We are more than pleased to present the work of Nye Lavalle, who discovered the depth of Securities Fraud, and began publishing on the subject in the mid-nineties. No one was listening.
He has stayed true to his task. We’re going to present a series of his articles (to be published over time(. Read this as a hands-on guide to what happened in the Mortgage Securitization industry. An off-shoot of Investment Banking financial engineering.
This is the story of what happened to multi-millions of homeowners with mortgages issued since 2000. This is the who, what, when, why and how.
[We always say that our intent is to give you: information, thus knowledge, understanding, confidence, courage and tools to Repudiate Illegal / Fraud Base Housing Debt. This series of articles constitutes all of those attribute. ‘
Nye presents detailed forensic evidence and not only names names, but, offers exactly what was done to most loans as they went from origination (at the escrow closing table) through the Securitization process up to the present day, if, of course you haven’t been already foreclosed on. He estimates as high as 90% of all mortgages since 2000 were in fact Securitized through Wall Street.
We drew this material from his seminal report entitled:
”Report On Fraudulent & Forged Assignments Of Mortgages & Deeds In U.S. Foreclosures ” You can find the complete report here.
We begin by reprinting excepts from the Report with Nye’s “Dedication.”
”Dedication Throughout America, countless millions of American homeowners have been unlawfully foreclosed upon via fraudulent means. For over fifteen years, I have dedicated my life and journey towards the protection of American families, investors, and taxpayers. Until the past few years, few, except family, friends, and some trusted colleagues, gave credence to the warnings I cried out. My motivation wasn’t money, but justice, safety, and protection of the American Dream that so many Americans sought and attained.”
”Sadly, as you will read in this report, I was right in virtually all of my warnings. I have no regrets except that I could not do more. I pray and feel for all those victimized and can only say that I did all I could and wished I could have done more. However, the tides are changing and the light is coming that will shine on the evil of greed and arrogance.”
”1. I make this report based upon facts personally known by me and my investigation, research, review, and analysis of evidence provided in the many lawsuits I have testified in and assisted lawyers with; gathered from other advocates and lawyers; thousands of other lawsuits; hundreds of thousands of papers, reports, and documents I have read, reviewed, and researched as well as filings filed with the Securities and Exchange Commission (SEC) available and retrievable at the Edgar database.
”2. My analysis, statements, opinions, and findings are only as accurate as the information and data provided from the evidence presented and the sources of information used in my research and investigation.
”3. Recently, there has been a plethora of court rulings, pleadings, and even civil and criminal investigations surrounding fraudulent and forged assignments of mortgages, deeds to secure debts, and deeds of trust across America. In fact, a Google search1 for mortgage assignment fraud returns over 700,000 hits with movies, examples, and court rulings relating to such frauds and abuses.
”4. As an consumer/investor advocate and activist, I first identified this fraudulent assignment scheme in the mid to late 90s when various servicers were conducting judicial and non-judicial foreclosures in their names, rather than the real-party-ininterest and true owner and equitable holder of borrower’s promissory notes.
”5. One employee of a major servicer, EMC Mortgage a unit of JPMorgan Chase told me that “you need to sue the lawyers, they are all in on it” meaning the scam and scheme of fraudulent and unlawful foreclosures being conducted in the name of servicers who had no real ownership or interest in the note and thus no right or authority to conduct a foreclosure.
”6. As I referenced above, mortgage assignment fraud is getting a lot of attention by state Attorney General offices, U.S. attorneys, Secretary of States, and both state and federal judges.
”7. I shall highlight for this honorable Court a few examples of recent investigations, decisions, rulings, and orders across America in the following sections of this report:
”Recent National & Mortgage Industry News Into Criminal & Civil Investigations Surrounding Fabricated, Forged, & Fraudulent Assignments By Foreclosure Lawyers, Servicers, & Vendors 8. As shown above and herein, there is increased judicial, state, and federal scrutiny of the fraudulent foreclosure and assignment schemes that are receiving increasing national and local media attention as in a recent article in the St. ”Petersburg Times evidencing that even the notaries are involved in the abuses. The following comments in a story by Kate Berry in the National Mortgage News … stated the following:
”a. The backlash is intensifying against banks and mortgage servicers that try to foreclose on homes without all their ducks in a row. Because the notes were often sold and resold during the boom years, many financial companies lost track of the documents. Now, legal officials are accusing companies of forging the documents needed to reclaim the properties. Recently, the Florida Attorney General’s Office said it was investigating the use of “bogus assignment” documents by Lender Processing Services Inc. and its former parent, Fidelity National Financial Inc. And a federal judge in Florida has ordered a hearing to determine whether M&T Bank Corp. should be charged with fraud 2 http://www.tampabay.com/news/business/realestate/when-bryan-j-bly-became-nb-did-he-know-what-he-was-signing/1103508 after it changed the assignment of a mortgage note for one borrower three separate times.
”b. “Mortgage assignments are being created out of whole cloth just for the purposes of showing a transfer from one entity to another,” said James Kowalski Jr., an attorney in Jacksonville, Fla., who represents the borrower in the M&T case. “Banks got away from very basic banking rules because they securitized millions of loans and moved them so quickly,” Kowalski said.
”c. In many cases, Kowalski said, it has become impossible to establish when a mortgage was sold, and to whom, so the servicers are trying to recreate the paperwork, right down to the stamps that financial companies use to verify when a note has changed hands. Some mortgage processors are “simply ordering stamps from stamp makers,” he said, and are “using those as proof of mortgage assignments after the fact.”
”d. Such alleged practices are now generating ire from the bench. “The court has been misled by the plaintiff from the beginning,” Circuit Court Judge J. Michael Traynor said in a motion dismissing M&T’s foreclosure action with prejudice and ordering the hearing.
”e. In a notice on its website, the Florida attorney general said it is examining whether Docx, an Alpharetta, Ga., unit of Lender Processing Services, forged documents so foreclosures could be processed more quickly.
“These documents are used in court cases as ‘real’ documents of assignment and presented to the court as so, when it actually appears that they are fabricated in order to meet the demands of the institution that does not, in fact, have the necessary documentation to foreclose according to law,” the notice said.
”f. Docx is the largest lien release processor in the United States working on behalf of banks and mortgage lenders. Lender Processing Services, which was spun off from Fidelity National two years ago, did not return calls seeking comment Tuesday. The company disclosed in its annual report in February that federal prosecutors were reviewing the business processes of Docx. The company said it was cooperating with the investigators.
”g. “This is systemic,” said April Charney, a senior staff attorney at Jacksonville Area Legal Aid and a member of the Florida Supreme Court’s foreclosure task force. “Banks can’t show ownership for many of these securitized loans,” Charney continued. “I call them empty-sack trusts, because in the rush to securitize, the originating lender failed to check the paper trial and now they can’t collect.”
”h. In Florida, Georgia, Maryland, and other states where the foreclosure process must be handled through the courts, hundreds of borrowers have challenged lenders’ rights to take their homes. Some judges have invalidated mortgages, giving properties back to borrowers while lenders appeal. In February, the Florida state Supreme Court set a new standard stipulating that before foreclosing, a lender had to verify it had all the proper documents. Lenders that cannot produce such papers can be fined for perjury, the court said.
”i. Kowalski said the bigger problem is that mortgage servicers are working “in a vacuum,” handing out foreclosure assignments to third-party firms such as LPS and Fidelity. “There’s no meeting to get everybody together and make sure they have their ducks in a row to comply with these very basic rules that banks set up many years ago,” Kowalski said. “The disconnect occurs not just between units within the banks, but among the servicers, their bank clients and the lawyers.”
”10. I have been investigating, reporting on, and testifying against the fraudulent and abusive practices, of LPS and its prior gestations and incarnations from Fidelity National Financial and All-Tel.
”11. I have reviewed thousands of pages of manuals, documents, marketing materials, website info, pleadings, and information regarding LPS, Fidelity National Financial and various subsidiaries and affiliates related to these companies, including Sedgwick CMS.
”12. In many thousands of instances, I can testify to the fact that these companies engage in the wide-scale practice of spoliation and fabrication of evidence in state and federal court cases across the nation.
”13. In my opinion, nothing any of these companies place onto a document, assignment, affidavit, filing with a court, or pleading can be relied upon by any party or court without a complete forensic audit verifying and validating not only each fact or information stated on the documents, but the lawful signature and authorities of “each” person placing their “mark” or signature upon each document, including the notary itself on notarized documents.
14. I have personally witnessed many thousands of intentional and fraudulent misrepresentations made by LPS, Fidelity, law firms in their network, and their clients. I have also seen them change records, redact and alter records, and destroy evidence and records to conceal and cover-up the frauds and abuses of their companies, employees, lawyers, and clients. To validate my point and conclusions I offer the following facts below…
“15. LPS is now under a federal criminal investigation by the U.S. attorney’s office for the middle district of Florida for alleged false, fraudulent, and forged assignments of mortgages, deeds of trusts, and deeds to secure debt used by the “foreclosure mill” law firms3and their servicer clients in an attempt to establish standing and authority to foreclose and recreate chains-of-titles to mortgages and promissory notes that have been intentionally and admittedly lost and/or destroyed to conceal the fact that the real and lawful owner of such promissory notes.
“16. In the matter of the Law Office Of David J. Stern, P.A. v. Security National Servicing Corp. (Case No.: SC06-361 and 4th DCA Case No.: 4D04-776), the Florida Supreme Court was asked by the Stern Law Firm to resolve issues regarding its liability for malpractice by a conflicting confluence of interests in the transfer and ownership of a promissory note and mortgage deemed worthless.
Ken here. There you have it. This is our first blog on the subject, and several more to follow. This goes in the “must read” section. In order to remedy your own situation you must understand what happened.
Information leading to Knowledge is Power — to Protect Your Family.
Again we reference Nye’ entire report, which is 88 pages. Here, we are breaking out small chunks for each post. Those not familiar with these issues will find these small excerpts more palatable. Take in the data slowly — and breath baby breath. Particularly as you begin to discover the depth of the fraud perpetrated on your family.
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