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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States negotiating immunity for banks over foreclosures

A realtor and bank-owned sign is displayed near a house for sale in Phoenix, Arizona, January 4, 2011. REUTERS/Joshua Lott

NEW YORK | Wed Jul 20, 2011 6:24pm EDT

(Reuters) - State attorneys general are negotiating to give major banks wide immunity over irregularities in handling foreclosures, even as evidence has emerged that banks are continuing to file questionable documents.

A coalition of all 50 states' attorneys general has been negotiating settlements with five of the biggest U.S. banks that would include payment of up to $25 billion in penalties and commitments to follow new rules. In exchange, the banks would get immunity from civil lawsuits by the states, as well as similar guarantees by the Justice Department and Department of Housing and Urban Development, which have participated in the talks.

State and federal officials declined to say if any form of immunity from criminal prosecution also is under discussion. The banks involved in the talks are Bank of America, Wells Fargo, CitiGroup, JPMorgan Chase and Ally Financial.


Reuters reported Monday that major banks and other loan servicers have continued to file questionable documents in foreclosure cases. These include false mortgage assignments, and promissory notes with suspect or missing "endorsements," which prove ownership. The Reuters report also showed continued "robo-signing," in which lenders' employees or outside contractors churn out reams of documents without fully understanding their content. The report turned up several cases involving individuals who were publicly identified as robo-signers months ago.

Reuters found that such activity has continued even after 14 major mortgage lenders signed settlements with federal bank regulators promising to halt such practices and give remediation to some homeowners who were harmed.

In response to these disclosures, Sen. Robert Menendez (D-NJ), chairman of the Senate Subcommittee on Housing, Transportation and Community Development, and nine other senators sent a letter to federal bank regulators, asking them to disclose information gathered about banks' foreclosure practices.

"This is especially important given this week's allegations that mortgage servicers continue to engage in widespread 'robo-signing' despite your assurances that the illegal actions would not continue," said the letter, which also cited a report by the Associated Press.

Several senators on the Senate Banking Committee, including Richard Shelby, the ranking Republican, have faulted bank regulators for not conducting a thorough investigation of the banks' handling of foreclosures. Six months ago, the Office of the Comptroller of the Currency and other federal regulators conducted brief "examinations" of banks, during which they looked at a sample of only 2,800 loan files.

New York State Attorney General Eric Schneiderman has publicly objected to any wide-ranging grant of immunity by the other states. Schneiderman has launched his own investigations of the banks, including probes of suspected misdeeds in "securitizing" mortgages. Securitization involves packaging large numbers of mortgages into pools and selling securities that give investors income from the mortgages.

"Attorney General Schneiderman remains concerned by any settlement agreement that would preclude state attorneys general from conducting comprehensive investigations of the mortgage crisis," a spokesman said.

Three states' attorneys general -- in Iowa, Illinois and Connecticut -- have been designated to handle the states' negotiations with the banks over protection from civil suits and other issues. Spokesmen for all three declined to comment on the progress of negotiations, or on the evidence of continuing wrongdoing by the banks. But people close to the talks said there is still widespread disagreement over the extent of immunity and the dollar amount of penalties.

The banks involved have declined to comment on the talks.

(Editing by Michael Williams)

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Is the Federal Reserve conspiring with the U.S. Federal Government to steal our homes and the monster banks just the vehicle to accomplish their scheme?

I read this article today, and a light bulb went off.    My past and current foreclosure actions both ended up with Fannie Mae, owned by the U.S. Government aka the taxpayers (of course we never see a dime of it).

According to this story the Federal Reserve has printed up 16 trillion with no money to back it up, and sent to bail out foreign banks, among others.    They have to recover that from somewhere.. what better place than stealing our homes.   No wonder we can't get the Federal Government to step in and do anything for us !!!!     They are all co conspirators.

Bank of America just days ago sent a notice to me that Fannie Mae is now my creditor.    My previous foreclosure was Fannie Mae hiding behind the name of GMAC Mortgage (also owned by the U.S. Federal Government), but Fannie Mae got the house.

I'm just curious what you guys think.    Should we be naming Fannie Mae in our lawsuits, along with the U.S. Government?

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As predicted almost a year ago:

AG's Leap Into Action! LOL!

Any atttorney general who goes along with this scam needs to be voted out of office.

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I'm just curious what you guys think.    Should we be naming Fannie Mae in our lawsuits, along with the U.S. Government?

Fannie or Freddie are behind most of these foreclosures.  In your case(s) BAC and GMAC were just the alleged servicers on behalf of FNMA or FMHLC as the investor. 

In my case it's BANK "as servicer for" Freddie Mac.

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