Widespread Wall Street Mortgage Fraud To Come To Grinding Halt — For Now

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Wall Street Foreclosure Fraud Scandal May Come To Grinding Halt.

As I previously reported Federal Judges have finally made some rare decisions and started cracking down on Wall Street banks committing widespread mortgage foreclosure fraud.

3 different cases finding Wall Street bankers committing mortgage foreclosure fraud in the last month. Among the culprits U.S bank, GMAC, JPMorgan, Chase and WAMU.

Amazing… Everyone of these banks held out their hands for TAXPAYER bailout money.

Now that the tables are turned they are all committing fraud to foreclose on people’s homes.

Today Mother Jones ran a piece following up on the story which suggests that the massive foreclosure market may be coming to a grinding halt.

A Crack In Wall Street’s Foreclosure Pipeline?

Could one bank’s admission about dubious foreclosure documents cast doubt over millions of foreclosures filed by Wall Street banks in the past few years?

A quick recap: On Monday, a brief news item appeared saying that GMAC Mortgage, a multibillion-dollar housing subsidiary of Ally Financial, may “need to take corrective action in connection with some foreclosures” and had halted parts of the foreclosure process in 23 states, including Florida, a foreclosure hotspot. The news immediately took the housing industry by surprise and set the foreclosure blogosphere abuzz. Soon after, GMAC clarified its position to say there was no moratorium. But the company did say it had temporarily halted numerous evictions and foreclosure sales in those 23 states. A GMAC spokeswoman told Bloomberg News that the move resulted from a “defect” in the company’s foreclosure paperwork that was merely “technical.”

The way GMAC put it, some minor, non-factual errors caused a hiccup in their foreclosure pipeline. According to a company statement, “a new process has already been developed and implemented so that though some existing foreclosures may experience delays while corrective action is taken, there will be no interruption in new foreclosures.” But state officials, experts, and foreclosure defense attorneys say there’s a lot more going on—and that the ramifications of GMAC’s decision could send shockwaves throughout other big banks, mortgage servicers, and possibly the entire foreclosure industry.

The controversy surrounding GMAC hinges, in large part, on a single employee and statements he made in several depositions in the past year. Jeffrey Stephan oversaw a team of more than a dozen employees whose job it was to “execute”—i.e., sign—foreclosure documents. This included reviewing crucial affidavits used in foreclosures, including what’re called summary judgment affidavits, the final hurdle in seizing somebody’s home in a court-handled foreclosure. In a June deposition (pdf), Stephan said his outfit handled 6,000 to 8,000 of these documents each month. Yet under questioning, Stephan all but admitted, under oath, that he didn’t really read those crucial documents or know what they precisely said:

Prosecuting attorney: “So other than the due date and the balances due, is it correct that you do not know whether any other part of the affidavit that you sign is true?”

Stephan: “That could be correct.”

There’s just one problem with this: According to federal rules of civil procedure, affidavits like the kind Stephan was signing “must be made on personal knowledge, set out facts that would be admissible in evidence, and show that the affiant is competent to testify on the matters stated.” In other words, if you sign a foreclosure affidavit, you have to know what that document says—indeed, you should be so familiar with it that you could defend its contents in court. But GMAC’s Stephan conceded that he really didn’t know what those tens of thousands of documents, used to foreclose on homeowners around the country, actually said.

Read The Rest Of The Mother Jones Article Here

To my dissatisfaction however the article avoided the elephant in the room altogether. Not a single mention of the “F” word.

Fraud was not mentioned once in the Mother Jones Article even thought several of the lawsuits specifically have rulings by Federal Judges finding the banks are participating in widespread fraud.

Besides that caveat the Mother Jones piece is rather informative revealing even more fraudulent and unethical practices being committed by the banks.

The newly unveiled practices being performed by the bank threaten to shut down the production assembly line of foreclosures altogether.

As the article goes onto reveal “GMAC is only the tip of the iceberg. They all are doing it.”

A comment at the end of the article adds another culprit to the list.

This is just the beginning of the iceberg. RE: FRAUD BY
GOLDMAN SACH’S TRUSTEE, DEUTSCHE BANK NATIONAL TRUST COMPANY
, AGAINST US AND countless thousands of DISTRESSED HOMEOWNERS

If our story would be of interest to you please contact us.
Thank You.
Joseph and Victoria Quinn
732-566-8599 Phone and fax number
joequinn@PraiseYAHWEH.com http://scr.bi/9Z7dpa

Here is the lawsuit filed in that case – Final Response Pro SE to Motion for Summary Judgement Response 8-11

Another comment points us to a documentary being released in October that will help shed light on the biggest fraud in American history which is narrated by Matt Damon.

A great movie narrated by Matt Damon is coming out in October 2010 which
will shed more light on the biggest fraud in America’s history. Here is the
trailer, spread the word about it, http://www.youtube.com/watch?v=X2DRm5ES-uA

Inside Job Trailer 2010 HD

This movie is long overdue and I can’t wait to watch it. I only hope that it disseminates the information to the American Public in a way that people can easily understand.

I tried to do that in this video, but judging by the lack of views I don’t think I was too succesful.

I posted that video on my article Greece And ECB Blow Whistle On US Bank Fraud Scam That Caused 2008 Financial Crisis.

The article of the Greece and ECB blowing the whistle on the Wall Street Banks Fraud scandal also contains a separate class action lawsuit filed against the Federal Reserve and Wall Street banks for ripping off taxpayers.

I also put together posted this MSNBC VIDEO: Largest Fraud Scheme Ever Exposed!! Shocking Must Watch! which gives us a little prelude of the upcoming documentary.

But don’t kid yourself if you think the Federal Government has decided to clean up the trash on Wall Street If they wanted to do that they would have done so with a real Financial Regulation bill.

Instead they passed a bill that only creates a bureaucratic nightmare that will enable the Government to collect more tax dollars from Wall Street Bankers, which is a cost that will end up being paid by the consumer.

No, this crackdown is about one thing and one thing only — and it’s not the taxpayer — its the election.

It will temporarily stall the foreclosure pipeline to give the economy the appearance of looking better.

After all its kind of hard to get reelected when your resume includes the highest foreclosure rates in American history.

Categories: ECONOMY

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