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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A Wall Street Trader Draws Some Subprime Lessons: Michael Lewis
By Michael Lewis

Sept. 5 (Bloomberg) -- So right after the Bear Stearns funds blew up, I had a thought: This is what happens when you lend money to poor people.

Don't get me wrong: I have nothing personally against the poor. To my knowledge, I have nothing personally to do with the poor at all. It's not personal when a guy cuts your grass: that's business. He does what you say, you pay him. But you don't pay him in advance: That would be finance. And finance is one thing you should never engage in with the poor. (By poor, I mean anyone who the SEC wouldn't allow to invest in my hedge fund.)

That's the biggest lesson I've learned from the subprime crisis. Along the way, as these people have torpedoed my portfolio, I had some other thoughts about the poor. I'll share them with you.

1) They're masters of public relations.

I had no idea how my open-handedness could be made to look, after the fact. At the time I bought the subprime portfolio I thought: This is sort of like my way of giving something back. I didn't expect a profile in Philanthropy Today or anything like that. I mean, I bought at a discount. But I thought people would admire the Wall Street big shot who found a way to help the little guy. Sort of like a money doctor helping a sick person. Then the little guy wheels around and gives me this financial enema. And I'm the one who gets crap in the papers! Everyone feels sorry for the poor, and no one feels sorry for me. Even though it's my money! No good deed goes unpunished.

2) Poor people don't respect other people's money in the way money deserves to be respected.

Call me a romantic: I want everyone to have a shot at the American dream. Even people who haven't earned it. I did everything I could so that these schlubs could at least own their own place. The media is now making my generosity out to be some kind of scandal. Teaser rates weren't a scandal. Teaser rates were a sign of misplaced trust: I trusted these people to get their teams of lawyers to vet anything before they signed it. Turns out, if you're poor, you don't need to pay lawyers. You don't like the deal you just wave your hands in the air and moan about how poor you are. Then you default.

3) I've grown out of touch with ``poor culture.''

Hard to say when this happened; it might have been when I stopped flying commercial. Or maybe it was when I gave up the bleacher seats and got the suite. But the first rule in this business is to know the people you're in business with, and I broke it. People complain about the rich getting richer and the poor being left behind. Is it any wonder? Look at them! Did it ever occur to even one of them that they might pay me back by WORKING HARDER? I don't think so.

But as I say, it was my fault, for not studying the poor more closely before I lent them the money. When the only time you've ever seen a lion is in his cage in the zoo, you start thinking of him as a pet cat. You forget that he wants to eat you.

4) Our society is really, really hostile to success. At the same time it's shockingly indulgent of poor people.

A Republican president now wants to bail them out! I have a different solution. Debtors' prison is obviously a little too retro, and besides that it would just use more taxpayers' money. But the poor could work off their debts. All over Greenwich I see lawns to be mowed, houses to be painted, sports cars to be tuned up. Some of these poor people must have skills. The ones that don't could be trained to do some of the less skilled labor -- say, working as clowns at rich kids' birthday parties. They could even have an act: put them in clown suits and see how many can be stuffed into a Maybach. It'd be like the circus, only better.

Transporting entire neighborhoods of poor people to upper Manhattan and lower Connecticut might seem impractical. It's not: Mexico does this sort of thing routinely. And in the long run it might be for the good of poor people. If the consequences were more serious, maybe they wouldn't stay poor.

5) I think it's time we all become more realistic about letting the poor anywhere near Wall Street.

Lending money to poor countries was a bad idea: Does it make any more sense to lend money to poor people? They don't even have mineral rights!

There's a reason the rich aren't getting richer as fast as they should: they keep getting tangled up with the poor. It's unrealistic to say that Wall Street should cut itself off entirely from poor -- or, if you will, ``mainstream'' -- culture. As I say, I'll still do business with the masses. But I'll only engage in their finances if they can clump themselves together into a semblance of a rich person. I'll still accept pension fund money, for example. (Nothing under $50 million, please.) And I'm willing to finance the purchase of entire companies staffed basically with poor people. I did deals with Milken, before they broke him. I own some Blackstone. (Hang tough, Steve!)

But never again will I go one-on-one again with poor people. They're sharks.

(Michael Lewis is the author, most recently of ``The Blind Side,'' and is a columnist for Bloomberg News. The views he expresses are his own.)

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That's just to funny! Clowns, LOL

If he has so much money, then why is he writing for Bloomberg?
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Michael Lewis is the author of Liar's Poker which first exposed this "game!" He speaks of many games in a couple of other books he has written including the Blind Side.

Knowing a bit about the author, as well as a lot about many wealthy people [with a number of exceptions that are close friends], I believe that his "opinion" piece was a touch of sarcasm about what in reality MANY wealthy people on Wall Street and in towns like I live in or have lived in really think.

It's sad to say that I know MANY people who have these exact same views and it is one MAJOR reason I do what I have done all my life and that is to do something for poor people.

I am called a Nigger lover by many of my own friends in the South for what I do and the views I espouse and some of the friends I know! I have lost and let go of good friends because of such extreme racial and SOCIAL views. It is why when some here have criticized me for what I do, I have to sometimes wonder if in fact I am doing the right thing since such views of friends tell me I am stupid to subject my family and I to the attacks we have suffered for those who don't care and will only look out for themselves and be less than grateful. Yet, I don't let the few attacks, take me off my mission.

I KNOW that the men and women at Bear Stearns think the things Michael wrote in his piece, I have heard them say it to me. I know that my and my family's own past lawyers and our so-called "trustees" think this way too. There is even a member of my dad's own family who thinks this way while calling himself a Christian.

What Michael wrote is VERY indicative of what MANY greedy and narrow-minded and "blinded" Americans not only think, but LIVE each day. It is the way that those born with "privileges" [yes there has been a term for years in America called privileged and the "under-privileged" but it became politically incorrect since it raised the ire of men like Martin Luther King and others in the civil rights movement] really think.

I know this, I grew up in a town called Groose Pointe [of Grosse Point Blank fame], Michigan and have heard such comments all my life. Now living in the Buckhead section of Atlanta, GA, I hear many people say the same thing. But, I have heard MANY so-called wealthy Americans say this since my childhood.

There are many that believe that being born wealthy or "privileged" is a birthright like some form of reincarnated royalty. Thank God, there are people like members of the Kennedy family and my own father and mother who taught me it was a "duty and obligation" to look out and do for others. I now do so by education which is the BEST form to help as MANY as possible since I learned long ago that unfortunately I as one man can't help every person that needs or wants help.

This goes for this board and those who call me and ask for help. I know how you can win this "game," but you and your LAWYERS have to follow the gameplan or its a lost cause from the get go! I only wish OUR lawyers had listened to me, instead of being bought off and concerned more about their careers and the game of making as much money as they can for themselves.

This subprime and mortgage servicing "game" is nothing more than perpetuating century and millennium old games of the powerful, rich, or kings controlling the masses

Those of us who "buck" the system, are targeted if we "get out of line." Many judges play this game too. It's part of the secrets that lawyers and fraternities create as a matter of life. I am not a frat boy, never was and never will be. I chose not to be a lawyer, after I saw at an early teenage year how corrupt the system [game] was and still is.

It favors those who can pay or spend more and has nothing to do about justice, unfortunately. Once in a while, you get a good and caring judge who cares about rights and the abused and has an "open-mind" that sees things for what they are. God bless those men and women. Often, however, you have those who are just cogs in the system who don't care, and just want to relieve their work and case loads.

The servicers know this and so does Wall St. Why else would they spend over a $1.5 million dollars fighting over a $100,000 note we wished to pay off and COULD pay off with a check in a week? They wanted to snowball us and intimidate me into shutting up. Have I shut up? Hell no!

Now, I know that people like scarface, Carman, Raylene, Ace, Cayne and a whole lot of others read my posts and think they have ALL my trails covered. All I can say to you is that God and Nye work in mysterious ways and the things that have happened and will happen to you, your family's and companies and firms will be a delight to see from afar. Don't ever think that retribution isn't within my power and the letter as well as spirit of the law. You and those close and around you will fall into a morass and pit, that will make you think every day of this life and the one after, was this all worth it?

As for those 'wealthy" or privileged people who think like Michael Lewis wrote, you too will be eaten alive when your own "wealth advisors" and others are "taken down" via this greedy path from Wall St. to Greenwich with many wealthy towns and cities in between!

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