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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Forbes Market Briefing
Unhappy Monday For Wall St.
Steve Schaefer, 12.03.07, 3:15 PM ET

Stocks slid back into negative territory Monday afternoon, as falling oil prices and a Treasury plan for mortgage relief were unable to spark a sustained rally.

The Dow Jones industrial average was down 35 points, or 0.3%, to 13,337, while the Standard & Poor's 500 fell 7 points, or 0.5%, to 1,474, and the Nasdaq was off 10 points, or 0.4%, to 2,651.

Oil continued its fall from last week, as speculation persists that the Organization of Petroleum Exporting Countries will hike production. Despite the decline in prices last week, traders still expect an output increase when OPEC meets Wednesday, sending crude 99 cents lower Monday, to $87.72. (See: "OPEC And Chavez Take Steam Out Of Oil")

Shares of oil giant Exxon Mobil (nyse: XOM - news - people ) fell 81 cents, or 0.9%, to $88.35 ahead of the OPEC meeting.

Treasury Secretary Henry Paulson announced a plan Monday designed to relieve the pressure on thousands of homeowners struggling with mortgages that have reset to higher rates. Paulson's plan, which has been called a government bailout in some quarters, would extend favorable introductory loan rates for a to-be-determined period in order to stem the tide of foreclosures.

Paulson's plan arose from talks the Treasury Department has held with major players in the mortgage industry. It remains unclear how long the freeze will last, as government regulators want it to go on for five to seven years, and investors want a much shorter one to two year window.

In a speech Monday, Paulson also called for Congress to pass laws to expand the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Freddie Mac (nyse: FRE - news - people ) and Fannie Mae (nyse: FNM - news - people ).

Shares of Freddie Mac fell $1.57, or 4.5%, to $33.50 Monday, while Fannie dropped $2.04, or 5.3%, to $36.38.

Of particular concern is the secondary market for mortgages, which is where Freddie and Fannie come into play. Countrywide Financial (nyse: CFC - news - people ) Chief Executive Angelo Mozilo called for the government-sponsored investors to purchase larger home loans to bring liquidity back to the mortgage market.

Shares of Countrywide were down 19 cents, or 1.8%, to $10.63 on the day.

Dow component General Electric (nyse: GE - news - people ) fell $1.32, or 3.6%, to $36.92, after the conglomerate saw its price target slashed to $45 from $48 by a Citi analyst who also cut his 2008 profit estimate for the company.

Online brokerage E*Trade Financial (nasdaq: ETFC - news - people ) fell victim to a similar fate, as a Banc of America analyst slashed his rating to sell on the troubled company and said shares still have a long way to fall. Shares tumbled 10.2%, falling 47 cents, to $4.13. (See: "E*Trade Trampled By Analyst")

The auto industry was also taking a hit Monday, after General Motors (nyse: GM - news - people ) saw an 11% decline in U.S. auto sales in November. Shares of the largest Detroit automaker fell $1.13, or 3.8%, to $28.70, while rival Ford Motor (nyse: F - news - people ) was down 18 cents, or 2.5%, to $7.33, despite an uptick in November sales.

--The Associated Press contributed to this report.

http://www.forbes.com/markets/2007/12/03/briefing-oil-paulson-markets-equity-cx_ss_1203mark


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Subprime standards out 'soon,' Paulson says
Government, industry working on plan for troubled borrowers
WASHINGTON (MarketWatch) -- Treasury Secretary Henry Paulson said Monday he's confident that a plan to help borrowers of subprime mortgages will be agreed upon soon.
The Bush administration has been working with mortgage servicers and investors to come up with a strategy to modify and refinance loans for certain subprime-mortgage borrowers.
As more such loans reset next year, "we will need an aggressive, systematic approach to fast-track able borrowers into a refinance or mortgage modification," Paulson said in a speech to an Office of Thrift Supervision conference.
In an interview later Monday on Bloomberg TV, Paulson also said that a plan to freeze interest rates on troubled subprime home loans could be announced this week.
"I am optimistic we are going to have something to answer before the end of the week," he commented.
In his speech, Paulson reiterated that the downturn in the housing market is "the biggest challenge to our economy," but said that the Treasury's plan to help out subprime borrowers doesn't include spending taxpayer money on funding or subsidies for either the industry or homeowners.
Speaking at the same housing conference on Monday, Washington Mutual Inc. (WM:
Washington Mutual Inc
 Last: 19.62+0.12+0.62%
4:00pm 12/03/2007
Delayed quote data
Sponsored by:
WM
 19.62, +0.12, +0.6%)
Chairman and Chief Executive Kerry Killinger said that the mortgage industry needs to find the "right safe harbor" for troubled borrowers.
"We just need to see if we can't get to a collective decision," he added.
On Monday, Paulson called for state and local governments to temporarily broaden their tax-exempt bond programs to include mortgage refinancings. If enacted, he said, the move would reduce the cost of some mortgage programs and allow the governments to reach more struggling homeowners. Read Paulson's speech.
The administration and Congress have been scrambling to address the woes in the subprime-mortgage market. Interest rates on about 2 million adjustable-rate mortgages are set to rise over the next two years, with many foreclosures a possible result.
Speaking at the same conference, Housing and Urban Development Secretary Alphonso Jackson urged Congress to pass a bill modernizing the Federal Housing Administration.
"With new legislation, refinancing and other FHA products, we will be able to help nearly half a million people next year buy and keep their homes," Jackson said. He added that his department has "exhausted our own administrative actions."
Analysts said the reported plan from Treasury could either help or hurt efforts to pass mortgage-reform legislation. "We believe failure to implement a comprehensive freeze -- or any freeze at all -- at this point will reinvigorate Democratic efforts to enact mortgage-bankruptcy reform," wrote Jaret Seiberg of the Stanford Group Company, in a note Monday morning.
However, according to Brian Gardner of Keefe, Bruyette & Woods, the Treasury plan could take pressure off of lawmakers to push through reforms.
In a note Monday, the analyst said that the chances for a reform bill would be less than 25% if Treasury succeeds in its negotiations with the mortgage industry and if the Fed announces changes to rules governing high-cost mortgages.
View from the Boston Fed
Meanwhile, earlier Monday, Boston Fed Bank President Eric Rosengren said research at the Boston Fed suggests that the foreclosure crisis in subprime mortgages will get worse before it gets better.
Just how much worse depends on the outlook for the economy and housing, he commented: "Our forecast is quite dependent on how far home prices fall."
He urged community banks and states to focus on the 87% of subprime loans that are not seriously delinquent and where action may avoid future problems.
Rosengren said that he was not advocating any bailout, and wanted to use "existing programs for what they were designed to do." Some of the programs administered by the Federal Housing Administration could be modernized, he elaborated.
FHA lending is underutilized, falling to 2.8% of mortgages originations in 2006 from 16% in 2000. Many banks are not FHA-approved lenders, according to Rosengren.
Also Monday, Sen. Hillary Clinton called for a 90-day moratorium on home foreclosures, as well as a five-year freeze on the rates of adjustable mortgages.
Meanwhile, Senate Banking Committee Chairman Christopher Dodd, D-Conn., also a presidential candidate, called on the White House to push loan servicers to put in place broad-based and transparent loan modifications.
"Modifications also need to be made available to borrowers who have become delinquent because of loan resets, but who had been current prior to that. These homeowners should not be punished because of the abusive loans they were sold," Dodd said in a statement. End of Story
Robert Schroeder is a reporter for MarketWatch in Washington.
Greg Robb is a senior reporter for MarketWatch in Washington.
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correction

THE DOW  FELL  $  57.   POINTS FOR THE DAY .

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unhappy tuesday
well today was no different then monday , monday

now  , tuesday , tuesday  was down again    65 . plus points


and lets get it straight  ..............................

fox news is trying to report that foreign investors are buying up real estate down in MIAMI  , trying to turn an up beat to this housing mess .  little do they know , Miami is  a BAD AREA  , LET'S NOT FORGET NEXT YEARS HURRICANE SEASON ,   they were lucky this past year  with none .  I guess sell this area to who ever , but , you won't find me living in Miami ever again  , high crime , unrest in the area  , alot of boat refugees , illegals , etc. etc , etc .

going to be a big shock to the foreigners   , the joke will be on them .......
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sad news for CITI
BRING THEM DOWN


Navigation

A Bad News Day For Citigroup

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2007-12-04ml-implode.com

The punches directed at Citigroup continued to fly in today at a rate almost impossible to keep up with; causing us to forgo separate news items instead for this omnibus post. Here are the key items that came across our desk today regarding the behemoth money center bank:

  • Citigroup has appeared to clumsily reverse course on their previous "pledge" not to support their ailing SIV vehicles (now apparently reaching about $66 billion; formerly as high as $83 billion) in the form of statements by one William Mills:

    ... when queried on the bank's responsibility to the SIVs, Mill said: "From a reputational point of view, if we don't step in and support these vehicles, will that somehow hurt our reputation in the market?

    File that one in "if you have to ask", I guess...

  • Deutsche Bank CEO says "no thanks" to Citigroup CEO offer. He's "happy in Germany" apparently. What a charitable way to put it -- we'll file that one in "spending time with family" corporate management doublespeak...
  • In a move reminiscent of HSBC's sale-and-leaseback of their UK headquarters building earlier this year (after they started taking subprime write-downs), Citigroup has sold two (of their own) NY buildings for $1.6B... and are now leasing them back. Given lofty NY property values, this may not be the dumbest move, but we still consider it a bad sign (in addition we do not know the fair market valuation of the Citi buildings and hence whether they got a good deal).
  • And last but not least, from the "predictable, yet-excruciatingly-delayed" department, Citigroup SIV's Junior Sedna Debt Cut to CCC by Fitch. Some choice quotes from that article:

    Citigroup Inc.'s Sedna Finance Corp. had $867 million of junior-ranking debt downgraded 12 levels to CCC by Fitch Ratings after declines in the structured investment vehicle's assets.

    ...

    Sedna's net asset value has fallen to 54 percent, eroding nearly all the protection the downgraded ``second priority senior'' notes gets from ranking above the lowest layer of debt, Fitch said in a statement today. The securities will start losing money if the Cayman Islands-based SIV sells $500 million of assets to repay senior-ranking debt, according to Fitch.

    Losing 54% on a "can't lose" investment vehicle which is really a Cayman islands subsidiary created expressly to offload balance-sheet exposure... it all sounds so obviously foolish and sketchy in retrospect, doesn't it? And this hasn't been isolated to Citi, of course (our regular readers have an appreciation for this point).

    Hearking back to the Mills quote above, we have to wonder how even bailing out such vehicles will be sufficient to fully "repair the reputations" involved. I wouldn't trust them with my money.

original article | permalink to this page

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The Mortgage Mafia is Feeding on the Homes and Hopes of Americans.

“ I spent 33 years in the Marines, most of my time being a high-class muscle-man for big business, for Wall Street and the bankers. In short, I was a racketeer for Capitalism.”
from War is a Racket by Brig. Gen. Smedley Butler

“All of them are racketeers, but the corporate kinds are nastier.”
William B. Reynolds, Investigator

Guido sold the best pizza in Brooklyn. He had learned how from his Mama, a woman who understood why fresh matters in the Old Country. Guido's Pizza was therefore the busiest pizza parlor in Brooklyn, with customers standing in line for a seat. But Guido was ambitious; he wanted to expand into the now vacant shop next door so he could serve not only pizza but his Mama's special Marinara Sauce on their home-made pastas along with those knife thin slices of her special sausage and the roasted Mozzarella cheese dish that they reserved for special holidays.
Then, Guido imagined, he would open up franchises. Guido fancied the business model of McDonald's, Guido had hopes of becoming an International businessman with several shops in Manhattan. He sometimes gazed across the water to New York City, promising himself and his Mama, now deceased, that it would be so. He would even build a shop in their village back in Italy.
His Mama would be proud.
So Guido went down to the see the Capo, Mr. Clametto for a loan. Mr. Clametto sometimes came by to have a pizza, Clametto was always dressed well, in an expensive suit and bright tie.
Mr. Clametto slapped him on the back and shook his hand.
“What! You need money, God forbid you should have to ask when you make the best pizza I had in my life, even home in Sicily. Vinny will set you up. Say no more.”
Vinny had counted out 50,000.00 clams in hundreds on the way out, backed by the full faith and enforcement of Mr. Clametto's organization, Costa Nostra. Guido had never seen so much money in his life.
Today, Guido's Pizza has a different kind of clientèle and Guido understands that there was a hook in the cash.
Too much cash always has a hook, embedded deep enough so you do not see it. There would be no chain of shops serving wonderful food for Guido, only barriers to dreams.
Some racketeers come in flashy ties. Others wear quieter apparel but the hook is always ready and waiting.
Today Americans are finding the hook in the mortgage they took out on their home. Some of the mortgages written in the last seven years promised – and gave the borrower – 125% of the value of the house. Borrowers could hardly believe that it could be so easy to realize their dreams. Vacations, desperately needed medical treatments for those they loved, making their home into the vision they had hungered to have when they were still young enough to enjoy it. There were lots of reasons for borrowing. But those loans were made when the dollar was solid and real estate seen as an investment that could be expected to be better than gold. Those dreams are also dying. You see, your government has found a way to convert your home into a form of currency and you into a serf.

Vinny and Mr. Clametto wanted their money. So do those better dressed racketeers.
Sometimes when Mr. Clametto wanted to distract attention from what was really happening he would focus attention elsewhere. That is what has been going on with banks and mortgages today. According to the FBI, “ Mortgage fraud is a significant and growing concern in the United States. Mortgage fraud schemes are perpetrated by individuals acting alone or in collusion with borrowers, loan originators, or real estate professionals. All mortgage fraud schemes contain a material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. Given the significant role of mortgages in our economy, mortgage fraud has been recognized as a significant criminal problem by the FBI and has been treated accordingly.”
Individuals, like Mr. Guido, get a few thousand dollars more than necessary, still on the hook for the whole amount, and the bank writes a 'mortgage' using money that suddenly comes into existence like the Genie in the Bottle, having existed no place else but on a line entered into an account.
Notice that the FBI will not be investigating the banks. The chatter about 'mortgage fraud by individuals or your local broker,' is laid out by such as the FBI to distract you from the larger con, which is now reaching fruition.
We have a word for that, we call it collusion to commit fraud, massive fraud on a scale that threatens the International monetary system. This is racketeering that would have numbed the mind of Mr. Clametto with awe and envy. He might even buy a more subdued tie.
The conspirators, in this case, are those in charge of our government and their friends in banking. Proof of this lies in the fact they are now suspending foreclosure on homes. This fraud runs from your neighborhood to the White House in a trail of broken hearts and dreams of ordinary Americans. If that were not bad enough, we have also been victimized by political doublespeak where phrases like 'home ownership' are better understood as slavery.
There is an answer.
The first step on that path is to let the truth sink in. Then we, the people, need to come together and take action. The predatory nastiness of recent years has its roots in the same ugliness cited by Brigadier General Smedley Butler in his book, “War is a Racket,” published in 1935.
War is one kind of racket; real estate, the stock market, and nearly every part of your life, has sprouted with other rackets run by the same kinds of people. These con games, rackets all, are run by people very much like Mr. Clametto, though more conservatively dressed, who graduated from schools like Yale and live pampered lives. They expect wealth; they expect that they will never be held accountable for their own actions.
Smedley Butler was the most decorated general in America and had been the recipient of two Medals of Honor. Lowell Thomas, famous himself, said of Butler in the introduction written for the Reader's Digest version of, “War is a Racket,” “Even his opponents concede that in his stand on public questions, General Butler has been motivated by the same fiery integrity and loyal patriotism which has distinguished his service in countless Marine campaigns.”
Butler was personally responsible for stopping the attempted military take over of America's government in 1934. Among those who plotted that take-over was Senator Prescott Bush, the grandfather of George W. Bush. Clearly, W. is obsessed with finishing the job his grandfather started.
Then, as today, the media was owned by the corporations. The investigation in Congress, arising from the disclosure by General Butler, was quashed. General Butler died in 1940.
The job of wresting our lives back from the clutching grasp of the CorporaState remains to be accomplished. The book, “War is a Racket,” is not easy to find today but is one you should find and read. When you understand change will happen.

Hear more about what you can do and what you need to know on our radio show, Off the Grids from our guest, William Reynolds, who has spent a life time investigating those in power and finding the flaws in their plans. This show will air on BBSRadio.com, Friday, December 7th at 5pm Pacific Time, hosted by Melinda Pillsbury-Foster.

The Mortgage Mafia is Feeding on the Homes and Hopes of Americans.

“ I spent 33 years in the Marines, most of my time being a high-class muscle-man for big business, for Wall Street and the bankers. In short, I was a racketeer for Capitalism.”
from War is a Racket by Brig. Gen. Smedley Butler

“All of them are racketeers, but the corporate kinds are nastier.”
William B. Reynolds, Investigator

Guido sold the best pizza in Brooklyn. He had learned how from his Mama, a woman who understood why fresh matters in the Old Country. Guido's Pizza was therefore the busiest pizza parlor in Brooklyn, with customers standing in line for a seat. But Guido was ambitious; he wanted to expand into the now vacant shop next door so he could serve not only pizza but his Mama's special Marinara Sauce on their home-made pastas along with those knife thin slices of her special sausage and the roasted Mozzarella cheese dish that they reserved for special holidays.
Then, Guido imagined, he would open up franchises. Guido fancied the business model of McDonald's, Guido had hopes of becoming an International businessman with several shops in Manhattan. He sometimes gazed across the water to New York City, promising himself and his Mama, now deceased, that it would be so. He would even build a shop in their village back in Italy.
His Mama would be proud.
So Guido went down to the see the Capo, Mr. Clametto for a loan. Mr. Clametto sometimes came by to have a pizza, Clametto was always dressed well, in an expensive suit and bright tie.
Mr. Clametto slapped him on the back and shook his hand.
“What! You need money, God forbid you should have to ask when you make the best pizza I had in my life, even home in Sicily. Vinny will set you up. Say no more.”
Vinny had counted out 50,000.00 clams in hundreds on the way out, backed by the full faith and enforcement of Mr. Clametto's organization, Costa Nostra. Guido had never seen so much money in his life.
Today, Guido's Pizza has a different kind of clientèle and Guido understands that there was a hook in the cash.
Too much cash always has a hook, embedded deep enough so you do not see it. There would be no chain of shops serving wonderful food for Guido, only barriers to dreams.
Some racketeers come in flashy ties. Others wear quieter apparel but the hook is always ready and waiting.
Today Americans are finding the hook in the mortgage they took out on their home. Some of the mortgages written in the last seven years promised – and gave the borrower – 125% of the value of the house. Borrowers could hardly believe that it could be so easy to realize their dreams. Vacations, desperately needed medical treatments for those they loved, making their home into the vision they had hungered to have when they were still young enough to enjoy it. There were lots of reasons for borrowing. But those loans were made when the dollar was solid and real estate seen as an investment that could be expected to be better than gold. Those dreams are also dying. You see, your government has found a way to convert your home into a form of currency and you into a serf.

Vinny and Mr. Clametto wanted their money. So do those better dressed racketeers.
Sometimes when Mr. Clametto wanted to distract attention from what was really happening he would focus attention elsewhere. That is what has been going on with banks and mortgages today. According to the FBI, “ Mortgage fraud is a significant and growing concern in the United States. Mortgage fraud schemes are perpetrated by individuals acting alone or in collusion with borrowers, loan originators, or real estate professionals. All mortgage fraud schemes contain a material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. Given the significant role of mortgages in our economy, mortgage fraud has been recognized as a significant criminal problem by the FBI and has been treated accordingly.”
Individuals, like Mr. Guido, get a few thousand dollars more than necessary, still on the hook for the whole amount, and the bank writes a 'mortgage' using money that suddenly comes into existence like the Genie in the Bottle, having existed no place else but on a line entered into an account.
Notice that the FBI will not be investigating the banks. The chatter about 'mortgage fraud by individuals or your local broker,' is laid out by such as the FBI to distract you from the larger con, which is now reaching fruition.
We have a word for that, we call it collusion to commit fraud, massive fraud on a scale that threatens the International monetary system. This is racketeering that would have numbed the mind of Mr. Clametto with awe and envy. He might even buy a more subdued tie.
The conspirators, in this case, are those in charge of our government and their friends in banking. Proof of this lies in the fact they are now suspending foreclosure on homes. This fraud runs from your neighborhood to the White House in a trail of broken hearts and dreams of ordinary Americans. If that were not bad enough, we have also been victimized by political doublespeak where phrases like 'home ownership' are better understood as slavery.
There is an answer.
The first step on that path is to let the truth sink in. Then we, the people, need to come together and take action. The predatory nastiness of recent years has its roots in the same ugliness cited by Brigadier General Smedley Butler in his book, “War is a Racket,” published in 1935.
War is one kind of racket; real estate, the stock market, and nearly every part of your life, has sprouted with other rackets run by the same kinds of people. These con games, rackets all, are run by people very much like Mr. Clametto, though more conservatively dressed, who graduated from schools like Yale and live pampered lives. They expect wealth; they expect that they will never be held accountable for their own actions.
Smedley Butler was the most decorated general in America and had been the recipient of two Medals of Honor. Lowell Thomas, famous himself, said of Butler in the introduction written for the Reader's Digest version of, “War is a Racket,” “Even his opponents concede that in his stand on public questions, General Butler has been motivated by the same fiery integrity and loyal patriotism which has distinguished his service in countless Marine campaigns.”
Butler was personally responsible for stopping the attempted military take over of America's government in 1934. Among those who plotted that take-over was Senator Prescott Bush, the grandfather of George W. Bush. Clearly, W. is obsessed with finishing the job his grandfather started.
Then, as today, the media was owned by the corporations. The investigation in Congress, arising from the disclosure by General Butler, was quashed. General Butler died in 1940.
The job of wresting our lives back from the clutching grasp of the CorporaState remains to be accomplished. The book, “War is a Racket,” is not easy to find today but is one you should find and read. When you understand change will happen.

Hear more about what you can do and what you need to know on our radio show, Off the Grids from our guest, William Reynolds, who has spent a life time investigating those in power and finding the flaws in their plans. This show will air on BBSRadio.com, Friday, December 7th at 5pm Pacific Time, hosted by Melinda Pillsbury-Foster.

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