January 2013

When Banks Fail To Maintain Their Foreclosed Properties…

January 29, 2013 Lynn Szymoniak

Some homeless people were living inside this house on 2763 Shawnee Road when it caught fire two nights ago.
All survived but two were taken to the hospital because of smoke inhalation.

The home was in a poor neighborhood with many other abandoned homes – some boarded up.… [Read More]

Explosive Charge: Morgan Stanley Peddled Security Its Own Employee Called ‘Nuclear Holocaust’

January 23, 2013 Mark Cullen

From Pro Publica:

On March 16, 2007, Morgan Stanley employees working on one of the toxic assets that helped blow up the world economy discussed what to name it. Among the team members’ suggestions: “Subprime Meltdown,” “Hitman,” “Nuclear Holocaust,” “Mike Tyson’s Punchout,” and the simple-yet-direct: “Shitbag.”

…But the documents suggest a pattern of behavior larger than this one deal: People across the bank understood that the American housing market was in trouble.

[Read More]

Why Did the OCC Let HSBC Off For $249 Million?

January 19, 2013 Lynn Szymoniak

To judge the reasonableness of the most recent foreclosure fraud settlement announced by the OCC, it is important to consider HSBC’s role in foreclosure fraud.

HSBC Bank USA, N.A. acted as Trustee for several hundred mortgage-backed trusts.  This means that ultimately the mortgage servicer was paid by and answerable to HSBC as Trustee.… [Read More]

O’Brien Calls on Court for Restitution on Behalf of Homeowners

January 17, 2013 Mark Cullen

From Southern Essex County Register of Deeds John O’Brien:


On the heels of a guilty plea by DocX founder and president Lorraine Brown, to mail and wire fraud, in the Federal Court in Jacksonville, Florida, Massachusetts Southern Essex County, Register of Deeds John O’Brien has filed an affidavit and a request for restitution on behalf of the citizens of his district.

[Read More]

The Latest Foreclosure Horror… The Zombie Title!

January 17, 2013 Mark Cullen

From Michelle Conlin at Reuters:

Five years ago, Keller, 10 months behind on his mortgage payments, received notice of a foreclosure judgment from JP Morgan Chase. In a few weeks, the bank said, his three-story house with gray vinyl siding in Columbus, Ohio, would be put up for auction at a sheriff’s sale.

[Read More]

Meet The New Neighbors: Palm Beach County Foreclosures in 2012

January 17, 2013 Lynn Szymoniak

Foreclosures and the aftermath of foreclosures continued to be the most significant single factor in the United States economy in 2012.  Palm Beach County, Florida, was representative of the counties hardest hit by the foreclosure crisis.  The overall number of new foreclosures filings was 15,419, a significant increase from the 2011 total of 12,154 new filings.… [Read More]

Examination Of Pooling & Servicing Agreements In Foreclosure Cases Involving Mortgage-Backed Securities

January 14, 2013 Lynn Szymoniak

A Michigan state court issued an important decision that many affect thousands of foreclosures, HSBC Bank, USA v. Young, No 11-693 (Cir. Ct. Mich. Oct. 16, 2012). HSBC filed an action for possession of Mary Young’s home after a mortgage foreclosure by advertisement.… [Read More]

Leopards, Their Spots and Meaningful Change

January 14, 2013 Lynn Szymoniak

The Florida Bar Association has been criticized for failure to take any action against lawyers and law firms involved in egregious abuses involving foreclosures. As of January 12, 2013, no action has been taken by the bar against David Stern, Esq. … [Read More]

The Devil Is In The Details: When Did The Trust Acquire The Notes And Mortgages – A Study of 4,580 Florida Assignments

January 14, 2013 Lynn Szymoniak

 This article was originally published in Lynn Szymoniak’s publication, ‘Fraud Digest,’ and is republished here as a resource for those interested in foreclosures and document fraud.

Fraud Digest,  5, 2011

In 2010, mortgage bankers involved with mortgage-backed securities adopted a mantra: “The mortgage follows the note.”  Tom Deutsch, Executive Director of the American Securitization Forum (“ASF”), appeared before the U.S.… [Read More]

The Most Reviled Law Form in Florida and The “Unowned Mortgage Loans” Scheme

January 14, 2013 Lynn Szymoniak

This article was originally published in Lynn Szymoniak’s publication, ‘Fraud Digest,’ and is republished here as a resource for those interested in foreclosures and document fraud.

Fraud Digest, August 1, 2010

In the last weekend in July, 2010, photographs of Florida lawyer David J.

[Read More]