August 2013

Yang & Romeo v. Sebastian Lakes Condominium Association, Inc.

August 28, 2013 Mark Cullen

Florida’s Fourth District Court of Appeal issued a ruling on August 28, 2013 of great importance regarding business records.

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Foreclosure Fiasco

August 23, 2013 Mark Cullen

Another excellent article about foreclosure mills and securitization by David Dayen at The American Prospect.

Having mini-monopolies means that firms can set their own standard practices, leading to multiple ethical lapses. Foreclosure mills actively participated in presenting robo-signed and false documents to state courts, in many cases mocking up the documents themselves.

[Read More]

Homes For One Dollar

August 21, 2013 Lynn Szymoniak

A few residents of Gary, Indiana will have an opportunity to buy a home for one dollar.

The homes were purchased by the city at county tax sales after owners failed to pay property taxes.

The homes need significant rehabilitation and the new buyers must demonstrate their financial ability to repair these properties.… [Read More]

What’s Left?: Ace Securities Corp. 2007-HE1

August 21, 2013 Lynn Szymoniak

Each week in What’ts Left?, we look at a single trust’s lost assets and hazardous underperformance.

 

Less Than One Third of Loans Remaining

Initial Aggregate Principal Balance: $796,434,543

Initial # of Loans: 4,937

As of May 28, 2013:

Aggregate Principal Balance: $227,048,288

Loan Count: 1,499… [Read More]

Glaski v. Bank of America, N.A.

August 15, 2013 Lynn Szymoniak

Case No. F064556

On August 8, 2013, California’s Fifth District Court of Appeal ruled that a borrower may challenge the claim of a securitized trust that the trust acquired the borrower’s mortgage.  The borrower may allege and prove that the attempt to transfer the property to the trust failed because the transfer of the loan to the trust was defective.… [Read More]

Focusing On The Key Issues

August 15, 2013 Lynn Szymoniak

WERE THE NOTES ENDORSED TO THE TRUSTS & WERE THE MORTGAGES ASSIGNED TO THE TRUSTS?

On August 8, 2013, California’s Fifth District Court of Appeal ruled in a foreclosure case, Glaski v. Bank of America, N.A., (Case No. F064556) that a homeowner may challenge the claim that a trust acquired the homeowner’s note and mortgage.… [Read More]

Salon: “Your mortgage documents are fake!”

August 12, 2013 Mark Cullen

Lynn Szymoniak in Salon:

The lawsuit alleges that these notes, as well as the mortgage assignments, were “never delivered to the mortgage-backed securities trusts,” and that the trustees lied to the SEC and investors about this. As a result, the trusts could not establish ownership of the loan when they went to foreclose, forcing the production of a stream of false documents, signed by “robo-signers,” employees using a bevy of corporate titles for companies that never employed them, to sign documents about which they had little or no knowledge.

[Read More]

Eric Holder Owes the American People an Apology

August 12, 2013 Mark Cullen

From Bloomberg:

The Justice Department made a long-overdue disclosure late Friday: Last year when U.S. Attorney General Eric Holder boasted about the successes that a high-profile task force racked up pursuing mortgage fraud, the numbers he trumpeted were grossly overstated.

[Read More]

Housing Rant, August 2013

August 11, 2013 Lynn Szymoniak

President Obama said this past week that private lending should be the backbone of the housing market.

How much private investment needs to be lured back?

In 2006, the total new offerings in residential mortgage-backed trust deals registered with the Securities and Exchange Commission was $938 billion dollars – $938,034,161,688, or slightly greater.… [Read More]

DOJ Files Suit Against Bank of America

August 8, 2013 Lynn Szymoniak

See the full complaint here.

From Reuters:

The U.S. government on Tuesday filed two civil lawsuits against Bank of America for what the Justice Department and securities regulators said was a fraud on investors involving $850 million of residential mortgage-backed securities.

[Read More]