Eric Schneiderman files suit against nation's largest banks for foreclosure fraud

[ProSense]

Eric Schneiderman files suit against nation's largest banks for foreclosure fraud

by Joan McCarter

This announcement from New York Attorney General Eric Schneiderman indicates that there's still some hope that foreclosure fraud prosecutions could occur.

NEW YORK – Attorney General Eric T. Schneiderman today filed a lawsuit against several of the nation’s largest banks charging that the creation and use of a private national mortgage electronic registry system known as MERS has resulted in a wide range of deceptive and fraudulent foreclosure filings in New York state and federal courts, harming homeowners and undermining the integrity of the judicial foreclosure process. The lawsuit asserts that employees and agents of Bank of America, J.P. Morgan Chase, and Wells Fargo, acting as "MERS certifying officers," have repeatedly submitted court documents containing false and misleading information that made it appear that the foreclosing party had the authority to bring a case when in fact it may not have. The lawsuit names JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., as well as Virginia-based MERSCORP, Inc. and its subsidiary, Mortgage Electronic Registration Systems, Inc.

The lawsuit further asserts that the MERS System has effectively eliminated homeowners' and the public's ability to track property transfers through the traditional public records system. Instead, this information is now stored only in a private database – which is plagued with inaccuracies and errors – over which MERS and its financial institution members exercise sole control. Additional defendants include BAC Home Loans Servicing, LP, Chase Home Finance LLC, EMC Mortgage Corporation, and Wells Fargo Home Mortgage, Inc.

A couple of important things: this is an action in Schneiderman's capacity of AG for New York—it is completely separate from his task force work with the new commission created by President Obama. That group is limited to pre-housing bubble conduct, this is targeted at ongoing and current fraud. It's also another potential blow to the settlement negotiations between the states and the feds, and an indication that Schneiderman is no closer to an agreement there than he's ever been. That settlement would release the banks of liability in foreclosure fraud, and Schneiderman clearly doesn't want them off the hook

But most importantly, it specifically targets MERS as a creation of the banks "to allow financial institutions to evade local county recording fees, avoid the hassle and paperwork of publicly recording mortgage transfers, and facilitate the rapid sale and securitization of mortgages." It goes on, "MERS’ indiscriminate use of non-employee ‘certifying officers’ to execute vital legal documents has confused, misled, and deceived homeowners and the courts and made it difficult to ascertain whether a party actually has the right to foreclose."

- more -

http://www.dailykos.com/story/2012/02/03/1061447/-Eric-Schneiderman-files-suit-against-nations-largest-banks-for-foreclosurefraud-

It's getting interesting.

[bigtree]

1. but, but, but

why aren't they going after the big banks?

[sabrina 1]

4. NY's AG was the first to refuse the pressure on the US Attorneys to make a settlement

with the big banks. He resisted even when some of the tactics used were to try to smear him and has been an example to the others, now 13 of whom have joined him.

It's too bad the DOJ didn't begin this several years ago, but kudos to the US Attorneys, and I believe this is the second suit now, for standing by the people despite all the pressure put on them.

[bigtree]

5. they just can't keep those Obama guys (and gals) down

[sabrina 1]

6. They couldn't keep Schneiderman down. He's one of the best and held his ground even in the

face a smear campaign against him. He had cases in front of him at the time, one of them a friend of mine whose home was illegally foreclosed on, and was not about to screw those people. In the end, it shows that when people stand up for what is right, elected officials are forced to listen. Which is why we should continue to pressure this party back to its stated purpose, which as long as I've been paying attention and the reason why I am a Democrat, to be the Party of the People, not Wall St. We have a Wall Street Party already.

[Scurrilous]

2. Good news.

[Spazito]

3. Oh my...

Getting interesting indeed! I have seen Mr. Schneiderman being interviewed on a few shows and found him to be quite impressive. He is passionate about the issue and, with him now a co-chair of President Obama's new mortgage crisis unit, he has stated he has the full support of the Administration and the DOJ behind him.

There is, I have little doubt, some sphincter muscles tightening at the corporate headquarters of the big banks named in the lawsuit. Good.

[Lionessa]

7. And taxpayers at the local and county level had to make up those unpaid fees by way of

higher property taxes which is another way the 99% pay for the crap of the 1% cheaters.

On my loan alone, over 20years, the county was excluded from over $250 of fees as my loan passed through 5 banks, not one assignment of deed was registered, the MERS announcement that CitiM owned it came less than 24 hours before they filed the foreclosure auction demand. They had a copy of the original, though I have no idea how to know if they have the original, and Idaho is a no-trial foreclosure state, in that the banks are not required to go through trial, but if a homeowner wants to fight, they have to get a lawyer, and usually can't afford one, nor all the fees required to file suit.