Archive for the ‘Robosigning’ Category

Robo-Motions: The New Robosigning Scandal

Thursday, August 16th, 2012

Robot Hand Recently, Jacquelyn Trask, one of my associate attorneys, won a motion to dismiss with the court reserving determination of our right to receive attorneys’ fees on a case that highlights a growing problem, the filing of “robo-motions.”

The unusual facts of the case demonstrate how dangerous robo-motions are: potentially much more dangerous than the heights scaled by the robo-signing scandal.
She won the motion to dismiss because the bank’s attorney filed a motion to reschedule a foreclosure sale and have an ex parte order entered.
What are ex parte orders, you ask?
Simply put, ex parte orders are an unusual exception to a fundamental rule upon which our legal system is based: notice.

Usually, whenever one side in a case files a motion or requests an order from a judge, the other side has to be notified before the judge rules on the motion so that both sides can present their arguments.

That way, everyone gets a fair hearing.

Seems pretty obvious right?

The General Rules of Ethics even goes so far as to say ex parte motions should be avoided at all costs, and should only be used when giving notice to the other side will seriously harm your client. The foreclosure mill attorney turned the rule sideways.

Why?

Because the judge in the case had previously entered a court order forbidding the foreclosure sale from taking place.


The bank was able to reschedule the foreclosure sale because its attorney filed an ex parte motion with a different judge
who knew nothing of the order. The attorney didn’t communicate with our firm, or as it turned out with the right judge as well, because it would harm the case, not because it would harm the client.
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Foreclosure Review: Just Another Government Program You Can’t Count On

Tuesday, June 26th, 2012
Fairy Tales

Don’t expect the government to come in and ‘save’ your house from foreclosure!

I’m not one for fairy tales, for shining white knights, and magical rescues.

I’m not cynical, but I am a realist. When it comes to fixing the housing market, and righting the wrongs of the fraud-closure crisis, there is no magic wand.

If you’re waiting for the government ‘cavalry’ to ride in and make everything alright, I’m sad to say you’ll be waiting a long time.

Time and time again homeowners have looked to government programs for justice, but with a decidedly mixed bag of results.

Maybe that is why I was not all that surprised at some of the glaring omissions that I found with the Independent Foreclosure Review program.

It has not received the same amount of press as the servicing settlement that the attorneys general agreed to, but this Independent Foreclosure Review is also supposed to rectify the ‘errors’ committed by servicers, if you were in foreclosure between 2009 and 2010.

Any homeowner is eligible to apply for the review process, which bank regulators have promised will be free from the banks’ grips, despite the fact that the banks are PAYING the consultants who are performing the reviews.

That’s Strike One.

And of course the regulators, not the banks, are still referring to fraud as an ‘error.” Yet another undersell of the banks’ illegal activities. Strike Two.

Oh and there is no appeal process if the consultants rule against you. Strike Three.

Last week the Officer of the Comptroller of the Currency and the Federal Reserve, the two agencies behind this program, announced an extension for homeowners who want to file for one of these so-called independent reviews, and for the first time laid out the specifics of the ‘errors’ done by the banks and penalties and what type of ‘errors’ these penalties would cover.
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JP Morgan Chase CEO Offers Poor Explanation for Robosigning

Thursday, April 5th, 2012

Excuse me Jamie. Mr. Dimon, hello?

Do you really still think we’re fools?

How else can you explain your half-hearted apology over JP Morgan’s part in the robosigning scandal?

The CEO of JP Morgan Chase made some efforts towards reconciliation in his annual letter to shareholders, which is now out for all to see.

But it’s clear that Jamie Dimon is still delusional and suffers a full blown case of pass-the-buck disease, for which, apparently, there is no cure.

In the section titled “The Mortgage Business — The Good, The Bad and The Ugly” (He should have just left out the first two) Dimon admits to JP Morgan Chase’s shareholders that his companies ‘servicing operations left a lot to be desired’

He adds his company ‘made too many mistakes’ and that the it was ‘not our finest hour’.

What’s sarcasm!

Let’s be honest, it was your worst hour and your lasting legacy.

Here’s the problem Mr. Dimon. You didn’t just make a mistake. If I forget to buy milk on the way home, that’s a mistake. Your company, your officers and your top executives all suborned fraud forgery and perjury, all federal crimes.

Robosigning was more that just, as you put it, ‘paperwork errors’.

Everyone from the tippy-top of your company on down, encouraged this kind of illegal activity to happen, in fact it became part of the operating procedures of your company! You just farmed it out.

Why not just own up to the homeowners, the taxpayers and your shareholders. You’ve been caught with your hand in the cookie jar, I can still see the bruise.
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Politics of Foreclosure? The Wall Street Journal Needs a Reminder

Wednesday, March 21st, 2012

Over a year ago I felt compelled to call out The Wall Street Journal after a particular column really got under my skin.

It’s time to call them out once more. Not for another column, but rather, a lack of one.

In October 2010 their column “The Politics of Foreclosure” made light of the plight many of my clients have undergone, and shrunk the foreclosure crisis down to a mere inconvenience for a few Washington insiders.

You and I, of course, know different.

And as the crisis grew wider and wider, and the expansiveness of the banks fraud became even more apparent, The Wall Street Journal’s Editorial Board continued to be a haven for outdated ideas, protection of the status quo and disgust for anyone trying to do good by the American homeowner.

When the AG settlement was first announced back in February, the Wall Street Journal called it a ‘bank job’ worthy of the Barker gang.

I found it disturbingly amusing that a settlement that was basically little more than a public spanking for the banks angered them so. The settlement didn’t land a single banking executive in jail, yet the columnists at The Wall Street Journal still treat the banks as the victims in the housing crisis.

The crisis, you know that the banks basically created.

The Wall Street Journal editorial board still believes the banks didn’t illegally foreclose on a single homeowner, something I personally know not to be true.

Either their editorial board is remarkably stupid or just ignorant.

And so I shouldn’t be all that surprised that they have been silent after the Department of Housing and Urban Development released audits that laid out how pervasive the culture of fraud was amongst our nation’s lenders.
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