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:


January 7, 2011. Tags: , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. Comments off.

Mind bending dissolution of housing/foreclosure law as we have known it continues apace: Will Obama destroy property rights and rule of law for TooBigToFail ZombieBanks constantly threatening TEOTWAWKI? Elizabeth Warren on the Fraud – ‘This is a Very Big Problem’; Citibank Report ‘Foreclosures Gone Wild’

Citibank Report ‘Foreclosures Gone Wild’ and the ramifications to MBS REMICs and more happy, happy, joy joy courtesy of Market Ticker who summarizes thusly:

…In the best-case scenario, the banks are lying (again) and it will take a year to sort out (during which time they will bleed like a stuck pig on their servicing costs and obligations.)  In the medium scenario they get sued to Mars and, which he didn’t say but I will, all wind up eating the bad paper which forces them into resolution – shareholders are wiped out and bondholders take a nice chop-chop. And in the worse-case scenario the title companies say “fuggit” and it all blows up instantly.

There’s no scenario under which “it’s all ok” folks.


October 12, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

July Jobs Data ~ -131k, June huge REVISION! -221K (-125K reported last month), rate holds @ 9.5% & the NY Fed begins foreclosures…

The recovery that wasn’t continues to stumble and fall.


…Nonfarm payrolls fell by 131,000 last month as the rise in private-sector employment was not enough to make up for the government jobs lost, the U.S. Labor Department said Friday. Only 71,000 private-sector jobs were added last month while 143,000 temporary workers on the 2010 census were let go.

Economists polled by Dow Jones Newswires were expecting total nonfarm payrolls to drop by a smaller 60,000 in July.

The June data was revised down significantly. Payrolls fell 221,000 that month, more than the 125,000 drop previously reported, as only 31,000 jobs were added in the private sector….

We have been discussing how Uncle Sam will be the largest landlord in the US if they continue to use the GSEs to amass property. Now the NY Fed is FORECLOSING on folks, yes Uncle Sam is sending the Sheriff to get you out, example XXXXIIXX of unintended consequences..’Maiden Lane’


James Currell is struggling to prevent his Minnesota home from being foreclosed. But his lender isn’t a bank. It is the U.S. government.

The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.

As it deals with delinquent borrowers, a team of New York Fed officials and outside advisers are trying to avoid having the U.S. government, along with local sheriff’s departments, seize commercial properties and homes as it copes with falling real-estate values. In the process, the New York Fed is getting a hard lesson in the challenges of mortgage lending….

…The New York Fed’s stance about how to pursue foreclosures is a sensitive balancing act. If it proceeds with numerous foreclosure proceedings in the coming months, particularly on residential mortgages, it could trigger concern among legislators looking to protect homeowners in their districts. The issue is particularly sensitive because taxpayers helped fund the Bear Stearns bailout….

August 6, 2010. Tags: , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Ben Bernanke: ‘Joblessness, foreclosures pose hurdles to economic recovery’ in other Earth shattering news, water is wet!

But he still denies that overly loose Fed policy has anything to do with the housing bubble V1…

…meanwhile Greenspan told the ‘Crisis Cmte’, lol, that it was Congress’ that pushed the Fed to allow all those loose lending standards and predatory products, and no regulator could have caught it, yeah whatevs Alan, you abandoned your Randian views and tanked the economy with not one but 2 bubbles, the dot com bust thanks to your loose rates and later the housing bubble…

James Grant, editor of Grant’s Interest Rate Observer,  absolutely annihilated Greenspan on Bloomberg today during the hearing coverage-go to bloomberg for entire interview it is must see TV…

The lights actually went out in the Crisis Panel hearing with Greenspan, they continued in the dark for a bit, a metaphor from God surely, heh…


…Federal Reserve Chairman Ben S. Bernanke said joblessness, home foreclosures and weak lending to small businesses pose challenges to the economy as it recovers from the worst recession since the 1930s.

“We are far from being out of the woods,” Bernanke said today in a speech in Dallas. While the financial crisis has abated and economic growth will probably reduce unemployment (MiM here, italics mine) over the next year, the U.S. faces hurdles including the lack of a sustained rebound in housing, a “troubled” commercial real estate market and “very weak” hiring, he said.

The remarks reflect concerns by Fed officials at their meeting last month that the job market and tight credit would restrain consumer spending. At the session, Bernanke and his colleagues reiterated interest rates will stay very low for an “extended period.” He didn’t repeat that in today’s speech, while saying the Fed’s “stimulative” rates will aid growth.

“The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress,” Bernanke said in prepared remarks to the Dallas Regional Chamber…

April 7, 2010. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Taxes, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Housing: Foreclosures still rising – RealtyTrac confirms earlier UBS’ forecast- won’t peak until 2010…

Here is our post on the UBS forecast for housing foreclosures and mortgage defaults

RealtyTrac concurred with UBS’ position today:

Team TOTUS needs to get the programs that they have already announced properly implemented (HAMP, HASP, PPIP) and either a. working or b. scrap them, cut off the funds, and try something else as far as housing is concerned or we will hit that second leg down in conjunction with a rising tax environment a la Congress and the consumer will go down for a generation IMO…

and don’t even think about anything in the Middle East happening to hit oil prices cuz then we will get another 2 years of TOTUS blaming THAT for his economic failure just as he stops blaming Boooosh!

Barney Frank and Dick Durbin are ready to reintroduce the bankruptcy cramdown bill and the banks have no one to blame but themselves at this point.

..The second-most powerful Democrat in the Senate called the Obama administration’s mortgage modification program“a waste of time” Wednesday, hours after the White House released disappointing new data about the program’s effectiveness

…Mr. Frank has been arguing that if the administration’s loan modification efforts, which rely on voluntary participation by mortgage servicers, don’t improve, then the political winds will move in his favor—and against the banks. “Let me put it this way,” he said at Wednesday’s hearing. “The best lobbyists we have for getting bankruptcy legislation passed are the servicers who are not doing a very good job of modifying mortgages. And if they do not improve their performance, then they improve the chances of that legislation.”…

Meredith Whitney mentioned on CNBC this morning that the banks have increased their MBS holdings of all things, are they buying each other’s properties to avoid taking writedowns after 90 days on foreclosed props??

Is that why people are making market offers and getting turned down by the banks? When will the banks get a CLUE that in THIS political environment their best interest is not served by artificially inflating asset values and failing to make MEANINGFUL modifications with the Federal incentive payments and taking a tiny profit, rather than not doing so and being TOTALLY rolled by Frank and Durbin and thereby starting a cycle of bad loans to people who cannot afford the homes all over again???? Hmmmnnn? Memo to banks suck it up, take the hit, walk it off like consumers do before you get reamed by Team TOTUS’ machine…

September 10, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Wall St. 2 comments.

Treasury: Millions more foreclosures coming…


Our previous posts on the Making Home Affordable program here

Treasury says Millions more foreclosures coming, but their Making Home Affordable program is a success!

Uh, wha? Way to set your high standards there Treasury! They have put only 360,000 loans in modification out of an estimate of 7-9 MILLION homeowners that TOTUS Treasury Team put forward on February 18th of this year.

Maybe TOTUS should have given his, ‘you owe it to the country to do your best’ speech to his Treasury officials instead of our kids, eh?


…Michael Barr, assistant treasury secretary for financial institutions, told a House Financial Services subcommittee that the Home Affordable Modification Program, or HAMP, launched earlier this year was on target to help a half million at-risk homeowners by Nov. 1.

But, “even if HAMP is a total success, we should still expect millions of foreclosures” as efforts continue to stabilize the crisis-stricken housing sector, he said.

In a report released Wednesday, the Treasury said only 12 percent of the troubled U.S. homeowners believed to be eligible for loan modifications under the Obama administration’s housing rescue plan have had their mortgages reworked….

Gee they have a pretty low bar for success there in D.C….God Bless the American people

September 9, 2009. Tags: , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration. Comments off.

Market Mover Thursday: Retail sales drop, Foreclosures hit new record, Weekly jobless claims rise…

Update: Courtesy of Diana Olick CNBC (she has a great housing blog), signs the contagion of foreclosures is spreading nationwide as unemployment (not speculators flipping homes AZ CA NV FL) becomes the driver:

Foreclosures, y/y per RealtyTrack:

OR up 84% – MN up 147% – UT up 93% – KS up 95% – NJ up 40% – MA up 43% – ME up 60% –

A bad day for the bulls on the economic data-

Despite the billions for Cash for Clunkers, retail sales fell overall, no topline growth folks, even at WalMart who beat on the Q2 earnings forecast but showed US comp stores down 1.5%…


Sales at U.S. retailers unexpectedly fell in July and the number of workers filing new claims for jobless benefits rose last week...A Commerce Department report Thursday showed total retail sales edged down 0.1 percent after increasing 0.8 percent in June, compared with market forecasts for a 0.7 percent gain.Analysts had expected a boost in retail sales from the government’s “cash for clunkers” program

…A separate report from the Labor Department showed first-time applications for state unemployment insurance benefits climbed 4,000 to a seasonally adjusted 558,000 last week.

“Retail sales were unexpectedly weaker than expected, suggesting that the money spent on the ‘Cash for Clunkers’ plan wasn’t spent on other things,” said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

“The claims data shows that the labor market, while improving, remains difficult. People are still losing jobs. Less bad doesn’t mean good. It’s still tough, and it’s a wake-up call.”

There was more bad news on the home foreclosures front, where RealtyTrac reported that U.S. home loans failed at a record pace in July despite ongoing federal and state programs to avoid foreclosures.

Foreclosure activity jumped 7 percent in July from June and 32 percent from a year earlier as one in every 355 households with a loan got a foreclosure filing, RealtyTrac said….

More on the foreclosure numbers here:

…”July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” James J. Saccacio, RealtyTrac’s chief executive, said in a statement….

…More than 360,000 households with loans drew a foreclosure filing in July, a record dating back to January 2005, when RealtyTrac started tracking monthly activity.

Notices of default, auction or repossession have reached nearly 2.3 million in the first seven months of the year — with more than half a million bank repossessions, the Irvine, California-based company said.

As MiM has said repeatedly, get the housing programs WORKING Team TOTUS, stop jumping to the next ‘big thing’ when the steps you have taken on one of the drivers of the downturn are not succeeding. It is not enough to have a plan in place, the plan has to actually work….

According to UBS’ data, 2010 will see the projected peak of foreclosures, but look at how spread out the damage is in housing for the next 2 years. I think anyone who expects a huge upturn in time for Congressional midterms is smokin rope, if they can’t unemployment to level off, housing will keep falling and consumers simply will not spend:

…At this time, the firm projects an extended period of deterioration before the housing market bottoms sometime in mid-2009. Additionally, analysts believe the 2006/2007 vintages will continue their seasoning curve as loans roll into delinquency and foreclosure.

Analysts based their projections on data from Loan Performance, Intex and the Mortgage Bankers Association‘s National Delinquency Survey. They then used a default timing curve to convert the delinquency data into a monthly foreclosure and REO forecast.

Based on their expectation of a 5% liquidation rate, analysts expect total foreclosure inventory to peak in mid-2009 at $450 billion, or 1.83 million loans.  Assuming a 1% liquidation rate, foreclosures won”t peak until 2012, while a 7% liquidation rate will put the peak in early 2009.

Analysts said that the majority of foreclosures will be from subprime. They added their foreclosure outlook for Alt-A is less than 50% of subprime, while foreclosures for option ARMs will occur later than the other sectors and remain strong into 2011 and 2012.

In terms of jumbo mortgage foreclosures, although troublesome for investors, they are relatively minor compared to the other sectors. Jumbo foreclosures is projected to begin peaking in early 2009 and hold around there through 2010.

On the agency side, analysts said data is limited. They expect the foreclosure ra te will be less than jumbos, a view supported by the collateral characteristics. Additionally, agencies have lower exposure to California.The firm’s analysis suggested that the peak in agency foreclosures will begin in early- to mid- 2010 and extend into 2011….

Tim Curry performs on German TV courtesy of strogenwb

August 13, 2009. Tags: , , , , . Economy, Entertainment, Finance, Foreclosures, Housing, Obama Administration, Politics, Unemployment Statistics, Wall St. 3 comments.

Market Mover Thursday: JPMC knocks the cover off the ball…Foreclosures rise 15%…


JPMC knocked the cover off the ball with their earnings..MiM does not trust any bank earnings as a long term indicator for investment until the underlying toxic crap is off the books, it is not being written down thanks FASB, and not sold, thanks PPIP failure! It is out there sitting..not until unemployment turns around and Team TOTUS stops killing the economy will we be safe there as far as I am concerned..

Team TOTUS is to announce more housing plans today, we shall see how that goes..

But of all the banks Jamie Dimon is the best CEO on the globe IMHO, seriously…if banks are your bag, Jamie is your guy…


…Though the second-largest U.S. bank is widely considered among the healthiest of the nation’s major lenders, the amount set aside for bad loans in the quarter more than doubled from a year earlier, to $9.7 billion.

It said a surge in credit card and loan losses was likely to worsen.

Second-quarter results benefited from improving credit markets as well as federal regulators’ efforts to stimulate the economy by keeping borrowing costs low, bolstering mortgage and other lending activity.

Chief Executive Jamie Dimon’s bank skirted the worst of the credit crisis by largely avoiding losses and writedowns on complex debt and mortgages that hurt many rivals.

Among the six largest U.S. banks, JPMorgan is the only one not to lose money in any quarter since the recession began in 2007….

Jamie agrees with MiM!!!

…Dimon expressed opposition to an Obama administration plan to create a consumer finance protection agency, echoing other banks.

“The more agencies, the more politics and bureaucracy,” he said…

Weekly jobless claims are all whacked due to seasonal auto adjustments and bankruptcy filings:

The number of U.S. workers filing new claims for jobless benefits fell sharply last week to the lowest level since January, the government said on Thursday, but the data was distorted by an unusual pattern of automotive industry layoffs that amplified the drop

Initial claims for state unemployment insurance fell 47,000 to a lower-than-expected seasonally adjusted 522,000 in the week ended July 11, the Labor Department said. Analysts polled by Reuters had forecast claims to be unchanged at 565,000 last week.

A Labor Department official said that far fewer layoffs than anticipated based on past experience in the automotive sector and elsewhere in manufacturing accounted for both the large drop in seasonally adjusted claims last week and in the very steep decline in so-called continued claims.

This was the second week in a row that seasonal factors had affected the data and the official said this would continue for one or two more weeks before this influence faded. “The big drop is not necessarily a reflection of what is going on in the economy,” he said…

In other business headlines, Housing foreclosures rising:

The number of U.S. households on the verge of losing their homes soared by nearly 15 percent in the first half of the year as more people lost their jobs and were unable to pay their monthly mortgage bills.The mushrooming foreclosure crisis affected more than 1.5 million homes in the first six months of the year, according to a report released Thursday by foreclosure listing service RealtyTrac.


July 16, 2009. Tags: , , , , , , , , . Finance, Housing, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.

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