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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Moose
(1) This round of this bailout isn't going to save anyone's home from foreclosure. But the next could.

(2) This is a forced mark-to-market exercise, where instead of having to take the loss, the pool owners/investors get to hand the loss to the federal government who will then try and sell it off to someone else within two years.

(3) If your loan is in a pool that is substantially upside-down in terms of loan balances vs. property values and has the smell of the kind of predatory loans made by Countrywide, Ameriquest and New Century, chances are the ownership of the pool will change but the servicing may not.

Having said that - I don't see anything in this hastily-drawn legislation that would stop the Treasury department from setting the terms and conditions of the pools of loans they own when they turn and resell them. In other words, they could effectively do what some want bankruptcy judges to be able to do - cram down the principal balance to what the property is really worth and set a less-usurious interest rate, something servicers/investors aren't willing to do.

There are millions of people out here who can and will continue to make reasonable mortgage payments on properties that aren't ridiculously upside down.

Time to contact your legislator and make sure they understand that this MUST be allowed to be used to save homes by making the Treasury do what the servicers and trustees currently won't.

Moose



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Has the treasury ever done something like this before?

I guess I am asking you why you would trust the treasury to do anything more than hand out corporate welfare to these predators.

Of course, there will be no oversight? 

Borrowers need protection from predators in this industry.  We see the result
of  no regulation.

They've privatized the profits and shifted the debt to the public.
Nice gambling odds.

Dee
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Andy
Moose- you seem to be the dude. So can you help me understand this?

I have gone all over the web trying to find answers. It's all very vague & I am really questioning their request for no oversite.  A money dictator of sorts. To me that is frightening!! I don't trust these people who have spent the last decade getting richer, at our expense.

From what I have seen- it sounds like the fed is going to buy bad debt. Bad debt? Does that mean loans that have been foreclosed upon? (remove them from the loan pool?) Didn't they get their money when they sold the houses at the forclosure sale? Why would those loans still be in the pool?
 Don't they have to remove refinanced loans from those same pools?

Or are they calling bad debt those loans that are in the process of being forclosed on? I guess I want an defination of what they are calling bad debt.

From the last article that I read it sounds like they will just hand money over to the funder yet leave the collection control with the present servicer. Won't that be even more confusing? How will that stop forclosures? It won't!!!I can see that will just make it easier & more profitable for these servicers to continue or even esculate what they are doing. Their duty was to ensure the investors profitability. The feds will now take over the job of guarenteeing the investors of their money. I can't see these servicing companies suddenly doing their jobs right just because the taxpayers are on the line.  

Once the fed buys all these bad loans how are they going to turn them into performing loans that could be sold again probabally back to the same company for less. I have heard that some hold that the feds can turn this into a profitable venture. How? They would have to turn it into good debt first. No decent investor would buy into loans that were bad. unless they have bad intentions of yet more fraud.

I guess my question remans the same. What is the difination of Bad debt that the feds will be purchasing ????????????????????????????????????????? 
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arkygirl
Paulson and Co. understand the nature of the “emergency”: if too many Americans pry into the text of the "emergency" legislation, they will find this at Article VIII:

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

It reminds me very much of Article VI of the Constitution of the The Union Of Soviet Socialist Republics:

“The Communist Party, armed with Marxism-Leninism, determines the general perspectives of the development of society and the course of the home and foreign policy of the USSR, directs the great constructive work of the Soviet people, and imparts a planned, systematic and theoretically substantiated character to their struggle for the victory of communism.”

Article VI was all the party needed for totalitarian power. All the rest was window-dressing for American apparatchiki to scratch their heads over. In the "Workers Paradise," nobody even bothered.

Now, when American taxpayers see Article VIII, they might recognize that it effectively grants “The Secretary” dictatorial powers without revelation to, or review by, any Constitutional authority (including "We the People,").

Resolved: “The Secretary” must be unimpeded by the hoi polloi as he goes about “saving the financial system” and burying our constitutional republic.

Therefore, be it resolved that, in order to prevent any unpleasant actions on the part of the masses that might impede “The Secretary” in his messianic mission, the neocons now present a new distraction for us, guaranteed to take the pressure off the useful idiot.

Knowing this, how many times have you ever known the Power Elites to worry about US, the little Main Street guy? They don't give a flip about rotten loan servicing; never have. Even the Fairbanks outcome was too little and largely unenforced since it was done.

You are a smart person, Dee. I think you may be able to discern the answer for yourself. If Congress rubber stamps this atrocity, we are done. The government evidently wants to own everything but it has never been too big on demanding accountability since to do so might shine a light on its own self.

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M&M


Boston Globe
Bush Urges Quick Passage of Bailout Package
Washington Post - 1 hour ago
By Lori Montgomery, David Cho and Howard Schneider President Bush this morning warned lawmakers against trying to make too many changes to the proposed financial bailout legislation, saying the plan needs to be passed quickly and relatively intact to ...
Video: Will The Feds' Plan Work? CBS

Busch: The Political Process And The Plan CNBC
Wall Street Journal - BusinessWeek - Wall Street Journal Blogs - Radar Online
all 2,768 news articles »

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Andy
It's the rush to enact the fix is what really makes me suspicious. They want us so scared that in our fear, we allow them to grab all powers & now ownership of our homes.

it's just another way of repressing the middle class.

History has proven that when people are oppressed by the powers that they will rebell.

it is the biggest cause of wars.  
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TommyD

Yes and we all remember that congress must vote go to war to find the weapons of mass destruction in Iraq.

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Moose
Andy wrote:


From what I have seen- it sounds like the fed is going to buy bad debt. Bad debt?


Andy - don't confuse the Federal Reserve with the Treasury department. The US Treasury is planning to buy the toxic waste and resell it at some later date.

Andy wrote:
Does that mean loans that have been foreclosed upon? (remove them from the loan pool?) Didn't they get their money when they sold the houses at the forclosure sale? Why would those loans still be in the pool?


No, a foreclosed loan no longer exists. The asset that secured it has been sold or is in someone's REO inventory.

Andy wrote:
Don't they have to remove refinanced loans from those same pools?


A loan that has been refinanced has been replaced. The new loan is part of another pool, which may or may not be toxic and part of an even more contaminated pool.

Andy wrote:
Or are they calling bad debt those loans that are in the process of being forclosed on? I guess I want an defination of what they are calling bad debt.


A loan in the process of foreclosure is probably still part of a pool in which investors hold various tranches of securities. It surely qualifies as "bad debt" because it's about to be written off.  But it may or may not have been sold off to one of the predatory "special servicers" for the purpose of foreclosing. If that's the case, the new "owner" is going to try and squeeze blood out of the turnip and foreclose when there is no more blood. Those kinds of loans are usually no longer associated with pools.

Andy wrote:
From the last article that I read it sounds like they will just hand money over to the funder


Acutally, the cash will go to the bond holder/investors - maybe that's what you meant by funder, but the funder is out of the picture once a loan is originated and securitized. The way it appears, the Treasury department will offer to buy the pool from the Trustee in a reverse auction style of bidding. Once the Treasury owns that pool (the assets of the trust), who they appoint as trustee is undefined in the reg. As I read it, they could leave the servicer in place or find another one. Hell, they can do just about anything they want.

In other words, if they pay $10M for some toxic waste (say with $30M "book" value), they become the trustee, the investors get $10M no matter what they thought their bonds were worth and write off $20M. The pool might only be worth $1M after it's bought and the Treasury department can pick and choose who to do the servicing.

Andy wrote:
yet leave the collection control with the present servicer. Won't that be even more confusing? How will that stop forclosures? It won't!!!I can see that will just make it easier & more profitable for these servicers to continue or even esculate what they are doing. Their duty was to ensure the investors profitability. The feds will now take over the job of guarenteeing the investors of their money. I can't see these servicing companies suddenly doing their jobs right just because the taxpayers are on the line.


But as I see it unfolding, the Treasury department becomes the trustee and thus the new customer of the current servicer. I think we'll be seeing the "just keep paying your mortgage as you always have" message shortly.

The way the law appears to be written, as the new trustee, there can't be any legal challenges to what the Treasury department decides. If they want a new servicer, they can get one. They can also tell the new servicer that the loan balance is $X and the interest rate is %Y that's what it is. Obviously, some lawyers are going to have a field day with the seemingly limitless power the Secretary will have over these existing agreements (PSAs).

Andy wrote:
Once the fed buys all these bad loans how are they going to turn them into performing loans that could be sold again probabally back to the same company for less.


Once again, it's not the Federal Reserve - it's the Treasury department. The pools become assets of the US Government. I seriously doubt they think they could make them "performing" without radically changing the terms and conditions of a lot of them.  And the income tax issues are going to boggle the minds of the CPA's for some time on this one.

Andy wrote:
I have heard that some hold that the feds can turn this into a profitable venture. How? They would have to turn it into good debt first. No decent investor would buy into loans that were bad. unless they have bad intentions of yet more fraud.


It depends on how aggressive the Treasury is in buying the pools and fixing them. I seriously doubt anyone really believes they can make a profit on these things when they're resold, but if they do the cram-down, there will be buyers willing to take the now-peforming loans off the Treasury's books. But it will be done at a huge loss.

Andy wrote:

I guess my question remans the same. What is the difination of Bad debt that the feds will be purchasing ????????????????????????????????????????? 


I think that can be defined as anything that no one else will buy at any price.

As always, not legal advice. Your mileage may vary. Objects in mirror are closer than they appear. Close cover while striking.

Moose

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FIRE PAULSON!
 
GET THE 85 BILLION BACK FROM A.I.G.!
 
REJECT THE BAILOUT!
 
IMPEACH SEN. DODD FOR CORRUPTION AND KICKBACKS! FOR HIS DEALINGS WITH THE SEC.
 
ALLOW THE SHORT SELLING ON THE 800 PLUS PROTECTED COMPANIES NOW! 
 
AND MAYBE WE WOULD SEE A FREE MARKET AGAIN. 
 
OTHERWISE, ITS JUST FURTHER GOVERNMENT TAKE OVERS OF PROPERTY!  OUR CONSTITUTIONAL RIGHTS ARE BEING TAKEN AWAY FROM US,  MOOSE IS RIGHT ON
 
ITS TIME TO SPEAK UP OR LOOSE YOUR RIGHTS FURTHER, AND YOUR CHILDREN'S CHILDREN WILL BE ASKING "WHAT DID YOU DO TO STOP THE TAKE OVER OF OUR GOVERNMENT".  
 
 
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BISHOP
YESTERDAY'S MEET THE PRESS SEGMENT HAD THE WASHINGTON POST'S MR. PEARLSTEIN, A BUSINESS COLUMNIST THERE, PLEADING THE CAUSE THAT IT WE AS A NATION CAN PURSUE CRIMINAL CHARGES LATER FOR THE FRAUD, BUT WE SHOULD PASS THE PROPOSED LEGISLATION IMMEDIATELY.

THE VEILED REFERENCE TO CRIMINAL CHARGES AND INVESTIGATIONS ARE IMPLYING A KNOWLEDGE OF THE CRIMINAL NATURE OF THE ENTERPRISE IN ITS ENTIRETY....FROM THE FEDERAL RESERVE (WHO REGULATED FANNIE AND FREDDIE SINCE 1994 BY AN ACT OF CONGRESS) TO THE RATINGS AGENCIES TO THE INVESTMENT BANKERS THAT OPERATED THE SCAM TO THE SERVICERS THAT TRIED TO KEEP THE ENTIRE THING AFLOAT AND MAKE A PROFIT TOO BY CREATING FRAUDULENT DEFAULT CONDITIONS.

SEVERAL COURTS AND JUDGES ACROSS THE NATION HAVE AIDED AND ABETTED THE FRAUD BY IGNORING IRREFUTABLE EVIDENCE OF THE FRAUD INVOLVED IN THE "SECURITIZING" OF A NOTE IN SEVERAL PORTFOLIOS SIMULTANEOUSLY. THE RED FLAGS BY SEVERAL COURAGEOUS HOMEOWNERS WHO ATTEMPTED TO RESIST THE FRAUDULENT SERVICING POLICIES WERE IGNORED BY THE COURTS, BY THE JUSTICE DEPARTMENT, BY THE SEC, BY THE FBI, BY THE FTC AND OFHEO. 9-11 WAS NOTHING COMPARED TO THIS IN TERMS OF GOVERNMENT INCOMPETENCE.

THE NATURE OF THE SCAM IS IMMENSE, BUT, NEVERTHELESS IT IS CAPABLE OF BEING REMEDIED.

WRITE YOUR CONGRESSMAN AND SENATORS AND TELL THEM TO VOTE "NO" ON THE PROPOSED LEGISLATION THAT THE FED WANTS PASSED. TELL THEM TO PUT PROVISOS AND RIGHTS TO DUE PROCESS TO BOTH HOMEOWNERS THAT HAVE BEEN DEFRAUDED BY THIS SCAM AND TO DEMAND THAT CRIMINAL CHARGES BE BROUGHT AGAINST THE ARCHITECTS AND CONTRACTORS INVOLVED IN THIS CHARADE. TELL THEM TO PLAY HARDBALL AND START PRINTING OUR OWN MONEY, INSTEAD OF RELYING ON "FEDERAL RESERVE NOTES." TELL THEM TO AMEND THE FEDERAL RESERVE ACT TO PROVIDE FOR "SUNSETTING" THE FEDERAL RESERVE ACT WITH NEW DOLLARS BEING ISSUED BY THE U.S. TREASURY WITHOUT INVOLVEMENT OF THE PRIVATEER LIKE THE FEDERAL RESERVE...OR THE "BANK OF THE UNITED STATES" (WHICH WAS A EUPHIMISM UTILIZED DURING ANDREW JACKSON'S TERM IN OFFICE IN THE 1830's) IT MUST BE NOTED THAT THE ONLY YEAR IN WHICH THE UNITED STATES RECORDED A SURPLUS IN TERMS OF INCOME TO EXPENDITURE WAS 1835, THE YEAR AFTER OLD HICKORY, ANDREW JACKSON, PUT AN END TO THE BANK OF THE UNITED STATES.

THIS IS AN OPPORTUNITY THAT SHOULD NOT BE LET GO OF.

THE FEDERAL RESERVE IN CONJUNCTION WITH FANNIE MAE, FREDDIE MAC, GOLDMAN SACHS, LEHMAN BROTHERS AND THE MEMBER BANKS OF THE FEDERAL RESERVE ESTABLISHED A FRAUDULENT SYSTEM OF ESSENTIALLY CREATING WEALTH BY THE SALE OF YOUR MORTGAGE NOTES MANY MANY TIMES TO VARIOUS UNSUSPECTING FOREIGN INVESTORS THAT RELIED SOLELY ON WHETHER THE RATINGS AGENCIES INDICATED THAT THE PORTFOLIO WAS A TRIPLE A ....DOUBLE A....SINGLE A YIELDED PORTFOLIO.

THE FED REFERS TO THIS AS THE "SECURITIZATION OF MORTGAGE NOTES." IN REALITY, IT IS THE MECHANISM BY WHICH THE FEDERAL RESERVE CONTROLS THE FLOW OF DOLLARS BACK TO THE UNITED STATES. SUPPOSEDLY, BY OPERATION OF "RATINGS AGENCIES" (ENTITIES THAT ASSIGN A "RATING OF THE PORTFOLIO OF MORTGAGE BACKED SECURITIES) WHO GAVE THE PORTFOLIOS FAVORABLE "RATINGS" ON WHICH THE FOREIGN INVESTOR RELIED AND TRUSTED IN HIS DECISION TO BUY OR NOT TO BUY THE "SECURITY", HOWEVER, SINCE THE HOLDER/OWNER OF THE PORTFOLIO'S MORTGAGE NOTES EXPECTED TO BE PAID FOR THEIR INVESTMENT, THE SERVICER HAD TO PRODUCE THAT INCOME STREAM AND MORE BY MANUFACTURING DEFAULTS OF PAYMENT OF THE MORTGAGE SO  AS TO GENERATE "LATE FEES", "LOAN MODIFICATION FEES", AND AN ENTIRE ZOO OF FICTITIOUS FEES SO THAT THEY COULD MAKE A PROFIT TOO.

IN THE PROCESS OF CREATING A FALSE AND FICTITIOUS DEFAULT, WHEN IT WAS TIME TO "RE-WRITE" OR "MODIFY" THE NOTE, THE SO-CALLED "SUB-PRIME" BORROWER NOW HAD TO PAY MORE MONTHLY INTEREST ON THE NOTE TO REMAIN IN THE HOME. IN THE MEANTIME, ALL THE FEES GENERATED BY THIS KEPT THE PONZI SCHEME CREATED BY FANNIE MAE, AND THEIR INVESTMENT BANKERS AFLOAT. THE PROCESS KEPT THE HOMEOWNER ON A NEVER ENDING TREADMILL OF DEBT AND FEE PAYING WITH NO END IN SIGHT. THE SCHEME WAS BRILLIANTLY EXECUTED UNDER THE FED'S WATCH AND REGULATORY POWER OVER FANNIE AND FREDDIE.

THE FACT WAS THAT THE MORTGAGE NOTES WERE SOLD SEVERAL TIMES OVER BY INVESTMENT BANKERS WHO HAD SOLD A SINGLE NOTE AS MANY AS THREE TIMES IN VARIOUS PORTFOLIOS.

THE SCHEME WAS EXPOSED BY SEVERAL WHO INSISTED THAT THE ORIGINAL NOTE BE PRODUCED TO PROVE OWNERSHIP AND ENTITLEMENT TO FORECLOSE.

WHEN THE SERVICERS WERE FORCED TO PRODUCE THE ORIGINAL NOTE TO "PROVE" THEIR AUTHORITY TO COLLECT ON THE NOTE DURING JUDICIAL PROCEEDINGS DURING A FORECLOSURE, SUDDENLY IT WAS EVIDENT THAT THE NOTE HAD BEEN SOLD SEVERAL TIMES IN SEVERAL DIFFERENT PORTFOLIOS. TO COVER THE BACKSIDE OF THE FRAUD, SEVERAL COURTS IGNORED THE EVIDENCE AND ALLOWED THE FORECLOSURE ANYWAY.

WHEN THE FEDERAL COURTS IN OHIO STARTED DISMISSING THESE FORECLOSURE CASES BECAUSE OF THE INABILITY OF THE PLAINTIFFS AND LENDERS TO PROVE OWNERSHIP OF THE NOTE, AND OTHER COURTS STARTED DISMISSING THESE CASES TOO, THE ONLY WAY OUT OF THE MESS IS TO CREATE A "CRISIS" AND TALK ABOUT IT IN TERMS OF A "FINANCIAL MELTDOWN" SO AS TO FORCE THE U.S. Congress TO ENACTING LEGISLATION TO "STAVE OFF A FINANCIAL MELTDOWN."

LADIES AND GENTLEMEN, WE ARE A PROUD NATION WITH BRILLIANT MINDS THAT HAVE BEEN OPPRESSED BY A BOOM BUST CYCLE THAT THE FEDERAL RESERVE ORCHESTRATES AND MANIPULATES TO HAVE THEM REMAIN "IN CONTROL" AND BE THE "DECIDER" OF THE COURSE OF OUR NATION'S FINANCIAL WEALTH. FROM THEIR LATEST ACTIONS IT IS APPARENT THAT WE ARE TO BE CONDEMNED TO A NEVER ENDING LIFE OF DEBT PAYMENT TO THEM FOR THEM DOING NOTHING AND PRODUCING NO REAL WEALTH AT ALL.

THE LATEST IS JUST A CASE OF THE FEDERAL RESERVE ALONG WITH THE REST OF THE FRAUDSTERS HAVING TO PAY THE PIPER. NOW THEY WANT IMMUNITY BY WAY OF SPECIAL LEGISLATION THAT ALLOWS THEM TO DETERMINE WHO WILL BE PROSECUTED AND WHO WILL NOT.

THE MEDIA WILL TRY TO SCARE YOU INTO SUPPORTING THIS UTTER NONSENSE. DON'T BE FOOLED. THE FACT IS THAT THE SUB-PRIME EXCUSE MUCH BALLYHOOED IN THE MEDIA IS A BIG LIE. IT IS A WAY OF ASSURING THE PUBLIC THAT THE FED HAS BEEN "VICTIMIZED" BY "UNSRUPULOUS EXCESSES" OF HOMEOWNERS INCAPABLE OF PAYING BACK WHAT THEY BORROWED. NOTHING IS FURTHER FROM THE TRUTH.

THE FACT IS THAT THE FOREIGN INVESTORS WHO HAVE DISCOVERED THE FRAUDULENT NATURE OF THE WORTHLESS PAPER THAT THEY HAD BOUGHT FROM THE INVESTMENT BANKERS' MORTGAGE PORTFOLIOS WERE THREATENING RESTITUTION THROUGH JUDGMENTS THAT THEY WERE GOING TO OBTAIN IN THE HAIG, NETHERLANDS, IN THE INTERNATIONAL COURTS. BY THE FED GETTING SPECIAL LEGISLATION THROUGH CONGRESS...THEIR CO-FRAUDSTERS WILL BE GIVEN IMMUNITY FROM PROSECUTION BY THEIR ACTIONS...THEREBY SHORTCIRCUITING THE COURTS AND CRIMINAL PROSECUTION. SURE, ACTIONS MAY STILL BE TAKEN IN THE HAIG, BUT, WHO WOULD ENFORCE THE JUDGMENT??  NO ONE. THE BASIS FOR LACK OF ENFORCEMENT WOULD BE THE SPECIAL LEGISLATION THAT WAS PASSED BY THE CONGRESS AND SIGNED INTO OFFICE.

THIS LEGISLATION MUST BE PASSED BEFORE THE NOVEMBER ELECTION TO ENSURE THE SUCCESS OF THE PLAN. WITH THE ECONOMY IN THE STATE THAT IT IS IN, THE DOLLAR VIRTUALLY WORTHLESS, UNCERTAINTY AS TO WHO WILL BE ELECTED TO THE OFFICE OF PRESIDENT IS MAKING EVERYONE THAT PLAYED A PART OF THE FRAUD SCHEME VERY NERVOUS. THAT IS WHY THE "BUM'S RUSH" TO GET THE LEGISLATION PASSED.

SELDOM, IF EVER, HAS THERE EVER BEEN A BETTER OPPORTUNITY TO THROW OFF THE CHAINS OF AN OPPRESSIVE TASKMASTER/SLAVEMASTER LIKE THE FEDERAL RESERVE AND THEIR LEGIONS OF FRAUDSTERS. IT IS TIME FOR THE U.S. CONGRESS TO IGNORE THIS PANIC BASED PRESSURE AND GO ABOUT THE BUSINESS OF ENACTING LEGISLATIO TO SUNSET THE FEDERAL RESERVE ACT AND BEGIN THE PROCESS OF RE-ESTABLISHING A CENTRAL BANK CONTROLLED BY THE PEOPLE BY MONEY PRINTED BY THE TREASURY THAT IS NOT SUBJECT TO THE WHIM AND WHIMSY OF THE FEDERAL RESERVE BOARD OF GOVERNORS AND A MANIPULATIVE CHAIRMAN.

NO GOVERNMENT CAN MAINTAIN OR ASSURE ITS PEOPLE THEIR ECONOMIC FREEDOMS WHEN SUBJECT TO THE MANIPULATION BY A PRIVATE BANKING SYSTEM THAT HAS COMMITTED THE BIGGEST FRAUD IN THE HISTORY OF MODERN TIMES. NOW, THEY WANT TO PANIC US INTO MORE LEGISLATION THAT ASSURES THEIR IMMUNITY.

I SAY TO OUR ELECTED OFFICIALS, PLEASE DON'T BE RUSHED INTO SUPPORTING THE UTTER MANIPULATION OF YOUR ECONOMIC FEARS AND UNCERTAINTIES. PLEASE DON'T PASS THIS LEGISLATION DESIGNED TO LET OFF THE CRIMINAL FRAUD THAT HAS UNDERPINNED THE CURRENT ECONOMIC CRISIS...IT'S NOT ABOUT SUB-PRIME, OR BAD MORTGAGES, OR ABOUT OVER-VALUED HOUSING,....IT IS ABOUT THE FOREIGN INVESTORS' DISCOVERY OF THE WORTHLESS NATURE OF THE PORTFOLIO THAT THEY PURCHASED WHICH HAS CAUSED THE ATTACK ON THE VALUE OF THE U.S. DOLLAR.

FRANKLY, I DON'T SEE HOW TO RE-ESTABLISH TRUST IN A CURRENCY WITH THE CURRENT HIERARCHY IN PLACE.

WE AS TAXPAYERS SHOULD NOT MORTGAGE OUR GRANDCHILDREN'S FUTURES BY ALLOWING THE PROPOSED LEGISLATION TO BE PASSED INTO LAW. OTHERWISE, WHEN OUR CHILDREN AND GRANDCHILDREN ARE AT THE AGE THAT WE ARE NOW, THEY WILL HAVE A NEW "CRISIS" THAT HAS BEEN MANUFACTURED BY THE CURRENT GROUP OF FINANCIERS THAT GET RICH WHILE THE TAXPAYER TAKES IT ON THE CHIN FOR THE SAKE OF SOME LAME PREMISE OF LOYALTY OR PATRIOTISM.

PLEASE CONGRESSMEN/WOMEN, DO NOT PUT THE FOX IN THE HEN HOUSE ONCE AGAIN. IF THE FED WAS CALLED TO ACCOUNT TOMORROW AND A REPLACEMENT CURRENCY AND AGENCY BE ESTABLISHED, THE WORLD WOULD STILL FUNCTION IF YOU PLAN FOR THE REPLACEMENT CURRENCY THAT WOULD SUPPLANT THE TATTERED AND WORN GREENBACK. THE MAGIC OF TECHNOLOGY IS THAT WHAT IS SEEMINGLY AND INSURMOUNTABLE TASK CAN BE SIMPLIFIED AND EXECUTED IN AN EFFICIENT TIME FRAME.

PLEASE U.S. LEGISLATORS, DO WHAT IS POSSIBLE FOR YOUR CHILDREN'S AND GRANDCHILDREN'S FUTURES. NO ONE WANTS THEIR OFFSPRING SUBJECTED TO NEVER ENDING LIVES OF DEBT PAYMENT. DO NOT VOTE FOR THE LEGISLATION DEMANDED BY THE FED UNLESS TO BARGAIN FOR THE BEST POSSIBLE OUTCOME AS DESCRIBED ABOVE. DO NOT RUSH TO LEGISLATE TO AVOID A "MELTDOWN"....INDEED.

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Andy
Thanks moose. You put it it terms that I can understand. Unfortunatly it makes it even more terrifying. I don't really think that average Joe knows what's going on.

I admit that I call anything to do with the Goverment the Fed. I will have to correct my nicknames for the corruption. There is just so much of it.

Even if they do bail out the creeps that made & profited from this mess- I don't see how it helps in the long run. It's a bandaid. It's just pumping in phoney money into a system that doesn't work.  

To me it almost seems like a childish trait. The banks/wallstreet is saying BUY OUR BAD DEBT or we won't lend any money. We'll shut the country down. It's almost like they are holding us all for ransom.

This administration has a history of screwing up anything they touch. I don't see how we can trust them to do what's best in the long run.  

I was never one to believe all those conspiracy theories. I would read it & say no way, this is America. But it seems as time goes on more & more of those threories are becoming truth.

It's really sad.
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Moose
Andy wrote:
Thanks moose. You put it it terms that I can understand. Unfortunatly it makes it even more terrifying. I don't really think that average Joe knows what's going on.


That's the fundamental problem. Most people are so busy doing whatever it is they do day in and day out that the world of "high finance" is as misunderstood as medicine.

Andy wrote:
I admit that I call anything to do with the Goverment the Fed. I will have to correct my nicknames for the corruption. There is just so much of it.

Even if they do bail out the creeps that made & profited from this mess- I don't see how it helps in the long run. It's a bandaid. It's just pumping in phoney money into a system that doesn't work.  

To me it almost seems like a childish trait. The banks/wallstreet is saying BUY OUR BAD DEBT or we won't lend any money. We'll shut the country down. It's almost like they are holding us all for ransom.


Nothing new there. He who has the gold makes the rules.

Andy wrote:
This administration has a history of screwing up anything they touch. I don't see how we can trust them to do what's best in the long run. 


If it was only this administration that would simplify things. There is little that can drive this bus off the road that takes place in a matter of a few years let alone two or even three presidential administrations. Loan securitization REMICs were sponsored by a Democrat congress and signed into law by Ronald Reagan over twenty years ago. Go figure. Some try to put the blame on liberals forcing the industry to loan to minorities but that just doesn't hold water when you consider most of the really bad loans came from outside the "banks."

Andy wrote:
I was never one to believe all those conspiracy theories. I would read it & say no way, this is America. But it seems as time goes on more & more of those threories are becoming truth.

It's really sad.


The same conspiracies have been running around for decades. Many of them have some really ugly background connection to sources aligned with, or part of hate groups.

The purveyors love to feed on uncertainty and doubt. But once you scratch the surface you start finding "secrets" that have allegedly been secrets for years and years and are just rehashed distractions. Pretty soon, EVERYONE has to be part of the conspiracy.

The industry loves it when that happens.

Moose
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neveaeh

(1) This round of this bailout isn't going to save anyone's home from foreclosure. But the next could.

(2) This is a forced mark-to-market exercise, where instead of having to take the loss, the pool owners/investors get to hand the loss to the federal government who will then try and sell it off to someone else within two years.

(3) If your loan is in a pool that is substantially upside-down in terms of loan balances vs. property values and has the smell of the kind of predatory loans made by Countrywide, Ameriquest and New Century, chances are the ownership of the pool will change but the servicing may not.

Having said that - I don't see anything in this hastily-drawn legislation that would stop the Treasury department from setting the terms and conditions of the pools of loans they own when they turn and resell them. In other words, they could effectively do what some want bankruptcy judges to be able to do - cram down the principal balance to what the property is really worth and set a less-usurious interest rate, something servicers/investors aren't willing to do.

There are millions of people out here who can and will continue to make reasonable mortgage payments on properties that aren't ridiculously upside down.

Time to contact your legislator and make sure they understand that this MUST be allowed to be used to save homes by making the Treasury do what the servicers and trustees currently won't.

Moose
-----------------------------------------------------------------------

Moose,


Our case is in Fed Court in Chicago.  We were foreclosed on, but still living in our home even past the redemption period. We have an excellant attorney. We have RESPA and TILA violations in our suit and of course, the argument to prove ownership of the loan, invalid foreclosure, etc argument.

What happens to our suit since it is in Fed court and has been since last year?  Does this mean we can't sue now to get our house back?

Our attorney is out of town for two weeks and I really want to know what this means for us with the possible bailout...


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I agree with you Bishop!!

We have all been writing congress, filing complaints for years warning them that something was going on terribly wrong with the banks, mortgage companies, lender's and more so the "Mortgage Servicers".

I wrote my particular congressional members, senators and  file complaints with HUD, FTC, OCC, local and  state politicians, advocacy groups, state enforcement agency's, and the media (broadcast and written). When I contacted them they acted as though it was harassment, when I was only trying to get their assistance.  Still at this late juncture, I have not gotten any help or a real solution to any of my sub prime lending concerns. 

None of them did anything and this why we have the horrible crisis that we have today because they ignored people like you, me and everyone else on this forum.
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O -

This lady was no help at all. She didn't seem to want to do her job, I know some one else that has complained about her also.

Allison Finn
Assistant Attorney General
Economic Crimes Division
Office of the Attorney General
State of Florida
PL-01 The Capitol
Tallahassee FL 32399-1050
850-414-3600


Liberty 22 wrote:
I agree with you Bishop!!

We have all been writing congress, filing complaints for years warning them that something was going on terribly wrong with the banks, mortgage companies, lender's and more so the "Mortgage Servicers".

I wrote my particular congressional members, senators and  file complaints with HUD, FTC, OCC, local and  state politicians, advocacy groups, state enforcement agency's, and the media (broadcast and written). When I contacted them they acted as though it was harassment, when I was only trying to get their assistance.  Still at this late juncture, I have not gotten any help or a real solution to any of my sub prime lending concerns. 

None of them did anything and this why we have the horrible crisis that we have today because they ignored people like you, me and everyone else on this forum.

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Maryland
I have to agree with Liberty 22.  In reading the various "threads" for self-education and remembering my American History - starting with the colonies breaking away from England and England still extracting their form of Law and Order; I see no changes. 

Seriously, I'm don't get it - I understand we have a problem but I also understand that we have a sysem in place that can easily take care of this problem - but why not? The images in my mind while reading all of this are of the Revolutionary War where the citizens were so outraged over how they were treated by the British and objected so strongly (you know the rest), then the images of organized crime (i.e, Baby Face Nelson and the rest of them) that seem to have control over everything (can we say extortion?), including the Law until the "Law" did something about it and now this business of over-charging, kicking people out of their homes based on something the lender made up, etc.  Sounds too much of Saturday's Morning Westerns - where those who wore the black hats rule the town.   As an individual, I am reading as much on sub-prime and pradatory loans as I can and how the Law applies and don't apply as well as the coversations on this particular site - since there seems to be lack of oversight - I am the one who is keeping a close eye on my "debt collector" not the other way around.  That title in itself forbids certain activies that they can not enforce.  When I couldnot get any satisfaction form them, I complaint based on solid facts of what they were allowed to do with a copy of the settlement statement to my local representative with copies to Attorney General's office and the Commissioner plus a blind copy to the Judiciary Ctte on Oversight.  Everyone has someone they must answer up to.  And this is an election year? 

KNOWLEDGE is power   I look forward in web sites like this one to continue, folks to keep asking questions, keep reading legislation and what other States are doing, and keep raising your voices until someone steps in and do something about this problem - but be your own advocate when someone else fails or prefer not to do their job by organizing a group if one voice can not be heard, then perhaps more than one voice can be heard louder.  (Anyone seen Norma Rae?)

Until then, this too will be on TV as a movie of the week and in history books, some day.
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Maryland
It's me again - needed to drop a line for clarification.  When I mentioned "settlement statement" above, I was not referring to the Hud-1 statement but the Class Action Suit against Select Portfolio Servicing.  Anyone who wish to read the actual Legal Commandments issued to them; I offer the following web site - http://www.mass.gov/?pageID=ocaterminal&L=5&L0=Home&L1=Business&L2=Banking+Industry+Services&L3=Bhttp://www.ftc.gov/os/2003/11/070802selectportfoliomodiifiedstip.pdf;

and  http://www.ftc.gov/Fairbanks

They were also sued in West Virginia for one quarter of what Mass awarded its consumers,  the State of Nevada - I think, legal action in Texas as well as Ohio. 

If this many consumers are made at these people, then why are they still in business?    The same reason and common denominator they shared witht the British, the folks in black hats or Baby Face Nelson and his group.  They are organized and "we" are not.  We have those who make the law, but those who enforce it are not in the same group or those who defend it. We got to get our act together.

What can the homeowers do?    Ask for an invoice for the charges that are showing up on your bill.  Based on the FTC - under the Bureau of Consumer Protection, you have a right to any and all paperwork.  If the actual invoice is different than what you were billed for - sounds like wire fraud (FBI), if you don't have the invoice - sounds like FTC, if the accounting is not balancing - sounds like the US General Accounting Office.

All of the above is oversight and accountability and yes, our tax funds are paying people to do their jobs; but if they fall behind on their jobs - there is no reason why we can not write letters and point fingers (if we have the proper documents).  Everyone has someone that they must answer to.

The homeowners should think about forming local support groups; if you don't want to use your real names - fine, use your sign on name - what's important is what you can contribute towards making our laws stronger and holding he lendes and servers accountable.  whenever you point a finger at someone, there's three more pointing back at ourselves - we have the ability to make a difference.

I'm off my soapbox - one of my soaps is coming on.  Any groups in Maryland - sign me up and let me know where we are meeting.
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Moose,
How are you?  I have read many of your comments and it seems as though you have a great deal of knowledge and understanding of this whole Mortgage industry and how it works. Would you be kind enough to read my message entitled NOTES and provide some feedback? Thanks a million

Shunn1
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Corporate Fraud!

Protesters Take Stand Against Predatory Lending

 
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Moose
neveaeh wrote:

Moose,

Our case is in Fed Court in Chicago.  We were foreclosed on, but still living in our home even past the redemption period. We have an excellant attorney. We have RESPA and TILA violations in our suit and of course, the argument to prove ownership of the loan, invalid foreclosure, etc argument.

What happens to our suit since it is in Fed court and has been since last year?  Does this mean we can't sue now to get our house back?

Our attorney is out of town for two weeks and I really want to know what this means for us with the possible bailout...



This isn't legal advice, but I don't think the alleged current note holder can sell your note while litigation is underway. If nothing else, you might want to check the records in your local county clerk's office to see if there is a "lis pendens" on your property indicating that it is in litigation.

And again, I don't see any immediate effect of the currently proposed bailout on people currently facing mortgage servicing issues. It's a bailout for Wall Street.

Moose

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Both of the Democratic proposals also pushed for foreclosure prevention through loan modifications and use of the HOPE for Homeowners Program on the mortgages the government will buy in the bailout."  CNN 9/24/08 - Bailout Battle - Where Things Stand Now
 
This is NOT good news folks.  I've tried Hope Now.  It was totally hopeless.  After taking your name and other identifying info, they transfer you to a random, privately employed financial planner contracted to work for HOPE NOW.  Spent 2 hours on the phone with this guy detailing Litton's mortgage servicing fraud, and how I have no problem paying my usual fixed-rate monthly mortgage, but no way can pay the extra $900 plus dollars they were now demanding for their force-placed insurance, illegitimate late fees, corporate charges, etc.  At the end of the session, they advice you they'll be sending a letter to your servicer/lender with their recommendations with respect to modification.  I received my copy of it 2-weeks later.  Their recommendation?  Get a second job.  Sent, by the way, to my servicer.  No where did they address or acknowledge the fraudulantly increased monthly mortgage payment! 
Has anyone else had any experience with HOPE Now? 
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Moose
Hope Now is as much as the industry will accept being pushed into. In Hope Now, all the decision making power lies in the hands of the servicer and the trustee. The people playing intermediary are simply gathering information that the servicer hasn't been able to get. They have no fiduciary or legal responsibility to the borrower.

As I mentioned at the beginning of this, if the power to modify loans isn't taken away from the Treasury, when they acquire them they could do what Hope Now can't - reset them at will. Unlike the industry who counts the remaining principal as the alleged value of a loan no matter what they paid for it, the Treasury isn't a for-profit company and is already funded for $700B in planned losses. If they set the principal and interest to a reasonable amount, hundreds of thousands of loans that never would have been saved because of servicer/trustee gamesmanship as "B" describes could be and the losses would be reduced because those reset, paying loans would have greater value when they are to be sold.

The other thing that could be accomplished is to make those loans ASSUMABLE.  If anyone has been around a while you may remember the old VA assumable loans. The originating side of the industry hated them because the loan stayed with the home which meant no new loan was generated each time the home was sold. All it took was a down payment (Duh!) and in some cases, there wasn't even any qualifying.  Making this enormous pile of reset loans assumable would also free up new capital for other lending.

Just one Moose's opinion.



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