robo signing

Foreclosure Settlement Shows 4.2 Million Borrowers Shafted in 2009-2010

The truth comes out on the mortgage fraud settlement.  The OCC announced the payout terms and for most people, they get less than $1,000 out of the deal.  Only in America can one be fraudulently foreclosed on, lose their home, have their credit ruined, only to be compensated less than $1,000 for the ordeal.

Snippets From the 50 State Mortgage Settlement

mersAs expected, states were strong armed by the administration and have agreed to a $25 billion, 50 state mortgage fraud settlement with five banks for robo-signing and mortgage fraud. According to the Wall Street Journal:

The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. Together, the five firms handle payments on 55% of all home loans outstanding, or about 27 million mortgages, according to Inside Mortgage Finance.

While the banks pony up $25 billion, they are the ones who made out like bandits.

About $5 billion would be cash payments to states and federal authorities, $17 billion would be pegged for homeowner relief, roughly $3 billion would go for refinancing and $1 billion would be paid to the Federal Housing Administration.

No Bank Prosecutions From Attorney General Who Used To Represent The Banks!

dojlogoWe all know there is no justice when it comes to criminal and even civil prosecutions for the financial crisis. We all know there is no justice when it comes to foreclosures. Are you aware the Obama administration is about to let the banks once again off the hook?

Maybe this has something to do with it. Reuters gives us just a little insight as to why their have been no criminal prosecutions of banks and civil penalties have been slaps on the wrist.

U.S. Attorney General Eric Holder and Lanny Breuer, head of the Justice Department's criminal division, were partners for years at a Washington law firm that represented a Who's Who of big banks and other companies at the center of alleged foreclosure fraud.

Great, so the highest prosecutor in the land had the Banksters as clients for years.

Holder and Breuer were partners at Covington, the firm's clients included the four largest U.S. banks - Bank of America, Citigroup, JP Morgan Chase and Wells Fargo & Co - as well as at least one other bank that is among the 10 largest mortgage servicers.

Reuters is really piecing together the implications with this paragraph. Wow!

Nevada Files Felony Charges for Mortgage Fraud

robo sign foreclosureThe Nevada Attorney General just filed felony criminal charges for mortgage fraud, but wait for it, so far it is just two little fish. From the press release:

The Office of the Nevada Attorney General announced today that the Clark County grand jury has returned a 606 count indictment against two title officers, Gary Trafford and Gerri Sheppard, who directed and supervised a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008.

According to the indictment, defendant Gary Trafford, a California resident, is charged with 102 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). The indictment charges d efendant Gerri Sheppard, also a California resident, with 100 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor).

”The grand jury found probable cause that there was a robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents with the Clark County Recorder’s Office between 2005 and 2008,”said Chief Deputy Attorney General John Kelleher.