2011 was ushered in with the usual fanfare in my family – lots of tasty appetizers, hanging out with the kids until the stroke of midnight and off to bed. I spent the end of 2010 trying to push a few small sales, despite overwhelming resistance by ignorant negotiators and researching a new gun to hold to the bank’s head – the faulty securitization of the mortgages and the resulting lack of standing of these various Plaintiff trustees to bring foreclosure actions.
It is not light reading by a long stretch. Understanding the securitization process from the originator to the Trustee, locating and understanding the governing document, the Pooling & Servicing Agreement (PSA), is no simple matter. But we have done just that and analyzed numerous defective Assignments of Mortgage for New York City properties. These banks and their respective attorneys flagrantly ignore the rule of law, routinely perjury themselves, do documents without authority, and directly violate the terms of the PSA. These banks have also been paid over and over for the same loan because of the over-collateralization of these mortgage securities, but seek to enrich themselves further by availing themselves of the remedy of foreclosure. And yet, the tax payer pays them yet again, via the Obama Administration, instead of taking that same money to make jobs to bolster our sagging economy.
These banks are posting record profits for 2010 as our country fails to recover for lack of not only jobs but of credit. The purpose of the TARP funds was to give an incentive to the banks to extend credit but they failed to do so and really decreased lending. Congress, in their haste, failed to include any strings in that gift package. The Wall Street Journal indicated that such failure was the reason for the decreased lending:
The fact that loan portfolios are shrinking at many of the largest TARP recipients underscores how few strings Treasury Department officials attached to the infusions. That has made it hard to prevent banks from using the money to pay dividends, make acquisitions and fund bonuses for top executives.
Pioneers saw what the banks were doing – getting rich from tax payers’ monies and then enriching themselves further through foreclosure of these overcollateralized securities or peoples’ homes. They fought the banks in court by going back to the basics and not just blinding accepting the banks’ right to foreclose on their “security”. It started with “produce the note” because the whole mortgage industry had gotten sloppy and couldn’t locate their documents. But then it went further, questioning whether the bank really owned the Note and if you could foreclose on a mortgage once it had morphed into a security. MERS‘ role was being investigated and foreclosure defense lawyers questioned whether or not it could bring a foreclosure action as plaintiff, because it did not really own the Note as well as failed to maintain a proper chain of assignment.
These very foreclosure defense attorneys and judges, inundated with millions of foreclosure actions, started to see an hideous pattern and the same names over and over again, executing assignments, affidavits of merit etc. Brooklyn’s own Judge Schack has been on the forefront of demanding legal compliance from the banks and making them account for their failure to adhere to the law as well as outright committing fraud. Our courts have been on the forefront of insuring that homeowners’ rights are not trampled – that the banks act in excellent faith and when they don’t – holding them liable for it. The banks and their attorneys step very carefully into our courts these days for dread of the ultimate punishment – dismissal of their action with prejudice.
I reckon 2011 is the year we take back our country from Wall Street and the banks. The tide is turning.
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Hoping that 2012 will be good year for all of us..
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