“The foreclosure sales (in question are) invalid because they failed to meet the requirements of (Massachusetts law),” Land Court Judge Keith Long wrote yesterday in reaffirming a decision he originally reached in March.
At issue is "lost" paperwork when mortgages are sold from party to party, as typically happens many times during a securitization process.
I have often argued that a lot of "lost" paperwork is in fact intentionally destroyed, as this is one of the few ways to cover up blatant fraud in the origination of mortgages - brokers putting the same application through with a half-dozen ever-higher "claimed" incomes, for example, until they get an approval. The original paperwork that is executed by the borrower, if it bears hand-written numbers that don't match the signature, could be a strong indicator of fraud committed by those brokers (and willingly ignored by securitizers.)
Judge Long wrote:
“The issues in this case are not merely . . . a matter of dotting i’s and crossing t’s. Instead, they lie at the heart of the protections given to homeowners and borrowers,”
Yep.
Banks have long run roughshod over the law. Indeed, their so-called "profits" virtually demand it in this world of lies, deceit and outright fraud. In several states, including Florida, judges have been nothing more than handmaidens of these "enterprises", despite black-letter law in this state (and most others) that demand an unbroken chain of original, wet signatures in the assignment of interest.
If you can't produce the documents, by statute, you have no standing to foreclose.
Period.
The willful destruction or non-retention of these original documents makes the securitizations fraudulent, as they were sold off to investors as being "asset backed" when in fact they were not, as being "asset backed" requires compliance with state law in the perfection of security interest. More importantly all of the actors involved, including the securitizing banks, MERS and similar institutions, were aware at the outset that they did not comport with the laws of these states. These "missing documents" are not an exception or an "occasional" circumstance they are in fact the rule rather than the exception.
This elevates these omissions from "ministerial errors" to something far more serious, in that if you sell something to someone knowing you are not complying with the black letter of the law of the state in which you operate in every line of business - save one - you'd find yourself on the wrong end of a criminal complaint from the State Attorney General.
We need 50 Andrew Cuomos to bring criminal and civil charges, and we need them now. This is a legitimate State Law issue in that The States have an affirmative duty to enforce the laws that protect their citizens, and in this regard the law is black-letter.
Can we find a (state) cop somewhere?
Oh, and for extra credit, does anyone care to take a wager on how much of the so-called "Secured" MBS that The Fed has been monetizing also has no valid assignment and thus has NO collateral, and in the event of a default, is WORTHLESS?
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