Does Someone Know Something (Again)? Bank of America stock price plummeting

[Ares]

If this turns out to be prescient - that is, if it turns out that this is insider trading on material non-public information and Bank of America collapses - it is time for every American to cease working and go sit in Washington DC on the Mall - and refuse to leave until the FOMC, Treasury and our President resign, stand trial for public corruption and are punished in accordance with law.

http://market-ticker.org/akcs-www?get_gallerynr=2152

The market says that this firm has a "book value" of one third of the claimed value on it's balance sheet. If this is true then the bank is bankrupt at least six times over.

That is, it's alleged "Tier 1 Capital" has been exhausted not once, not twice, but six times.

Either the market is correct or it is wrong. The stock is either trading at 0.34 times book because the assets on the books are worth one third of the claimed amount (when offset against liabilities) or because the collective "wisdom" of the market is flat-out wrong.

If the former is true then every corporate officer has lied through their teeth serially and wantonly when signing their quarterly reports, and under Sarbanes-Oxley has committed a federal felony for which they must be imprisoned.

There is really no other way to see this, in point of fact. Either the firm has honestly reported its financial condition or it has not. If it has, then this "valuation" is ridiculous beyond words, and you'd be nuts not to buy the stock with both fists, since you stand to profit for the tune of three hundred percent.

But if the firm has lied, repeatedly and serially, then it is bankrupt six times over.

Our system of laws is supposed to prevent the latter from happening. Yet it has not. It did not with Bear Stearns, it did not with Lehman, and it has not with the myriad other public banks that went under over the last few years, including some for which we now have asset values.

Colonial Bank, for example, which when acquired from the smoking ashes was shown to have claimed values some forty percent higher than reality.

In fact it is rare that one can find an FDIC-seized institution or one in which an "assisted" transaction took place where asset values were not radically overstated.

Since the advent of Sarbanes-Oxley this is no longer a matter for civil litigation - it is a matter for felony criminal prosecution.

Our stock market is collapsing precisely because nobody believes the valuations reported by these institutions. There is zero credibility precisely because there have been no prosecutions under Sarbox from the latest debacle. Firm after firm has gone down with radically bogus asset valuations and in fact Kanjorski made such the law and regulation when he effectively forced FASB to permit "mark to make-believe" in the spring of 2009.

So now we're back to where we were in the spring of 2008. Bank of America has its stock price under attack for the simple reason that nobody believes the bank's asset valuations.

The market believes the bank is underwater to the tune of six times its reserves and is factually bankrupt.

Confidence in our markets and financial institutions cannot return until these FICTIONS are flushed out of the system. This means that financial institutions must prove their asset valuations and those who lie about them must be prosecuted - in each and every case. If this is not done, and done soon, firms will come under similar speculative attack one-by-one exactly as occurred in 2008, and this time there is neither political will or financial ability to rescue them.

That's what the stock price is telling you today folks and it is also why the early rally in the market has collapsed with a more than 2% move in the S&P 500 in the last two hours.

The question is this: Is the market right - or wrong, and is anyone in Washington DC and at The Fed listening?

Incidentally, on the premise the market is right if this continues without a clean explanation, Tickercon will go to "1" within days - if not hours, as if BAC blows it will be Tickercon "Boom", not "1".

http://market-ticker.org/akcs-www?post=192745

[JohnQPublic]

Gold is also reacting (shooting up). This may be it for BAC!

Sept./Oct. 2008, take two (with a different gold reaction this time).

[undgrd]

This could be the top of the second leg down. Hold on!

[Ares]

This could be the top of the second leg down. Hold on!

Bank of America the 2011 Lehman Brothers?

[JohnQPublic]

http://www.zerohedge.com/news/bank-america-cds-hits-escape-velocity

http://www.zerohedge.com/news/bofa-warns-upcoming-desperate-measures-authorities-will-result-another-2008-market-collapse

[JohnQPublic]

This must be really bad- they did not wait until market close this Friday!

FASTEN YOUR SEATBELTS FOLKS. ROLLER COASTER GOING DOWN!

[undgrd]

Lehman Brothers was relatively unknown to everyone but brokers and bankers. BAC is about as apple pie as you get in the public's view of the banking world.



Brokers and Bankers KNOW BAC is insolvent and react accordingly
Private investors start to notice as Brian Williams reports a down day for BAC
People like us comment
Average Joe starts to get "that feeling" in his stomach and takes a few extra dollars out of BAC


Multiply that last step by MILLIONS of depositors, and BAC's ability to write loans and move money go POOF

[Libertytree]

From personal inside knowledge, even people that work there don't keep their money with BoA. Quite telling IMO.

[k-os]

I've got a bad feeling about this.

[Celtic Rogue]

Me too... and I have my business and home account there! I think I am screwed. I have been meaning to go to another bank... but who? maybe a credit union.

[k-os]

Me too... and I have my business and home account there! I think I am screwed. I have been meaning to go to another bank... but who? maybe a credit union.

Definitely a credit union. You will feel the difference after just a few visits. They actually trust you at a credit union . . . with your own FRNs!

[mick silver]

all the banks i would say are in no better shape then Lehman Brothers was . they all have been mark up to look good . it all will be ok after they get some more bailout paper ...

[Cebu_4_2]

No need to read it, just sample and you'll get the idea.

The following is a compilation of short articles related to the vast fraud (and legal actions related to them) being perpetrated against homeowners Nationwide by the national mortgage lenders and their criminal servicers.. From BankClassActions.com and www.LegalForensicAuditors.com (http://www.legalforensicauditors.com/)
540-341-1481
Mortgage Fraud Articles

GMAC Mortgage, LLC (http://frauddigest.com/fraud.php?ident=4723)
Law Offices of David J. Stern (http://frauddigest.com/fraud.php?ident=4723)

Action Date: August 12, 2011
Location: FT. Lauderdale, FL

GMAC Mortgage, LLC filed counterclaims in a federal court lawsuit brought against GMAC by its former lawyers, The Law Offices of David J. Stern, P.A. (“Stern”). The case, No. 11-CV-61526, was filed in federal court in the Southern District of Florida, where Stern’s offices were located.

GMAC accuses Stern of gross legal malpractice, breach of contract, breach of fiduciary duty, violating Florida’s Deceptive and Unfair Trade Practice Act and Misrepresentation/Suppression. GMAC seeks unspecified compensatory and punitive damages.

GMAC alleges that Stern:

1. caused or permitted Stern employees to execute, witness and/or notarize assignments of mortgage that were back-dated;

2. caused or permitted Stern’s employees to witness and/or notarize assignments of mortgages, affidavits of indebtedness and/or other affidavits on a daily basis prior to and without actually witnessing execution of the document by the person whose signature was to be witnessed and/or notarized;

3. caused or permitted Stern’s employees to prepare and execute affidavits of indebtedness for submission to the foreclosure court that failed to follow appropriate professional practices and procedures;

4. caused or permitted Stern’s employees to sign the name of another person on various foreclosure-related documents without any indication of that fact on the documents;

5. charged GMAC substantial fees and costs for legal services that Stern knew or should have known fell below the minimum standard of professional care owed by Stern to GMAC; and

6. committed acts or omissions that have subjected GMAC to claims, losses and liabilities of third-parties.

Essentially, GMAC claims that Stern’s malpractice carrier should be held responsible for all of the allegedly fraudulent acts of Stern’s office manager, Cheryl Samons, and other Stern employees who signed mortgage assignments and affidavits to push through foreclosures at record-breaking speed.

On July 27, 2011, Stern filed its Answer to these GMAC claims including the following:

“ 9. GMACM’s claims are barred, in whole or in part, by the doctrine of unclean hands because of GMACM’s: breach of contract; failure to retain replacement counsel in a timely manner; signing inaccurate affidavits; affidavits that were not properly notarized; not confirming whether loan and mortgage documents were properly endorsed; assigned or in possession of the appropriate party; and other misconduct identified in the Consent Order entered on April 13, 2011 by Order of the Board of Governors of the Federal Reserve System and the FDIC, and because, to the extent DJSPA committed legal malpractice, which is expressly denied, any such malpractice was the result of GMACM’s own actions and/or instructions.”

Homeowners and investors are lost in this battle of the giants. Tens of thousands of Florida homeowners lost their foreclosure cases because of the fraudulent documents produced by GMAC.

These documents most certainly came from Stern, but they also came from GMAC’s own employees, including master-signer Jeffrey Stephan, and employees in many other major foreclosure mills used by GMAC. The Stern defense that “Everybody was doing it” is unfortunately true.

An important question for homeowners and investors is whether GMAC has instructed its new lawyers to advise the Courts and homeowners of these findings.

Malpractice insurance carriers throughout the country could not imagine a more ominous case.



Mortgage Fraud

BAC Home Loans Servicing, LP (http://frauddigest.com/fraud.php?ident=4722)
Bank of America (http://frauddigest.com/fraud.php?ident=4722)

Action Date: August 11, 2011
Location: Tallahassee, FL

On July 11, 2011, BAC Home Loans Servicing, LP, filed a Notice of Cancellation with the Florida Department of State stating it was no longer transacting business in Florida.

From July 11, 2011 to August 11, 2011, this company initiated hundreds of foreclosure actions throughout Florida, filing 76 Lis Pendens in Palm Beach County; 61 Lis Pendens in Hillsborough County; 35 Lis Pendens in Lee County; and 107 in Broward County.

It will come as a real surprise, no doubt, to the hundreds of people in Florida who have been sued for foreclosure by BAC Home Loans Servicing, LP, in the past 30 days that they are "no longer conducting business in Florida."


Mortgage Fraud

Bank of America (http://frauddigest.com/fraud.php?ident=4721)
JP Morgan Chase (http://frauddigest.com/fraud.php?ident=4721)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4721)
WaMu Trusts (http://frauddigest.com/fraud.php?ident=4721)
Washington Mutual (http://frauddigest.com/fraud.php?ident=4721)
WMABS Trusts (http://frauddigest.com/fraud.php?ident=4721)
WMALT Trusts (http://frauddigest.com/fraud.php?ident=4721)

Action Date: August 6, 2011
Location: Jacksonville, FL

An examination of over 5,000 Mortgage Assignments to Washington Mutual Trusts shows that these Trusts (WaMu, WMALT and WMABS) used Mortgage Assignments signed by employees of JP Morgan Chase to foreclose. The most prolific of the Chase signers, all from Jacksonville, Florida, include Elizabeth Boulton, Margaret Dalton, Barbara Hindman, Patricia Miner, Roderick Seda and Shelley Thieven. These Chase employees sign as MERS officers on behalf of at least 30 different mortgage companies to convey mortgages AND NOTES to Washington Mutual trusts that closed years earlier.

In the vast majority of these cases, Bank of America is the Trustee.

Because the original loan documents are missing, Bank of America allows Chase to make up new documents as needed to foreclose. The vast majority of these Assignments state that the Trusts acquired these mortgages in 2009 and 2010.

There are two separate frauds here:

1. not having the documents despite the promises to investors that the documents were obtained and safely held; and

2. fabricating the replacement documents to foreclose.

In almost every case, Bank of America is the Trustee.

Did the FDIC just not notice any of this? There are thousands of these specially-made Assignments signed by Chase employees for WaMu, WMALT and WMABS trusts used across the country.

When Bank of America did not use documents fabricated by Chase to foreclose, it used documents fabricated by LPS in Dakota County, MN.



Mortgage Fraud

Lender Processing Services (http://frauddigest.com/fraud.php?ident=4720)

Action Date: August 4, 2011
Location: Jacksonville, FL

Daniel Ruetenik
Associate Producer
60 Minutes/CBS News


Hi, Dan,

I approach the reairing this Sunday of the foreclosure fraud episode on 60 Minutes with mixed feelings.

Before the initial showing, I would have asked "How can we get judges, prosecutors and legislators to watch this?"

Now, I am asking, "How can we get judges, prosecutors and legislators to care about this?" Judges have watched the episode and have said "I don't care that the notary wrote her name upside-down." Others said, "I can't let a TV show into evidence."

I was floored by this. Why would so many people be so determined to trivialize these crimes by banks?

I was contacted by several thousand people after the show - many were losing their court cases to documents "signed" by Linda Green. Lender Processing Services refused to step forward and disclose to courts that these documents were fraudulent; the mortgage servicing companies continued to press as many foreclosures as possible using these documents or similarly forged and fraudulent documents.

By far the most disturbing development was the firing of the two Florida Assistant Attorney Generals, June Clarkson and Theresa Edwards, who were leading the investigation of LPS. One of the reasons was that they had been too aggressive with the lawyers representing LPS. Then one of the highest ranking members of the Attorney General's office joined LPS as a Senior VP of government affairs. Then the press began reporting
about campaign contributions made by LPS and LPS officers to the Florida Attorney General.

No matter how egregious and well-documented the wrongs, there are no consequences for the banks.

By far, my overwhelming feeling four months later is anger - mixed with renewed determination to speak the truth. I am very disturbed by the power of banks. Before I was somewhat aware that banks had gained tremendous power and influence. Now, I am aware almost every moment of every day that money controls our politics and banks control our money.

The most encouraging development has been the reaction of county recorders. I flew to North Carolina to meet Guilford County Recorder Jeff Thigpen. Jeff is not the sort of individual who watches TV and says, "Someone should do something about that." Jeff and his co-workers really went to work immediately and have been working ever since to expose the corruption of our land records nationwide. In Massachusetts, John O'Brien even commissioned a study and has spoken out about the massive problem caused by MERS and corrupt mortgage servicers. In Michigan, it was Curtis Hertel, Jr. who dared to speak the truth.

In Florida, almost nothing has changed. The state attorney and the clerk of the court here have NOT accepted my request to meet with them. The Florida Attorney General's office may be hard at work investigating my complaints, but if so they sure have not contacted me. Once June & Theresa were removed, all communication ceased.

Deutsche Bank and its lawyers have become much more aggressive in my own case, even adding my son as a defendant (though we were able to get that dismissed).

If the extent of this fraud is ever exposed and addressed, it will be because people like these country recorders and bulldog legislators like Congressman Elijah Cummings of Maryland were not intimidated by the banks and their service companies.

My regret is that I may have held out false hope to many desperate people.

If journalists had not told this story - and the truth about crimes by banks - then the banks' version of history would prevail: "Millions of Americans woke up one morning and decided to be irresponsible deadbeats. More, faster foreclosures will save the economy."

I admire the hell out of you and 60 Minutes for running this story. I sure did expect more courage from prosecutors and legislators - but I am finally, at age 62, cured of my naivete.

I look forward to the story about the banks being brought to justice.


Best Regards,

Lynn Szymoniak




Mortgage Fraud

Bank of America (http://frauddigest.com/fraud.php?ident=4719)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4719)

Action Date: July 26, 2011
Location: Hillsborough County, FL

From April 1, 2011 to July 26, 2011, Bank of America filed 189 Lis Pendens in the official records of Hillsborough County. The filing of a Lis Pendens usually signals the start of a foreclosure action. In the same period in 2010, BOA filed 702.

In this same time period in 2011 (and 2010):

Aurora Loan filed 43 (90 in same period in 2010);

BAC Home Loan Servicing filed 160 (515 in same period in 2010);

Bank of New York filed 76 (307 in same period in 2010);

Chase Home Finance filed 11 (168 in same period in 2010);

CitiBank filed 32 (112 in same period in 2010);

CitiMortgage filed 127 (230 in same period in 2010);

Deutsche Bank filed 149 (319 in same period in 2010);

GMAC filed 55 (88 in same period in 2010);

HSBC Bank filed 58 (107 in same period in 2010);

JP Morgan Chase filed 57 (247 in same period in 2010);

One West filed 34 (46 in same period 2010);

SunTrust filed 78 (203 in same period in 2010);

Wachovia filed 98 (215 in same period 2010);

Wells Fargo filed 431 (1,057) in same period 2010.

From these 15 lenders and servicers, the total new filings in just one county, Hillsborough, in Florida, since April 1, 2011 was 1,592, while the total for this same time period last year was 4,406.

Bank foreclosure activity was down in part because Fannie, Freddie and other big lenders took their files away from the foreclosure mills as criticism grew regarding the authenticity of documents and claims made by the mills.

Foreclosure activity was also down in response to increased scrutiny by regulators, legislators and by the press.

Two major Florida-based document production companies, Lender Processing Services and Nationwide Title Clearing, were reported to have received subpoenas from state attorneys general regarding the documents they produced for banks and servicers.

Although investigations have been announced for the past year, no findings have been reported or released.



Mortgage Fraud

AFFIDAVITS OF LOST ASSIGNMENTS (http://frauddigest.com/fraud.php?ident=4718)
Christina Carter (http://frauddigest.com/fraud.php?ident=4718)
Linda Green (http://frauddigest.com/fraud.php?ident=4718)
John Kennerty (http://frauddigest.com/fraud.php?ident=4718)

Action Date: July 6, 2011
Location: West Palm Beach, FL

Is it perjury to submit a sworn affidavit to a Court that a Mortgage Assignment has been lost when there is absolutely no evidence that such Assignment ever even existed?

What if the affiant swears to know WHEN the non-existent Assignment was lost:

"Affiant's investigation has revealed that the original unrecorded assignment of mortgage is lost or missing through no fault of the Assignee, although it appears Assignee was in possession of the instrument at the time it was lost or became missing."

This exact statement - and many similar statements - appear in thousands of Affidavits of Lost Assignments - signed by Linda Green, John Kennerty and Christina Carter - employees of Lender Processing Services, America's Servicing Company and Ocwen Loan Servicing.

These Affidavits are used in foreclosures to explain why mortgage-backed trusts should be allowed to foreclose even though the original lender never assigned the mortgages to the trusts.

Mortgage servicers continue to file these Lost Assignment Affidavits in 2011 - despite the many investigations and regulatory Consent Decrees.

How can you swear something was lost when it never existed? How can you swear as to the no-fault of a bank that is not even your employer?

Only robo-signers and mortgage servicers know for sure.




False Statements

Brian Burnett (http://frauddigest.com/fraud.php?ident=4717)
Freddie Mac (http://frauddigest.com/fraud.php?ident=4717)
IndyMac Bank, FSB (http://frauddigest.com/fraud.php?ident=4717)
MERS (http://frauddigest.com/fraud.php?ident=4717)
OneWest Bank, FSB (http://frauddigest.com/fraud.php?ident=4717)

Action Date: June 27, 2011
Location: San Diego, CA

California Bankruptcy Judge Laura Stuart Taylor has joined the ranks of judges who will not tolerate fraudulent documents produced by banks to foreclose. Judge Taylor entered an Order To Show Cause why OneWest Bank, FSB, should not incur "a significant coercive sanction intended to deter any future tender of misleading evidence to any court of this district." Judge Taylor ordered OneWest to appear before her on July 29, 2011, to show cause as to why it should not be subject to compensatory and/or coercive sanctions, in the case In re Jessie M. Arizmendi, Bk. No. 09-19263-PB13, U.S. Bankruptcy Court, Southern District of California. The case involves a motion for relief from stay filed by OneWest supported with a declaration of Brian Burnett, who declared under penalty of perjury that OneWest was the real party in interest in connection with the Motion because OneWest was the current beneficiary under the terms of a promissory note and Deed of Trust.

According to the Burnett declaration, OneWest received its interest in the Trust Deed pursuant to an Assignment from MERS. The assignment of the Trust Deed and the Note showed the transfer from MERS as nominee for the original lender directly to OneWest in 2010.

At trial, however, OneWest's witness, Charles Boyle, testified that the beneficiary of the loan was actually Freddie Mac. Based on this conflict, the Court required post-trial briefings.

According to the Court, "OneWest, in its post-trial brief, provided a standing argument based on a new version of the Note, which attached an allonge dated July 24, 2007 evidencing a transfer from Original Lender to IndyMac Bank, FSB and bore an endorsement in blank from IndyMac Bank, FSB. This was new information not presented in the OneWest Declaration and this note was not identical to the note authenticated by the OneWest Declaration and attached to the OneWest Proof of Claim.

This Court is concerned, thus, that OneWest provided false or misleading evidence to the Court and that OneWest did so willfully, maliciously, in bad faith, and/or for an inappropriate purpose."

According to research by Fraud Digest, Brian Burnett has used many different job titles when signing mortgage-related documents for OneWest, often using different titles on the same day, including:

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Acoustic Home Loans;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Aegis Wholesale Corporation;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for American Brokers Conduit;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Beach First National Bank;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Credit Suisse Financial Corp.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for CTX Mortgage Company, LLC;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for DHI Mortgage Company, Ltd.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Express Capital Lending;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Finasure Home Loans, LLC;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for First Magnus Financial Corporation;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for First Meridian Mortgage;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Flick Mortgage Investors, Inc.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Home Loan Center, Inc. d/b/a LendingTree Loans;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Impac Funding Corp., d/b/a Impac Lending Group;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for IndyMac Bank, FSB;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for LoanCity;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for MortgageIt, Inc.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for NetBank, a Federal Savings Bank;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for New American Funding, a California Corporation;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Opteum Financial Services, LLC;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for OneWest Bank, FSB;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Quicken Loans, Inc.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Sloan Mortgage Group, Inc.;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for Taylor, Bean & Whitaker;

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for TM Capital, Inc.

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for d/b/a Fedfirst Mortgage Corporation; and

- Assistant Vice President, Mortgage Electronic Registration Systems, Inc., as Nominee for UBS AG.

July 29, 2011, may be the day that Brian Burnett and OneWest are held accountable for the thousands of mortgage assignments - with false statements regarding the history and ownership of mortgages - presented to courts to foreclose.


False Statements

Bank of America (http://frauddigest.com/fraud.php?ident=4716)
Bank of New York Mellon (http://frauddigest.com/fraud.php?ident=4716)
CoreLogic (http://frauddigest.com/fraud.php?ident=4716)
CWABS (http://frauddigest.com/fraud.php?ident=4716)
CWALT (http://frauddigest.com/fraud.php?ident=4716)
MERS (http://frauddigest.com/fraud.php?ident=4716)

[Cebu_4_2]

Action Date: June 26, 2011
Location: Simi Valley, CA

Who are Bank of America's newest robo-signers? For several years, BOA turned to its subsidiary, BAC Home Loans Servicing, in Collin County, Texas, whenever mortgage assignments were needed in foreclosures. This office, formerly Countrywide Home Loans Servicing, produced hundreds of thousands of assignments, including most all of the assignments to Countrywide CWABS and CWALT trusts. In recent months, however, BOA has turned to its office in Ventura County, California, as the Collin County, TX, signers have become too well known. These assignments are made primarily for CWALT and CWABS trusts that closed in 2005, 2006 and 2007.

These assignments claim to assign both the mortgages and the notes to the trusts.

On each of these assignments, MERS is stated to be the HOLDER of the mortgage.

Who are the newest signers - who use MERS titles to assign mortgages TO BAC while actually working FOR BAC - signing as if they were MERS officers for dozens of different companies? The names appearing most often include:

Ricki Aguilar
Malik Basurto
Youda Crain
Diana DeAvila
Edward Gallegos
Christopher Herrara
Bud Kamyabi
Tina LeRaybaud
Jane Martorana
Martha Munoz
Srbui Muradyan
Debbie Nieblas
Yomari Quintanilla
Luis Roldan
Miguel Romero
Cynthia Santos
Swarupa Slee

These individuals, in 2011, have signed as MERS officers for the following mortgage companies and banks, including many that no longer existed in 2011:

Aegis Wholesale Corporation
American Brokers Conduit
America's Wholesale Lender
Amnet Mortgage
Ampro Mortgage
Countrywide Bank, FSB
Decision One Mortgage Company
First Choice Funding, Inc.
First Interstate Financial Corp.
First National Bank of Arizona
Market Street Mortgage Corp.
M/I Financial Corp.
Millenia Funding Corporation
MortgageIt
One Mortgage Company, LLC
Pinnacle Direct Funding Corp.
Pulte Mortgage
Quicken Loans
Universal American Mortgage Company
Service Mortgage Underwriters, Inc.
Wilmington Finance, Inc.

CoreLogic in Chapin, South Carolina, is the keeper of these documents.

Bank of New York Mellon is the trustee for most of the CWABS and CWALT trusts that use these BAC documents.


Mortgage Fraud

Call for Experiences (http://frauddigest.com/fraud.php?ident=4715)
Deposing Employees of Document Mills (http://frauddigest.com/fraud.php?ident=4715)

Action Date: June 18, 2011
Location: West Palm Beach, FL

Linda Green's name may appear on two million mortgage assignments, yet she has never been deposed. While there are a few depositions of robo-signers from document mills, in many cases, the document mills seek AND RECEIVE protective orders - arguing that such discovery is burdensome and meant only to harass. If you are a foreclosure defense attorney or a pro se homeowner fighting foreclosure, please send your experiences with this issue for an investigative report on Fraud Digest to szymoniak@mac.com.


False Statements

Docx (http://frauddigest.com/fraud.php?ident=4713)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4713)

Action Date: June 16, 2011
Location: West Palm Beach, FL

On June 15, 2011, Michigan Attorney General Bill Schuette announced that his office served Lender Processing Services and Fidelity National Financial, Inc. with investigative subpoenas as part of a criminal investigation into fraudulent documents used in foreclosures. Schuette's office is seeking mortgage documents with the signature of "Linda Green." This was the name signed by at least a dozen employees in the Docx office of Lender Processing Services in Alpharetta, GA. The announcement came just two days after LPS announced that former Deputy Florida Attorney General Joe Jacquot had left the Florida Attorney General's office and joined LPS as a Senior Vice President of Government Affairs.


False Statements

Lender Processing Services (http://frauddigest.com/fraud.php?ident=4714)
Maiden Lane ABS 2008-1 (http://frauddigest.com/fraud.php?ident=4714)

Action Date: June 16, 2011
Location: New York, NY

Who Else Relied on Mortgage Assignments From Lender Processing Services to Foreclose?

In the past few weeks, Fraud Digest has reported on NovaStar, Bear Stearns and WaMu Trusts. These trusts almost always do not have the critical loan documents needed to foreclose so they turned to Lender Processing Services to manufacture mortgage assignments for them.

Like these trusts, Maiden Lane Asset-Backed Securities Trust 2008-1 ("Maiden Lane") most often uses Mortgage Assignments from LPS to foreclose.

Maiden Lane is "a special purpose vehicle consolidated by the Federal Reserve Bank of New York." Maiden Lane was put together by some of the best and the brightest in banking - but when it came to seeing that the mortgage files contained the critical documents, Maiden Lane was no better than Countrywide or WaMu or Long Beach.

And to facilitate foreclosures, Maiden Lane uses Mortgage Assignments - that also purport to assign the NOTE - from Lender Processing Services. These Assignments were most often made in 2009 - and filed in 2009 and 2010.

Here is a partial list of Mortgage Assignments to Maiden Lane ABS Trust 2008-1. Note in particular the number of MERS titles claimed by LPS employees Greg Allen and Liquenda Allotey.

From Hillsborough County, Florida Official Records:

Instrument#: 2010265459
Assignor: MERS as nominee for Bear Stearns Residential Mortgage Corp., by Greg Allen, VP
Date of Assignment: 7-20-2009

Instrument #: 2010072578
Assignor: MERS as nominee for Solstice Capital Group, Inc., by Liquenda Allotey, VP
Date of Assignment: 7-20-2009

Instrument #: 2009383278
Assignor: MERS as nominee for Bravo Credit, by Greg Allen, VP
Date of Assignment: 11-2-2009

Instrument #: 2009316873
Assignor: MERS as nominee for GreenPoint Mortgage Funding, Inc., by Christine Allen, VP
Date of Assignment: 9-14-2009

Instrument #: 2009314046
Assignor: MERS as nominee for Bayrock Mortgage Corp. by Liquenda Allotey, VP and Greg Allen, VP
Date of Assignment: 9-16-2009

Instrument #: 2009043801
Assignor: MERS as nominee for GreenPoint Mortgage Funding by Greg Allen, VP and John Cody, VP
Date of Assignment: 1-13-2009

Instrument #: 2009017120
Assignor: MERS as nominee for Bravo Credit by Christine Anderson, VP and Greg Allen, VP
Date of Assignment: 12-9-2008

From Lee County, Florida Official Records:

Instrument #: 2009000111365
Assignor: MERS, by Liquenda Allotey, VP
Date of Assignment: 4-20-2009

Instrument #: 2009000033548
Assignor: MERS as nominee for Amerimortgage Bankers, LLC by Greg Allen, VP
Date of Assignment: 1-12-2009

From Palm Beach County, Florida Official Records:

Instrument #: 20080419438
Assignor: MERS as nominee for First Guaranty Financial Corp., d/b/a Phoenix Funding by Liquenda Allotey, VP and Mathew Casey, VP
Date of Assignment: 10-15-2008

Instrument #: 20080435965
Assignor: MERS as nominee for Geneva Mortgage Corp. by Liquenda Allotey, Assistant Secretary and Christine Anderson, VP
Date of Assignment: 11-11-2008

Instrument #: 20090055586
Assignor: MERS as nominee for American Home Mortgage Acceptance, Inc. by Liquenda Allotey, VP and Greg Allen, VP
Date of Assignment: 1-20-2009

Instrument #: 20090076228
Assignor: MERS as nominee for AMPRO Mortgage by Liquenda Allotey, VP and Greg Allen, VP
Date of Assignment: 2-3-2009

Instrument #: 20090096176
Assignor: MERS as nominee for Equifirst Corp. by Liquenda Allotey, VP and Greg Allen, VP
Date of Assignment: 2-24-2009

From Martin County, Florida Official Records:

Instrument #2132924
Assignor: MERS as nominee for GE MoneyBank by Greg Allen, VP
Date of Assignment: 2-4-2009

From Broward County, Florida Official Records:

Instrument #108479192
Assignor: MERS as nominee for Bravo Credit by Greg Allen, VP
Date of Assignment: 2-6-2009

Instrument #108878042
Assignor: MERS as nominee for Hometown Mortgage Services, Inc. by Greg Allen, VP
and Liquenda Allotey, VP
Date of Assignment: 9-9-2009

Instrument # 108819366
Assignor: MERS as nominee for Home Loan Center, Inc. d/b/a Lendingtree Loans by Greg Allen, VP and Liquenda Allotey, VP
Date of Assignment: 8-24-2009











False Statements

American Home Mortgage Servicing (http://frauddigest.com/fraud.php?ident=4712)
DocX, LLC (http://frauddigest.com/fraud.php?ident=4712)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4712)
Sand Canyon Corporation (http://frauddigest.com/fraud.php?ident=4712)
Wells Fargo Bank, N.A. (http://frauddigest.com/fraud.php?ident=4712)

Action Date: June 12, 2011
Location: Phoenix, AZ

On June 10, 2011, the U.S. Bankruptcy Appellate Panel of the Ninth Circuit issued an important and lengthy analysis of standing and real-party-in-interest issues in a foreclosure case in Veal v. American Home Mortgage Servicing, BAP No. AZ-10-1055-MkKiJu.

GSF Mortgage Corporation was the original lender in this case. Wells Fargo Bank, as Trustee for Option One Mortgage Loan Trust 2006-3, and its servicer, American Home Mortgage Servicing, Inc., sought to set aside the automatic bankruptcy stay in order to foreclose on the Veals. The note was not endorsed to Wells Fargo or to the trust. As part of their efforts to establish standing, and real-party-in-interest status, Wells Fargo and American Home Mortgage Servicing, the servicer for the Trust, filed a mortgage assignment.

The Assignment was prepared by Docx, LLC in Alpharetta, GA, the document mill made famous by Fraud Digest, then by 60 Minutes, Reuters, The Washington Post, the New York Times, Huffington Post, Firedoglake, Naked Capitalism, Foreclosure Hamlet, 4closure Fraud, Stop Foreclosure Fraud, the Wall Street Journal, and many others. While Docx is now closed, its documents live on in courts and recorders offices across the country.

The Veal Assignment was signed by Tywanna Thomas and Cheryl Thomas who claimed to be officers of Sand Canyon Corporation formerly known as Option One Mortgage. From deposition testimony of Cheryl Thomas, it is known that both Cheryl and Tywanna Thomas were actually employees of Lender Processing Services, the company that owned Docx. There are many different versions of the Tywanna Thomas signature because, as we now know, the employees in Alpharetta forged each other's names on witnessed and notarized documents.

The Assignment was signed (by someone) on November 10, 2009, but a line on the Assignment right underneath the legal description of the property states:
"Assignment Effective Date 10/13/2009."

The closing date of the trust was October 27, 2006, almost three years prior to the Assignment effective date. Investors were told the trust would obtain actual Assignments to the Trust of the mortgages pooled in that trust by the closing date.

Dale Sugimoto, the president of Sand Canyon, said in a sworn affidavit on March 18, 2009, filed in the Ron Wilson bankruptcy case in the Eastern District of Louisiana, Case No. 10-51328, Document 52-3, that Sand Canyon does not own any residential mortgages and has no servicing rights.

To summarize:

1. Cheryl Thomas and Tywanna Thomas were not officers of Sand Canyon, as represented on the Assignment. Someone other than Tywanna Thomas and Cheryl Thomas often forged their names.

2. The Veal loan was not transferred to the Option One trust effective October 13, 2009, as represented on the Assignment.

3. Sand Canyon did not own the Veal mortgage and, therefore, had no authority to assign the mortgage to the Option One Trust. The Latin phrase - Nemo dat quod non habit - best covers this situation. Translation: one cannot give what one does not have.

Investors in this Option One trust, the Bankruptcy Judge in the Veal case, bankruptcy trustees with similar documents, homeowners and their lawyers, the SEC, and the Justice Department must all demand answers (and reparations) from the Trustee, the document custodian, the servicer and Lender Processing Servicing.




False Statements

Fremont Investment & Loan (http://frauddigest.com/fraud.php?ident=4711)
Fremont Reorganizing Corp. (http://frauddigest.com/fraud.php?ident=4711)
Goldman Sachs (http://frauddigest.com/fraud.php?ident=4711)
Litton Loan Servicing (http://frauddigest.com/fraud.php?ident=4711)
MERS (http://frauddigest.com/fraud.php?ident=4711)
Ocwen Loan Servicing (http://frauddigest.com/fraud.php?ident=4711)
Signature Group Holdings (http://frauddigest.com/fraud.php?ident=4711)

Action Date: June 10, 2011
Location: West Palm Beach, FL

WHY IS FREMONT INVESTMENT & LOAN COMPANY STILL CONDUCTING BUSINESS IN FLORIDA?

In 2007, Fremont General Corporation was one of the largest lenders and servicers of subprime mortgages.

On June 18, 2008, Fremont filed for Chapter 11 bankruptcy protection. Signature Group Holdings, a private investment firm, reorganized and renamed the company, changing its name on July 30, 2008, to Fremont Reorganizing Corporation.

On July 9, 2010, Signature Group Holdings, Inc. as successor in interest to Fremont Reorganizing Corporation filed a Withdrawal of Authority to Transact Business or Conduct Affairs in Florida, stating: “This corporation is no longer transacting business or conducting affairs within the State of Florida.”

Yet, through the cloak of MERS, Fremont Investment & Loan Company continues to do business in Florida. Thousands of mortgage assignments were filed in Florida counties after the Fremont name change and after the Fremont Reorganizing Corporation “withdrew” from Florida.

Very often, these assignments were signed by employees of Ocwen Loan Servicing. Employees of Litton Loan Services also signed many assignments in the last half of 2010 and the first half of 2011 as “Vice President, Mortgage Electronic Registration Systems, as Nominee for Fremont Investment & Loan.” Litton assignments made in 2010 and 2011 were used especially by GSAMP Trusts and by Fremont Home Loan Trusts that closed in 2006 and 2007.

These two mortgage servicers allowed Fremont Investment & Loan to continue to assign mortgages for use in foreclosures long after Fremont ceased to exist. Goldman Sachs announced on June 5, 2011, that it agreed to sell Litton to Ocwen Financial Corporation.



False Statements

Goldman Sachs (http://frauddigest.com/fraud.php?ident=4710)
Litton Loan Services (http://frauddigest.com/fraud.php?ident=4710)

[Cebu_4_2]

Action Date: June 6, 2011
Location: New York, NY

Goldman Sachs is especially fortunate to own its own mortgage servicing company, Litton Loan Servicing, in Houston, Texas.

Litton Loan Servicing makes documents for mortgage-backed trusts when the originals can't be found.

Litton's robo-signers, Marti Noriega, Denise Bailey and Debra Lyman, have been especially busy for the last 4 years making mortgage assignments for GSAMP Trusts - Goldman Sachs Alternative Mortgage Products.

An examination of all of the mortgage assignments to GSAMP Trusts filed from January 1, 2008 to June 6, 2011 in three Florida counties (Hillsborough, Lee and St. Lucie) shows that of the 583 total GSAMP mortgage assignments, all except one, were signed and notarized several years after the closing dates of the GSAMP trusts. Many of these assignments included a statement attempting to make the assignment retroactive by two or more years. Almost every one also contained a statement that both the mortgage and the note were being assigned to the trust.

Through the magic of the MERS Certifying Officer cloak, Noriega, Bailey and Lyman, Litton employees, have signed as officers for all of the mortgage companies listed below to transfer mortgages and notes (years past the trust deadline dates) to GSAMP trusts:

Accredited Home Lenders, Inc.
Aegis Wholesale Corporation
American Mortgage Express Financial d/b/a Millenium Funding Group
Available Mortgage Funding, LLC
Bayrock Mortgage Company
E-Loan, Inc.
Encore Credit Corp., d/b/a ECC Credit Corporation of Florida
First Bank d/b/a First Bank Mortgage
First United Mortgage Corporation
FMF Capital, LLC
Fremont Investment & Loan
Global Mortgage Group, Inc.
Homeland Capital Group, LLC
Home Loan Corporation d/b/a Expanded Mortgage
Loan City
Mortgage Lenders Network, US
New Century Mortgage Corporation
NLC Financial Services, Inc.
Novastar Mortgage, Inc.
Oak Street Mortgage, LLC
Opteum Financial Services, LLC
Ownit Mortgage Solutions, Inc.
Quotemearate.com, Inc.
Senderra Funding, LLC
SouthStar Funding, LLC
Southtrust Mortgage Corp. d/b/a Equibanc Mortgage
Wilmington Finance, Inc.
WMC Mortgage Corporation

Who else provided assignments of notes and mortgages to GSAMP Trusts? Those now famous “surrogate signers” - Linda Green and Tywanna Thomas - from DocX/LPS in Alpharetta, Georgia.

For many foreclosures by GSAMP Trusts, the documents also came from Bank of America’s servicing unit, BAC Home Loans Servicing in Collin County, Texas, signed by Micall Bachman, Mark Bishop, Carrie Ehinger, Serena Harmon and Lancia Herzog.

Scott Anderson, the man-of-many-signatures and many MERS titles, from Ocwen Loan Servicing in West Palm Beach, Florida, also regularly provided GSAMP Trusts with mortgage assignments. Anderson time-traveled as his documents often state that the assignments, signed in 2009 and 2010, were effective in 2005 and 2006.

The prolific signers at America’s Servicing Company in Ft. Mill, South Carolina, including Natasha Clark, Nikki Cureton and John Kennerty also helped the GSAMP Trusts.

Which GSAMP Trusts needed documents from the “servicers” (a really great name for these companies)?

GSAMP “AHL” Series
Series 2004-AHL; Trustee: Deutsche Bank
Series 2005-AHL; Trustee: Deutsche Bank
Series 2005-AHL2; Trustee: BOA

GSAMP “FM” Series
Series 2006-FM1; Trustee: Deutsche Bank
Series 2006-FM2; Trustee: Deutsche Bank
Series 2006-FM3; Trustee: Deutsche Bank
Series 2007-FM2; Trustee: Deutsche Bank

GSAMP “HE” Series
Series 2002-HE; Trustee: Deutsche Bank
Series 2003-HE2; Trustee: Wells Fargo
Series 2004-HE1; Trustee: Deutsche Bank
Series 2005-HE2; Trustee: Deutsche Bank
Series 2005-HE3; Trustee: Deutsche Bank
Series 2005-HE4; Trustee: Deutsche Bank
Series 2005-HE5; Trustee: Deutsche Bank
Series 2006-HE1; Trustee: Deutsche Bank
Series 2006-HE2; Trustee: U.S. Bank
Series 2006-HE3; Trustee: BOA
Series 2006-HE4; Trustee: BOA
Series 2006-HE5; Trustee: BOA
Series 2006-HE6; Trustee: U.S. Bank
Series 2006-HE7; Trustee: BOA
Series 2006-HE8; Trustee: BOA
Series 2007-HE1; Trustee:
Series 2007-HE2; Trustee: BOA

GSAMP “HSBC” Series
Series 2007-HSBC1; Trustee: Deutsche Bank

GSAMP “NC” Series
Series 2002-NC1; Trustee: Deutsche Bank
Series 2005-NC1; Trustee: Deutsche Bank
Series 2006-NC1; Trustee: U.S. Bank
Series 2006-NC2; Trustee: Deutsche Bank
Series 2007-NC1; Trustee: BOA

GSAMP “OPT” Series
Series 2004-OPT

GSAMP “S” Series
Series 2006-S1; Trustee: Deutsche Bank
Series 2006-S2; Trustee: Deutsche Bank
Series 2006-S4; Trustee: Deutsche Bank
Series 2006-S6; Trustee: Deutsche Bank

GSAMP “SEA” Series
Series 2006-SEA1; Trustee: Deutsche Bank

GSAMP “WMC” Series
Series 2005-WMC1; Trustee: Deutsche Bank
Series 2005-WMC2; Trustee: Deutsche Bank
Series 2005-WMC3; Trustee: Deutsche Bank



False Statements

Bear Stearns (http://frauddigest.com/fraud.php?ident=4708)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4708)

Action Date: June 3, 2011
Location: New York, NY

On April 13, 2011, the FDIC entered a Consent Order against Lender Processing Services and 10 banks and the Mortgage Electronic Registration Systems, Inc. Under the terms of that Order, LPS was to have chosen an independent consultant, acceptable to the FDIC, to begin the review of the mortgage documents produced by LPS, particularly, the Assignments to mortgage-backed trusts, by June 2, 2011.

After 2008 - that is, after the purchase of Bear Stearns by JP Morgan Chase - Bear Stearns Trusts in particular relied almost exclusively on Mortgage Assignments produced by LPS in foreclosures. LPS employees signed as officers of Mortgage Electronic Registration Systems, Inc. as Nominees for all of the following mortgage companies and banks in order to provide "proof" of ownership of mortgages by Bear Stearns Trusts:

Academy Mortgage Corporation
Acoustic Home Loans, Inc.
Act Lending Corp. d/b/a Act Mortgage Capital
Aegis Lending Corporation
Allied Mortgage Group, Inc.
American Mortgage Company, LLC
American Mortgage Express Financial d/b/a Millenium Funding Group
Bankfirst
Bayrock Mortgage Corporation
Bear Stearns Residential Mortgage Corporation
Bravo Credit Corporation
BSM Financial, LP d/b/a Brokersource
CBSK Financial Group, Inc.
Central Pacific Mortgage
Colorado Federal Savings Bank
CTX Mortgage Company, LLC
EMC Mortgage Corporation
Encore Credit Corporation
Entrust Mortgage, Inc.
Excel Mortgage Network
Fieldstone Mortgage Company
1st American Mortgage Services, Inc.
1st Mariner Bank
First Magnus Financial Corporation
First NLC Financial Services, LLC
First Residential Mortgage Services Corporation
First Security Mortgage Services, Inc.
Flick Mortgage Investors, Inc.
4UDirect, Inc. d/b/a Nation’s Home Lending Center
Fremont Investment & Loan
Geneva Mortgage Corporation
Greenpoint Mortgage Funding, Inc.
Harbourton Mortgage Investment Corporation
Homebridge Mortgage Bankers Corporation
Homequest Capital Funding
HSBC Mortgage Corporation
Irwin Mortgage Corporation
JLM Direct Funding, Ltd.
Lakeland Regional Mortgage Corporation
Lending First Mortgage
Market Street Mortgage Corporation
Millenium Bank, N.A.
Molton Allen & Williams Mortgage Co., LLC
Mortgage Center of Smith & Associates, LLC
Mortgage Lenders Network USA, Inc.
Mortgage Loan Specialists, Inc.
NBA Mortgage Group, a division of National Bank of Arkansas
No Red Tape Home Loan, a division of Metrociti Mortgage, LLC
One Source Mortgage, LLC
People’s Choice Home Loan
Pinnacle Financial Corporation
Platinum Capital Group
Pointbank
Pulte Mortgage, LLC
Quick Loan Funding, Inc.
Resmae Mortgage Corporation
Sebring Capital Partners
Security Atlantic Mortgage Company, Inc.
Shasta Financial Services
Southstar Funding, LLC
Stonecreek Funding Corporation
Sunbelt Lending Services
Sunshine Mortgage Corporation
Unimortgage, LLC
United Mortgage Corporation
United Pacific Mortgage
Universal American Mortgage Co., LLC
Unlimited Loan Resources

The dates that the Bear Stearns Trusts acquired these mortgages were wrongly stated on almost all of the LPS Assignments. Bank of America, Bank of New York Mellon, Citibank and Wells Fargo are all trustees for various Bear Stearns Trusts.


Bank Fraud

Ally Financial, Inc. (http://frauddigest.com/fraud.php?ident=4707)
Bank of America Corp. (http://frauddigest.com/fraud.php?ident=4707)
Citigroup, Inc. (http://frauddigest.com/fraud.php?ident=4707)
Docx, LLC (http://frauddigest.com/fraud.php?ident=4707)
HSBC North American Holdings (http://frauddigest.com/fraud.php?ident=4707)
JP Morgan Chase (http://frauddigest.com/fraud.php?ident=4707)
Lender Processing Services (http://frauddigest.com/fraud.php?ident=4707)
MERSCorp, Inc. (http://frauddigest.com/fraud.php?ident=4707)
MetLife (http://frauddigest.com/fraud.php?ident=4707)
PNC Financial Services (http://frauddigest.com/fraud.php?ident=4707)
SunTrust Banks (http://frauddigest.com/fraud.php?ident=4707)
U.S. Bancorp (http://frauddigest.com/fraud.php?ident=4707)
Wells Fargo (http://frauddigest.com/fraud.php?ident=4707)

Action Date: April 14, 2011
Location: Washington, DC

The Federal Reserve Board on Wednesday, April 13, 2011, announced formal enforcement actions requiring 10 banking organizations to address a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing. According to the press release from the Federal Reserve, these deficiencies represent significant and pervasive compliance failures and unsafe and unsound practices at these institutions.

The Board stated that it is taking these actions to ensure that firms under its jurisdiction promptly initiate steps to establish mortgage loan servicing and foreclosure processes that treat customers fairly, are fully compliant with all applicable law, and are safe and sound.

The 10 banking organizations are: Bank of America Corporation; Citigroup Inc.; Ally Financial Inc.; HSBC North America Holdings, Inc.; JPMorgan Chase & Co.; MetLife, Inc.; The PNC Financial Services Group, Inc.; SunTrust Banks, Inc.; U.S. Bancorp; and Wells Fargo & Company. Collectively, these organizations represent 65 percent of the servicing industry, or nearly $6.8 trillion in mortgage balances. All 10 actions require the parent holding companies to improve holding company oversight of residential mortgage loan servicing and foreclosure processing conducted by bank and nonbank subsidiaries.

In addition, the enforcement actions order the banking organizations that have servicing entities regulated by the Federal Reserve (Ally Financial, SunTrust, and HSBC) to promptly correct the many deficiencies in residential mortgage loan servicing and foreclosure processing. Those deficiencies were identified by examiners during reviews conducted from November 2010 to January 2011.

The Federal Reserve believes monetary sanctions in these cases are appropriate and plans to announce monetary penalties. These monetary penalties will be in addition to the corrective actions that the banking organizations are expected to take pursuant to the enforcement actions.

The enforcement actions complement the actions under consideration by the federal and state regulatory and law enforcement agencies, and do not preclude those agencies from taking additional enforcement action. The Federal Reserve continues to work with other federal and state authorities to resolve these matters.

The actions taken Wednesday require each servicer to take a number of actions, including to make significant revisions to certain residential mortgage loan servicing and foreclosure processing practices. Each servicer must, among other things, submit plans acceptable to the Federal Reserve that:

strengthen coordination of communications with borrowers by providing borrowers the name of the person at the servicer who is their primary point of contact;
ensure that foreclosures are not pursued once a mortgage has been approved for modification, unless repayments under the modified loan are not made;
establish robust controls and oversight over the activities of third-party vendors that provide to the servicers various residential mortgage loan servicing, loss mitigation, or foreclosure-related support, including local counsel in foreclosure or bankruptcy proceedings;
provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process; and
strengthen programs to ensure compliance with state and federal laws regarding servicing, generally, and foreclosures, in particular.
The Federal Reserve will closely monitor progress at the firms in addressing these matters and will take additional enforcement actions as needed.

In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc. (MERS), which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions. These actions address significant compliance failures and unsafe and unsound practices at LPS and its subsidiaries, and at MERS and its subsidiary. The action requires LPS to address deficient practices related primarily to the document execution services that LPS, through its subsidiaries DocX, LLC, and LPS Default Solutions, Inc., provided to servicers in connection with foreclosures. MERS is required to address significant weaknesses in, among other things, oversight, management supervision, and corporate governance. The LPS action is being taken jointly with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, while the MERS action is being taken jointly with those agencies and the Federal Housing Finance Agency.

The Federal Reserve Board based its enforcement actions on the findings of the interagency reviews of the major mortgage servicers, LPS, and MERS. A summary of the findings from the reviews of the mortgage servicers is available in the Interagency Review of Foreclosure Policies and Practices, which is simultaneously being released by the Federal Reserve Board and the other agencies.



False Statements

Lender Processing Services (http://frauddigest.com/fraud.php?ident=4706)

Action Date: April 13, 2011
Location: New Orleans, LA

"The fraud perpetrated on the Court, Debtors and trustee would be shocking if this Court had less experience concerning the conduct of mortgage servicers." This is the first sentence in the conclusion of an opinion dated April 6, 2011, by Bankruptcy Judge Honorable Elizabeth W. Magner in New Orleans, Louisiana in the case In re Wilson. (The full text of this opinion is in the pleadings section of this website.)

"With each revelation, one hopes that the bottom of the barrel has been reached and that the industry will self correct. Sadly, this does not appear to be reality. This case is one example of why their conduct comes at a high cost to the system and debtors."

Judge Magner is talking about Lender Processing Services in this Opinion. Lender Processing Services is the Jacksonville-based publicly-traded company that has been repeatedly criticized for its fraudulent practices. A subsidiary, Docx, LLC, was featured in a segment of 60 Minutes that aired April 3, 2011, and included confessions of former employees who admitted on air to FORGING over 4,000 mortgage documents each day.

Judge Magner granted the U.S. Trustee's Motion for Sanctions against LPS and scheduled the hearing to determine what those sanctions should be. Judge Magner praised the U.S. Trustee, saying: "But for the dogged determination of the UST's office and debtors' counsel, these issues would not come to light and countless debtors would suffer. For their efforts this Court is indebted."

This was yet another case where the employee of the mortgage servicer signed an Affidavit as if she was an officer of the mortgage company, having been authorized to sign as such via a corporate resolution from the mortgage company, in this case, the now defunct Option One. Judge Magner called this Affidavit "a sham."

The Court specifically found that the LPS employee never checked the attachments to the Affidavits she signed nor verified that the facts alleged were correct. "In fact, the affidavits she signs never have any attachments when forwarded to her for execution and she never adds any."

Other findings of Judge Magner stated: "Although the affidavit represents that it was executed in the presence of a notary and witnesses under oath, no oath is ever administered, and the signatures of the affiant, notary and witnesses are separately affixed
and outside the presence of each other. Ms. Goebel has no personal knowledge regarding the loan file save for the three (3) or four (4) facts read off a computer screen that she neither generates nor understands...LPS admitted that Ms. Goebel followed its procedures and that those procedures were used in all cases."

Henry G. Hobbs, Jr. was the Acting U.S. Trustee in this case. Sean M. Haynes, Joan S. Swyers and Amanda T. Burnette were the trial attorneys for the U.S. Department of Justice, Office of the U.S. Trustee. Elizabeth D. Harrington of Metairie, LA, is counsel for the debtors.





Foreclosure Courts in Southwest Florida (http://frauddigest.com/fraud.php?ident=4705)

Action Date: April 12, 2011
Location: Lakeland, FL

On April 7, 2011, the American Civil Liberties Union filed a petition for a writ of prohibition contesting certain practices of courts in Southwest Florida hearing foreclosure cases. The ACLU alleged that judges in five Florida counties, Lee, Collier, Charlotte, Hendry and Glades, ignored court rules regarding affidavits and violated the rules of civil procedure, giving advantages to banks and lenders in foreclosure cases. In many cases, these courts did not allow discovery by the homeowners if the homeowners admitted that they stopped paying their mortgage, even in cases where the homeowners disputed that the foreclosing entities ever owned the mortgages, according to the ACLU allegations. The ACLU petition included an affidavit from Michael Olenick, a software engineer and CEO of Legalprise, a court data analysis company in West Palm Beach, Florida. Olenick analyzed data from 26 Florida counties and identified a pattern of final judgments being entered prematurely and other abuses in the southwest Florida system that is routinely referred to as "the rocket docket." The ACLU petition is the first of its kind in the country.


Mortgage Fraud

Law Offices of David Stern (http://frauddigest.com/fraud.php?ident=4704)

Action Date: April 12, 2011
Location: West Palm Beach, FL

On April 11, 2011, The Florida Supreme Court agreed to consider a case involving allegations of fraudulent documents used in foreclosure cases by banks. On February 2, 2011, the Fourth District Court of Appeals, in a case involving alleged fraudulent documents, Pino v. Bank of New York Mellon, Case 4D10-378, certified a question to the Florida Supreme Court involving possible forged documents, noting, "We conclude that this is a question of great public importance, as many, many mortgage foreclosures appear tainted with suspect documents." The certified question was presented as follows:

Does a trial court have jurisdiction and authority under Rule 1.540(b), FLA. R. CIV. P., or under its inherent authority to grant relief from a voluntary dismissal where the motion alleges a fraud on the court in the proceedings but no affirmative relief on behalf of the plaintiff has been obtained from the court?

The bank had been represented by the Law Offices of David Stern. At one time, the Stern firm was the largest foreclosure firm in the state. In 2010, the Florida Office of the Attorney General announced an investigation into the practices of the Stern firm.

Sworn statements from former employees of the Stern firm have disclosed that the firm's office manager, Cheryl Samons, often signed mortgage assignments as an officer of Mortgage Electronic Registration Systems, Inc. though she had no knowledge of the documents she signed. Samons signed as many as 1,000 mortgage-related documents daily. These documents were then used as evidence in foreclosure cases brought by Stern.


False Statements

American Home Mortgage Servicing (http://frauddigest.com/fraud.php?ident=4702)

Action Date: April 7, 2011
Location: Coppell, TX

Giant mortgage servicer American Home Mortgage Servicing, Inc. (AHMSI) wrote a rebuttal to the 60 Minutes segment on forged documents used in foreclosures. The mortgage documents at issue, the forged documents, were prepared by Docx, LLC, a subsidiary of Lender Processing Services. The newest position is that the "real" assignments never made it out of the vault. Here are highlights from the AHMSI letter. The statements about the extent and duration of the Docx forgeries are also false.

HIGHLIGHTS FROM THE AHMSI LETTER TO 60 MINUTES:

"In addition to transferring the mortgage through an unrecorded assignment at the time the assignee securitization trust obtains the loan, it has been industry practice for the loan servicer to have an assignment of mortgage executed and recorded in the name of the trustee for the securitization trust typically shortly before a foreclosure action is commenced. This latter assignment would be recorded to put record title into the name of the owner or holder of the loan, to eliminate any confusion about the assignee being the appropriate plaintiff to commence the foreclosure action. However, this assignment would not act to transfer ownership or holder status to that assignee, which occurred earlier, as explained above.

Although there exists a signed and notarized unrecorded assignment of mortgage in favor of the securitization trustee in a loan file maintained under contract by a custodian retained by the trust, in most cases it is very burdensome and costly to obtain that old, original assignment and more troublesome to record it, which is a document in favor of blank (that is, the name of the assignee is not filled in) and is dated, signed, and notarized years ago; it is generally less burdensome, more efficient, and less expensive to have foreclosure counsel review the current state of title and counsel or a document preparer prepare, sign, notarize, and record a currently prepared assignment, pursuant to appropriate corporate authority."

See the entire letter by clicking on the Pleadings section of Fraud Digest, then scrolling down to AHMSI.

A rose by any other name: calling forgery "surrogate signing" does not make it a felony of a lesser degree.

[gunDriller]

Bank of America the 2011 Lehman Brothers?

http://finance.yahoo.com/q/bs?s=BAC

current assets - about $800 Billion

current liabilities - about $1400 Billion.


they're only $600 Billion in the hole.

no wonder their market cap is about $60 Billion. surprised it's that much.

the last 4 quarters - lost $16 Billion.

http://finance.yahoo.com/q/is?s=BAC


smells like a financial black hole to me.

if/ WHEN they fail - who do they owe money to ?

Jeez - if most of that $1.4 Trillion is Depositors - the FDIC has to find someone who is willing to take a bank that's - about 4 times bigger than Washington Mutual.

[platinumdude]

Time to buy BAC stocks! (If you feel lucky)


I don't worry about bank accounts since FDIC and NCUA insurance takes care of that. They just don't guarantee the purchasing power of the dollar.

[Ash_Williams]

Not BOA but I read this:

"Just before the close it emerged that Goldman Sachs chief executive, Lloyd Blankfein, had hired high-profile defense attorney Reid Weingarten. His former clients include a former Enron accounting officer."

[Sparky]

BAC hasn't yet reached its high-volume low of $6.31 on August 8th, and is still well above its March 2009 low of $2.53. Not that it can't fail, but there's no new evidence of it in today's price. If it closes below $6.31 on high volume (650M+ shares), then we're on to something.

If it gets below $6.31 tomorrow and ends higher on lighter volume (<500M shares), that would actually be a signal for short term buy. Emphasis on short term.

[JohnQPublic]

platinumdude, Sparky- Which one of you is actually Jim Cramer? You know we don't allow socks, right, Jim? ;)

[gunDriller]

FVCK Bank of America !


just felt like saying it.

i feel better now.

[Buddha]

UUUUGGGGGGGGG buy the dip :-X

[Spectrism]

Time to buy BAC stocks! (If you feel lucky)
I don't worry about bank accounts since FDIC and NCUA insurance takes care of that. They just don't guarantee the purchasing power of the dollar.


I think it was last Thursday... I happened to be watching a financial channel.... MNBC- I think, and one commentator shows Cramer saying: "It's not too late to sell your bank stocks." Ron Insana comes on next and says he disagrees with Cramer and thinks this is the best time to buy the bank stocks. They are a bargain at these low levels!

LOL...Insana is a POS even worse than Cramer.



I've got a bad feeling about this.

I have a good feeling about it. I bought put options on BAC, C and PRU. The PRUs are almost ready to cash out.... but I think I will hold a few days more if they continue to produce. The move in BAC was nice.... hoping for much more. The nice thing about Citi and Prudential is they have more room to fall.

I like week stocks that have a high enough price, they have plenty of room to drop.



UUUUGGGGGGGGG buy the dip :-X

Yes- when they get into a few pennies range.

[Hatha Sunahara]

Maybe it's time to buy put options on Goldman Sachs and JP Morgan.


Hatha

[platinumdude]

Maybe it's time to buy put options on Goldman Sachs and JP Morgan.


Hatha

Those stocks are already at their 52 lows.

[platinumdude]

There is good news for holders of bac stock.

Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.01 per share, payable on September 23, 2011 to shareholders of record as of September 2, 2011.

http://www.4-traders.com/BANK-AMERICA-11751/news/BANK-AMERICA-Bank-of-America-Declares-Quarterly-Dividends-13764038/