As we move into the New Year, our friends in the banking, servicing, and title industries have hastily convened a conference call to deal with the latest MERS setback in court.  It seems that when Fannie Mae sought permission to evict some folks from the home it had recently foreclosed, the local Jackson County Circuit Court Judge said “Fannie May Not.”  As usual, Belial Bank’s devilish President and CEO, B.L. Zebub, moderates.  He is joined by his trusted cronies to consider what to make of this decision coming out of sleepy Southern Oregon.  In attendance with  B.L. is his honest but naïve legal intern, Les Guile, who, of late, has developed a tendency to speak more freely.  Could it be that a conscience stirs within this young novitiate, and that he is tiring of the Machiavellian personalities on these calls?  Also in attendance is title industry hand-wringer Liz Pendens and her nemesis, Dee Faulting, of the default servicing industry.  Damian Faust, Belial’s lead counsel and hatchet man is present, as is the Bank’s chief schemer and PR man, Kenneth Y. Slick III (aka “KY”).  B.L.’s loyal secretary, Lucy Furr, has dutifully transcribed this conversation, although she apparently forgot to “scrub” it, as instructed by B.L.   As before,  I am unable to disclose the source of this purloined post. – PCQ

B.L. Zebub: “I just read the decision in Federal National Mortgage Association vs. Goodrich. Well, the timing couldn’t be more prophetic; December 7, 2011 and we find out we just got bombed in court.  Folks, I want to know what happened here!   This was a little garden variety eviction.  It can’t get much simpler than that.  All the bank has to prove is their superior right of possession.  We have our high-powered bank attorney flown all the way down to……..where is it “Jackson County” Orygon?  Where the hell is that?  Quick, someone, see if you can locate it on an AAA Trip Tik!  I doubt it.  Do they even have an airport there?  Did we have to pay to have our attorneys chauffeured to court again?!  That’s the problem – all those backwater bleeding heart liberal judges feeling sorry for the little guy!  I had a bad feeling about this case the minute I found out it wasn’t going to be tried in Portland.  It seems the farther away from the city you get, the more risk there is that some wild-eyed lib is gonna take issue with MERS.  Remember what happened in the Flynn case?  Where was that, Columbia County – wherever that is?  Damien, enlighten us. What went wrong?  I assume our lawyers take off their Rolex watches and Tiffany jewelry before they go to court.  We don’t want these hayseeds thinking that we actually make a pretty good living foreclosing Oregonians out of their homes.” Continue reading “Belial Bank Conference Call Discussing The Goodrich Decision & MERS”

As we approach 2012, our friends in the banking, servicing, and title industries are on their last conference call of the year; this time discussing how to put a better face on the banking industry.  Belial Bank’s President and CEO, B.L. Zebub, moderates. He has convened his trusted cronies to consider various schemes to cast the Big Banks in a better light for 2012.  In attendance are B.L., his honest but naïve legal intern, Les Guile; title industry hand-wringer Liz Pendens; and her nemesis, Dee “Take No Prisoners” Faulting, of the default servicing industry; Damian Faust, Belial’s lead counsel and hatchet man is present, as is the Bank’s chief schemer and PR man, Kenneth Y. Slick III (aka “KY”).  B.L.’s loyal secretary, Lucy Furr, has dutifully transcribed this conversation. As in the past, I am legally prohibited from revealing the source of this purloined post. – PCQ

B.L. Zebub: “OK, do we have everyone on the line?”

Lucy Furr: “B.L., I think everyone is on the line.” B.L. Zebub: “Good.  Well everyone, we’re rounding the corner into a new year, so I thought it appropriate to have an open discussion on what goals we ought to set for 2012.  I have some thoughts of my own, but would like to hear from the rest of you first.” Continue reading “Belial Bank’s Conference Call Re: New Year’s Resolutions”

Hypocrisy: [c.1200, ipocrisie, from O.Fr. ypocrisie, from L.L. hypocrisis, from Gk. hypokrisis “acting on the stage, pretense,” from hypokrinesthai “play a part, pretend….” Online Etymology Dictionary]

Example: When banks lend money today, they demand absolute transparency of their borrowers. Every “T” must be crossed and “I” dotted.  Signatures, income, credit, employment, all must be verified and re-verified to the nth degree. But when banks foreclose their borrowers today, they throw transparency to the wind. Everything becomes opaque. The banks move into the shadows, transferring obligations behind the scenes, employing lackeys to sign their most important foreclosure documents, and using servicers to do their dirty work, all the while whispering “We Care” to beleaguered homeowners, when that is the farthest thing from their mind. – PCQ

Background. On July 23, 2004, Mr. and Mrs. Sharpe borrowed $194,750.00 from their lender, Washington Mutual Bank (“WaMu”).  They signed a Promissory Note and Trust Deed.  Here’s what these documents said:

  • The Note informed them that their lender could transfer it to a third party, which would entitle the new entity to receive the Sharpes’ payments;
  • The Trust Deed stated that the Note could be sold without prior notice to them;
  • The Trust Deed stated that the “Loan Servicer” [i.e. the entity to whom they were to make all Note payments – PCQ] could change;
  • The Servicing Disclosure Statement [a separate lender-created document – PCQ] informed them that WaMu was to initially act as servicer of their loan – but that could change in the future;

On September 16, 2004, WaMu sold the loan to Fannie Mae, although it [WaMu] retained all servicing rights.  This means that while Fannie Mae owned the Trust Deed and was the holder of the Note, WaMu acted as the collection agent and was thus earning servicing fees on the Sharpes’ loan even after they had sold it to Fannie Mae. Continue reading “Sharpe vs. Wells Fargo Home Mortgage – A Critical Analysis”

“The great thing about working at  ________________ Bank is that no one has to take personal responsibility for the institutionalized immorality of our industry.  We get up in the morning, go to work, and check our soul at the door. When we come home at night to our families, we can become human again, without feeling any regret for the havoc our foreclosures have wreaked on so many lives.  We’re the zombies in zombie banks.  It’s no wonder our industry has no code of ethics….” [Overheard at a local Portland watering hole from an obviously intoxicated bank employee in the foreclosure department, responding to the frequently asked question: “How do you live with yourself?”][1]

In my recent post here, I was critical of what appeared to be intentional document destruction by Freddie Mac.  This information was based upon an April 11, 2011 announcement that it sent to its sellers and servicers.  However, at the time, I was unclear of the reason for – and timing of – the document destruction.  Was there some explanation that would dispel the appearance of chicanery?  As Paul Harvey used to say, “Here’s the rest of the story.” Continue reading “Freddie’s Destruction Instruction Rule – The Epilogue”