Banks Lose Pivotal Massachusetts Foreclosure Case

[Eugene]

Source: Bloomberg

Banks Lose Pivotal Massachusetts Foreclosure Case
By Thom Weidlich - Jan 7, 2011 12:44 PM AT

US Bancorp and Wells Fargo & Co. lost a foreclosure case in Massachusetts’s highest court that will guide lower courts in that state and may influence others in the clash between bank practices and state real estate law. The ruling drove down bank stocks.

The state Supreme Judicial Court today upheld a judge’s decision saying two foreclosures were invalid because the banks didn’t prove they owned the mortgages, which he said were improperly transferred into two mortgage-backed trusts.

“We agree with the judge that the plaintiffs, who were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure,” Justice Ralph D. Gants wrote.

Wells Fargo, the fourth-largest U.S. lender by assets, dropped $1.10, or 3.4 percent, to $31.05 at 11:41 a.m. in New York Stock Exchange composite trading. US Bancorp declined 28 cents, or 1.1 percent, to $26.01.

-snip-

Read more: http://www.bloomberg.com/news/2011-01-07/us-bancorp-wells-fargo-lose-pivotal-massachusetts-foreclosure-case.html

[zazen]

1. how soon before Scalia, et al, find a way to overturn it?

with some twisted logic a la Bush v Gore 2000.

[dixiegrrrrl]

2. The beauty of this ruling is

that is ties together what most people have seen as separate arguments:

1. fraudulent foreclosures, which banks have justified as merely a "paperwork glitch"
( including a case of using a deceased robo-signer's name for 10 years)
to hide the fact they never HAD the original mortgages.
BOA, Chase and Wells Fargo were/are especially egregious in this game.
Unfortunately, this form of fraud was covered up by blaming the homeowner as a mortgage deadbeat who had no right to complain about losing the house.

and

2. the less talked about issue of the Mortgage Backed Securities trusts which by law
were supposed to have individual mortgages, the so called "wet-ink" notes, IN the trusts
at the time the trusts were set up.
Turns out this case proves the mortgages were not legally in the hands of the servicers
(banks) NOR in the hands of the trust.
which is what people who have followed the mortgage fraud issue have been saying all along,since 2008.
No one actually seems to know where the mortgage notes are.

for anyone who wants to read the court opinion, ( perhaps those of us who still pay mortgages, for example), it can be found here:

http://www.scribd.com/doc/46472110/Ibanez-Case-JAN-2011

big K&R and bookmarking.


NOTE: BOA stock dropped today. :evilgrin:

[Po_d Mainiac]

3. Correct

And the claw-backs are going to come fast and furious....Bank stock holders have no idea how big this is, otherwise they would have bailed months ago.

The true folly behind the stress-tests becomes known in:
9-8-7-6-5-

[dixiegrrrrl]

6. I am, however, watching this: Banks may get an out?

NO criminal charges for all that fraud.

‘Not Criminal’

The group isn’t pursuing a criminal investigation , Miller said. “Our focus is to reform the servicing process and that’s inherently civil, not criminal,” he said.

Headline:

State Foreclosure Settlements to Start With Biggest Banks, Iowa AG Says

The five largest loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., may be the first to settle with the 50 state attorneys general probing foreclosure practices, Iowa Attorney General Tom Miller said.

No settlements have been reached yet, Miller said yesterday in a phone interview. The other three are Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc., said Miller, the leader of the 50-state investigation.
The five have 59 percent of the U.S. market , Miller said.

“What we’re looking at is five separate agreements with the five largest servicers,” Miller said. “We’re still a ways away” from reaching agreements, he said. “We’re working very hard to figure out what should be in the settlement.”

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x85251

[Po_d Mainiac]

7. No surprise there

Was there ever any doubt how the AG's would proceed? Nah. The precedent was set with the "Tobacco Settlement"

Criminal trials cost too much money. Every State AG is likely under orders to bring home as much bacon at the least expense. And do it quickly. The settlement funds were spent yesterday.

[Po_d Mainiac]

8. more

http://news.firedoglake.com/2011/01/06/the-mystery-of-tom-millers-shifting-comments-on-criminal-sanctions-for-foreclosure-fraud/

[JohnWxy]

4. As has been noted, the best way to rob a bank is to own one. Lockem up & throw away the key.

[JohnWxy]

5. I'm shocked! ....shocked that there's double dealing going on here.

"The Market will police itself.": ..........Mr. Magoo.




RECOMMENDED.

[TerryJo]

9. mass joinder

This isn't about buying people foreclosed homes people. It's about saving our OWN homes! All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............
https://sites.google.com/site/sueyourlendernow/