To think that the scheme - named for him - of defrauding people has reached a level which can never and will never be reached again.
We have all been hearing and reading about the latest and greatest in foreclosure fraud committed by GMAC (Now Ally Bank), JP Morgan Chase and Bank of America who have voluntarily suspended foreclosure actions in 23 states which require the use of the court system to accomplish a foreclosure (these states are referred to as Judicial Foreclosure States).
A short summary of what this is all about.
A law firm - ICE Legal - in Palm Beach County, Florida discovered in a deposition that an Affidavit attesting to personal knowledge of the mortgage account in foreclosure was fraudulent.
The importance of this Affidavit is that it is a requirement by Florida Statute in order to request a Summary Judgment to foreclosure on a property. It is apparently a requirement in in the other 22 Judicial Foreclosure States as well.
What the attorney from ICE Legal learned in the deposition (information given under oath) was that the person who signed the Affidavit attesting to having had personal knowledge of the account and case - in fact did not. Even more disturbing in his deposition was the admission that he and a team of others literally signed thousands of these Affidavits a month under the direction of the law firm representing GMAC. This admission prompted GMAC to immediately halt all foreclosures in Florida and the other 22 Judicial Foreclosure states.
Within days JP Morgan and Bank of America also admitted to the same fraudulent activity and also suspended all foreclosure action in those 23 states. Today, Wells Fargo also admitted to having done the same but has not as yet suspended forclosures. They are simply looking into the situation.
Make no mistake here folks, this type of activity is pure and simple fraud and by submitting flatulent documents as evidence in a court of law it then becomes fraud on the court as well.
The topic of fraudulent foreclosures by the banks has been my primary focus for the past 3 years when I first began writing about it as a Guest Writer in Flippingfrenzy.com, TheMortgageCornerFORUM and TheForeclosureDetonatorFORUM.
Few people believed me in the past when I said that the banks were committing fraud causing the mortgage meltdown which later turned into the worst financial crisis the world has ever seen - yes, worse then the Great Depression. Few believed me when I said three years ago that the banks are committing fraud and foreclosing illegally in many if not most foreclosures. Few believed me when I said that the banks were committing fraud on the courts providing forged, created or misrepresented documents. And few believed me when I said that the parties acting as Plaintiffs in many of our foreclosures do not have the legal right to do so (this is called Standing) as they do not own the mortgage notes they are foreclosing on.
Of course, over the past three years many of my stories have been substantiated by people like Federal Judge Boyco of Ohio who dismissed 17 foreclosure cases against one bank in one day saying that they lacked Standing - they could not prove ownership of the notes therefore they could not foreclose. Another such person was New York Superior Court Judge Arthur Shack who also denied banks their foreclosures for the same reason of not having Standing.
Other judges in Ohio, New York, Florida and a few other states have as well ruled the same way. In addition, some of these judges found evidence of falsified documents and even sanctioned the law firm for attempting to commit fraud on the court.
What is important here is that this case of Affidavit fraud will open the door to all the other frauds committed by our banks - expecially our Too Big To Fail banks like Goldman Sachs. Goldman is very much involved in much of the early frauds having to do with securitizations I have written about here in the past. .They also own mortgage lending companies that have been and probably still are involved in the most recent evidence of fraud.
Many of the frauds committed by GS and their Wall Street cronies have been written about, talked about and exposed yet little if anything has ever been done. You all know I have been calling for justice on this issue. So far they all have not only been deemed Too Big To Fail (GMAC was included in that if you remember and we own most of that company today) but have seemingly been granted some type of immunity against any prosecution for obvious illegal and fraudulent activities. They seem to have been above the law as well.
Well, this may all finally be coming to an end and justice may yet be served even though I believe it will still be a slow painful process.
To explain all of this further, here is the article I posted yesterday on my sister site - TheForeclsoureDetonator.
Read the Complete Article...click here
Bank Fraud FINALLY In the LimelightThis "robo- signer" fraud is only the tip of the iceberg that ICE Legal (no pun intended) in Royal Palm Beach, Florida (Palm Beach County) discovered during "discovery". His deposition caused GMAC (ALLY Bank) to halt foreclosures in 23 states. This action was then followed by JP Morgan Chase and as of this past
I have not been the first to report on this as I have been busy reading all of the other reports on this topic. Pandora's Box has finally been opened.
Friday, Bank of America. I am sure we will see many other of our major banks follow suit as this practice of submitting fraudulent documents to the courts is wide-spread.
While this news is finally showing how banks are committing fraud in our courts by submitting fraudulent Affidavits attesting to personal knowledge of each foreclosure case and mortgage account, I believe, is only the beginning.
Back Door To Fraud
The banks and their attorneys - commonly called foreclosure mills - have been committing fraud on the court since the beginning of the once called "mortgage meltdown" and the current foreclosure crisis. The fraud was committed when many loans were originated.
Mortgage brokers - who were accused by the big box banks of creating all of these "bad loans" - submitted deals to the banks. It was the job of these banks/lenders to "underwrite" these loans then decide if they would approve them or not. In many cases they approved loans knowing that there were fraudulent documents in the file or knowing that the ability to repay did not exist. In other words, the banks
approved and funded loans they knew were foreclosures in the making. They blamed the brokers when it was their job to make the decision to approve and fund or to deny.
FYI, Fannie and Freddie very much did the same. You see, they created a computer underwriting engine that would automatically underwrite a loan input by any loan originator including the mortgage brokers. They (F & F) frequently tweaked the system so that it would approve more loans. They sent teams of people out into the field to teach originators how to use their automated underwriting (AU) systems, called Desktop Underwriter (DU) for Fannie Mae and Loan Prospector (LP) for Freddie Mac's version. In these "field" workshops they taught us how to manipulate the system to get approvals. They taught us to keep changing the information such as income and assets until the system gave us an approval often not requiring any verification. Once the system gave us the desired approval we were then told to hit the submit button which would give the official approval.
it is time that the people of this country get the justice they so deserve. We can not allow our justice system to be hijacked by the banksters their politician buddies many of whom are their former employees.
Goldman Sachs was given a mere pittance of a fine for just one small illegal activity yet the bigger crimes still go unnoticed and unpunished. I truly believe this is a new beginning for the people and perhaps even a new beginning for this blog. These banksters must learn that they cannot rule us, take from us our Constitutional right of Due Process and trample over us at will for their own personal profit and gain.
For the first time in three years I feel somewhat encouraged.
As I have always said:
"The law is the law for everyone"and as relates to the massive illegal foreclsures,
"Two wrongs don't make a right".You cannot lie and commit fraud in an attempt to correct a problem you created in the first place.