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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Nye Lavalle
As I have mentioned to many of you over the years, the first step in this fraud and fight is to determine "who owns the note?" Jack Wright will agree with me and any good and knowledble alwyer will agree [few, if that], but the one thing I have been telling you and anyone who would listen for over 15 years now [I;ve been in this fight since 1993] is that lies and frauds on the borrower side equals lies and frauds on the investor side.

If you collect money that is not owed to you, then you are overstating income, assets and revenue,,, cooking the books!

What I realized many years ago is that borrowers are only thought of as the low lifes of the earth. EMC called them Joe and Jane Smuck! They will spend millions [asl me or Jack Wright] to cover up their lies, frauds, deciet, crime nd perjury to keep things at status que.

However, the tact I took many years ago that some of you seem to attack, is to take stock in these companies, read their governance procedures and report to baord how they are not only in violation of those procedures, but cooking htier books. Long before Sarbanes Oxley and Enron and Fannie and Freddie, I was showing how off balance sheet accounting and securitization was defranding not only all of us, but the investing public. Anyone that doubts me only need read ALL of the exec summary of the Predbear report found of this site or doing a serach on the net for it.

So we have gained VERY little attention while these crooks have destroyed or attmpted to destroy many of us, some of us with intention to stop from getting the word out. However, ALL that I said years agon is now coming to roost. Lack of transprancy is the buzzword and I have shared some articles with you. Read this one now.. I gave you an Economist article earlier...

Moody's president sees unprecedented illiquidity

LONDON (Reuters) - The credit market is experiencing an unprecedented loss of confidence due to the lack of transparency over where exposures lie rather than underlying credit quality problems, Moody's Investors Service President Brian Clarkson said on Thursday.

"I've been in the marketplace for 20 years ... what we're experiencing is an extreme lack of confidence and lack of liquidity. I have never seen this before," Clarkson told Reuters in an interview. "A lot of it has to do with transparency: it's not clear who owns what."

There are also questions over valuations of illiquid securities, he said, although not necessarily from a credit standpoint. Some structured vehicles -- such as the Cheyne Finance fund run by British hedge fund Cheyne Capital Management -- have been forced to sell assets due to losses even though the securities they hold have not been downgraded.

"It's not that a lot of the things people are holding aren't money good, they are. If you hold them to maturity they will pay interest and principal on a timely basis."

Ratings agencies have come under fire for not being quick enough to react to the problems in the U.S. subprime mortgage market that have roiled equity and credit markets in July and August.

In recent months they have downgraded hundreds of securities as mortgage defaults have proved higher than expected. That has led to widespread falls in prices for asset-backed securities whether linked to subprime or not as investors have shunned risky structures.

The European Commission said in August it will review the voluntary code used by the agencies, and French President Nicolas Sarkozy said questions should be asked about the role of ratings agencies in the latest crisis.


Clarkson, who before being appointed as president early in August was responsible for overseeing global structured finance among other areas, said Moody's had also been criticized by some investors for acting too quickly.

"If you're a buy and hold investor, we acted way too quick. If you're holding that thing to maturity, you don't want a downgrade," he said. "If you're a mark-to-market investor, or in particular if you've shorted the market or shorted particular securities, we acted way too slow."

He said it was wrong to treat all subprime mortgage deals alike, with some issuers performing in line with expectations.

"You'll hear that subprime mortgages are a disaster, a meltdown, it's terrible. There will be significant losses, there's no doubt about that," Clarkson said. "(But) the way we view our role in the market post assigning the ratings is to make sure we're providing the market with as much information as possible on an ongoing basis. And the observation is that it's not the entire market."

Clarkson said that Moody's wanted to work with regulators to avoid being put in a position of having to provide a service that it was unable to do.

"A rating is an opinion. It's not a promise, not a guarantee. It's also not static," he said.

Calls to revamp the business model of the ratings agencies, for instance, by making investors rather than issuers pay for ratings may not help.

"Regardless of who pays, there's always a conflict," he said. For instance, if an investor pays for a rating, and that rating then has to be downgraded, there is potential for conflict there. "Any time there is money involved, there is potential for conflict."

He said that criticism suggesting that Moody's was involved in structuring securitizations was not accurate. "We make it a point not to be structuring transactions," Clarkson said.

"We make everything as transparent as we possibly can. Our ratings process is transparent. The ratings are not assigned by the analyst, they're assigned by committees. Our ratings record is out there for everyone to take a look at. Historically, the ratings have held up extremely well."

© Reuters 2007. All rights reserved.
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