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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Friday, February 08, 2008

Thank You, Mr. Gramm

If there is any one thing that is more irritating than fire-ants, it’s the obvious lack of understanding on the part of news media reporters and their willingness to parrot the public-relations line of the financial industry and certain politicans.

Over and over again, the “problem” of subprime lending is defined as something that must be laid at the feet of “borrowers with less than perfect credit.”

This magical reversal of the laws of reason is akin to being able to push a rope and have something happen at the other end. For those who can’t seem to make this journalistic alchemy work for them, it is more than just frustrating to see Washington, the US Attorney’s Offices and Attorneys General throughout the nation get very excited about CDOs, SIVs, hedge funds and the losses on Wall Street while deliberately ignoring the millions of civilian victims of this massive scheme.

The media is more than happy to keep ignoring the real victims. They like to differentiate themselves from the “people with credit problems” by repeating the discriminatory smear as if it were fact.

The fact is, some number of people who shouldn’t have gotten abusive loans got them. A small percentage of those knew they were on thin financial ice but went ahead anyway. But the vast majority of them were set up to pay usurious amounts of interest and are still, even as I write this, making their payments. And they're suffering as a result.

What we’re really seeing is what I call “wealth recapture.” It’s reverse wealth-distribution; Washington likes to take from the rich and give to the poor. In response, the rich figured out how to get it back from the lower-middle and middle classes through the mortgage and credit-card industry and a hopelessly-fraudulent credit-scoring schema that was used to artificially inflate interest rates. There were enough people in Washington who were willing to see the duplicitous nature of the system but not do anything about it.

What most people don’t realize is the roots of this problem can be found with just a little research. Once the industry succeeded in getting rid of usury laws, the game began. And any potential interference was quickly thwarted by among others, one very powerful Senator, Phil Gramm of Texas. With all the warning flags being raised about predatory lending years back, it was Senator Gramm that blocked any meaningful controls with his ‘you can’t regulate it because you can’t define it’ nonsense.

That effectively cleared the playing field of any defenders and the birth of the monster was at hand. The money flowed like water and large amounts of it went to Washington in both campaign contributions and lobbying expenses.

Millionaires were created by the thousands. All while the average person loaded themselves up with exorbitant interest debt because, conveniently, the game was rigged to provide a tax deduction for it, and still is in terms of the mortgage industry.

There was so much money made so quickly that they got even more creative with it. Too creative. And this creativity has come home to roost – for the gamblers who thought they had the game rigged, that is.

But they couldn’t have rigged the game if folks like Phil Gramm hadn’t been willing to protect them early on and folks like Bob Ney weren’t there to cheer them on in the early part of this decade. (Gramm is now with UBS Investment bank and is an economic advisor to John McCain. Ney is serving time.)

Yet we still have the news fools lapping up the industry PR flack’s line about “loose lending standards” being the root cause of the debacle, without finishing the sentence, which should read: “Loose lending standards designed to entrap as many people as possible."

Then there’s the “call your lender if you think you’re going to have trouble with your payment,” dogma. What that provides for most people who’ve already been abused is a quicker ticket to hell. Instead of a bus, you’ll be on the next plane to moving out of your home First, the servicer they’re supposed to call is the only party who stands to actually make money in the foreclosure process. Everyone else loses, especially the borrower. Worse yet, the alleged workout deals will effectively shield the lender and servicer’s illegal and fraudulent acts.

“You want a lower payment?”


“Here, sign this.”

“But it says I can’t sue you for the violations of the law you’ve already engaged in or might engage in in the future.”

“You want a lower payment?”

“We, well, we, yes."

“Then sign it.”

Neat system, eh Mr. Gramm?

The Honorable Judge Roy Bean

We're doomed.

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Dang...That reminds me...I have to add FBI and US DOJ to my conversation list...And Iowa and Ohio AGs...and...and...who am I forgetting...

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Gramm Cracker
Lest we forget Phil Gramm:

"there was more betting on...subprime mortgages than there were actual mortgages."  Frank Partnoy

"A guy who helped screw up the global financial system could end up in charge of US economic policy."
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John McCain’s Top Advisers Lobbyists For Ameriquest Mortgage

By: Nicole Belle on Monday, March 31st, 2008 at 2:00 PM - PDT

It’s all about the company you keep (h/t KL):

When Sen. John McCain addressed the nation’s burgeoning mortgage mess last week, he insisted it was time for a little "straight talk."

"I will not play election-year politics with the housing crisis," the GOP presidential hopeful insisted while unveiling his plan, which many have since described as friendlier to the mortgage industry than the Democrats’ proposals.

What McCain did not say - which some believe smacks of politics - is that two of his top advisers were recently lobbyists for a notorious lender in the mortgage meltdown.

John Green, the senator’s chief liaison to Congress, and Wayne Berman, his national finance co-chairman, billed more than $720,000 in lobbying fees from 2005 through last year to Ameriquest Mortgage through their lobbying firm, disclosure forms reviewed by the Daily News show.

Ameriquest, which since has been bought out, was forced to settle suits with 49 states for $325 million. More than 13,680 New York homeowners got taken for a ride by the company, records show.

"They would be defined as the most blatant and aggressive predatory lenders out of everybody," said Bruce Marks, head of the nonprofit Neighborhood Assistance Corporation of America.

But will the media bother to confront McCain about this derailing from his "straight talk" against special interests and lobbyists? Nah, I don’t think they will either.

The looting of our country was engineered by corporate criminals with the Bush-Clinton gang as public spokesman. John McCain is another treasonous traitor picking a proxy fight with China and Russia and opening our borders to invite the terrorists in and transfering ownership to the oil rich countries the Saudi's and other middle east iol based governments along with Cuba and drug-oil cartel central and south America along with military and financial power to China and Russia. It's John McCain who wants the taxpayers to spend an estimated 1 trillion dollars or a million per illegal immigrant to sponser a Hispanic invasion, that's right John McCain the great and wise protector want us to pay a trillion dollars to fund a Hipanic allied with Islamic extremists invasion of our country. I have Minutemen friends who have seen Islamic worship sites just over the border and it's common knowlege that Islamic extremists are allying with anti U.S. elements in Central and South America. This invasion of Iraq under pretenses of a possible future threat is like leaving your family in a home with the door wide open and inviting rapists and murderers inside to keep them company while you run out of the home to investigate the possible threat of a distant barking dog.

The Glass Stegal act was repealed between 1993 and 1999 though the Clinton's heavy Wall street and criminal bankers influence with the riegle act and Gramm-Leach-Bliley acts. Glass Stegal was designed to prevent a speculative boom leading to a depression caused by manipulating the economy to transfer U.S. assets overseas largely to artificially prop up socialist economies.

While so-called Republicans and Democrats distract us with periferal issues that have nothing to do with the Federal government such as abortion, illegal imigrant rights, gay rights, etc. they are both working full speed ahead towards new age fuedalism though Communist/socialist/facists propoganda and fear tactics. Both parties have radically expanded government control, spending and dependence no party more than the neo-con left wing zealots posing as conservative Christians.

Every time we bring up politics is brings division and our fight is non-partisan but we have to look at the facts, actions and results of our leaders rather than listen to both parties lies and decepetion.

My stepfather told me a story about a racoon with it's tail on the railroad tracks and a train came along and crushed the tip of it's tail it spun it's head around to look and its head got run over. Another analogy would be stampeding Buffalo to get them to run over a cliff. I any event it appears as if liberals and consevatives both are behaving in a herd mentality like a bunch of frightened animals or paniced investors juping out Wall street windows rather than responding to real problems and threats with measured and thoughtful responses. Times of crises and danger are totally the wrong time to panic and run around like a chicken with its head cut off or blindly march the goosestep to trusted right or left wing pundits with the same corporate dictatorship agenda and backing.

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The snakes will migrate to whatever party they think will keep the system working. You can bet they'll drift away from McCain when they see they have to keep Obama in line because he's going to be the next President.

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Gramm Cracker


In essence, Wall Street's biggest players (which, thanks to Gramm's earlier banking deregulation efforts, now incorporated everything from your checking account to your pension fund) ran a secret casino. "Tens of trillions of dollars of transactions were done in the dark," says University of San Diego law professor Frank Partnoy, an expert on financial markets and derivatives. "No one had a picture of where the risks were flowing." Betting on the risk of any given transaction became more important—and more lucrative—than the transactions themselves, Partnoy notes: "So there was more betting on the riskiest subprime mortgages than there were actual mortgages." Banks and hedge funds, notes Michael Greenberger, who directed the Commodity Futures Trading Commission's (CFTC) division of trading and markets in the late 1990s, "were betting the subprimes would pay off and they would not need the capital to support their bets."

These unregulated swaps have been at "the heart of the subprime meltdown," says Greenberger. "I happen to think Gramm did not know what he was doing. I don't think a member in Congress had read the 262-page bill or had thought of the cataclysm it would cause." In 1998, Greenberger's division at the CFTC proposed applying regulations to the burgeoning derivatives market. But, he says, "all hell broke loose. The lobbyists for major commercial banks and investment banks and hedge funds went wild. They all wanted to be trading without the government looking over their shoulder."

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Los Angeles Times
Countrywide's Mozilo exits stage a fallen hero
Los Angeles Times - 5 hours ago
But such personal favors were a sideshow compared with Countrywide's biggest blunder -- its full-on push this decade into sub-prime lending, taking on independent niche players like Ameriquest Mortgage Co. and New Century Financial Corp., ...

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