Close. Them. All. (Big Banks)


How much longer will you stand for these institutions robbing you?

Belvidere, Illinois, United States of America (Free-Press-Release.com) April 1, 2011 —

The investigation alleges that mortgage lenders such as Bank of America, Wells Fargo, PHH, Prospect Mortgage, Guaranteed Rate, Home State Bank, Key Financial Services, Platinum Mortgage, Integra Mortgage Inc. and various regional home builders have specific programs in place to compensate real estate brokers for steering business to their mortgage units.

This practice is illegal.

Madigan’s investigators are looking into consistent, widespread and obvious patterns of consumer fraud and manipulation. ??Month after month, these mortgage lenders get a substantial share of the mortgage market due to aggressive and defined kickback programs.

Kickbacks are against both State and Federal law.

It is not uncommon to see materials marketed to real estate agents with clear inducements of steep kickbacks or a split of the mortgage revenues that grossly inflate what consumers should pay for the mortgage or home they are purchasing. ??The Attorney’s office commenced the investigation when they looked into marketing material and a web site created by Integra Mortgage: www.af-usa.com. The promotional material claims that real estate agents can earn a commission by logging onto the web site and registering home loan consumers for mortgages. The mortgage company claims that once the registered loan transaction funds, the real estate broker or other interested taker would be given a portion of the mortgage revenue. When reviewed for accuracy the af-usa.com site noted rates two to three percentage points above fair market rates.

Screw the consumer and don’t disclose it fairly and fully.

Other types of lenders rely on weak State regulatory oversight and legal loopholes to obfuscate revenue kickback schemes. Bank of America, Prospect Mortgage and Wells Fargo appear to be the most egregious at this form of pay-to-play. Common regional examples of tie-in schemes are: First Freedom Financial (Bank of America), a joint venture with Prudential Realty and Personal Mortgage Group/PMG (Wells Fargo), a joint venture with Remax Real Estate. It’s estimated that Bank of America and Wells Fargo by themselves utilize several hundred joint ventures across the U.S.

Nice scheme.  The allegation is that cross-ownership winds up screwing people, because the loan origination winds up being steered by the broker in question, and the tie-in means that the consumer gets hosed through paying higher fees and costs, and those “profits” inure to the benefit of the tied company.

Joint ventures between real estate brokerage firms and banks are structured in many ways and usually work quietly behind the scenes. These ventures are typically negotiated at the upper levels of management between the banks and realty brokerage owners. The mortgage banks often funnel money to joint bank accounts of which the real estate brokerage owners draw off of as desired. ??Companies such as Guaranteed Rate have developed micro revenue kickback schemes for real estate agents specifically wherein the real estate agent can actually own a “share” of the company and is therefore entitled to mortgage company “profits”. Fraud is established from the first transaction because the kickback is not an even proration of Guaranteed Rate’s company revenue but rather based on the scope of the real estate agents referrals.

Wave your hands, scream and shout and then claim not only “too big to fail” but too big to jail as well!  Remember, Wachovia did this with nearly $400 billion in money laundering for Mexican Drug gangs, and our wonderful “press”, including the UK press, ignored the story until the “deferred prosecution agreement” expired, making sure that they’d get away with paying just a tiny fine amounting to less than two tenths of one percent of the amount they moved for these gangsters.

These mortgage bankers clearly understand that kickbacks are against Federal laws yet they continue to cook up elaborate go-arounds to Federal and State statutes. Their hopes are that the regulatory bodies are so ineffective that these kickback schemes will never be discovered.

No, their expectation and reasonable belief is that you won’t do shit about it, and thus these banks literally whizz all over the front hedge of your alleged “office” in which you sit and post wild press releases claiming to be “protecting” consumers.

Consumers have good foundation for this belief. After all, you not only allowed the banks to screw people with subprime lending and failed to assert the State’s 10th Amendment right to stop it, but you then went further and allowed an admitted 150,000 admitted bogus (and likely felonious and perjurous) documents to stand in your state courts and be used to foreclose on homeowners. 

You’ve also allowed apparent wanton and outrageous false claims of ownership of these loans to be made at the time of foreclosure, when there is an incredible amount of evidence that many of these loans were never transferred into the trusts at all.  Since the PSAs and NY Trust Law requires that this be done within (typically) 90 days of the closing date of the trust in question and the default and foreclosure happens months or years later these defects are incurable.  This means that these institutions are standing before your judges and in your courtrooms demanding to evict people for paying a debt that is not owed to the bank in question

Literal trillions of dollars worth of paper has been presented as “authentic” to your courtrooms that is in fact not authentic, lacks a documented chain of ownership as required by the PSA and law (because it does not exist) or has been buttressed by fabricated and back-dated paperwork that constitutes a separate and distinct fraud upon your courts.  You have done nothing in the form of prosecuting these institutions for their conduct, even though fraud is typically a felony offense, perjury is typically a felony offense and defilement of the court system destroys the legitimacy of your governments, legal systems, the citizens fundamental liberty interest and the 14th Amendment right to equal protection under the law.

The alleged “AG Settlement negotiation” is a bad joke and yet another fraud upon the public, this one being yours.  There is no criminal prosecution, no requirement to admit guilt and no recovery of the funds and properties stolen through these corrupt practices, most-especially fee-cramming and other acts designed to generate bogus defaults (including but not limited to banks telling homeowners to intentionally default so as to “qualify” for modifications they then fail to deliver.)  To add insult to injury your proclaimed “settlement negotiation” permits balloon notes as “modifications” which we know from experience in the 1930s will simply result in the putative “owner” losing his house in the future – after the bank makes even more money through additional interest, fee and penalty charges.

You have, in fact, a documented decades-long record of not giving a damn about the people at all when it comes to these matters, deferring to these large institutions in virtually every case.  In this regard you join Eric “Placeholder” as a gaggle of so-called “Attorneys General” who appear to have as your highest, best and only calling advocacy for and protection of those large financial institutions that screw the consumer.

The Attorney General’s office is making an effort to change that perception.?Illinois and Federal laws prohibit non-mortgage licenses to earn a fee on the origination of residential mortgages. If you have information that may help the Attorney General’s Investigation or you feel that you’ve been taken advantage of please contact the States Attorney’s Office or the IDFPR at the offices below.

Attorney Genrals Chicago Main Office
100 West Randolph Street
Chicago, IL 60601
(312) 814-3000

IDFPR: Professional Regulation
320 W. Washington
Springfield, IL 62786
Phone: (217) 785-0800

I will not believe a word of your claims until I see banksters locked up in prison for not only this alleged kickback scheme, but also for the admitted violations of the law that have already taken place.

The Market-Ticker