Banks Controlled Independent Reviews

“TARP was supposed to cover losses from defaulting loans. But then it was switched to make direct capital infusions into the mega banks. Why the switch? Because everyone realized very early on that the banks had no losses from defaulting loans. It was the investors who made the loans and would take those losses. But even though the government recognized this fact, it did so in secret allowing the confusing notion of bank losses to permeate the judicial cases. All they had to do to stop foreclosures was to tell the truth and Judges would have correctly assumed that the Banks were mere intermediaries. PRACTICE HINT: Is Champerty and maintenance a cause of action for damages, a defense to a lawsuit or both?” — Neil F Garfield, livinglies.me

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If you are having trouble believing that the recession, the mortgages, the foreclosures, the auctions, and the health of the banks are all a big lie click here for Matt Taibbi’s Article in Rolling Stone

Editor’s Comment: The so-called independent reviews were neither independent nor reviewed. They were processed. Which is to say they went in one end and came out the other. The so-called reviews relied completely on the banks themselves to review their own criminality in the foreclosure process that was only one step in a multifaceted plan to take down the wealth of America and concentrate in the hands of people who could claim it as their own.
The reviews were not independent because all the information offered was the information that the banks wanted to reveal and half of that was completely fictitious. The lack of an administrative hearing process made it impossible for the independent review conclusions to be challenged. Talk about stacking the deck.
A random survey of foreclosures would show that the forecloser was a complete stranger to the transaction, never invested a penny in the origination or purchase of the loan, and never accounted properly for its actions to the actual lender/investors. How do we know this with certainty? Because real independent reviews like the ones conducted in counties all over the country came to exactly that conclusion after reviewing foreclosures that were “completed.”
There is no ambiguity except whether the credit bid and ensuing deed upon foreclosure is void or voidable. I maintain it is void and not voidable. Voidable means that the victim must do something to replace the job of the county recorder. Voidable means that the transaction stands and the deed is valid even though we know it is a wild deed with no place for it in the chain of title. Voidable means that in a later refi or sale if some title lawyer is actually doing his work the way it was done since the dawn of title records, he or she is going to discover the wild deed and declare the title to be clouded defective or fatally defective. And that would be because of all the documents submitted by a series of entities that had no function except layering over the festering corruption of title created in the first place.
Actual findings that somehow leaked through the controlled review process were suppressed. It all comes down to the same thing in administrative action, law enforcement action, executive action and legislative action: homeowners are deadbeats who don’t count or can be managed through the miracle of telling big lies through the media. The conclusion reached in virtually all cases was the same: while the forgeries, fabrications and perjury were bad things and the ensuing theft of the homes was allowed to proceed anyway, the net result is that these people borrowed the money, defaulted on the payments and lost the house they were supposed to lose anyway.
It is a compelling argument if it was true. In fact, the posturing and lying of the banks enhanced the lender/investor losses and stopped the homeowners from connecting up with real lenders to settle the loans and then go after the banks together for lying to everyone about appraisals, underwriting, and loan quality.
As I see it, the only way this is going to wind up is that those people who fight back with Deny and Discover will be rewarded for their efforts if they persist. But on the whole, most people will not fight back leaving the Banks with windfall several times over. Government won’t help them. If the Banks lose every case that is contested it will be less than the amount they would reserve for loan losses if their loans were real.
We all know that the Banks were using investor money 96% of the time, and yet we allowed them to get insurance, credit default swaps, and federal bailouts on investments they never made. We allow them to pretend that they own what the investors own, thus corrupting their balance sheets with fictitious assets. We allowed them to book fictitious sales of bogus mortgage bonds to investors using the investors own money to create the infrastructure that was never used to sell, assign or securitize the loans. The Bankers who control the banks also control all the profits from these false “proprietary trades”, book them as they wish partly to keep the value of the stock higher and higher, and then keep the rest in off balance sheet off-shore transactions spread around the world.
In an economy that is still driven 70% by consumer spending these policies are arrogant and stupid. The investors who were the real lenders should be paid. The balance on the books owed to those investors should be reduced. And the process of separating the false tier 2 premiums on proprietary trades and the REAL balance owed by borrowers should proceed. This can only happen, given current circumstances by denial of all elements of the cause of action for foreclosure, and pressing on through discovery against the Master Servicer, subservicer (who did they pay? how long did they day after the declaration of default?), the Trustee of the REMIC trust (where are the trust accounts?), the aggregators and other parties that were engaged in the PONZI scheme that was covered over by a false infrastructure of assignments and securitization which never took place.
Our economy is projected to grow at a mere 2% this year if we are lucky, because the banks are holding all the fuel for the engine. If we were to apply simple precepts of law on fraud and contracts, the amount clawed back to investors and homeowners would end the crisis for the economy and yes, possibly threaten the existence of the large banks, but greatly enhance the prospects for the 7,000 other banks in the U.S. alone. But that of course would only happen if we were doing things right.
OCC Foreclosure Reviewer: “Independent” Reviews Were Controlled by Banks, Which Suppressed Any Findings of Harm to Foreclosed Homeowners
http://www.nakedcapitalism.com/2013/01/occ-foreclosure-file-reviewer-independent-reviews-were-controlled-by-banks-which-suppressed-any-findings-of-harm-to-foreclosed-homeowner.html