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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Homeowner fights foreclosure in lawsuit claiming documents are fraudulent


Marcia Heroux Pounds, Sun Sentinel
August 20, 2010

After months of wrangling with CitiMortgage, Dennis and Joyce Brown got fed up and hired an attorney to fight CitiMortgage’s foreclosure on their Lauderdale Lakes home. The Browns claim they are victims of fabricated documents used to foreclose after CitiMortgage failed to credit them for mortgage payments.

“They ran my blood pressure up so bad,” said Dennis Brown, who hired Fort Lauderdale lawyer Kenneth Eric Trent to fight the foreclosure.

CitiMortgage and its lawyers, David Stern Law Offices, voluntarily withdrew the case against the Browns in Broward County Circuit Court on June 16. But the Browns can’t rest easy. Recently, they’ve received new foreclosure letters from another lawyer representing CitiMortgage.

The Browns’ story is just one example of foreclosures resulting from allegedly fraudulent mortgage assignments and other tactics that “eliminate due process for the homeowner,” Trent said.

He also is suing Stern and his Plantation law firm in federal court in a separate foreclosure case with similar allegations.

In that lawsuit, on behalf of Oakland Park homeowner Ignacio Damian Figueroa, Trent contends that Stern and a mortgage registration firm generated fraudulent mortgage documents that are intentionally ambiguous to cloud the real ownership of the Figueroa’s mortgage note.

The foreclosure practices of Stern and two other law firms are under investigation by the Florida Attorney General’s Office. The attorney general recently requested records going back to Jan. 1, 2008, from Stern as well as The Law Offices of Marshall C. Watson, P.A., and Shapiro & Fishman, LLP.

Thousands of Florida homeowners may have lost their homes as a result of improper actions by the firms under investigation. In announcing the probe, Attorney General Bill McCollum, a Republican who is a running for governor, said the law firms may have presented fabricated documents in court to speed the foreclosure process and obtain judgments against homeowners.

Jeffrey Tew, a Miami attorney who represents Stern’s firm, said while the attorney general may have received complaints, there “will not be evidence of fraud.” Due to the large volume of foreclosures, there may have been clerical mistakes, he said. “In past two to three years, the Stern law firm has processed probably 100,000 foreclosures.”

But he disputes that Stern’s law firm fabricated any documents. “I haven’t seen any example where a bank didn’t have a mortgage in default,” Tew said.

Stern represents well known mortgage lenders including Bank of America, Chase, CitiMortgage, Inc., Fannie Mae, Freddie Mac, HSBC, SunTrust, and Wells Fargo. These lenders also are the shareholders of Mortgage Electronic Registration Systems (MERS).

MERS is at the heart of the matter for Trent and other lawyers trying to stop what they view as illegal foreclosures in the nation.

The mortgage registry was created by lenders in the early 1990s to track home loans, including those repackaged as securities and sold to investors. When such loans were in foreclosure, MERS – not the original lender — was often the entity foreclosing. Some lawyers have successfully fought foreclosures by contending that MERS doesn’t own the note, or the borrower’s obligation to repay.

University of Utah law professor Christopher Peterson said MERS mortgage processing system goes against long-standing principles of property law in assigning rights to a note or mortgage. He said the “owner” of a mortgage can’t be the same as the “agent” representing the homeowner, for example.

Yet MERS records “false documents” with names of people who are not executives of the registry system, but often paralegals and clerks of law firms, he said. “It’s an extremely controversial and arguably fraudlent practice,” Peterson said.

Merscorp spokeswoman Karmela Lejarde declined to comment on the criticism of MERS or Trent’s lawsuit, citing company policy not to comment on pending lititgation.

Tew, who represents Stern’s Law Offices, called Trent’s lawsuit “fiction.” He points to Florida’s 5th District Court of Appeal that ruled in July against a homeowner who tried to fight foreclosure on the basis that MERS didn’t own the note or mortgage.

For the Browns’, foreclosure troubles began with not getting credit for their payments from CitiMortgage, their mortgage servicer.

The couple says they couldn’t clear it up with the lender. “They were claiming I was behind in payment, but I was paying every month,” said Brown, a carpenter who works for the Broward County School System and whose three children and four grandchildren also live in his Lauderdale Lakes home.

They stopped paying on their mortgage in late 2007 and sought legal help.

Another issue in Browns’ case is the signature on the assignment of Brown’s mortgage, giving rights to CitiMortgage, Trent said. The signature is by Cheryl Samons, who is identified as “assistant secretary of Merscorp.” In reality, Samons is an employee of Stern’s law office.

Tew confirmed Samons’ employment by Stern, but said “it’s very common for companies to appoint a registered agent. That process is absolutely legal and normal.”

But Trent contends that mortgage assignments need to be made on personal knowledge, not hearsay, to be admissible in court.

The Browns could be facing another foreclosure action, but Trent said he is confident he can fight it again. “They don’t have the basis to foreclose,” he said.

CitiMortgage spokesman Mark Rodgers said privacy restrictions prevent the financial institution from discussing a customer’s foreclosure action. But Rodgers said procedures may resume in cases “where, despite our best efforts, we have been unable to arrive at a satisfactory resolution acceptable to all the parties involved.”

Tew said foreclosure defense lawyers are portraying homeowners who have defaulted on their mortgages as helpless victims. “Everyone is sympathetic, including us, for the homeowner who can’t pay his mortgage. But it’s not fair to paint the banks and law firms that represent them as wearing the black hats.”

Marcia Heroux Pounds can be reached at mpounds@sunsentinel.com or 561-243-6650.

Browns’ Assignment of Mortgage & Vol. Dismissal below:


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Margaret
Looks like the witness signature is the same as well. If this type of stuff is that obvious, we should be able to find more like this.

My husband and I have begun looking through Clerk Of Court's site to see what we can find. This is not clerical mistakes and I hope if any of you are reading this that you get what is coming to you.
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Margaret
Also, the notary stamp looks to be fraudulent as well. In Florida you can look up a Notaries License. If you look up a Shannon Smith, which the stamp says is the notary on this document it shows a Shannon Smith at the same address as the Law Offices of David Stern. The number she has been assigned is not the same number on that stamp. The expiration date is though, right down to the date. 4/13/12

Commission Detail

Notary ID:1225454
Last Name:Smith
First Name:Shannon
Middle Name:
Birth Date:07/03/84
Transaction Type:NEW
Certificate:DD 778121
Status:ACT
Issue Date:04/14/08
Expire Date:04/13/12
Bonding Agency:Huckleberry Notary Bonding, Inc.
Mailing Address:900 S. Pine Island Road
Suite 400
Plantation, FL 33324


http://notaries.dos.state.fl.us/NotSearch.asp

How do you explain that one?
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Amused
You have to hand it to Shannon SMITH!  She seems to be really putting in overtime fabricating evidence in support of her employers' cases!

And you have to admit, she probably did WITNESS her own signing of the fabricated instrument.  And to then authenticate it, too!  More than a little irregular, but definitely hard working!

Someone in Florida should take these copies and file a Complaint against Ms. SMITH with the Florida Department of State! 

In a non-foreclosure matter in which I was previously involved, a notary furnished a fabricated authentication at the written request of a law firm's secretary (which letter we obtained through discovery).  The person, whose signature she authenticated was already DEAD.

An allied party filed a complaint with notary supervisory authorities for that jurisdiction and the notary's commission was lifted (surrendered).

Another complaint was filed against the secretary (also a notary) of the law firm who requested the forgery of the authentication.  She was given a warning, but allowed to keep her commission.  No disciplinary action has been taken against the attorney whose firm orchestrated this statutory forgery.

But the plaintiff did voluntarily dismiss the suit and it has never been refiled.

Having a completed disciplinary action against an employee of the plaintiff's attorney can only be helpful when the suit is refiled!
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