LOANS DESIGNED TO FAIL

It is now more than evident that subprime loans, or any mortgage loans, were designed, or had no option but, to fail so that money could be made throughout the process by all involved then finally on insurance covering the REMIC, based on original loan amount, as well as CDS's (credit default swaps) the property retained and sold once more into the scam. "Gee Mom .. all the kids were doing it" is hardly an excuse and I urge everyone whether still in your home and fighting or wrongfully/illegally foreclosed to read what is here and take action against those who have caused you harm.

EXAMPLE:  http://www.foreclosurehamlet.org/profiles/blogs/why-do-they-want-to...

                                 /////// FREE LEGAL ADVICE SITES ///////

                                            http://www.avvo.com/

                                            http://www.justia.com/

                                            http://www.rocketlawyer.com/   

                                            http://www.lawguru.com

PBS ... FRONTLINE... THE UNTOUCHABLES :

http://video.pbs.org/video/2327953844 

MONEY, POWER AND WALL STREET SERIES ... plus

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

CREDIT DEFAULT SWAPS, etc,

http://www.pbs.org/wgbh/pages/frontline/oral-history/financial-cris...

Mortgage Fraud - Part 1 of 6 - Dateline NBC:

http://www.youtube.com/watch?v=yDb_Zhry-IY&feature=relmfu

Full coverage 60 Minutes on the financial crisis:

http://www.cbsnews.com/8334-504803_162-57418062-10391709/full-cover...

For a broader understanding of what transpired and continues to this day see here:

http://www.bloomberg.com/video/72756316-michael-burry-profiled-bloo...

Foreclosure Mill Fraud Busted.  How MILLs are making money:

http://www.youtube.com/watch?v=E6JEgYs8A-Q&feature=related

Homeowners, advocates want bank reps jailed for foreclosure fraud:

http://www.cbsatlanta.com/story/19465592/homeowners-advocates-want-...

Survey of State Foreclosure Laws:

http://www.nclc.org/images/pdf/foreclosure_mortgage/state_laws/surv...

Crime Pays :

http://www.aljazeera.com/programmes/insidestoryamericas/2013/01/201... 

THEN ... take a look at these government reports:

Financial Crisis Inquiry Commission (FCIC) reported its findings in January 2011. In briefly summarizing its main conclusions the Commission stated: "While the vulnerabilities that created the potential for crisis were years in the making, it was the collapse of the housing bubble—fueled by low interest rates, easy and available credit, scant regulation, and toxic mortgages— that was the spark that ignited a string of events, which led to a full-blown crisis in the fall of 2008. http://en.wikipedia.org/wiki/Financial_Crisis_Inquiry_Commission#Co...

http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf

Wall Street and the Financial Crisis: Anatomy of a Financial Collapse is a report issued on April 13, 2011 by the United States Senate Permanent Subcommittee on Investigations. The 639 page report was issued under the chairmanship of Senators Carl Levin and Tom Coburn, and is colloquially known as the Levin-Coburn Report. After conducting “over 150 interviews and depositions, consulting with dozens of government, academic, and private sector experts” found that “the crisis was not a natural disaster, but the result of high risk, complex financial products, undisclosed conflicts of interest; and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street.” ^[1] In an interview, Senator Levin noted that “The overwhelming evidence is that those institutions deceived their clients and deceived the public, and they were aided and abetted by deferential regulators and credit ratings agencies who had conflicts of interest.”

http://en.wikipedia.org/wiki/Wall_Street_and_the_Financial_Crisis:_...

http://www.hsgac.senate.gov//imo/media/doc/Financial_Crisis/Financi...

The government knew and knows all yet HO's are still being wrongfully/illegally/fraudulently foreclosed and nobody, or very few indeed, are being brought to task and put in jail. IT IS THE FORECLOSURE MILLS AND ATTORNEYS WHO ARE EMPLOYED BY THEM WHO ARE AIDING AND ABETTING FRAUD IN CONSPIRACY WITH THE BANKS THAT MAKE THIS THEFT OF THE AMERICAN PEOPLE POSSIBLE !!!  

Real Estate Settlement Procedures Act:

http://en.wikipedia.org/wiki/Real_Estate_Settlement_Procedures_Act

Truth in Lending Act:

http://en.wikipedia.org/wiki/Truth_in_Lending_Act

Home Ownership and Equity Protection Act:

http://preventingforeclosure.org/foreclosure-rights/home-ownership-...

The following article gives explanation of securitization and how predatory lending played a pivotal role in the ongoing housing dilemma.  Further here, I have provided both law and case law that may help you understand how you may have been harmed, save your home and/or bring suit under various causes of action to those who have caused you harm. This blog is intended to be informative and helpful to those seeking legal counsel or presenting pro se/in pro per in state or federal court. Should you find anything mentioned here pertinent to your situation please google the subject for more information and case law decision. I continually add to this blog and repost when I do.

http://www.msfraud.org/law/lawarticles/PREDATORYSTRUCTUREDFINANCE.pdf

FEDERAL RESERVE REPOSITORY OF FINANCIAL DATA (BANK HISTORY M&A)

http://www.ffiec.gov/nicpubweb/nicweb/InstitutionHistory.aspx?parID...

GO FEDERAL ... ARTICLE III OF THE UNITED STATES CONSTITUTION.

http://en.wikipedia.org/wiki/Article_Three_of_the_United_States_Con...

http://www.law.cornell.edu/constitution/articleiii/ 

"Standing is an Article III jurisdictional issue. It deals with injury in fact first of all. And I can't imagine anybody better than the party that says they are entitled to lawful possession of the house because something was wrong with the foreclosure process. And even one better than that, to actually establish injury in fact. In fact, they are probably the only people in a case like this who could do it."

"So they are late, and they are later than in most other cases where I've applied this. But from an Article III perspective, from a pure constitutional standing perspective, I don't think that matters."

"but there might still be a damages remedy against the parties who wrongfully foreclosed."

http://msfraud.org/LAW/Lounge/Bocardo-v-SPS-Fannie_unconstitutional...

AND ... Federal Law TRUMPS state law almost always

http://en.wikipedia.org/wiki/Supremacy_Clause

http://en.wikipedia.org/wiki/Federal_preemption

http://en.wikipedia.org/wiki/Fourteenth_Amendment_to_the_U.S._Const...

http://www.oyez.org/cases/2000-2009/2006/2006_05_1342 

http://www.chadbourne.com/files/Publication/41634f55-aca8-4dc1-8dae...

http://www.fclr.org/fclr/articles/html/2010/baker.pdf

FEDERAL FAIR DEBT COLLECTION PRACTICES ACT:

In addition to common law theories, most states have Unfair or Deceptive Trade Practices statutes modeled off the Federal Trade Commission Act which may govern predatory mortgage lending practices and terms. Sometimes called “little FTC Acts” these statutes give consumers a private cause of action allowing them to assert claims or defenses against lenders that violate recognized trade standards. Most importantly, these statutes typically treat federal trade commission regulations and opinions as presumptive evidence of a deceptive or unfair trade practice. Thus, the rules and standards used by the FTC in its high profile cases against the largest predatory lenders are available through private state causes of action in some jurisdictions against some types of lenders.

The primary federal statute governing abusive practices in debt collection is the federal Fair Debt Collection Practices Act (“FDCPA”). The statute also includes disclosure provisions, such as a requirement that debt collectors give consumers written validation and verification of the debt in order to prevent collection of debts not actually owed. The statute is enforced by the Federal Trade Commission, banking regulators, and a private right of action allowing consumers to sue for statutory punitive damages, costs, and attorney’s fees.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

LAW FIRM FOUND LIABLE UNDER FDCPA IN MICHIGAN

http://stopforeclosurefraud.com/2013/02/17/mellentine-v-ameriquest-...

FEDERAL RULES OF CIVIL PROCEDURE

These rules govern the procedure in all civil actions and proceedings in the United States district courts, except as stated in Rule 81. They should be construed and administered to secure the just, speedy, and inexpensive determination of every action and proceeding.

http://www.law.cornell.edu/rules/frcp/

FEDERAL MAIL AND WIRE FRAUD LAWS MAY BE USED

Federal mail and fraud laws are used in a variety of cases, such as bank, healthcare, mortgage, pension, and securities fraud. Although more specific laws may also apply in some cases, prosecutors use mail and wire fraud laws in part because the courts are very familiar with them.  These laws can be used to charge fraud if (1) a federal service was used, and (2) there was a plan to defraud.  According to these requirements, anyone who uses a letter, text message, email, or phone call to further a plan that may involve fraud can be charged witih mail or wire fraud.

http://www.avvo.com/legal-guides/ugc/federal-mail-wire-fraud-laws

http://www.fas.org/sgp/crs/misc/R41930.pdf

http://www.shouselaw.com/federal-wire-fraud.html 

CALIFORNIA FEDERAL DISTRICT TRIAL COURT UPHOLDS CLAIMS FOR IMPROPER ASSIGNMENT, ACCOUNTING, UNFAIR PRACTICES:   In an extremely well-written and well reasoned decision Federal District Court Judge M. James Lorenz denied the Motion to dismiss of US Bank on an alleged WAMU securitization that for the FIRST TIME recognizes that the securitization scheme could be a sham, with no basis in fact.

http://livinglies.wordpress.com/2012/08/02/ca-trial-court-upholds-c...

FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989

http://www.fdic.gov/regulations/laws/rules/8000-3100.html

The new working group will pursue both criminal and civil wrongdoing, including false statements, mail and wire fraud, and failure to comply with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, passed in the wake of the savings and loan crisis. (c)  VIOLATIONS TO WHICH PENALTY IS APPLICABLE: This section applies to a violation of, or a conspiracy to violate-- (1) section 215, 656, 657, 1005, 1006, 1007, 1014, or 1344 of Title 18; or (2) section 287, 1001, 1032, 1341 or 1343 of Title 18 affecting a federally insured financial institutions.  http://www.law.cornell.edu/uscode/text/18  or http://www.law.cornell.edu/uscode/text/18/part-I/chapter-63

FINANCIAL PROMISE MUST BE IN WRITING: 

(2) An action shall not be brought against a financial institution to enforce any of the following promises or commitments of the financial institution unless the promise or commitment is in writing and signed with an authorized signature by the financial institution:

http://legislature.mi.gov/doc.aspx?mcl-566-132  

FRAUD IN THE FACTUM/INDUCEMENT used in predatory lending: http://en.wikipedia.org/wiki/Fraud_in_the_factum

UNCLEAN HANDS :  http://en.wikipedia.org/wiki/Unclean_hands

SLANDER OF TITLE:  http://en.wikipedia.org/wiki/Slander_of_title

UNJUST ENRICHMENT: http://en.wikipedia.org/wiki/Unjust_enrichment 

BANKS, AS THEY ARE ESSENTIALLY COLLECTING DEBT FOR THEMSELVES OR IN THEIR SERVICING DUTIES FOR OTHERS, ARE ALSO DEBT COLLECTORS AND SUBJECT TO LAW UNDER THE FEDERAL FDCPA:

The second preliminary issue is whether defendant may be considered a debt collector under the Rosenthal Act and FDCPA.  Plaintiff’s complaint alleges defendant is debt collector because they “regularly attempt to collect debts alleged to be due another.”  According to the Rosenthal Act, “the term ‘debt collector’ means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection.”  Civ. Code § 1788.2.  The FDCPA similarly states, “[t]he term ‘debt collector’ means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.”  15 U.S.C. § 1692A(6).  Defendant only cites cases relating to foreclosures as authority to show they are not debt collectors.  Whether a foreclosure is debt collection is irrelevant.  This Court finds that defendant is sufficiently pleaded as a debt collector.

FORECLOSURE MILLS/ATTORNEYS OWE HOMEOWNERS/BORROWERS A DUTY 

Two more things. The first has to do with the duty of care that attorneys owe certain non clients. In the present context this would be the foreclosure mill and the HO's. Then that an attorneys breach of ethics resulting in harm will find him/his firm liable for damages.  As in all lawsuits a number of specific factors must be present and provable before this strategy might be employed. One main factor here is if the HO has retained counsel or is in pro per/pro se.

See here Section 1.1:410 in brief ... a non-client may be able to show that an attorney owed him or her an independent fiduciary duty. To claim breach of fiduciary duty, there must be a situation in which the non- client reasonably reposed faith, confidence and trust in the attorney�s advice. 1.1:410 Duty of Care to Certain Non-Clients http://www.law.cornell.edu/ethics/mi/narr/MI_NARR_1_01.HTM

Then there is ... The annotation on "Attorney's Liability to One Other Than Immediate Client, For Negligence in Connection With Legal Duties" 61 ALR 4th 615 lists four different bases for liability to others than the person retaining the lawyer: More can be found here ... http://www.expertlaw.com/library/practice_management/third_parties....

and More on Attorneys Duty To Non Client http://www.nesl.edu/userfiles/file/lawreview/vol37/1/cheng.pdf and   http://lawyerquality.com/article_non-client_suits.html  http://www.lacba.org/showpage.cfm?pageid=2134  http://www.leagle.com/xmlResult.aspx?xmldoc=1981616107MichApp509_15...

http://books.google.com.sa/books?id=Dw1p4T3KTxMC&pg=PA110&l...

FORECLOSURE MILLS ARE DEBT COLLECTORS ... SUE EM FOR UDAP !!!

SUE EM FOR FRAUD AND PRESENTING FRAUD TO THE COURT !!! 

SUE EM FOR AIDING AND ABETTING THE BANKS FRAUD !! See here recent federal case law showing mills as DEBT COLLECTORS

http://scholar.google.com/scholar_case?   case=14725595886762813517...

http://scholar.google.com/scholar_case case=5190914345956790666&...

http://caselaw.findlaw.com/us-6th-circuit/1604483.html

6th Circuit Win Against Predatory Mill

http://www.insidecounsel.com/2012/07/18/regulatory-liability-for-fo...

http://ohiofraudclosure.blogspot.com/2012/06/us-court-of-appeals-sm... 

FRAUD, SILENT FRAUD AND INNOCENT MISREPRESENTATION

In most fraud cases, there is active misrepresentation by the defendant. In some, the misrepresentation occurs through the defendant's silence on a key issue.

http://www.expertlaw.com/library/business/fraud.html#3

Extrinsic fraud is fraud that "induces one not to present a case in court or deprives one of the opportunity to be heard [or] is not involved in the actual issue

http://en.wikipedia.org/wiki/Extrinsic_fraud

Intrinsic fraud is an intentionally false representation that goes to the heart of what a given lawsuit is about, in other words, whether fraud was used to procure the transaction

http://en.wikipedia.org/wiki/Intrinsic_fraud

THE FRAUD EXCEPTION TO THE ROOKER FELDMAN DOCTRINE

District Court losers allowed to appeal in Federal court in the presence of fraud, deception, accident, mistake, or "other gross procedural error" a federal court may declare the judgments of a state court "void ab initio."78

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1971419

ASSIGNMENT (OR NOT) BY OPERATION OF LAW ... KIM v JPMORGAN CHASE BANK, NA

By contrast, in giving meaning to the phrase “operation of law,” we have carefully considered decades-old precedent from this Court, as well as consulted a legal dictionary. We defer to these established authorities for the proposition that a transfer that takes place by operation of law is one that occurs unintentionally, involuntarily, or through no affirmative act of the transferee.

FURTHER

The dissent opines that nothing exists that could be recorded in the chain of title
evidencing the assignment of interest. This is untrue. For example, defendant could file
a copy of the P&A agreement with the register of deeds.

http://courts.mi.gov/Courts/MichiganSupremeCourt/Clerks/Recent%20Op...

http://courts.mi.gov/Courts/MichiganSupremeCourt/Clerks/Oral-Argume...  

MILL FOUND GUILTY OF FRAUD

In this fraud and abuse of process case, plaintiff Cynthia Howard appeals the trial court’s

grant of defendant Trott & Trott, PC and Donald L. King’s motion for summary disposition

under MCR 2.116(C)(7) (statute of limitations), and MCR 2.116(C)(8) (failure to state a claim

on which relief may be granted). We affirm in part and reverse in part and remand.

http://www.michbar.org/opinions/appeals/2012/091112/52629.pdf

Flynn v Korneffel ... case law regarding FRAUD (note case citations)

"Specifically, we must decide whether the land contract vendees in default were prohibited by fraud from redeeming the property in question". Marble v Butler ... "Before the expiration of the redemption period, the vendor refused to reveal the amount remaining due on the land contract and failed to furnish an abstract of the property in accordance with the contract. Further, the vendee attempted to tender the entire balance due under the contract, and the vendor refused to accept the payment and execute a deed.²⁷  

http://www.leagle.com/xmlResult.aspx?xmldoc=1996796547NW2d249_1786....  

The Classic example of TORTIOUS INTERFERENCE incurs when one party induces another party to breach a contract with a third party, in circumstances where the first party had no privledge to act as it does and acts with knowledge of the existence of the contract.  Such knowledge is termed tortious inducement of breach of contract.  So ... if your servicer or mill told you to stop paying to qualify for HAMP, etc. such could very well qualify.  Or, as in my case, where the mill refused my legally tendered offer to pay in full.

http://en.wikipedia.org/wiki/Tortious_interference

REFUSAL OF PAYMENT IN FULL

AIDING AND ABETTING:

It is a long standing common law principle that a business or individual can be held liable for AIDING and ABETTING the wrongful acts of another. The Restatement of Torts, Second suggests that, “[f]or harm resulting to a third person from the tortious conduct of another, a person is liable if he . . . (b) knows that the other’s conduct constitutes a breach of a duty and gives substantial assistance or encouragement to the other so to conduct himself.” The alleged aider-abetter itself need not owe a duty of care to the victim. And most courts agree that the alleged aider-abetter need not reap a personal financial benefit from the wrongful conduct to be liable. But many courts consider financial gain by the alleged aider-abetter as evidence of knowledge of and/or assistance to the tortious behavior. Moreover, the alleged aider and abetter need not even posses a wrongful intent, provided that she knows the conduct in question is tortious. Courts are also amenable to use of the common law doctrine of aider abetter liability to enforce statutes which do not by their own terms define or contemplate liability for aiding and abetting. While most aider-abetter liability cases involve allegations of fraud, some courts have been receptive to applying aider-abetter liability to unfair and deceptive trade practice claims as well.

http://www.michbar.org/consumer/pdfs/may02.pdf

In the instant suit, the Morganroths sued only DeLorean's lawyers in the United States District Court for the District of New Jersey. n1 Count I of the complaint alleges that defendants conspired to commit fraud. It alleges that defendants agreed to make misrepresentations and omissions to defraud the plaintiffs; they took tortious steps in furtherance of those agreements, causing actual and consequential damages including attorneys' fees and expenses involved in recovering on the Michigan judgment. In Count II, the Morganroths claim that defendants knowingly aided and abetted DeLorean's acts of fraud and concealment  [*10]  for the purpose of hindering plaintiffs' efforts to enforce the judgment, causing actual and consequential damages. In Count III, plaintiffs assert that defendants themselves committed fraud through their knowing material misrepresentations, fraudulent concealment, and wrongful withholding of information, and that these acts and omissions proximately caused plaintiffs actual and consequential damages.

http://www.uniset.ca/lloydata/css/331F3d406.htm

CONSPIRACY:

A second possible avenue of asserting liability for concerted wrongdoing in predatory lending securitization is civil coconspirator liability. Generally a civil conspiracy is defined as “a malicious combination of two or more persons to injure another in person or property, in a way not competent for one alone, resulting in actual damages. You see ... the bank NEEDED the mill to bring the fraud to the court as it was "not competant" to do so itself.

Other decisions have denied dismissal of civil coconspirator liability claims for range of mortgage lending industry participants including brokers, home sellers, lenders, appraiser, and attorneys.

This above is contained in the Abstract by Chris Peterson at the start of this blog.  Page 62.

The banks may have perpetrated the fraud ... BUT ... it was the banks attorney/FORECLOSURE MILL that presented it to the court and as attorneys were/are bound to perform due diligence and knew or should have known the banks fraud before presentation to the court. As such all should be disbarred, disgorged of all illegally gained funds and PUT IN JAIL while made to rectify and find restitution for those that they have harmed !!!( after being found guilty in a court of law ... which, goes without saying)

Claims against attorneys for aiding and abetting a breach of fiduciary duty or conspiring to breach a fiduciary duty present different and more difficult challenges for defense counsel than a more traditional legal malpractice case.

The four elements of a conspiracy, namely: (1) a corrupt agreement between two or more parties; (2) an overt act in furtherance of the agreement; (3) the parties’ intentional participation in the furtherance of a plan or purpose; and (4) resulting damage or injury.”

http://en.wikipedia.org/wiki/Conspiracy_(civil)

http://en.wikipedia.org/wiki/Conspiracy_(crime)

http://www.mccarter.com/files/Publication/6bbc7d15-773b-4c47-a64a-2...

http://www.paragonbrokers.com/media-hub/2011/conspiring-to-commit-o...

§ 39. PROFIT DERIVED FROM OPPORTUNISTIC BREACH:

(1) If a breach of contract is both material and opportunistic, the injured promisee has

a claim in restitution to the profit realized by the defaulting promisor as a result of the

breach. Liability in restitution with disgorgement of profit is an alternative to liability for

contract damages measured by injury to the promisee.

http://apps.americanbar.org/buslaw/newsletter/0081/materials/pp5.pdf 

FEDERAL TRADE COMMISIONS ACT:

—Section 5

Appendix: Statement on Unfair or Deceptive Acts or Practices by State-Chartered Banks where it ‘‘causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.’’ 8 A representation, omission, or practice is deceptive if it is likely to mislead a consumer acting reasonably under the circumstances and is likely to affect a consumer’s conduct or decision regarding a product or service. Moreover, banks that either affirmatively or through lack of oversight permit a third-party debt collector acting on their behalf to engage in deception, harassment, or threats in the collection of monies due may be exposed to liability for approving or assisting in an unfair or deceptive act or practice. http://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf 

The IRS ... 

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief...