Shocking and pervasive mortgage doc fraud

www.cbsnews.com...

You gotta watch this. Ignore the stupid lipitor ads.

60 Minutes does an outstanding story on the mortgage doc mess, doc processing mills such as 'Docx' where people are paid $10 an hour to sign 350 docs an hour, 4,000 docs a day posing as Bank VPs so banks can prove ownership of homes they're foreclosing on with fake ownership docs. Some of the people posing as bank VPs were high school students. These docs were entered into court evidence as proof that the bank did own the property they were foreclosing on.

The next housing shock
April 3, 2011 5:00 PM

As more and more Americans face mortgage foreclosure, banks' crucial ownership documents for the properties are often unclear and are sometimes even bogus, a condition that's causing lawsuits and hampering an already weak housing market. Scott Pelley reports.

The text story can be found here: www.cbsnews.com...

...the banks whose paperwork was handled by the Docx forgery mill include Wells Fargo, HSBC, Deutsche Bank, Citibank, U.S. Bank and Bank of America.
...
Docx was owned by a company called LPS, a $2 billion firm that calls itself the nation's leading provider of mortgage processing services. LPS told us that when it found out about the phony signatures in 2009, it shut Docx down. The FBI and several states are investigating.
...
"It's astonishing to me that this had become as pervasive as a problem that it is," Sheila Bair, the chairman of the Federal Deposit Insurance Corporation (FDIC) told Pelley.
...
"I am very worried about if this starts getting out of hand the kind of impact it will have," Bair said.

"These are lawsuits by homeowners who are being foreclosed upon," Pelley remarked.

"Or have, are in the process, or have already been foreclosed on," she said.
...
"I think this litigation could easily get out of control. And we would like to get ahead of it. We're already feeling like we're falling behind it," Bair said.

Chairman Bair thinks rotten mortgage documents are so threatening to the economy that the government should force banks to pay into a massive fund.
...

More at link...

I was very, very disappointed in the foreclosure fraud segment. They devoted an entire 15 minutes to the biggest intentional fraud this country has ever seen. This is a continuous, ongoing problem - millions and millions of people have lost their homes to these criminals - and CBS barely scratched the surface. Yeah, there's a lot of document forgery going on, but lets talk about the REAL problems - the gambling the banks are doing with YOUR money and YOUR livelihood and YOUR homes with their credit default swaps and fancy financial Wall Street buggery.

In fact, I'm planning on writing an email to CBS slamming them for the astoundingly pathetic reporting on this issue.

reply to post by dbriefed


Hmmm I doubt the documents ever existed - after all the banks were trading credit they create out of thin air for these houses.

reply to post by byteshertz


Doesn't matter if they create the money out of nothing, that's reserve banking and technically it wasn't money but the "ability to have the money should the need arise" The documents exist, they all exist .. the question for the banks is "where are the documents" .. There seems to be a massive black-hole of paperwork that literally had to exist at some point and has vanished now. Due to the insane selling of mortgages as securities, chances are some of those docs are lost forever. And technically if they are and the bank forged new ones, that should void the contract, at least with the current owner.

This is bigger than the "foreclosure" document fraud.

It saddens me that most people don't understand why these documents have been lost.

It started with the loan documents.

There was so much fraud in the "loan documents" that they have shredded these documents to cover up the massive fraud in lending.

WHY THE RUSH TO FORECLOSE?

To cover up the fraud in the loan docs.

Now we have massive fraud in the foreclosure docs. This doesn't surprise me one bit.

If you want to know the real story READ MY THREAD IN MY SIGNATURE!

The banks have suffered NO LOSS in falling home values! The don't own the mortgages anymore. They sold them into investements YOUR PENSIONS!

WHERE IS THE BAILOUT MONEY? WHAT DID THEY DO WITH IT?


We need a NATIONAL foreclosure moratorium until this mess is fixed and not ONE more person should lose there home due to BANK FRAUD!
OBAMA - ARE YOU LISTENING?

Julie Washington - Just went to the link in your sig line. OMG...it's so nice to see some people actually GET the complexity of this massive INTENTIONAL fraud, brought about INTENTIONALLY by the banks with the help of our "government."

I copied the following from JR MacBeth from your thread, as it bears repeating:

Great info here. Thought I would add to the poor homeowner's nightmares by alerting them to the fact that this is really just the nightmare, before the nightmare. Predatory lenders, in partnership with our miserable government, have conspired to really slam it "home" with the supposed mortgage "modification" programs.

As millions find themselves on their knees, our masters are now ready to swoop in for the kill, all the while, fooling us into thinking they are about to give us a hand.

Are you in the "Making Home Affordable" program, HAMP funds galore, your "bank" seemingly ready to let you live in your home, now that you have been "approved"?? You have been duped. It's all part of the whole big fraud, a "long-con", involving everyone, right up to the President, who dares to go before the cameras, and pretend there is help for Americans caught up in the mess.

The fact is, Obama is a mere spokesman for his masters, and he has done a fabulous job of fooling the majority. Many imagine that their government is going to help them, thanks to his oh-so "sincere" BS. In fact, they are helping the banks seal our doom.

Look into it. People are NOT being given modifications, in spite of qualifying for them, because "people" qualifying was never the issue to begin with. It was their LOAN that was what "qualified" them. 95% of people who imagine they are going to get a modification are going to get foreclosed on instead. Hundreds of thousands have been jerked around, meekly making their "trial payments" (supposedly three payments), but the nightmare has turned into 6 months, 12 months, 16 months.

And then! BAM! They get the news, they're being foreclosed on, after they made every payment, in good faith, while all along the bank went about locating their previously lost Notes. Meanwhile, if the people actually read the document they had to sign in order to enter the Making Home Affordable Program, they would have found that the whole reason for the program had to do with nullifying the MERS problem the bank had.

Bait, and switch. And "our government" right in the middle, lending credibility to the mega-scam!! A bigger scam, to fix the big scam. It seemingly never ends!

This is about to get very ugly. I seldom say things like this, but when the full extent of this mess becomes known, there will be no other solution but "revolution". The existing radically corrupt government must be replaced.

P.S. Excellent thread, btw!