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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90% of all residential mortgages today are sold to the Government Sponsored Enterprises (Fannie, Freddie, etc). The reasoning behind this is the fact that the government backs (guarantees) the mortgage back securities sold by the gses. The GSEs, in years past could raise funds on a par with the US Treasury which no competitor could match. As a business person, I never heard of anyone having a 90% plus market share to begin with (the first red flag).

According to the “GSE Business Model” all “players” (lenders, servicer, securitizers, insurance, etc. etc), must abide by Fannie Mae “Guidelines” which protects and addresses the safety and soundness of the mortgage-backed securities. Every player in the chain of this Model incorporates the “boilerplate” GSE Guides as a minimum standard. It is that very same language inherent in the agreements between “players” that is now resulting in lawsuits across the board.

The “investors” are not innocent in this transaction as any simple due diligence by any of the “players” would have resulted in a determination that all along the line of the Model, there was a failure to abide by the “Guidelines” set as the minimum standard.

The following is an exchange I had with Bank of America chairman Ken Lewis during the annual shareholder’s meeting in 2005:
Bank of America Corporation 2005 Shareholders Meeting - Final
FD (Fair Disclosure) Wire
May 11, 2005        

KEN LEWIS, CHAIRMAN AND CEO, BANK OF AMERICA CORPORATION: Thank you, good morning. It's my privilege to call the 2005 Bank of America Corporation Annual Shareholders' Meeting to order. I'm Ken Lewis, Chairman of the Board of your Company. Joining me on the stage is Bill Mostyn, our Corporate Secretary……( to the Davet exchange)

RICHARD DAVIT, STOCKHOLDER: Yes, Mr. Chairman, Richard Davit (ph), shareholder and stakeholder. As you're aware, investors worldwide cannot help but pickup the frightening news on a daily basis about the gross irregularities at Fannie Mae. As recently as April 6, 2005, Mr. Armando Falcon, Director of the Office of Federal Housing Oversight or OFHO, testified before Congress before a House Financial Service subcommittee citing numerous violations by Fannie Mae of the generally accepted accounting practices or GAAP.

These GAAP violations undermine the confidence in the safety and soundness of Fannie Mae activity. As you know, Bank of America is a loan servicer for Fannie Mae and Fannie Mae, therefore, could require Bank of America to repurchase its portion of the $1.5 trillion in notes that their portion serviced by Bank of America. If Bank of America fails to follow the very strict guidelines proffered by Fannie Mae as part of its charter bestowing Fannie Mae with the full faith and credit of the U.S. Treasury. Consequently, Bank of America stockholders face a huge liability if Bank of America is found not to be in full compliance with Fannie Mae guidelines.

Recent reports indicate many problems with the loan servicing industry with predatory lending legislation sweeping the country. Consumers are demanding that mortgage servicers be stripped of any exemptions previously enjoyed by banks making them subject to all debt collection statutes, which they claim is the essence of the business.

Pre-dating Enron, I've been in contact with the management of Bank of America, as well as Mr. Guinn, the Chair of the Audit Committee and its members calling to their attention the numerous violations by Bank of America to Fannie Mae Guidelines. For years, when possible, I've attended these annual meetings to attest to these violations. To date, Mr. Guinn and the other members of the Audit Committee have been derelict in their duty to respond pursuant to their fiduciary responsibility to all shareholders and stakeholders.

I have basically three interrelated questions. One, so that Bank of America stockholders around the world can gauge their potential liability, how can Bank of America assure its stockholders that Bank of America is in full compliance with all of the Fannie Mae guidelines with respect to the millions in loans Bank of America services for Fannie Mae? What specific policies and procedures followed on a daily basis are in place to ensure full compliance? And what methods are in place to audit for that compliance? And how can shareholders acquire a report of that audit of compliance?

Two, in light of Sarbanes-Oxley, can Bank of America Audit Committee, management and legal counsel and members of the accounting firm be personally and criminally liable for the failure to comply with the Fannie Mae guidelines?
And three, will it be necessary for me to again raise these issues at the next year's stockholder meetings or should I go elsewhere to take action?

KEN LEWIS: Elsewhere would be fine. I don't recall the issues that you've had before being issues. It seemed to be more about your mortgage, I thought, than what you're talking about now.

RICHARD DAVIT: The mortgage activity gave me a window of opportunity to look into this situation. And if you have consulted with your Audit Committee, it's clear that I've brought these issues to their attention.

KEN LEWIS: And the Audit Committee has looked into every single issue and have looked at them in depth and have said that we feel that we are complying with all of the issues that would arise around Fannie Mae or Freddie Mac and we're in compliance. And we have looked very - in great detail and we do have audits of our procedures. And we think that you're incorrect with your assessments.

RICHARD DAVIT: So, you say that you are in compliance with all the Fannie Mae guidelines?

KEN LEWIS: Yes, to the best of my knowledge.

RICHARD DAVIT: Your Audit Committee has evidence to the contrary, sir. Thank you.

The moral of the story……………………………………….it is the “GSE Business Model” that is fatally flawed. In my case, supposedly FNMA made Bank of America repurchase my mortgage as they wanted no part of me asking them why BAC miserably failed to abide by the Guidelines in servicing my mortgage. It starts with Barney Frank and Christopher Dodd putting their imprimatur (guarantee) on the securities, and ends with the “investor” who now wants their money back based on the “boilerplate” language inherent in their agreements. Everybody looked the other way as long as they were receiving a check……when the checks stopped………..the taxpayer must step up. This is a sham, both criminal and treasonous.
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angry n not taking it
are you the same RICHARD DAVIT?
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Philip S.

Come on now James u know that's the same guy, and look he confirms what i've been saying that the investors are not innocent

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all i know is that i am not a deck of cards neither are my children.  GOD help those who think they are above the almighty!, and that does not mean the earthly rulers!!!!!!!

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angry n not taking it

i'm not james..
but i was hoping R DAVIT would reply so to attest to
a-yes..he posted it.
b- possible exchange of communication between R DAVIT & myself.

and yes i agree you were correct in your assessment !!!!!!
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It wouldn't surprise me if it's R. Davet. He's posted on here before. Been a while since he has but he has before.
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