Bubbles…they ARE back !

By: Renee

The housing bubble is back. It actually never went away. Now lets go back in time, and trace in easy terms what happened.

Now, in certain areas of the country, a lot of homes got built. A closer look at those builders is warranted, as a lot of additional things happened to cause them to build those homes at warp speed. The loans were facilitated in a way to get people to sign those mortgage contracts fast, easy and cheap. It did not matter if they could pay for them, it did not matter if they were American citizens, had verifiable income, or would live in them very long. Just so those loans went through.

I have been following this story for 4 years, just on the housing side, and it is horrible for the people that are left in these neighborhoods as they now owe twice as much for their homes as what they are worth, because the people that sweetly sold them their “dream homes” never mentioned that half or more of their neighbors, would not be around long.

They knew what they were doing. They knew someone was going to allow those loans to go through. Who are the key people that set up this arrangement ? Who are the builders, and who are the financiers?

There are people in other countries demanding to be reimbursed for bad loan bundles too. Not just the homeowners are mad. A really grand scheme, gone really bad.

I love houses. I love developments. I love pretty streets, well planned with the required landscaping, nearby shopping, businesses, schools and churches. I am the last person to put down development or building. I love it, but within reason. When your city starts looking like one big grid, over and over with the same businesses on every corner, it gets boring, predictable. Like no imagination or variety is being utilized.

When I think of a quaint, American city, I think of a place with individual owners of interesting restaurants, bakeries, businesses, dress shops and gift shops. I do not think of  a taco chain, and drug store chain stores, next to the same old bank on every intersection. I do not think of every house in a city being one of 12 floor plans and accepted colors either. It is odd and unimaginative. Why would anyone build like that ?

The answer is rather obvious. It was fast, easy, cheap and profitable. For whom ? Again, follow the money. Now new developments are seeping out daily on TARP, and we have not even come to discuss the current commercial real estate situation.

Jan 31,2010 from FOX Business;
Sunday, January 31, 2010
TARP Inspector General Investigating ‘Suspect Trades’ by TARP Investment Management Firm
By Peter Barnes, Senior Washington Correspondent, FOX Business

A government watchdog is investigating “suspect” securities transactions made last year by an unnamed investment management company that partnered with the Treasury Department in a program under its $700 billion bank bailout.

Treasury, which detected the trades through its own internal monitoring system and brought them to investigators’ attention, denied any impropriety by the firm.

In a new report to Congress, Neil Barofsky, the Special Inspector General of the Troubled Asset Relief Program [TARP], said he launched an investigation into “a series of unusual trades” undertaken by the investment company, which he declined to identify. He also did not disclose the value of the transactions.

The firm is one of several financial companies that partnered with Treasury in the “Public-Private Investment Program” [PPIP], which the department launched last year to purchase billion of dollars in toxic assets from banks, including securities backed by souring mortgages. Together, the firms and the department have set up eight public-private investment funds [PPIFs] to buy bad assets; Treasury has already invested nearly $20 billion in TARP resource to the ventures.

In his report, Barkosky suggested taxpayers may have been cheated in the flagged transactions.

“A series of suspect trades…has already occurred within one of the (funds),” Barofsky wrote. “A portfolio manager directed the sale of a security from a non-PPIF fund under his management to a dealer after the security had been downgraded and then, minutes later, purchased from that dealer the same security at a slightly higher price for the PPIF.” [Italics added by Barofsky.]

Providing additional details, Barofsky said the “series of unusual trades” were made by a firm that “operates both a PPIF and one or more non-PPIF funds that invest in similar securities [i.e., mortgage-backed securities [‘MBS’]]. In the case of this fund management company, the same person is the portfolio manager for both the PPIF and (a) non-PPIF fund. In late October, the portfolio manager directed that a particular MBS from the non-PPIF fund be sold after the security…had been downgraded by a rating agency.

According to the company, multiple bids were received, and a quantity of the security was sold to a dealer. Within minutes of the sale, however, the same portfolio manager purchased, for the PPIF, the same amount of the same security from the dealer at a slightly higher price. Later in the day, the portfolio manager bought more of the security for the PPIF from the dealer at the original price.”

The report said the investment management company involved in the PPIF “asserts that there was nothing inappropriate about these trades, and Treasury has concluded that the trades did not violate PPIF rules.”

Barofksy said, however, that “the facts…give rise to difficult questions. Was the initial purchase really arm’s length, or was the dealer aware that the portfolio manager was prepared to repurchase the securities immediately? How can a manager conclude that it is wise to sell a security at one price but then almost simultaneously repurchase the same securities at a higher price? Were these trades designed to push the risk of this downgraded security from the private, non-PPIF fund onto the taxpayer supported PPIF? SIGTARP will seek the answers to these questions as part of its ongoing investigation.”

Barofsky disclosed the probe as part of his effort to push Treasury to adopt stricter conflict-of-interest rules in PPIP, including barriers or “walls” between investment managers – in effect, requiring separate managers for PPIP funds — within participating financial firms.

In a letter to Barofsky, Herbert Allison, the Treasury’s assistant secretary for financial stability, said PPIP compliance rules designed to monitor trading activity “effectively protect taxpayers without the need of segregated investment teams.”

Allison said separate teams “would be detrimental to the program because it would reduce our ability to retain experienced PPIP fund managers and as a result would reduce performance of PPIP funds.” He noted Barofsky “initially became aware of the circumstances of the trading activity…because Treasury discovered them through its PPIP compliance surveillance program.”

Some of the investment management firms in PPIP include Blackrock, AllianceBernstein and Wellington Management.

-snip-

Now, we have not even discussed pre-owned real estate loans, or commercial loans, but those are probably part of the TARP loans also, although I have not looked into what they actually are, or the breakdown.

Where is Fannie and Freddie in this ? Who forced these banks to take these loans? This is a stable. Too many scams. Too much corruption. Too much “phony” money, and homeowners and taxpayers on the hook, not to mention scammed investors. I hope Barofsky, or SOMEONE,  can actually do this right, and clean out this stable. Grab a shovel. Doesn’t it feel like someone did this on purpose ?  How could educated people be this greedy, or stupid ? How do they sleep at night ?

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59 responses to “Bubbles…they ARE back !

  1. We were warned…..
    Pete Seeger

    (please upload!)

  2. Great article, Renee. Here’s a link to a story that names some of the Pee-Pip firms:

    http://online.barrons.com/article/SB123822921763064821.html#articleTabs_panel_article%3D1

    All of the usual suspects. Take your pick as to which is being “investigated.” (If ANY really is being investigated. Who hired this Special Investigator?)

    Is it for real, or is it more kabuki theater? All designed to make it seem to the unobservant AS IF O’Bobblehead really cares about our money and wants to stick it to the “fat cats,” which, btw, he and his pal Geithner run with on a regular basis.

    Do you see this other developing trend? O’Bobblehead puts himself out there for Dems to throw pies at. They distance themselves from him (Reid, Lincoln, etc.) UNTIL they get themselves reelected. Then, voila! Who will pivot? O’Bobblehead or the re-elected Dems?

    This is all for show. They will PRETEND to be “populists”. They will PRETEND to care about deficits, wasteful spending, earmarks, the economy, jobs. It’s not for real.

    It will last ONLY until they fool as many of their voters as necessary, coupled with however many fraudulent votes ACORN can generate for them.

    Once reelected, they’ll go right back to pushing O’Bobblehead’s socialist takeover of OUR Republic.

    We the People, however, will NOT fall for this transparent (a first for O’Bobblehead!) “good cop/bad cop” routine.

  3. All roads lead back to Geithner, ford foundation and Rand..,….long and winding road

    • All Roads lead back to Geithner.

      Grandpappy (maternal) was a VP of Ford Motors.

      Mother in law, teaches piano in Larchmont NY while she sunbathes at their Florida Residence.

      Carole, the wife, she’s all about the Common Good, you know like voting machines and net neutrality.

      Enter, Larry Lessig and Tim Wu.

      Wiki Geithner, just for fun. Check out his family.

    • From above :

      Well, then, it was mortgage securitization – lenders selling bundled loans to investors. Only, where did mortgage securitization start? Who invented the notion and dominates it to this day?

      Answer: Your federal government. Fannie Mae, the government-sponsored enterprise that along with cousin Freddie Mac was at the center of peddling bad mortgage debt as good, was invented in 1938 with exactly the aim of creating a secondary market in mortgages. Fannie and Freddie failed in September 2008 and needed to be bailed out – they, unlike banks, haven’t paid back taxpayers – because, starting in 1995, they were bundling subprime mortgages.

      The investors who bought some should have known better. They might have, had federally approved debt rating agencies been on the ball. They weren’t, and in any event, the federal government for decades has made it policy to promote homeownership ever farther down the income scale.

      Under all this lies money itself – issued, controlled, expanded and contracted by the government, specifically the Federal Reserve. It kept interest rates at near-zero levels for an unusually long time after the recession of 2001. In curing the pain when the tech stock bubble popped, the Fed triggered the real estate bubble.

  4. The Second Massive Wave Of Mortgage Defaults – Devvy
    Links provide a history.

    1 – Foreclosures jumped 14% in December over the previous month
    2 – More states on budget brink
    3 – 25 states forced to borrow $24 billion to continue issuing checks
    4 – The Recession Is Over – The Depression Just Beginning
    5 – More than seven million households are either behind in their payments or in foreclosure
    6 – How nation’s true jobless rate is closer to 22%
    7 – Detroit destroyed by liberal, “progressive” politicians (short video you should watch; our America in ruins)
    8 – Why the Fed Likes Independence
    9 – Soaring rate of bankruptcies expected to continue in 2010
    10 – Late credit-card payments rise to record
    11 – UAW president: rob the people’s bank! No, Christmas wasn’t good for retailers (as so many of us predicted was going to happen)
    12 – December Retail Sales Drop .3 Percent, 2009 Sales See Biggest Drop In 27 Years

    http://www.newswithviews.com/Devvy/kidd479.htm

  5. Hey Frank and Dodd!

    Cat got your tongue these days?

    • Papoose: Beck said today that “Fwank” said We the People that are complaining are living in a parallel universe. I guess he just landed here from his own personal planet !

  6. President’s Day; Federal Reserve

    http://www.rense.com/general86/pres.htm

  7. We need to find out who is behind this exactly !
    Dig em up gang !
    http://www.freerepublic.com/focus/f-news/2456232/posts

  8. In 11 minutes get your degree on the last 15 years . E V E R Y T H I N G ~ every single detail. This is a keeper. 1995 to the present. The farce that continues to this day…

    Fannie and Freddie sitting in a tree
    S T E A L I N G …

    http://volubrjotr.com/main-stream-media/

    and the beat goes on , yeah the beat goes on.
    lah dee dah di dee; lah di dodd dee dodd

    • I am sure you are referring to Fannie and Freddie’s new request for another $15 BILLION after another huge 4th quarter loss in 2009 of $16.3 BILLION. The buy-in now tops $127 BILLION…

      But what’s a few billion between taxpayers? Anyone want to know why F & F keep getting our money if they can’t and don’t have total transparency? They do now guarantee over 1/2 of the US mortgages …and they are operating at a loss?

      • I was referring to this ~ an historical report on a video detailing the genesis of the collapse.

        If it doesn’t come up, the video is on the link above….same names, same players… current Oval Office stimulating themselves.

  9. There are two names in here that are in my digging…Rajat Gupta and Mark Schwartz. They have been coming up since the elections when I read. Looks like another coinidence Miri. The Schwartz name connects I think to Merrill Lynch somehow. Maybe buying homes or real estate investments. I forget, but red flag with these names. Will try to remember more, but these 2 need extra digging. Any shovels ready ?

    http://online.wsj.com/article/SB10001424052702303348504575184261856306400.html

  10. It is not just Goldman Sachs, there was alot more.Were we not reading during primaries that there were high pressures on some banks to take these scary loans ? I am not forgetting that.
    I also agree that the timing is the key to this fraud. This was done to dirty things, promote the bursts and then take over due to corruption.
    The corrupt were the strong arms pushing the toxic loans to begin with, and betting against them at the same time.
    Isn’t that lke taking out an insurance policy that says you will get 1 million if it blows up between Jan 1 and Jan24 and then blowing it up Jan 15th ? Not so cool…or fair is it ?

    • The story mimics elements of how Goldman Sachs were secretly betting against the U.S. housing market in 2006 and 2007 while peddling to its clients more than $40 billion in securities backed by at least 200,000 risky home mortgages.

      As Greg Gordon of McClatchy Newspapers reported last year, the clandestine move,”enabled the nation’s premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.”

      According to a report by the Senate Permanent Subcommittee on Investigations, Goldman Sachs made billions betting on a housing market collapse, not just through its short positions against the mortgage market, but “also against securities that Goldman Sachs had assembled and marketed to its customers”.

      The Goldman cover-up, allied with new revelations of how the Irish Central Bank similarly conducted itself, goes right to the heart of how financial elites were aware of the imminent economic crisis and positioned themselves fully to exploit it while leaving millions of unwitting homeowners to pick up the tab as the value of their assets shrunk and their houses entered negative equity.

  11. Well, It has been hidden as long as it could be hidden, but never really went away. The monster rears it’s ugly head again. The covered up theft, fraud, filthy dealings and illegal sales and foreclosures of housing and commercial real estate will soon spill over into an already shaking at the knees economy.
    No one is paying attention as usual..Hey, it’s football season ! Our males are firmly attached to the remote and the sofa so what the heck ? They will be the last to get it probably. Pop another beer boys. I fought with Banker friends that told me for 3 years it was not as bad as I said. They told me ” Why do I only hear this stuff from you ?” I got tired of it and ended contact. I gave up, and guess what ? They will remember all of my words really soon unfortunately. They told me they were the experts so they knew it all…. They said it was not that bad and that the web was overdrama in high gear, not to believe that stuff I was reading every day and keeping up with.. I hate know it all’s don’t you ? Let’s see how they handle their own mass layoffs too. The bottom of the elevator shaft is drawing nearer…any day now.. It will be exposed.The true depth of this dirty game. Let me show you a bit of current info on the situation.

      • The Massive Mortgage Mess as we affectionately call it seems to be getting new names with each passing day – the latest one is, quite appropriately, RoboSigning Scandal (funny how after the stock market, “robotic” technology will soon becoming equated with the biggest mortgage scam in history). During today’s Kudlow segment, CNBC’s Diana Ollick who is by and far the company’s best (and only) investigative reporter, confirms various so far unfounded rumors, that the government is planning to institute a 90 day foreclosure moratorium as it deals with the realization of just how big and pervasive the mortgage problem is, and even worse, will soon be. It is so bad that even a typically ebullient Larry Kudlow is forced to note that this is the “housing equivalent of the credit financial meltdown” and that “this is going to go on for ever.” The biggest issue that is now developing, as we noted last week, is the fact that title insurers (firms such as Fidelity National, First American, Stewart Info and Old Republic) are refusing to insure mortgages in foreclosure or otherwise, uncertain as to who actually owns the title. And for all those who believe this will merely keep prices artificially high, we have very bad news – the problem with the title insurers walking away on fears of lawsuits is that no lender will be willing to write a mortgage without title insurance, meaning that suddenly the up-front component of home purchases will either necessarily have to surge, or home prices will have to plunge by a like amount, as there is simply not enough equity (read money) to cover the resulting debt deficiency. Alas, this mess is just starting, and as people realize how bad it is, it very well may lead to a total collapse in the housing market.

        For all those hoping on a quick resolution so that Americans can go back to watching Dancing with the Stars, you may wish to reconsider. Quote Kudlow: “We’re not talking just a few weeks, or a few months. This sounds like a long, drawn-out, bureaucratic, robotic process with lawyers, and oh my gosh.” Another implication: a veritable bonanza for both lawyers and defaulters, the former of whom will end up making billions in legal fees (collected from the same banks which are still sucking off the ridiculously low TLGP-funded, and thus taxpayer sponsored fees), while the latter will be able to live mortgage free for years, while continuing to buy useless trinkets instead of paying what is contractually their duty.

        Another important topic discussed is the fact that due to decades of faulty securitizations, suddenly no bank knows who owns what. Courtesy of several trillion in now title-undefined mortgages, which in turn form the basis for thousands of CDOs, which in turn are split up into millions of tranches, and includes the complicity of Fannie, Freddie and private label, it is the banks and their clients that have shot themselves in the foot: as other have noted, very soon, the entire MBS process can and very may grind to a halt (if that happens, goodbye Pimco).

        As mentioned earlier, Ollick confirms that according to rumors, the government is going to impose “some kind of 90 day foreclosure moratorium on the banks which would melt down the housing market.” In fact Congressman Merkley already indicated he is for a foreclosure moratorium.

        At the end of the day: the one true loser, is the law-abiding, conscientious, tax and mortgage paying middle class American, who is now preparing for TARP 2 as the banks will all almost definitely need to run to the bailout through because of this catastrophe.

        Must watch 10 minute explanation for anyone who is still confused by any aspect in this massive story.

    • See ? This is how you take over all the property ! Like this ! You STEAL it from people. And all of their savings too. Sooo sweet of them no ? Then you shaft the other people with real, approved loans. Loans for 300k…that are now worth 100k…then they run away too !
      snip~
      From link above.

      JP Morgan JP Morgan Chase
      The foreclosure fraud bombshell has hit the fan. Updating an earlier post, Bank of America has now halted foreclosures in 23 states:

      Bank of America is joining JPMorgan Chase and GMAC is suspending foreclosure processes in 23 states that weren’t reviewed properly.

      A BoA exec admitted she signed up to 8,000 documents in a month and typically did not read them.

      Connecticut has halted all foreclosures:

      Connecticut Attorney General Richard Blumenthal on Friday ordered a moratorium on all foreclosures by all banks for 60 days–the most radical action taken by a state on issue of document irregularities.

      California also expanded the moratorium on foreclosures it announced last week on Ally Financial foreclosures to include those by J.P. Morgan Chase.

      Calling the companies’ review of key foreclosure documents “a ruse,” California Attorney General Jerry Brown (D) ordered J.P. Morgan to prove it is following the law before it continues foreclosures in the state.

      Both J.P. Morgan Chase and Ally have frozen foreclosures in 23 states because some employees had signed off on foreclosure paperwork without properly reviewing the files.

      Colorado and Illinois have stopped foreclosures by Ally and at least seven other states have launched probes into the issue. But Connecticut is the first to institute an industry-wide ban.

      The robo-signing of affidavits has hit mortage title insurance companies:

      Title insurance protects home buyers against losses arising from disputes over the ownership of their property.

      In recent weeks, controversy has erupted over employees of mortgage lenders or servicers who sign thousands of affidavits supporting foreclosures that have to be cleared by judges in many states. These employees have become known as robo-signers because they sign so many documents in such a short time.

      Below is the original post, written 9 days ago, on the start of the bombshell tidal wave of news, injunctions, halts mentioned above.

      Something is amiss in Florida with foreclosures. Something is amiss nationally with foreclosures. When one is foreclosed on, the creditor must file an affidavit with the court. It seems GMAC was manufacturing 10,000 fake affidavits per month. That’s right. Signing judgment affidavits, which evict real live people, without checking the statements and data contained within as even being correct. Get’s worse. The courts are so overwhelmed, they are processing cases like the delousing chambers at Dachau.

      Bloomberg broke the story when GMAC suddenly stopped foreclosures in 23 states. GMAC is the 4th largest mortgage originator. Seems there is a huge problem with foreclosure mills, evicting with improper procedure.

      Florida Attorney General William McCollum in August announced an investigation into three law firms that represent loan servicers in foreclosures. McCollum issued subpoenas to the firms, which are alleged to have submitted fraudulent documents to the courts in “numerous occasions” or failed to submit documents at all, according to an Aug. 10 statement from McCollum’s office.

      “Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of the law firms under investigation,” the statement said.

      Congressman Alan Grayson even wrote a letter to the Florida Supreme court asking all foreclosures be stopped by court order:

      September 20, 2010

      Chief Justice Charles T. Canady

      Florida Supreme Court

      500 South Duval Street
      Tallahassee, FL 32399-1900

      Dear Chief Justice Canady,

      I am disturbed by the increasing reports of predatory ‘foreclosure mills’ in Florida. The New York Times and Mother Jones have both recently reported on the rampant and widespread practices of document fraud and forgery involved in mortgage assignments. My staff has spoken with multiple foreclosure specialists and attorneys in Florida who confirm these reports.

      Three foreclosure mills – the Law Offices of Marshall C. Watson, Shapiro & Fishman, and the Law Offices of David J. Stern – constitute roughly 80% of all foreclosure proceedings in the state of Florida. All are under investigation by Attorney General Bill McCollum. If the reports I am hearing are true, the illegal foreclosures taking place represent the largest seizure of private property ever attempted by banks and government entities. This is lawlessness.

      I respectfully request that you abate all foreclosures involving these firms until the Attorney General of the state of Florida has finished his investigations of those firms for document fraud.

      I have included a court order, in which Chase, WAMU, and Shapiro and Fishman are excoriated by a judge for document fraud on the court. In this case, Chase attempted to foreclose on a home, when the mortgage note was actually owned by Fannie Mae.

      Taking someone’s home should not be done lightly. And it should certainly be done in accordance with the law.

      Thank you for your consideration of this request.

      Sincerely,

      Alan Grayson

      Member of Congress

      Of course GMAC denies, they are running a foreclosure factory, claiming it’s just a technical issue. That said, the New York Times reported that the courts are overwhelmed homeowners are only getting a 5 minute hearing. That’s not cool. Supposedly in the United States, everyone is entitled to a fair and full hearing.

      The Florida Supreme Court has consistently recognized the need to hire retired judges on a temporary basis, Mr. Combs said, and has ruled that such a “temporary” use is constitutional.

      But because the retired judges are being given foreclosure assignments “repeatedly and consecutively” to the point of usurping the elected judges’ jurisdiction over all residential foreclosure cases, he said, their use may not qualify as temporary and could thus violate the Florida constitution.

      The fact that these judges are being paid to reduce the court’s case load creates a perception among homeowners that the judges have a financial interest in dispensing cases prematurely, Mr. Combs said, creating a potential bias against borrowers and possibly violating their right to due process.

      He pointed to a recent case in Broward County in which a retired judge refused to postpone a borrower’s foreclosure sale even though the bank had agreed to it. The judge stated that she was there to “dispose of cases.”

      “If you are an individual whose house is being foreclosed and you hear these judges are being paid to clean out the backlog, under a realistic appraisal of human tendencies, do you think that the average judge would be biased in favor of prematurely terminating your case to clean out the backlog?” Mr. Combs asked.

      J. Thomas McGrady, chief judge in the Sixth Judicial Circuit, said in a press release announcing the program: “We have to clear these cases because of the negative impact they are having on other civil litigation. The real estate crisis has placed a tremendous burden on our judges, and people with other types of pending litigation are also entitled to their day in court.”

      Yves Smith on Naked Capitalism asks, How Serious is the GMAC Problem? Pretty Serious and Not Just GMAC, is the problem limited to GMAC Mortgage?

      GMAC Mortgage and other banks may hope to sell the story line that its problem is limited to a lone “rogue servicing officer.” Unfortunately, the servicing officer in question indicated in his testimony that he prepared 10,000 or more affidavits per month, so it strains credulity to think that GMAC management was ignorant of his actions.

      Lovely, while the Banksters get trillions, millions of people are being treated like financial cattle, even through our court system.

      We will assuredly be hearing more on this one. From the Bloomberg article a quote:

      “All the banks are the same, GMAC is the only one who’s gotten caught,” said Patricia Parker, an attorney at Jacksonville, Florida-based law firm, Parker & DuFresne. “This could be huge.”

      Q2 2010 foreclosures by state. Notice Florida is foreclosure ground zero.

  12. Headline today at Yahoo News:

    Officials in 50 states launch foreclosure probe

    Now if the people in the 100% UNDERWATER loans could get the crooks that sold all those homes to unqualified buyers and cost the verified, qualified, homeowners everything they had we would be really cleaning things up. That is why the good loans and their homeowners are walking away too ! These fraud foreclosures are just a tip of the iceberg. SOMEONE CAUSED THEM WITH FRAUD LOANS…..FRAUD LOANS, FRAUD FORECLOSURES….

    DIRTY going in, dirty coming out…DIRTY being the key word of BOTH.

  13. A must read. Great article. More of the fraud market exposed. Can you say J.P. Morgan again ?

    http://www.washingtonsblog.com/2010/10/what-is-mers-and-what-role-does-it-have.html

  14. JP Morgan, one of the founders and largest owners of this Crooked, fake garbage wants to sail away after the destruction, fraud and profit ? No way.
    MERS…what a box of filth, fraud and theft of property. They hit commercial real estate too. Not just homes. See more here:

    http://www.dailykos.com/story/2010/10/14/13622/799

    • More at link above :

      Wed Oct 13, 2010 at 10:36:22 PM PDT
      JP Morgan announced today that it is no longer going to use the now infamous Mortgage Electronic Registration System (MERS). You can read the short AP release here

      Really? Isn’t this decision about 62,000,000 mortgages late JP? What?

      Do you really think you can distance yourself from the system that enriched you and yours for the past decade and which resulted in the ruination of the global economy and the personal lives of tens of millions of people? Really?

      Not going to happen.

      Millions of the 62,000,000 home sales whizzed from quaint mortgage brokers offices into the MERS blizzard of mortgage transfers on their way through your raters, who fudged, and into your coffers to be polished, shined, sliced, diced, sold and shorted, Mr. Dimon, don’t have proper paperwork trails. Today, notes are lost and no one can figure out if there is, without a doubt, the ability to produce a free and clear title.

      Exiting MERS is a joke, JP. MERS is chained around your neck until everyone who has been unjustly harmed by the sociopathic system of RoboMortgages is made whole.

      BUYER OF FORECLOSED OR ANY PROPERTY BEWARE!

    • ROYAL PALM BEACH — Tom Ice was a desert boy who wanted to be Jacques Cousteau. He earned the degree and everything, leaving his home in Santa Fe, N.M., to study ocean engineering at the University of Miami.

      But the former high school debater had an inexplicable change of heart, one that led him from the rhythmic comfort of the ocean to the tense arguments of the courtroom.

      Ice, 50, has emerged as a Robin Hood of sorts in the tangled world of foreclosures, representing homeowners and fighting powerful law firms backed by big banks.

      From his West Palm Beach home – he doesn’t have an office at his firm in Royal Palm Beach – Ice’s legal wrangling is largely recognized for contributing to the nationwide suspension of foreclosures enacted by several major lenders. On Wednesday, attorneys general from every state launched a nationwide probe of loan servicers.

      Ice credits his engineering background for his attention to detail and years of litigating for his tenacity. He was trained, he said, to doubt everything the other side says and “look under every rock.”

      What he and his wife, Ariane, found buried under boulders of foreclosure paperwork were backdated documents, affidavits sworn to by bank employees processing thousands of foreclosures a month, and questionable assignments of mortgages coming out of the Mortgage Electronic Registration System, or MERS.

      After the discoveries, Ice did what any good litigator would do: He asked to depose employees involved in creating the documents.

      Then he made the unusual move of posting the depositions on his website, a strategy he credits for much of the snowball of foreclosure suspensions.

      “None of this could have occurred without an exchange of information,” said Matt Weidner, a St. Petersburg foreclosure defense attorney. “Ice was absolutely instrumental and an essential key.”

      Ice believes his firm was the first to depose GMAC Mortgage employee Jeffrey Stephan.

      Stephan was one of the first identified “robo-signers,” attesting to the veracity of 10,000 foreclosure affidavits a month and swearing to the impossible feat of personally reviewing support documentation on each.

      GMAC, renamed Ally Financial Inc., announced last month it was suspending some foreclosures. JPMorgan Chase, Bank of America, Litton Loan Servicing and PNC Financial Services Group followed.

      “We’ve studied this for two years and I fear we are just scratching the surface,” Ice said. “It is a rabbit hole.”

      Ice, who has been quoted by major U.S. newspapers about his foreclosure work, never expected to be a foreclosure attorney. For most of his 25 years practicing law, he has worked for large firms defending corporations.

      But about 2 1/2 years ago, Ice, who has an 8-year-old son, decided to go out on his own, opening a one-man bankruptcy firm. He soon realized he could better help his clients by defending foreclosures in state court.

      “The real estate attorneys would get an affidavit and say, ‘OK, I guess we lose,’ ” Ice said. “My thing was to say, ‘Well, let’s take a deposition and file for discovery.’ ”

      Ice Legal, where the motto is “Your home is your castle, defend it,” now has seven attorneys working mostly on foreclosure cases.

      Riviera Beach resident Barbara Williams, 57, has been an Ice Legal client since 2008, when a work injury and subsequent income reduction led her into foreclosure.

      Williams, a licensed practical nurse, said she’s hoping to work out a new payment agreement with her bank.

      “I don’t feel like they are just doing something to make a buck,” Williams said of Ice Legal. “I am very confident they are doing everything for my benefit and giving it 100 percent.”

      Ice has 400 active clients and said he has lost only a handful of cases. He admits to workaholic hours, describing himself as an early riser and an insomniac.

      “It was hard to get people to take us seriously in the beginning,” Ice said.

      He has undoubtedly stepped on toes.

      He filed more than 100 motions to disqualify Palm Beach County foreclosure Judge Meenu Sasser, alleging she was biased against his attorneys and gave preferential treatment to lenders.

      • Several of the cases in which Sasser denied his motion to disqualify her went to the 4th District Court of Appeal. The appeals court sided with the judge, saying in one case that Ice seemed intent on frustrating the “efficient function of the foreclosure division.”

        West Palm Beach attorney Gerald Richman of Richman Greer, P.A., has complained in general about foreclosure defense attorneys using questionable tactics to stall cases.

        “If someone is clearly in default and really doesn’t have a valid defense, it’s wrong to go ahead and drag a case on,” Richman said. “Some defense lawyers are basically creating issues to delay for delay’s sake.”

        But Ice said forging signatures, as is alleged to have occurred at one South Florida foreclosure law firm, and swearing to things that aren’t true are fraud upon the court that should be exposed.

        “Just because the bank says they own your home doesn’t mean they do,” Ice said. “For too long, people were just hoping no one would look behind the curtain.”

  15. I want to tell you all a little story I heard from a tearful, cashier friend at my local market. It seems that she had a mortgage from Chase for 12 years. They decided to do the loan modification program. They got into the middle of it and just got 6 letters at the same time yesterday. Well, it seems that for some odd reason that their home is now being foreclosed on by guess who ?
    IBM.
    Yes, that is right. I guess they are now taking over American homes….
    then I read this, and note that profits are down for them, so I guess they found another way to make more money. This needs to be investigated. Big time. Right now. This company is all over these threads on this site, but let’s look at them again. Watson and Allen especially. The cashier above has no idea how they got involved in her paper.None at all…….

    http://www.statesman.com/business/business-digest-bank-of-america-to-end-freeze-979088.html

      • The company which became IBM was founded in 1896 as the Tabulating Machine Company[11] by Herman Hollerith, in Broome County, New York (Endicott, New York or Binghamton, New York), where IBM still maintains very limited operations. It was incorporated as Computing Tabulating Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild. CTR’s Canadian and later South American subsidiary was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control of it.

        Since November 1910, a Hollerith subsidiary existed in Germany, the DEHOMAG (Deutsche Hollerith-Maschinen GmbH), founded as a license holder from the Tabulating Machine Company. In 1922, the renamed CTR took over 90% of DEHOMAG, which was in license debt due to the German inflation 1914-1923. In 1949 DEHOMAG finally took the name IBM Germany.

        IBM has an important history of acquisitions and spin-offs. Among the famous ones, German SAP was founded in 1972 by five former IBM engineers. Chinese Lenovo became world-famous after acquiring IBM’s Thinkpad business in 2005.

  16. I told you IBM was foreclosing on Chase Mortages and you probably did not believe me. That Allen-Watson clan again ? They tell these people to modify and hold off 3 payments for the refi then… eureka ! They send the foreclosure papers and repo it in the middle of refi ? Nice business scam no ? Then IBM owns houses with 8-12 yrs equity for nothing..What does IBM need to be involved in mortgages for ? Real estate -property aquisition a la cheap ?
    SMELLS…..

    http://ibm-lender.pissedconsumer.com/ibm-lender-business-process-services-lbps-scam-20100625187310.html

    http://ibm-lender.pissedconsumer.com/ibm-lender-business-process-services-lbps-scam-20100625187310.html

  17. And this huge scam too ! Can you say “Modern day poachers” ??????

    http://www.nytimes.com/2010/11/09/us/09foreclosure.html?src=me&ref=general

    • Read the rest at above link.This is huge.

      The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby­rinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

      The Real Reason America’s Cities and Towns Are Broke

  18. Makes Watergate look like a trip to McDonalds. Theft everywhere now !

    http://www.coasttocoastam.com/show/2010/11/14

    • Ian Punnett welcomed investigative reporter Greg Hunter, who detailed how foreclosure mills are creating massive amounts of counterfeit promissory notes, so banks could legally foreclose on homeowners. “When you start drilling down on this, you’re going to find all kinds of malfeasance,” he declared. However, Hunter lamented, unlike the Savings and Loan crisis of the 1980′s which saw about 1,000 people sent to jail, the current financial debacle has yet to yield any indictments, despite being forty times bigger. “Not a single person has been charged criminally,” he marveled, “with what I think is the biggest fraud in all of history.”

      Hunter explained that promissory notes are a critical aspect of the unfolding Forclosuregate. These notes, he said, are supposed to act as proof that the bank has the right to collect on a mortgage. However, Hunter revealed, as the larger banks purchased mortgages in bundles, many of these promissory notes were lost. Likening the notes to physical dollars, Hunter pointed out that they are “financial instruments,” and, thus, cannot be recreated or copied for official use. As such, he cautioned homeowners who are currently paying a mortgage that “you don’t know what they’re going to say at the end of 15, 20, 30 years of you paying.” Along those lines, he shared one troubling tale of a man who paid off his mortgage and was then told that the deed to his home was essentially lost in the mire of the Fannie Mae and Freddie Mac meltdown.

      Looking ahead to the future, Hunter warned about what he called “the Fed’s biggest fear.” He noted that many adjustable rate mortgages will be recast over the next year, resulting in a massive increase in payments for homeowners, peaking in November of 2011. However, the stream of income from the homeowners must continue in order to maintain the economy. Therefore, Hunter theorized that the Fed will take a number of dangerous steps in order to “keep interest rates artificially low until this clears out.” This course of action would result in people staying in their homes and still paying their mortgages, but would also “destroy the dollar while you’re doing it.”

  19. Money for Nothing and Checks for Free – Internatio…
    Money for Nothing and Checks for Free: Recent Developments in U.S. Subprime. Mortgage Markets. Prepared by John Kiff and Paul Mills1. Authorized for …

    http://www.imf.org/external/pubs/ft/wp/2007/wp07188.pdf -

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