Dear State Attorneys General: You Failed America. Yes, You.

Deby on February 28, 2012 at 12:01 pm.

Keep on tracking Abigail – if those in power can’t take the journalistic heat they need to get out of the nation’s kitchen; I would be morally appalled to state I was part of today’s political arena – they lack balls and strength – perhaps we need a major collapse in our country to remind those in power what it means to stand together, to look out for one another – maybe we are headed for a 2nd civil war in this country – people v bankers – eventually the AGs, etc., are going to have to take a side or get out because at the end of the day it is us humans who vote them in – or out. I can assure you when it comes down to looking out for one another or a bankster – the bread will be shared with the people but the bankster will be asked to piss off; go eat its securities and worthless paper – we need to pull the plug on these entities with a DNR – otherwise they are taking the vital oxygen we need to survive with their criminal conduct; isn’t that a form of murder to deprive a living being oxygen to survive whether it be a breath of life or shelter? Either way, the threats on living beings should never be tolerated by those in power – someday it may be their own breath – who will intervene for them if we’re all gone?

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mark on February 28, 2012 at 7:46 pm.

We are witnessing the greatest heist in history. In our brief filed last Thursday in the Countrywide Home Loans, Inc. v. Jones NJ foreclosure case we attempted to give the trial judge a sense of what’s at stake in every individual foreclosure case. Below are two excerpts.

Dear Judge Jacobson:

Please accept this letter brief of Defendant Gustina Jones in opposition to a motion for a confidentiality order submitted on behalf of witnesses Francis Hallinan, Esq. (“Hallinan”) and Full Spectrum Legal Services, Inc. (“Full Spectrum”) representative witness Jay Mullen (“Mullen”). Full Spectrum is the mortgage foreclosure servicing business owned by the Phelan, Hallinan & Schmieg P.C. named partners. Defendant Jones has also filed a cross-motion to compel Hallinan to answer questions he refused to answer in his deposition. These motions are returnable on March 2, 2012.

Preliminary Statement

“Among the fundamental principles of any functioning justice system is the following: Don’t lie to a judge or falsify documents submitted to a court, or you will go to jail. Breaking an oath to tell the truth is perjury, and lying in official documents is both perjury and fraud. These are serious criminal offenses, but apparently not if you are at the heart of America’s financial system. On the contrary, key individuals there appear to be well compensated for their crimes.”*
[*“Too Big to Jail,” by Simon Johnson, February 22, 2012. http://www.project-syndicate.org/commentary/johnson29/English Mr. Johnson is a former International Monetary Fund Chief Economist & is currently a professor at MIT Sloan School of Management.]

For many years a state of lawlessness has prevailed in that part of the New Jersey court system responsible for handling residential mortgage foreclosures. The tip of the iceberg has been the systemic use of knowingly false affidavits and mortgage assignments to speed the eviction of New Jersey homeowners from their residences. The submerged portion of the iceberg conceals the widespread theft of monies from homeowners, including Defendant Gustina Jones, as well as from investors, insurers and taxpayers. These thefts have been going on for years and have been and still are being committed by a handful of mortgage banking institutions, including Defendant Countrywide Home Loans, Inc.

Ms. Jones’ case is but one of many millions of foreclosures nationwide based on fraudulent MERS ownership claims in which plaintiff mortgage banking institutions have participated and reaped illicit profits from predatory mortgage servicing. Ms. Jones’ case is a DNA strand found at the scene of a financial crime. If one unravels the DNA strand, one breaks the code to solving a much wider, long-standing financial crime of historic proportions.

The evidence shows that Ms. Jones is the victim of a predatory lending enterprise that intentionally engages in unconscionable servicing practices and makes fraudulent insurance claims to reap further profits for the enterprise. At the end of the foreclosure process only a small amount of money will have been stolen from Ms. Jones. A much larger amount is stolen from investors, insurance claims and ultimately the taxpayers, all whom have a direct financial interest in Ms. Jones’ loan. Aggregated the frauds amount to hundreds of billions, if not trillions, of dollars.

In an effort to thwart the public’s right to know and impede Ms. Jones’ ability to communicate effectively and share relevant information with counsel representing other homeowners facing similar unconscionable practices, counsel for Hallinan and Full Spectrum seeks a blanket protective order as to the depositions of Hallinan and Full Spectrum and the documents produced in those depositions pursuant to Ms. Jones’ discovery subpoenas. The basis for this extraordinary relief is a wholly unsubstantiated attack on the integrity and motives of Defendant Jones’ counsel, James F. Villere and Mark J. Malone. The vitriol directed at them is best understood by an exposition of how Plaintiff Countrywide Home Loans, Inc. and its agent, Phelan, Hallinan and Schmieg, P.C., have fabricated an ownership claim to Ms. Jones promissory note and mortgage and exploited that claim through a pattern of unconscionable billings that illegally inflate the amount due by Ms. Jones on her mortgage obligation and unfairly burden her right to try to save her home. These wrongs are not an isolated events or the result of mistake. Instead they are part of a common plan engaged in by Countrywide Home Loans, Inc. and its related businesses and agents to deliberately steal money from Ms. Jones and other victims.
* * *
The June 13, 2007 bailment letter provides a clue into the labyrinth of fraudulent transactions through which the Jones mortgage loan has traveled. The letter discusses a number of promissory notes that comprise a portion of the collateral “held by Colonial Bank, N.A., pursuant to the Mortgage Warehouse Loan and Security Agreement dated as of April 5, 2004 between Security Atlantic Mortgage Co., Inc. and Lender.” The bailment letter provided that if the notes were not purchased by Countrywide Home Loans, they were to be returned to Colonial Bank, N.A. A MERS Milestones report provided by Plaintiff in discovery suggests that Countrywide never purchased the notes pursuant to the bailment letter’s terms.

MERS Milestones reports allegedly track transfers of interests in mortgage loans among MERS members. If accurate, the MERS Milestones report provided in discovery tells a tale of ownership transfers that directly conflicts with the ownership claims set forth in Plaintiff’s complaint, the MERS assignment of Ms. Jones’s note and mortgage fabricated by Hallinan and Strain, and Countrywide’s alternative bailment letter claim. In chronological order, the MERS Milestones report recounts.

1. June 11, 2007. Jones loan registered on the MERS System showing Security Atlantic Mortgage Co., Inc. as the servicer.

2. June 21, 2007. New servicer listed as BAC Home Loans Servicing, LP. (This was at a time when BAC Home Loans Servicing, LP did not exist.[1])

3. June 21, 2007. New investor listed as BAC Home Loans Servicing, LP. (In addition to the fact that BAC Home Loans Servicing did not exist in 2007, this investor status conflicts with an April 7, 2011 certification of Bank of America, N.A. employee Bridget Lett submitted in In the Matter of Residential Mortgage Foreclosure Pleadings and Document Irregularities, Docket No. F-59553-10 stating that BAC Home Loans Servicing, LP acted as only a servicer for others who owned the loans.)[2]

4. August 15, 2007. Initiating Organization/User listed as Government National Mortgage Association and “Old Interim Funder” listed as “FDIC as Receiver for Colonial Bank, effective 8/14/09.” (Remarkably, this entry accurately predicts that 2 years later, in 2009, the FDIC will take over Colonial Bank as its receiver.)[3]

5. August 15, 2007. New investor listed as Government National Mortgage Association. (Ms. Jones purchased Federal Housing Agency (“FHA”) insurance in connection with her loans.[4] Ginnie Mae’s website reports that Ginnie Mae securitizes 99.5% of all FHA insured loans.[5] A Referral Account Detail Report, the document by which Plaintiff allegedly referred the foreclosure matter to Hallinan’s firm, contains the following information that appears to relate to a Ginnie Mae securitization of Ms. Jones loan: GII FX G-F – 6BPS.[6]

[1] BAC Home Loans Servicing LP, a Texas limited partnership, came into existence in April 2009. February 23, 2012 Villere Certification, ¶ 14 and Exhibit 6.

[2] “As the loan servicer, BAC Servicing acts on behalf of a mortgagee, but it is not the mortgagee itself.” ¶ 1, Lett Certification. A copy of the April 7, 2011 Bridget Lett certification is attached to the February 23, 2012 Villere Certification, ¶ 19 and Exhibit 11.

[3] February 23, 2012 Villere Certification, ¶ 20.

[4] At the closing of her loan, Ms. Jones purchased FHA mortgage insurance paying $3675. A copy of the HUD 1 statement is attached to the February 23, 2012 Villere Certification, ¶ 21 and Exhibit 12 (CHL(GJ)216-217). Thereafter, Ms. Jones paid $97.80 per month as a premium for the insurance. February 23, 2012 Villere Certification, ¶ 22 and Exhibit 13 (May 4, 2011 QWR response, ¶13).

[5] http://www.ginniemae.gov/media/ginnieFAQ.asp?Section=Media

“In effect, Ginnie Mae serves as the banker for FHA, VA, and other government mortgage insurers. The capital used to finance government insured and guaranteed mortgage loans is raised through Ginnie Mae MBS. FHA and other government agencies insure or guarantee the lender in case of a borrower default, while Ginnie Mae guarantees the investor in case of a lender default.
Lenders originate the FHA, VA, or PIH mortgage loans and package them into MBS, which are then guaranteed by Ginnie Mae. Ginnie Mae securitizes more than 99.5 percent of FHA mortgages and 97 percent of VA mortgages.
Since Ginnie Mae is a wholly-owned government corporation within HUD, the President of Ginnie Mae and the FHA Commissioner both report to the Secretary of HUD.”
[6] A copy of the Referral Account Detail Report is attached to the February 23, 2012 Villere Certification, ¶ 23.
* * *
Since taxpayers and pension funds are the most significant groups of victims in terms of footing the bill for the mortgage bankers’ thefts, we have got to figure a way to engage them.

Mark

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