Chris Whalen Explains Everything You Need To Know About Foreclosures, Loan Put Backs & Bank Risk

Editor's Note: A repost necessitated by today's Massachusetts decision.

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Oct. 18, 2010 -- Bloomberg -- Christopher Whalen Video

Forced mortgage repurchase.

Aired yesterday.  Very, very good clip.  MBS investors might just own unsecured paper, contrary to what they were told by the trusts.  And in most cases they have no recourse.  7 minutes.

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From Chris' most recent article:

• link

The reading of our prior note, without an understanding of the importance of "blank name" to the mortgage origination to securitization process, has led to a series of stories suggesting that we are of the view that issuers are at risk and that we will have a Lehman weekend crisis, this is not our view. It is our belief that, given the black box nature of the process and the former white-hot origination market, that documentation of transfer may not have been properly effected. If not properly effected, the "true sale" of mortgages to the trusts that issued mortgage backed securities would be in question. If this proves to be the case then, as we stated in the October 12 note: "the Trustee, who has responsibility to make sure all loans were properly assigned to the trust, may have liability".

Josh Rosner
Why "In Blank Name" Matters and Trustee Obligations
Graham, Fisher & Co.
October 14, 2010

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Related links:

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Who’s Who in the Foreclosure Scandal: A Primer on the Players

http://www.propublica.org/blog/item/whos-who-in-the-foreclosure-scandal-a-primer-on-the-players

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Cook County (Chicago) Sheriff Refuses to Execute Foreclosures on Behalf of Banks That Suspended Foreclosure

http://www.nakedcapitalism.com/2010/10/cook-county-chicago-sheriff-refuses-to-execute-foreclosures-on-behalf-of-banks-that-suspended-foreclosure.html

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PIMCO, NY Fed Pressuring BofA to Repurchase Dud Mortgages (Empty Threats Edition)

http://www.nakedcapitalism.com/2010/10/pimco-ny-fed-pressuring-bofa-to-repurchase-dud-mortgages-empty-threats-edition.html

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Fed's Dudley: 3 million excess vacant housing units

http://www.calculatedriskblog.com/2010/10/feds-dudley-3-million-excess-vacant.html

Recently from Whalen:

• "Fannie Mae Is Now The Largest Landscaping Company In The U.S." (2-minute clip)

• Bernanke's Road To Deflation: Will Quantitative Easing Work As Intended?

• Chris Whalen & Nouriel Roubini On A New Gold-Backed Currency: "Paper Assets Are Headed To Zero" (VIDEO)

• New Bank Bailouts Under Dodd-Frank For Bank Of America, Wells Fargo Within 12 Months

The link to watch this clip on bloomberg's youtube page if this clip gets pulled.

Comments

[DailyBail]

Moody's: Commercial Real Prices fall to 2002 Levels

http://www.calculatedriskblog.com/2010/10/moodys-commercial-real-prices-fall-to.html

[DailyBail]

Foreclosure-Gate: The Investigations and some comments on other issues

http://www.calculatedriskblog.com/2010/10/foreclosure-gate-investigations-and.html

[DailyBail]

Lawymakers Increasing Heat on Servicers on the Foreclosure Front While Regulators Try to Give a Pass

http://www.nakedcapitalism.com/2010/10/lawymakers-increasing-heat-on-servicers-on-the-foreclosure-front-while-regulators-try-to-give-a-pass.html

[DailyBail]

"The science is settled!" That's the slogan used by the pro-Global Warming crowd. but is it really? Below is a list of 800 papers by respected and awarded scientists that question or contradict the Man-Made Global Warming Theory (AGW). The science is NOT settled... This list was compiled by Andrew over at PopularTechnology.net. This is worth sifting through!

http://www.msnbc.msn.com/id/39732691/ns/local_news-cleveland_oh/

Interesting stuff...

[DailyBail]

'Hackers can force a jet's crash'

A new breed of cyber terrorists have the capability of breaking into a plane's sophisticated on-board computer systems and forcing it to crash, a security document released Monday warned.

http://refreshingnews9.blogspot.com/2010/10/hackers-can-force-jets-crash.html

[DailyBail]

http://christwire.org/2010/10/why-do-hippies-still-exist-in-america/

Chriistwire doesn't like hippies...

[DailyBail]

The worst outcome would be a conclusion that errors by financial institutions had decoupled the payment promises made by borrowers from the mortgages they signed. In that case, the mortgages would be invalid. Homes could be sold without paying off lenders. There also could be heavy tax consequences for lenders, both in terms of federal income taxes and in payment of back fees for mortgage registrations to local governments across the country.

http://www.cnbc.com/id/39740025

[DailyBail]

Moral Revolutionary Party Denies Responsibility for Shots Fired at Pentagon

SHOTS FIRED AT THE PENTAGON?

http://americansjourney.blogspot.com/2010/10/moral-revolutionary-party-denies.html

[DailyBail]

Former U.S. Surgeon General Joycelyn Elders told CNN Sunday she supports legalizing marijuana.

The trend-setting state of California is voting next month on a ballot initiative to legalize pot, also known as Proposition 19. The measure would legalize recreational use in the state, though federal officials have said they would continue to enforce drug laws in California if the initiative is approved.

http://www.cnn.com/2010/HEALTH/10/18/former.surgeon.general.marijuana/index.html

[DailyBail]

JIM TRAFICANT CAN WIN IN OHIO

http://snardfarker.ning.com/profiles/blogs/jim-traficant-can-win-in-ohio

[S. Gompers]

"JIM TRAFICANT CAN WIN IN OHIO"

"Mr. Speaker, we are here now in chapter 11... Members of Congress areofficial trustees presiding over the greatest reorganization of anyBankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner's report that will lead to our demise."

United States Congressional Record, March 17, 1993 Vol. 33, page H-1303 The Speaker is Rep. James Traficant, Jr. (Ohio) addressing the House.

[Dr. Pitchfork]

'Hackers can force a jet's crash'
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The source for this is the British government. When is Team Obama going to put out its own super-scary cyber meme? Hey, I got an idea, why not stop murdering women and children in places like Pakistan. Then a lot of those terrorists will stop hating us for our freedom. (And we can just kill the rest.)

[S. Gompers]

'Hackers can force a jet's crash'

That would be something you would think they would not want to advertise.

[Dr. Pitchfork]

LOL Good point, Gomp.

[Z]

We crashed into one of truth's protective layers and found what?

Yes, ICE!!!

http://abcnews.go.com/Technology/water-moon-nasa-impact-probe/story?id=11939079

And some silver but Jim Rogers already owns it.

[Barbara Ann Jackson]

It is NOT always "the banks" who wait "years" or a long time before completing foreclosures. In many instances, the reasons for foreclosure delays lie with FORECLOSURE MILL LAWYERS.

Some lawyers deliberately prolong foreclosure while concealing MALPRACTICE against their lender-clients, and while committing UNFAIR DEBT COLLECTION PRACTICES and fraud against homeowners. Sometimes lenders (who are NOT required to know laws / statutes), are oblivious that foreclosure lawyers’ mistakes, errors, frauds on the court and upon opposing parties actually provided reasons, defenses, and opportunities for opposing sides to have grounds for debating key facts and issues in courtrooms --hoping to reach negotiation, as to avoid homelessness. Meanwhile, the mill lawyers rack up billable hours and fees for litigation those lawyers manufactured –sometimes erroneously, sometimes intentionally.

Illustrations: A property owner who seeks reorganizing his / her debts through Chapter 13 Bankruptcy is not to be blamed for contesting a FALSE “proof of claim” or a FALSE “Motion to Lift Automatic Stay” filed into the record by lenders’ lawyer. (Besides, problems arise with multiple ‘proof of claims’ by different lenders.) Or, when mortgage lender’s lawyer commits injurious frauds, fails to “effect service” or fails at any SUBSTANTIVE Civil Procedure requirement, the blame is on the lender’s lawyer –NOT the homeowner who REFUSES TO COOPERATE WITH UNLAWFUL EVICTION FROM THE SHELTER OVER HIS OR HER FAMILY’S HEAD.

SPECIFICALLY, countless foreclosure lawyers owe $$$$$$$$$$$ to their mortgage clients for fatally botching foreclosure proceedings –and countless foreclosure attorneys have been derelict about informing lender-clients, WHAT SAITH the APPLICABLE LAWS.

Mortgage lending fraud is SYSTEMIC and ALARMING in light of deliberate, underhanded foreclosures by unscrupulous FORECLOSURE MILLS! Dishonest lawyers (or their affiliates) gain ownership of properties after purported “simulated” auctions via “straw buyers”; and “flip” to Freddie Mac. Some lawyers file pleadings (summary judgments, etc) when Freddie Mac is NOT party to cases, and bill $$$$ as Freddie’s representatives. Via false Bankruptcy Court pleadings, foreclosure frauds impede homeowners’ restructuring debts and discovery of true owners of mortgage notes. Also, false pleadings NOT ONLY HELP illegal property repossessions, any other creditors whom debtors owe becomes deprived wrongfully of entitled shares of proceeds from purported auctions; and it causes WRONGFUL HOMELESSNESS and ILLEGITIMATE “deficiency judgments.” Lenders, Investors, and property owners are losers from foreclosure frauds!

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OPEN LETTER TO PRESIDENT OBAMA on Foreclosure Crisis (concerning Wells Fargo)
http://www.pr-inside.com/open-letter-to-president-obama-on-foreclosure-crisis-r1505916.html

Lehman Brothers, Wells Fargo Foreclosure and Insurance Claims
http://www.lawgrace.org/2008/09/14/lehman-brothers%E2%80%99-mortgage-troubles-nationally-evidence-of-foreclosure-fraud-deception-and-conspiracy-with-wells-fargo-deceptive-judicial-filings/

Important FACTS about FORECLOSURE and MORTGAGE FRAUD
http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/

[Z]

Barb...

Thanks for the Huffington Po post but we already get a lot of that here.