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Jeff Nielson: More US Mortgage Fraud

23 Apr

Written by Jeff Nielson Sunday, 04 April 2010 11:24

Articles & Blogs US Commentary

In the world of fraud in which U.S. banksters operate, one of their greatest liabilities is the sheer quantity of those frauds. Performing any act countless times increases the likelihood of careless blunders. This was illustrated by a Wall Street Journal article on the latest revelations of their clumsy scamming.

Last October, I did a two-part series on the lynch-pin of U.S. mortgage-fraud: a “shadowy entity” known as MERS (“Mortgage Electronic Registry System”). This software platform supposedly “eliminates the need to prepare and record assignments, when trading [emphasis mine] residential and commercial loans”, according to the home page of this bankster abomination.

In other words, because Wall Street hatched this “registration” scheme, the banksters have been walking into foreclosure courts and asserting their right to foreclose on a property, millions of times, without needing to prove they actually hold title to the mortgages. This was a crucial ingredient of the entire multi-trillion dollar, leveraged Ponzi-scheme which Wall Street built atop the U.S. housing bubble (see “U.S. Bank-fraud SYSTEMIC and INTENTIONAL – William Black”).

After scamming the world for trillions of dollars with their toxic, “securitized” mortgage products, Wall Street’s plan was then to throw millions of Americans out of their homes (due to the unaffordable mortgages they had been conned into entering). The problem for Wall Street was these mortgages had been sliced-and-diced to such an extent that in many/most of these mortgages, the paper-trail of who actually held title to a particular mortgage got lost in Wall Street’s maze of fraud.

Thus, the banksters expected to be able to waltz into foreclosure courts, stick a one-line computer read-out under the judge’s nose which claimed that a particular bankster held title, and then make a few more Americans homeless. They expected that judges would rubber-stamp these foreclosure proceedings without the banksters providing any details on how a mortgage moved from the hands of the originator of the mortgage into the hands of the bankster claiming title.

In their arrogance, Wall Street actually believed that they could simply assert that their own, private data-base was an infallible “system” of tracking title, and thus they didn’t need to engage in the dreary task of “proof” which is required of all lesser mortals in our court systems. To their shock, some of these judges refused to be just one more “rubber-stamp” for Wall Street fraud.

Many examples exist of proceedings where judges have thrown-out all “evidence” of title submitted to them by the bankers, and allowed a defaulting homeowner to walk away with clear title to their property. The ultimate nightmare for the banksters is that some judge will bang down his gavel and simply rule that the entire MERS “registry” system is a worthless sham. In such a scenario, millions of Americans could escape their foreclosure-nightmares with their lives (and homes) intact, while it would be the banksters who were left to wallow in their own losses.

As a result, every time one of these decisions goes against the banksters, their behavior is identical: never comment on the proceeding, and never appeal. It is unlikely that any judge below the appellant level would expand the scope of his ruling to include the entire U.S. mortgage market – since trial judges are generally expected to restrict their rulings to the individual facts of a particular case.

While MERS is the sleazy tool of the banksters in their efforts to successfully execute the final stage of their decade-long scheme, a company called Lender Processing Services Inc. (“LPS”) is the primary operator of that tool. On Saturday, the Journal released an article revealing that LPS is now facing a criminal investigation.

Two anecdotes were cited in the article. In the first, an American homeowner was awarded clear title to her home in a foreclosure proceeding, after a judge ruled that documents relating to the loan were “patently false or misleading”, in attempting to provide a basis for JP Morgan to seize the home. For its part, LPS pointed the finger squarely at JP Morgan – saying its “sole connection to the case is that our technology and services were utilized by JP Morgan Chase.”

For newer readers, this is Wall Street’s infamous “Seargeant Schultz” defense (“I know nothing….nothing!”), and one which is relied upon constantly by both U.S. regulators and the fraudulent, credit ratings agencies. Strangely, despite the fact that JP Morgan CEO, Jamie Dimon is constantly spewing his views on what “pillars of the community” are these bankers of Wall Street, JP Morgan had “no comment” about being directly fingered for mortgage fraud by a company which is one of its primary record-keepers.

However, I’m sure that readers will agree that the second anecdote in the Wall Street Journal article is of much greater interest. More specifically, it is a subsidiary of LPS which is most directly connected to this serial, mortgage-fraud: Docx Llc. In another foreclosure proceeding involving Docx, it had listed the “owner” of a particular mortgage as “Bogus Assignee”.

It was at this point that the Docx spokesman made the mistake of trying to lie her way out of this embarrassing revelation, rather than simply remaining silent. Michelle Kersch claimed that the word “bogus” was merely a designation, not a description. In other words, what we are supposed to believe is that some LPS clerk was filling out some paper-work, but was missing a name. So instead of writing-in “unknown assignee” that this clerk chose to use the word “bogus”, instead – purely on a whim, and apparently without the slightest idea that some people might get the “wrong idea” about the use of the word “bogus”.

To those of us with slightly more suspicious minds, it would seem that the phrase “bogus assignee” was chosen much more deliberately. At this point, the real story is what comes next. We now have a criminal investigation into the very heart of Wall Street mortgage-fraud, where the banksters’ own documents use the phrase “bogus assignee” apparently as a generic description, as part of the banksters’ fraudulent, paper-trail.

Should this criminal investigation simply ‘evaporate’ into the U.S.’s corrupt and politicized judicial system, despite the presence of an extremely obvious “smoking gun”, this would be a signal that U.S. authorities are engaged in only a cover-up, not an “investigation”. On the other hand, if U.S. officials are engaged in a bona fide investigation of this obvious banker-fraud, then even if criminal charges do not occur, at the least there should be enough of an evidentiary basis to legally obliterate the entire, MERS registry system – and to permanently put LPS out of business.

“Stay tuned” for further developments.

 
 

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