the IRS and the Fed were formed the same year 1913 and the web is more tangled than it appears.

The Fed is a government sponsored monopoly of private interests and it's in charge of our entire economy and monetary system.

We see the Fed keep fighting for preemption while they do little to investigate fraud and it's in their financial interest to look the other way.

If you think it would be bad for the Fed for financial fraud to cause a recession or depression and that would be self destructive, that they have certain interest in a solvent economy and lending system, that is a false assertion the mortgages are backed by our equity in the first place and they gain millions of homes and even business interests in a massive nationwide default.

What I'm trying to say is that just as the lenders/servicers profited from our manufactured defaults the Fed members would profit greatly from a manufactured default of the U.S.

Would they do something so horrific to our whole nation? That may be beside the point because under a system where debt is profit and the IRS will feed the debt created by default it's certainly in their interest to allow it to happen.

For all practical purposes there is no separation of interests between fraudulent profiteering and government interests.

It's not the way it's supposed to be it's not the way we are told it is but sadly it is what it is.

The biggest problem is that people are likely to panic and ask the government/bank hybrid to bail them out and bury us in debt and dependence to the point of being a 3rd world nation.

The founding fathers warned us greatly that debt, taxes and monetary manipulation was for more likely to destroy the Republic than an external enemy.  We can see in the long run we are more likely to lose to domestic and foreign financial terrorism than religious/political extremism terrorism. 

Diversion of external threat and internal conflicts, debt and purchase of the debt are a more effective tool to take over a nation because the population is self motivated to engage in the self destructive behavior of spending and borrowing it's way out of debt and outsourcing to obtain affordable products and services.

It seems to be easier and more profitable to sell the public on fear and acceptance of failure than hope and achieving success. Entropy and seeking the lowest energy state are natural laws to live in an organized, prosperous and peaceable society requires effort and thought. The politicians and lenders are all to glad to offer to provide us with both of those services at the cost of debt slavery and dependence.
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Another prediction based on information is that Washington Mutual will be purchased by MORGAN STANLEY!
 
The next big banking failure! and take over the FED is involved with!  Talk about regulating a crisis?  wow,
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Interesting Gary an investment firm buying the lender I would have thought BoA, Citi,
J.P. Morgan, Bankers trust/ Deutsche in a Fed arranged buyout. They all work hand in hand so it wouldn't surprise me.

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