As hard as it may seem to believe, the largest mortgage servicers are still fabricating documents for use in foreclosures.

That’s according to an article in American Banker, titled Robo-Signing Redux: Servicers Still Fabricating Foreclosure Documents.

Key points:

• The practice continues a year after the companies were caught in the robo-signing scandal, even as the industry has been negotiating a settlement with state attorneys general re: loan-servicing abuses.

• Several dozen documents reviewed by American Banker show that as recently as August some of the largest U.S. banks, including Bank of America Corp., Wells Fargo & Co., Ally Financial Inc., and OneWest Financial Inc., were essentially backdating paperwork necessary to support their right to foreclose.

• Some of documents reviewed by American Banker included signatures by current bank employees claiming to represent lenders that no longer exist.

• North Carolina consumer bankruptcy lawyer O. Max Gardner III says servicers and trustees often submit promissory notes in court without proper endorsements, which show the chain of title from one lender to another. Then, after the fact, there will be “a magically appearing note with a stamped endorsement,” Gardner said.

• When plaintiff’s lawyers then try to depose the person whose name is stamped on the endorsement, “we’re being told the person is no longer employed by the servicer or by the party for whom they signed,” Gardner says.

• Linda Tirelli, a New York bankruptcy lawyer, calls such mortgage documents “Ta-Da!” assignments because they seem to appear out of nowhere.

This is why a full investigation must be absolutely mandatory prior to any settlements with the lenders or servicers.


Robo-Signing Redux: Servicers Still Fabricating Foreclosure Documents
Kate Berry
AUG 31, 2011 5:47pm EDT

Banks Continue to Fabricate Documents, Commit Foreclosure Fraud
FDL, September 1, 2011

Category: Foreclosures, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

39 Responses to “Banks Still Fabricating Docs, Commiting Foreclosure Fraud”

  1. BennyProfane says:

    At this point, what can you say. The attorney general of NY state is accosted at a funeral by the publuc avocate of the Fed, and is told that what is good for the banks is good for America, so get the f*** in line, and Mary Shapiro just appointed a recent “retiree” from GS to “oversee” mtual fund regulation and new Dodd Frank regulation for hedge funds. I don’t have the exact numbers, but, from what I remember, this woman (the retiree) made more money than God last year. From GS. You can’t make this stuff up.

  2. xynz says:

    How long do you think that Schneiderman and Biden will be able to hold out against the other state AGs and the DOJ?

  3. Transor Z says:

    What’s wrong with promising perp walks and then negotiating a whitewash on behalf of all 50 AGs without a single document subpoena or deposition?

  4. bocon007 says:

    Molotov cocktail, anyone?

  5. Tarkus says:

    Transor Z Says:
    September 1st, 2011 at 7:51 pm
    What’s wrong with promising perp walks and then negotiating a whitewash on behalf of all 50 AGs without a single document subpoena or deposition?
    It’s not “all” state AG’s. NY and Nevada’s AG’s seem to have dictionaries that include the definition of “law” in them. Apparently the others do not…

    It makes you wonder why 48 of them are so willing to sweep it all under the bench.

  6. Jack Damn says:

    I think everyone should just admit something that all of us all already know deep in our carb clogged hearts:


    They are the law. Or they own the law.

  7. Transor Z says:


    It’s what Miller tried to pull before some AGs blew it up.

  8. uzer says:

    “It makes you wonder why 48 of them are so willing to sweep it all under the bench.”

    it doe$n’t make me wonder

  9. seth1066 says:

    “When plaintiff’s lawyers then try to depose the person whose name is stamped on the endorsement, “we’re being told the person is no longer employed by the servicer or by the party for whom they signed,” Gardner says.”

    One would think that production could be forced of name, address and work history with dates, etc.

    Wonder if there is some age test of the ink that could be done right there in open court. I remember an attorney told me a long time ago sitting in court and there was a discussion as to when a hand written document was created and the attorney’s comment was, after he had his nose to the document: “Your Honor, you can still smell the ink!” The fact finder took a sniff and demanded more proof bef0re admittance.

  10. Ridge Runner says:

    After reading the following, the shafting of GM bondholders as part of the GM bailout came to mind. Whoever has the least juice in a given deal gets thrown under the bus. It’s the Chicago Way, franchised to the whole country:

    = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
    White House, NY Fed Member To NY Attorney General: Stop Harassing Wall Street!

    We’re still trying to come up with plausible situations that are more “indefensible” than screwing up the economy by peddling toxic mortgages, foreclosing on the people you swindled with those toxic mortgages by forging court documents and using “robo-signers,” and then attempting to prevent government attorneys from investigating, lest it happen again.

    According to the Times, the secretary of Housing and Urban Development, Shaun Donovan, and “high-level Justice Department officials” are insisting that Schneiderman drop his opposition to the $8.5 billion settlement that would pay investors who were screwed by BOA’s toxic mortgages 5 cents on the dollar, and would force them to waive any right to sue on the matter.

    = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

    Indeed, the foxes are in charge of the hen house, and they’re walking off with every hen and egg they can grab on the way out. Keep pretending the foxes are “public servants” and you and your wallet are next.

  11. Tarkus says:

    Transor Z Says:
    September 1st, 2011 at 8:11 pm

    It’s what Miller tried to pull before some AGs blew it up.


    Hmmm – Tom Miller – Iowa AG?

    From Wikipedia:

    “From 2010 Miller has coordinated the national investigation into improper foreclosure practices by major financial lenders. After the beginning of the investigation, he has raised $261,445 from finance, insurance and real estate contributors. That is 88 times as much as he received over the previous decade.”

    Well, that’s serendipity for ya…..

    What about the other 47?

  12. wunsacon says:

    >> They are the law!

    Judge Fedd?

  13. Al Bergette says:

    The banks own the politicians and it’s about time We The People put these fuckers in their place.

    The Banks lack of performing due dillogence in perfecting the proper paperwork with the Recorder of Deeds is NOT a trival matter.

    For hundreds of years the proper protocol was maintained where an audit trail of the transfer of Real Estate was concerned.

    It is becomming increasingly more evident that with the repeal of Glass Stegall and Phil Grahm’s whatever Act of 2000 or whatever year it was, Wall Street and the Banks couldn’t slice and dice Mortgages fast enough and to hell with maintaining a chain of Title. They knew what they were doing.

    This is a MAJOR problem and the Banks are still victimizing us with it.

    The Real Estate market can never recover till this bullshit is cleaned up. Politicians leaving the cleaning up to the same suckholes who created it is typical and collossally stupid!

    Here’s what I have learned 1st hand exploring purchasing a Forclosure in my condo building in Chicago.

    Before the crash of ’08, the current owner of the unit went to town buying units in 12-15 buildings in the city with money the Banks couldn’t loan the free-and-clear-asset-less borrower fast enough (me a conservative self-employed person, they wouldn’t write a loan. While I could write a ficticious W-2, I did not). Then the OPM borrower rented the units out. Now, they are in Forclosure on virtually every unit.

    So, I go to city hall and I also see a couple of lawyers to investigate bidding on the unit in my building. It was comming up for auction in a non-bank, non-sherrifs sale auction that has already been delayed three years.

    At this time, the Defaulting Mortage holder/Owner has a Section 8 Tennant and the Owner still can’t see fit to pay the Mortgage payments where rents in the building are $1400/Month and the Mortgage is $140K & 6% and the owner is $30K behind on Assesment payments (Txs $250/mth & $500 Assmt).

    As I’m going over the info. at the Recorder of Deeds I find pre-2000 every thing is as it should be. Mortgage Notes, Releases, Quit Claims, Liens more Releases, etc. Then in 2003 there is a loan with a West Coast Bank in the name of the current owner. Thereafter, there is zip, nada zilch filings, except for an Assignment in 11/2007 to Deutsch Bank with M.E.R.S as the Nominee.

    The CA Bank writing the Mortgage in ’03 got bought out by another Bank, that Bank shut down the Mortgage operation and evidently the Mortgage paper went to one bank and then another. I acertained this by calling Deutsch Bank and giving them document numbers that I had.

    In doing my due dilligence, I wanted to know the following: Is the auction going to be on the 1st Mortgage or some 2nd or 3rd subordinate Mortgage. Are there any past due special or regular assessments, who is holding the 1st Mortgage? One would think with all the fucking inventory out there, the Banks and building management company would willingly give potential buyers the information. NO WAY. You’d think I was asking for the code to Fort Knox. When checking on past due assements, the Bldg. management association said they needed approval from the Bank and that I should send my request to the Management Co. in writing which I did. From that point they ignored me. It’s been six weeks & I’ve left three messages. So givin I got the name of the Bank by giving good phone in the many calls I made to various people I called, I determine the Bank name. I call the Bank and I tell the I needed a letter to the Mgt. Co. and I tell him why. The guy at the Bank holding the 2003 Mortgage (NOT Deutsch) tells me he won’t tell me or do anything for me.

    An intersting element to this story is one of the Law Firms that collects for creditors who first brought this Foreclosure to the firm that performs the auctions told me they were replaced with another law firm at the direction of the Bank holding the paper. I asked, why would that happen? I was told, “This firm put in a new policy of recertification and that bank would not do it so they used another firm”. I didn’t ask what recertification meant but I put two and two together. It’s probaby certifying the Note and Deeds are in order. From this layperson’s perspective they are not. That MERS assignment? The signatories on it? Just scribles, no descernable names & no printed names underneath. Isn’t that convient. The auction on the unit never happened. Two days before the new law firm cancelled it.

    Here’s what really sucks in my mind. We the taxpayers give these crook banks Trillions to make them whole for those faux CDO & CDS “investment” vehicles, then the bone head politicians leaves the residule asset and its beneficial interest in the hands of the same crooks who created the problem. Then with MORE of our money the Gov’t gives these crooks MORE of our money so they can keep the inflated value of the property from falling to a realistic level by bidding against us at the auction with money WE gave them.

    The Real Estate market will NEVER recover until these SOB’s have nothing to do with the sales and the big SOB’s who have raped our Real Estate value go to jail.

    Any one of us who fill out paperwork without dotting the “i”‘s or crossing the “t”‘s on any gov’t or bank paperwork get sent to the back of the line to do it right before they will do anything with it! Don’t be brainwashed that it’s no big deal if the Banks didn’t file stuff properly!

    Fight back!!

  14. scottinnj says:

    U.S. Is Set to Sue a Dozen Big Banks Over Mortgages

    “Investors fear that if banks are forced to pay out billions of dollars for mortgages that later defaulted, it could sap earnings for years and contribute to further losses across the financial services industry, which has only recently regained its footing.

    Bank officials also counter that further legal attacks on them will only delay the recovery in the housing market, which remains moribund, hurting the broader economy. Other experts warned that a series of adverse settlements costing the banks billions raises other risks, even if suits have legal merit. ”

    “While I believe that F.H.F.A. is acting responsibly in its role as conservator, I am afraid that we risk pushing these guys off of a cliff and we’re going to have to bail out the banks again,” said Tim Rood, who worked at Fannie Mae until 2006 and is now a partner at the Collingwood Group, which advises banks and servicers on housing-related issues.

    Can’t put the bankers bonus’ at risk, can we?

  15. Tarkus says:

    scottinnj Says:

    U.S. Is Set to Sue a Dozen Big Banks Over Mortgages

    ” Bank officials also counter that further legal attacks on them will only delay the recovery in the housing market, which remains moribund, hurting the broader economy. Other experts warned that a series of adverse settlements costing the banks billions raises other risks, even if suits have legal merit. ”

    Yikes! That’s not good.

    Looks like we’re going to have to nationalize them.

    Senior management might be too busy in prison to run the companies anyway.

  16. Winston Munn says:

    U.S. Is Set to Sue a Dozen Big Banks Over Mortgages

    Yeah, like anyone in the beltway will bite the hand that feeds them. Puh-lease!

    There is no way that President Obama, The Kenyan Compromise, The Ayatollah of Roll-Ovah, The Living Group Hug will ever allow Eric and his dominoes to carry through with this threat. I would venture that before long we see another headline: U.S. Is Set to Sue a Dozen Big Banks Over Mortgages – However, President Wants to Look Forward, Not Back

  17. louis says:

    Is this why Burry advised to open Canadian Bank Accounts?

  18. Joseph Martinez says:

    The 1920′s was called the lawless age but it was a different type of lawlessness then what we have today. Today it is the white collar lawlessness and the only way to get this under control is to amend the 5th amendment to read:
    No person shall be held to answer for a capital, or otherwise infamous crime, unless the person is a court of law, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself except in a court of law, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

  19. soitgoes says:

    Enough, Barry! You’re wasting too much of your energy thrashing the banks. We get it! Onwards and upwards with more solid content.


    BR: You’ve obviously come to the wrong place . . .

  20. ga082003 says:

    Five charts for the day

  21. Ridge Runner says:

    I ran across this white paper a few months ago, which points out the pernicious “spillover” effects of the MERS vandalism of the land ownership records system:
    MERS, The Unreported Effects of Lost Chain of Title on Real Property Owners and Their Neighbors

    It’s author seems to be informed mainly about the legal terrain in California. Has anyone seen reviews of this study from a more general perspective? Also, the individual who posted the document to Scribd seems to be collecting others on the same topic:
    for example;

  22. Tricky Dick says:

    soitgoes — Sounds like you are long and wrong banks!

    BR, ignore people like this — you keep the heat on these criminals — we will never have a fair market unless the pressure is maintained on law breakers and banksters.

    Now that I think about it, soitgoes, instead of defending the banksters and our criminal elite, why dont you go fuck yourself?

  23. Sechel says:

    It befuddles the mind how not everyone is seeing the big picture here.
    Delinquent borrowers vs technically insolvent banks
    Improperly originated/ transferred loans vs robo-signing /”memorializing” of docs and improper foreclosures

    At the end of the day it all comes back to almost inescapable and necessary deleveraging of our debt. It also shows how the breakdown of rule of law in mortgage finance has cost us Billions if not more.

  24. hammerandtong2001 says:

    Mortgage origination fraud, servicing fraud, fraudulent conveyance of deeds to trusts, fraudulently selling MBS to investors, foreclosure fraud.

    Mortgage fraud in America is like “The thing that would not die.”

    And even when exposed as fraud — it continues!


  25. Bill Wilson says:

    Earth to Obama.

  26. Petey Wheatstraw says:

    As I’ve said repeatedly: Our most profound problem isn’t that we allowed the bubble to form and then pop — it’s not even that we spent/created money trying to shore up the financial system. At its core, our biggest problem is that we have failed to uphold the laws of our nation. We’ve gone full criminal.

    This is and always has been a failure to enforce the law.

    Welcome to post-Republic Rome (v.2).

  27. DeDude says:

    And how many of these fraudsters have been prosecuted and put in jail? Or is it only when people defraud banks that someone gets prosecuted?

  28. [...] (via The Big Picture) [...]

  29. Raleighwood says:

    When we have politicians that willingly look the other way with regards to our civil liberties is it any wonder that the laws concerning anything else are also up for “interpretation”?

    Apparently the banks are above the law with the full consent and knowledge of our elected and appointed officials. The politicians are not listening to anyone other than the corporations – their “real” constituents.

  30. number2son says:

    Sorry to sound like a one-note piano, but this is precisely the reason Obama will not have the vote of progressives in the next election. He is a corporate shill and it’s impossible to deny it.

  31. Petey Wheatstraw says:



  32. [...] Banks Still Fabricating Docs, Commiting Foreclosure Fraud | The Big Picture (tags: fraud mortgages foreclosure) [...]

  33. AHodge says:

    American way
    it aint illegal unless the State Attorney’s General say it is..

  34. AHodge says:

    this is one FUBAR mess
    but i must say
    if the in charge were willing to push all other legal claims on the banks
    make them write down all other losses- prosecute all (othr) real crimes
    and “resolve” all needed including 100% management firing w clawbacks
    i would just say f.. it and give them title to property vacant where the owners werent cheated pushed out

    when losers here say move on
    they forgot the clean up the mess take losses part

  35. gordo365 says:

    @ soitgoes – I think People magazine has a new business section you might find more useful…

  36. johnnywalker says:

    Totally appropriate quote of the day.

    “Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” —John Maynard Keynes

  37. soitgoes says:

    What a shame that you have such great content yet devote so much of your energy to thrashing the banks. I’m not saying the banks are right or wrong – just that you have much more intellect and intelligence to devote to a topic that won’t improve by blog postings. The power you have is to enrich your audience. By giving your attention to the banks, you draw them more media attention than they deserve.

    I’ve been attending for a while and enjoy your other content.


    BR: My opinion of the banks for the past 5 years has been pretty dead on. If you want to cheerlead, go ahead, but I know too much truth to get sucked into that silliness

    This is for you