YOU CAN’T TRUST OUR NATIONAL BANKS MORTGAGE PAPER TRAIL

FRAUD, NOT MISTAKES AND ERRORS, HAVE PERMEATED THE FORECLOSURE PROCESS IN AMERICA

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FRAUD, NOT MISTAKES AND ERRORS, HAVE PERMEATED THE FORECLOSURE PROCESS IN AMERICA

When judges begin ordering the accounting and financial books and records of the

alleged owner of a borrower’s note to be produced, not servicing records, at trial or

attached to affidavits of indebtedness, you will begin to see a tidal wave of settlements, modifications, note sales, and new borrowing options presented to homeowners.

If not, judgment cannot not be entered in that the servicing records may support the

amount of payments missed, but it cannot support the actual “loss” and deficiency

incurred, if any, to the foreclosing party or alleged note owner.

Servicers and corrupt foreclosure law firms should not get a free house. The automated and robotic foreclosure processes that have been engineered over the last two-decades must be re-engineered to stop the frauds and abuses that have permeated our legal system.

Far too many major banks and servicers are getting a free pass to unjustly take away a borrower’s property and getting a free house in the process.

The blame for this crisis lies squarely on the heels of the mortgage industry and its lawyers. These frauds were systemic and endemic, not isolated mistakes and errors. As you will see in this paper, the CEOs and boards of major banks and mortgage companies like Fannie Mae and Freddie Mac were fully aware of the frauds, but chose to turn a willful blind-eye to the abuse and its ultimate consequences.

The simple fact is this. If the industry once more ignores the warnings and does not fix their fatally flawed affiant and witness process, their next settlement may be far greater than their combined $35 billion settlement for robo-signing and foreclosure fraud.

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Published In: Civil Remedies Updates, Consumer Protection Updates, Criminal Law Updates, Finance & Banking Updates, Residential Real Estate Updates

Reference Info:Federal, Federal Circuit | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Barry Fagan, Law Offices of Barry S Fagan | Attorney Advertising

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