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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Dear Sharon,

I just read your release on Beau Biden and Delaware's lawsuit against you all.   I had to write you after I stopped laughing so hard, I mean really?  I find your press hacks and your company's "spin" laughable!!!  Transparency, are you kidding me?  Didn't I ask you all to stop foreclosing in MERS' name in 2002 and 2003?  Didn't I offer to pay your company the costs to simply program a little code to allow the investor information to be given to borrowers on your site?  Didn't I warn you about robo-signing, fraudulent pleadings, affidavits, and most importantly, your assignments almost a decade ago?  Didn't I warn you about the servicers and foreclosure mill's actions and your lack of supervision?  Didn't I tell you the people would one day get so angry they'll start showing up at your door?  Didn't I say that one day, a hurt of legal trouble will come your way?

Well, maybe you want to refresh your memory a bit when you read this "You may want to study the FLA. RICO law. It may prove useful to you in your upcoming depositions and perhaps when you have to explain yourself and your business to govt. regulators, AGS, and USDOJ! Much luck! Hey, and will you answer my questions on here for all to see?" that I posted on your forum at on December 4, 2003?

Two weeks ago, the OIG for FHFA came out and said that Fannie and everyone else should have heeded my warnings way back when (2003) when they issued two reports.  I have advised them that they must dismantle your operation since it poses severe reputational, operational, and legal risk and liabilities to U.S. Taxpayers since lawyers are going to start and will pierce your corporate veil of opaque non-transparacy that was specifically designed to conceal the banker's Pandora's "Black" Box of financial alchemy, not a measly $20 recording fee (that you all are getting sued for anyway now).

BTW, who's footing all the legal fees?  My understanding is that the members have to foot the bill when it comes to litigation involving cases by borrowers, but when the County recorders, AGs and everyone else comes on down the line, I don't know what specific member would have to foot such a bill?  Also, any insurance you have would certainly not cover fraud, I would think.  Please pass on my hellos to them as well as make sure you preserve ALL data and information containing my name and email addy since I am sure they will be important in many cases to come to prove mens rea and scienter!

Sorry for my contemptuous voice and gloating, I mean really, do you blame the contempt I have right now for you and your ilk when ALL of this, and I mean ALL of this, could have been avoided if you all had simply done your jobs, listened, and seen the writing on the walls?  You have personally assisted in stealing the homes of countless Americans and clouding the title of virtually all Americans.  You have not bought off every judge in America and that fact must scare you.

Ok, so you think you knew more than me, but Judge Gordon and Judge Logan?  That was 2005 and way after my warnings! Then, what you did to Rumbough.  For Pete's sake, one of your lawyers actually gave sworn testimony that you owned and transferred a promissory note!  Here, for your recollection of when you were at the hearing, read the transcripts and both my warnings and judge Gordon's warnings years ago....  You remember when Judge Gordon read "verbatim" my warnings to you.  Remember Ms. Nye (he didn't know I was a male) and Ms. Pew (me acting for my mom) and our warnings were the very first thing that Judge Gordon drew your attention to and Bobby's attention to in this transcript...

And, his order and decisions here...

How about this warning?

You know, after the years of death threats, computer hacks, vexatious legal attacks, and slander campaigns directed at me, Jack, Max, and April, I wonder what you really are thinking about when you go to bed each evening?  How you have been allowed to keep your job is beyond me.  How Fannie, Freddie, and the FHFA have not pulled MERS' plug to its respirator is beyond me as well.  As the new legal positions are carefully and more acurately articualted, can or will you survive without a transplant?

To that end, since our nation owns your little virtual fraudclosure machine there via the conservatorship of Fannie and Freddie, let me give you all some advice that I hope ALL of you will heed, this go-round.  Disband MERS's current form and ownership.  Make it a non-profit with a bi-partisan and non-bank board composed of county recorders, investors, shareholders, advocates, title and real estate lawyers.

Turn MERS into a national database of mandatory registration of all rights to a mortgage loan where the borrowers would pay $25 (a nice fee) to annually subscribe to all information contained in the system.  The system should have both imaged copies of all notes, allonges, and assignments, whether recorded or not recorded, along with each sale or transfer of servicing rights as well as transfer of the note AND all trust interests.  So, investors would register on the system as having interests in the various MBS trusts.  If the CDOs are created, what ever little slice should be reflected as being sold.  Create a REAL Estate System Transparently Easy (REST EASY™) for short.  I'll be happy to donate the trademark and offer my marketing skills for free.  I'm sill working on the blueprint, but the guys at EDS and IBM and god forbid, LPS should be able to knock off the system in a couple of months.  Maybe we get them to do it for free as part of their sanctions for their complicity in this mess.

In your system, a borrower would have the ability to see all subservicers, servicers, custodians, sales of servicing rights, and sales and transfer of the note.  Make MERS the NEW National System of real estate transparency, not a veil to commit financial fraud.  I am sure I could get our colleagues at OWS to support this as a positive first step.  What say ye?

LPS can do the same!  Let everyone have access to the books.  We then create mini-regulators with citizens analyzing what is going on, and we reduce government waste and spending as well as taxpayer liability.  We also create a new mini Qui Tam act with arbitration with awards of 10% instead of current awards, but no need to break the bank, but fix the banks. Open transparency would come to the real light of day.

For now, why do lawyers I work with have to pull teeth to get the MERS Milestone Report that alleges to show all the transactions which we know is only garbage in - - garbage out?  How about this for starters and a way to make some income to build a defense fund the huge defense bill that you all now have.  Provide the MERS Milestone Report to ANY party on ANY property with a MIN No for a $25 to $50 fee so people can analyze and judge for themselves their cloud on title issues.  How 'bout it?

On another matter, are Fannie and Freddie picking up ANY of the enormous legal fees you are incurring?  I can't believe the citizens of this nation would be footing the legal bills to fight other citizens of this nation and the states and counties suing you?  This is a big story for the journalists I am forwarding this to for their own investigation.

The ONLY thing that will revive this morbid housing and real estate market would to clean it up first; send some people like yourself to jail or the poor house; and then create a REAL system of transparency for ALL to see so that it will restore confidence not only in the housing market and real estate land records, but in our nation's government and economy.

You've slandered, attacked, ignored, ridiculed, and ignored my colleagues and I for a decade now.  Does your new president finally want to smoke a peace pipe and see how we can fix this, or do you still want to battle in the courts of law and public opinion.  If you haven't noticed yet, WE'RE WINNING!!!!!

Nye Lavalle

PS  I've sent to AGS, media, blogs and lawyers so they can freely distribute as needed
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NOTE:  to all blogs!!!

Please post the email below to the AGs (SEPARATE FROM THIS EMAIL) I wrote last week that I did not send you.  I wrote them in confidence.  However, since they have failed to act and respond, I think the way to get to them AND GET RESPONSES AND ACTION is to publicly publish all my warnings and my letters so there is a VERY public record of notices and warnings to them. They may wish to ignore me again, but I and hopefully each of YOU, won't let them!  So, please read   You may also publish and post, separately, my letter attached to FHFA's OIG.

Dear friends,

I am taking the gloves off, its that time!  Attorney General Beau Biden did us all proud and right yesterday, despite the political reality that he faces in a state that hosts as corporations, the banks, Wall St. firms, and system he is attacking.  I would ask that each of you kindly read the entirety of this letter and to assist me help each of you and this nation of ours and force the other AGs and elements of our government and the media to be as bold and brave as Beau Biden!

Beau knows MERS!  LOL  He certainly not only vindicated me and my decade-ol fight against MERS and my predictions, but all of us, especially Max, April, Judges Logan and Gordon (would love to interview each now) and let me not forget our favorite jurist, Judge Schack!

Let us not forget the crooked judges too, like Craig Schwall and Louis Levenson in Fulton Co who will be getting their comeuppance next month in both courts of law and public opinion (the media).  We need to have media focus on the Judges who get it and the judges we have evidence of corruption on. (including our tapes)  This will be one of our new objectives. We also need to expose Robo-Judges™ who issue Robo-Orders™!

We're starting a new movement in America.  Our new movement will complement the Occupy Wall Street and Occupy the Internet movements by assisting those trying to help or most importantly IGNORING TO HELP our nation and states.  That is the media who is trying to help and some in government like Beau Biden.  The other AGs and regulators that ignore us will be publicly noticed and later publicly embarrassed if they fail to act, since a "record" of notices, warnings, and actions or inactions will be publicly displayed now and for the years to come that anyone can access.  We shall begin with Names!!

The name for these new movements shall be Occupy The Government & Occupy The Media!  As for the media, we shall and I request that you respect their time and their space.

The first step is that I want each of you to provide me, Lisa, Michael, Matt and everyone of our colleagues and comrades in arms with an email list of ALL media and government contacts you have in two separate email address books for Outlook or AOL.  We will then discuss content to send by each of us to these contacts.  For the media, we will target great story ideas for each journalist and editor we have befriended and has supported the cause.  We will also provide a host of information, facts, and evidence for their investigative needs.  The media is not only our friend, but our greatest ally in this movement, next to the Internet!

For government, we will create letters and petitions and forward to them in masse!  Also, we will document and forward complaints, and evidence of fraudulent bank behavior.  They are either with us, or against us!  They get to choose and so do we, by a vote.  It's time to stop picking leaders by social issues, but real life issues.  You're either a bank Witch and for them or you're not (like Beau).

I want to do to the AGs, all regulators, and politicians, what I did to CEOs and boards years ago, paper them and "put them on notice" to act.  Let's see if they ignore our warnings this time around since doing so, will surely jeopardize their political and/or professional aspirations.  As they move up the political food chain, we will have a record of what they were warned of and what they did or didn't do so that their prior actions can be judged by voters and regulators alike.

I am reminded of Gandhi's quote "First they ignore you, then they laugh at you, then they fight you, then you win."  We're now winning, so it's time to pile in on as the bankster's lawyers would say.  Over the years, I have created a "hit list" and "target list" of enemies and foes and have guarded carefully very personal information about them.  While information is power, knowledge of what to do with that information, and the wisdom to know when its right to use, is key. I suggest you each do the same!

Next, I will begin writing more letters and more warnings based on my experience and I will start doing some polling with the help of supporters and sponsors I will seek from law firms.  This will accomplish a few goals.  First, it will bring national media attention and coverage to the issues and second, media attention, business and leads to the law firms than sponsor my research.  My research has traditionally garnered national media attention and the front pages of virtually every newspaper as well as television and radio.  It will once more, do so again.

As for Beau Biden, his complaint is a masterpiece and must read and pins the tail on the ASS (sorry, Donkey was way too kind) so to speak in MERS.  In effect, he is not only seeking to shut down every MERS foreclosure in DE, but seeking to foreclose on MERS itself!  I wonder what ASSet protection MERSCORP and its enablers have in place.

I have previously called the racketeering acts of the servicers the "default servicing enterprise."  However, Beau kept it simple and called it the "foreclosure enterprise."  I agree.  From this day forward, when we discuss or refer to this racketeering enterprise, let's all agree to call it and refer to it as the FORECLOSURE ENTERPRISE!  Let's get that mantra up and explain it for what it is, an enterprise which is key for RICO actions, both state and federal, which is where we will be going next with the evidence we have all uncovered.  Make Foreclosure enterprise as widely known and accepted as robo-signing and fraudclosure!

In his complaint and his exhibits, Beau Biden has laid the foundation for attacking MERS and every lender.  In every case where MERS is ANYWHERE in the chain (current or prior loans) you must file his complaint and exhibits with the court with a notice for the Court to take "judicial notice" of the complaint.  Next, you must also file all of the county recorder lawsuits.  Remember, building a record is the most important thing you can do in a case.  This is how we will also expose the corrupt judges we have evidence on.  An analysis of their record and rulings will assist media and also how we vote them out.  We shall approve and disprove of judges and politicians and make our voices known, regardless of party affiliation.  We will make them sign pledges and contracts, so we know where stand.

We will get our friends in person, email, and on Facebook, to work with us, petition, send emails, make phone calls and focus attention on issues and those who fight and oppose us.  We will gather lists of names too and personal and email addresses for protesters.

Our first petition will be the abolishment of MERS and I am drafting Lisa Epstein to create the first draft using the relief that Beau seeks in his lawsuit to be the first petition of our group.  Lisa, please copy me, Jacqs, April, Dan, and Max on it and we'll get out soon!

Friends, its time!  2012, the Mayans predicted would be the end of the world "as we know it!"  I'm reminded of the song "its the end of the world as we know it, its the end of the world as we know it.  If we believe and act, we can do it!  I know we can and i know we will!

It's time my friends, time to get immediate attention and use the legal strategy the the banks and foreclosure mills created called "piling on" after football piling on.  Let's get to the media, get to the government, get to judges, and get to the people.  Let's Occupy Government and The Media and take control of the destiny God has given each of us!  2012 is upon us.  The Mayans were right, its the end of the world as we know it, and the start of a new world, not new world order, as we desire and want it to be free of banks, political influence, and corruption!


PS  Blogs, Please publish the above and below in separate postings - - thanks!!!

Thu, Oct 20, 2011 1:18 pm
Subject: Important Evidence & Affidavit in Foreclosure Law Firm, Robo-Signing, & MBS Investigation From Nye Lavalle

Dear Attorneys General:

Recently, the Office of Inspector General for the Federal Housing Finance Agency released reports about a special counsel investigation by Fannie Mae and that a shareholder had warned and provided Fannie Mae and others as far back as 2003 aboutrobo-signing and foreclosure abuses.  This story was picked up by the NYTimes' Gretchen Mogenson and a plethora of other news media.  While Gretchen and the FHFA didn't name me, I was nonetheless outed since she and many others, including some of you, knew this shareholder was me.

I have been working hard behind the scenes to warn and stop the catastrophic events of the past few years which I first forecast in 1996!  I have spent almost $1 million and spent over 40,000 hours since 1994 investigating, researching, and documenting these frauds.  I have millions of pages of documents and a history like a bear in the woods who has left a trail all the way up to personally warning and communicating to the CEOs of virtually every bank, servicer, and Wall Street firm of these abuses.  I took shares in each of these companies in the late 90s to warn them.  Jaime Dimon, William Harrison, Kerry Killinger, Ace Greenberg, and James Cayneare just a few.  However, the ratings agencies were warned as well as law firms and accounting firms, especially Deloitte!

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As the shareholder that in 2003 warned Fannie Mae and worked with the independent counsel they appointed, Mark Cymrot, of BakerHostetler in Washington DC, I have a unique perspective as well as set of facts that each of you could never obtain due to the cost and time limitations, that I have accumulated since 1993, almost 20-years!

However, as you will see by the attached letter to FHFA and links to reports and warnings I have authored since the mid-nineties, many were warned, including some of your offices since the mid to late nineties.  I am also the individual that first discovered robo-signing and foreclosure fraud in the mid-nineties and authored reports documenting such abuses starting in the mid-nineties, until a "visiting judge" in Dallas, TX gagged me from telling this story.

It wasn't until 2000, at the National Consumer Law Center conference in Colorado when I released reports on these frauds and abuses.  Some of your lawyers were in attendance and were provided two reports.  Only Max Gardner, a bankruptcy lawyer from North Carolina, took the reports to heart and began a decade-old fight to expose this corruption.

Robo-signing and foreclosure fraud and the intentional fraudulent filing of lawsuit complaints, advertisements of sale, assignments of mortgage, satisfactions of mortgage, and affidavits, as you will see from my well-documented reports, are not a recent phenomon or the result of the securitization craze that swept America and the world from the late nineties to mid-2000s.

They were carefullly planned and orchestrated after the RTC debacle in the late 80s wherein a select group of "special servicers," commonly referred to in the industry as the industry's "toxic waste dumps," were created to push these newly developed and even "patented" foreclosure factory processes that the four major special servicers "tested" and then "perfected" for the rest of the industry.  These special servicers are known to many of you, but their names were EMC Mortgage, SPS f/k/a Conti-Fairbanks Capital, Ocwen, and Litton Loan.

Through "partnerships" with firms like the Barrett Burke operation in Texas, the LOGs group (Shapiro) out of Illinois, the McCalla Raymer group in Georgia and many others, they created an automated foreclosure machine that threw all caution to the wind when it not only came to ethics, but the law.  In a newly expanding "virtual" world, they, along with vendors and third parties such as title insurers Fidelity National and First American created patented and marketable "cradle-to-grave" systems and processes to expand the housing and mortgage markets and cover-up and conceal the known fraud to all of them perpetrated mostly by aggressive loan brokers and occasionally borrowers and factored such losses and circumstances into their system.  I can provide each of you with mens rea and scienter to prosecute for frauds.

As they tested these systems and perfected their fraud via such practices as intentionally concealing the real ownership of a promissory note and first foreclosing in the names of servicers who claimed to "own" the notes and then MERS, they really were double and multi-pledging the promissory notes to themselves and others to obtain servicing advances as well as take gain on sale accounting treatments on the notes they originated with no risk to them, since they had already forward sold the notes to our respective mutual, trust, and pension funds.

As you each take your own collective and individual approaches towards your investigations, I would whole-heartedly agree with Attorneys General Scheiderman, Biden, Harris, and others who want to continue this investigation.  If you don't continue and right the wrongs, I will boldly predict that each of you will have blood on your hands.  I say this as no threat of any means whatsoever, but as a warning based on my understanding as a social scientist and advocate of the human psyche that for some is weak, but for others is broken.  If you look at my forecasts and predictions over the years, I have one heck of a batting average in getting it right.  As my former partner, Dr. Roy Stout who was featured in the book Blink, would say, I see things and data that others want to ignore.  For the first time in my life, I am scared - - scared, not for me, but for our nation and our nation's youth and those who might have to endure the consequence of the excesses of my generation.

Today, its mortgages, but when these young students, like an ex-girlfriend who at 22 left school with $150,000 in student debt realize what has occurred, all bets will be off.  Today, they are peaceful - - tomorrow, they may be vengeful!  The Occupy Wall Street movement is only the start.  The American public and world, want to see accountability.  They want to see perp walks.  They want the intentional bankers, hedge funds, and Wall Street executives who intentionally created and manipulated this world-wide financial debacle prosecuted.  If you don't do it, I fear as the nation and the world's economy suffers even more, there will be total anarchy in the streets as well as assaults and even "non-political" assassinations against banking CEOs, Wall St executives, and foreclosure lawyers, by para-military right and left wing extremists that were former Army Rangers and Navy Seals who are not only disenchanted with the current situation, but disenfranchised.  Living in Savannah, GA last year, I met many Rangers each evening who were angry, very angry for fighting a war that they realized was not for Americans, but for other interests.  The discussions I would have in the evenings were illuminating and gave me a great respect for our nation's military men and women.

However, as they lose more friends, limbs, spouses, their sanity and now their homes, a combustible mixture that is not only flamable, but toxic is spreading.  You can see it in the OWS movement and some of the videos.  I say these things not to scare you, but to warn you once again and most importantly, to EMPOWER EACH OF YOU, collectively or indivudally.

You have each been give a god-given opportunity at a vital point in our nation and the world's history.  Each of you, if you do your jobs and ignore the politics, political influence, and lobbying from both banks and the federal government, have a special moment in time to leave a mark.  A mark that historians will one day write was the day America and the world decided to be free of political and banking influence and truly helped create a world democracy.

The money now, whether it is $20 billion or $50 billion in the scheme of trillion dollar losses is really not what the people are angry at.  They was to see accountability and those who not only created the situation, but manipulated it or ignored it to their personal gain be prosecuted.  I hear their voices each day and that's why I am coming out of the closet, so to speak, despite the threats against my family and I to offer my help and assistance in doing what is right for this nation, our people, and those youths protesting for what they know, that many in our generation simply ignored as they drove their BMWs, put dope up their noses, and lived it up at the expense of their children and grand children.

Now is the time.  I can give you the goods on many of these if you want to really follow the patented fraud.  Have you all read the patents as yet of all these so-called "processes?"  The most human element in the entire automated factory were the actual ignorant robo-signers!  In fact, when I discovered and reported on robo-signing, I did so just to give one "minor example of the overall fraudulent scheme that was designed not to defraud borrowers who were only pawns in the "game" as it was called, but our respective pension funds and extraction of our so-called excess wealth.

Think about it, for a moment if you will.  Robo-signing is such an elementary fraud, so simple, so stupid, so petty!  The real fraud and why the banks want to settle with you so quickly is the securization and the fact that none of these deals were "true sales," but the financing of receivables whereby investors were defrauded and multi-pledging of paid off notes occurred to inflate their earnings, stock prices, and bonuses.

How many of you have had your original wet-ink promissory note returned to you canceled and paid in full upon its payoff or refinancing?  Ask around the office?  Then, check your lien release or satisfaction and see if it was robo-signed?  Who is your real lender?

Open the black pandora's box of financial alchemy in securitization and you will find the multi-pledging and sale of paid off notes, the same notes, and even "ghost notes" that were created with Photoshop and never even executed by a real live borrower.  I will save the death threats, break-ins, arsons, computer hacks, and millions of dollars of vexatious litigation by the banks and its foreclosure lawyers against my family, myself, our trusts, and the select group of advocates who were the first to take the batton from my hand for another day.  I will even save the bribery of judicial officers, court reporters, and local judges for another day.  All I ask is for each of you to think long and very hard, before letting the banks, their servicers, vendors, and lawyers off the hook.

I'll come to see any of you and give any of you my deposition as well as access to whatever I possess in terms of evidence.  I would also suggest that you ask each bank you are investigating and law firm to preserve all evidence and provide to you everything they have in their possession that contains my name "Nye Lavalle" or "Aneurin Lavalle" or this email address that I have had since the mid-nineties.  I am also more than willing to take polygraph exams, should you find that necessary.

In essence, all I personally want is the real and true story told by a real and true investigation and the subsequent civil and criminal prosecution of those responsible for this nation's morass.

I pray some, or all of you, will take me up on my offer.  Please feel free to call or email me at any time if I can be of assistance to you or any of your collective or respective investigations!

Nye Lavalle



By way of introduction, my name is Nye Lavalle  and I am the shareholder/investor, referenced in your recentOIG reports that warned Fannie Mae’s board and CEO of foreclosure and legal abuses almost a decade ago.  For over a year, I worked closely with Fannie Mae and Mark Cymrot of Baker Hostetler, who was the independent counsel appointed by Fannie Mae, to investigate allegations contained in my 2004 report.  I also warned Freddie Mac and its board as well.

The attached letter will provide you more information and hopefully open a dialogue between us that will help us find solutions for our nation and its citizens as well as hold those responsible, accountable for their actions.

To that end, I stand ready and able to assist you each in your respective duties at FHFA and the OIG for FHFA.


Nye Lavalle
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We've been following you for years -Great work!! (used to copy your email questions and their Lies/responses off MERS site)

We've begun the MERS DEATH participating are New York and Delaware Attorney Generals
MERS on Life Support - legal rasping - Death is near

MERS legal department: "DEATH RATTLE" & "RASPING" has begun as
MERS CORP. CEO prepares a "DNR" order (See picture of DNR at above link)

GOVERNMENT entities* said to assist patient (MERS) with dying wish
                              DNR = Do Not Resuscitate 







Officers &



What is MERS?



Enrichment &


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