There’s ignorant and then there’s willfully and intentionally lying.

One is excusable, although regrettable.  The other, well, it’s not.

There have been a number of vitriolic attacks that have circulated of late since I showed up on RT the other day in regard to Occupy Wall Street.  I guess people have a problem with a media outlet that lets its guests actually speak their minds even if they might not agree with you.

See, in the US when you do that, they cut your mic off or simply talk over you.  That’s “how it’s done” with most of them.  Or they wait until you leave the set and then take a cheap shot behind your back.  I’ve seen both although there are certainly exceptions (Dylan Ratigan being one of the notable ones.)

But then there are those who invite you back even when they disagree.  RT is one of those.  For those who have the attention span of an ADHD sufferer, or perhaps they simply smoked too many bong hits when they were younger (or perhaps they’re even high now) it wasn’t that long ago that I showed up on RT when they scheduled me to ask about Obama’s health care plan and how it would be “more fair” and “more reasonable.”

I disagreed, and went into a nice little explanation of how we can write checks with our scientific ability we cannot cash with our tax system, and that this was utterly impossible to perform “as claimed.”

They didn’t cut me off, like a US outfit would have.  And they let me see the segment in front of me, so I knew it was an ambush (I had suspected as much) and was ready for them.  Heh, that’s actually “fair and balanced.”

See, all media outlets have bias.  I know what RTs is; they wear it on their sleeve, which as far as I’m concerned is just fine.  That’s how it should be; I wear my bias in the open too and have never tried to hide it.

Well, if you didn’t watch the interview, you should.  It’s here.

Today I traveled to Occupy Pensacola.  Yes, folks, it’s spreading.  I went for two reasons: I wanted to see this so-called progressive stack in action that I had heard was all the rage (and was basically reverse-discrimination) and I also was very interested in seeing what the composition of the crowd was like.  Full disclosure: I went with two officers of the Okaloosa County Libertarian Party, and we had signs too.

Well, here’s one of the first people I ran into:

Hmmm… that doesn’t look much like a young dope-smoking hippie — or a communist for that matter – does it?

Here’s a few more:

Not a lot of love for Obama, it would appear….

Not very hippie-ish there either… looks like some people are interested in…..Democracy?  Wait – I thought we were going to see a bunch of dope-smoking Communists!  Where the hell are they?

Wait!  There’s one…. oh, I was mistaken.  He’s young, but he appears to be rather upset about…. banksters stealing things.  Hmmm….

And then there are those that correctly identified the revolving door in Washington… and that guy’s beard is gray.  He’s not a young hippie, and neither is the woman with him.

A couple of folks waiving signs (also correctly identifying) the offshoring problem, and looking an awful lot like they’d like a (better) job, eh?  Wait….. they’re not kids either, and I haven’t seen a joint yet!

We had the “food, not bombs” people there, yes.  But notice the signs on the bench.  The bottom one is cut off, but is that the “F” word I see….. why it is!

There were, incidentally, the mandatory “Guy Fawkes” masks — well, a couple of them anyway.

I guess those youngsters figured if I could point a camera, so could they.  Fine with me.

There were a couple of signs I thought were a bit misguided.  Here’s one that stood out:

I had a nice conversation with her. I don’t know if I changed her mind or not, but I did give her something to think about, and it was actually a pleasant and educational exchange.  Not exactly the sort of “foam at the mouth” view that many people have of these folks, I might add. (Incidentally the sign is not really red; my camera did that, and I’m not quite sure why.)

Oh, now on that Progressive Stack thing.  While I was there they did the “people’s mic” speaking deal, where people queued to speak and did the “three or four word” deal that was then echoed back through the crowd.  Unlike NYC it’s legal to use a bullhorn, but about half of the speakers decided instead to use the “people’s mic” – myself included.

I’m a white man, the last guy you’d think would get the chance to speak, right?  I’d be asked to “step back”?  Uh, no.  Anyone who stood in line got called in turn without fear or favor.  We were a nice motley crew made up of men and women of all ages, races, colors and sizes, and we all took our turn.  Nobody hogged the floor or said anything that could be reasonably attributed as communist or racist. 

But there was one overwhelming theme: The people have been robbed, the Wall Street and DC people did it, and the people have had enough of the lies, broken promises and outright theft.

So there you have it folks.  The truth in pictures, from the ground.  I don’t know how many of these protesters will be camping as opposed to dispersing come this evening, and I live a goodly way from Pensacola.  If the mood strikes me I may take a drive over there next week and see if anyone’s still there and occupying as opposed to simply showing up and going home.

Oh, one other thing: I did not see one piece of trash anywhere on the ground, nor any sort of unruly or otherwise impolite behavior.

OWS looks like exactly what it appeared to be from 20,000 feet, despite the claims of many in the media and other so-called “punditry.”  It’s a group of very pissed-off ordinary citizens who, as I noted on RT, know damn well they got serially screwed, but they’re not sure exactly how. 

The know who did it though, and have identified the correct targets for their wrath.

Now it’s time to see if the political establishment will Stop the Looting and Start Prosecuting, as they should have four years ago, because it certainly appears that this is not a “one-day” protest, it is a movement, and it’s not going away.

The Market-Ticker

Discussion (registration required to post)

Linda Green’s name may appear on two million mortgage assignments, yet she has never been deposed. While there are a few depositions of robo-signers from document mills, in many cases, the document mills seek AND RECEIVE protective orders – arguing that such discovery is burdensome and meant only to harass. If you are a foreclosure defense attorney or a pro se homeowner fighting foreclosure, please send your experiences with this issue for an investigative report on Fraud Digest to szymoniak@mac.com.

Collier County, Florida — Have you heard the one about a homeowner foreclosing on a bank?

Well, it has happened in Florida and involves a North Carolina based bank.

Instead of Bank of America foreclosing on some Florida homeowner, the homeowners had sheriff’s deputies foreclose on the bank.

It started five months ago when Bank of America filed foreclosure papers on the home of a couple, who didn’t owe a dime on their home.

The couple said they paid cash for the house.

The case went to court and the homeowners were able to prove they didn’t owe Bank of America anything on the house. In fact, it was proven that the couple never even had a mortgage bill to pay.

A Collier County Judge agreed and after the hearing, Bank of America was ordered, by the court to pay the legal fees of the homeowners’, Maurenn Nyergers and her husband. 

The Judge said the bank wrongfully tried to foreclose on the Nyergers’ house.

Read the rest at digtriad.

Well, we’ve got at least ONE group onboard!

Congressman Grayson: “Breaking and Entering Does Not Become Legal Just Because a Big Bank Does It. The Rule of Law Must Apply Equally to Everyone”

Congressman Alan Grayson’s office sent me the following statement by the Congressman on the rampant foreclosure fraud, and the unlawful breaking and entering into people’s homes by the banks:

First we see systemic fraud in the foreclosure process. Now we’re literally seeing banks breaking into people’s homes and terrifying homeowners. The big banks claim these confrontations are a result of innocent errors. Come on! How many times are we going to force a woman to cower in her bathroom for fifteen minutes and dial 911 while a man breaks into a home, before we do something about it?

Breaking and entering does not become legal just because a big bank does it. The rule of law must apply equally to everyone. It’s long past time to halt this blatantly illegal activity. We need investigation and law enforcement, not coddling of failed institutions. We need justice for all.

Conyers and Kilpatrick Demand Lenders Extend Housing Foreclosure Moratorium to Michigan; No More Foreclosures Until Fraudulent Paperwork is Resolved

From the office of: Fourteenth District, Michigan
Congressman John Conyers, Jr.
Chairman, House Judiciary Committee
Dean, Congressional Black Caucus

Press Release

Conyers and Kilpatrick Demand Lenders Extend Housing Foreclosure Moratorium to Michigan; No More Foreclosures Until Fraudulent Paperwork is Resolved

Contact: Nicole Triplett
202-226-5543

Washington, DC- Today, Congressman John Conyers, Jr. (MI-14) and Congresswoman Carolyn C. Kilpatrick (MI-13) called on lenders to extend their foreclosure moratorium to Michigan and other states and to cease administering foreclosures until the problem of fraudulent paperwork is resolved.

The revelation that large mortgage lenders may have been evicting families from their homes based on flawed and erroneous documentation is no small matter. These lenders may have presented false affidavits – that is, sworn legal testimony – in thousands of cases fraudulently stating that a homeowner was in default or that the lender had the legal right to foreclose on the property, without the proper verification of the facts asserted in those affidavits. Moreover, the admission by these lenders of inaccurate documentation raises broader questions about whether they are proceeding with foreclosures in non-judicial foreclosure states based on faulty documentation or information. It is crucial that these lenders are held accountable.

Michigan is among the hardest-hit foreclosure states in the Nation. In August 2010, the state’s foreclosure rate increased 128% over August 2009 and it remains among the top five states in the Nation in foreclosure totals. Michigan’s foreclosure rate rose 29% in the first half of 2010 over the first half of 2009. Metropolitan Detroit showed an increase of 35% during that same time period, rising to the highest level since 2007. In July 2010 alone, 1 in 241 housing units in Michigan received a foreclosure filing. In Wayne County, the number was 1 in every 158.

In response to numerous recent reports of false foreclosure affidavits and other apparently fraudulent activities by home mortgage lenders, Reps. Conyers and Kilpatrick, today, sought the following actions:

· Lenders should extend moratoriums on home foreclosures to all states, including Michigan, rather than just those states with judicially supervised foreclosures.

· Lenders that have initiated moratoriums should insure that they actually prevent foreclosures rather than just evictions subsequent to foreclosures.

· The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, thereby controlling a major portion of mortgages subject to foreclosure in the U.S., should review its procedures for proper compliance and also consider initiating a foreclosure moratoriumAt the same time, Conyers announced plans to investigate mortgage lenders to learn more about their foreclosure practices, including paperwork violations and false affidavits, and ascertain what can be done to protect homeowners from possible abuses. As part of this effort, Conyers is asking the Federal Housing Finance Agency – the federal agency charged with overseeing Fannie Mae and Freddie Mac – to ensure that they abide by the law, to consider initiating a moratorium, and to conduct an audit of their actions. In addition, Conyers will be calling upon the DOJ’s Executive Office for U.S. Trustees to investigate the extent to which false affidavits have been filed in bankruptcy cases by lenders seeking to foreclose on debtor’s homes.

Thus far, only three lenders – Ally Financial (parent of GMAC Mortgage), Bank of America, and JP Morgan Chase – have ceased post-foreclosure enforcement actions in 23 states that have court- controlled foreclosure proceedings: Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, and Wisconsin. Even those lenders appear to have only ceased evictions, while they continue to engage in foreclosures, which take title from homeowners.

At this point Michigan and 26 other states are not on the moratorium list for these lenders, purportedly because they have a non-judicial foreclosure process. However, without judicial oversight, the possibility of abuse can be even greater in these states. As a result, elected state officials in non-judicial foreclosure states such as California, Colorado, Texas, Massachusetts, and Maryland have recently asked lenders to suspend their foreclosures.

Widespread concern about documentation abuses in the mortgage industry is not limited to state officials. Yesterday, House Speaker Nancy Pelosi and other members of the California congressional delegation called on the Justice Department, the Treasury Department, and the Federal Reserve to investigate large mortgage lenders’ handling of delinquent mortgages, mortgage modifications, and foreclosures. Additionally, Senators Robert Menendez (NJ) and Al Franken (MN) called on the Government Accountability Office to investigate the role of federal government entities charged with overseeing the mortgage lending industry to determine how they allowed lenders’ misconduct to occur without detection for so long. Also, Members of Congress from Maryland and Arizona – two non-judicial foreclosure states – called on large lenders to halt foreclosures in their states.

“It makes little sense to limit the moratoriums to judicial foreclosure states when many of the same errors and paperwork flaws likely plague non-foreclosure states,” said Conyers. “When the very same lenders that ignored the rules which helped get us into the real estate bubble are placed in charge of the foreclosures that are exacerbating the problem, locking millions of Americans in a financial trap they cannot escape from, we have a situation that is spiraling out of control and cries out for intervention.”

“Given the depth of the financial calamity in Michigan and other states, the huge number of foreclosures, and the chain reaction of problems involving foreclosures that has impacted communities and individuals, I would urge home mortgage lenders to cease their foreclosure activities,” said Conyers. “Rather than spending their time running mass production foreclosure mills, the lenders should be working with individuals to keep families in their homes and restructure their loans.”

“Home foreclosures affect individual families and devastate entire communities,” said Congresswoman Kilpatrick. “For home foreclosures to proceed under false pretenses is patently unwarranted and unfair. I am proud to join one of the founders of the CBC and Chairman of the House Judiciary Committee in this clarion call for justice, fairness, and equality to Michiganders and all Americans.”

###

In the last few weeks the issue has come to the table that in some states, in particular Florida, banks are rushing through the foreclosure process so quickly that they have mismanaged the paperwork process.  Apparently the same forged paperwork that got people with very little income into highly leveraged properties is now working in reverse.  This is a critical issue because housing is the most vital asset for the average American in their net worth profile.  Banks might like to believe that they can just automate our judicial system but that isn’t exactly how it works.  One major issue that isn’t being covered is why are banks so eager to foreclose in Florida but not in California?  The answer is because of mortgage foreclosure deficiency judgments.

“(Alperlaw) During the recent real estate boom deficiency judgments were uncommon because increasing real estate values brought home values above note balances of defaulting mortgages. Additionally, lenders could take back “upside down” properties and hold them until the rising market made them whole. Deficiency liability is a problem in a declining market. Up to this point in the real estate crash few of the national mortgage service companies with conventional first mortgages have been pursuing deficiency judgments, especially mortgages on owner occupied homes. There has been an increase in deficiency actions by smaller regional lenders. Many attorneys and other experts speculate that first mortgage deficiency lawsuits will increase in the future as lenders resolve foreclosure backlogs and as they sell their deficiency rights to third party investors and collection firms. Florida law gives mortgage lenders five years to pursue a mortgage deficiency claim.

Second mortgage lenders and private lenders are more likely than first mortgage holders to go after the borrowers by suing for default on the underlying promissory note. There has been a significant increase in second mortgage lawsuits since the beginning of 2009. Banks that made commercial loans to developers or builders almost always file a lawsuit against the individual borrower to enforce and collect upon the promissory note or personal guarantee of a business loan.”

Now this is an interesting perspective.  We have now had three major lenders with GMAC, JP Morgan Chase, and Bank of America announcing halts on some foreclosure proceedings.  Yet Wells Fargo has not announced any changes (could it be their $35+ billion in option ARMs in California?).  Here is the big difference.  Banks can rush and foreclose on homes in Florida and possibly go after borrowers at a later date.  For example, if a home was bought in Miami for $350,000 during the peak, ended up in foreclosure, the banks sells it for $250,000 there is a $100,000 gap.  The way the law is written, someone can go after the borrower for this.  The law isn’t so clear in a non-recourse state like California.  That is why shadow inventory is off the charts in California.  In Miami home prices have fallen in dramatic fashion:

Source:   HousingTracker

This explains why many banks in California have not moved on higher priced homes in the state where borrowers are simply not paying their mortgage.  It can also explain why Wells Fargo isn’t announcing any similar halts to foreclosures.  If you take a look at their option ARM portfolio you can understand why Wells Fargo has zero desire in speeding up the foreclosure process in California:

Source:  Wells Fargo 10-Q

Now logically think this out.  California has no issue with robo-signers and massive law firms dedicated to foreclosing on people.  Yet Florida does.  Both benefitted greatly during the housing bubble and both saw bursting markets.  Yet California is slow to foreclose while Florida is itching to get everyone out of their homes.  For a bank like Wells Fargo in California, there is no benefit in taking over a $600,000 option ARM on a home that would sell for $300,000 in today’s market.  That is a balance sheet hit of $300,000.  In Florida, they can take the hit now while the mortgage market is practically nationalized and start creating a portfolio of these underwater sales for future money grubbing.  If the bank doesn’t want to do the dirty work of going after borrowers, it can sell the right off to other investors.  The contrast between Florida and California is too stark when it comes to the foreclosure process.

The mortgage laws for both states are complicated as you can imagine.  The general notion that California is a “non-recourse” mortgage state might have something to do with how the foreclosure process is currently playing out from the banking industry perspective.  One thing is certain however, this current action will artificially make things look better in the housing market like the early stages of HAMP but anyone who calls this an improvement in the housing market is seriously living in another world:

“(WSJ) Chase and GMAC Mortgage Co. both suspended foreclosure sales in some states to review paperwork and the document-signing process. That means October and November’s reports will likely show an artificially low number of foreclosure starts. Some might interpret the falling numbers as improvement.  But “don’t get too excited about the market getting better,” Mr. Sharga warns.

Provided the paperwork is in order–which Mr. Sharga thinks will be the case in many of the stalled foreclosures–REO actions, or actual foreclosures, will likely spike early next year. “Don’t panic and think everything is sinking,” he tells Developments.”

And of course this doesn’t mean that Chase or Bank of America will do anything different in California:

“(NY Times) California’s attorney general, Jerry Brown, said that Chase should stop any foreclosures in the state until it proved that it was following the law. Mr. Brown, who is a candidate for governor, earlier made the same demand of GMAC.

In California, lenders generally pursue foreclosures outside of the court system, so they are presumably still proceeding with evictions. Chase declined to say whether it would comply with Mr. Brown’s comments.”

This is a complicated mess brought to you by the same banks that actually created these horrible mortgage products.  Is it any surprise that they are fumbling foreclosure cases?

Want to see some of the top foreclosure cities?

Source:  RealtyTrac

How is it that the state with the biggest housing bubble (and crash) doesn’t have one city in the top 5 here?  Even if we look at total foreclosure filings we can see that Florida is speeding ahead of California:

August data – total foreclosure filings

Florida                  -                              56,877

California             -                              69,143   (17 percent higher)

Florida population           -              18.53 million

California population      -              37 million (50 percent higher)

You can do the math here.  The banking industry has made a living stealing from the taxpayer for the last decade.  It is just stunning to see how far they are going to steal every nickel from the American public even if this means going after Americans years down the road.

My Budget360

Posted by Karl Denninger

I write with concern about two announced deals that are lauded by AIG CEO Robert Benmosche as AIG’s plan to ‘pay back the taxpayer’. In reading through the deal, it looks to me like the Federal Reserve is simply engaged in yet another disguised bailout of AIG. It’s not surprising that the New York Fed continues to shovel money at AIG using its balance sheet, since this seems to be official policy, but this time, the bailout also involves cheating the IRS.

In describing the deal specifics:

This relationship is not significantly different from just making the subsidiaries collateral for the existing loan from the New York Fed, with four exceptions. One, the FRBNY’s right are downgraded in this deal from creditors to preferred shareholders. Two, AIG gets to claim “repayment” and take a tax loss to reduce the company’s income taxes. Three, the FRBNY credit facilities are already collateralized. Four, the New York Fed owns nearly 80% of AIG, putting it on all sides of the deal.

And most brazenly, and deserving of applause, the allegation that Bernanke is implicilty breaking the law by his most recent AIG bailout:

As the New York Fed owns most of AIG, this deal could be considered a faked sale to generate a capital loss for the purposes of injecting Treasury funds into AIG without the consent of Congress. Please explain the legality of the arrangement.

Full Grayson letter to Bernanke: