Posts Tagged by KPFA Live Stream
|February 22, 2012||Posted by admin under Admin||
Speaker CJ Holmes, is real estate expert who has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless clients and agents. CJ is dedicated to uniting property owners to stop foreclosures. Eight million homes are already foreclosed. Another six million are in the pipeline. One in five U.S. foreclosures is in California. Nation-wide, local governments have lost more than $17 billion in tax revenues due to the housing crisis. An estimated 29% of all homes with mortgages are underwater.
“We need to come together as communities to demand principal and interest rate reductions for every mortgage that is underwater… We must move very quickly and make a huge ruckus,” says speaker CJ Holmes. “If we allow Hedge Funds to get their hands on our homes at these current depressed prices, the billions the 1% already took from us 99% will be peanuts in comparison.
12 STEPS OF BANK FRAUD -from Occupy-Our-Homes.info
CA Courts Rubber-stamping foreclosures by corporations
STEP 1: CHEAT County Recorders’ Offices nationwide: establish MERS (late 1990s)
Using MERS eliminates recording Loan ownership changes at the county recorders’ offices
Using MERS hides these ownership changes from the Public
Using MERS has cheated and still cheats our Counties out of billions of dollars of recording fees
STEP 2: CIRCUMVENT the SEC: use foreign corporations as Securities Vehicles
No SEC regulators; no prying eyes; no inhibitions; no rules
This significantly “Gamed the System” that was put in place to protect Investors from fraud
Fraudulent Securitization Process Video [transcription]
STEP 3: BUY OFF Ratings Agencies: Get AAA-Ratings on Securities PRIOR to
funding the Loans that should have been in the Securities at time of sale
Normally loans are made first, then pooled, then rated as a Security, then sold to Investors.
These Securities were created first, rated without Loans, sold to Investors, then filled with bad Loans designed to fail.
STEP 4: Commit Insurance FRAUD: over-insure the Securities’ Values by 30x,
then specifically design the loans to fail
Insurance was paid to Servicers managing the Securities, not Investors, when the values declined
Ex: AIG credit-default-swaps were used as Insurance for these Securities
These Securities were then filled with Loans “designed to fail” to ensure values would decline
Ex: when a $300,000 loan defaulted, payout is $9,000,000 to the Servicers
STEP 5: CHEAT Investors’ out of Collateral: do not assign Loans to the Securities
after the Loans are made
Loans funded with Investor money were not assigned to the Securities the Investors purchased
Using MERS allows Bank Servicers to change Loan ownership as they choose
Our Loans are Foreclosure Proof?
STEP 6: CHEAT the IRS with a tax dodge: set up Securities as Closed-end
Long-Term qualifying Investments
Use Securities as Open-end Short-term Collateral for large cash deposits (REPOs)
Using MERS to shift Loan ownership at will, allows Bank Servicers to keep up this game
STEP 7: CHEAT Truth-in-Lending Laws (TIL) 1: At Loan funding, Banks lied,
calling themselves Lenders, but they weren’t (Banks are Pretender Lenders)
Money for the Loans came from pre-selling the Securities to Investors
No Bank money has EVER funded any of these securitized loans
Banks only SERVICE these loans and manipulate Loan ownership using MERS
STEP 8: Criminally Disregard TIL 2: pushed Borrowers into Loans Banks KNEW
borrowers could not afford when the Loan reset
This is criminal disregard of the Fiduciary Responsibility required of loan officers
Banks pushed loan officers with every ruse and bonus possible to snag unsuspecting Borrowers regardless of future harm to the Borrower.
STEP 9: CHEAT the Borrowers: create Loans designed to fail on schedule
Example: “NINJA” Loan requirements: no documentation, no income, no job (huh??)
Loan $300,000, 6% teaser interest rate for 2 years; 16% interest rate on month 25 (failure month)
6% teaser rate for 24 months = $1,500/m Interest Only payments for 2 years (affordable)
Month 25: Loan payment “explodes” to $4,000/m (16%/12 x $300,000) and Borrower defaults
STEP 10: STEAL the Investors’ Money: example below (both = $48,000/yr)
$300,000 Loan at 16% interest = 6% interest on $800,000 Investment
$300,000 of $800,000 Investment is used to fund the $300,000 Loan in Step 9.
$500,000 balance of Investment is used for Reserves, Bonuses, and Kick-backs
Reserves: $60,000 for 24 mths difference between $4,000/m due minus $1,500/m Borrower pmts
Bonuses, Kick-backs: $440,000 to loan brokers and bank servicers, other insiders
STEP 11: Fraudulently Foreclose Loan defaults: falsify Loan ownership;
falsify Foreclosure documents
“Pretender Lenders” (Banks) foreclose as if they own the Loans; they do NOT own the Loans
Loan Servicers (Banks) illegally assign Loans to Securities years after these Funds Closed (robosigning fraud not slipups)
60 Min: Fraudulent Foreclosure Docs Video
The REMICs have Failed
STEP 12: CHEAT the US Taxpayer: Use TARP to pay off lawsuits;
get money to do Loan Mods Bank Servicers can’t legally make
Pretender Lenders (Banks) are Servicers with NO authority to modify these loans
Only Loan Owners can modify the Loans.
Since Loans were not assigned to specific Securities, Investors don’t own the Loans either.
Confuse and obfuscate to the max to achieve affordable “settlements” with Fed and States