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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H.R. 788 To provide a safe harbor for mortgage servicers who engage in specified mortgage loan modifications, and for other purposes.


Castle legislation to encourage loan modifications passes committee


On the surface this 'safe harbor' would appear to offer servicers protection from investors and insurers but some of the language seems open to interpretation as to whether it would also apply to consumers. 

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Ok, I actually read the bill.  I think this bill will backfire on the mortgage servicers for one specific reason in the bill.  We all know that one of the legal arguments against foreclosure is the inability of the servicers and others to prove ownership of the underlying note.  The bill, in the last paragraph (shown below) actual codifies the definition of a 'Securitization Vehicle" but adding, at the very last line, ... " (2) holds such mortgages "...

Well, thank you Congress for this bill.  If the definition of a Securitization Vehicle is an organization that HOLDS the mortgage then moving forward in any lawsuit to enjoin a foreclosure just cite H.R. 788 and demand proof that it is the actual Securitization Vehicle suing for foreclosure and they hold the note pursuant to this new Federal Law. 
What an amazing turn of events.  If the trust can prove they "hold the mortgage", the servicer does not have safe harbor under HR788!

These trusts never file suit.  They can't.  The PSA agreements universally state that the trust can't order the trustee to file suit unless the trust indemnifies the trust AND a super majority of the certificate holders authorize the lawsuit.  This never happens!

This bill is the epitome of the Law of Unintended Consequences.  I thank the stooges in Congress for this bill.



23 For purposes of this section, the term ‘‘securitization vehicle’’ means a trust, corporation, partnership, limited liability entity, special purpose entity, or other structure that— Feb 02, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H788.IH H788

1 (1) is the issuer, or is created by the issuer, of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed by a pool of assets that includes residential mortgage loans; and

(2) holds such mortgages.

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Note status of H.R. 788 ~ still has a way to go before it's law.

Occurred: IntroducedFeb 2, 2009
Occurred: Referred to CommitteeView Committee Assignments
Not Yet Occurred: Reported by Committee(pending)
Not Yet Occurred: Voted on in House(pending)
Not Yet Occurred: Voted on in Senate(pending)
Not Yet Occurred: Signed by President(pending)
This bill is in the first step in the legislative process. Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee. [Last Updated: Feb 5, 2009 12:19PM]
Last Action:
Feb 2, 2009: Referred to the House Committee on Financial Services.

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Mea Culpa

My comments should have been to thank the Borg in the Congress for what they are about to do.  As with Caesar, we who are about to die salute you.

On a slightly off-topic yet governing related issue, the Arizona Legislature in House Concurrent Resolution 2024 issued this year (2009) declared to the US government (text follows) its right to Sovereignty.  I believe there are a number of other states which have made similar pronouncements. 

I applaud our Arizona for being unwilling to blindly follow our Federal Government into poverty and subjugation.


REFERENCE TITLE: sovereignty; tenth amendment.





State of Arizona

House of Representatives

Forty-ninth Legislature

First Regular Session




HCR 2024


Introduced by

Representatives Burges, Ash, Biggs, Boone, Gowan, Mason, Montenegro, Pancrazi, Seel, Williams: Barto, Campbell CL, Court, Crandall, Crump, Driggs, Fleming, Goodale, Hendrix, Kavanagh, Lesko, McComish, McGuire, Miranda B, Murphy, Nichols, Pratt, Quelland, Stevens, Tobin, Weiers JP, Senator Harper



A concurrent RESOLUTION


claiming sovereignty under the tenth amendment to the constitution of the united states over certain powers, serving notice to the federal government to cease and desist certain mandates and providing that certain federal legislation be prohibited or repealed.






Whereas, the Tenth Amendment to the Constitution of the United States reads as follows:  "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people"; and

Whereas, the Tenth Amendment defines the total scope of federal power as being that specifically granted by the Constitution of the United States and no more; and

Whereas, the scope of power defined by the Tenth Amendment means that the federal government was created by the states specifically to be an agent of the states; and

Whereas, today, in 2009, the states are demonstrably treated as agents of the federal government; and

Whereas, many federal laws are directly in violation of the Tenth Amendment to the Constitution of the United States; and

WHEREAS, the Tenth Amendment assures that we, the people of the United States of America and each sovereign state in the Union of States, now have, and have always had, rights the federal government may not usurp; and

Whereas, Article IV, section 4, United States Constitution, says in part, "The United States shall guarantee to every State in this Union a Republican Form of Government", and the Ninth Amendment states that "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people"; and

Whereas, the United States Supreme Court has ruled in New York v. United States, 112 S. Ct. 2408 (1992), that Congress may not simply commandeer the legislative and regulatory processes of the states; and

Whereas, a number of proposals from previous administrations and some now pending from the present administration and from Congress may further violate the Constitution of the United States.


Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring, that:

1.   That the State of Arizona hereby claims sovereignty under the Tenth Amendment to the Constitution of the United States over all powers not otherwise enumerated and granted to the federal government by the Constitution of the United States.

2.  That this Resolution serves as notice and demand to the federal government, as our agent, to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.

3.  That all compulsory federal legislation that directs states to comply under threat of civil or criminal penalties or sanctions or requires states to pass legislation or lose federal funding be prohibited or repealed.

4.  That the Secretary of State of the State of Arizona transmit copies of this resolution to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the Speaker of the House and the President of the Senate of each state's legislature and each Member of Congress from the State of Arizona.

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Live Free
So far, eight states have introduced resolutions declaring state sovereignty under the Ninth and Tenth Amendment to the Constitution, including Arizona, Hawaii, Montana, Michigan, Missouri, New Hampshire, Oklahoma and Washington.

Analysts expect that in addition, another 20 states may see similar measures introduced this year, including Alaska, Alabama, Arkansas, California, Colorado, Georgia, Idaho, Indiana, Kansas, Nevada, Maine and Pennsylvania.

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Wow!!!  No confidence in Federal government?  Can you blame them?

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It's about time the majority of the people understand patriotism and being  responsible law abiding citizens means confronting corrupt and illegal government officials and actions. I'm not saying we should revolt every time a mayor, Governor, Senator, Congressman or President does something wrong but when millions of people are out of work and and have lost businesses and homes due to government sponsored fraud or at least at the minimum nearly complete lack of due process and enforecing contractual and property rights then clearly the government has usurped the will and interest of the people and is beholden to special interests. Don't forget the GSE's Fannie Mae and Freddie mac held half the mortgages in the country and Freddie Mac had a majority interest in MERS facilitating the electronic registration and transfer of notes in the first place.

The government officials can use all sorts of excuses to get out of being responsible and doing the right thing but they would appear to have run out of reasons and excuses for turning our country into a banking and corporate oligarchy.

Legislation or no legislation foreclosure always requires clear title claim and proving ownership of the note, all these lost note affidavits and permission to substitute documents claims are absurd and grossly negligent on behalf of the courts, and so are the multiple title claims.

The legislators may not be a stupid as we think this may be an ex-post facto law to legalize prior lost note and document substitution claims never under-estimate  Crooked coroporte leaders or dirty politicians ability to act like an all knowing genius to get the job and a bumbling fumbling idiot with no recollection of events to avoid jail time.

Eventually the lies and double dealing will catch up with politicians and corporate criminals of all sorts as thier story will become to complex and contradictory to make sense as long as we stay informed and don't get distracted by panic and emergency situations.

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