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ML-Implode Exclusive: Foreclosure Expert Mildred Wilkins Blasts Industry in “Fraudclosure” Report

Beginning to End

Lest you forget (or you were not aware) most of our big lenders have their retail loan division which is separate from their loan servicing division. They created liar loans and untold other kinds of crazy financial products but sold them immediately thereby ending their risk of loss should there be a default. We are talking about loans so clearly destined for default that any under-writer could have projected a likely default, even if they just started work in underwriting yesterday. It has been widely documented that there was rampant fraud in appraisals, documentation of debt to income ratios and other tell-tell signs that all was not well with the loan from day one. All the more reason to get it out of your possession as quickly as possible.

Lots of loans were needed to fuel the securities demand—demand which was created by the folks who then went out and got the mortgages which were the necessary ingredient to amass hundreds of billions of dollars in income and allow billions of dollars in bonuses.

Never mind:

  1. the laws we will need to break/ignore
  2. the folks who will find out in a little while that they couldn’t afford the loan
  3. the folks promised they could refinance when we know they could not
  4. the requirements for mortgages to be part of a trust under NY law
  5. the possibility that this may not work because, well because, we are the bank…

So mass marketing, cajoling, misrepresentation and outright fraud coupled with government promotion of home ownership all worked to the advantage of the financial institutions who controlled the game and the gullible consumers both rich and poor (but mostly in between) who had never heard of the BANK GAME, consequently, did not know that they were necessary pawns in this fascinating pasttime. Seriously, I challenge you to view this as a game of chess between a Olympic chess champion and yourself. Do you have even a tiny chance? (I do not want to hear from the four folk who read this who are chess champions, I mean the rest of the people). Holding on to loans once they were generated would have been foolhardy, especially since you know when you have something which is a piece of crap. So transfer at or immediately after closing became and remains the norm.

Let’s Take a Look At Servicing (one of the tasks outlined in the BANK GAME).

Dispense with the risk, but holding on to servicing. Now servicing was another story. And another large income stream. Servicing offered lenders a golden opportunity to literally clean up financially with no real oversight. I am quite aware that there are several federal agencies who have the responsibility for oversight. I make no apology for the statement that banks were not being overseen because the facts as revealed and the protracted length of time during which the fraudulent practices which have brought us to this time in history continued clearly demonstrate a lack of real oversight. Our reality is ample evidence that our regulatory agencies have some ‘splaining to do’.

Servicing by the ‘Unofficial” rule book

Lenders created servicing divisions and engaged in contracts with the investors who ‘supposedly’ owned the mortgages to handle all the mundane tasks for them for a fee. There were contracts in place and federal and state laws which were required to be followed, under the terms of the contracts, but who cares about contracts. IF YOU ARE A BANK …You can do whatever works for you, make up your own rules as you go along and after awhile almost everyone believe what you say is accurate because, well, because you said so, and you are the bank. Your representatives carry themselves with a sense of authority (sometimes confused with entitlement) and when you combine banker and attorney it’s a tough contest for which of them can give a better performance for righteous indignation when questioned. The world would tilt if you mentioned a point of law which they were violating and they would quickly tell you “no borrower has been defaulted on who wasn’t behind on their mortgage”.

If you don’t believe them, please take some time to read:

  1. “Marshall Watson Attempting to Foreclose on VA woman RE a Port St Lucie home she sold in 1994” story at www.4closurefraud.org
  2. “75 year old San Jose Woman Reclaims Illegally Foreclosed Property from WAMU” also from www.4closurefraud.org
  3. “Facing Holiday Eviction, Group Protest Bank”
  4. Plus numerous other stories at www.4closurefraud.org and other websites

The lender’s servicing obligations included everything from:

  • collecting payments to
  • handling transfers of assignments,
  • recording such transfers according to local laws (oopsie)
  • collecting payments, handling workouts when needed (according to the directions of that specific guarantor—if it is not too much trouble)
  • processing foreclosure, (when needed, following all applicable laws—if it is not toomuch trouble)

The filing of the lost note affidavits as well as other falsified documents was needed to fulfill the lenders’ contractual obligation to complete foreclosure (in the absence of the real documents) Most of us are familiar with the mandate to just get the job done. So implementing strategies such as robo-signers, foreclosure mills, the use of non-attorneys to perform legal work, and numerous other actions were all a direct consequence of the need to complete servicing as required. If you misplaced a note or two (or left them somewhere on purpose because that served your purposes at the time and now you can’t admit that you have them) there are numerous document production mills which can get you what you need. See:

  • Sworn testimony of Nationwide Title Servicing employees available at www.4closurefraud.org
  • Other documentation at the same site

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There Are 9 Responses So Far. »

  1. My family’s saga is being told on nhjustice.net. It is a very ugly story about how a small state has been captured by big financial interests, and has used the ‘color of law’ to take private property from the average citizen and turn it over to the large financial/business interest. In our case, the State overtly took $100,000, but there may have been more trading that we are not aware of.

    Today, I am schedule to have a competency hearing. The State’s Office of Forensic Examiners found me not competent because I essentially reported exactly what you are reporting in this paper. The only difference was that I used the specifics of my case. And, the names are very well know. And, on is about to get the medal of freedom award for his assistance in the 2008 bailout of the banksters.

    Thank you for continuing to write on this issue. Individual citizen families cannot fight the foreclosure fight alone. We continue to pray that some authority will intervene on our behalf. Perhaps I will know more after 1Pm today. That is the time of the competency hearing.


    Jean E. Allan aka Jean E. Allan Sovik

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  3. For anyone who has had their property fraudulently sold, they have another battle to fight – that of the Title companies that insured the forged deeds.

    After having Astoria Federal S & l ,Successor in Interest to Fidelity NY FSB state in New York Supreme Court in front of Judge Alice Schlesinger, Its Indemnify, Indemnify Indemnify , we are stepping aside and the title coompanies are stepping in.(Astoria Federal with corrupt debt collector attorneys Mullooly, Jeffrey Rooney & Flynn auctioned off my two NYC condos to straw buyers without even owning my two properties.

    Fast forward – The Bank got rid of these corrupt attorneys MJRF and has new attorneys. At that point when the banks new attorneys said it’s Indemnify , I should have been given back possession of my two condos.

    Instead corrupt attorney Thomas Malone for Fidelity National Title and corrupt attorney David K Fiveson of Coronet Title did not want to indemnify the forged deeds they insured but wanted to be Intervenors instead and be heard and what they told the court is time makes forged deeds good.


    The Title Companys , Judge Alice Schlesinger of NY Supreme Court, and I all know there is no “equity” in a forgery.

    With the fraud being discovered at William P Foley’s (CEO) Fidelity National Title ,Fidelity National Financial and Lenders Processing Service (DOCX) the title attorneys statement to Judge Schlesinger “we have equity”,
    only meant there was money under the table for the judge and Judge Schlesinger said to me, “it doesn’t look good for you” and she ruled against the law.

    Judge Alice Schlesinger perpetrated Title fraud with Fidelty National Title and Coronet Title.

    I am the true owner of apts xx and xx at xxxxxxxxx and I will continue to pursue to get possession of my two condos.

  4. Hi Mildred:

    Great article on the title crisis. I am giving a CLE class on foreclosures and title and in my research have found what you are saying regarding MERS, securitization and standing to foreclose.

    My read is that the new owners of the homes who bought foreclosures or REO’s probably won’t be thrown out avoiding a claim to the title company. The original homeowner, although delinquent and subject to a legally done foreclosure, may have a claim against the lender who foreclosed illegally and took their house.

    It is somewhat confusing unless I do a flow chart, but in your opinion who is going to be held culpable including the referee. Thanks.

    Mike Haltman

  5. Great article but you miss real valid arguments. 99% of the notes are unenforceble if transfered correctly into the trust. Why?

    )1 Because once the notes enter into the REMIC they are no longer notes but have been converted into bonds. Once done, they can not be undone.

    2) Likewise the mortgages/DOT also need to transferred, assigned and recorded at the local level in order to get into the trust. The problem is the trust can’t hold assets or they lose there IRS tax free status and their ability to be bankruptcy remote.

    What you have here realy is the sale of unregistered securities to unknowing investors (homeowners). The banks and securities underwriters knew this all along and that’s why nothing was ever transferred and they used MERS to hide it all.

    Let’s follow the rabbit further down the hole. When a homeowner makes a payment that payment was never truly credited on the books of his loan. Why? Because the money was paid into a pool(trust) where the bonholders were paid in their tranches. This why they will not and cannot produce the loan level files.

    On top of that you need to also factor in the over$ 7 trillion dollars in bailout money the FED(foreign owned) gave out and the billions of dollars the FDIC bought back of MBS from all the players. Also, the CDOS, CDS, insurance money that has already been paid off.

    There is no money owed and their is no clear title! How do you fix that mess?

    Iit is FRAUD from the creation at every juncture of the game and all the players are complicit including thegovernment for the coverup.

  6. This is directed to Michael Haltman’s question. As I’ve read it,if fraud was used in a lawsuit, and then, post judgment proved, then the original lawsuit is deemed VOID ab initio…. (or “at initiation”)that means it’s as if the judgment was never rendered! Ergo, the “new owners” own nothing! How could they? They were, after all, only a part of a fraudulent scheme. And the correct procedure for the “victims” who originally lost their homes would be to submit a motion to vacate a void judgment and once ruled on, to file an eviction notice. Woe befalls those who participated in the fraud, the buyers & the sellers of the illegally foreclosed on property.

  7. I read the article with great interest although I am already familiar with this mess. However, great as the information may be, it still doesn’t answer any questions. For example, here’s my predicament:

    1. I refinanced my mortgage in Nov. 09 with BofA. At the time of the closing, I was provided with blank copies of all my docs. Shortly thereafter, I received a notice telling me that they had already shuffled the mortgage around to someone else. When this mess hit the public eye, I started to track my papers but to no avail. My payments are going to (what seems) is BofA and I’m receiving statements from what seems to be BofA. I requested a copy of my Deed and Note and, instead, received a copy of my appraisal report which tells me that they don’t have the original documents. I hold a recorded Deed, Note and Title from Chase (my prior mortgagor) but have not received the discharged papers from them either. So what does that mean? What am I supposed to do? Where do I start looking? What are my options? Coincidentally, my mortgage is in good standing and I’m in no danger of losing the home that I know of.

  8. Lots of fraud folks. Many of the crooked attorneys who foreclose very homes are financed by the mortgage companies they foreclose for. Many of the judges are taking bribes thru their homes also being financed multiple times and then paid off by robo signers. Basically check the records they’ll get loans totaling $200,000 up to millions on the same home some show 2-3 loans a year. The loan is quickly paid off, a few months later they’re given another loan. No one can do this, but they can. The government doesn’t inquire about a fat check like this. They walk away with big bribes to go against borrowers no matter even though they know it’s a fraudulent loan. Many of these attorneys and judges allegedly make no house payments.

    Their income would not sustain this but they have been also trustees for predatory lenders also and trustees for home improvement companies that defrauded borrowers which turned into predatory loans. This is how they proved themselves worthy to be judges and hold a license to defraud the borrowers. This has been going on for years. They are being paid by the title companies and banks to do this folks. This is a big network all the attorney bar associations want to keep the crooks on the bench. This the very reason when folks have been defrauded by mortgage and title companies most attorneys refuse to take the case or if they do take the case won’t fight and just take clients money. They know what will happen if they challenge the crooks, they won’t ever win another case in court. This thing is sinister folks, but true

  9. I am involved in several loans with Ocwen as servicer. They have unbelievably sent me copies of bills they have submitted in my case (one for a property already sold at auction to them; one which they refuse to sell despite my many requests to do so)which total over $30,000 for two BPO letters, which normally run around $100 apiece. Clearly they’re milking somebody – I guess the taxpayer. Isn’t anyone watching these thieves?

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