The looming scandal of illegitimate foreclosures

While the mainstream media have reported one the apparent over-hasty foreclosure process, by which millions of Americans have been thrown out of their homes by banks overburdened by debts they can’t absorb, Ellen Brown, the author of the ground-breaking book The Web of Debt, points out the problem may go much deeper than just sloppy book-keeping. In a piece in OP-ED News, she points out that

Those errors go far deeper than mere sloppiness. They are concealing a massive fraud. They cannot be corrected with legitimate paperwork, and that was the reason the servicers had to hire “foreclosure mills” to fabricate the documents.These errors involve perjury and forgery — fabricating documents that never existed and swearing to the accuracy of facts not known. Karl Denninger at MarketTicker is calling it “Foreclosuregate.” Diana Ollick of CNBC calls it “the RoboSigning Scandal.” On Monday, Ollick reported rumors that the government is planning a 90-day foreclosure moratorium to deal with the problem. Three large mortgage issuers JPMorgan Chase, Bank of America and GMAC — have voluntarily suspended thousands of foreclosures, and a number of calls have been made for investigations. .. .These problems cannot be swept under the rug as mere technicalities. They go to the heart of the securitization process itself. The snowball has just started to roll. You Can’t Recover What Doesn’t Exist. Yves Smith of Naked Capitalism has uncovered a price list from a company called DocX that specializes in “document recovery solutions.” DocX is the technology platform used by Lender Processing Services to manage a national network of foreclosure mills. The price list includes such things as “Create Missing Intervening Assignment,” $35; “Cure Defective Assignment,” $12.95; “Recreate Entire Collateral File,” $95. Notes Smith:

“[C]reating . . . means fabricating documents out of whole cloth, and look at the extent of the offerings. The collateral file is ALL the documents the trustee (or the custodian as an agent of the trustee) needs to have pursuant to its obligations under the pooling and servicing agreement on behalf of the mortgage backed security holder. This means most importantly the original of the note (the borrower IOU), copies of the mortgage (the lien on the property), the securitization agreement, and title insurance.”

http://www.opednews.com/articles/FORECLOSUREGATE-by-Ellen-Brown-101009-711.html

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