Investors Holding Voting Rights In More than 2,600 MBS Deals Prepare To Fight Back Against Servicers

Tyler Durden's picture Submitted by Tyler Durden on 10/27/2010 16:12 -0500

Bank of AmericaCountrywide

It just went from bad to worse for mortgage servicers: Bloomberg reports that investors who collectively hold over $500 billion in MBS, are huddling and preparing to fire back at the servicers. Mortgage-bond investors represented by Dallas lawyer Talcott Franklin will send letters to securities trustees complaining that they shouldn’t bear the costs of loan servicers’ so-called robo-signing. The reason for the ire? It is the noteholders who ended up having to pay legal fees associated with discoveries of rampant fraud: “The investors, who Franklin has said own more than $500 billion of the securities, are “pretty disturbed” that mortgage-bond trusts are being forced to pay penalties. Judges are forcing the trusts to cover homeowners’ attorney fees when servicer misdeeds are discovered. “Look who got sanctioned,” Franklin said today at a conference in New York organized by law firm Grais & Ellsworth LLP. “It wasn’t the servicer, it was the holder of the note.” One wonders just how large this number is when summed across the hundreds of assorted holders, and what happens when say a Bank of America is stuck with the invoice.

And hundreds it was:

New York-based lawyer David Grais hosted the conference, which about 100 people attended and about 150 were expected to listen to via a webcast. He represented securities firm Greenwich Financial Services LLC in a lawsuit that stemmed from Bank of America’s 2008 agreement with a group of attorneys general to rework debt to settle charges of fraudulent lending by Countrywide Financial, which the bank bought that year.

While Grais lost the case this month as the court ruled Greenwich Financial didn’t own enough of the bonds to pursue it, investors may have more luck heading off a new settlement by mortgage companies that harms them, he said today.

Just so it is clear, those 100-150 people who are about to launch lawsuits.

And here is the even worse part:

Mortgage servicers have been reworking investor-owned loans while not seeking amendments on debts they hold themselves, a misstep investors can use to bypass trustees or force them to act, Bill Frey, the head of Greenwich Financial, said at the conference. The four largest U.S. banks, which service a majority of U.S. mortgages, own more than $400 billion of home-equity debt, Goodman said.

“We found servicer defaults in 100 percent of the trusts,” Frey said.

Franklin said the group of investors coordinating through his firm’s RMBS Investor Clearing House owns more than 25 percent of so-called voting rights for about 2,600 mortgage securitizations, and more than 50 percent for about 1,150 deals.

That’s a lot of deals that are about to be put back. Does JPM wish to reconsider its putback charge estimate?

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by Tortfeasor
on Wed, 10/27/2010 – 16:18
#681579

Robo-signers are chump change.  Wait till the big atty firms get on board with the realization that almost none of the old crappy loans were properly assigned to the Trusts.  The investors will sue to get the crappy loans out of the pool, demand that they be properly replaced with good loans, and the whole thing comes crashing down.

Login or register to post comments by idea_hamster
on Wed, 10/27/2010 – 16:24
#681594

“The investors will sue to get the crappy loans … replaced with good loans”

What are these “good loans” of which you speak, sir? 

 

 

 

Login or register to post comments by DaveyJones
on Wed, 10/27/2010 – 16:33
#681614

the other side of Pluto (and I don’t mean dog poop)

Login or register to post comments by Tortfeasor
on Wed, 10/27/2010 – 16:54
#681664

Good loans would be any loan available for purchase on the market, which is current and fits the parameters of the specific trust.  

“Good” in this case would mean “not in default” at the very least.

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 17:14
#681723

–Amelia Granger
Investors should take a stance against fraudulent servicing procedures such as robo-signing, lawyers speaking at a conference in New York said today. Speakers urged investors to connect by joining a clearinghouse assembled by Dallas, Texas-based lawyer Talcott Franklin. Franklin said the first step he would take as the legal counsel of the clearinghouse would be to send a letter to trustees on soured deals making it clear no investor had wanted any representative of trusts to engage in “illegal or fraudulent” servicing procedures, such as robo-signing.
“We can do something here,” Franklin said. He said the clearinghouse already had enough investor members to represent the necessary 25% stake .

 

http://www.totalsecuritization.com/Article/2700573/Investors_Band_Together_Against_Illegal_Servicing.html

Login or register to post comments by sushi
on Wed, 10/27/2010 – 18:31
#681874

Does not any change in the holdings of the trust invalidate the tax status of the REMIC?

Login or register to post comments by Dburn
on Wed, 10/27/2010 – 16:19
#681582

It looks like Bernanke’s 100s of Billions on QE2 will be spent on one investor group at a time bailing the banks out of that thicket as congress comes up with new bill legalizing robo-signing and document creation. Bank stocks should have been cut in half by now.

I guess the question we have to ask is when did congress or the executive branch do anything that was detrimental to the bank’s interests? The answer should tell us what’s coming right after the elections.

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 16:20
#681583

Heh. The firestorm has begun. Burn baby burn.

Login or register to post comments by SWRichmond
on Wed, 10/27/2010 – 19:31
#682006

Game Over

Login or register to post comments by Popo
on Wed, 10/27/2010 – 20:29
#682137

It *should* be game over, but take one look at bank stocks and it’s pretty clear the market expects the banks to get bailed out again.

Login or register to post comments by homersimpson
on Wed, 10/27/2010 – 16:20
#681584

What was that sound? Was that tens of thousands of lawyers trying to intern at firms specializing in foreclosures?

Login or register to post comments by DaveyJones
on Wed, 10/27/2010 – 16:35
#681620

and they thought collections and bankruptcy were the only games left in town

Login or register to post comments by midtowng
on Wed, 10/27/2010 – 18:05
#681810

Well its not like the government regulators are interested in seeing how deep the fraud runs. So we’ll have to do it the most expensive and wasteful way – by having the lawyers find out the truth.

Login or register to post comments by Fred Hayek
on Wed, 10/27/2010 – 18:43
#681904

Well said.

There are costs to abdication of responsibility.

Login or register to post comments by Bartanist
on Wed, 10/27/2010 – 20:42
#682159

Good thing we are only paying Mary Shapiro $8 million/yr to be blind, deaf and stupid.

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 16:25
#681595

And the “call on the Street” tonight…is “buy financials.” 

“Tremendous opportunity.”

“JP Morgan Sued for Manipulation of Comex Silver Market”

“Financials will lead the market higher”

Am I losing my mind?  Anyone, Bueller….Bueller….

 

Login or register to post comments by A Man without Q…
on Wed, 10/27/2010 – 16:40
#681636

No, you’re not losing your mind.  I remember back in summer 2008 when it was widely known at the banks that Lehman was toast.  JP Morgan rallied from around $32 in July to touch $50 at the end of September, but the risk in the derivative portfolio and off balance sheet vehicles was not known.  Honestly, BAC being up 2% today and highest riser in the Dow is simply the banks saying a big fuck you to the market, the banks think they will decide when this is over and want to show the world that they are still in charge. 

In reality, the calls Dimon is taking in his office will be with chief risk officer, head of legal, Treasury officials, trying to limit the damage and agreeing on the timing for letting this go.

I have said this before, but this is the biggest banking screw up since the 1920s, it dwarfs Lehman or the S&L crisis.  Of course they will be helped, but without some help, the whol ething goes, however, it is going to cost the banks a huge amount and they know it.

To my mind, it is one of the key reasons the Fed is scaling back on QE2 – they need to save their powder as we don’t know what sort of rescue package will be needed to cover this yet. 

Login or register to post comments by Herd Redirectio…
on Wed, 10/27/2010 – 16:50
#681656

They’re also holding back because until the elections are over everyone is under orders to pretend everything is honky dory.  As usual, as SOON as the elections are over, all kinds of sh*t will be revealed, esp. how we the taxpayers don’t want to, but HAVE to, bail out the banks.  Pretty please?  We promise its the last time.

Any way, check out PsychoNews, we just did Feature #4 on Nominate-A-Psycho, featuring none other than Zimbabwe Ben Bernanke.

http://psychonews.site90.net

PsychoNews, exposing the Oligarchy one psycho at a time.

Login or register to post comments by RockyRacoon
on Wed, 10/27/2010 – 17:00
#681678

Better speed up those bank bonus payments so as to avoid the bailout rush.

There will be hell to pay if billions in bonuses are paid out AFTER a bailout.

No, wait.  That won’t happen without some buildings burning in NYC.

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:15
#681970

My prediction is massive state layoffs after the elections…budgets are beyond broken.

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 16:51
#681658

And this just in…Wells Fargo now confesses to errors found in documents.  The supposed squeaky clean Wells.

If Ben Bails them out again, there will be blood in the streets of the US.  Too many folk on this, following, reading, researching the Fed.  The Fed will perish with them if that is what QE2 turns out to be all about [oh, and I have no doubt you are correct].

Just pissed…and spinning….

Login or register to post comments by doolittlegeorge
on Wed, 10/27/2010 – 18:14
#681829

we like banks that say “the big phuck you” to Mr. Market.  JP as I understand it “had a deal” since they were in effect being forced to take over these banks by the government in order to “keep up appearances.”  Good luck on that score. BofA and Wells are a whole different enchilada…but the bottom line is state AG’s are really, really, REALLY looking for a deal and that means keeping “it” out of the courts.  My belief is that the only way this issue in a legal sense is via Justice Dept and “Housing Discrimination.”  “All roads lead to DC” on this issue.  Period.

Login or register to post comments by Cheesy Bastard
on Wed, 10/27/2010 – 16:43
#681642

Who said that?  Goldman Sachs?

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 16:48
#681650

No…numerous talking heads in the MSM.

 

Login or register to post comments by rubearish10
on Wed, 10/27/2010 – 16:25
#681598

This feels like we’re wishing and hoping this calamity “takes hold” and redemption ensues, whereas, in reality, we also know the Banksters and their Pimps (Congress) will pull an outrageous “ole” and the exhaustive fight continues. This is sad.

Login or register to post comments by DaveyJones
on Wed, 10/27/2010 – 16:39
#681627

I thought the bankers were the pimps and the congress was the whore? I guess I should see how they’re dressed

Login or register to post comments by MachoMan
on Wed, 10/27/2010 – 16:53
#681660

congress wears a feather boa, aquarium platform shoes, gold cane, and has a feather in its top hat.

the banks wear their underpants, cheap lipstick and perfume, and haven’t a tooth left in their heads…  and worst of all, try and convince us they’re not prostitutes.

Login or register to post comments by doolittlegeorge
on Wed, 10/27/2010 – 18:15
#681833

no, no, no.  they’re trying to convince us they’re GOOD prostitutes. (They may very well be…)

Login or register to post comments by apberusdisvet
on Wed, 10/27/2010 – 22:01
#682291

I heard Barney goes both ways.

Login or register to post comments by midtowng
on Wed, 10/27/2010 – 18:08
#681816

I hope it happens because lawsuits appear to be the only way that the epidemic of fraud will ever be revealed. The regulators and politicians sure aren’t interested in letting the truth see the light of day.

Login or register to post comments by bob_dabolina
on Wed, 10/27/2010 – 16:25
#681599

This is easily good for +30 e/s points.

Login or register to post comments by homersimpson
on Wed, 10/27/2010 – 16:25
#681600

“We found servicer defaults in 100 percent of the trusts,” Frey said.

I think the quote got misunderstood. It probably was “We trust 100 percent of the servicers will default.”

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:17
#681973

Score one for Homer.

Login or register to post comments by Rogerwilco
on Wed, 10/27/2010 – 16:29
#681607

This too will be legislated away. Massive post-election nationalization fix for the TBTF banks, Fannie, Freddie, et al. Blanket amnesty granted for the guilty, and punishment meeted out for Joe Blow via a new national sales tax, because “it’s time to act like adults now”.

Login or register to post comments by RichardENixon
on Wed, 10/27/2010 – 17:26
#681749

Yes, there is massive belt tightening in Joe Sixpack’s future.

Login or register to post comments by Things that go bump
on Wed, 10/27/2010 – 19:07
#681955

Black market.  

Login or register to post comments by confimationbias
on Wed, 10/27/2010 – 16:30
#681609

Tyler,

Some day in the future, distant or otherwise, after all of what we have been speaking of here for the last couple of years comes to pass, how ’bout a big ole party where we all get together and meet everybody who has participated in this forum?

What say ye?

Login or register to post comments by Cheesy Bastard
on Wed, 10/27/2010 – 16:45
#681646

I think we will be in our basements guarding whats left of our freeze dried yams.

Login or register to post comments by Ragnarok
on Wed, 10/27/2010 – 17:00
#681657

That’s just it, don’t you see the brilliance of his suggestion?  You have freeze dried yams, I’ve got freeze dried peas and some turkey jerky, some others will have some instant potatoes and gravy mix.  I think you see where this is going…

 

Happy Post Apocalyptic Thanksgiving Everyone!

Login or register to post comments by RockyRacoon
on Wed, 10/27/2010 – 17:03
#681687

It’s already been arranged to happen when gold reaches $10K.

Login or register to post comments by Cheesy Bastard
on Wed, 10/27/2010 – 17:06
#681696

Ok, but next year I’ll have do it with Cheesy Bitch’s side of the family.  It’s only fair.

Login or register to post comments by Duuude
on Wed, 10/27/2010 – 17:12
#681715

 

 

Bellysnort !!!

 

 

Login or register to post comments by Silverhog
on Wed, 10/27/2010 – 16:33
#681615

I’m thinking at this point there is little if anything that will prevent a economic hurricane landing here sometime in spring 2011. The few green shoots this Fall are about to get scorched.  

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 16:39
#681619

“Canary in the coal mine” ….????

The debate over whether — and if so, how — mortgage issues in the States will affect the secondary market for private-label residential MBS has raged for some time now. These issues include (for those who can’t keep up) foreclosure moratoriums and mortgage repurchases, or putbacks, on misrepresented or faulty loans.

From Total Securitization:

A drastic drop in trading of residential mortgage-backed securities has continued for a fourth consecutive day, according to traders. Last week saw almost $2 billion in trades on Tuesday, but by Friday volume was down to only $300 million.

The drop comes as foreclosure moratoriums are beginning to hit the non-agency RMBS universe. RMBS bonds, such as prepayment option ARMs and Alt-As that get most of their cashflows from involuntary prepayments, saw an increase in the bid/ask spread for bonds, a trader speaking with TS explained. He also noted Do Not Trade orders had increased from 20% to 50% by the end of the week.

The slowdown was holding steady as of Tuesday afternoon, with trading volume hovering in the same $200-300 million range as Monday. Remittance reports, the monthly accounts of deal performance for RMBS, were released Monday. Another trader attributed market players combing through these reports in an effort to reevaluate strategy as undermining trading volume. The trader hadn’t, however, seen any major surprises in the reports.

So that’s frozen in the RMBS market — though no one really seems to know why. Is it the putbacks? Foreclosure issues? General confusion? Or, God forbid — concern?

Ron D’Vari, CEO and co-founder of asset management firm New Oak Capital in the States, had a rather pungent take. As he told FT Alphaville:

We’re testing the waters of the law … And that is a little bit of a shock to some of our younger mortgage traders. They just assumed that everything behind the scenes was like the steak that came to the table — they thought it was already quality-controlled.

Ah — perhaps all the MBS traders are out with food poisoning.

 

http://ftalphaville.ft.com/blog/2010/10/27/385056/mbs-trading-takes-a-ti…

Login or register to post comments by tony bonn
on Wed, 10/27/2010 – 16:36
#681626

i’d like to see jail terms to go along with those lawsuits.

Login or register to post comments by Bob
on Wed, 10/27/2010 – 16:50
#681653

Rule of Law protects everybody–until it no longer rules. 

Login or register to post comments by gloomboomdoom
on Wed, 10/27/2010 – 16:39
#681630

Americans are still deeply in debt; so is our government. So, they have to inflate. They have no choice. Retirees will be hurt, but they are living off the workers in a sense through social security, and which is unfair burden on younger generations. That transfer of wealth needs to happen, one way or another.

Login or register to post comments by MachoMan
on Wed, 10/27/2010 – 16:58
#681671

The transfer of wealth is largely over.  It’s called the wealth gap.  You think the game is to be played in the future?  We’re down 64-3 in the fourth quarter with about 3 minutes left on the clock and no timeouts. 

Needless to say, it doesn’t matter whether deflation or inflation hits at this juncture.

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:21
#681985

Yup. Bernanke 100% wrong on everything so far I say he couldn’t inflate a tire, although he’s trying like an caged gorilla bending his bars.

I say we escape both inflation and deflation with a massive reset.

Login or register to post comments by LiquidBrick
on Wed, 10/27/2010 – 20:57
#682186

Yep. Game over. Need to start a new game called “Barter Bitches”

Login or register to post comments by LiquidBrick
on Wed, 10/27/2010 – 20:57
#682187

Yep. Game over. Need to start a new game called “Barter Bitches”

Login or register to post comments by Robslob
on Wed, 10/27/2010 – 17:38
#681765

I don’t know if I WOULD call it unfair since many of the old timers you speak of have been contributing to Social Security for 40 years that they are a “burden” for the younger generation?
Grab a cup of get real and call me in the morning…
I am sure most of them will not collect near what they contributed…I am certain my 80 yr old father and 76 yr old mother are getting screwed simply because multiple congresses couldn’t keep the fucking hands out of the cookie jar…

Login or register to post comments by cossack55
on Wed, 10/27/2010 – 17:59
#681798

The sad part is that at their age it indicates they “contributed” (or else) real dollars and now they are receiving FRNs.  Too bad they were not allowed to use the same dollars to purchase AU, but then, that wasn’t legal till 1974.  Welcome to Amerika.

Login or register to post comments by Capitalist Sooner
on Wed, 10/27/2010 – 18:08
#681818

All of those old timers who are about to get pounded by hyperinflation are the same people that elected decades of political whores, who created this mess with their pimps the bankers.  I feel sorry for them, but I am more concerned for my children.  When the time comes, I’ll move Mom, Dad, and my old Uncle into my garage or something.  Good thing I have a nice bonus room in my McMansion.  I will, however, remind them over the dinner I will pay for each night how they sold the country out from under all of us.  Hope it helps their digestion.

Login or register to post comments by doolittlegeorge
on Wed, 10/27/2010 – 18:18
#681843

I kind of like where you’re going with this.  Like say “enough foreplay already!  give me those higher prices you woderfully incompetent fiscal hookers!”

Login or register to post comments by metastar
on Wed, 10/27/2010 – 16:41
#681639

Robo Put Back Baby!

I’l be back!

Login or register to post comments by Cammy Le Flage
on Wed, 10/27/2010 – 16:45
#681645

cannibalism has begun.

Login or register to post comments by treemagnet
on Wed, 10/27/2010 – 16:48
#681651

This baby’s got legs.  Anybody who thinks this is a headline today, gone tomorrow should just shutup and go all-in and buy out of the money calls on AAPL.

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 16:57
#681669

Well…JP Morgan has not budged…not even with the announcement of the lawsuit put to them on the COMEX issue.

I hope your right…for the sake of the nation…which I do not think will survive without getting rid of the JP Morgans of the world.  But the market…it is so f’n rigged and stupid….

Login or register to post comments by treemagnet
on Wed, 10/27/2010 – 17:02
#681683

I think this is what QE2 is gonna be – from an extra to a status quo.  But yeah, for now, its still like the issue doesn’t exist to most.  But you sure gotta think the suits have circled the wagons, lawyered up, and begun mapping out who they’ll rat out for the plea deal.

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 17:16
#681731

You would think…and yet the price action is still not there.  We are ultimately talking about insolvency, perp walks, and the systemic defunding of these crooked banks by Average Joe’s everywhere who simply demand clean title.

And yet JP Morgan…strong today.

Login or register to post comments by goldmiddelfinger
on Wed, 10/27/2010 – 16:49
#681654

Login or register to post comments by moofph
on Wed, 10/27/2010 – 16:55
#681666

…am i the only one that knows this?

…in case you haven’t heard…reuters is reporting today 10/27/10 that a lawsuit was filed in the u.s. district court in manhattan by Brian Beatty (a comex investor) charging JPM and HSBC of manipulation after cftc chilton statement yesterday…enjoy the show…and thank you sincerely brian beatty.

Login or register to post comments by Ragnarok
on Wed, 10/27/2010 – 16:58
#681672

Provide a link, then go, “Hey TD check this out.”

Login or register to post comments by moofph
on Wed, 10/27/2010 – 17:01
#681681

…thanks ragnarok.

“hey td check this out”

http://www.reuters.com/article/idAFN2725907120101027?rpc=44

Login or register to post comments by wintermute
on Wed, 10/27/2010 – 16:57
#681670

All 2,600 MBS should be put-back to the banks as they are empty. No mortgage notes were properly transferred to the MBS trusts – because MERS has kept the lien for itself. This is illegal.

Login or register to post comments by Capitalist Sooner
on Wed, 10/27/2010 – 18:22
#681848

It’s time for the public, in mass, to start investigating who holds their note, and if no actual note exists, sue.  The lender has harmed the borrower by clouding the title to the property, and if the lender cannot correct the title – at their expense – the court must quiet the title and void the debt.

Additionally, the borrowing public needs to sue for the lender/servicer to pay the recording fees that have not been paid, since the county to attatch a lien to the property at a future date to recover these fees that are owed.

I would like to see this happen on an individual basis, not a class action one.  A thousand pricks of a needle instead of one big knife, so to speak.

Login or register to post comments by nwskii
on Wed, 10/27/2010 – 17:00
#681680

Advice please

I have an old CountryWide Loan from 2008 that is now with B of A @ 6.75% It is in the MERS system. It says BofA Servicer and Fannie is the investor. B OF A wants me to do a quick refi, no appraisal just sign here and your rate magically drops to 4%. Seem kinda odd????

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 17:06
#681695

They are trying to get the paper legit. Tell them you want 2% fixed or you want to see the note, capeesh …

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 17:13
#681722

Yep…fresh signature, fresh loan doc, fresh clean title…and that loan does not get away from them.  It is happening all over the place as the very best evidence that this bankster crime wave is REAL!

But hey, Najarian thinks the banks will bring the market home tomorrow….so what do I know?

Login or register to post comments by nwskii
on Wed, 10/27/2010 – 17:27
#681750

just talked to B OF A they said they are mailing out a copy of my note and deed of trust. I asked who had the wet ink signature and she said she is sending everything that they have?? WTF does that mean?

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 17:35
#681760

Stay on the board. RockyRacoon or someone will help I would want to see all the original documents.

Its got to scare the shit out of them that you are asking all this …I would be asking all types of questions…

Login or register to post comments by RockyRacoon
on Wed, 10/27/2010 – 20:55
#682182

You’d have to go to some office to view the original wet documents (note) since they aren’t going to send them to you for any reason — until marked “satisfied” and stamped with the filing clerk’s dated seal.

Login or register to post comments by RockyRacoon
on Wed, 10/27/2010 – 17:10
#681710

Ask for the friggin’ moon… as well as proof that they hold good paper.

Be sure your new note is a non-recourse note!

Login or register to post comments by Village Idiot
on Wed, 10/27/2010 – 18:58
#681941

Just a suggestion –

Have your friendly escrow (escrow states) office submit a demand for payoff. Once your lender receives a demand they know that they have to get you what you want, or what they have, in a timely fashion.

Login or register to post comments by Bob
on Wed, 10/27/2010 – 17:21
#681741

Make them lower the frickin’ principle!  Jeesh. 

Login or register to post comments by the rookie cynic
on Wed, 10/27/2010 – 17:26
#681751

Be wary.

This ZH article and following comments would be a good place to start.

http://www.zerohedge.com/article/gonzalo-lira-mulligan-mortgages%E2%80%9…

Login or register to post comments by rmsnickers
on Wed, 10/27/2010 – 17:33
#681758

So what does it mean if it shows up in the MERS system?  The details on mine are the same as yours, bac services with fannie investor.  Do all loans show in MERS or just ones that are possibly screwed up?

Login or register to post comments by Diogenes
on Wed, 10/27/2010 – 19:19
#681976

Skip a couple of payments and have a friend offer to do a “short sale”. I have heard of a big bank settling for $85000 on a $260000 note. I don’t know how far you can push this. Let your conscience be your guide. (sarkylert)

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:45
#682044

If the bank has title issues, you owe them nothing…so 85K is a terrible deal.

Login or register to post comments by Bob
on Wed, 10/27/2010 – 17:17
#681734

I’d be thinking of jumping before I were publicly humilated and tried for criminal offenses if I were them: 

 

Login or register to post comments by Lucius Corneliu…
on Wed, 10/27/2010 – 17:36
#681761

There is no honor among theives … which one is the good, the bad and the ugly?  Is this a crazy spectacle or what!?!?

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 17:41
#681773

It is just that…a crazy spectacle.  And I posted before about price action…but that is incorrect.  Price action in this market makes no sense.

What is crazy is how certain elements of the market are not even acknowledging this whole mess.  Amazing.  We are clearly witnessing the death of NBC.  And that is amazing as Comcast just cannot get that deal closed fast enough.  There will be nothing left to close at this rate…and as they show that they are not a news reporting agency.

The ripples..they travel out so far!

Login or register to post comments by Bob
on Wed, 10/27/2010 – 17:49
#681785

It is amazing.  I passed over Cramer during a bout of channel surfing and, stopping for a few minutes, could hardly believe the way he was completely disregarding the growing throes  of the banks. 

It was like watching crazyvision. 

Login or register to post comments by cossack55
on Wed, 10/27/2010 – 18:03
#681804

If you were watching Cramer, its more like “dumbassvision”.

Login or register to post comments by Bob
on Wed, 10/27/2010 – 19:55
#682063

Actually, he was giving a hard sell on an ES pullback entirely on the grounds of the coming election and implications for business, spinning it as a “good thing . . . you can’t have endless up days forever without a pullback now and then.”  It gave me the creeps, I could only take a couple minutes. 

Login or register to post comments by tom a taxpayer
on Wed, 10/27/2010 – 17:57
#681795

Food fight! Call the Cafeteria Monitor. Alert the Rector of Discipline.

Login or register to post comments by Miss Expectations
on Wed, 10/27/2010 – 18:00
#681800

I Saw What You Did…And I Know Who You Are

Here’s the movie clip to go along with this shit show:

Login or register to post comments by single digit
on Wed, 10/27/2010 – 18:01
#681803

Checked my paperwork at the county today.  Original Lender is posted and they filed bankruptcy in 2009 and no longer in business.  Now I send our payment to CitiMortgage but they aren’t listed on the deed.  Thoughts?

Login or register to post comments by tip e. canoe
on Wed, 10/27/2010 – 18:09
#681817

for those of you who may think BofA will be thrown under a bus:

http://pajamasmedia.com/blog/did-the-dnc-get-an-illegal-campaign-loan-fr…

“Shortly after Labor Day, as polls continued to sink, the Democratic National Committee (DNC) realized it needed a cash infusion for the upcoming midterm elections. Its chairman, former Virginia Governor Tim Kaine, turned to the Bank of America to secure a $15 million revolving credit line. Then, in the middle of this month, the Democratic Congressional Campaign Committee (DCCC) got another loan from BofA for an additional $17 million.

What was their collateral? It turns out, not much.  The DNC claims their collateral was an intangible piece of property — its donor mailing list.”

Login or register to post comments by Fred Hayek
on Wed, 10/27/2010 – 18:58
#681939

And . . these are the guys who were bankrolled by the tbtf banks in 2008 and who are making (intentionally)vague dumb claims about the repubs’ financing.  I can’t imagine what a soul destroying endeavor it must be to be working in politics.

Login or register to post comments by Everybodys All …
on Wed, 10/27/2010 – 18:30
#681870

I can’t believe the story of the day Bill Gross of Pimco calling out the Federal Reserve and Treasury as a “Ponzie Scheme” hasn’t just sent the market into a selling frenzie. Does fraud matter anymore?

Login or register to post comments by Cdad
on Wed, 10/27/2010 – 18:39
#681896

That seem to be the predominant question within this thread.  And the predominant answer seems to be that it is amazing how fraud does not matter anymore if you are a bankster or the Chairman of the Federal Reserve Bank.

Good luck out there…

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:47
#682048

Most people are out of the market already. Only Big Ben is buying to keep prices up.

Login or register to post comments by Charles Mackay
on Wed, 10/27/2010 – 18:40
#681898

The Franklin group thinks this is bad.  Wait until they realize the mortgages the MBS pools hold without a clear claim to the underlying note become non-qualified investments for tax purposes – that is earnings from these types of uncollaterized mortgages is subject to additional tax.

So if you think investors are unhappy now, wait they see their investment eaten up by extra taxes.

 

Login or register to post comments by LeBalance
on Wed, 10/27/2010 – 19:08
#681957

There should be no mock or tongue in cheek celebration.  That would be like Bugs Bunny sitting in the pot asking “Hey, Doc!  Something smells really good!  What’s (chomp chomp chomp on the everpresent carrot) for dinner?”

A rhetorical question I am sure.

Login or register to post comments by tom
on Wed, 10/27/2010 – 19:14
#681968

What I don’t understand is what has taken these guys so long. What kind of lazy-ass vulture investor buys a distressed asset, the value of which is largely dependent on enforcing contracts (ie by sacking the servicer banks that obviously rigged the terms of the deals in their own favor, as they wrote them), and then doesn’t get organized enough to meet the 25% threshhold to start the sacking process until more than two years after the crisis?

 

Login or register to post comments by Withdrawn Sanction
on Wed, 10/27/2010 – 19:48
#682023

 

I share the often-repeated frustration about widespread fraud seeming not to matter.  And it’s true:  It doesn’t matter…until it does….and it will, soon.  Like the rain, it takes a while for the ground to saturate.  Once it does, then that small drip of a leak in your basement is quickly joined by several other stronger leaks seemingly all at once as the hydrostatic pressure overwhelms the wall and finds lots of release points.  Can you/need you predict the quantity of water necessary or the timing when the wall will be breached?  No, you only need know THAT it will happen, and soon the more rain that falls into the soil.  In my view, we are at most a few weeks away from the whole thing letting go….finding those weak release points in Mr Ponzi’s wall. 

To mix in another simile, like the roller coaster as clicks up the chain jog to the top of the first hill, you know what’s coming and yet the drop when it actually occurs is still _______ (a thrill, nauseating, stomach churning, pick your own sensation).  I was short the market in the fall of 2008 and yet I still remember the feeling in the pit of my stomach when the market went over the cliff after Congress didn’t pass TARP the first time through:  OMFG, here we go. 

So, even when you’re prepared and you know what’s coming, it’s still going to be a scary ride when it happens….soon.

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 19:48
#682053

In my view, we are at most a few weeks away from the whole thing letting go…

That’s what I’m feeling to. It will be a November to remember.

Login or register to post comments by SWRichmond
on Wed, 10/27/2010 – 19:48
#682050

Hey, Wells: Fuck You.

Login or register to post comments by Spalding_Smailes
on Wed, 10/27/2010 – 20:02
#682079

 

Wells Fargo & Co., conceding that some foreclosure affidavits “did not strictly adhere to the required procedures,” said it will file supplemental statements to courts in about 55,000 proceedings.

The bank, which has proceeded with home seizures while rivals including Bank of America Corp. and JPMorgan Chase & Co. delayed theirs, said today in a statement that it found some lapses during a review of its processes. The bank will begin filings in 23 states immediately and aims to complete them by mid-November, subject to local laws, according to the statement.

http://www.bloomberg.com/news/2010-10-27/wells-fargo-finds-foreclosure-l…

Login or register to post comments by Charles Mackay
on Wed, 10/27/2010 – 21:16
#682213

So they made a few, er hundreds, er a lot, um, thousands of mistakes?

 

Who is going to notice 55,000 mistakes, probably on every single open foreclosure?  🙂

 

 

Login or register to post comments by JLee2027
on Wed, 10/27/2010 – 21:28
#682236

One would think 55,000 corrections would not be Robo-corrections and would take years to complete, not weeks.

Login or register to post comments by Dburn
on Wed, 10/27/2010 – 21:49
#682272

I keep hearing November when all if this will be “fixed” by various banks. “Just a few hundred thousand errors , it will all be ok by November ( wonder how many times Buffett has called DC) . That’s when the bill comes out “Anything the banks, it’s employees, surrogate, contractors , suppliers, attorneys and their dogs do is legal. Yes ANYTHING”

Bill filed under: FU-USA-D-50,000-BTCZ

 

Login or register to post comments by snowball777
on Wed, 10/27/2010 – 22:03
#682299

Any jackasses that went to the MBS well that many times get ZERO sympathy from me; file under “chump”. Sure, I think the servicing houses and banks should take the hit for their own mistakes, but these whiny twits aren’t anything but enablers for thieves who happened to get “too greedy”.

Boo fuckin’ hoo, bitchez.

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