FedUpUSA

Archive for July 6th, 2011

This is getting rather tiring… (from Jim DeMint and Olympia Snowe)

….

There has to be another way, and there is. Republicans in the Senate are united in our concern about our nation’s fiscal future. Before we consider saddling our children with even more debt, we must enact significant spending cuts and enforceable caps on future spending. For the long term, to prevent both this Congress and its successors from hijacking the promise of American prosperity, we also need a balanced budget amendment to the Constitution, like the one we and all 47 Senate Republicans have introduced.

Nonsense.

The correct answer is to say no right now.

To not saddle anyone with one dollar of additional borrowing.

Doing so requires not one bit of legislation.  In fact, it simply requires that The House and/or Senate refuse to legislate.

Without an increased debt ceiling Treasury cannot spend more than it takes in.  Neither can Congress.  Neither can the Executive.  Nobody can.

It’s the simple solution, it’s the right solution, and it’s the necessary solution.

If Congress wishes to pass a balanced budget Constitutional Amendment, that’s fine.  Congress can consider same any time it would like, and then submit to the states for ratification.

But in the meantime, until that’s law, the simple solution is to SAY NO.

This fiscal conservative is tired of the excuses and lies of Washington DC and will accept nothing else.

The Market-Ticker

Longtime readers know I’ve been covering the registers of deeds, county officials who wield some degree of power in the case of foreclosure fraud, because they hold in their offices a good deal of physical evidence about mortgage assignments and associated documents.  Jeff Thigpen, the register of deeds for Guilford County, North Carolina, did a preliminary investigation of a set of documents in his office and found widespread fraud, particularly from forged documents.  Thigpen’s key partner, John O’Brien, a register in Southern Essex County, Massachusetts, has been fighting this fight as well.  He vowed not to record any documents he suspected of fraud, which would slow some foreclosures.  He demanded that MERS pay millions of dollars in back recording fees which were not paid when banks tracked their own mortgage transfers on a database.  But O’Brien hadn’t done the work of auditing his office.  Until this week, at a convention for county registers.

At the Annual Conference of The International Association of Clerks, Recorders, Election Officials and Treasurers (IACREOT), Register John O’Brien revealed the results of an independent audit of his registry.  The audit, which is released as a legal affidavit was performed by McDonnell Property Analytics, examined assignments of mortgage recorded in the Essex Southern District Registry of Deeds issued to and from JPMorgan Chase Bank, Wells Fargo Bank, and Bank of America during 2010.  In total, 565 assignments related to 473 unique mortgages were analyzed.

McDonnell’s Report includes the following key findings:
• Only 16% of assignments of mortgage are valid
• 75% of assignments of mortgage are invalid.
• 9% of assignments of mortgage are questionable
• 27% of the invalid assignments are fraudulent, 35% are “robo-signed” and 10% violate the Massachusetts Mortgage Fraud Statute.
• The identity of financial institutions that are current owners of the mortgages could only be determined for 287 out of 473 (60%)
• There are 683 missing assignments for the 287 traced mortgages, representing approximately $180,000 in lost recording fees per 1,000 mortgages whose current ownership can be traced.

McDonnell told O’Brien… “What this means is that the degradation in standards of commerce by which the banks originated, sold and securitized these mortgages are so fatally flawed that the institutions, including many pension funds, that purchased these mortgages don’t actually own them because the assignments of mortgage were never prepared, executed and delivered to them in the normal course of business at the time of the transaction.  In a blatant attempt to engineer a ‘fix’ to the problem, the banks set up in-house document execution teams, or outsourced the preparation of their assignments to third parties who manufactured them out of thin air without researching who really owns the mortgage.”

This is why, and I’ll get into this in a future post, the Bank of America settlement with investors, which appears to indemnify the bank and facilitate a conspiracy of silence between banks and investors on these securitization issues, is a really raw deal.  It “solves” one problem, BofA’s exposure to the investors in its mortgage backed securities.  But it in no way solves the much larger problem, namely who actually owns these mortgages.  An independent auditor, after looking at the evidence, could not figure it out.

Predictably, after O’Brien vowed not to record fraudulent documents, the banks started getting back replacement documents, including five from Bank of America, all with brand-new signatures and officers and notaries.  They just whitewashed and redid the documents. ” These Lenders chose not to sign my affidavit, but rather to submit completely new documents,” O’Brien said.  “I believe the Bank’s actions speak louder than words and show their consciousness of guilt.”

O’Brien is engaged in some real activism.  He told every homeowner in his district to check the records at his website and see if their home mortgage documentation has been robo-signed.  He’s facilitating consumer protection complaints through the Massachusetts AG.  He has provided letters that homeowners can print out and send to their servicers, demanding their full chain of title pursuant to federal law.  This is his perspective:

O’Brien asked McDonnell what this means for his constituents.  “It is vitally important for your constituents to know that if they are in foreclosure now or if their homes have been foreclosed upon, they can stop the foreclosure from proceeding, or institute a court action to vacate a completed foreclosure. The Massachusetts Supreme Judicial Court has established the law of the land in its decisions U.S. Bank, N.A. v. Ibanez and Wells Fargo Bank, N.A. v. LaRace and I can tell you that every single assignment of mortgage that was recorded for the purpose of foreclosing the homeowner is invalid, overtly fraudulent, or criminally fraudulent. My findings also show that your constituents who are not in foreclosure, and have never been delinquent in their payments also have clouds on title due to the recording of defective and invalid discharges and assignments of mortgage.”

“My registry is a crime scene as evidenced by this forensic examination,” stated John O’Brien. “This crime that has affected thousands of homeowners in Essex County who, through no fault of their own, have had their property rights trampled on and their chain of title compromised. This evidence has made it clear to me that the only way we can ever determine the total economic loss and the amount damage done to the taxpayers is by conducting a full forensic audit of all registry of deeds in Massachusetts. I suspect that at the end of the day we are going to find that the taxpayers have been bilked in this state alone of over 400 million dollars not including the accrued interest plus costs and penalties. The Audit makes the finding that this was not only a MERS problem, but a scheme also perpetuated by MERS shareholder banks such Bank of America, Wells Fargo, JP Morgan and others. I am stunned and appalled by the fact that America’s biggest banks have played fast and loose with people’s biggest asset – their homes.  This is disgusting, and this is criminal,” said O’Brien.

We literally have two registers of deeds doing the work that the federal government and state regulators should have engaged in for the last decade.

FireDogLake

Seriously, it doesn’t get much more stupid than this:

EU FINANCIAL REGULATION CHIEF: EU COULD LOOK INTO POSSIBILITY OF SUSPENDING RATINGS ON EU COUNTRIES RECEIVING BAILOUTS

Off the wires.

There’s idiotic and then there’s really idiotic.  This is the EU’s apparent response to ratings agencies saying that they will consider what amount to forcible debt swaps (that are falsely labeled “voluntary”) an act of default (they are.)  Rather than have those bonds deemed ineligible for pledging to the ECB and similar programs, the Europeans are now willing to simply say that they will take defaulted instruments by literally refusing to accept an objective determination that the default occurred!

The market, of course, loves this – it was good for an immediate few-point ramp in the S&P and DOW.

Can I ask when (and why) it became bullish to not only lie, but do so openly and accept defaulted bonds as collateral?

If this sort of desperation move – a clear statement that the ECB and EU banks are insolvent and now must resort to open and flagrant lies – has become bullish news then our international banking and monetary system is literally one mosquito breath away from utter and complete collapse.

The Market-Ticker

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