HELL

The subject of mortgages is back in the news thanks to HUFFPO & the Levin Report.

I have taken some time to document the fraud perpetrated upon the county recorders in this country.

Ron Paul and his son Curly Rand have attempted to tell us all that the only purpose of government is to protect property interests.

The Black Panthers spent decades attempting to tell me the same damn thing.

A set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans, four officials briefed on the findings told The Huffington Post.

The five separate investigations were conducted by the Department of Housing and Urban Development’s inspector general and examined Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, the sources said.

The audits accuse the five major lenders of violating the False Claims Act, a Civil War-era law crafted as a weapon against firms that swindle the government. The audits were completed between February and March, the sources said. The internal watchdog office at HUD referred its findings to the Department of Justice, which must now decide whether to file charges.

The federal audits mark the latest fallout from the national foreclosure crisis that followed the end of a long-running housing bubble. Amid reports last year that many large lenders improperly accelerated foreclosure proceedings by failing to amass required paperwork, the federal agencies launched their own probes....

The five giant mortgage servicers, which collectively handle about three of every five home loans, offered during a contentious round of negotiations last Tuesday to pay $5 billion to set up a fund to help distressed borrowers and settle the allegations.

http://www.huffingtonpost.com/2011/05/16/foreclosure-fraud-audit-false-claims-act_n_862686.html

I have posted this article in the news corner of Dagblog.

Dick the Butcher might have wished to do away with all of the lawyers, but damn this is smart stuff!

The attorneys, referred to in the link, signed onto a theory for taking on the mortgage companies that encompassed legislation passed by our Congress 156 years ago. Now this link from HUFFPO covers just one of scores of attempts to call the banking system into question.

But what the hell! Have at em!

I mean this is really good stuff.

Congress has done little, apparently, to stave off a felonious onslaught by the economic pricks who really control this country. And yet, these attorneys found laws so old that most capitalistic pricks forgot about them.

Who'd a guessed?

But here we are.

You will recall that attorneys all over the country began to question documents that were being filed on behalf of the mortgage companies during foreclosure proceedings.

http://www.nolo.com/legal-encyclopedia/false-affidavits-foreclosures-what-robo-34185.html

These challenges arose from the practice of mortgage bundling that led to the financial collapse of 2008.

As hundreds of articles and books have disclosed, the financial companies that hold our nation hostage could no longer trace the property liens that served as backing for their mortgage products.

If these companies had adequately assessed their own product line, they would have seen that most of these mortgage bundles were no better than unsecured loans.

And unsecured loans are worth a lot less than secured loans.

Well, on the street level the companies charged with collections discovered that they were having problems tracing back to the original mortgages on specific properties.

Procedural steps were skipped as individual mortgages were transferred from company to company.

Mortgage assignment documents were never filed with the local county recorders.

So when push came to shove and the homeowner ceased to make payments, 'processing' companies were having a devil of a time attempting to foreclose on the mortgages in order to receive proper title to the real estate.

So these 'processing companies' filed false documents, under oath.

The rationale for this felonious behavior would boil down to this:

Look, who cares who owns the goddamn mortgages, the homeowner was not properly making his mortgage payments anyway. And the most important element of our economic system is that if the peasants do not make payments on their properties, those properties must be confiscated.

Of course us poor peasants are supposed to ignore the fact that the original mortgages were pushed upon an unsuspecting public in the form of preprinted contracts that made no sense to skilled attorneys let alone the prospective homeowner.

Adjustable clauses that made those mortgage bundles so lucrative, contained language that would eventually increase mortgage payments 50% or more within a few months of closing. And when the average citizen's salary only increased 1% over the last decade, some analyst with much less skill than Krugman might have concluded that some people might find it difficult to make their payments after the ADJUSTABILITY CAME INTO PLAY!

The lowly salespeople involved in the day to day vending of these adjustable mortgages received peanuts for their efforts. Meetings called by the employers of these salespeople most probably resembled scenes from Glengarry Glen Ross .

You better produce or you are going to be filling orders for fries in short order!

To sum up, fraudulent mortgages were being perpetrated upon an unsuspecting public by fraudulent salespeople employed by fraudulent companies ultimately enforced by fraudulent companies filing fraudulent documents in fraudulent foreclosure proceedings by fraudulent attorneys.

At the same time these frauds were being perpetrated, our biggest banks were bundling these fraudulent loan documents and fraudulently selling the bundles to unsuspecting purchasers like pension funds (pension funds that should have known better) and pocketing billions of dollars by fraudulently selling the packages short.

And what about our courts? You know, those centers for truth, justice and the American Way?

Well, foreclosure actions were becoming so prevalent that judges could hardly be expected to review each and every document and attempt to piece together sworn testimony with those documents. There just were too many damn foreclosure actions to keep up. See Here and here and here

Now, as in our criminal courts, plea bargaining was put into place. 82% or more of all criminal actions end with the defendant pleading guilty through blackmail of a sort. I mean you plead guilty now and you will be sentenced to a term of 6-10 years instead of 10-15.

So representatives (paralegals and such) were sent to meet with the individual homeowners and asked to 'sign off' on the foreclosure and were promised that they could keep their couches. Along the way homeowners were also lied to with regard to their property rights by the lowliest of the low representatives.

But even with the releases signed by the homeowners, a mortgage company must 'prove-up' its lien. A chain of title must be established by law.

I mean if you cannot prove ownership to property or an ownership of a lien to property, you are not entitled to title of any kind.

And I think that Ron Paul along with his son Curly Rand would have to admit that title to property is the single most important facet of a capitalistic system!

That is a basic capitalistic tenet.

Otherwise, how can you prove how important you are?

And you would think that there would already be enough laws on the books to put all those bastards responsible for these multitudes of frauds in prison for eternity.

But, in fact, three, four and five years after the fact, clever attorneys had to reach back 150 years in order to come up with a theory for prosecuting these felons.

What is interesting about this article from HUFFPO and this report is that there were other times when Post Civil War Legislation came to the fore in the 20^th century.

Many of our civil rights cases arose from what we learned in law school as 1981,1982,1983 laws.

http://finduslaw.com/civil_rights_act_of_1866_civil_rights_act_of_1871_cra_42_u_s_code_21_1981_1981a_1983_1988

Take a look at this legislation sometime!

You will not be disappointed.

All of our 1964/1965 Civil Rights Legislation comes to us as a direct result of lawsuits filed under Federal laws passed in 1866.

Some extremely smart attorneys in the 50's & 60's rediscovered this old legislation in the face of Plessy v. Ferguson and changed American History. http://en.wikipedia.org/wiki/Plessy_v_Ferguson

The Supreme Court in Plessy decided that separate but equal would be all right; blacks could have their own schools and their own drinking fountains and their own separate society.

Sometime in the 1950's attorneys began to attack Plessy v. Ferguson and it was eventually over turned.

So I am amazed that attorneys in our new millennium found other post civil war legislation to prosecute the bastards who stole our republic.    

http://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511