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Tuesday, October 20, 2009


".. We have a real judge .. " (faulty lender chain of ownership in foreclosures)

"The MERShole Yawns Wide

Karl Denninger


We have a real judge!

“The foreclosure sales (in question are) invalid because they failed to meet the requirements of (Massachusetts law),” Land Court Judge Keith Long wrote yesterday in reaffirming a decision he originally reached in March.

At issue is "lost" (or improperly endorsed) paperwork when mortgages are sold from party to party, as typically happens many times during a securitization process.

I have often argued that a lot of "lost" paperwork is in fact intentionally destroyed, as this is one of the few ways to cover up blatant fraud in the origination of mortgages - brokers putting the same application through with a half-dozen ever-higher "claimed" incomes, for example, until they get an approval.  The original paperwork that is executed by the borrower, if it bears hand-written numbers that don't match the signature, could be a strong indicator of fraud committed by those brokers (and willingly ignored by securitizers.)

Judge Long wrote:

“The issues in this case are not merely . . . a matter of dotting i’s and crossing t’s. Instead, they lie at the heart of the protections given to homeowners and borrowers,”


Banks have long run roughshod over the law.  Indeed, their so-called "profits" virtually demand it in this world of lies, deceit and outright fraud.  In several states, including Florida, judges have been nothing more than handmaidens of these "enterprises", despite black-letter law in this state (and most others) that demand an unbroken chain of original, wet signatures in the assignment of interest.

If you can't produce the documents, by statute, you have no standing to foreclose. 


As specifically stated:

"The statute's commands are clear, the plaintiffs' own securitization documents show that they knew of those requirements, and if they failed to follow them, the responsibility for the consequences is theirs.

The willful destruction, non-retention, or improper (or no) recording of these documents makes all such affected securitizations fraudulent, as they were sold off to investors as being "asset backed" when in fact they were not, as being "asset backed" requires compliance with state law in the perfection of the security interest.  No security interest, no asset backing, and the offering prospectus is representing that which is known to be factually incorrect.

Most importantly all of the actors involved, including the securitizing banks, MERS and similar institutions, were aware at the outset that they did not comport with the laws of these states, and this knowing failure is given formal judicial recognition in this decision.  The offering documents as cited in the decision make clear that for each such tendered mortgage into the pool either a validly-recorded interest or transfer in recordable form was required, and such was warranted to have taken place.  It clearly, from the record, did not.

This elevates these omissions from "ministerial errors" to something far more serious, in that if you sell something to someone knowing you are not complying with the black letter of the law of the state in which you operate in every line of business - save one - you'd find yourself on the wrong end of a criminal complaint from the State Attorney General.

We need 50 Andrew Cuomos to bring criminal and civil charges, and we need them now.  This is a legitimate State Law issue in that The States have an affirmative duty to enforce the laws that protect their citizens, and in this regard the law is black-letter.

Can we find a (state) cop somewhere?

Oh, and for extra credit, does anyone care to take a wager on how much of the so-called "Secured" MBS that The Fed has been monetizing also has no valid assignment and thus has NO collateral, and in the event of a default, is WORTHLESS?

PS: Want to help yourself and others in your state?  Raise hell with your State AG, starting with faxing this Ticker to him or her..... The PDF of the decision showing that the securitizers were in knowing breach of their own covenants and requirements is found here.


Link to Pdf

"Mass. Land Court ruling on foreclosure sales

Full text of the ruling by Justice Keith C. Long, which affirmed his own March decision that invalidated foreclosure proceedings involving two Springfield homes because the lenders did not hold clear titles to the properties at the time of sale.

Anyone being foreclosed on should take the case to court.   Most people are just moving out.
They should do an ownership search and see if their mortgage is legally recorded as prescribed by law then take it to court. If mortgage ownership transfers haven't been properly documented then apparently one judge said tough noogies.

Thinking outside the box, my question would be, who owns the mortgage .... or is the mortgage instrument invalidated entirely by fraud? That thought makes me wanna go hmmmmmm.
During the housing boom, lenders passed around mortgages as if they were whiskey bottles at a frat party. Notes were lost, destroyed, sold into multiple pools. Mortgages were not recorded and exorbitant fees were collected by the big firms on Wall Street.

Now that the bubble has burst, “lenders” are trying to collect on loans they do not own, in most cases never lent a dime on the transaction, have no right to, or were paid 30 times over in bailouts, insurance, credit default swaps, etc.

They are doing this because they can. They are steamrolling the courts rocket dockets because hardly anyone is contesting their foreclosures. Think about it. If you could go into a court and file thousands of foreclosures a week, and only a mere 10% challenged the authority of the foreclosing entity, what would you do if you were the greedy bankster?

The crises is even worse in non judicial states…

In almost every case these pretender lenders do not and did not own the loan. Almost all loans during the boom were securitized and it was investors that put up the money. Not the banks.

Now these “pretender lenders” are trying to steal the homes by filing fraudulent assignments, by the thousands, to process the foreclosures.

Don’t believe me? See for you yourself.

4closureFraud on scribd

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