Lawyers – Page 2 – Querin Law, LLC | Phil Querin

TO: All Lawyers, Paralegals and Secretaries

FROM: Personnel Dept.

SUBJECT: Upcoming Holiday Party

We know it’s been a hard year for all of you. Many of our secretaries have developed Carpal Tunnel Syndrome due to the long hours of repetitive robo-signing.

Our paralegals have had to do double-duty, working for one or more attorneys and returning phone calls to unrepresented defendants frantically trying to find out if we’re going to go after them for a deficiency judgment. [We regret that the Firm’s decision to have every lawyer’s phone line permanently set for “DND” has forced this task upon you, but we don’t want our lawyers speaking with the very people they’ve sued in foreclosure – we just can’t afford to lift that veil of anonymity. It’s the same reason executioners wear hoods. We knew you’d understand.]

And our attorneys haven’t had it so easy this year, either. While they are well compensated for their work, they have to go home to their families every night and answer the same question: ‘So, honey, how many families did you foreclose on today?’

So we understand the need to unwind from time to time. It seems like many of you are looking for almost any excuse today to have a party! That’s why, here at Holmes Knott Furr Long, LLC, we take your need for mindless diversion seriously. Accordingly, we have created the following valuable tips on conducting yourselves at our upcoming Holiday Office Party.

Check your conscience at the door. We don’t want the combination of alcohol and that uniquely human trait known as “guilt,” to ruin everybody else’s fun.
If you’re going to “talk shop” trying to top each other’s stories of your latest foreclosure exploits, don’t name names. Every once in a while, we learn that one of our attorneys has foreclosed a secretary’s parent or other family member. This can have an immediate dampening effect, and distracts from the humor of the story.
If you feel the need to impress your spouse or S.O. by taking them out on a “Tour of Homes” that you’ve recently foreclosed, please use a designated driver if you’ve had anything to drink. And for goodness sake, don’t do what [name redacted] did last year. He had far too much Devils Spring Vodka, and started yelling “Serves Ya Right!” in front of the homes.
And lastly, along with your conscience, please check your cameras and smartphones at the front desk. As you may know, the New York Times ran the following picture taken at a foreclosure mill’s Halloween Party…and that was the end of the firm:

It seems their employees’ love of work spilled over to the evening’s festivities, and some decided to dress up as homeless people who had recently been foreclosed. For more on the story, go to this link.

After several years of toil as a low paid toady for a high-powered foreclosure mill law firm, our intrepid young associate has finally won a case! [Note to the easily convinced: This post is pure satire. The case is real, the ruling is real, MERS is real, but the characters and law firm in the post are purely fictional. If the husband and wife sound like friends of yours, the resemblance is purely coincidental. And why are you hanging around with them, anyway? – PCQ]

Her: “Honey, is that you? I didn’t hear you come in. Usually the door slams, you stomp in, and are cursing under your breath.”

Him: “Come on now, I’m not that bad. Let’s go out to dinner and celebrate!”

Her: “Celebrate what? Did the Firm finally make you a partner? Does this mean you’ll get to boss the newbie associates around, like the partners did to you? Maybe you’ll start making some real money so I can afford to shop at Nordstrom’s instead of Filene’s Basement.” Continue reading “A Good Day At The Foreclosure Mill”

“Oh what a tangled web we weave,
When first we practice to deceive!”

Sir Walter Scott, Marmion, Canto vi. Stanza 17.
Scottish author & novelist (1771 – 1832)

There are two new interesting developments on the foreclosure front in Oregon. But first, here’s a recap of where we’ve been and where we are now:

Background.

The Big Banks tried and failed to conduct illegal non-judicial foreclosures in Oregon. As pointed out in several earlier posts, here, here, and here, they have been routinely ignoring the mandatory recording requirement of ORS 86.735(1).
They got their wrists slapped by Federal Judges, Panner, Alley, and others.
They realized that even when they completed an illegal foreclosure, they likely couldn’t get title and couldn’t evict the homeowner.
As discussed here and here, their lobbyists went to the Oregon legislature, and tried to convince the politicians that real estate commerce would come to a halt, if they weren’t permitted to continue violating the law. [Note to Big Banks: Commerce did come to a halt, but it was back in 2007+ after you’d gone on your securitization binge, lent money to borrowers you knew couldn’t qualify [or didn’t care if they couldn’t], immediately got paid by selling liar loans as securities to pension funds and others who relied upon the agencies you paid for bogus investment grade ratings, and then went through four years of “extend and pretend” modifications that accomplished absolutely nothing to resolve the foreclosure crisis. – PCQ]
The Big Banks next threatened that if they weren’t permitted to violate Oregon’s non-judicial foreclosure law any more, then By Golly, they would just start suing their delinquent borrowers in court, since the mandatory recording requirement only applied to non-judicial foreclosures. Continue reading “Oregon Foreclosures – What Are The Big Banks Up to Now!?”

In a recent post on mortgage insurance (“MI”), I addressed what I saw as a problem, but didn’t yet fully understand the depth of it, so just issued a cautionary warning to Realtors® and sellers that they should find out, in advance, if MI was obtained on the underlying loan. The reason for this warning was due to reports I was receiving that MI companies were requiring the payment of money or a promissory note from sellers, in order to give consent to a short sale. Why consent was even necessary from the MI company has mystified me.

After reading some MI master policies for these carriers, and doing a little research on the Web, together with a well-placed threat to one MI carrier, I think I’m getting closer to understanding what’s going on. Here’s a summary of what I know so far: Continue reading “Short Sale Trap: Mortgage Insurance [Part Two]”

Arthur M. Schack is a no-nonsense New York judge. Especially when it comes to foreclosure mill attorneys (FMAs) who don’t take him seriously. Here is a recent example:

HSBC Bank USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2007-2, Plaintiff, Index No. 9320/09 vs. Ellen N. Taher, et. al., Defendants. (July 1, 2011) The facts of this particular foreclosure case do not need to be summarized in detail. They are all too familiar.

However, by way of background, as we know, the New York courts, like Florida – both judicial foreclosure states – have been inundated with foreclosure filings. But following the robo-signing scandals, including false signatures, false notarizations, and false designations of official capacity that have been detailed throughout the country, the New York courts instituted a rule requiring that FMAs submit a written affirmation certifying that they had taken reasonable steps – including inquiry to their banking and servicing clients – to verify the accuracy of documents filed in support of their residential foreclosures. [See, New York Rules of Professional Conduct (22 NYCRR Part 1200) and 22 NYCRR Part 130.] Oregon has no such certification requirement specifically for foreclosure cases, but it should.

Here are a few factual snippets from the case that so irritated Justice Schack: Continue reading “The Lender Lawyers’ Nightmare – Schack Attack!”

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”

“While I recognize that plaintiffs have failed to make any payments on the note since September 2009, that failure does not permit defendants to violate Oregon law regulating non-judicial foreclosure. The Oregon Trust Deed Act “represents a well-coordinated statutory scheme to protect grantors from the unauthorized foreclosure and wrongful sale of property, while at the same time providing creditors with a quick and efficient remedy against a defaulting grantor.” Staffordshire Investments, Inc. v. Cal-Western Reconveyance Corp., 209 Or.App. 528, 542, 149 P.3d 150, 157 (2006). In part due to the legislature’s desire ” to protect the grantor against the unauthorized loss of its property,” a party conducting a non-judicial foreclosure must demonstrate strict compliance with the Act. Id. As demonstrated above, the MIN Summary demonstrates the defendants failed to comply with the Oregon Trust Deed Act.” – Honorable Owen M. Panner, Memorandum Order, Ivan Hooker and Katherine Hooker, Plaintiffs v. Northwest Trustee Services, Inc., Bank of America, N.A., Mortgage Electronic Registration System, Inc., Defendants.

It seems things have been ominously quiet since U.S. Bankruptcy Judge Alley’s holding in McCoy. Well, no more. On May 25, 2011, the Honorable Owen M. Panner, U.S. District Court, came to the same conclusion as Judge Alley:

“I agree with Judge Alley that “Oregon law permits foreclosure without the benefit of a judicial proceeding only when interest of the beneficiary is clearly documented in a public record.” In re McCoy, 2011 WL 477820, at *4.”

In the Hooker case, the plaintiff borrowers, sought a judicial declaration – known as a “declaratory judgment” – that Bank of America’s nonjudicial trust deed foreclosure was wrongful, since the bank had failed to record on the Jackson County public records, all successive assignments of the trust deed sought to be foreclosed.

As I have posted on multiple occasions [here, here, here, here, and here], ORS 86.735(1) is pretty clear. It reads in relevant part as follows:

“The trustee may foreclose a trust deed by advertisement and sale in the manner provided in ORS 86.740 (Notice of sale to be given to certain persons) to 86.755 (Sale of property) if: (1) The trust deed, any assignments of the trust deed by the trustee or the beneficiary and any appointment of a successor trustee are recorded in the mortgage records in the counties in which the property described in the deed is situated….”

So what would prompt the banks to think that this statute, written long before MERS existed, didn’t mean what it said? Why would they think MERS, that great electronic registry in the sky, would be an adequate and legal substitute for recording on the public record? Since the lenders and their attorneys aren’t confiding in me, I will submit my own theory: First, I suspect back in the early 90’s, when MERS was just a doodle on the back of a bar napkin, it seemed like a good idea. It permitted the Big Banks to pass around their trust deeds like a bottle of bourbon at a frat party. There was no public accountability – just a members-only “registry”, where, in theory, participants would “electronically register” the transfer of their mortgages and trust deeds. In this way, Big Banks could securitize their loans faster, rather than complying with those time consuming and pesky state recording laws. But wait! There’s more! As an added bonus, lenders would save millions of dollars in recording fees! The opportunity seemed too good to pass up – back then. Continue reading “Another MERS Slapdown! The Hooker Case Analyzed”

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]

____________________________________________________

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….”

“The effective use of the DSA’s [Default Services Agreements] between LPS Default and the national mortgage servicers resulted in LPS Default having under its control and concurrent access, the vast majority of the multibillion dollar default services fee market in the entire country. This effectively put LPS Default in the position of Mephistopheles to its “Network [Law] Firms” role of Faust.” –

[Class Action Complaint: Marie Harris, A/K/A Susan Marie Rhodes, Debtor, Plaintiff, vs. Ben-Ezra & Katz P.A., Lender Processing Services, Inc., LPS Default Solutions, Inc., Defendants. In The United States Bankruptcy Court for the Northern District of Florida, Pensacola Division, Bankruptcy Case No. 08-30376 LMK.]

It can’t be helped. Ever since I began digging into the foreclosure mess, and the more I have viewed the lender-lawyer relationships, I feel that some of my brethren have made a pact with the devil, in much the same way Faust did with Mephistopheles. The metaphor is inescapable. Many lawyers and law firms across the country have joined forces with Big Banks and Big Servicers, to cash in on the foreclosure crisis. And what is slightly remarkable is that they continue to do so, even though they have read the scathing court opinions, lambasting these industries and their attorneys, for fraudulent practices.

An interesting fact is that those foreclosure mill firms that have crossed over to the Dark Side, are not your big, long time, and reputable law firms with flourishing creditor practices. However, one must suspect that LPS and other default servicing companies, may have approached them at one time. I suspect one of their in-house “Quality Assurance” partners took a look, said “Thanks but no thanks” and slammed the door. So what explains why some small, rather nondescript, law firms, now have suddenly acquired high volume foreclosure and bankruptcy practices? For one possible answer, read on. Continue reading “In Re: Harris Analyzed – LPS And Its Pact With Foreclosure Mill Attorneys”