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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Testing Faith in the Fed
BusinessWeek - January 30, 2008, 6:20PM EST

Financial bloggers wonder whether the Fed is making the right moves to alleviate credit pressures by Karyn McCormack

The Federal Reserve has been widely criticized for sitting on its hands while the subprime mortgage and credit problems worsened. Now, after the 50-basis-point cut in the federal funds rate at the Fed's scheduled policy meeting on Jan. 30, on top of the emergency 75-basis-point reduction on Jan. 22 in reaction to a broad global market sell-off, bloggers still question whether the Fed is on top of the game.

"There will be some who wonder whether or not the Fed is misreading economic and market conditions," wrote John Carney at DealBreaker after poring over the Fed's statement. "Still, it's the cut [the] market wanted."

Noting that Fed funds futures have been jumping all over the place in the last two weeks, Carney says "the Fed has become a lot less predictable, at least on any long-term basis."

The Market Remains Unimpressed

The market usually gains ground on a Fed meeting day, according to a chart from Bespoke Investment Group's Think B.I.G. But on Jan. 30, it looks like investors lost faith in the Fed rally rather quickly. Just before the announcement, the Dow Jones industrial average was down about 30 points. It shot up as much as 201 points after the decision, but then reversed and ended the day down 37 points, at 12,442.83, amid a sell-off in financial stocks.

That's because many experts and investors are still deeply worried about the economy slipping into a recession—and what the Fed will do next. Seeking Alpha compiled comments from a few economists and experts after the cut—but some weren't so positive: "The Federal Reserve is panicking and they have been panicking for the past 10 days—we have gotten 125 basis points," wrote Jeffrey Gundlach, the highly regarded fixed-income manager at TCW Group. "It's too late to help the housing market…. The time to do this was back in August before you allowed a culture of defaults to develop between media saturation of upcoming reset problems and political grandstanding."

"Dear Ben" Letter

Leading up to the Fed decision, a few blogs polled readers for predictions. DealBreaker found that most readers thought a 25-basis-point cut was likely. But just two days earlier, they called for 50 basis points. Think B.I.G. asked readers what they thought the Fed would do and should do. While most predicted that the Fed would indeed cut rates by 50 basis points, a majority thought the Fed should say put.

Barry Ritholtz at The Big Picture offers a little solace and self-help in his letter to Bernanke."If it is any consolation, most of it is not your fault," Ritholtz wrote. "You inherited a mess from Easy Al." He offers the chief a list of things to consider and concludes with: "I wish you luck in resolving some of the weighty issues facing our economy. You are going to need it."

McCormack is senior producer for's Investing channel .

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They can't just pull the interest-rate handle and return the country to economic bliss. Greenspan knew it and so does Bernanke.  They just don't know what else to do.

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"Central banks have only two tools," says Satyajit Das, author of "Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives," who has emerged as a voice of concern. "They can cut interest rates or they can regulate banks. But these are very old-fashioned tools, and are completely inadequate to the problems now confronting them."

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The problem is in part the FED, the larger problem are the banks and the conduct they engaged in!  Changing the banks and the ENTIRE CREDIT RATING system needs to redone. 
There are thousands of complaints about Credit ID Theft, or Identity Theft.  These problems nearly did not exist when most banks were locally run!   But the days are gone, the MEGA BANKS now control the FED!  Like the Country Wide take over, soon another large bank will be taken over.  And the ones the suffer are not them!  But us, those that had their credit destroyed by false and erroneous reporting of payment histories, and everything falls in place.  LET CITIBANK AND CHASE GO UNDER!
And restore the local small banking system!  In part it was the CDO's and SIV's that have caused the creation of the Mega Banks.  The Government should be working on closing the three credit reporting, and FAIR ISSAC!
Time to major changes! 
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You're right Gary without fractional reserve money the lenders would lose a tool to make money with our money not only do they take our equity in the homes and convert it into "money" by lending out monetized debt at an 8-1 ration (bank lend nominally 8 times deposits), they also further convert mortgages into financial instruments known as collateralized debt obligations or CDO's these CDO's are financial instruments 30-60 times the underlying value.

That's not where the Federal money trail ends though Fannie Mae which is a Government sponsored enterprise (GSE's) is the nations largest funder and holder of notes and the principle holder of mortgage electronic registration is MERS.

So here is the Fed/private money trail the fractional reserve money is created though the Federal reserve backed by the IRS and our mortgages, and bonds, Fannie Mae funds and hold the notes and Freddie Mac through Mers claims title, though illegally and initiates the foreclosures and multiple title claims. The mortgages are converted into trillions of financial instruments so billions in foreclosures can pull hundreds of billions in liquidity out of the financial system. The OCC, OTS and most state and local regulatory agencies are not really government agencies but bank funded and represent the lenders interests. The rating agencies Fitch, Moody's, Standard and Poors

validate the whole system and give it credibility by assessing and rating the risks and relative values. We all know the consumer credit ratings agencies have a hand in this too Trw, Equifax, Transunion, Experian log and report these false credit ratings and help defame the borrower and make them appear to be a loser and create punitive action against them.

While a borrower fighting to stop an unlawful foreclosure may not understand any of this you can bet the judges, enforcement agencies, A.G.'s etc. understand at least some aspect and are not going to shut down the entire U.S. government and economy to help one person keep their home.

When people are asking for a full investigation and prosecution they need to understand why it is so hard to win these cases even with hard black and white evidence they are really asking for the government and the Fed to investigate and prosecute itself.

You are right Gary Citi, Bank of America, J.P. Morgan, Bear Stearns and the rest of these crooks need to go under and we need to restore sound and lawful monetary, lending, and investment practices.

Collapsed economies create civil and external wars and invasions it's not just about our financial comfort level and how much we are are wasting on debt and interest payments. Lending fraud and monetary policies create grave  security issues both internally local, state and national level and internationally as well.

How can we support a military, buy or sell, negotiate trade agreements and disputes if we do not have a stable monetary system?

Satyajit Das is wrong about about the central bank having only two tools they control the amount of money printed and public confidence in a paper money system where the value is created by decree, perception and confidence they also control  bonds and the return rate allegedly to back the money they can just plain print without charging interest for it. Obviously
the Fed is closely linked to Wall street and the ratings agencies though it is stated they are an independent disinterested unbiased 3rd party they are not the wolf is in charge of the hen house.

That's right we don't need the backing of bonds to support a fractional reserve system because the value of the money is set by decree and perception the bonds just open us up to foreign investment and create further instability another potential wrench in the works of  needlessly complicated economic system. Bonds are an additional hidden tax that enrich private entities as is inflation and stealth inflation where food and energy costs are not calculated as inflation in the Feds policies and reports.

If you take into account all the factors our true tax rate is far far higher than what is stated.

Controlling interest rates is an indirect mechanism and in the U.S. the Fed is a consortium of the banks themselves so they are certainly not going to criminally prosecute themselves, in order to have confidence in banks people have to know that those in charge of the money are not stealing it
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