Homeowner Chart

7/31/2019 Homeowner Chart

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Foreclosure Fraud For Dummies, 1: The Chains and the StakesPosted onOctober 8, 2010byMike(This is a series giving a basic explanation of the current foreclosure fraud crisis: This is Part One. Hereis Part Two , Part Three , Part Four , and Part Five.)The current wave of foreclosure fraud and the consequences for the economy are difficultto follow. As such,Im going to write a few posts to simplify what is going on so you canfollow stories as they unfold. This isvery 101 level, and will include a reading list of blog

posts and articles at each stage to help provide depth.(Special thanks to Yves Smith andTom Adams for walking me through much of this.) Lets make three chartsof the chainsinvolved in the process. The first is what is currently going on with foreclosure fraud

.As you can see, in judicial review states like Florida the courts require that servicers, orthose who administer the bonds that are full of mortgages (securitization, residentialmortgage backed securities, RMBS, are all phrases for them), say that they have everythingnecessary in order to have standing to bring a foreclosure. Theyneed to have the note for amortgage, which is supposed to be in the trust part of the mortgage backedsecurities that they administer.What is breaking down here? In Florida, a judicial review state, it was

found that one person was notarizingdocuments far faster than anyone could reasonablyhave. Forged documents necessary for the foreclosure process like the note were found. Aseparate court system was set up to resolve these foreclosures faster at theexpense ofallowing serious challenges to the documents. Heres Smith onhow kangaroo these courtslookupclose.Heres WaPo on one individualand the nightmare of trying to challenge an invalidforeclosure. Keep himin mind when you hear about deadbeats and whatnot: the currentsystem is designed to make it difficult for anyone to challenge their case.Meet the robo-signer who kicked it offhere at this WaPo story.I almost feel bad for this patsy; the realbattlehere is between junior and senior tranche holders, and this doofus could end up in jailin order to keepJohn Paulson rich.After reading about this guy Im asking our elites to takecare of their patsies better. (Can we get aFinancial Patsy Fordism social contract movement

going? If you are going to be a patsy for GMAC, you should be paid enough able to be ableto buy GMACs services or something.)Why would servicers do this? One story would bethat the more foreclosures they process, the more fees theyget, so there is an incentive tocut as many corners to speed through the process as possible. Hence the termforeclosuremills. You can read more about this from Andy Krolls excellent work for Mother Jones(start here).Theres another problem though what if servicers are behaving this way because theactual notes arent in thetrust? Lets go back to the creation of these instruments.
http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://www.nakedcapitalism.com/2010/09/floridas-kangaroo-foreclosure-courts-judges-denying-due-process-on-behalf-of-banks.htmlhttp://www.nakedcapitalism.com/2010/09/floridas-kangaroo-foreclosure-courts-judges-denying-due-process-on-behalf-of-banks.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/09/28/AR2010092806523_pf.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092206650.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092206650.htmlhttp://www.nakedcapitalism.com/2010/10/john-paulson-throwing-weight-around-in-dc-versus-foreclosure-fraud-inquiries.htmlhttp://www.nakedcapitalism.com/2010/10/john-paulson-throwing-weight-around-in-dc-versus-foreclosure-fraud-inquiries.htmlhttp://motherjones.com/politics/2010/07/david-stern-djsp-foreclosure-fannie-freddie?page=2http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://www.nakedcapitalism.com/2010/09/floridas-kangaroo-foreclosure-courts-judges-denying-due-process-on-behalf-of-banks.htmlhttp://www.nakedcapitalism.com/2010/09/floridas-kangaroo-foreclosure-courts-judges-denying-due-process-on-behalf-of-banks.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/09/28/AR2010092806523_pf.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092206650.htmlhttp://www.nakedcapitalism.com/2010/10/john-paulson-throwing-weight-around-in-dc-versus-foreclosure-fraud-inquiries.htmlhttp://www.nakedcapitalism.com/2010/10/john-paulson-throwing-weight-around-in-dc-versus-foreclosure-fraud-inquiries.htmlhttp://motherjones.com/politics/2010/07/david-stern-djsp-foreclosure-fannie-freddie?page=2


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I take a mortgage out at Joes Lending, a mortgage originator. A mortgage consists of twoparts. The first is thenote, or the IOU, which is the borrowers promise to pay. The secondis the mortgage, which is the security, or the lien, or the actual interest.Joes lending takesthe mortgage note to a sponsor to turn these mortgages into a bond. The sponsor wasoftenan investment bank like Bear Sterns. Now that investment bank puts an intermediaryin between itself and thetrust. This intermediary is usually called a depositor, and

sometimes there are several of them in the chain.Whats the worry here? Well many ofthese mortgage originators were fly-by-night shops, shady enterprises thatcollapsed themoment they hit trouble. And many of them cut corners and one of the corners they mayhave cutwould have been to send the note to the trust. Specifically, there is worry thatmany mortgage originators never sent the notes to the depositors. Originators wantedvolume to get fees and may not have done all the paperwork correctly. There are a lot ofthings mortgage, things like thenote, title insurance, supporting documents. But the note isthe most important.


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Why is this important? Well the trustees usually sign several certificates saying that theyhave verified all thedocumentation in these trusts. Many of these trusts are under NewYork trust law which is particularly clear andstrict when it comes to these matters. Withthis in mind, tackle these three posts by Yves Smith (one two three). So connect the twotogether, and you can see why we might have a systemic crisis on our hands:

There are roughly $2.6 trillion dollars in mortgage backed securities. The Wall StreetJournalstarts to explainhow this will be a battle between holders of junior and seniortranches of debt. It also exposes the servicers,which include the four largest banks, toextensive legal liabilities by those who bought these securitizations thatwere signed off asbeing properly administered and created.One result is that this has lead homeowners toreasonably demand to see the proper documentation before theyand their families are putout on the street. Read Ryan Grim and Shahien Nasiripour from June, Who Owns Y ourMortgage? Produce The Note Movement Helps Stall Foreclosures.Katie Porter is anexpert who has done extensive research into this area and often blogs about it at creditslips.See the blog posts:How to Find the Owner of Y our MortgageandProduce the(Bogus?) Paper.Porter found that this was extensive in her research, seeMisbehavior and

Mistake in Bankruptcy Mortgage Claims(Amajority of mortgage claims are missing oneor more of the required pieces of documentation for a bankruptcyclaims. Fees and chargeson claims often are poorly identified and do not appear to be reasonable. The bankruptcydata reinforce concerns about the overall reliability of the mortgage service industry tochargehomeowners only the correct and legal amount of the debt and to comply withapplicable consumer protectionlaws). By rushing the process, unreasonable and excessiveforeclosure fees can get applied to homeownerswhen there may not even be the properdocumentation to have the standing to bring foreclosure at all.So keep these frameworks inmind when you see the debate unfold in the next weeks. It is a problem of systemic risk,and it is a problem for the currently cratered securitization market. It will need to beaddressed,the sooner the better. But how?
http://www.nakedcapitalism.com/2010/09/more-evidence-of-bank-fubar-mortgage-behavior-florida-banks-destroyed-notes-others-never-transferred-them.htmlhttp://www.nakedcapitalism.com/2010/10/congressmen-attack-lps-servicer-misconduct-pr-counteroffensive-starting.htmlhttp://www.nakedcapitalism.com/2010/10/paging-elizbeth-warren-california-congressmen-call-for-foreclosure-probe-bank-sub-rosa-pushback-underway.htmlhttp://online.wsj.com/article/SB10001424052748703843804575534303696918076.html?mod=googlenews_wsjhttp://online.wsj.com/article/SB10001424052748703843804575534303696918076.html?mod=googlenews_wsjhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.creditslips.org/creditslips/2010/04/how-to-find-the-owner.htmlhttp://www.creditslips.org/creditslips/2010/02/follow-the-paper-to-nowhere.htmlhttp://www.creditslips.org/creditslips/2010/02/follow-the-paper-to-nowhere.htmlhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://www.nakedcapitalism.com/2010/09/more-evidence-of-bank-fubar-mortgage-behavior-florida-banks-destroyed-notes-others-never-transferred-them.htmlhttp://www.nakedcapitalism.com/2010/09/more-evidence-of-bank-fubar-mortgage-behavior-florida-banks-destroyed-notes-others-never-transferred-them.htmlhttp://www.nakedcapitalism.com/2010/10/congressmen-attack-lps-servicer-misconduct-pr-counteroffensive-starting.htmlhttp://www.nakedcapitalism.com/2010/10/congressmen-attack-lps-servicer-misconduct-pr-counteroffensive-starting.htmlhttp://www.nakedcapitalism.com/2010/10/paging-elizbeth-warren-california-congressmen-call-for-foreclosure-probe-bank-sub-rosa-pushback-underway.htmlhttp://online.wsj.com/article/SB10001424052748703843804575534303696918076.html?mod=googlenews_wsjhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.htmlhttp://www.creditslips.org/creditslips/2010/04/how-to-find-the-owner.htmlhttp://www.creditslips.org/creditslips/2010/02/follow-the-paper-to-nowhere.htmlhttp://www.creditslips.org/creditslips/2010/02/follow-the-paper-to-nowhere.htmlhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961


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UPDATE: I forgot to thank Tom Adams, a contributor to naked capitalism, for the help hegave me inunderstanding the topic in the original article. Its updated above.Foreclosure Fraud For Dummies, 2: What is a Note, and Why is itSo Important?Posted onOctober 11, 2010 byMike(This is a series giving a basic explanation of the current foreclosure fraud crisis: Here is Part One.Thisis Part Two, Part Three , Part Four , and Part Five.)The SEIU has a campaign: Wheres the Note? Demand to see your mortgage note.Its

worth checking out. But first, what is this note? And why would its existence be importantto struggling homeowners, homeowners inforeclosure, and investors in mortgage backedsecurities?Theres going to be a campaign to convince you that having the note correctlyfiled and produced isnt thatimportant (see, to start, thisWSJ editorialfrom the weekend).This is like some sort of useless cover sheet for aTPS form that someone forgot to fill out.That is profoundly incorrect.Independent of the fraud that was committed on our courts, thecurrent crisis is important because the note is acrucial document for every party to amortgage. But first, lets define what a mortgage is. A mortgage consistsof two documents,a note and a lien:

The note is the IOU, its the borrowers promise to pay. The mortgage, or the lien, is justthe enforcement rightto take the property if the note goes unpaid. The note is crucial.Why
http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://action.seiu.org/page/speakout/wheresthenotehttp://action.seiu.org/page/speakout/wheresthenotehttp://online.wsj.com/article/SB10001424052748704696304575538440995389092.htmlhttp://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://action.seiu.org/page/speakout/wheresthenotehttp://action.seiu.org/page/speakout/wheresthenotehttp://online.wsj.com/article/SB10001424052748704696304575538440995389092.html


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does this matter? Three reasons, reasons that even the Wall Street Journal op-ed page needsto take into account. The first is that the note is the evidence of the debt. If it isnt properlyin the trust then there isnt clear evidence of the debt existing.And it cant be a matter of lets go find it now! REMIC law, which governs thesecuritization, is really specific here. The securitization cant get new assets after 90 dayswithout a tax penalty, and it cant get defaulted assets at all without a major tax penalty.

Most of these notes are way past 90 days and will be in a defaulted state. This is becausethese parts of the mortgage-backed security were supposed to be passive entities. They aresupposed to take in money through mortgage payments on one end and pay it out tobondholders on the other end, hence their exemption from lots of taxes; the tradeoff is thatthey cant be de facto managers of assets, and thats what going to find the notes wouldrequire.

For Distressed Homeowners

The second is that it also matters a great deal for homeowners who are distressed. The notelays out the terms of late fees and other penalties. As we will discuss in the next sectionabout mortgage servicers, the process of trying to get people behind on their payments

current instead of driving them into bankruptcy has broken down. But for now its clearthat mortgage servicers dont have great incentives to get distressed homeowners recordscorrect.

There s well-documented evidence that extra fees are tacked on to mortgages that havefallen behind, fees that arent following the terms of the note. This is usually only foundout in bankruptcy where there is a lawyer (and multiple parties), not in foreclosure cases.But if homeowners wants to challenge whether what the servicers claim is the correct finaldue amount, the terms of the note are necessary for the court. This will matter a great dealfor many homeowners. Small, marginal differences in the total owed could allow for a

short sale. It could determine if the homeowner has any equity in their home. And this canonly be determined by producing the note.

For Investors, Who Took This Seriously at the Beginning

Last reason: you can tell its important because all the smartest finance guys in the roomthought it was important.

Lets look at a Pooling and Service Agreement form from 2006between GS MORTGAGESECURITIES CORP., Depositor, and DEUTSCHE BANK NATIONAL TRUST COMPANY,Trustee. (h/tAdam Levitin for this example.) Lets reproduce the chart from part 1 to see the

chain between depositors andtrustees who oversee the trust
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://www.secinfo.com/dRSm6.v1Py.c.htm#ajb3http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://www.secinfo.com/dRSm6.v1Py.c.htm#ajb3http://www.secinfo.com/dRSm6.v1Py.c.htm#ajb3


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[t]he poor quality of papers filed by Fleet to support its claim is a sad commentary on therecordkeeping of a large financial institution. Unfortunately, it is typical of record-keepingproductsgenerated by lenders and loan servicers in court proceedings. In re Wines, 239B.R. 703, 709(Bankr. D.N.J. 1999).Is it too much to ask a consumer mortgage lender toprovide the debtor with a clear andunambiguous statement of the debtors default prior toforeclosing on the debtors house? In reThompson, 350 B.R. 842, 84445 (Bankr. E.D.

Wis. 2006).(Source.) Notice that consumer rights groups were flagging this as a majorproblem back in 1999 and 2002 because judges were noticing it was a major problem intheir bankruptcy courts. If the late 1990s to 2006 periodis a Renaissance period of servicerfraud then we can contrast it with the period we live in now, the Baroque period of servicerfraud. Whatever unity there used to be between the forms and functions of thesloppydocumentation and outright fraud in the art of servicing have become detached.Theforms of fraud have gone high art: serving documents on people who could never havebeen served, signing10,000 affidavits a month, etc. They are all well covered, and well listmore later perhaps. Hereare some of my favoritesfrom last year,the reading list in Part Onehas even more. But what I want to focus on is the function of servicer fraud.What Do Servicers Do? A Case Study in Bad Design and Worse Incentives
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://baselinescenario.com/2009/08/20/has-mortgage-modification-failed/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1027961http://baselinescenario.com/2009/08/20/has-mortgage-modification-failed/http://baselinescenario.com/2009/08/20/has-mortgage-modification-failed/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/


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Servicers in a mortgage-backed security have two businesses. The first is transactionprocessing. This meanstaking in your mortgage money on one end and walking it over tothe crazy tranches and payment waterfalls onthe other end. This is clean, efficient, largelyautomated, requires little discretion and works very well, andimplicit in it is that it is mostprofitable when you can harness economies of scale.Its considered a passive entity infact, so there are no taxes applied in this passthrough mechanism. If servicers wentactive, say by looking for mortgage notes not in the trust 90 days after the fact ormortgagenotes that are not in the trust that have defaulted, which is what theyd likely have

to do to get out of thisforeclosure fraud crisis, theyd face very severe tax penalties.Theirother business is to handle default situations. In addition to the fixed fee they get forservicing eachindividual mortgage they get paid from default fees like late charges. Theyget to retain most, if not all, of thesefees.So right away they have an incentive to not findways to negotiate to get a mortgage to a good state. They alsohave a strong incentive tokeep a steady stream of fees and charges going to their books rather than to investors.Soanything that puts servicers in charge of negotiating mortgages, say the Obamasadministrations HAMP program, is designed to fail.Because even without bad incentives,doing good work on modification is costly, time consuming, requiresindividual expertiseand experience and doesnt benefit from automation or economies of scale. Which is tosayit is the opposite structure of their normal business.And there are additional worries.

Many of the servicers work for the largest four banks Wells Fargo, Bank of America,Citi, and JP Morgan and these four banks have large exposures to junior liens. These aresecond or third mortgages or home equity lines of credit that would have to be wiped outbefore the first mortgage can be modified. The four banks have almost half a trillion dollarsworth of these exposures and, from the stress test, are valuing them at something like 85cents on the dollar. Keeping a homeowner struggling to pay the second lien would be moreworthwhile to these middlemen banks than getting him or her into a solid first lien tothe benefit of the bond investor.So keep these in mind as you read about the servicers here.There have been worries that they, as a designed institution, were simply not qualified forthis job going back a decade. They have massive conflicts with the investors they aresupposed to be working for. They profit when homeowners collapse and lose money

whenthey are brought up to a normal payment schedule (made current). And if theinstruments dont have the notesnecessary to bring standing to carry out the foreclosuresthey have to take a massive tax hit in order to take thenote into the trust. And regulation tohandle this isnt in place.

No Regulator because for all the talks of regulatory burden, there is no current federalgovernment agency that regulates theservicers. Not the Federal Reserve. Not the Treasury.This is what happens when the financial industry writesthe deregulation. Instead you have apatchwork of state regulators and attorney generals. Notice how President Obama hasnobody to turn to and tell the press that So and So is on the case. In theory the OCCregulatesservicers if they are part of a bank or a thrift. This must fall to the new regulatory

counsel and the Consumer Financial Protection Bureau to investigate, where it willproperly belong.(The Fair Debt Collections Act, which applies to debt collectors, doesntapply to servicers. Here might be a funidea for an enterprising staffer if there is no noteproducible, are servicers still legally servicers and thusexempt from the Fair DebtCollections Act? Just a thought.)Is it any wonder that servicers are rushing theseforeclosures and making a mockery of the courts and producingsystemic risk in theprocess? There needs to be an investigation of what is being done and why, becausethis problem is not taking care of itself.(Special thanks to Katie Porter and Adam Levitin,who you can read at credit slips, as well as Tom Adams and Yves Smith, who you can readatnaked capitalism, for in-depth discussions on this material.)Foreclosure Fraud For Dummies, 4: How Could This Explode into aSystemic Crisis?
http://rortybomb.wordpress.com/2010/03/09/principal-writedowns-and-the-fake-stress-test/http://rortybomb.wordpress.com/2010/03/09/principal-writedowns-and-the-fake-stress-test/http://rortybomb.wordpress.com/2010/03/09/principal-writedowns-and-the-fake-stress-test/http://www.creditslips.org/http://www.nakedcapitalism.com/http://rortybomb.wordpress.com/2010/03/09/principal-writedowns-and-the-fake-stress-test/http://rortybomb.wordpress.com/2010/03/09/principal-writedowns-and-the-fake-stress-test/http://www.creditslips.org/http://www.creditslips.org/http://www.nakedcapitalism.com/


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Posted onOctober 11, 2010 byMike(This is a series giving a basic explanation of the current foreclosure fraud crisis: Here is Part One, PartT wo, Part Three

, this is Part Four and Part Five. )Right now the foreclosure system has shut down as a result of banks own voluntaryactions. There is currentlya debate on whether or not the current foreclosure fraud crisiscould explode into a systemic risk problem that perils the larger financial sector and

economy, and if so what that would look like. No matter what happens, the uncertaintyabout notes and what is currently going on with the foreclosure crisisis terrible for theeconomy. Getting to the heart of this problem so that negotiations can be worked outisimportant for getting the economy going again. There is little reason to trust what comesout of the servicers andthe banks in whatever they conclude at the end of the month, andthe market will know that. Only thegovernment can credible clear the air here as to whatthe legal situation is with the notes and the securitizations.But I wanted to get someunlikely but dangerous scenarios on the table in which this blows up. Bangs, notwhimpers.The kind where Congress is pressured to act over a weekend. I had a discussion with AdamLevitinabout how this could explode into a systemic problem.Title Insurance Market Breaks Down

First scenario involves title insurance. Specifically if title insurers decide to take a monthoff from writing titleinsurance even on performing and current loans to investigate what isgoing on with note transfers.If that happened there would be no mortgage sales (except forthose involving cash) in the country. The systemwould simply stop. Everyone with aninterest, from realtors to Wall Street to construction to huge sections of the economy,would face a major crisis through this short-term pinch. There would be a call for Congressto stepin immediately.You can tell that the title insurance market, which is largelyconcentrated and also holding very little capital for a nationwide crisis scenario, isinvestigating the current problems. They are holding off on certain types of foreclosedproperties; if they decide to hold off all together you could see a scenario where Congressis pushedto act immediately.

Lawsuits a Go-GoThe second would be a wave of lawsuits. As we discussed in Part Two, many of theservicing agreementsallowed for the trustees to force the depositors and sponsors topurchase mortgages without notes. That would be 100 cents on the dollar for mortgagesworth pennies. If the trustees dont take action, the investors could suethem. And thetranche warfare on this issue is intense, as foreclosures versus a few more paymentsradicallychange the balance between junior and senior tranche holders (See Tracy Allowayon tranche warfare here).Heres what this could look like. Read left side up for what the lawsuit screems and lookslike and the right side down for the response,
http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://ftalphaville.ft.com/blog/2010/10/11/364796/the-mother-of-all-rmbs-tranche-warfare/http://ftalphaville.ft.com/blog/2010/10/11/364796/the-mother-of-all-rmbs-tranche-warfare/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://ftalphaville.ft.com/blog/2010/10/11/364796/the-mother-of-all-rmbs-tranche-warfare/http://ftalphaville.ft.com/blog/2010/10/11/364796/the-mother-of-all-rmbs-tranche-warfare/http://ftalphaville.ft.com/blog/2010/10/11/364796/the-mother-of-all-rmbs-tranche-warfare/


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Much of the activity would center around the four largest participants in these areas, theToo Big To Failinstitutions of Wells Fargo, Bank of America, Citi and JP Morgan.And

many of these mortgage-backed securities are cheap. So in an interesting scenario youcould see hedgefunds buying MBS for pennies just for the option to sue firms that arelikely backstopped by the government.If title insurance froze, or if the financial marketshad a panic over fears of waves of lawsuits, there would be pressure for Congress to dosomething. Much of the law is New York trust law, so it isnt clear Congress can act. Butthere will be pressure.Because if this bad-case scenario happens, which there is a small butreasonable chance it could, progressivesneed to have a clear sense of what they want inexchange for negotiations when the financial industry comesflying in over the cliff, a list ofdemands and questions to replace the in-large-part steamrolling of TARP over anyonesinterests but the banks. Even if that doesnt happen, but the slow bleed of the currentdysfunctionalmortgage market continues, progressive wonk policy initiatives that fix this

crisis and get the mortgage marketgoing again should be at the front of the debate. Wellcover this in Part 5.Foreclosure Fraud For Dummies, 5: The Necessity of Government Action and Ways Out ofThe Crisis Posted onOctober 12, 2010byMike(This is a series giving a basic explanation of the current foreclosure fraud crisis: Here is Part One, PartT wo, Part Three

, Part Four and this is Part Five.)Heres a guess: In one month, the large banks will conclude that there are no problems withits foreclosure processes. The massive fraud that was committed on the courts was theresult of a few bad apples, but those arenow gone and its back to business as normal.At
http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/12/foreclosure-fraud-for-dummies-5-the-necessity-of-government-action-and-ways-out-of-the-crisis/http://rortybomb.wordpress.com/author/theoddestthing/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-2-what-is-a-note-and-why-is-it-so-important/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-3-why-are-servicers-so-bad-at-their-job/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/http://rortybomb.wordpress.com/2010/10/11/foreclosure-fraud-for-dummies-4-how-could-this-explode-into-a-systemic-crisis/


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this point, either as a citizen or as a financial market participant, would there be any reasonto believe them?Is there any reason to believe that the servicer and foreclosure mill fraud isover? That securitizations actuallyhave the proper legal documentation necessary? Thatborrowers and lenders are actually getting a chance tocome to mutually beneficialsituations? Is there any reason to believe they arent lying?Because servicers arentcurrently regulated. They have a patchwork of state regulators and the OCC mayregulatetheir parent company if it is a bank or thrift, but theres no current government agent toprovide anyaccountability here. So without action, theres going to be no one to confirm or

deny that anything has actuallychanged in the housing market.In some ways this narrativealready reminds me of the BP oil spill in the gulf. The Obama administrationlargely left itto BP to tell the government and the public what was wrong, hire the contractors and thenalso totell everyone what the environmental damages were. It will surprise no one that theinformation BP sent outwas wrong (see, for example, Kate Sheppard,Not an IncidentalPublic Relations Problem), but for better or worse, the Obama administration is nowlinked to whatever course and information BP chooses to pursue.Why not choose adifferent course for this one? One that emphasizes social justice through powerfulbankshaving to follow the rule of law, corporate responsibility to not commit fraud,provides a space where those whoare weak and poor get a fair say instead of beingbulldozed over by the rich and strong, and actually starts to digout of the mortgage crisis

that we are in. Check out Mike LuxsExploding foreclosure fraud issue: An opportunity forDemocrats to turn the tide. Not only is it relevant, but it demonstrates that theres a goodchancethis is going to get worse before it gets better. Why not get in front of it, and changecourse from the disastrous path weve been taking?

What Just Went Wrong in the Government Response?

Because what weve done to this point hasnt worked. Shahien Nasiripour and ArthurDelaney wrote thedefinitive account of the failure of the HAMP program,Extend ANDPretend: The Obama Administrations Failed Foreclosure Program.Instead of continuingHAMP, its time for a fresh response.Pat Garofalo of the Center for American Progress

has The Fix Is Over: Mortgage Foreclosure Scandal Offers New Hope forHomeownerswhich has a lot on what a new foreclosure relief program could look like:

allowing housing counselors and other public entities to approve mortgage modificationsdirectly,and if the borrowers servicer doesnt challenge the modification in 90 days, itautomatically becomes permanent. Such a step would go a long way toward streamliningthe program and getting borrowers who qualify through the maze of bureaucracy in atimely, clear fashion without leavingthem in limbo for months on end.Mortgage mediationprogramsin which a bank must meet with a borrower, in the presence of a judge andhousing counselors, before finalizing a foreclosureshould also be expanded..Anothernew favorite policy option everyone should start considering: REMICs bestow enormous

tax breaks to investors; these breaks should be revoked for any residential home mortgageloan holding entity that forecloses on more than a specified percentage of all of itsmortgages. We have to remember what went wrong with HAMP: the servicers were in thedrivers seat. We need a process that is involuntary, government-run and is standardizableon both the modification and on the foreclosure end. Between this and a clearing out of thecurrent crisis to confirm change has actually happened we can start on away out of thiscrisis.Source:http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the- stakes/ Yep, me again...I had to turn this into a PDF file because of theNEED (mine and others
http://motherjones.com/blue-marble/2010/10/spill-commission-report-obama-BPhttp://motherjones.com/blue-marble/2010/10/spill-commission-report-obama-BPhttp://motherjones.com/blue-marble/2010/10/spill-commission-report-obama-BPhttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://motherjones.com/blue-marble/2010/10/spill-commission-report-obama-BPhttp://motherjones.com/blue-marble/2010/10/spill-commission-report-obama-BPhttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://openleft.com/diary/20462/exploding-foreclosure-fraud-issue-an-opportunity-for-democrats-to-turn-the-tidehttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.huffingtonpost.com/2010/08/04/extend-and-pretend-the-ob_n_668609.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://www.americanprogress.org/issues/2010/10/mortgage_foreclosure.htmlhttp://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/


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) to better understand the mess created by the bankers and lawyers. When I found this onthe web (site noted above as the source

), I knew I had tomake this information available to as many people as possible because ofthe damages created by the lawyers(Congress; by passing legislation, allowing it all to take place, and shipping jobs overseas to destroythe people, and the nation.), and banks (

Lobbying; for our destruction, and perpetrating this fraud on the peoplewith the support of our electedrepresentatives). Hope this infuriates you! You will find more web sites of interest[Here].Courtesy of,Phil Daniels12 Of 15

iHeres a question thats been bothering me for a while:Ive been poking around countyrecorder websites for while. At least in my state, a real estatetransaction typically involvesrecording a deed transferring the property and a deed of trust that givesthe lender a lien onthe property. I remember reading someone (maybe Tanta at CalculatedRisk) sayingthat youcould require that the note also be recorded. So the question is: if notes were recordedwouldthat solve the problem with not being able to locate them? Would a copy of arecorded note be anadequate substitute for the original? Or would the note have to be re-recorded every time it changedhands? Which would be why we have MERS, right?Mersbeing a huge issue.Peterson, Christopher Lewis, Two Faces: Demystifying the Mortgage

Electronic Registration SystemsLand Title Theory (September 19, 2010). Real Property,Probate and Trust Law Journal, Forthcoming.Available atSSRN: http://ssrn.com/abstract=1684729AndPeterson, Christopher Lewis, Foreclosure,Subprime Mortgage Lending, and the MortgageElectronic Registration System (October 5,2009). University of Cincinnati Law Review, Vol. 78, No. 4, 2010. Available atSSRN: http://ssrn.com/abstract=1469749iiTerminology is frequently misused. Although mortgage note is not incorrect, it isconfusing, and itgenerally just means note. There is a mortgage, meant to be recorded,which generally has to berecorded to be a perfected lien. Since mortgage is often usedinterchangably with the broader termshome loan or real estate loan, I actually prefer

the term security instrument for precision. Andthere is the note. Notes areunrecordable. Statements about how notes are unrecorded is a major peeve of mine. Theyarenot meant to be recorded. They do not conform to recordation standards.Suggestions tothe effect that they should be recorded are a good tipoff to take whatever else a poster sayswith a grain of salt. Regrettably, this suggestion is frequently part of too many posts. Notesare unrecordable. In addition, the original can be like cash and meant to be kept secure.Sendingit to a county for recording would be gross negligence by whomever did it.Did Isay notes are unrecordable and theyre not meant to be recorded? AND Deed of Trust =security instrument. Another reason I prefer that term.iii
http://%20window.location.hash%3D%27/#outer_page_14'http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1469749http://%20window.location.hash%3D%27/#outer_page_14'http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1469749http://ssrn.com/abstract=1469749


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Last reason: you can tell its important because all the smartest finance guys in the room thought it wasimportant.I would non-concur here. The note is important not because the SGITR think its important,but becauseits fundamental to proving debt. Theres an old saying: A students become professors, Bstudents**********************************************************************************

Yep, me again...I had to turn this into a PDF file because of the NEED (mine and others) to better understand the mess created by the bankers and lawyers. When I found this onthe web (site noted above as the source

), I knew I had tomake this information available to as many people as possible because ofthe damages created by the lawyers(Congress; by passing legislation, allowing it all to take place, and shipping jobs overseas to destroythe people, and the nation.), and banks (Lobbying; for our destruction, and perpetrating this fraud on the peoplewith the support of our elected

representatives). Hope this infuriates you! You will find more web sites of interest[Here].Courtesy of,Phil Daniels

Heres a question thats been bothering me for a while:Ive been poking around countyrecorder websites for while. At least in my state, a real estatetransaction typically involvesrecording a deed transferring the property and a deed of trust that givesthe lender a lien onthe property. I remember reading someone (maybe Tanta at CalculatedRisk) sayingthat youcould require that the note also be recorded. So the question is: if notes were recordedwouldthat solve the problem with not being able to locate them? Would a copy of a

recorded note be anadequate substitute for the original? Or would the note have to be re-recorded every time it changedhands? Which would be why we have MERS, right?Mersbeing a huge issue.Peterson, Christopher Lewis, Two Faces: Demystifying the MortgageElectronic Registration SystemsLand Title Theory (September 19, 2010). Real Property,Probate and Trust Law Journal, Forthcoming.Available atSSRN: http://ssrn.com/abstract=1684729AndPeterson, Christopher Lewis, Foreclosure,Subprime Mortgage Lending, and the MortgageElectronic Registration System (October 5,2009). University of Cincinnati Law Review, Vol. 78, No. 4, 2010. Available atSSRN: http://ssrn.com/abstract=1469749iiTerminology is frequently misused. Although mortgage note is not incorrect, it is

confusing, and itgenerally just means note. There is a mortgage, meant to be recorded,which generally has to berecorded to be a perfected lien. Since mortgage is often usedinterchangably with the broader termshome loan or real estate loan, I actually preferthe term security instrument for precision. Andthere is the note. Notes areunrecordable. Statements about how notes are unrecorded is a major peeve of mine. Theyarenot meant to be recorded. They do not conform to recordation standards.Suggestions tothe effect that they should be recorded are a good tipoff to take whatever else a poster sayswith a grain of salt. Regrettably, this suggestion is frequently part of too many posts. Notesare unrecordable. In addition, the original can be like cash and meant to be kept secure.Sendingit to a county for recording would be gross negligence by whomever did it.Did I
http://%20window.location.hash%3D%27/#outer_page_14'http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1469749http://%20window.location.hash%3D%27/#outer_page_14'http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1684729http://ssrn.com/abstract=1469749http://ssrn.com/abstract=1469749


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say notes are unrecordable and theyre not meant to be recorded?ANDDeed of Trust =security instrument. Another reason I prefer that term.iiiLast reason: you can tell its important because all the smartest finance guys in the roomthought it wasimportant.I would non-concur here. The note is important not because the SGITR think its important,

but because its fundamental to proving debt. Theres an old saying: A students become professors, Bstudents go to Wall Street, C students become the judges. While this isnt strictly true inmy experience(except for the professors), it is true that judges think the note is important,and I listen to them over the SGITRs, generally. While it is important, there is anotherproblem the negotiability of those notes is not always obvious, and it is frequently thecase that they are not negotiable instruments, and thus not under the UCC. AsProf. DaleWhitman (Nelson & Whitman, Real Estate Transfer, Finance & Development) writes in arecent law review article (How Negotiability Has Fouled Up the Secondary MortgageMarket, and What to Do About It ):There is simply no way to resolve this question [ofnegotiability] conclusively. Yet, it seems bizarre that the negotiability of the most widelyused mortgage note form in the nation (Fannie Maes), employed in many millions of

transactions, is uncertain and that no one has bothered to do anything to clarify it. It willbe up to the courts, and as Whitmans article makes clear, this is an issue that has not beenextensively addressed. He argues that the securitizes simply didnt care whether the notewas negotiable .In addition, I would amend this statementIf it isnt properly in the trust then there isnt clear evidence of the debt existing.There is plenty of evidence of the existence of the debt (that is, there isa whole loanpackage including copies of the note), but what is not clear is who is the lawfulobligee/payee after transfer[s]. The reason why the negotiability/non-negotiability questionis so important is that the have different rules for transfer, possession and claiming

ownership. The assumption that the UCC rules control is not necessarily right. If the noteisnt negotiable, common law mostly controls. The forced repurchase option will only beeffective for solvent originators, so long as they are solvent, which wont be very long,particularly as FHA is probably going to be first in line before private labels (for sure).Here (As more and more sites POP-UP to combat foreclosure fraud...

consumer beware!)Securitization is what happens when your promissory note for your home is sold to wall street and gets"securitized" [recorded] by the SEC [Securities andExchange Commission]. This is a short expose on thisprocess and why it's fraudulent to foreclose after securitization has been done.

http://www.youtube.com/watch?v=41nf-BDY1JE Find your home listed on the Securitiesand Exchange Commission (call them and ask how to do it)...http://www.sec.gov/(You will also note how the US Government combats illegal immigration by putting this

site in en Espaol)(Okay, I'll help) Finding Pooling And Servicing Agreements (PSAs) For SecuritizedMortgage Loanshttp://mattwe idnerlaw.com/blog/2010/05/finding-pooling-and-servicing-agreements-is-key-to-killing-your-foreclosure-case/
http://www.youtube.com/watch?v=41nf-BDY1JEhttp://www.sec.gov/http://mattweidnerlaw.com/blog/2010/05/finding-pooling-and-servicing-agreements-is-key-to-killing-your-foreclosure-case/http://mattweidnerlaw.com/blog/2010/05/finding-pooling-and-servicing-agreements-is-key-to-killing-your-foreclosure-case/http://www.youtube.com/watch?v=41nf-BDY1JEhttp://www.youtube.com/watch?v=41nf-BDY1JEhttp://www.sec.gov/http://mattweidnerlaw.com/blog/2010/05/finding-pooling-and-servicing-agreements-is-key-to-killing-your-foreclosure-case/http://mattweidnerlaw.com/blog/2010/05/finding-pooling-and-servicing-agreements-is-key-to-killing-your-foreclosure-case/


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http://ftc search.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://mortgage-home-loan-bank-fraud.com/http://showmethe loan.net/States/statutes.htmlhttp://www .consumerdefensepr ograms.com/sitemap/ http://www.expertlaw.com/library/limitations_by_state/http://www .kscourts.org/ca ses-and-opinions/opinions/supct/2009/20090828/98489.htm

http://www .law.co rnell.edu/ucc/ucc.table.html http://living lies.wordpress.com/201 1/10/07/manifes to-for-protesters-against-banks/ http://www.foreclosureprose.com/ (Go PRO SE; it's the only way to fly?)http://www .webofdebt.com/articl es/mers.php http://2auditforeclosures.com/(This and the next site are related, and fee driven, but it is for you to chose wisely)http://www .forensicauditings ervices.com/default.html ($$$$$)http://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#comments

http://www.perkel.com/pbl/index.htm http://www.freedomclubusa.com/homehttp://stopforeclosurefraud.com/http://www.loansafe.org/forum/http://www .notacitizen.com/i ndex.php/articles/98-government/70-what-is-the-united-stateshttp://www .youtube.com/result s?search_query=Post+Forerclosure+Damages&aq=f http://www .youtube.com/watch?v=T xROZCjMopI&feature=results_video&playnext=1&list=PL5C0DA0482429D224COMPARING DEFINITIONS OF FREEDOM: THE SOURCE OF OUR DILEMMAhttp://www .newswithviews.com/Timothy/baldwin171 .htm Just because I was

there...http://www .nextag.com/marine -corps/products-html?nxtg=3740a50050b-6B62A0E0A12641DE
http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://mortgage-home-loan-bank-fraud.com/http://showmetheloan.net/States/statutes.htmlhttp://showmetheloan.net/States/statutes.htmlhttp://www.consumerdefenseprograms.com/sitemap/http://www.expertlaw.com/library/limitations_by_state/http://www.expertlaw.com/library/limitations_by_state/http://www.kscourts.org/cases-and-opinions/opinions/supct/2009/20090828/98489.htmhttp://www.kscourts.org/cases-and-opinions/opinions/supct/2009/20090828/98489.htmhttp://www.kscourts.org/cases-and-opinions/opinions/supct/2009/20090828/98489.htmhttp://www.law.cornell.edu/ucc/ucc.table.htmlhttp://livinglies.wordpress.com/2011/10/07/manifesto-for-protesters-against-banks/http://livinglies.wordpress.com/2011/10/07/manifesto-for-protesters-against-banks/http://www.foreclosureprose.com/http://www.webofdebt.com/articles/mers.phphttp://2auditforeclosures.com/http://www.forensicauditingservices.com/default.htmlhttp://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#commentshttp://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#commentshttp://www.perkel.com/pbl/index.htmhttp://www.freedomclubusa.com/homehttp://stopforeclosurefraud.com/http://stopforeclosurefraud.com/http://stopforeclosurefraud.com/http://www.loansafe.org/forum/http://www.notacitizen.com/index.php/articles/98-government/70-what-is-the-united-stateshttp://www.notacitizen.com/index.php/articles/98-government/70-what-is-the-united-stateshttp://www.youtube.com/results?search_query=Post+Forerclosure+Damages&aq=fhttp://www.youtube.com/results?search_query=Post+Forerclosure+Damages&aq=fhttp://www.youtube.com/watch?v=TxROZCjMopI&feature=results_video&playnext=1&list=PL5C0DA0482429D224http://www.youtube.com/watch?v=TxROZCjMopI&feature=results_video&playnext=1&list=PL5C0DA0482429D224http://www.newswithviews.com/Timothy/baldwin171.htmhttp://www.nextag.com/marine-corps/products-html?nxtg=3740a50050b-6B62A0E0A12641DEhttp://www.nextag.com/marine-corps/products-html?nxtg=3740a50050b-6B62A0E0A12641DEhttp://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://ftcsearch.ftc.gov/search?q=Foreclosure+Fraud&btnG=Search&output=xml_no_dtd&ie=UTF-8&client=ftc_consumer&proxystylesheet=ftc_consumer&filter=0http://mortgage-home-loan-bank-fraud.com/http://showmetheloan.net/States/statutes.htmlhttp://showmetheloan.net/States/statutes.htmlhttp://www.consumerdefenseprograms.com/sitemap/http://www.expertlaw.com/library/limitations_by_state/http://www.expertlaw.com/library/limitations_by_state/http://www.kscourts.org/cases-and-opinions/opinions/supct/2009/20090828/98489.htmhttp://www.kscourts.org/cases-and-opinions/opinions/supct/2009/20090828/98489.htmhttp://www.law.cornell.edu/ucc/ucc.table.htmlhttp://www.law.cornell.edu/ucc/ucc.table.htmlhttp://livinglies.wordpress.com/2011/10/07/manifesto-for-protesters-against-banks/http://livinglies.wordpress.com/2011/10/07/manifesto-for-protesters-against-banks/http://livinglies.wordpress.com/2011/10/07/manifesto-for-protesters-against-banks/http://www.foreclosureprose.com/http://www.foreclosureprose.com/http://www.webofdebt.com/articles/mers.phphttp://www.webofdebt.com/articles/mers.phphttp://2auditforeclosures.com/http://www.forensicauditingservices.com/default.htmlhttp://www.forensicauditingservices.com/default.htmlhttp://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#commentshttp://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#commentshttp://dc.urbanturf.com/articles/blog/produce_the_note._3_words_that_could_stave_off_foreclosure/555/?r=334172864#commentshttp://www.perkel.com/pbl/index.htmhttp://www.perkel.com/pbl/index.htmhttp://www.freedomclubusa.com/homehttp://stopforeclosurefraud.com/http://stopforeclosurefraud.com/http://www.loansafe.org/forum/http://www.notacitizen.com/index.php/articles/98-government/70-what-is-the-united-stateshttp://www.notacitizen.com/index.php/articles/98-government/70-what-is-the-united-stateshttp://www.youtube.com/results?search_query=Post+Forerclosure+Damages&aq=fhttp://www.you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Documents

Homeowner Chart