Belial Bank – Page 2 – Querin Law, LLC | Phil Querin

On April 13, 2010, the Office of Comptroller of the Currency (OCC), together with the Board of Governors of the Federal Reserve Board (FRB), and the Office of Thrift Supervision (OTS) announced that it had commenced enforcement actions against 14 large residential mortgage servicers and two third-party vendors for improper practices arising out of their mortgage servicing and foreclosure processing during the years 2009 and 2010.

As a result of the investigation, consent orders were entered into by the 14 servicers and vendors. Independent consultants have now been charged with evaluating whether borrowers suffered financial injury due to these improper practices. The consultants are empowered to evaluate whether and to what extent certain remedies would be available to the consumers who suffered injury. If appropriate, financial compensation may be ordered.

The 14 servicers and vendors are the following: America’s Servicing Company; Aurora Loan Services; Bank of America; Beneficial; Chase; Citibank; CitiFinancial; CitiMortgage; Countrywide; EMC; Everbank/Everhome; First Horizon; GMAC Mortgage; HFC; HSBC; IndyMac Mortgage Services; Metlife Bank; National City; PNC; Sovereign Bank; SunTrust Mortgage; U.S. Bank; Wachovia; Washington Mutual; Wells Fargo.

Most of us know of one or more folks who’ve had some pretty bad experiences with banks. If so, pass this information along to them. Here are two links for them to visit for more information: IndependentForeclosureReview.com and http://independentforeclosurereview.com/faq.aspx.

The deadline for aggrieved borrowers to request review is April 30, 2012.

PCQ Comment. Given the abysmal reputation that the Big Banks have for transparency, one has to question the efficacy of this latest effort at “Peace and Reconciliation.” The independent reviewers may be selected by the banks themselves – with the consent of the regulators. There is a suspicion that those selected will be the same companies with whom the banks already have a business relationship with other review and auditing functions. As reported in American Banker:

“Allowing the banks to choose their own judge, jury, and jailer presents almost untenable conflicts of interest. All of the consulting firms that were initially being considered to do the work serve the banks already. The banks, and their mortgage servicing operations, are existing or prospective clients.

PricewaterhouseCoopers, for example, is the auditor for Bank of America and JP Morgan Chase, two of the fourteen servicers under scrutiny. PwC’s retired Chairman, Sam DiPiazza, is an executive of, and on the board of, Citigroup, another bank with a servicer to be reviewed. Promontory Financial Group and Treliant Risk Advisors are professional services firms that serve the mortgage servicers directly on other consulting assignments.”

News of this event hit the Internet in June, 2011. If so, why is it only getting attention now? As we learned from Belial Bank’s Chief Lobbyist, Kenneth Y. Slick, or “KY” as he likes to be called:

K. Y. Slick: “Guile, you seem to forget, we’re “too big to fail.” We don’t have to show weakness to get our way. We’ve got friends in high places. The Office of the Comptroller of Currency is in our pocket. Hell, they’re run by one of our former lobbyists! So while they pretend to be angry at us, we plead with them to do anything they want, so long as they don’t throw us into the briar patch. Didn’t you read about our latest ruse? On June 30, the OCC posted a bulletin on the Internet, requiring all the big servicers to undergo an examination of their practices, from documentation to notarization. But the catch is that we get to do the examination ourselves! Yeh, ‘self assessment.’ And after our period of mandatory introspection, we’re supposed to report any deficiencies we see in our practices. Ooooh! Scary stuff! This reminds me of my sophomore high school lit class, when the teacher let us grade our own papers! So, in short Guile, we don’t need to go down the path of self-righteousness. We have might on our side, and from where I come from, ‘Might Makes Right.’'” [For a revealing look at the entire conference call, click here. – PCQ]

So, time will tell. There is intriguing speculation that some unemployed robosigners may now start applying to become “independent reviewers”. Seems like a perfect fit, since at least they will be able to recognize the signatures that they actually signed, and the ones they didn’t….

Have Big Banks Become Deer in the Headlights?

“…any assignments of the beneficial interest must be recorded in order for a non-judicial foreclosure to comply with the Oregon Trust Deed Act. The defendant [borrower] presented evidence in Exhibit 104 that by December 4, 2009, and apparently through December 11, 2010, Freddie Mac was the owner of the mortgage and therefore the holder of the beneficial interest in the property. No evidence that this transfer of the beneficial interest was ever recorded was presented by plaintiff [bank], so I am concluding that the recording never occurred.” Honorable Jenefer Stenzel Grant, Circuit Court Judge, Columbia County, Oregon. [Memorandum Opinion, June 23, 2011. Parentheticals mine. PCQ]

Once again, the best and brightest minds in the banking, servicing, and title industries are on yet another conference call, as they continue to hear the distant drumbeat of defeat. In addition, we are joined by Belial’s version of cub reporter Jimmy Olson, honest but naïve, legal intern, Les Guile. The title industry is represented by Liz Pendens, whose has had previous contentious exchanges with Dee Faulting, the feisty representative of the default servicing industry. Damian Faust, Belial’s lead counsel and hatchet man, and its chief schemer and PR man, Kenneth Y. Slick III (aka “K.Y.”) have joined the conversation, as well. Lucy Furr, B.L. Zebub’s loyal secretary, has dutifully transcribed the conversation, presumably scrubbing it for any admissions that might result in a perp walk like Lee Farkas. Regretfully, I cannot reveal how this purloined post has fallen into my hands. – PCQ

B.L. Zebub: “Well gang, it’s certainly been an eventful few months, hasn’t it? Visitors 10, Home Team, zip. I’ve hastily called this phone conference to see if we can’t figure out what’s happening to our industry, and how we can turn things around. I want solid contributions from each of you. No handwringing Liz, and no bickering, Dee. I’m tired of the blame game. Les, if you have a question or two, go ahead and ask. We want to make sure your internship is a memorable one. KY, let’s start with you – and by the way, I enjoyed that “confidential” interview you gave that ended up on the Internet, with not one single redaction. You sounded pretty full of yourself – what were you thinking when you let yourself be interviewed without first having that reporter take a TSA-style enhanced body search by our security team? That hidden tape recorder was your undoing.”

K.Y. Slick: “B.L., believe me, that will never happen again. That “reporter” was the most gorgeous gal I’ve ever seen. She was a perfect ‘10’. I took her at her word when she whispered that I was the most fascinating and mysterious banking exec she’d ever met. Of course, it didn’t help that we’d had a couple of shots of Devil’s Springs Vodka at Lucifer’s Lounge before the interview. Anyway, back to business. My take on this mess, B.L., is that we’re getting pilloried by the press. It seems that whenever there’s a win for the little guy, the press picks it up and splashes it across the front page; but when we are successful in kicking another family out of their home, no one seems to notice. I just don’t get it. My thought is that we should jump-start our PR machine; get them out into the street. Have them follow the U-Haul trailers around town to see if another family has lost their home to a successful foreclosure. Hang out at the courthouses and talk to some of the foreclosure mill attorneys. Find out which cases look promising, and then stand ready near the courtroom when the judge evicts the borrowers from their home. These are human interest stories too – just the other side of the mirror. The press is sure to pick them up. And remember, “Any ink is good ink.” Continue reading “Triage Time At Belial Bank – U.S. Bank vs. Flynn”

Regretfully, I cannot disclose how the following transcript fell into my hands. I have guaranteed the complete anonymity of my source, who participated in the surreptitious recording of a recent face-to-face interview with Kenneth Y. Slick, III, chief lobbyist and head of public relations for Belial Bank. Mr. Slick has been affiliated with Belial Bank ever since it was a small local Midwestern bank with three branches. Today, Belial Bank is the largest and most powerful bank in the country, as measured by hubris. Belial Bank has come to metaphorically represent all Big Banks, due to its aggressive foreclosure tactics – some would say “mean-spirited” – and its apparent inability to avoid controversy and litigation. Humility is not – according to Mr. Slick – a recognized banking term. What follows is a redacted transcript of Mr. Slick’s interview, which, due to the ground rules he demanded, was not to be recorded. You will find it revealing. [BTW, there is no Belial Bank. This post is pure satire…except where it’s true. You decide.]- PCQ

Xxxxxxxxx “Mr. Slick, it’s a real honor to….”

Slick: “Just call me ´KY` – all my friends do. I prefer monikers and first names Xxxxxxxxx.”

Xxxxxxxxx (Resuming) “All right, ´KY`. It’s a real honor to be able to speak with you. Your reputation for secrecy and avoiding the public limelight is renowned. So, I’m very pleased you agreed to take time out of your busy schedule to speak with me. To review the ground rules that you and Belial Bank have set, I understand that I’m entitled to ask any question on any topic, but I’m limited to taking only handwritten notes. I am not to record this conversation. I further understand that you and Belial Bank have absolute and final editing rights before anything goes to print.”

Slick: “That’s right Xxxxxxxxx. No recordings. I’ve put my foot in my mouth too many times years ago when I was less disciplined – sort of like Joe Biden today. I’ve come a long way since then, and if there’s one thing I’ve learned, recorded interviews provide less room for obfuscation and denial. They have a way of coming back to bite you. With that being said, be my guest – ask away.” Continue reading “Exclusive Interview with Belial Bank’s Chief Lobbyist and PR Man Ѱ”

sat·ire/ˈsaˌtī(ə)r/Noun – The use of humor, irony, exaggeration, or ridicule to expose and criticize people’s stupidity or vices, particularly in the context of contemporary politics and other topical issues. Wikipedia

[The following bit of satire is intended to be read immediately before or after my recent post regarding a class action lawsuit filed against Lender Processing Services and a foreclosure mill law firm, entitled, In Re: Harris. – Phil]

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Slam! Bang!

Her: “Honey, is that you?”

Him: “Yeh.”

Her: “What is it now? Is the Firm getting to you again? You must be glad it’s Friday.”

Him: “Which question do you want me to answer first?”

Her: “Honey, don’t take things out on me – I’m just concerned about you.”

Him: “I know. Sorry. I’ve just had it up to here with the Firm. Every day that goes by, I hear the drumbeat of press coverage about lender and servicer abuses, and fraud being perpetrated on the courts by the bank and servicer attorneys. I’m starting to become concerned for myself if the Firm should come under the spotlight.”

Her: “What do you mean, ‘under the spotlight’”?

Him: “Well, last week another firm – OK, OK, a ‘foreclosure mill’ – got named in a class action complaint. The lawsuit was what we call an “adversary proceeding” arising out of alleged fraudulent practices by Lender Processing Services and its law firm, in the Florida bankruptcy courts. So far, it’s just a claim – and anyone can sue anyone today – but the allegations are starting to hit home. I need a drink. Do we still have some of the Devil Springs® Vodka left from the bottle B.L. Zebub gave us for Christmas?”

Her: “Honey, that’s 160 Proof! You only had a couple of drinks after you opened it and you didn’t sober up until New Year’s Day. B.L. Zebub may be the Firm’s largest banking client, but his taste in beverages runs to the extreme. I think he’d be just as happy drinking from a can of paint thinner.”

Him: “Good! That way I’ll forget about this past week.”

Her: “Honey, this sounds serious. Tell me what’s going on.” Continue reading “Another Bad Day At The Foreclosure Mill….”