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'Robo-Signer' Foreclosure Scandal May Threaten Fundamental Financial Stability, Government Watchdog Warns

The ongoing "turmoil" roiling megabanks and their faulty home foreclosure practices may represent deeper, more systemic problems regarding the origination, transfer and ownership of millions of mortgages, potentially putting Wall Street on the hook for billions of dollars in unexpected losses, threatening to undermine "the very financial stability that the Troubled Asset Relief Program was designed to protect," a government watchdog warns in a new report.

Recent revelations regarding mortgage companies' use of "robo-signers" when processing foreclosure documents "may have concealed much deeper problems in the mortgage market," according to the Tuesday report by the Congressional Oversight Panel, an office formed to keep tabs on the bailout.

Those initial disclosures led big banks like JPMorgan Chase, Wells Fargo and Bank of America to temporarily halt home repossessions. In turn, all 50 state attorneys general, federal prosecutors and a host of federal agencies are probing exactly what went wrong as the industry fights to calm regulators, investors, and members of Congress by arguing the revelations represent isolated cases that are being quickly resolved.

http://www.huffingtonpost.com/2010/11/16/robosigners-foreclo...




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If the banks are bankrupt

Put them through an orderly liquidation.

_________________________________

Freedom - Peace - Prosperity

Usually Monopoly Boyz Fed in the Receivership Trough. Swine!

No. There will be no orderly demise.

Monopoly Boyz are the Fed. Receivership Trough is where Swine feed when there ain't nothing better to root up. They'll bust down your gate. You think swine can't go though a gate? Try wrestling one. You will both get muddy, & the pig will like it.

Entertaining a harem would be cheaper.

Preemptive Monopoly Boys Dastardly Deeds, Bad Banks Felled, Cleared for Worse to Rise... The Fed Prep Walk, circa 1908.

THE KNICKERBOCKER GETS 2 WEEKS MORE
MARK TWAIN'S WARNING,
New York Times, January 19, 1908
http://www.twainquotes.com/19080119.html

... Knickerbocker will be delivered over to a permanent receivership. I have already tried a permanent receivership once and did not like the result.

It costs more to keep a permanent receive than it does to keep a harem. Anybody who has had experience in these matters will endorse this statement. In the long run - in the very long run - we got some of our money.

US Piggy-Bank Pigs... Snapshot & Currnt Accounts,1 Pg Circa 2010
Submitted by Mark Twain on Mon, 08/30/2010 - 13:13.
http://www.dailypaul.com/node/143452#comment-1525822
Just How Big Are Our US Monopoly Boys?
I recommend this whole forum & comments from the unbearable hot August Banking, 2010.

Does owning the central bank in 165 countries mean you control the world?
http://www.dailypaul.com/node/143452
Submitted by Ralph Waldo on Mon, 08/30/2010

* Daily Paul Liberty Forum *

What's the significance of having a central bank within a country and why should you concern yourself, your family and colleagues? Ralph Waldo @ DailyPaul.com

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

DP on NPR Radio, Florida Foreclosure Matt Tabbai, Rolling Stone!

DP Bobbyw24 on NPR Radio, Florida w/ Matt Tabbai, Rolling Stone!
http://www.dailypaul.com/node/149256#comment-1584111

Broadcast available to all struggling with home foreclosure. Get it while it is hot!

PS: Bobby, consider renaming your long "DPer" forum title linked here to my shorter title heading my postcard. The Nov 17 date is properly recording in history. "DPer" is not a common search term. Few beyond DailyPaul search for "BobbyW24."

As your star rises to light the way through the darkness of foreclosures, choose a nickname that relates to which you stand. For example, "HomeGate." Protecting your home. Perhaps you might browse common search terms & find one that suits you.

... or as in my case, Mark Twain, to the depths which I sink...

Respectfully yours.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Thanks M.T. I will take it

Thanks M.T. I will take it under advisement, as a judge would say
.

Follow me on Twitter for breaking news from a libertarian perspective

www.twitter.com/AbolishTheFed

Fair & honest... all that is expected of a judge.

I hold you in higher esteem. But, that is my reckoning.

Mark Twain, to the depths which I sink... a plumb-bob to ensure safe Riverboat passage through shallows.

[ Mark Twain = Two Fathoms = 12 feet. ]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Mark Twain = Two Fathoms = 12 feet

you have got to be one of the most interesting posters on the DP. I don't always get you, but I am always intrigued by your posts!

paddle on....

Doc Ron Paul Seems to be in 1st Place, by a country mile!

Doc Rand Paul, placed 1st in Kentucky. Great news here @ DailyPaul.

2nd place in the Derby is still "In-The-Money."

"It is not best that we should all think alike; it is a difference of opinion that makes
- Mark Twain, on the Kentucky Derby

"Cultivator?" Isn't that about tilling the flat farm land surface flatter? Only getting a few inches below the surface would not work well navigating waterways. As long as your machine is used on dry land, it probably does a lot of good work for a man. More than my critics say about myself.

Thanks for finding me way down here in this mine. Would you be so kind as to show ATruePatriot & me a way out?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

He needs a new handle, too - he's a convert!

He has seen the aquaponics light, my bruthuh!!!!
lol!

This is the article that got my posting privileges revoked:
http://bklim.newsvine.com/_news/2013/05/12/18212165-dr-stan-...

I like your new handle, by the way.

FishyCulture is good. Lot of different takes on its meaning as well. I like its "eatable, natural goodness." Matches your views & web site.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

He is very creative isn't he?

You do know what he means by that right?

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

Thx. Is that a bell ringing up above?

"I know not what course others make take; give me Liberty... Others will bet on their own course." - Mark Twain, 2010

Thanks for finding me way down here in this mine. Would you be so kind as to show me a way out?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

When Dark or Foggy

It is very important to sound very often to protect your bottom.Two fathoms will do.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

C-Span Video Link of Testimony

http://www.c-spanvideo.org/program/296595-1

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Panel sounds foreclosure warning, industry downplays

(Reuters) - Widespread problems in how U.S. lenders documented foreclosures could spark a wave of legal challenges resulting in massive losses to banks and serious new troubles for the housing market, a federal watchdog warned on Tuesday.

The Congressional Oversight Panel, the overseer of the government's Wall Street bailout, in its latest report laid out a range of possible outcomes for the foreclosure paperwork mess that emerged in September.

In the best-case scenario, the watchdog said, concerns about the paperwork mess are "overblown" and banks would be able to proceed with foreclosures as soon as invalid court documents were replaced with proper paperwork.

http://www.reuters.com/article/idUSTRE6AA4AU20101116?

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More "Masterful Understatement by Congressional Undertaker"

In your haste...

'...paperwork mess are "overblown" and banks would be able to proceed with foreclosures as soon as invalid court documents were replaced with proper paperwork."

Did you mean:

'[ Foreclosure ]...mess [is blowing over our land ] ...Banks ... with ...invalid court documents ... [ must be replaced ] with ... [ Receivership]"?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Hey Bobby I know you're

Hey Bobby I know you're involved with all of this and I was wondering if you know if CITI GROUP is involved in all of these problems?
They are my servicer as far as I know and I live in South Florida.

I'd rather die on my feet than live on my knees...

Oh Yes. All the Big Banks are involved-in Fla and all over

Brent and Wendy Diers of Fruita thought their foreclosure nightmare would end in April when they sent a check to pay off their mortgage.
But more than six months later, CitiMortgage hasn't followed through on repeated assurances it would release the lien and give them title.
And despite a judge's ruling that they are not in default, the lender's law firm, Castle Meinhold & Stawiarski, continues to pursue a foreclosure sale.
"We are not in default and they do not have authorization to sell our house," a frustrated Wendy Diers said.
Although the Diers case is extreme, it is just one of several stories of borrowers in Colorado and elsewhere who find themselves trapped in a frustrating state of limbo.

Home of Susie and John Compo: After being denied modifications by GMAC Mortgage following a loss of business income, their situation improved and the Compos sought reinstatement. But additional fees were added after the requested amount was mailed, and their check was rejected as insufficient. (John Prieto | The Denver Post)
A surge in foreclosures has strained the system across the country, creating problems of lost paperwork, uncertain ownership on mortgages, and sloppy processing that has forced some lenders in recent weeks to pull back.
And those individuals who fall through the cracks like the Dierses find it hard to get out.

Read more: Foreclosure paperwork miscues piling up - The Denver Post

http://www.denverpost.com/business/ci_16601567#ixzz15TFsfN51

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Thanks for the reply,much

Thanks for the reply,much appreciated.
I sent them the notice I copied off of here from something you posted,had it notarized and all and I still have yet to hear back from them on the whole show me the note.
It's been a month.

I'd rather die on my feet than live on my knees...

Masterful Understatement by Congressional Undertaker

Robo-signers, when processing foreclosure documents "may have concealed much deeper problems in the mortgage market," ... by the Congressional Oversight [ ... Undersight... vision impaired ... ] Panel, an office formed to keep tabs... [open & running] on the bailout[s].

This "... Undertaker Understatement..." alarms me. Why do they run an open tab?

Close the darn bar!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Congressional Oversight Panel Examines "Robo-Signed" Foreclosure

Congressional Oversight Panel Examines "Robo-Signed" Foreclosures and Other Mortgage Irregularities

Irregularities Could Have Significant Consequences for Financial Stability and Foreclosure Prevention Efforts

FOR IMMEDIATE RELEASE
November 16, 2010

Thomas Seay
Thomas_Seay@cop.senate.gov
202-224-9979
WASHINGTON, D.C. — The Congressional Oversight Panel today released its November oversight report, “Examining the Consequences of Mortgage Irregularities for Financial Stability and Foreclosure Mitigation.” The Panel reviewed allegations that companies servicing $6.4 trillion in American mortgages may in some cases have bypassed legally required steps to foreclose on a home. The implications of these irregularities remain unclear, but it is possible that “robo-signing” may have concealed deeper problems in the mortgage market that could potentially threaten financial stability and undermine foreclosure prevention efforts.

In the best-case scenario, concerns about mortgage documentation irregularities may prove overblown. In this view, which has been embraced by the financial industry, a handful of employees failed to follow procedures in signing foreclosure-related affidavits, but the facts underlying the affidavits are demonstrably accurate. Foreclosures could proceed as soon as the invalid affidavits are replaced with properly executed paperwork.

The worst-case scenario is considerably grimmer. In this view, which has been articulated by academics and homeowner advocates, the “robo-signing” of affidavits served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. The risk stems from the possibility that the rapid growth of mortgage securitization in recent years may have outpaced the ability of the legal and financial system to track mortgage loan ownership. In essence, banks may be unable to prove that they own the mortgage loans they claim to own.

If documentation problems prove to be pervasive and throw into doubt the ownership of pooled mortgages, the consequences could be severe. Borrowers may be unable to determine whether they are sending their monthly payments to the right people. Judges may block any effort to foreclose, even in cases where borrowers have failed to make regular payments. Multiple banks may attempt to foreclose upon the same property. Borrowers who have already suffered foreclosure may seek to regain title to their homes and force any new owners to move out. Would-be buyers and sellers could find themselves in limbo, unable to know with any certainty whether they can safely buy or sell a home.

Further wide-scale disruptions in the housing market, if they arose, could cause significant harm to financial institutions. For example, if a Wall Street bank were to discover that, due to shoddily executed paperwork, it still owns millions of defaulted mortgages that it thought it sold off years ago, it could face billions of dollars in unexpected losses. To put in perspective the potential problem, the mortgage-backed securities market totals approximately $7.6 trillion, so irregularities that affect even a small percentage of this market could have dramatic effects on bank balance sheets – potentially posing risks to the very financial stability that the Troubled Asset Relief Program was designed to protect. The Panel urges Treasury and bank regulators to undertake new “stress tests” to gauge the ability of major financial institutions to cope with a potential documentation-related crisis.

Documentation irregularities could also disrupt Treasury’s foreclosure prevention efforts. Some servicers dealing with Treasury may not be able to document a legal right to initiate foreclosures, which may call into question their ability to grant modifications or to demand payments from homeowners. The servicers’ use of “robo-signing” may also have affected determinations about individual loans; servicers may have been more willing to foreclose if they were not bearing the full costs of a properly executed foreclosure. The Panel recommends that Treasury immediately undertake more active efforts to monitor the impact of documentation irregularities on its foreclosure mitigation programs.

Documentation irregularities could compound other threats to the mortgage market. In particular, allegations have surfaced that banks may have misrepresented the quality of many loans sold for securitization. Banks found to have provided misrepresentations could be required to repurchase any affected mortgages. Because millions of these mortgages are in default or foreclosure, the result could be extensive capital losses if such repurchase risk is not adequately reserved.

The Panel emphasizes that mortgage lenders and securitization servicers should not undertake to foreclose on any homeowner unless they are able to do so in full compliance with applicable laws and their contractual agreements with the homeowner.

The full report is available at cop.senate.gov.

The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and to provide recommendations on regulatory reform. The Panel members are Senator Ted Kaufman (D-DE); J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO;and Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky.

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You are on a roll. Excellent reporting!

BobbyW24,

In your haste,....

'Congressional Oversight Panel Examines "Robo-Signed" Foreclosure'

No pages found. Did you mean:

Congressional "Undersight"?

----------------
"$6.4 trillion in American mortgages may in some cases have bypassed legally required steps to foreclose on a home."

No pages found. Did you mean:

"$6.4 trillion in American mortgages... legally required steps to foreclose on a home.

Banks completely missed steps. Completely!" ?

----------------
Are we to follow laws? Or is it now the other way around?

Bypass? ... ignore? as in heart surgery? or worse?

Respectfully,

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Yes-UNDERsight would've been

Yes-UNDERsight would've been more appropriate

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great!

Let's shut 'em down, and jail all the management.
They've been let alone too long as it is.
Heavy criminal penalties for all of them, and ALL the debt can be paid by their personal assets, and all the assets of their progeny for the next 1000 years. Just like they intended for us.