AP Exclusive: Mortgage 'robo-signing' goes on

[cory777]

Source: Associated Press

Mortgage industry employees are still signing documents they haven't read and using fake signatures more than eight months after big banks and mortgage companies promised to stop the illegal practices that led to a nationwide halt of home foreclosures.

County officials in at least three states say they have received thousands of mortgage documents with questionable signatures since last fall. Lenders say they are working with regulators to fix the problem but cannot explain why the practice, known collectively as "robo-signing," has continued.

Last fall, the nation's largest banks and mortgage lenders, including JPMorgan Chase, Wells Fargo, Bank of America and an arm of Goldman Sachs, suspended foreclosures while they investigated how corners were cut to keep pace with the crush of foreclosure paperwork.

Critics say the new findings point to a systemic problem with the paperwork involved in home mortgages and titles. And they say it shows that banks and mortgage processors haven't acted aggressively enough to put an end to widespread document fraud in the mortgage industry.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5jI_EF7qz7vNyWCmFzMtkz_Sd4Kzw?docId=43fce0b102784f29b024eec0696d3b4d

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Uncensored Activist News http://activistnews.blogspot.com/

[truth2power]

1. And where is Eric Holder? n/t

[girl gone mad]

2. Arresting cancer patients?

[aquart]

3. Why shouldn't it? THERE IS NO PENALTY.

Thanks, President Obama. Another area where you threw away your leverage.

[AndyTiedye]

4. What Leverage? He Never Had any Leverage Over the Republicans

Murdoch controls them all. :grr:

[aquart]

5. The Chamber of Commerce does not want default.

Neither does Wall Street no matter how much they have in hedge funds.

That's huge leverage.

[ms.smiler]

6. The problems are much worse than some robo-signers.

A securitized mortgage is actually a sophisticated Wall Street scheme to collect multiple times upon the same debt.

The banks constructed mortgage backed securities that weren't legal securities and sold them to investors including pension funds while collecting fees and commissions. The banks got that investment money and loaned some of it to home buyers on Main Street who were most often sold fraud filled so called "mortgages."

The MBS the banks constructed were designed to fail which is why the banks purchased Credit Default Swaps and other insurance awaiting that failure. Sure enough, the time came when the MBS market blew up and the banks collected their Swaps and sold off the supposed securities to the buyers of last resort – the U.S. government and the Federal Reserve.

So the banks got the investors’ money, including pension funds, collected fees and commissions then Credit Default Swaps and other insurance then got paid again by the U.S. government or Federal Reserve.

A good multi-trillion dollar scam doesn’t stop there though as the banks have MERS which they set up just prior to the repeal of the Glass Steagall Act. That is their privatized land records system. The original mortgage had MERS as Mortgagee and was filed in the public Recorder’s office. The loan originator sold the Note just after it was signed and prior to supposed securitization. The balance of the life of the Note is recorded privately within MERS.

I already explained what happened to the “toxic” MBS. In our public land records though, is the original lien filed with MERS as Nominee for the loan originator. The lien just sits there until the day it will be stolen by a mortgage servicing company.

Mortgage servicing companies are owned by banks and Hedge funds. They have in their employ the supposed MERS officers needed to sign whatever fraudulent paperwork needs a signature in order to simulate ownership of the mortgage loan.

In addition to all the monies the banks have collected so far, since 2008 they’ve also gotten about 12 million free houses plus PMI insurance and never once along the way had any of their own money at risk.

It burns my beans that most homeowners think they have a mortgage when what they actually have is a scam and a cloud upon their property Titles.



I’ve been researching mortgage/foreclosure fraud for nearly 3 years. After discovering fraud in my own 30 year fixed rate mortgage, I hired a fine attorney and have just sued my mortgage servicer on a new issue in the fight against the banks. As expected, my mortgage servicer failed to Answer this new type of suit and I am awaiting a default judgment. (I’m eager for the day when my attorney gives me permission to go public and I’ll possibly break news on DU.)

[UpInArms]

8. I look forward to your victory - and reading about it.

:thumbsup:

[Kablooie]

7. No surprise here. There is no penalty for this so it will continue and grow in popularity.

Exactly like ALL the financial behaviors that brought on this recession.

There is no reason for them to stop as long as it brings in buckets of money with no repercussions at all.

"Who cares if it brings down the economy? I've got mine!"

The only way this recession and possibly soon to be depression will end is when the government starts carting off high level executives to prison.

Until then the only way is down.