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 gosh

SEC to call for Calif. IOUs treated as securities

WASHINGTON – The recipients of billions of dollars in IOUs being issued by California soon may have a regulated market where they could sell them.

Some of the nation's largest banks say that, starting Friday, they will no longer accept the IOUs. The banks want to pressure the state to end its budget impasse, but their action could leave many businesses and families with fewer options for getting their money.

The Securities and Exchange Commission is going to recommend that the IOUs, which carry an annual interest rate of 3.75 percent, be regulated by the Municipal Securities Rulemaking Board as a form of municipal debt. The guidance could come as soon as Thursday, according to two people familiar with the matter who spoke on condition of anonymity because the SEC hasn't yet act.



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Perhaps California figured if the commercial and investment bankers could screw and become accidental  billionaires by creating bad debt they do the same for the state.

I stuck here in California so I'll post real soon if the state sends out a limo to drive me to my free mansion in Malibu the state accidentally acquired for me.

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arkygirl
h gosh, I will be happy to send you a large IOU if you will return the favor. Then we can both securitize them and offload the risk onto an insurer...maybe AIG would bite at this. Since we will each hold an IOU for the same amount against each other, they would cancel out so we can both just default and collect from AIG (aka "collecting from hostage taxpayers"). 

Just what we need, another "regulated" market scheme for fraud. Just like the securitites markets were so "regulated" over the past ten years. The SEC is dumb as a box of hair (no offense to hair). Their high mucky-mucks are quitting over the Madoff fiasco. I vote "No confidence" for this scheme.

The SEC needs to pay the prior victims of frauds they never detected, not create more goofy Ponzi market scams.

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h gosh
Arkygirl:  IOU on the way.  I think we should also look at setting up a servicing company to handle these IOU's, as well as our own "electronic recording" system. 
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    If the State of California will accept these Notes for the payment of taxes,
then they should circulate at par like the old "red label" US Notes.
    California, I believe, has the world's fifth largest economy so they should
be able to have their Notes circulate as currency.
    The mistake they are making, is offering "interest" on them, instead of simply imposing new taxes to remove them from circulation and accepting them for taxes at face value. Adding an interest rate to them will cause speculators to buy them up at a discount and making a killing when they are redeemed at par. This is exactly the mistake the 13 original Colonies made back in 1776. Arnold needs to read up on Alexander Hamilton and how the
early Federalists handled a similar problem back in 1791!
     Arnold, you're on the right track, but you screwed up by putting an interest rate on them, instead of getting the legislature to impose a new tax
to redeem them. You might as well legalize marijuana and impose an excise
tax on it , because "pot prohibition" is a "bust" in California anyway!
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