Judicial Branch saves US Private Property Rights, MASS Supreme Court throws out ‘securitized servicer foreclosures’ by Wells and US Bank in Ibanez, LaRace cases
Update: Full ruling here. And some appropriate theme music from Judas Priest~
Update 2: From the ruling:
Focusing first on the Ibanez mortgage, U.S. Bank argues that it was assigned the mortgage under the trust agreement described in the PPM, but it did not submit a copy of this trust agreement to the judge. The PPM, however, described the trust agreement as an agreement to be executed in the future, so it only furnished evidence of an intent to assign mortgages to U.S. Bank, not proof of their actual assignment. Even if there were an executed trust agreement with language of present assignment, U.S. Bank did not produce the schedule of loans and mortgages that was an exhibit to that agreement, so it failed to show that the Ibanez mortgage was among the mortgages to be assigned by that agreement. Finally, even if there were an executed trust agreement with the required schedule, U.S. Bank failed to furnish any evidence that the entity assigning the mortgage–Structured Asset Securities Corporation–ever held the mortgage to be assigned. The last assignment of the mortgage on record was from Rose Mortgage to Option One; nothing was submitted to the judge indicating that Option One ever assigned the mortgage to anyone before the foreclosure sale. [FN19] Thus, based on the documents submitted to the judge, Option One, not U.S. Bank, was the mortgage holder at the time of the foreclosure, and U.S. Bank did not have the authority to foreclose the mortgage.
Continues after the break:
Do the folks over at NAR have the bxlls to print the data on existing home sales tomorrow? Indications from the real world are a drop of a minimum of 20%. I am gonna say NAR gives us the unvarnished, SCARYUGLY truth to build pressure for QE2 or REQE(whatevernumberwereon), so a SAAR of 3.77 million says I.
Tom Lawlor gives us the latest ‘Consensus’, which is starting to sound like some disease,
…amazingly the “consensus” forecast for existing home sales in July calls for a SAAR of 4.65-4.66 million, which would be down just 9.3-9.5% from last July’s seasonally adjusted pace….
Read Tom Lawlor’s guest piece on CalculatedRisk outlining his take on the number.
Will NAR lowball it even further, a kitchen sink, report? Will they try to ‘smoothe’ the data over the next few months hoping we hit a ledge or a meteor hits us?
…One forecaster (no names!), after hearing about the local sales data, suggested that the NAR “just won’t” publish a sales number that low, and will probably “smooth” the number over the next several months!!!…
Or will they do what needs to be done and report the damned data as it really is so people can come to grips. If they plan to do QE2 and the USD is going back down, let’s flag the play so we in the stands can load up the popcorn and precious!
Tune in tomorrow morning 10:00am EST to find out!
Will the market wig out on the data? Stick its fingers in its ears and say La La La all the way to 11k? Who the hell knows, it has become an irrational thing being run out of TPTB and TBTF monsters as far as I can tell.
CalculatedRisk-10:00 AM: Existing Home Sales for July from the National Association of Realtors (NAR). The consensus is for a decrease to 4.65 million (SAAR) in July from 5.37 million in June. Take the under! Housing economist Tom Lawler is projecting 3.95 million SAAR. In addition to sales, the level of inventory and months-of-supply will be very important (since months-of-supply impacts prices).CR:
Update: Heh! Warren was at the WH yesterday when we were posting, lol., the ‘professional’ left will go ballistic if they pass over Warren, but hey they appointed the CARLISLE GROUP TO RUN GM!!! BWAAAAHAA! CHANGE!! HAAAAA!!!
Elizabeth Warren, whom many Democrats want to see nominated as head of a new consumer financial agency, met with White House officials on Thursday.
The Obama administration has repeatedly said Warren is under consideration as the inaugural head of the Consumer Financial Protection Bureau, which was a centerpiece of the president’s effort to overhaul financial regulations.
“The president believes that Elizabeth Warren is a champion for middle class families and consumers and she, among others, is a strong contender for this position,” said White House spokeswoman Amy Brundage. “The president has not yet made a decision and no announcement is imminent….
Tim and Larry are terrified of Warren getting the spot as the first chief of the Consumer Protection Board. She won’t toe the line. I hope she gets it, she is the only one telling Tim, hey your plans are EPIC FAIL!
Update 4: Yves at NakedCapitalism sums up this latest plan beautifully:
…How is this supposed to help borrowers? Seriously. This is the government equivalent of a subprime teaser loan. But this is even worse. First, teaser borrowers paid at least a smidge of interest (even 2% is more than zero), which placed a teeny constraint on their ability to take on debt. Second, housing was at least appearing to increase, so it wasn’t entirely nuts (merely sorta nuts) to look to the principal value of the house as security and reason to extend yourself financially….
…This measure, as modest as it is, therefore looks like yet another backdoor transfer to banks, and a way to try to prop up housing prices (note the “stabilize housing markets” comment) and secondarily, funnel some cash to communities (note the loans are intended to be used for property tax payments too)….
The big number is tomorrow, the drop in new home sales, post dopey homebuyer tax credit which pulled 2 million purchases forward, that’s 2 million less first time homebuyers to move on new housing in the months ahead…
…The National Association of Realtors said sales fell 2.2 percent month over month to an annual rate of 5.66 million units from an upwardly revised 5.79 million-unit pace in April.
Analysts polled by Reuters expected May sales to rise 5.5 percent to a 6.12 million-unit pace from the previously reported 5.77 million units in April….
Housing: Team Obama plans to ‘poll’ Americans to see what we want to do with Fannie, Freddie? Where is the leadership?! plus Ben Bernanke testifies before JEC…
Update: Ahh HousingWire says they are taking responses to their poll via the Register first. Team Obama’s answer for everything is a meeting, a poll, a panel, typical faculty lounge stuff, lol
The administration said it will first seek public response via the Federal Register listed at regulations.gov. The administration will then hold a series of public forums on housing finance reform.
Update: HousingWire has the details on the ‘poll’ Team Obama plans to take, what a disgrace! Should have and still should just do HOLC, but then Credit Suisse and UBS might take a loss, Gawd Forbid, but it is fine if taxpayers shoulder it, I call shenanigans….
The Obama Administration today puts the public behind the mic on the reform of the US housing finance system, including Fannie Mae and Freddie Mac. A list of questions published today targets the opinions of mortgage market participants, industry groups, academic experts and consumer and community organizations, according to an e-mailed statement from the US Treasury Department.
Here is the Treasury Press Release:, they do not list where to send your input, lol, but here is their contact info:
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
General Information: (202) 622-2000
Fax: (202) 622-6415
7:23: Shaun Donovan (HUD Sectry) says he does NOT believe the stress on housing affordability fueled the crisis and that it was vagueness in the programs that was a problem. Oh boy.
Ed Royce R-CA is disputing this and citing Geithner’s previous testimony that the GSEs used the affordability mandates to buy bad loans…well yeah!
Okay we’re 20 mins in and it’s a smack down, you must watch this hearing!
now Mel Watt D-NC is talking up low income rental housing and the GSE roles in that. This is one of Barney Frank’s pet plans. I have long said they will take these foreclosed homes and convert them to Section 8 after families lose them. Unreal.
7:20 am AZ time: Watch the hearing live now here
ZOMG!! BUY A FRAKKIN CLUE TEAM OBAMA!!!! Lordy, Lordy..I thought these guys were SOOPER GENIUSES who had a plan before he even took office!
Now we have an uncapped FAN FRED FHA debt growing exponentially and they want to take a frakkin poll? Are you frakkin kidding me?!
The hearing with the House Financial Services Cmte has begun and Spencer Baucus R has nailed the issue-
Ranking Member Spencer Bachus gives opening remarks at a Financial Services hearing on the future of housing finance, where the Obama Administration failed to provide a plan for reforming Fannie and Freddie.
If that hearing doesn’t terrify you, see Ben Bernanke live here before the Joint Economic Cmte suddenly acknowledging we have a serious fiscal crisis and need immediate action, funny he didn’t say that before they rammed down the Obamacare bill huh? frakker.