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Pending Foreclosure Fraud Settlement Achieves New Level of Abject Regulatory Failure

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After too many years to count of regulatory failure and limp-wristed reforms, it’s hard to be surprised. Nevertheless, I hope to convince you that a yet another mortgage settlement, leaked on New Year’s Eve when hopefully no one would notice, achieves the difficult task of reaching a new level of dereliction of duty.

This latest bank gimmie comes in the retrading of consent orders that were entered into in April 2011. Readers who followed the mortgage beat closely may recall that the OCC broke with other banking regulators, the DoJ, and HUD in entering into its own consent decrees in the hope of undermining the mortgage negotiations. But this OCC settlement (which the Fed joined) was in some ways broader that the one entered into by 49 state attorneys general and various Federal agencies in early 2012, in that it involved the 14 major servicers, while the later state/Federal deal was limited to the biggest five. The banks piously promised to shape up, and were required to conduct reviews of foreclosures performed in a specified time frame if consumers asked for them, plus conduct a review of a sample of other foreclosures.

Now a number of observers, including yours truly, called out these settlements as patently ridiculous and rife for abuse Why? Rather than act like a proper regulator, and oversee the review process itself, the OCC outsourced it to consultants hired by the banks! Yes, the OCC would get to review them for conflicts of interest, but who are we kidding? And it was even worse than you can imagine, since the OCC accepted that conflicts would be the norm. As we wrote in July 2011:

If you’ve been following this sorry saga, you may recall that in April of this year, major servicers entered into servicing consent orders with the OCC and Fed. They were clearly all for show. Rather than observer the normal procedure, and have a regulator conduct the exams, the consent orders instead provide for the banks to hire soi-disant independent parties to conduct the reviews. As we and more recently Francine McKenna pointed out, there is pretty much no one with a brand name that is worth renting that doesn’t either have a relationship with the big banks or is keen to develop one. Since the reviews won’t be made public, there is every reason to expect that any problems reported will be strictly cosmetic.

And as we noted in May 2011:

One component of the OCC program was “independent” foreclosure reviews that would be offered to borrowers to determine if they had been harmed by a foreclosure and provide restitution. You have to understand that this was never a good faith effort, even though HUD secretary Donovan trumpeted these assessments as an important part of “social justice.” The purpose of every new bank review process implemented since the Obama administration took office has been to go through the motions of being thorough (typically not convincingly, as with the first stress test and the Foreclosure Task Force demonstrate ) and give a clean bill of health. Having the OCC look at a whole passel of foreclosures and say, “See, the overwhelming majority were OK” would be an important step in turning the clock back to before the robosigning scandal broke.

And as this farce went on, what little information that did come to light was even worse than our low expectations. For instance:

Sheila Bair deemed the consent orders to be inadequate, argued the millions of mortgages were likely “infected”

Obviously conflicted parties hired as consultants (here, here, and here)

Low level, minimally skilled parties hired to do file reviews (advertised pay $23 an hour; a robosigner or call center employee with one year of experience would fit the job description)

Borrowers were shunning the reviews, perhaps because they recognized they could prejudice any case against the banks/servicers

And it indeed turned out the banks were doing all they could to stack the deck against homeowners seeking reviews. First, the GAO determined that the materials were drafted over the heads of most borrowers, at the second year college reading level, in clear violation of Federal “plain language” guidelines. And whistleblowers reported that Wells Fargo was designing the questionnaires to assure it would never find anything wrong. From a post by Abigail Field:

The full revelations of the temp hired, trained and supervised by Promontory Compliance Solutions, working on the Wells Fargo’s OCC independent foreclosure reviews project, are available as a Mandelman blog post and a Mandelman Podcast. But here’s a few highlights to show how rigged the process is:

“I have found errors that should be moved up through the ranks, but am told “quit digging so deep”…”put your shovel away”…Focus on the questions “in scope”… The review forms are set up so no harm could ever be found. It’s equivalent of an attorney presenting his case to a judge with just 20% of the evidence.”

and

“The foreclosed victims don’t realize if they do not provide specific dates on the intake forms… their complaints are considered “general comments” out of scope.

The kicker? The forms don’t tell people their information will be ignored if the complaints are not dated.

Mandelman reports that the insider

“also says that the questions on Promontory’s form are worded in such a way that it makes it very difficult to ever find fault. For example, by using compound questions, he is often told to answer “no,” when the first part of the question would be a “yes.””

A last, flashing neon sign announcing the reviews will protect banks and do no justice is who has been hired to do the reviews. See, here’s the insider that’s willing to talk, and it’s probably why he’s willing to talk:

I have 15 years industry experience in all facets of the mortgage & title industry, and just needed a job at the moment.

But this is who he’s working with and for:

some of the people brought in with me do not know the difference between a truth in lending statement, and a note. It’s a shame, these are your reviewers!!! The supervisors don’t want any trouble…they are mostly temps too, just trying to get a promotion to full time.

Sounds like no bailed-out bank will be held accountable and no homeowner compensated. Nice product you’re selling there “U.S.” Housing Secretary Donovan.

Indeed, Wells Fargo’s Promontory process apparently found no wrong doing in 9,996 cases out of 10,000 examined. The other four were sent to Wells Fargo for further review but came back as no problem. At least, 0 problems out of 10,000 files is what the insider’s supervisors announced to everybody. I don’t know if the supervisors were telling the truth or just trying to message everyone to not find any problems in any files. Either way it tells you the same thing: the reviewers won’t find anything wrong with the files.

Now what would a competent regulator do when word of this egregious gaming of the process was taking place? Come down on the miscreant’s head like a ton of bricks. But nothing of the sort took place. And this was no surprise. Before the whistleblower report, Georgetown law professor Adam Levitin had concluded:

I think it demolishes even the thin fiction that the OCC/Fed servicing consent orders are anything more than Potemkin villages. Instead, what we have here is nothing less than a federally-blessed Robosigning 2.0.

Now fast forward to the “settlement” revelation of New Year’s Eve, courtesy the New York Times. The first nasty bit is that this deal has been under discussion with the 14 servicers in the consent decree for a month or so, with no inclusion of representatives of borrowers, which is already a big warning sign. Here are the key bits:

Banking regulators are close to a $10 billion settlement with 14 banks that would end the government’s efforts to hold lenders responsible for foreclosure abuses like faulty paperwork and excessive fees that may have led to evictions, according to people with knowledge of the discussions….

In recent weeks within the upper echelons of the comptroller’s office, pressure was mounting to negotiate a banner settlement with the banks, according to people with knowledge of the matter. The reason was that some within the agency had started to realize that a mandatory review of millions of bank loans was not yielding meaningful examples of the banks’ wrongfully evicting homeowners who were current on their payments or making partial payments, according to the people…

Under the terms of the order, the 14 banks had to hire independent consultants to pore through the loan records to determine whether the banks illegally charged fees, forced homeowners to take out costly insurance or miscalculated loan payment amounts. Consultants initially estimated that each loan would take about eight hours, at a cost of up to $250 an hour, to go through.

The costs of the reviews have ballooned, though, according to people with knowledge of the reviews, in part because each loan file is taking up to 20 hours to review. Since its inception, the reviews have cost the banks about $1.5 billion, according to those people.

Before we get any further, we need to stress how patently ridiculous these cost claims are. Notice that one of the things that this review process claims to be doing is reviewing whether borrowers were charged incorrectly. Reviewing the loan files is not going to get you there. You could either check a random sample of consumer records (which would be time consuming but give you insights you could not get any other way) or audit servicer software to see how payments were applied and processed. We’ve discussed for a long time that servicer-driven foreclosures (due to illegal application of charges to borrowers) are a big part of the problem; foreclosure defense lawyers say they represent 50% to 70% of the cases they handle. But this process was never set up properly to diagnose that.

Second is the absurdity of the “up to $250 an hour” and “up to 20 hours a loan file” claims. We’ve spoken at length to mortgage experts; it should take someone competent no more than an hour on average to review a file because there aren’t than many items to review if you are looking for frauds on borrowers as opposed to going on a treasure hunt for file errors, the overwhelming majority of which don’t have any implications as far as borrower harm is concerned.

We interviewed a partner at SolomonEdwards, a firm that has mortgage file reviews and remediation as a line of business and had 600 people deployed on OCC reviews. We deemed the process to be overkil. Even so, they were spending 3 hours on average, vastly less than the level the Times implied:

I called SolomonEdwards to discuss its press release about “scrubbing” loan files and had two conversations totaling over 50 minutes with a partner in this business. What was disconcerting about this discussion what that despite his emphasis on how thorough SolomonEdwards is in inspecting loan files (its software allows it to flag hundreds of items on a file review) and how strict it is in managing conflicts….he seemed remarkably unaware of the differences between how you can handle a loan that a bank owns versus one that was supposed to be transferred to a trust pursuant to a PSA. When I asked specifically about whether their process was different for securitized loans versus bank owned loans, he said that there was not a great deal of differences…

In fact, these reviews sound like documentation theater. The partner stressed how through SolomonEdwards was and how they had software that allowed them to record up data items and capture whether a item was material or not material and then risk rate an entire loan file. They can look at up to 12000 variants (no typo) for the OCC reviews (how many they actually look at depends on the scope of the client engagement; the difference between the number of steps, as he called them, in the OCC reviews versus the typical bank engagement is because the OCC reviews include state law requirements. Needless to say, it’s a bit curious that routine forensic investigations do not include state law matters). He also stressed that they have senior teams working on these projects, 5 years average experience for the OCC work, more than that on bank work, and that on a normal engagement, they would typically spend 3 hours per file, but if a bank had serious documentation problems, it might take as long as 12 hours.

He said that a typical bank engagement would require looking at 100 to 150 items. For a 3 hour process, that’s less than two minutes an item (and remember, that includes the time to log their findings). But the reality is that there are really only 5-10 things you need to look at: Do you have an original note? Does it have all the endorsements that the PSA says it should have? Do the mortgage assignments correspond to the endorsements? Were they all completed on time?

These multi-hour investigations are fee-padding form over substance. But this sort of thing is perfect for the bank-defending OCC, since it would take someone pretty expert to penetrate the fiction that this exercise in counting trees was designed to miss the forest.

I suggest you read the entire post to get a clearer picture of how bad this is. First, it makes clear that this firm, which prides itself on its expertise, really did not get many basic legal issues. It seemed to be working back from what servicers considered to be important in foreclosures, when the problem has been servicers have been running roughshod over the law (I’ve spoken at conferences with servicer employees among the participants, and I get reactions ranging from stunned to outraged when I tell them what the chain of title issues are). Second, this firm, and I suspect its competitors, offers not just “review” services, but “remediation” services as well, which include such dubious practices as document fabrication (creating allonges) and making back-dated mortgage assignments. Thus it isn’t hare to imagine that the reason that the costs have ballooned is not that the reviews are costing this much, but that the reviews are being used as cover to tidy up bad mortgage files.

Look, it is simply not plausible that these reviews have found nothing. The US Trustee found widespread abuses in bankruptcy courts, particularly improper default servicing fees (inflated harges for legal work, property inspections, insurance and appraisals). From the New York Times account:

But after sifting through the data produced by this investigation, Mr.[Clifford] White [director of the Trustee's executive office] disagreed that problems are rare. “In Senate testimony, an executive from Countrywide said its error rate was 1 percent,” Mr. White recalled. “The mortgage servicer industry error rate might be 10 times higher, based on the number of cases we are looking at.”

“There are continued flaws in the process, and they are not merely technical,” Mr. White continued. “Those flaws undermine the integrity of the bankruptcy system. Many homeowners have been harmed, including where the lender has come in and said ‘we want to lift the stay and go back into foreclosure proceedings,’ even though they lacked a sufficient basis to do it.”

He went on: “There are enough examples of this to know that we are not dealing with small numbers.”

Or consider this case:

In an April 2008 ruling, Elizabeth Magner, a U.S. bankruptcy judge in New Orleans, rejected the two charges [for broker price opinions charged when the parish in which the home was located was evacuated thanks to Hurricane Katrina] as invalid. She also disallowed 43 home inspections, 39 late charges, and thousands of dollars in legal fees charged to the Stewarts’ account.

Almost every disallowed fee was imposed while the Stewarts were making regular monthly payments on their home…

Magner determined that Wells Fargo had been “duplicitous and misleading” and ordered the bank to pay $27,000 in damages and attorneys’ fees. She also took the unusual step of requiring the servicer to audit about 400 home loan files in cases in the Eastern District of Louisiana.

Wells fought successfully to keep the results of the audit under seal, and last summer a federal appeals court overturned the part of Magner’s ruling that required the audit. But two people familiar with the results told iWatch News that Wells Fargo’s audit had turned up accounting errors in nearly every loan file it reviewed.

Or how about the fact that the Michigan Supreme Court just ruled that $3.75 billion of JP Morgan mortgages in that state are voidable? Or how about the guilty plea of Lorraine Brown of the DocX unit of Lender Processing Services, who admitted to preparing and filing over 1 million fraudulently signed and notarized documents? Any foreclosure that relied on them would be subject to question.

Let’s be clear on what happened here. The OCC created a process that was giving the banks a license to cheat. Not only di they cheat, but it’s almost certain they did so on aggressively, on every possible axis, then had the temerity to complain to the authorities that they were running up big consultant bills, when it’s certain these bills were massively inflated (whether due to letting the consultants rape them, or the more likely that they loaded every possible servicer-related bit of activity is moot, the bottom line is the charges bear no relationship to the work that actually needed to get done). This is a variant of a common bank scam, tantamount to killing their parents and then asking for sympathy for being an orphan. And the regulators are too craven, corrupt, or just plain incompetent to bring the banks to heel. They don’t examine the twattle they are served; at best, they are too deeply invested in the fiction of the settlement to admit that this colossal screw-up was completely predictable and undeniably their fault. There is no way to excuse this sort of gross misconduct.

Reader Hugh wrote this about the fiscal cliff yesterday, and it applies here as well:

The two parties, our whole political class, are not stupid or incompetent. They are not good people making mistakes. Nor are they psychopaths making bad decisions. Each of these rationales in some way contains the idea that they are not wholly and completely responsible for their acts. While each of these explanations holds a certain attraction, none of them are true. The truth is a lot simpler. They are criminals acting as criminals. It doesn’t matter what they think. It doesn’t matter what they believe.

Who cares if they equate their good with the general good, and believe the more they take for themselves, the more the general good is served? Would we accept this argument from a car thief, a burglar, or a bank robber? No. So why should we accept it from our political class?

We need to be as serious and hard assed about this as they are. Everytime you see Obama, Boehner, Reid, McConnell, or Blankfein and Dimon, everytime you see any of our political classes remember that they murder more Americans in a year than a dozen bin Ladens did in a lifetime. They steal more in a year than a million Dillingers. They create more destruction than a hundred natural disasters. More pain and suffering than a major epidemic. They are the banality of evil made manifest. We must stop being distracted by that banality and look at them up close and in the face in all their evil and ugliness.

They mean with every atom of their being to loot us to the last drop and beyond if they can. To resist them, we must be as clear eyed and steadfast as they are to destroy us. We must put aside comforting but false stereotypes. We should keep ever present in our mind the evil that they are and the evil that they do. We can not afford to let that image slip an instant from our view, because when we do, they win. They succeed in making their evil appear less, or even no evil at all, and so easier to sell and continue.

We do need to keep this sort of thought foremost in our minds. The feckless conduct of what passes for leadership in America is too well established to pretend that the results are the result of good intentions stymied or gone awry. You can see the gory details above, that the outcome here was no mistake. It was not merely predictable, it was predicted as soon as the settlements were announced.

The political classes have a vested interest in giving “cost of doing business” punishments because no punishment at all undermines their role and what little confidence there is left in the system. But the sooner we understand that their interests are not merely divorced from those of ordinary citizens, but actually opposed to them, the closer we are to coming up with realistic courses of action.

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81 comments

  1. Conscience of a Conservative

    The key word in “foreclosure fraud” is fraud. I think it’s time to stop making this about fines paid by the company but about the criminal nature of the conduct and actually send a few people to jail. Let’s stop the fines which don’t really prevent recurrence or deter and deal with the fact crimes are being committed.

      1. Susan the other

        Amen and then some. Yves at her best. The 10% is a total hedge tho’ as I’ve read and heard that the figure is closer to 80% of mortgages that are garbage. But it is very good to know that the banks can hire henchmen to look up the electronic record on all these “transactions” and produce evidence for court. This means that the discovery rule is alive and well. This was such a good recap. And how about this, since the Federal Government has washed its hands of any and all responsibility for this fraud, no doubt because it is “dirt” and only states do dirt (except now the Feds have tricked all the states’ atty generals into signing off on criminal prosecutions… gee thanks Obama): Lets send all these cases without delay to the proper venue: state supreme courts. (I especially like Michigan (above); New York, Massachusetts, North Carolina, Oregon, Kansas, Alabama, Nevada, Ohio and others.) I’m just curious tho’ … how are they ever going to make a statesman out of Jamie Dimon, say Secty of State, with all this baggage? Loved Hugh’s comment.

    1. Nathanael

      After a while, if the DAs and judges keep letting these massive crime sprees go unpunished, someone’s going to have to start advocating vigilantism. And a lot more people are going to support it.

      There’s actually a legal basis for vigilantism in the common law.

    2. Susan the other

      Oops. Not. Criminal is now totally precluded by the Obama settlement. And only individuals can go to civil court against the banksters. Disgusting beyond belief.

    3. nonclassical

      …not repubLIEcon “austerity”, nor busbama “QE=stimulus”…ACCOUNTABILITY..
      which is what people are in the streets all over the world demanding, and governments all over the world are ignoring…

  2. matt weidner

    The truly scary thing is the lack of outrage or even objection raised by consumers. OF course there will be no real reporting about how bad this settlment is….but every wire service and newspaper will run a headline….”Feds Reach Historic $10 Billion Settlement With Banks”. No one (excepting of couse Naked and other blogs) will report that they will not pay nearly that amount of money or that the settlement lets the criminals moonwalk away from the crime spree. And really….if consumers and voters will not hold elected officials accountable why should their banking co-conspirators not continue with their crime sprees?

  3. Luxtexente

    I posted this before, I will post it again here. Still, almost no one pays any attention.

    It is a first time one of a kind project. In theory those of us who joined were actually going to make a major financial debacle right again. We were going to examine 1.8 million mortgage foreclosures for technical error, misrepresentations, fraud, and failure to comply with Federal and state foreclosure laws or procedures.

    Many of us are older and have been in the mortgage business in one way or another for 20 plus years. We came from every walk of the industry including Foreclosure Law Firms. So we should all have been skeptical, but the way we were selected for the job set aside our skepticism, we were hopeful that we might fix, at least for some people, this horrendous mortgage debacle all of us saw unfold for almost a decade.

    I often refused to sign off on loans because of the complete lack of sense they made. I constantly warned superiors of the tremendous risk we ran by accepting Appraisals on properties that accelerated at 25, 30, and 50% annually or even semi-annually.

    My wife ran a small mortgage business and she refused to sell the option payment arms, and the interest only 1.25% teaser rates that produced negative amortization. She would not and did not sell the ever increasing products that lacked any of the traditional restraints on credit risk, ability to pay and property review. She only sold the standard fixed rate and term products and warned hundreds of clients and potential clients of the dangers of what they were trying to do. Most would not listen. Some did. We slept at night when the debacle came crashing down.

    However, this 25 billion dollar settlement with the banks seemed like a way to help fix the mess the Government, Banks, Realtors, and Appraisers got us into. Yes, some of it was just plain ignorance and greed on the part of consumers, but it was also sold as the American Dream, the chance of a life time to get ahead, to make a better life for our children, to achieve financial freedom, educate our children at schools we couldn’t even consider before this. It was a sold as a chance to move up to better, bigger, safer neighborhoods. It was sold as the chance of a lifetime. Many of us in the industry knew better, we tried to warn clients, bosses, banks, lenders, but who listens to the peons in the chairs drawing a paycheck.

    This 25 billion dollar settlement seemed like the chance to help make it right. The head hunters called us by the hundreds and thousands. It was going to be a program where people with our skills in underwriting, processing, title work, insurance, bankruptcy, foreclosure law, and credit counseling could help right this sinking Titanic. We were told we can make a difference and help make things right for millions of people, and it paid well.

    I was with the second wave of “recruits”. I was impressed. In a training class of 70 people at the bank I was to work with most of us were underwriters and processors with a smattering of actual Bar registered lawyers. The amount of mortgage and foreclosure knowledge was tremendous. From what I could see and hear, it seemed we could fix this debacle pretty quick. Across the country and with the 14 major banks and lenders involved there would be thousands of us, all with years of experience and a determination to make this right. Our instructors were from the banks and lenders.

    I didn’t like that idea. I had originally thought that I would be instructed on procedures and goals by a third party entity called Promontory and or the government agency OCC. That did not happen. However, the training was interesting, and seemed straight forward, review the file, find the problems, and report them so they could be fixed. The goal, make wronged borrowers whole again as nearly as possible or so we thought.

    After the training we arrived on the “floor” to begin a more in-depth training. We learned at that point that there was nothing ready for us to work on, but this nothing paid well, we could wait. Things did progress though, and our review procedures began to develop. We began in January, by April there were 500 of us at the location I was in and it was projected to reach 750 by June. Forty of us were actually reviewing files.

    This is where we began to see the sham of the project. By the time I began reviewing files there were on 57000 files to review. The trigger for a review was that a borrower had to file a written complaint with the OCC. The problem with getting people to write a complaint was that all the advertising was direct mail to their homes and only to people that had been foreclosed on between January 2009 and December 2010. At a meeting involving the entire staff across the country (by phone) the question was asked “why just direct mail”, the answer, “TV, Radio and Print Media would attract too many of the wrong people and the banks and lenders didn’t want that.” When it was mentioned that it was two to three years after the borrower had been evicted we were told that “they should have put in a forwarding address with us”. I was dumbfounded, how could they expect people who lost everything to the bank to keep updating their addresses with the bank? It made no sense. But we kept plugging away at our task knowing now the battle was going to be tougher than we thought.

    There was another issue. We were supposedly independent contractors, but we worked directly under bank and lenders authority and supervision. Any findings we made were quality controlled by the bank. Any findings we made came directly under the scrutiny of the bank. Any arguments over our findings, and whether they should be changed or not could and often did result in termination from the program without cause or warning and we had no recourse because we were contractors.

    Other issues began to come up. Many of the tests and procedures we used to test a particular loan for harm to the borrower were State Specific in regard to the foreclosure laws of that State. As we began to delve into the files we found sometimes a dozen or more violations of the foreclosure laws with a specific file. The situation was becoming heated as Claim Reviewers (as we were called) began finding more and more issues of law, not to mention, incompetence, and immorality and poor judgment. Often times it was just a lack of communications between departments within the bank that caused the problem. None the less, there were tensions building between Claim Reviewers and bank managers as the list of harm on borrowers grew. However, the bank and the OCC did find a solution. Take the questions out of the tests we were doing that asked about issues of law. So one test that had 2200 investigative questions (there are about a dozen tests for a file review) now became about 550 questions. Issues of law were removed. At another of our group meetings we were told that if a borrower did not specifically cite the law or statute that was violated in their complaint that we were not to address a violation of law found in the file as it was now irrelevant to the issues at hand. When the questions was asked “how is a borrower going to know if a specific law or statute was violated since they are not trained in the law” the answer was that we only address what the borrower specifically complained about. The problem was that usually a borrower only had a feeling they got shafted somehow, but did not specifically know how. The complaint form also didn’t mention to the borrower that they had to be specific about issues of law. The form only asked generic questions about what happened. Now it was very evident that we were there as window dressing and not the compassionate heroes we thought we were.

    Those were only the general issues that were causing friction. The sham was becoming more and more evident in the details. Some of the details involve foreclosure timelines, missing documents, misapplied funds, multiple modifications and similar programs at one time, it was amazing.

    For example, in one case I reviewed the borrower paid approximately 25K to reinstate his mortgage. Then he began to make his mortgage payments as agreed. Each time he made a payment the payment was sent back stating he had to be current for the bank to accept a payment. He made three payments and each time the response was the same. Each time he wrote and called stating he had sent in the $25K to reinstate the loan and had the canceled check to prove it. After several months the bank realized that they had put the 25K in the wrong account. At that time that notified him that they were crediting his account, but because of the delay in receiving the reinstatement funds into the proper account he owed them more interest on the monies, late fees for the payments that had been returned and not credited and he was again in default for failing to continue making his payment. The bank foreclosed when he refused to pay additional interest and late fees for the banks error. I was told that I shouldn’t show that as harm because he did quit making his payments. I refused to do that.

    There was another instance when there was no evidence that the bank had properly published the notice of sale in the newspaper as required by law. The argument the bank made when it was listed as harm to the borrower was “here is the foreclosure sale deed, obviously we followed proper procedure, and you should change your answer as to harm.”

    Often there is no evidence of a borrower being sent a proper notice of intent to accelerate the mortgage. When these issues are noted in a file we are told to ignore them and transfer those files to a “special team” set up to handle that kind of situation. You choose whatever meaning you like for that scenario.

    As far as modifications and forbearance go, I saw multiple cases in which a borrower would be given a forbearance agreement. It would be signed and properly executed and before the borrower could make the first payment the borrower would be offered a trial modification. Before that payment was due the borrower would be offered a permanent modification, but because there was already a forbearance and a trial modification offered and in place the borrower would be told that he/she must cancel the other offers in writing. Once that was done the modification offered would be denied for lack of performance on the other programs offered and then further assistance would be denied because of the borrower turning down assistance on the other programs. Then the argument was that we shouldn’t say the borrower was harmed financially because he turned down the help offered.

    Time after time scenarios would go something like this. The borrower would call in and ask for help with a modification. Usually they called or were referred to the collections department. The bank employee would tell the borrower that in order to receive help they must bring the mortgage current. The borrower would send the money in, usually to the bank collection agent who gave the information and then the modification department would deny the borrower assistance because the mortgage was current and they had to be behind to receive assistance. Of course the bank argued that there was no harm because the borrower obviously could make the payment.

    More often than not a borrower would be foreclosed on even though the bank had said they could apply for a modification if they would send in the financial paperwork required. The borrower would do this, 2, 3,4,5,6 or more times and the bank would “loose” the paperwork time and time again, until the house was finally foreclosed on. The borrowers would call, write, and call immediately after faxing the paperwork, be told it was received only to be denied later because they failed to send in any paperwork. The banks argument was that there was no harm to the borrower because they didn’t send in the paperwork, even though more often than not with a little searching the paperwork would be found in the system somewhere.

    Often the paperwork would be sent in and not reviewed for four, five or six months and then the borrower would be sent a letter requesting they send it again because everything the bank had was too old to use. Many times this was done even after the home was already sold at foreclosure. The argument by the bank was no harm was done because they did not send the paperwork again.

    The bottom line, agree or be fired. When the independent contractors who are there to independently judge the situation are ruled and judged by the very people that are responsible for the debacle in the first place is ludicrous. So many times I was told to not argue because I could be let go without notice or cause, it was difficult to hold my tongue. Most people would change the results and simply make notes in the system about being ordered by management to make the changes. But the banks and lenders control the notes. Others left the position. I actually thought there was hope when the OCC took the decision about financial harm to the borrower away from the banks and lenders and gave it to Promontory. It was called the H test. But that was short lived when we were told the banks and lenders were being allowed to form review teams to determine if Promontory made the right decision about financial harm. That was decided by the OCC. The joke is on the American people. Actually, the American people are being made the punch line.

    By luxtexente

    1. Jackrabbit

      Thanks for taking the time to write that first-hand account.

      It seems to me that many truths are being withheld so many Americans don’t know what is going on. Also, many have been led to believe that greedy flippers and irresponsible borrowers were principally to blame. I have had to point out again and again in conversations that Banks are REGULATED so that they ensure that the treat people fairly and avoid systemic risk. To most people, this seems to be an inconvenient truth.

    2. Alice

      Thank you for this. Please keep posting this info as I am sure there are many that may have missed your previous posts. Kudos to your wife for not getting her borrowers into these loans. I can only imagine how this experience must have destroyed your dream of making a difference. My heart goes out to you.

    3. Melissa

      Thank you for taking the time to explain what really happened in this process. I’m one of the victims in this foreclosure fraud and just knowing the truth does help. We must do something about this. So many people are still suffering and will never fully recover from this travesty. For the government to hold out hope that there will ultimately be some kind of retribution, is cruel, if the fraud is only being repeated again. Thank God there are still people like you, who are willing to speak out. Your statement gives me renewed strength to continue fighting.

    4. ChrisPacific

      Thank you for reposting – I did miss it the first time around, but read it with interest this time.

    5. JL1965

      Thank you for sharing what goes on in these “reviews” – nobody should be shocked, but seeing it in print is still jarring and disturbing. It’s as if bankers are an entirely different species than we humans – despicable and downright evil.

      I can personally attest that the banks are STILL submitting false documents in property records and to courts. As recently as four months ago, our servicer (BOA) filed a completely bogus MERS assignment for a CWALT 2005 trust! (That should be fun to fight…)

      Clearly, the OCC consent orders, AG settlement, etc. have done NOTHING to stop the rampant fraud or deter the banks one iota – it’s just business as usual. Except the servicers and LPS/CoreLogic are being a little more sneaky than before – i.e., changing the names of their robo-signers frequently, so they don’t have so many notorious “Linda Greens” anymore.

    6. Melissa Howard

      You should become a whistleblower because you have first hand knowledge of the wrongdoing. We need more people to step up and stop this corruption! Thank you for speaking out.

    7. diane

      Yes, some of it was just plain ignorance and greed on the part of consumers, but it was also sold as the American Dream, ….

      I’ve boldfaced the words “plain ignorance” as that term has been so very frequently applied to those who were renting but tried to stretch their funds to pay for a mortgage.

      One thing that has never been highlighted in the obscene transfer we’ve recently seen from private citizen owned to investor owned residential property is the historic sadistic treatment allowed and widely condoned towards those who have no means but to rent the roof over their heads ,…despite working forty plus hours per week.

      Renters have been damned if they bought a house they could barely afford, yet historically told to just ‘magically’ move when rents inexplicably rise on them in double digits. As if moving for renters was devoid of all the: emotional trauma (which stress has been historically noted as regards ‘moving’), available job issues, stunning transport expense, neighborhood desirability, storage issues, etcetera, etcetera, etcetera …. which have always at least somewhat taken into consideration for homeowners; homeowners whom, unlike renters, are not talked down to as if they could just fit all of their belongings in a back pack, within less than a month (yet still show up for work 40 hours plus a week), and magically find and economically ‘qualify for’ some new apartment when the current one has already sucked all of their finances up.

      The one silver lining I see in the recent blatant and stunning decimation of home ownership is that finally those who’ve never rented will get to realize why so many renters bought homes they could barely afford to pay the mortgage on: to be treated like human beings whose lives are not daily subjected to fear regarding investor predators.

    8. LucyLulu

      Thank you for sharing and trying. Please consider becoming a whistleblower. If you’re lucky, you could earn a sizeable payoff. Perhaps Lynn Syzmoniak would help you deal with the whistleblower waters, having successfully navigated them herself. It’s disheartening and demoralizing that they can get away with this clearly fraudulent behavior. Us homeowners have been stripped of all of our rights, we are at the mercy of the whims of these institutions……. the institutions that we paid to save.

    9. Lisa

      Thank you for posting and exposing the internal mechanisms of the IFR for the sham and fraud that most of us suspected it was.

    10. Viv

      Lux,
      I would like to talk to you directly. I am a homeowner who was defraud by BofA and have gone to extensive efforts to voice my concerns. Earlier this year, I was given a great opportunity to have a teleconference with the GAO, Governmental Accountability Office, and know they are paying close attention with the IFR and the current new “deal.”
      Therefore, I would like to connect to explore the possibility of sharing your wealth of insight. Your experiences need to be heard by those who can make a difference. Please contact me: Viviance7777@aol.com

      Love to talk!!!!

      Viv

  4. Fíréan

    An aptly worded petition, writtten and produced by the abundance of available experts on this matter to ensure the legalese and prominence of the full facts, may be a start with which to enage the focus of attention of both the media and the public ?
    Such action has produced a successsful response, if not a final desired result, for much more trivial matters. A begininng and one line of action.

    https://petitions.whitehouse.gov/

    Presently there is no widely known collective point for those who are concerned or affected, to voice their concern or relate their experience. The blogs, to which you refer, are not well known.
    Being more active in the comments sections of the main stream media (MSM) is another route, though they seldom give articles where the appropriate, on topic, comments may be placed and directions placed for the reader to follow through for further detailed information.

    1. citalopram

      Petitioning the white house doesn’t work. They don’t care and will ignore them, as they’ve done in the past. This is smoke and mirrors. Enough already.

      1. Nathanael

        Yep. Look up the petition “Actually respond to these petitions instead of using them as an excuse to pretend you’re doing something”.

        1. citalopram

          That one is the only one that is worth reading.

          Obama ain’t comin’ to the rescue. This blog has documented that from the get go.

        2. just me

          Heard on NPR yesterday:

          http://www.npr.org/2013/01/03/168564135/white-houses-we-the-people-petitions-find-mixed-success

          CORNISH: What are some other issues that the administration has actually responded to via the site? What is the quality of the responses? What’s the range?

          SNIDER: Well, there’s a lot of variation. One of the petitions is, you know, please really respond to what we say rather than give us a political non-answer. For example…

          CORNISH: So there’s a petition for better answers to the petition?

          (LAUGHTER)

          SNIDER: That’s right, yes. There’s a lot of frustration.

      2. Fíréan

        I acknowledge that they do not work for what they are, yet the intention as posted is to get the public attention. A previous poster was righty pointing out the lack of public outrage.

  5. dolleymadison

    Matt is right – nobody – not the lawyers, (except a few like Matt) not the regulators, legislators, judges, press or everyday citizens care that their fellow Americans are being raped and pillaged, as long as they get theirs. I provided certified bank records to the North Carolina Banking Commissioner on three occaisions to prove I was not in default as Ocwen claimed. Ocwen countered that yes I paid every month on time but that I was paying the wrong amount. I provided my settlement papers and monthly statements showing I was paying the amount requested. NCCOB did NOTHING and was openly HOSTILE to me. No lawyer would help – I miraculously won as a Pro Se after the fraud was so blatant, and I was so vocal, that they had to begrudgingly rule for me. Yet after being caught redhanded and exposed as lying in court – noone went to jail and they were allowed to file notice of appeal. Lying and fraud have become the new normal as we all just yawn and look the other way.

    1. Nathanael

      You’re probably going to have to get advice from Matt W. on how to file motions. The bank needs to have motions for sanctions, punitive damages, etc. filed against it; they’re relying on you not knowing how to do that.

      1. dolleymadison

        In a different state and, after having 6 lawyers all double-cross me in the end, I will take my chances.

  6. DANNYBOY

    If you remember how happy I became, when my Christmas wish, that we hear more from Michael Thomas, came true?

    Now I’m a little disappointed about the outcome of my New Year’s Wish.

    Here’s my wish, for those who have not been keeping it in mind, and wishing along with me (I know that’s a little bit self-absorbed, but, you know):

    December 31, 2012 at 11:16 am

    can someone please call me each morning to stop me from reading these. they make me sick for the rest of the day.
    Yesterday’s Sickener:
    http://www.nytimes.com/2012/12/31/business/settlement-expected-with-banks-over-home-loans.html

    So today, I, by accident of liking to read Yves and her commentariat, get to read the same NYT article a second time. And it makes me sick.

    I did find out, however, that I do not gain any immunity from repeated exposure to this madness.

    1. dolleymadison

      I hear ya! I keep trying to be one of the ones that look the other way…but it is so infuriating its hard to do. Maybe I should work for the government/hold office – that seems to be the cure for caring.

      1. DANNYBOY

        Dear dolleymadison,

        I should clarify my poition. I get it. I saw it (On the street, I always asked myself one question: “What are these guys doing?”. After about 30 years of asking, I continued that same question when I met with senior executive…you know the mob of Vice Chairmen, the gang of Presidents and the Liar #1 the Chairman. They, ON EVERY ACCOUNT, were lying and cheating.

        So, it’s that I don’t like reading the NYT. It’s more of the same.

        As to your plea: “I keep trying to be one of the ones that look the other way…but it is so infuriating its hard to do.” I can give you the only piece of advice that I have complete trust in. FIGHT, FIGHT, FIGHT.

        I have trust in that advice BECAUSE THE ALTERNATIVE IS SO AWFUL.

  7. Fraud Guy- Also

    Fox News is correct about one very important fact: The New York Times and other mainstream media have been in-the-tank for Obama since he first got the Democratic nomination in 2008.

    I do believe that, had McCain won in 2008, the NYT would have elevated mortgage and foreclosure fraud to “major story” status and assigned real resources to dig into the matter on a continuing basis.

    What the NYT and its allies just can’t accept is that the “Good Guys” (i.e., Democrats) are participants in a world-historical crime against the public. Hence the newspaper’s posture as a scribner for the Administration’s version of events.

      1. Nathanael

        Not always. Remember Judith Miller and the Iraq War sham.

        Most of the time the corporate press is in the tank for powerful people, period.

        This is why I get my news from foreign and local sources.

        1. NotTimothyGeithner

          Everyone should pledge to read only foreign news services for a month. Except for local news, there isn’t any reason to read American media outlets except for the same kind of morbid curiosity one has when they see a car wreck.

      2. NotTimothyGeithner

        Can we put to rest the idea that the press or the Democrats would have done their jobs if Republicans were in power? Chris Matthews talked himself into an on-air orgasm when Dubya pretended to land a plane. Dubya was a blithering hypocrite who never made any sense, and the press did back flips to remind us about the time Al Gore was taken out of context.

        The press is interested in war and a horse race.

    1. DANNYBOY

      The NYT is not the opposition to the Republicans, just as The Republicans are not the opposition party to the Democrats, just as the Courts are not the counterbalance to the Presidency and Congress, just as Congress is not the opposition to…

      Guess who they are IN opposition to?

  8. 2little2late

    Way back when I entered into a modification agreement with Countrywide following nine months of refaxing, after my AG in MN stepped in and called the office of the president, Angelo Mozilo, a.k.a Satan’s CFO, demanding action. CW’s response was to offer me a modification that raised my payments. I called my AG and said, “WTF?” The AG rep said, “Well, are you going to take it or not?” The only thing missing was the bloody horse head on my pillow.

    I was recently kicked out of court pro se, even though I had painfully fraudulent mortgage assignments, notary fraud, and two, count them, TWO notes supplied to the court. The judge has been known to lament that borrowers are attacking the financial system of the United States.

    I don’t blame Angelo. I blame all of us. Any society, to use the term extremely loosely, that allows nine million families to exchange living rooms with front doors for tent zippers has some serious communal personality flaws that need to be addressed ASAP. Possibly after the next nine million fraudulent foreclosure thefts something will be done. Probably not. And all at a time when our grafted legislators have decided that we the people should learn to do without food and medicine. Go figure.

    1. dolleymadison

      I am so sorry about that. Interesting that the Frank-Dodd act is named after “friends of Angelo.” You can’t make this stuff up. Repulsive.

    2. Nathanael

      While you’re filing appeals, get in touch with your local sheriff. Don’t forget, the bank gangsters need his cooperation in order to kick you out. The blatantly falsified paperwork may get his attention.

      Since it’s a fraud, it may also get the DA’s attention if you can find a way to talk to him.

      1. Howard Beale IV

        And you’ll be stopped courtesy Federal preemption, as we saw happen in Georgia and others.

    3. Alice

      What I am witnessing regarding the foreclosure fraud is Shame. The people I talk to just don’t understand they are victims of this ponzi scheme. They are ashamed that they can’t make their payments and the faux lenders, judges and sheriffs, etc. know this.

      I worked in the business and processed thousands of loans. I remember the shame when someone had to tell me they had had a bankruptcy. I treated their ‘confession’ as I did any other credit problem. I didn’t look down on them because it was more common than one can imagine. I still see that shame today when a friend admits to that ‘sin’.

      I see this shame now with these fraudelent foreclosures. People just need to move past the fact that they did wrong. They were victims of a well oiled machine driven by the engine called Mers…designed by the faux bankers, title companies and various other sorted entities. The endgame was to for them to have possession of every piece of property in the u.s. by any unsavory method possible. The title companies had to be in on it to ‘clean’ up the ‘problems’.

      The people must be educated and blogs like this are doing the educating. I applaud everyone who writes about this and all the imput from the posters. We have been indoctrinated by shame. When the Mortgage Bankers Association does a strategic default and gets rewarded, I have no words.

      1. 2little2late

        As to the title companies cleaning up the problems….from the OCC’s website, the foreclosure review was originally established to ”determine whether eligible homeowners suffered financial injury because of errors or other problems during their home foreclosure”, – so that – “where a borrower suffered financial injury as a result of such practices, the consent orders require remediation to be provided”. OK with that.

        But this new deal changes the OCC’s stated course from one of remunerating harmed and foreclosed borrowers to helping existing homeowners refinance, which is simply a form of title laundering and yet another bailout. “Under the terms of the settlement being negotiated, $6 billion would come from banks to be used for relief for homeowners, including reducing their principal, helping them refinance and donating abandoned homes, the people said.”

        This is money laundering, plain and simple, HSBC style, as well as another tax break for the banks. How could anyone in their right mind sign any document penned by these master thieves? And since when is a regulatory agency in the business of seeing that stolen homes are donated?

        WTF yet again.

        1. Alice

          Yes, ‘we will refinance that fraudulent loan with another fraudulent loan and then have you sign fraudulent paperwork to relieve us of all of the fraud and then we will do a fraudulent foreclosure and then we will sell the fraudulent foreclosed house when we feel like it because afterall it is sitting on our fraudulent balance sheet as well as the fraudulent mbs(s) that we fraudulently put it in and sooo many entities are claiming it as a fraudulent asset and everthing is good because fraudulent Mers has it all figured out.’

          1. dolleymadison

            LMAO – EXactly, Alice. And spot on about the shame comment a bit earlier…I never even missed a payment and people make me feel like the biggest deadbeat in the world – the Bank would NEVER do that…blah blah. Ugh. I had one attorney – after Ocwen LOST in court due to lack of standing – suggest I just refi and pay Ocwen off. For God’s sake…and when I refused said “The judge isn’t gonna give you a free house.” As if it is his to give.

  9. David Chaney

    Yves, I have been waiting for you to weigh in on this. Thank you. I am afraid that this means two things a) no money for the wronged (more money rolled into OCC to coddle the banks) b) if any action is to be taken, it will have to be by the homeowners.

    I am a small real estate investor. Filed CHapter 11 in 2008. Five properties total – 21 units. Still fighting with two banks that have refused my court ordered paymenmts. $100K for Chapter 11. $80K to sue one bank to stop foreclosure. Finally got a settlement just prior to trial to keep blg. and extend loan at market interest rate.

    Chase foreclosed on my five-plex on which I had been current on for two years. (A historical b;ldg. I spend five years restoring myself.) A former WaMu loan, which expired, couldn’t refi due to ruined credit by banks continuing to report me as late for refusing my court ordered payment.

    Bank put a receiver in place, paid off all my creditors and tried to get a discharge of my BK so I could file a new BK
    to save the Bldg.

    New BK judge, formerly worked for the U.S. Trustee investigating fraud. She HATES debtors. Would not discharge my BK and would not allow a new BK, despite the fact she had my complaint about bank A refusing my payments and ruining my credit. She was to hear the trial against the bank. In f
    I have had a front row seat to this disaster. Small real estate investor. Short form.

    Chapter 11. Lost one bldg. in pre-confirmation. Following confirmation Two banks refused my court ordered payments. Reported me as late to the credit bureaus.

    The ques

    1. David Chaney

      Sorry folks, this got posted prematurely. So depressing will spare you any more, but five years of fraud has worn me outl

      Bottom line, thanks to the settlement, no money for the wronged, and if you want justice or want to keep your home, the OCC says go ahead find $80K and sue the bank yourself. Be our guest. It really is a disgrace.

        1. Alice

          I can’t imagine what horrors await the lawyers that are doing the work for the faux banks. Do they not know about the sins of the father thing. My source tells me their suffering will be for seven generations.

          1. dolleymadison

            What about the sins of the attorneys for homeowners that sell their clients down the river? Before my case came up I had to sit through two case where they barely even put up the weakest of arguments for their clients – and then I saw them afterwards yucking it up in the courthouse cafeteria with the FC mill attorneys. To what circle of hell do these yokels belong?

  10. JEHR

    Well, Goldman Sachs, being special, you know, didn’t get in on the OCC agreement above; they made their own neat little deal:

    “The Federal Reserve on Thursday sanctioned Goldman Sachs GS -3.08% over deficient practices involving residential mortgage loan servicing and foreclosure processing at its former subsidiary, Litton Loan Servicing LP, in what’s commonly referred to as the “robo-signing” scandal. The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010 and provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified. The Fed added that monetary sanctions are “appropriate” and that it will announce them later.”

    See: http://news.firedoglake.com/2011/09/01/goldman-slapped-on-wrist-by-fed-over-robo-signing/

    Goldman got their own consultant to look through Litton loans for 2009 and 2010.

    Of course, Litton has long since been sold to Ocwen (another nefarious servicing company). There are hundreds if not thousands of unhappy Litton and Ocwen mortgage holders that will never get any satisfaction for Goldman’s frauds.

  11. Darla Hanger

    many of my friends did not have to provide dates as the form was three checkboxes. I did not provide datese as the dates they wanted I didn’t have off the top of my head… Are we allowed to add information after the notification we want review?

  12. Westcoastliberal

    According to the NYT story the banksters will be able to “donate” property they’ve foreclosed on as part of the $10 Billion. What a surprise! AND no mention of any compensation for those 300,000 of us who were paying attention and did painstakingly assemble a package requesting review. Zip zero nada after waiting since 12/11. And the statute of limitations continues to count down.

  13. Hugh

    No investigations and no prosecutions on the biggest series of interrelated frauds in human history were not enough. I expect statute of limitations will start kicking in on a lot of this stuff. These deals are just a final scrub to make sure that the guilty are never held accountable, disgorge their ill gotten gains, and make their victims whole.

    $10 billion for a get out of jail free card on hundreds of billions of fraudulent mortgages and foreclosures is chump change. As said above, the regulators aren’t stupid or incompetent. They have legal staffs and people who have worked in this area for years. They know the score. They know what is going on. They’re just working for the other side.

  14. sheila

    WOW!!!! Well I was one of those who got the kick out the door with fraud and now I unzip a Tent !!! The Lord don’t Sleep and there will be an end to this!!

    1. Alice

      This may sound very simple and naive but in my humble opinion, every loan has to be undone starting with origination. When the fraudulent foreclosure goes thru that is one more step that has to be undone. Every entity involved in foreclosing will be held accountable as well, everyone that has put their integrity and morality aside will pay. We really don’t know how this will play out but ruining lives doesn’t come with a big reward or medal. I shudder to think of the ramifications. Justice will be done, I really believe that.

  15. Lisa N.

    Dead on, Yves. Given the DOJ’s empty chatter in prosecuting financial institution white collar crime, especially well-documented cases of publicly outed financial institutions and their executives as you and others routinely identify, perhaps we would all be better off if funding for the DOJ’s “so-called” white collar crime units were to be terminated rather than our having to bank-roll their theatrical window dressings that fool no one but like-minded fools. Since they’re not enforcing the law, you’d think they’d impose a real fine. But the fines they impose aren’t up to snuff for a decent gratuity or tip for good service, which is what the perps are getting, if not great service, instead of punishment.

    A piece on the DOJ’s 2012 budget http://www.justice.gov/jmd/2012summary/pdf/fy12-bud-summary-request-performance.pdf helps explain the PRIORITY GOALS for the DOJ’s budget and why there are no meaningful 2012 white collar crime convictions.
    “In June 2009, OMB issued a Budget and Performance Guidance Memorandum requiring federal agencies to identify a limited number of Priority Goals and begin to define the strategies and means to achieve them – this was the first step toward developing the President’s agenda for building a high-performing government.
    The guidance stated that a “priority goal” is a measurable commitment to a specific result the Federal Government will deliver for the American people. These goals represent priorities for both the Administration and the agency, and have high relevance to the public or reflect the achievement of key agency missions. Given that the Priority Goals reflect a limited number of priorities, they do not fully reflect the agency’s strategic goals nor cover the entire agency mission. While the goals were initially designed to produce significant results by the end of FY 2011, OMB has requested that the goals be continued through FY 2012 and be included in the FY 2012 budget, funded within agency discretionary budget requests. The Priority Goal targets for FY 2010 and FY 2011 were developed, in part, with consideration towards the budget submissions for those respective years; reaching the targets listed for FY 2011 and FY 2012 are predicated on resource levels.
    The Department’s Priority Goals are not the Attorney General’s only high priority performance goals—the Department has many equally important goals that are not included here. The Priority Goals listed below are a small subset of those used to regularly monitor and report performance…
    White Collar Crime – Increase white collar caseload by five percent concerning mortgage fraud, health care fraud, and official corruption by FY 2011, with 90 percent of cases favorably resolved.
    The FY 2012 target for this goal is to continue to ensure that the level of effort will occur pertaining to white collar crime caseload, while continuing to resolve 90 percent of cases favorably. In FY 2010 the Department favorably resolved 92.2 percent of its white collar crime cases, surpassing its FY 2010 annual target. The increased white collar caseload target was missed by less than one percent.”
    It looks like they had no real goals to prosecute.

  16. schoene Leiche

    This is how kleptocracies implode. This is the terminal stage. At this point an African would know enough to get out by hook or crook and drive a cab in a viable country. But Americans have not shaken off their brainwashing yet. They can’t see that the rot is irreversible. The USA is dead. The people with money and common sense, the so-called 1%, are harvesting its organs and collagen and gold teeth, and putting little balls in its eye sockets to pretty it up. To survive, you need to stop pretending that you live in a country. You live in Hobbes’ state of nature.

      1. citalopram

        I’m not ready to call it quits yet. If the American People don’t rise up in protest, you can bet your bottom dollar America will be the next Columbia. She’ll still be hear, but Lady Liberty will be bound, gagged and dressed in an orange jumpsuit.

  17. Bravo

    Isn’t it about time to call for an end to the OCC? They couldn’t manage their way out of a barn, much less something like this mess. They can’t get to the closing table fast enough.

  18. diptherio

    Wish I would have read this sooner…

    “Reviewing the loan files is not going to get you there. You could either check a random sample of consumer records (which would be time consuming but give you insights you could not get any other way) or audit servicer software to see how payments were applied and processed.”-Yves Smith

    Well, Wells Fargo, for one, has already admitted, on the record, that their software regularly applies mortgage payments in violation of their own contracts, and also that their software mis-applys payments made to the bank in Bankruptcy cases, in violation of stays. Jones vs. Wells Fargo, Eastern District of Louisiana Bankruptcy Court (available on the msfraud.org site). The Judge in the case fined Wells Fargo $3.1 million after they admitted this and then refused to alter their software, opting instead for the fine (well, duh!).

    There are, at the very least, overcharges on every single Wells Fargo mortgage in default due to incorrect amortization caused by Wells applying payments first to fees and then to principal, interest and escrow, in violation of their own notes and common, human decency.

    Here’s the link (again) to my video version, for those who
    don’t like to read:
    http://www.youtube.com/watch?v=nH7cveP2rNc

  19. Beleck

    Americans have no clue what is going on. the local press/news focus is local and dumbs down with local “flavor”. Education and interest is geared to local stuff. i know most people couldn’t find Canada or Mexico on the map if it wasn’t written as such. much less capitals of neighboring States.

    the divide and conquer works so well. and of course, the pride and joy of us vs them, Sports rivalries. as if Americans could care one iota about the other guy. depressing how well envy, greed, self interest work to “divest” interest in others. Christians, my eye! then again, capitalism has worked to keep us at the “Lord of the Flies” level. the successful Republican “Government is the Problem,” means we can’t expect to find help from those in power.

    what a perfect setup. implosion, theft, graft, by all the Government people, what few honest ones plug one or two holes in the crumbing “full faith and honor” of what used to be America. the whole nine yards, down to the core, rotten stinking corrupt/ bought off . does anyone actually think people care what going on in Europe, or know to care?, other than hearing about those “Lazy Greeks” stealing from the “Industrious Germans/Finns/Dutch. The Press is part and parcel of the problem. and those who may care, feel like “WTF” can i do?

    ignorance is a gift to those, unless you have been personally affected or for some reason choose to care. Does anyone think the story of the “Neoliberal” Latvia or Chile will get told honestly. even the Rubes think the NYTimes is a “liberal” paper. the rot is so deep.

    Bread and circuses, so the theft can go on.

  20. kipling

    I could not dig: I dared not rob:
    Therefore I lied to please the mob.
    Now all my lies are proved untrue
    And I must face the men I slew.
    What tale shall serve me here among
    Mine angry and defrauded young?

    Practical advice from one who has succeeded: Start at the grass roots. If your state has laws against filing fraudulent lien or claim against property where the filing party has no interest, go into court. In Texas it’s an ex parte hearing, and ask the judge to declare the lien fraud. I did, and it worked. I have a judgment against a lawyer and his law firm, MERS and GMAC for filing a fraud lien against my home in Texas. In Texas as I believe in other states, this is a state jail felony. Instead of calling attention to myself, I set about taking this ruling to the securities exchange commission, and the Attorney General in my state. Very quietly and off the radar I have been keeping the pressure on to get these people prosecuted. I have succeeded in getting an investigation launched against Rescap this is with a natiobnal regualtor, and the people who filed the fraud lien against my home. In Texas, the statute is 51.902, 51.903 Texas Government Code and 12.002 Texas Civil practices and remedies code. I am aware that there are other states that have similar laws pertaining to liens. Find yours and good luck. I will not rest until I succeed in bring these people to trial and to justice.
    Kipling

  21. Robert Tatge

    They need to return the Foreclosed Home, and pay the last loan APPRASIED Value to the persons they wrongfully foreclose on.without prejudice, rlt

    3/28/2012/ up-dated 4/23/2012, 4/26/2012, 5/14/2012
    Robert L. Tatge
    13100 Skyline Drive
    P.O. Box 363
    Spicer, MN. 56288 Phone 320-796-2314
    Fifth Third Bank
    Kevin T. Kabat, President & CEO Fax 513-358-3493 Madisonville Operations Center
    MD1MOC2N
    Cincinnati, OH. 45263
    Dear President Mr. Kabat:
    RE: Mortgage Loan: 404876203 Three situations, (presented on 3/28/2012,) occurred during the Foreclosure process that I believe were important, illegal and unfairly place on me, therefore to consider this Foreclosure invalid.
    * Forced Placed Hazard Insurances, $500.00 per month. Inception June 10, 2008. Just months from refinancing loan from Country-wide Home Loans Exhibit” A”, (9 -Pages)
    * Mortgage Broker manipulation of appraisal, loan application with Fifth Third Bank, and my credit. Exhibit “B,” (8 – Pages)
    * The “Forbearance Plan” offered: The due dates (2020) were set-up all wrong. Exhibit “C”, (1 – Pages)
    * Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (This addendum added 4/23/2012.) Fifth Third Bank failed to apply payment correctly so not to appear, (back dated to July 2010) on Form 1098 Mortgage Interest Statement in year 2011, amount $510.00. COUNTRYWIDE, in July 2003failed to record $606.12 Borrower has no records of a record from them. Exhibit “C-A”, (5– Pages)
    * Conflicting and imbeciles’ amount stated on the Foreclosure Notices. Exhibit “D-E”,
    (8-Pages)

    Origination Misconduct – Unfair and Deceptive Origination Practices (This addendum added 04/26/2012) * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.
    * Financial Injury or Other Remediation. The charge change because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. (Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, effect had to cash in 401 K-plan, retirement. Exhibit “F”, (1-Page)

    Forced to Cash in 401-k plan to make graduated payments, because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. Tax forms and amount Federal $2,192.61. Form 1099-R, 2008 Agriliance Savings Builder 401(K) Plan: total distribution $15,436.91 Exhibit “G”, (1-page)
    COUNRTYWIDE HOME LOANS, March 2003 purchased Forced Placed Hazard Insurances, on Borrower and they had paid for this Insurance from Escrow and charged $855.00 premium March 2, 2003 Policy #N-0200487, stated “ there was a lapse in your insurance coverage”, I contact my Insurance, and they stated I had uninterrupted insurance since the purchase of the property in June 12, 2002 Exhibit “H:”(7-Pages)
    Forced to Cash in 401-k plan to make graduated payments, Tax forms and amounts. Form 1099-R, 2002 CO-OP 401(K)n Plan: total distribution $11,002.50 Exhibit “I:” (1-PAGE)

    Dear Review Board, I’m writing this letter to explain to you some of the discrepancy during the Foreclosure process that I had to go through. There are several, not being a lawyer that I found and I’m in the belief that there are many more that really brought the Foreclosure to a head. The one that actually broke my back was the Forced Placed Hazard Insurances, $500.00 more a month when I was living on pay-check to pay-check. The additional charge forced me to cash in stock and my 401K retirement plan, paying the extra taxes that went along with the process. After paying many months with the addition charges, I started to lose ground. Until recently I knew, I had insurance since the original mortgage with Country-wide Home Loans, and it was required for the loan with Fifth Third Bank. Just lately, I was with my Lawyer, we called, Pioneer Heritage Insurance, PO Box 716, Spicer, MN. 56288, phone# (320) 796-2169. Gentlemen, they stated I had continued and uninterrupted insurance on the property and they fax over the proof:

    Exhibit” A”. The reason this was wrong, was that I had insurance and Fifth Third Bank paid for it out of my Escrow every year since origination of the Home Loan Mortgage, Fifth Third Bank approved for me.
    My original home mortgage loan made by FIFTH THIRD BANK was signed by me, Robert L. Tatge (a single person) on January 4, 2008 for $310,000.00 @ 6.375% for 30years, (on July 1, 2008 they FORCE PLACED HAZARD INSURANCE on the borrower) on a refinanced loan made prior with COUNTRY-WIDE HOME LOANS back on JUNE 12, 2002, for $178,817.91 @ 7% for 30 years.

    The NEXT problem that throws up a red flag is the mortgage broker that put the loan application together for our approvals. I’m not sure of his name, and you probably could help me out with that. He said, He could improve my credit, and I could take cash out, that was very cheap money, because of the high equity I had in my home. This was highly suspicious, not taking into consideration my age or ability to pay the extra money back. Now that I look back, he found and new ways to derive benefit by manipulation. My home was built year 1975: (The TRUTH 1900). Appraisal manipulation, to my understanding this broker wasn’t satisfied with the first appraisal from: Forsythe Appraisals, LLC, 54 28th avenue North, St. Cloud, MN. 56303 Phone 320-259-8958 He asked the appraiser to treat the property like it was on Lake Minnetonka, so the second time it came in at $420,000. It satisfied the loan guidelines. Then he sent me two checks, one he asked if I would destroy, I did, the other I cashed:
    Exhibit “B,” (He said, he had other companies,) that’s why the check was drawn on: MJC ENTERPRISES LLC, 5115 EXCELSIOR BLVD., SUITE 422, SAINT LOUIS PARK, MN 55416
    This was unfair because my property tax statements for years 2007 through 2009 stated: MARKET VALUE ESTIMATED $324,700 IN 2007/2008 which is $95,300 less than appraisal. The second property tax statement for years 2008/2009 which is $92,000 less than appraisal.
    Origination Misconduct (This addendum added 04/26/2012) Unfair and Deceptive Origination Practices * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.
    Exhibit “B, 1” Appraisal done by, Becky Lyn Storms, of Forsythe Appraisals, LLC, 222 E. Little Canada Road, Ste 175, St. Paul, MN 55117 , was rejected by Broker and my money was refunded, leaving me to think I had no Appraisal on my property. (Lender: TSI/QUICKEN LOANS) Invoice# 70601499, Invoice Date: 12/10/2007, File#70601499, TSI-112907-0126-1 Appraisal is 20 pages, included within is proof on page 3 OPINION OF SITE, VALUE by Cost approach…=$423200.00 Than page 10 of the same, states Date 12/10/2007 and APPRAISAL FEE: $325.00 Full copy of Appraisal is available on request.
    Exhibit “B, 2” Appraisal done by, Paul J. Loven, of Infinite Appraisal Service, 19475 109th Street, Big Lake, MN 55309 (www.state.mn.us/mn/…/Appraiser_Enforcement_Actions_02141111…http://www.google.com/Allege Resp established a predetermined value on appraisals; on numerous occasions, Against: Appraiser, Location: ST PAUL, MN … Against: Appraiser, Location: PRIOR LAKE, MN….. Allege respondent rendered appraisal services in a careless or negligent manner by…. Against: Appraiser, Location: BIG LAKE, MN)
    I did not knowingly pay for this service and wonder who did, so I try to call Infinite Appraisal Service, and the number 763-263-3335 is no longer in service. According to the Appraisal done by them the APPRAISED VALUE OF SUBJECT PROPERTY $448,000.00, LENDER/ CLINT … Quicken Loans, 20555 Victor Parkway, Livonia, mi 48152, File # 071106-1, TSI- 110607-0448-8 . This is probably the Appraisal FIFTH THIRD BANK has on file: almost the same date 11/11/2007 but the second appraisal came in $24,800.00 more.
    Exhibit “B, 3” Letter, dated 01/27/2012 from Office of the President, Paul-Allen Bixler, states (“the Bank did not have two appraisals used to review of the property”).
    I ask for a modification JUNE, 2009 and was denied because of insufficient income; I keep up my requests and hired a lawyer, Avi Liss, Liss Law, LLC., Hereford Street, Boston, MA, 02115 (W) phone 617-778-0363 Finely brought me a modification on August 1, 2009 (lawyer said it was the Best he could do!) Loan Amount $327,410.93 @ 5.375% for 40 years, graduated principal by $17,410, lowered interest by 1%, making the pay off difference before the modification the principal was $310,000,00 interest $386,238.81 = $696,238.81… New Modified Mortgage 40 years, principal $327,410.93, interest $489,836.12 = $817,247,247.05… The difference of $121,008.24 it was Unaffordable, I signed it at the Lawyers suggestion. Beginning with the payment due 08/01/2009 monthly Including escrow were $2,135.51 Knowing this modification wasn’t something I could afford , I asked for HELP, A FORBEARENCE PLAN was offered:
    Exhibit “C,” The “Forbearance Plan” offered: The due dates were set-up all wrong.(1-page)
    Exhibit-“C-A-1″: * Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (Question of recording of draft on Jan 12, 2011 of $510.00 and following tax Form 2011 form 1098 not show that record). Fifth Third Bank (Letter from F.E. Troncone, Senior vice. President) January 12, 2011, sent confirmation on “Notice to Debit Applied to Account “, $510.00 was authorized to be deducted from my checking account, applying to your Fifth Third account ending in 6203. Per Phone to 1-800-972-3030 I asked, if the Jan 12, 2011 withdrawal was recorded and where, the representative said, she “it was recorded back to July of 2010”. (1-PAGE)
    “C-A-2” Print out from my Bank, Lake Region Bank on 4/23/2012, states this was completed, January 13, 2011 also a transactions for Dec 10, 2010 of $510.00 (1-PAGE)
    “C-A-3” 2010 FORM 1098 MORTGAGE INTEREST STATEMENT, showing 2 entries of $510.00 (1-PAGE)
    “C-A-4” Bank Money Order, 4215901403 from Lake Region Bank sent to Fifth Third Bank, 11/10/2010 for $510.00 Question on recording data? (1-PAGE) After finding that error, I found another Bank Money Order, 4918708457, dated July 5, 2003 made out to COUNTRYWIDE for $606.12 that I can’t find documentation on? (2-pages)

    The MIXED-UP misrepresentation and wrongful doing , on all FORECLOSURE NOTICE’S sent out by the Lawyers representing Fifth Third BANK: Usset, Weingarden & Liebo, PLLP, 4500 PARK GLEN RD, #300, MINNEAPOLIS, MN 55416, PHONE 952-925-6888, Knowingly this is information sent to the lawyers from Fifth Third Bank, mislead the mortgagee, and probably the sale of the property at Sheriff’s Sale.
    Exhibit “D,” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (3-pages)
    #1: March 9, 2009 $12,880.19
    #2: March 9, 2009 $15,276.19
    Exhibit “E:” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (5-pages)
    #1: March 22, 2011 Fifth Third Bank said I owed $2,365.80 to reinstate mortgage.
    #2: March 22, 2011 Fifth Third Bank said I owed $3,874.40 to reinstate mortgage.
    #3: March 22, 2011 Fifth Third Bank said I owed $35,100.90 to reinstate mortgage.
    Exhibit “F:” Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, because of Forced Placed Insurance, effect had to cash in 401 K-plan, retirement. (1-page)
    Exhibit “G:” Forced placed insurance caused me to Cash in 401-k plan to make graduated payments. Tax forms and amounts. Harming my future retirement funds. (1-page)
    Exhibit “H:” Because I had found Fifth Third Bank in wrong doing in placing Forced Placed Insurance on my account, I searched and found Countrywide Home Loans had done the same thing to me prior: Document, Dated March 2, 2003, less than a year after I purchased the property in June of 2002. The Insurance Department said: The Insurance purchased by Countrywide on the property was canceled, but they charged a premium in the amount of $855.00 for a so called lap in coverage. My Insurance, I contacted and they said, they had proof of uninterrupted insurance since the purchase of the property. (7-pages)
    Exhibit “I:” The cause of Force placed Insurance, Countrywide Home Loans was, I had to cash in a 401 (k) plan, totaling $11002.50 and pay a substantial tax of $2200.50 federal and state.
    .
    Exhibit “J:” I had a 3 Hernia Operation on August 5, 2011 @ the VA Hospital in Minneapolis, MN. I had to stay in the hospital until late December, because I was on a Vac healing machine that restricted my staying in the hospital and their rules. Outside contact was difficult. I still had a home health nurse that comes to my home every Wednesday until Mid-April. Fifth Third Bank knew of my operation and still proceeded with the foreclosure by having the sheriff’s Sale on Nov 16, 2011.

    The information the broker collected was suspicious, wrong, and different, I realize now. Forced Hazard Insurance should have been follow-up at enforcement. And I just do not understand the lesser amounts to reinstate the mortgage, it was confusing on the Foreclosure Notices and made it impossible to redeem, also difficult to sell.
    Discussion: When my dream home was foreclosed on, my heart was broken. I try my best with circumstances beyond my control. Lawyers were so expensive and I currently couldn’t afford one, and Legal Aid lawyers were the worst of all, because they found nothing wrong with the FORECLOSURE and suggest I find another place to live by late January 2012. I hope you would look into this matter. I still care for this home, and strongly want it back with punitive damages. I’m writing because the Office of the Comptroller of the Currency (OCC) recommends that I should attempt to resolve my complaint with FIFTH THIRD BANK first. I have sent letters explaining what I thought was wrongly process and they seem to find ways to get around the wrong doing or had it covered up. The second and final Eviction Hearing was on May3, 2012, I was Evicted with a SETTLEMENT AGREEMENT, vacate date June 7, 2012, and I had to sign a Waiver and Release, any and all my rights to appeal, I signed with my name and Without prejudice, The lawyers said, That was a deal breaker and said if I wanted more time to move out, I was to cross-out the Without prejudice, and initial. I did. Exhibit “K:” (8-PAGES)
    After all my struggles to keep my home, the Mortgage Company has seem to prevail and the only ones that can HELP in my situation is the OCC, according to Bill Gosiger from the Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155
    I’m including a couple more documents I believe to be important. Also an Exiting Strategy that I offered Fifth Third Bank they totally ignored.

    Mr. Robert L. Tatge 4/26/2012, up-dated 4/23/2012, 4/26/2012, E-MAIL: robtat@peoplepc.com Cc: Usset, Weingarden &Liebo, PLLP, Attn; Amy Van Zummeren @ FAX: 952-925-5879 Cc: Independent Foreclosure Review (OCC), (Letter) PO BOX 2587, Fairbault, MN 55021-9981 Attn: Paul-Allen Bixler, Regulatory Support Specialist Office of the President: Fax 513-358-3493
    Cc: Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155 Cc: Jerome A. Ritter Attorney at Law, FAX: 651-222-1263

    1. ROBERT TATGE

      3/28/2012/ up-dated 4/23/2012, 4/26/2012, 5/14/2012
      Robert L. Tatge
      13100 Skyline Drive
      P.O. Box 363
      Spicer, MN. 56288 Phone 320-796-2314
      Fifth Third Bank
      Kevin T. Kabat, President & CEO Fax 513-358-3493 Madisonville Operations Center
      MD1MOC2N
      Cincinnati, OH. 45263
      Dear President Mr. Kabat:
      RE: Mortgage Loan: 404876203 Three situations, (presented on 3/28/2012,) occurred during the Foreclosure process that I believe were important, illegal and unfairly place on me, therefore to consider this Foreclosure invalid.
      * Forced Placed Hazard Insurances, $500.00 per month. Inception June 10, 2008. Just months from refinancing loan from Country-wide Home Loans Exhibit” A”, (9 -Pages)
      * Mortgage Broker manipulation of appraisal, loan application with Fifth Third Bank, and my credit. Exhibit “B,” (8 – Pages)
      * The “Forbearance Plan” offered: The due dates (2020) were set-up all wrong. Exhibit “C”, (1 – Pages)
      * Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (This addendum added 4/23/2012.) Fifth Third Bank failed to apply payment correctly so not to appear, (back dated to July 2010) on Form 1098 Mortgage Interest Statement in year 2011, amount $510.00. COUNTRYWIDE, in July 2003failed to record $606.12 Borrower has no records of a record from them. Exhibit “C-A”, (5– Pages)
      * Conflicting and imbeciles’ amount stated on the Foreclosure Notices. Exhibit “D-E”,
      (8-Pages)

      Origination Misconduct – Unfair and Deceptive Origination Practices (This addendum added 04/26/2012) * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.
      * Financial Injury or Other Remediation. The charge change because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. (Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, effect had to cash in 401 K-plan, retirement. Exhibit “F”, (1-Page)

      Forced to Cash in 401-k plan to make graduated payments, because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. Tax forms and amount Federal $2,192.61. Form 1099-R, 2008 Agriliance Savings Builder 401(K) Plan: total distribution $15,436.91 Exhibit “G”, (1-page)
      COUNRTYWIDE HOME LOANS, March 2003 purchased Forced Placed Hazard Insurances, on Borrower and they had paid for this Insurance from Escrow and charged $855.00 premium March 2, 2003 Policy #N-0200487, stated “ there was a lapse in your insurance coverage”, I contact my Insurance, and they stated I had uninterrupted insurance since the purchase of the property in June 12, 2002 Exhibit “H:”(7-Pages)
      Forced to Cash in 401-k plan to make graduated payments, Tax forms and amounts. Form 1099-R, 2002 CO-OP 401(K)n Plan: total distribution $11,002.50 Exhibit “I:” (1-PAGE)

      Dear Review Board, I’m writing this letter to explain to you some of the discrepancy during the Foreclosure process that I had to go through. There are several, not being a lawyer that I found and I’m in the belief that there are many more that really brought the Foreclosure to a head. The one that actually broke my back was the Forced Placed Hazard Insurances, $500.00 more a month when I was living on pay-check to pay-check. The additional charge forced me to cash in stock and my 401K retirement plan, paying the extra taxes that went along with the process. After paying many months with the addition charges, I started to lose ground. Until recently I knew, I had insurance since the original mortgage with Country-wide Home Loans, and it was required for the loan with Fifth Third Bank. Just lately, I was with my Lawyer, we called, Pioneer Heritage Insurance, PO Box 716, Spicer, MN. 56288, phone# (320) 796-2169. Gentlemen, they stated I had continued and uninterrupted insurance on the property and they fax over the proof:

      Exhibit” A”. The reason this was wrong, was that I had insurance and Fifth Third Bank paid for it out of my Escrow every year since origination of the Home Loan Mortgage, Fifth Third Bank approved for me.
      My original home mortgage loan made by FIFTH THIRD BANK was signed by me, Robert L. Tatge (a single person) on January 4, 2008 for $310,000.00 @ 6.375% for 30years, (on July 1, 2008 they FORCE PLACED HAZARD INSURANCE on the borrower) on a refinanced loan made prior with COUNTRY-WIDE HOME LOANS back on JUNE 12, 2002, for $178,817.91 @ 7% for 30 years.

      The NEXT problem that throws up a red flag is the mortgage broker that put the loan application together for our approvals. I’m not sure of his name, and you probably could help me out with that. He said, He could improve my credit, and I could take cash out, that was very cheap money, because of the high equity I had in my home. This was highly suspicious, not taking into consideration my age or ability to pay the extra money back. Now that I look back, he found and new ways to derive benefit by manipulation. My home was built year 1975: (The TRUTH 1900). Appraisal manipulation, to my understanding this broker wasn’t satisfied with the first appraisal from: Forsythe Appraisals, LLC, 54 28th avenue North, St. Cloud, MN. 56303 Phone 320-259-8958 He asked the appraiser to treat the property like it was on Lake Minnetonka, so the second time it came in at $420,000. It satisfied the loan guidelines. Then he sent me two checks, one he asked if I would destroy, I did, the other I cashed:
      Exhibit “B,” (He said, he had other companies,) that’s why the check was drawn on: MJC ENTERPRISES LLC, 5115 EXCELSIOR BLVD., SUITE 422, SAINT LOUIS PARK, MN 55416
      This was unfair because my property tax statements for years 2007 through 2009 stated: MARKET VALUE ESTIMATED $324,700 IN 2007/2008 which is $95,300 less than appraisal. The second property tax statement for years 2008/2009 which is $92,000 less than appraisal.
      Origination Misconduct (This addendum added 04/26/2012) Unfair and Deceptive Origination Practices * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.
      Exhibit “B, 1” Appraisal done by, Becky Lyn Storms, of Forsythe Appraisals, LLC, 222 E. Little Canada Road, Ste 175, St. Paul, MN 55117 , was rejected by Broker and my money was refunded, leaving me to think I had no Appraisal on my property. (Lender: TSI/QUICKEN LOANS) Invoice# 70601499, Invoice Date: 12/10/2007, File#70601499, TSI-112907-0126-1 Appraisal is 20 pages, included within is proof on page 3 OPINION OF SITE, VALUE by Cost approach…=$423200.00 Than page 10 of the same, states Date 12/10/2007 and APPRAISAL FEE: $325.00 Full copy of Appraisal is available on request.
      Exhibit “B, 2” Appraisal done by, Paul J. Loven, of Infinite Appraisal Service, 19475 109th Street, Big Lake, MN 55309 (www.state.mn.us/mn/…/Appraiser_Enforcement_Actions_02141111…http://www.google.com/Allege Resp established a predetermined value on appraisals; on numerous occasions, Against: Appraiser, Location: ST PAUL, MN … Against: Appraiser, Location: PRIOR LAKE, MN….. Allege respondent rendered appraisal services in a careless or negligent manner by…. Against: Appraiser, Location: BIG LAKE, MN)
      I did not knowingly pay for this service and wonder who did, so I try to call Infinite Appraisal Service, and the number 763-263-3335 is no longer in service. According to the Appraisal done by them the APPRAISED VALUE OF SUBJECT PROPERTY $448,000.00, LENDER/ CLINT … Quicken Loans, 20555 Victor Parkway, Livonia, mi 48152, File # 071106-1, TSI- 110607-0448-8 . This is probably the Appraisal FIFTH THIRD BANK has on file: almost the same date 11/11/2007 but the second appraisal came in $24,800.00 more.
      Exhibit “B, 3” Letter, dated 01/27/2012 from Office of the President, Paul-Allen Bixler, states (“the Bank did not have two appraisals used to review of the property”).
      I ask for a modification JUNE, 2009 and was denied because of insufficient income; I keep up my requests and hired a lawyer, Avi Liss, Liss Law, LLC., Hereford Street, Boston, MA, 02115 (W) phone 617-778-0363 Finely brought me a modification on August 1, 2009 (lawyer said it was the Best he could do!) Loan Amount $327,410.93 @ 5.375% for 40 years, graduated principal by $17,410, lowered interest by 1%, making the pay off difference before the modification the principal was $310,000,00 interest $386,238.81 = $696,238.81… New Modified Mortgage 40 years, principal $327,410.93, interest $489,836.12 = $817,247,247.05… The difference of $121,008.24 it was Unaffordable, I signed it at the Lawyers suggestion. Beginning with the payment due 08/01/2009 monthly Including escrow were $2,135.51 Knowing this modification wasn’t something I could afford , I asked for HELP, A FORBEARENCE PLAN was offered:
      Exhibit “C,” The “Forbearance Plan” offered: The due dates were set-up all wrong.(1-page)
      Exhibit-“C-A-1″: * Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (Question of recording of draft on Jan 12, 2011 of $510.00 and following tax Form 2011 form 1098 not show that record). Fifth Third Bank (Letter from F.E. Troncone, Senior vice. President) January 12, 2011, sent confirmation on “Notice to Debit Applied to Account “, $510.00 was authorized to be deducted from my checking account, applying to your Fifth Third account ending in 6203. Per Phone to 1-800-972-3030 I asked, if the Jan 12, 2011 withdrawal was recorded and where, the representative said, she “it was recorded back to July of 2010”. (1-PAGE)
      “C-A-2” Print out from my Bank, Lake Region Bank on 4/23/2012, states this was completed, January 13, 2011 also a transactions for Dec 10, 2010 of $510.00 (1-PAGE)
      “C-A-3” 2010 FORM 1098 MORTGAGE INTEREST STATEMENT, showing 2 entries of $510.00 (1-PAGE)
      “C-A-4” Bank Money Order, 4215901403 from Lake Region Bank sent to Fifth Third Bank, 11/10/2010 for $510.00 Question on recording data? (1-PAGE) After finding that error, I found another Bank Money Order, 4918708457, dated July 5, 2003 made out to COUNTRYWIDE for $606.12 that I can’t find documentation on? (2-pages)

      The MIXED-UP misrepresentation and wrongful doing , on all FORECLOSURE NOTICE’S sent out by the Lawyers representing Fifth Third BANK: Usset, Weingarden & Liebo, PLLP, 4500 PARK GLEN RD, #300, MINNEAPOLIS, MN 55416, PHONE 952-925-6888, Knowingly this is information sent to the lawyers from Fifth Third Bank, mislead the mortgagee, and probably the sale of the property at Sheriff’s Sale.
      Exhibit “D,” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (3-pages)
      #1: March 9, 2009 $12,880.19
      #2: March 9, 2009 $15,276.19
      Exhibit “E:” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (5-pages)
      #1: March 22, 2011 Fifth Third Bank said I owed $2,365.80 to reinstate mortgage.
      #2: March 22, 2011 Fifth Third Bank said I owed $3,874.40 to reinstate mortgage.
      #3: March 22, 2011 Fifth Third Bank said I owed $35,100.90 to reinstate mortgage.
      Exhibit “F:” Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, because of Forced Placed Insurance, effect had to cash in 401 K-plan, retirement. (1-page)
      Exhibit “G:” Forced placed insurance caused me to Cash in 401-k plan to make graduated payments. Tax forms and amounts. Harming my future retirement funds. (1-page)
      Exhibit “H:” Because I had found Fifth Third Bank in wrong doing in placing Forced Placed Insurance on my account, I searched and found Countrywide Home Loans had done the same thing to me prior: Document, Dated March 2, 2003, less than a year after I purchased the property in June of 2002. The Insurance Department said: The Insurance purchased by Countrywide on the property was canceled, but they charged a premium in the amount of $855.00 for a so called lap in coverage. My Insurance, I contacted and they said, they had proof of uninterrupted insurance since the purchase of the property. (7-pages)
      Exhibit “I:” The cause of Force placed Insurance, Countrywide Home Loans was, I had to cash in a 401 (k) plan, totaling $11002.50 and pay a substantial tax of $2200.50 federal and state.
      .
      Exhibit “J:” I had a 3 Hernia Operation on August 5, 2011 @ the VA Hospital in Minneapolis, MN. I had to stay in the hospital until late December, because I was on a Vac healing machine that restricted my staying in the hospital and their rules. Outside contact was difficult. I still had a home health nurse that comes to my home every Wednesday until Mid-April. Fifth Third Bank knew of my operation and still proceeded with the foreclosure by having the sheriff’s Sale on Nov 16, 2011.

      The information the broker collected was suspicious, wrong, and different, I realize now. Forced Hazard Insurance should have been follow-up at enforcement. And I just do not understand the lesser amounts to reinstate the mortgage, it was confusing on the Foreclosure Notices and made it impossible to redeem, also difficult to sell.
      Discussion: When my dream home was foreclosed on, my heart was broken. I try my best with circumstances beyond my control. Lawyers were so expensive and I currently couldn’t afford one, and Legal Aid lawyers were the worst of all, because they found nothing wrong with the FORECLOSURE and suggest I find another place to live by late January 2012. I hope you would look into this matter. I still care for this home, and strongly want it back with punitive damages. I’m writing because the Office of the Comptroller of the Currency (OCC) recommends that I should attempt to resolve my complaint with FIFTH THIRD BANK first. I have sent letters explaining what I thought was wrongly process and they seem to find ways to get around the wrong doing or had it covered up. The second and final Eviction Hearing was on May3, 2012, I was Evicted with a SETTLEMENT AGREEMENT, vacate date June 7, 2012, and I had to sign a Waiver and Release, any and all my rights to appeal, I signed with my name and Without prejudice, The lawyers said, That was a deal breaker and said if I wanted more time to move out, I was to cross-out the Without prejudice, and initial. I did. Exhibit “K:” (8-PAGES)
      After all my struggles to keep my home, the Mortgage Company has seem to prevail and the only ones that can HELP in my situation is the OCC, according to Bill Gosiger from the Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155
      I’m including a couple more documents I believe to be important. Also an Exiting Strategy that I offered Fifth Third Bank they totally ignored.

      Mr. Robert L. Tatge 4/26/2012, up-dated 4/23/2012, 4/26/2012, E-MAIL: robtat@peoplepc.com Cc: Usset, Weingarden &Liebo, PLLP, Attn; Amy Van Zummeren @ FAX: 952-925-5879 Cc: Independent Foreclosure Review (OCC), (Letter) PO BOX 2587, Fairbault, MN 55021-9981 Attn: Paul-Allen Bixler, Regulatory Support Specialist Office of the President: Fax 513-358-3493
      Cc: Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155 Cc: Jerome A. Ritter Attorney at Law, FAX: 651-222-1263
      NOTE: 5/3 BANK ADMITTED TO COVER-UP ON “FORCEPLACED INSURANCE”, I HAVE A LETTER FROM THE “OFFICE OD THE PRESIDENT”, ADMITTED FRAUD!

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