Quantcast
Feeds: Email, RSS & Twitter

Get Our Videos By Email

 

8,300 Unique Visitors In The Past Day

 

Powered by Squarespace

 

Search The Archive Of 15,000 Videos

SEARCH THE DAILY BAIL

 

 

Hank Paulson Is A Criminal - Pass It On

"The Federal Reserve Is A Ponzi Scheme"


Get Our Videos By Email

THE FED UNDER FIRE: Must See Clip

Bernanke's Replacement: Happy Hour In Santa Cruz

Must See: National Debt Road Trip

"Of Course We're Not Going To  Payback the Chinese."

Dave Chappelle On White Collar Crime

Carlin: Wall Street Owns Washington

SLIDESHOW - Genius Signs From Irish IMF Protest

SLIDESHOW - Airport Security Cartoons - TSA

Most Recent Comments
Cartoons & Photos
SEARCH
« Janet Tavakoli: "This Is The Biggest Fraud In The History Of The Capital Markets" | Main | Update On The Foreclosure Fraud Crisis (Links, Latest Developments, New Ratigan Op-Ed, Denninger Video) »
Friday
Oct082010

Is Foreclosure Fraud The New Black Swan For Banks

Video:  Ex-Ginnie Mae CEO Joseph Murin on housing and illegal foreclosures:

  • "It's going to get much worse.  Expect delays of 6-18 months."

Excellent detail.  Murin says he expects foreclosure delays of between 6-18 months due to the moratorium, which is much longer than most current estimates of 30-90 days. 

Here's the nightmare scenario for banks -- more homeowners start to challenge the ownership of their mortgage, and choose to stop paying in the interim, destroying bank profits and balance sheets while they wait for resolution from Congress or the courts.  Could get ugly.  Quickly.

Both Janet Tavakoli and Chris Whalen said Thursday it could necessitate a 2nd-round of bank bailouts.  The outcry from taxpayers would be deafening. 

How in Hank Paulson's lost paradise of hell do you sell TARP 2.0 to an already bailout-loathing public, when the need for the new rescue is precipitated by bank losses from foreclosure fraud!  You don't.

If you're Obama, you can't even look at the door to the room that has the desk where you would sit, and come to the table with this death-wish.  Geithner would hasten his departure to Goldman, so you'd be alone.  Buh-bye 2012.

Won't happen.  Chances are zilch, less than ZIRP even.  The result of which would create a new solvency crisis for banks, and this time it could very possibly be for real, given that no politician outside of Paul Kanjorski and Judd Gregg would even entertain bailout euthanasia.  And there would be no more FASB rule-change Hail Mary to save their insolvent balance sheets. 

Oh, and one more thing.  Has anyone stopped to consider whether a similar practice might exist with securitized commercial real estate foreclosures.  That will be for tomorrow.  It could be the unanticipated Black Swan event of 2010-11.  And this bird will be pissed off. 

A surfing bird, probably.   Clip from Family Guy included below. 

---

Update:  Janet Tavakoli sent along the following email tonight:

"The SEC is a failed regulator.  This step is not optional when securities are created and underwritten, and underwriters should be held accountable.

The result:

  • Banks are vulnerable to lawsuits from investors in the securitization trusts.
  • This problem could cost the banks significantly more money, which could mean TARP II.

This was far from the only problem with the securitization process.  It was a massive, widespread, interconnected Ponzi scheme with various types of concurrent fraud.  So far our regulators, court system, and Congress have failed in their duties."

###

 

Get all the latest:

Update On The Foreclosure Fraud Crisis (Links, Latest Developments, New Ratigan Op-Ed, Denninger Video)

 

 

---

     Email to a Friend

---

 

 

If the Black Swan were a Surfing Bird (choose your version):

Trashmen «Surfin Bird» live 1963 -- the original

#

Full Metal Jacket -- Surfing Bird

#

The Ramones -- Surfing Bird Live -- 1979

Make sure you're watching at 1:45-2:00 for the break.

#

Family Guy -- Bird is the Word

Stewie sticks a gun in his mouth at the end.

 

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (30)

Oct 8, 2010 at 4:28 AM | Registered CommenterDailyBail
http://www.marketwatch.com/story/us-bank-industry-entering-new-crisis-analyst-2010-10-06

Chris Whalen quote on new round of bank bailouts because of foreclosure fraud.
Oct 8, 2010 at 4:28 AM | Registered CommenterDailyBail
Email Janet Tavakoli sent tonight...has some more color on the situation...

---

[JT Note: The SEC is a failed regulator. This step is not optional when securities are created and underwritten, and underwriters should be held accountable.]

The result: "Banks are vulnerable to lawsuits from investors in the [securitization] trusts,"

"This problem could cost the banks significantly more money, which could mean TARP II."

JT Note: This was far from the only problem with the securitization process. It was a massive, widespread, interconnected Ponzi scheme with various types of concurrent fraud. So far our regulators, court system, and Congress have failed in their duties.
Oct 8, 2010 at 4:31 AM | Registered CommenterDailyBail
Another prediction that California metro area price peaks won’t return until 2025

http://firsttuesdayjournal.com/another-prediction-that-california-metro-area-price-peaks-won’t-return-until-2025/
Oct 8, 2010 at 4:53 AM | Registered CommenterDailyBail
Is G.E. the Real Reason Paulson Panicked in the Aftermath of Lehman? (Cries From Immelt)

http://dailybail.com/home/is-ge-the-real-reason-paulson-panicked-in-the-aftermath-of-l.html
Oct 8, 2010 at 6:08 AM | Registered CommenterDailyBail
This was also posted on Business Insider/ Clusterstock. I'm sure there will be a lively discussion there as well.
http://www.businessinsider.com/foreclosure-fraud-the-new-black-swan-for-banks-2010-10
Oct 8, 2010 at 8:23 AM | Registered CommenterDr. Pitchfork
"Here's the nightmare scenario for banks -- more homeowners start to challenge the ownership of their mortgage, and choose to stop paying in the interim, destroying bank profits and balance sheets while they wait for resolution from Congress or the courts. Could get ugly. Quickly."

It is the election season, and congress will act quickly to accept contributions to allow the banks to not show proof of the bank owning the mortgage, I have even heard of multiple banks saying they own the mortgage on the same property after the original bank failed. Courts have already allowed it happen, that is why the lawsuits are coming into play.

Everyone in trouble should challenge for proof because it is not your fault the system is screwed up.

The law defends the plunderer...


"The outcry from taxpayers would be deafening. "

Not really, the herdists will go out and vote for their favorite herd, while the majority will stay home to watch dancing with the stars. The banks and politicians know this, there will be a small noise coming from those not enamored by tv or the divine right of Kings.


Family guy bird...
Oct 8, 2010 at 9:24 AM | Unregistered CommenterS. Gompers
Everyone in trouble should challenge for proof because it is not your fault the system is screwed up.

The law defends the plunderer...
---
You can say that again.
Oct 8, 2010 at 10:07 AM | Registered CommenterDr. Pitchfork
Family guy bird...

---

Stewie sticks the gun in his mouth at the end...
Oct 8, 2010 at 12:25 PM | Registered CommenterDailyBail
Kid Dynamite Slaughters A Cow

http://fridayinvegas.blogspot.com/2010/10/kid-dynamite-slaughters-cow.html

It's not a joke...econ blogger kid dynamite does slaughter a cow...photos are graphic...
Oct 8, 2010 at 12:41 PM | Registered CommenterDailyBail
Lawler: “Foreclosure-Gate”: Who Will, and Who Should “Pay”?

CR Note: This is from economist Tom Lawler, who joked today: Maybe large servicers should be forced to put up billions in "claims fund," like BP? (the latter "caused" slime, while the former are just "slimy"!)

The mortgage-foreclosure debacle, which started with a story about a GMAC “technicality” (and included a “GMAC denies foreclosure moratorium” story) but which quickly “ballooned” as more mortgage servicers were “implicated,” has now exploded into a full-blown “issue” of unknown proportions. One thing is pretty clear – many larger mortgage servicers simply “screwed up” by trying to deal with the surge in foreclosures by taking shortcuts to keep costs down, and this mistake has blown up in their faces.

http://www.calculatedriskblog.com/2010/10/lawler-foreclosure-gate-who-will-and.html
Oct 8, 2010 at 12:41 PM | Registered CommenterDailyBail
Foreclosure fraud a black swan? Try a massive wedge of black swans.

Without clear title, foreclosing parties cannot establish standing. No standing means there's no case or controversy, and the court lacks jurisdiction to hear the suit in the first place. A couple of points here.

First, it means a lot of prior foreclosure judgments are flat out void.

Second, while the court may lack jurisdiction over the foreclosure dispute, it retains jurisdiction over fraud and has the power to assess attorneys fees and costs against the foreclosing party.

See for example http://www.msfraud.org/law/lounge/U.S.BankvHarpster.pdf at p. 3.

In general check out http://www.msfraud.org/law/lounge/Standing.html and just read a few decisions (they're usually short) to get a feel for how nasty this foreclosure mess may get.
Oct 8, 2010 at 12:47 PM | Unregistered CommenterCheyenne
I worry as well that the GOP will relieve banks of their liability...but it doesn't solve the problem as pitchfork states...servicers STILL have to prove they own the title...and that's no easy piece of bacon...i mean how do you find the original documents...?...you can't...

As Karl Denninger has been stating, the original documents MUST BE LOST...otherwise they would be using them...
Oct 8, 2010 at 12:50 PM | Registered CommenterDailyBail
My guess is that just about any foreclosure that occurs on a property where the original mortgage note was sold, would be a fraudulent foreclosure...

MERS is being remarkably silent...the very real possibility exists that none of the original documents have been saved...that they're all lost...it threatens to be a shitstorm followed by a tsunami...

Ugly....
Oct 8, 2010 at 12:51 PM | Registered CommenterDailyBail
good points and links cheyenne...reading them now...
Oct 8, 2010 at 12:56 PM | Registered CommenterDailyBail
It appears that most of the MSM is ignoring or downplaying this issue.

I wonder if pressure from corporate interests or crooked politicians has anything to do with that.
Oct 8, 2010 at 1:56 PM | Unregistered CommenterSagebrush
The foreclosure mill lawyer used a defunct lender’s identity to carry out a ‘simulated’ auction (in my absence); and a “straw” buyer purchase of my home occurred. I paid my NON-SUBPRIME mortgage for 7 years prior to abusive marriage. The foreclosure lawyer also filed false Bankruptcy “lift stay” motions and “proof of claim” documents under Wells Fargo’s name. After his unlawful auction, he had the property deed recorded into the name of the non-existent lender. Three months later, the local newspaper showed Freddie Mac as paying the non-existent lender over $86,000. At the end of the year, when the IRS mailed to me a tax bill, I discovered that Wells Fargo had also gotten in on that sham foreclosure by filing for my property, a false IRS form 1099-A.

It's not simply loss of my home that ‘eats my lunch’, it's such things as horrible, horrible YEARS of judicial abuses, privacy invasions, danger for my safety, blackballed from LAW employment, and other reprisals to which I am yet subjected, due to APPALLING LAND GRAB racketeering (AKA) foreclosure. And, it is similar appalling injustices of which I know have happened to other people, merely because they also lawfully sought their rights to DUE PROCESS OF LAW. I will not cease speaking out / I’m not an Internet troll. I am doing every lawful thing I know, because I simply want MY LIFE BACK. *http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/
Oct 8, 2010 at 2:09 PM | Unregistered CommenterBarbara Ann Jackson
Barbara...I will put your story on my weekend reading list...thanks for sharing...

And thanks to Seeking Alpha who picked up this story and has placed it on their front page...

http://seekingalpha.com/
Oct 8, 2010 at 4:09 PM | Registered CommenterDailyBail
Traffic servers just went KABOOM...
Oct 8, 2010 at 4:10 PM | Registered CommenterDailyBail
"Stewie sticks the gun in his mouth at the end... "

Unfortunately that is how Main street feels while watching Wall street get breast fed at their expense.
Oct 8, 2010 at 4:50 PM | Unregistered CommenterS. Gompers
Barbara--

Do you have a case number for your case in federal district court? For example 08-0079.

I'd like to check out some of your allegations on PACER. Litigation tends to crystallize issues.
Oct 8, 2010 at 9:37 PM | Unregistered CommenterCheyenne
Cheyenne...we'll see if barbara returns...i looked through her link and there's too much info there...and sage...the foreclosure fraud story led nbc news tonight (not sure about the others) so the story is gaining traction...
Oct 8, 2010 at 10:57 PM | Registered CommenterDailyBail
DB--

I checked her link too. Pro se litigants frequently fuck up basic shit. I suspect that's the case here. What intrigues me is her energy and resolve. We'll see.

Fuck it. I'm in NC this weekend hanging with homies who still bite on the left-right puppet show. It's football, though, I guess I shoukd rejoice.
Oct 9, 2010 at 12:02 AM | Unregistered CommenterCheyenne
with homies who still bite on the left-right puppet show...

---

tell me about it...i can't even get my girlfriend to break loose from the lies...
Oct 9, 2010 at 12:47 AM | Registered CommenterDailyBail
tell me about it...i can't even get my girlfriend to break loose from the lies...
---
I hope your girlfriend doesn't read The Bail ;-)
Oct 9, 2010 at 1:07 AM | Registered CommenterDr. Pitchfork
she reads and enjoys it, but her politics are set in stone...she votes straight DEM all the time...i don't even bother trying to change her mind...throw them all out...regardless of party...she won't do it...republicans are the worse of 2 evils in her book...i think they both are equally evil on the other hand...;)
Oct 9, 2010 at 2:01 AM | Registered CommenterDailyBail
I am beginning to see why my grandparents who lived through the depression never trusted banks for the rest of their lives.
Oct 9, 2010 at 3:41 PM | Unregistered CommenterS. Gompers
Banking really is a vile business...the extraction of flesh for interest...
Oct 9, 2010 at 5:52 PM | Registered CommenterDailyBail
The ELEPHANT IN THE ROOM (hiding in plain sight)

Because for more than 5 years, I have been sounding the alarm about FORECLOSURE DEBT COLLECTION abuses, I’m glad the fantastic occasion to expose the NUTS & BOLTS of the most ominous element of foreclosure fraud has finally come! I call it “the ELEPHANT IN THE ROOM! I hope the Florida's Attorney General prevails in investigating foreclosure mill firms who CLEARLY fabricate foreclosure documents!!

It is imperative that MILLS are investigated for INTENTIONALLY FABRICATING court documents because certain lawyers are engaged in SELF-DEALING FORECLOSURES. Most definitely, it is NOT A WASTE OF TAX PAYER MONEY to probe awful, underhanded illegalities surrounding foreclosures which have caused thousands of people to be UNLAWFULLY evicted and homeless –while unscrupulous lawyers became CRIMINALLY ENRICHED.

LONGSTANDING foreclosure frauds incorporate false CIVIL as well as BANKRUPTCY court pleadings; repetitive and illegal property flipping (thus blighted neighborhoods); “simulated auctions” and “straw buyers”; FALSE “lift stay” motions and FALSE “proof of claims;” and "fee-splitting." Certain lawyers achieve extra benefits from litigating foreclosure defense lawsuits, and MISREPRESENT to their mortgage-clients that homeowners are delaying foreclosures, but actually its continual deceptive lawyers' activities –while billing $$$$ to clients and actually committing MALPRACTICE + fraud upon the courts + fraud & illegal exploitation of homeowners!

Because fraudulent foreclosures include many facets, culmination can take years while arranging cash cow “PAWNS” needed for big pay-offs. [Super Future Equities Inc. v. Wells Fargo, et al., @ http://www.bankruptcy-lawnetwork.com/2007/05/11/what-are-those-mortgage-servicers-doing/.

LIKE AMERICA NEED JOBS, FORECLOSURE MILLS NEED INVESTIGATION. State Attorneys General everywhere now need to recognize the ELEPHANT IN THE ROOM –which has been for a long time, hiding in plain sight: foreclosure mill fraud! *http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/
Oct 13, 2010 at 3:38 AM | Unregistered CommenterBarbara Ann Jackson

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.