Denise Richardson

Texas AG Sues American Home Mortgage Servicing

2010-08-31T20:30:16Z

The Texas Attorney General has decided to crack down on abusive mortgage servicing practices -after a FOX news 4 investigative piece that noted homeowner complaints involving their mortgage servicing company; American Home Mortgage Servicing, Inc. a/k/a AHMSI.

In an earlier blog, "Never missed a mortgage payment --but facing a foreclosure" the video investigative report shed light on the types of complaints many borrowers these days have against their mortgage company. Just two weeks after this investigation, the AG's office who originally told complaining consumers they should hire their own attorneys to fight American Home Mortgage Servicing, has changed it's mind.

Now, the Texas Attorney General is suing AHMSI accusing them of aggressive and unlawful tactics when collecting mortgage payments from Texas homeowners and using using agressive and illegal debt collection practices -many of which resulted in jacked up mortgage payments -without cause.

Read AG press release and click here for more info on Mortgage Servicing Issues:

The financial crises; exposing the truth...

2010-08-27T16:23:07Z

As I noted in an earlier blog, when it is a little ol' consumer up against a big corporation, there just doesn't seem to be any compelling reason for that mortgage servicer, or big bank to TELL THE TRUTH.

Image by Elfboy via Flickr

This week, Richard Zombeck from ShameTheBanks.org wrote a great blog that is indicative of what many homeowners have been screaming about for some time. His blog; Government Tactic: Help Banks by Lying to Homeowners over at the Huffington Post is passionate and eye-opening --with several great comments -be sure to read it in its entirety here.

Here a few short excerpts;

"...To add to the homeowner's stress and assure Fannie Mae of a continued open season on American Families, Executive Vice President for Credit Portfolio Management, Terence Edwards issued an outright threat to homeowners, creating a new rule punishing anyone who stops paying their mortgage and walks away from their home by not allowing those who choose that path to get a Fannie Mae loan for seven years."

So not only did Fannie Mae purposely string homeowners along with no end in sight, and draining savings and causing millions of people sleepless nights while they wait for the shoe to drop, they essentially closed the exit to the burning building while they lit the wick.

Here's an excerpt from one of many comments that correctly points out that's it often what we don't hear -that speaks volumes...

"At this point, we are still not using "crime words."

We're hearing rhetoric that says, "banks are Too Big To Fail," when it is abjectly obvious that they failed, rather spectacularly, a long time ago.

And we're NOT hearing words like:
* securities fraud
* racketeering
* swindling
* money laundering
* fraud on the market
* deception

Furthermore, we are NOT facing up to the "enabling crime," which is Bribery. We continue to use words like "lobbying" and "campaign contribution." The Supreme Court of the United States, clearly demonstrating that it is just as subject to Bribery as are the other two Branches, happily declares that Article 2 Section 4 of the Constitution does not mean what it says, therefore "corporate freedom of speech" is somehow "constitutionally protected."

And so it goes..."

Read the rest of this comment and article in it's entirety here.

You may also want to keep reading, and view this video from ProPublica;

Banks' Self-Dealing Super-Charged Financial Crisis

Over the last two years of the housing bubble, Wall Street bankers perpetrated one of the greatest episodes of self-dealing in financial history.

Faced with increasing difficulty in selling the mortgage-backed securities that had been among their most lucrative products, the banks hit on a solution that preserved their quarterly earnings and huge bonuses:

They created fake demand. MORE

NOVA pulls together a first class event for victim advocates

2010-08-25T12:25:44Z

I know I have been unusually silent this week and apologize for not being able to respond to many emails --yet. The reason being is I have been in Utah at a conference for victim advocates and attending and presenting workshops throughout the week. It's been a golden opportunity to meet the amazing advocates behind the various organizations that assist and and support victims of crime -- representing a contingency of victim advoctes from 42 states and 5 countries! The hard working people behind NOVA (National Organization for Victim Assistance pulled together a first class event! For more information on NOVA and their phenomenal efforts on behalf or victims, visit TryNova.org.

The 36th NOVA Conference

National Organization for Victims Assistance

Victim to Victorious!...
The Journey Continues

August 22-25, 2010
Image via Wikipedia

Hilton Salt Lake City Center
Salt Lake City, UT

Class Action filed against mortgage companies and foreclosure attorneys; Seeking return of homes and punitive damages...

2010-08-20T19:34:10Z

New York-based attorney Susan Chana Lask has filed a federal class action complaint on behalf of tens of thousands of New York State homeowners who lost their homes to an alleged foreclosure fraud orchestrated for years by a New York "foreclosure mill" attorney and major mortgage companies.

The case is filed in the US District Court, Eastern District of New York, entitled "Connie Campbell against Steven Baum, MERSCORP Inc., et al.", Case #10CV3800.

It alleges violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), Real Estate Settlement Procedures Act (RESPA) and the Fair Debt Collection Practices Act, and that homeowners paid inflated foreclosure and other fees fictionalized by Baum who profited from the scheme since 2005.

The action seeks to return tens of thousands of foreclosed homes to their owners or the values thereof and hundreds of millions in punitive damages against Baum, MERSCORP and HSBC. READ MORE...

Also see: Homeowner asks HSBC: "Who is MERS? What the Heck is Going on here?"

Class Action Amended Against Merscorp to Include Shareholders, Djsp

UPDATE: From 4closureFraud.org
CLASS ACTION AMENDED

Kenneth Eric Trent, P.A. of Broward County Florida has amended the Class Action complaint Figueroa v. MERSCORP, Inc. et al filed on July 26, 2010 in the Southern District of Florida.

Now Included in the amended complaint;
MERS shareholders HSBC, JPMorgan Chase & Co., Wells Fargo & Company, AIG, Fannie Mae, Freddie Mac, WAMU, Countrywide, GMAC, Guaranty Bank, Merrill Lynch, Mortgage Bankers Association (MBA), Norwest, Bank of America, Everhome, American Land Title, First American Title, Corinthian Mtg, MGIC Investor Svc, Nationwide Advantage, Stewart Title, CRE Finance Council f/k/a Commercial Mortgage Securities Association, Suntrust Mortgage, CCO Mortgage Corporation, PMI Mortgage Insurance Company, Wells Fargo and also DJS Processing which is owned by David J. Stern.

Find more info on mortgage servicing and wrongful foreclosures by reading a few earlier blogs.

Scam Alert: Facebook's DISLIKE Button a Scam

2010-08-20T13:14:48Z

If you haven't yet heard, yes, there's yet another a new Facebook "phishing" scam making the rounds. Many FB users have fallen for this scam and as they click on the link that comes with a message about Facebook's new app; a "DISLIKE" button, they end up installing malicious malware or spyware on their computer. Facebook doesn't have a "DISLIKE" button.

Image via Wikipedia

The Facebook message that encourages you to get the 'DISLIKE' button appears to come from a friend; "I just got the Dislike button, so now I can dislike all of your dumb posts!!: or "Get the official DISLIKE button now, or "You got to see this video!"

If you click on the link an 'install page' will pop up.

If you clicked on the link and followed the instructions, you would be asked to take a survey. The survey asks for permission for an app to run. And in the survey -you are asked to provide even more personal information.

If you clicked on the link, be sure to remove the app from your Facebook profile ASAP and delete the message.

Here's a short clip on how this scam works;

For more info on how to avoid dangers lurking on Facebook, see PC world's article: How to Spot Facebook Scams

Think fraud! If not now, when?

Chase/WAMU foreclosure case dismissed; FL Judge finds fraud.

2010-08-19T14:37:31Z

Jacksonville homeowners Hank and Marilyn Pocopanni, along with their attorneys Chip and Patricia Parker of Parker & DuFresne were able to successfully prove what many homeowners have been claiming; their home was about to be stolen out from under them. The Pocopanni's were in danger of being wrongfully foreclosed and the banks were using fabricated documents to do so.

They provided "clear and convincing evidence of fraud" to a Duval County, Florida Judge who agreed! He found that WAMU, Chase Bank and the Florida law firm Shapiro & Fishman, (currently under investigation) were all guilty of attempting to commit fraud in his courtroom.

The banks claimed they owned the note and mortgage -- they didn't.
They were merely the servicers of the mortgage and neither WAMU or Chase had the right to foreclose...but that didn't stop them from trying.

The Judge would!

Not only did Judge Jean Johnson dismiss the case -with prejudice, not to be tried again, but the judge found that WAMU and Chase were guilty of knowingly committing fraud against Pocopanni's using his courtroom to do so. And that's something judges rarely like!

The Judge's complete ruling can be found below. Here are a few key findings;

10. The court finds Chase, WAMU, and CTX are without standing to pursue this foreclosure action. The Court further finds that Shapiro & Fishman, at all times material, filed the Complaint, the Assignment, and the Motion for Substitution with actual knowledge that the averments and representations made in those papers were false.

11. The court find by clear and convincing evidence that WAMU, Chase, and Shapiro and Fishman committed fraud on this court.

12. The Court finds that WAMU and Chase made representations to this Court during the course of the instant action that are known to be false. The Court also finds that Shapiro & Fishman had actual knowledge of the falsity of any averments and representations made on behalf of the current servicer of the Mortgage...

13.The court finds by clear and convincing evidence that these acts committed by WAMU, Chase and Shapiro & Fishman amount to a "knowing deception intended to prevent the defendants from discovery essential to defending the claim: and are therefore fraud.

See the full PDF findings: CASE NO.: 16-2008-CA-3989

Kudos to Judge Johnson, attorney Parker, the Pocopanni's and the other judges, attorneys, homeowners and activists that keep fighting against mortgage servicing fraud! If we can't expect to uphold the truth in our courtrooms, -then where? What will happen to our justice system if this type of fraud is allowed to continue?

Hopefully, more and more judges across the country, will continue to take a stand against fraud in their courtrooms and help put a stop illegal foreclosures.

There are plenty of wrongful foreclosures and mortgage servicing stories out there. Read here & here.

Never missed a mortgage payment --but facing a foreclosure!

2010-08-17T16:38:21Z

So, you think you have your mortgage covered...you make your payments on time, pay your taxes and insurance, and then somehow you get the dreaded foreclosure letter. How can that be? Watch the below video of a FOX 4 investigative report as they review complaints levied against one mortgage servicing company's tactics and what the state is (or isn't) doing about it.

A couple of short -but to the point, excerpts;
Image by Getty Images via @daylife

"...There is no dealing with this company (American Home Mortgage Servicing)," said shores. "I faxed. I called. I certified lettered. I did everything to everybody, including the tax office that this was deferred...including the original deferral affidavit and it was totally ignored."

Sound familiar? Read on...

Shores says the trouble started last year. The company that manages their mortgage account sent a notice stating her mother was delinquent on her property taxes. But Shores' mother, Helen Jordan had deferred her Dallas County property taxes, as Texas law allows for people over the age of 65. And she had written proof. But the mortgage servicer went ahead and paid the back taxes of $14,348.82 and demanded repayment.

and on...

Charles Smith says he is irate and at his wits end. He says he has never missed a mortgage payment yet he fears he could also lose his home because of delinquent taxes. Even though Smith has written proof from the county tax office that his taxes have been paid in full, he says his mortgage servicer set up an escrow account to cover the taxes. Then, the company nearly doubled his monthly payment. But he kept making his regular monthly payments.

Mortgage servicing complaints like the Smith's and Shores' continue to run rampant these days. I continue to hear from many homeowners, all asking the same question; How is this allowed to happen -and why isn't anyone doing anything to stop it?

Complaints of wrongful foreclosures, ransacked homes and the use of fabricated documents are on the rise. We all certainly hope someone with the necessary authority to do so, will step up and stop these widespread and unconscionable predatory practices! We need to hold those responsible for these crimes against homeowners, criminally accountable for the harm they've caused!
.

Internet Fraud Alert: Electronics Sales Scams

2010-08-13T13:18:58Z

So you're surfing the Internet when you spot a good deal on a popular electronic item. This could be an expensive cell phone, a PDA, or perhaps a TV set.

You contact the seller, who quotes you a very good price. Even with shipping charges and other fees, you stand to save a good bit of money by purchasing your new gadget from this person.

Image via CrunchBase

But once you pay for your new electronics, the seller either disappears or returns to claim that you must pay more money for some reason. The excuse could be taxes, added shipping charges, etc.

Unfortunately, you are probably being scammed. Con artists practice this type of Advance Fee Fraud every day. If you know how the scam works, though, you can protect yourself.

Many electronics scammers spam message boards, classified-ad Web sites, etc., with their offers. Their ads seem appealing because the prices are very low. This is your first warning sign: if something seems too good to believe, you should be very cautious. Scammers offer great deals because this tricks their victims into thinking about nothing but the wonderful bargain.

Next, the con artist will give you payment instructions. Some scammers like PayPal, because they've phished stolen accounts and have no moral dilemmas over cleaning out the accounts - and adding more funds through victims for greater profits.

Other scammers will pull the same con with phished bank accounts. If they've stolen online-banking passwords, they don't have too many problems withdrawing the cash that a victim transfers from his or her own bank account.

But many times, the scammer will ask for a Western Union or Money Gram payment. This is because the scammers know how to take advantage of the transfer services without leaving too many clues to their real identities. It's easy to anonymously retrieve a money transfer if you have the right information (such as a test question and answer).

Once you've paid an incredibly-low price for your new merchandise, the scammer either stops responding to any of your e-mails or comes back to tell you the bad news: you need to send more money. Many victims will gladly send more cash because they still believe that this is a very good deal. Even with the second money transfer, they're still getting a better deal than they would at Amazon, or a brick-and-mortar store. That's what the targeted victims tell themselves, anyway.

Here are the warning signs that the electronics salesman who's been e-mailing you about that neat new gadget is actually a scammer.

Often, a con artist:

• Uses a free e-mail account, like Yahoo! Mail or GMail. Legitimate sellers - other than individuals on eBay or Craigslist - typically have their own e-mail domains. This is true even of legitimate, honest sellers who don't have Web sites.

• Spams the Internet with messages about the sales. Many legitimate sellers are honest enough to not spam the World Wide Web. Scammers, on the other hand, bombard every message board, classified-ad site, and other such Web site they can find.

• Does not have an established web presence with a secure and verified Web site. Some scammers do have very nice-looking sites, so don't stop suspecting a scam just because the "salesman" directs you to a site. But most reputable sellers have Web sites. Not having one is a good sign of a scammer.

• Offers deals that are too great to believe. If you think that you can find a new Apple iPhone for a hundred fifty bucks, you need to seriously consider the source of this bargain. This is particularly true if any of the other warning signs are present.

• Insists on receiving money through Western Union or Money Gram. Huge red flag! Many legitimate sellers understand that their buyers want reassurance and anti-fraud protection. The money-transfer services listed above do not offer either of these things.

• Rushes you through the whole process. Scammers have to hurry for several reasons. One is that, if their free e-mail accounts are reported for fraudulent activities, the providers will close the boxes. Another is that, if the scammers are using stolen PayPal or bank accounts, they're racing to grab as much cash as possible before the accounts are closed or they're locked out.

You should also know that not all electronics scammers target message boards and other such sites. Some look for victims at online auctions or community sites like Craigslist.

If you still aren't sure if the person who is e-mailing you is a scammer or an honest seller, you might ask an innocent-sounding question about the electronics that the person is trying to sell. The person's answer can confirm his or her intentions.

One example is to ask about a nonexistent feature for a certain cell phone. Make up something that is not possible for any cell phone to have, such as a "telekinetic touch pad." If the seller reassures you that the model you want to buy has this feature, you can be sure that he or she is scamming you.

Another tactic is to search the Internet for the seller's e-mail address. Not all scammer addresses end up on anti-scam sites, but many do. If you find your "seller's" address listed on one of these sites, the odds are very good that he or she is, in fact, a con artist.

The simplest way to prevent scamming, and avoid becoming a scam victim, however, is to shop at reputable Web sites. You won't often find mind-blowing deals on today's hottest electronics at these sites, but you do know that you'll actually receive your new MP3 player or cell phone. You also have the benefit of being able to pay with your credit card, which offers buyer protection.

If you think about the offers that you receive before you hand over any money, you can find many of the problems and, in most cases, keep yourself from being scammed. It's better to let a very great deal on a new cell phone go than it is to go ahead with a deal you do not quite trust and end up losing your money in the end.

For more info on some of the most popular scams see:What you need to know about Advance Fee Fraud.

Wells Fargo ordered to pay $203 Million in restitution for overdraft fee practices

2010-08-11T19:57:05Z

In a class action lawsuit brought by California consumers claiming that Wells Fargo Bank manipulated its processing of customer debit card purchases to maximize overdraft fees, U.S. District Court Judge William Alsup held in a 90-page opinion that Wells Fargo violated California law. (Court's finding in PDF)

Instead of posting each transaction chronologically, the evidence presented at trial showed that Wells Fargo deducted the largest charges first, drawing down available balances more rapidly and triggering a higher volume of overdraft fees.

Image via Wikipedia

Commenting on the Court's decision, lead trial attorney Richard M. Heimann stated in part:

"Today, a federal court enjoined Wells Fargo from continuing its practice of manipulating their customers' accounts for the sole purpose of generating massive bank fees. These unfair practices cost California consumers huge amounts of money, and we are pleased that the Court has ordered Wells Fargo to return $203 million of its ill-gotten gains to its customers.
We are grateful for the opportunity to try this case in order to successfully reveal that the bank's true motives behind its overdraft bookkeeping were profiteering and the gouging of its customers. Wells Fargo's after the fact excuses were soundly rejected by the Court, and rightfully so, as it not only never made an honest effort to disclose its true practices to its supposedly valued customers, but worse yet, misled them.
This is not only an actual victory for Wells Fargo customers, but a symbolic victory for consumers throughout the country who are subjected to these kinds of oppressive business practices."

To find more info on lawsuits aimed at stopping unfair overdraft fee practices visit: http://www.bank-overdraft.com

Florida AG Investigates Foreclosure Mill Law Firms

2010-08-10T23:50:09Z

TALLAHASSEE, FL - Attorney General Bill McCollum today announced his office has launched three new investigations into allegations of unfair and deceptive actions by Florida law firms handling foreclosure cases. The Attorney General's Economic Crimes Division is investigating whether improper documentation may have been created and filed with Florida courts to speed up foreclosure processes, potentially without the knowledge or consent of the homeowners involved.

The new investigations name;
The Law Offices of Marshall C. Watson, P.A.;
Shapiro & Fishman, LLP;
Law Offices of David J. Stern, P.A.

The law firms were hired by loan servicers to begin foreclosure proceedings when consumers were in arrears on their mortgages.

Because many mortgages have been bought and sold by different institutions multiple times, key paperwork involved in the process to obtain foreclosure judgments is often missing. On numerous occasions, allegedly fabricated documents have been presented to the courts in foreclosure actions to obtain final judgments against homeowners.

Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of the law firms under investigation.

The Attorney General's Office is also investigating whether the law firms have created affiliated companies outside the United States where the allegedly false documents are being prepared and then submitted to the law firms for use.

Subpoenas have been served on each of the law firms listed above, and the investigations are ongoing.

See earlier blogs;

A MUST read for ANYONE facing foreclosure or dealing with a Mortgage Servicer

Judge delays foreclosure; citing inappropriate paperwork...Note separated from loan

The latest update: Chase/WaMu case dismissed; FL Judge finds fraud.

Scam Alert: Zappos "Order Confirmation" email is a Scam

2010-08-09T20:48:20Z

Quick scam alert...DO NOT FALL FOR the latest email scam circulating. It arrives as an order confirmation from ZAPPOS and though it appears to look very authentic -it's anything but. The email includes ZAPPOS' official phone number and logo and it also includes a few infected links that the scammers hope you will click on. When clicked on you will undoubtedly download malicious spyware onto your computer.

The phony order confirmation comes as a receipt for merchandise totaling $928.00 and allows you to click on links and pictures in the email for additional info.

Do not click on any links or pictures.

The email looks very legit but if you received this phishing email, delete it immediately.

If you received it and already clicked on the links - update your virus protection, run a full scan on your computer and dump all data you may have in your cache.

Today there are all sorts of cyber predators and con artists who spend their time creating ways to scam you. What's the best way to avoid falling victim to their tricks or traps?
Be wise to them!

College Students at High Risk for Identity Theft

2010-08-09T15:52:32Z

Since July 2009, an estimated 72 data breaches in 30 states have been reported, according to Privacy Rights Clearinghouse. Privacy Right's web site shows that in approximately 88 percent of these instances, a student or individual's SSN was exposed. These figures are based on "reported" data breaches, and not the actual number of affected people affected by any particular breach of data.

Image via Wikipedia

College students nationwide can be especially vulnerable to identity theft because they often give out personally identifiable information; some universities have even been known to use a student's Social Security number (SSN) as their student identification number, sometimes displayed on a student ID card. Over the last year, Privacy Rights Clearinghouse (PRC) estimates that more than one million students, alumni and faculty have been affected by a data loss, or breach, of personal information.

Personal information can be breached in various ways, including hackers gaining unlawful access to computer files containing student information (even SSNs), or a dishonest or disgruntled university employee obtaining computer files containing sensitive records and then selling the records to savvy identity thieves.

LifeLock recommends individuals who have been informed of a potential breach of personally identifiable information should;

    * Do your research - find out what information has been compromised. This will help you identify the risks associated and the best next steps

    * Consider utilizing an ID theft protection service - Services such as the advanced LifeLock Command Center protection suite offers members LifeLock Personal Breach Detection service, which actively monitors unregulated global networks for your identity information. If they find you are at risk, they will alert you by e-mail and help protect you against accidental personal information disclosures, not just from your personal computer, but many other computers that may store your personal information and participate in peer-to-peer file-sharing

    * Place a fraud alert - Contact one of the three credit bureaus to place a fraud alert on your credit. You will only need to contact one, and then that bureau will contact the other two on your behalf. With a fraud alert in place, creditors should be notified that you are concerned about identity theft when they receive a new application, helping to stop the extension of credit in your name to a thief

    * Repeat as needed - You can renew your fraud alert every 90 days. It is important to note that you will need to renew in order for it to stay in effect. (You may also remove a fraud alert at any time.)

    * Request your free credit report - Do this as soon as possible so that you are able to see evidence of an identity theft appear on your credit report, should one exist.

Universities or colleges nationwide looking to educate faculty and students on how to better protect their personal information and help avoid personal identifying information from being breached can take advantage of the LifeLock Speakers Series program. The Speakers Series is a free educational program targeted toward schools, businesses, and other organizations. For more information or to schedule a Speakers Series presentation, please visit Free Identity Theft Education.

It is probably no surprise to parents that identity theft continues to be the fastest growing type of fraud. But what may surprise students and parents alike -is that people in the 18 to 29 age range are the fastest growing group of victims. MORE

Sources:
Privacy Rights Clearing House
LifeLock.com
PublicOpinionOnline.com

At&T Mobility vs. Concepcion Case; The fate of consumer and employee class actions to be decided by U.S. Supreme Court

2010-08-06T16:59:29Z

The fate of consumer and employee class actions will rest in the hands of the Supreme Court this November. In AT&T v. Concepcion, the U.S. Supreme Court will decide whether corporations can ban class actions in the fine print of their contracts with consumers and employees.

Will the Supreme Court Issue a Wildly Activist Decision in AT&T Mobility v. Concepcion?

By Paul Bland, Claire Prestel, and Melanie Hirsch

Image via Wikipedia

The consumer and civil rights communities are closely watching AT&T Mobility v. Concepcion, a case that will be argued in the Supreme Court this November. Depending on how broadly the Court reads the question presented in Concepcion, the case could decide the fate of consumer and employee class actions for years to come.

The Corporate Abuse at the Heart of Concepcion

The Concepcion case involves the widespread corporate practice of using standard-form contracts to ban class actions. Many state courts have held such class-action bans unenforceable, but AT&T Mobility ("ATTM") has asked the Supreme Court to find that at least some of that state law is preempted by the Federal Arbitration Act ("FAA"). To understand why the Court's holding in Concepcion could be so significant, it is important to understand how class-action bans come to be and why they are often disastrous for consumers and employees.

Class-action bans are contract terms that purport to prevent consumers and employees from ever participating in class proceedings. As in Concepcion, they are often buried in companies' standardized arbitration clauses. Class-action bans favor companies at consumers' and employees' expense, but companies can impose them unilaterally because they draft the contracts. Consumers and employees rarely have time to read the lengthy agreements companies send them, let alone the ability to understand their dense legalese. And even if they did, few consumers or employees could negotiate the contracts' terms.

Companies love imposing class-action bans because they dramatically undermine enforcement of consumer- and employee-protection laws. Unlike European countries which mostly rely on large and powerful government agencies to enforce consumer protection and civil rights laws, the U.S. has relatively small government agencies which handle relatively few cases. Most enforcement of these laws in the U.S. is done by private parties. We rely upon individual consumers or employees who've been cheated or discriminated against to bring cases enforcing these laws. Many types of illegal behavior can be addressed through individual cases by a single consumer. But the reality is that many types of illegal behavior that harm very large numbers of people - thousands, sometimes hundreds of thousands of individuals - can only be meaningfully addressed through class actions.

In many circumstances, very few individuals would ever bring a claim (in court, or in a small claims court, or in arbitration) when their rights are violated. For a huge percentage of the population, for many types of illegal activities there are realistic barriers to individuals bringing cases on their own. Many people never realize when their rights are violated, for example, and many people do not have the knowledge or skills to begin to pursue a case to protect their rights. For those who know to seek out a lawyer, very few lawyers will handle cases that are quite small, and few if any lawyers will handle fairly complex cases that involve only a few thousand dollars.

These are only a few examples of situations where the realistic situation is that a case will either be handled on a class action basis or it will never be brought at all.

This is why large corporations are hoping that the Concepcion case will wipe away most class actions - because they want to make it impossible for the vast majority of cheated consumers and employees who've suffered discrimination to bring any kind of case, in any forum. The idea is to atomize individuals, to prevent them from grouping together in a way that lets them enforce these rights.

WILL CONCEPCION BE SIGNIFICANT?

In the worst case scenario, Concepcion could wipe away the vast majority of consumer and employee class actions for years to come. But that result is far from inevitable. For one thing, ATTM submitted a narrow question in its petition for certiorari, and if the Court sticks to the question presented (as it should), then the decision may not have much significance. On the merits, if the Court agrees with the overwhelming majority of lower courts, which have held that state law in this area is not preempted, then the decision should not have much significance. Indeed, if the Court simply applies the language of the FAA, and doesn't invent new rules of federal law for the purpose of wiping away state law, then the decision should not be significant at all.

If many members of the corporate defense bar get the Court to use this case to grant their fondest wishes for immunity from consumer protection and civil rights laws granted, however, then this case could have the kind of impact on class actions that an asteroid landing in Mexico millions of years ago had on dinosaurs.

For the Court to Wipe Away Consumer and Employee Class Actions, It Will Have to Ignore ATTM's Question Presented.

Most cases, including Concepcion, get to the Supreme Court because the party that lost below files a petition for certiorari, presenting specific questions for the Court to review. In Concepcion, ATTM took care to draft a narrowly worded question. Essentially ATTM asked: does the FAA preempt state law prohibiting class-action bans in those cases where class actions are unnecessary for the effective vindication of consumer and employee rights?

This question may sound convoluted, and it is. The last part asks the Court to assume that individual consumers and employees can vindicate their legal rights without a class action. It's striking that ATTM asks the Court to begin with this assumption as though it were an uncontroversial and obvious abstract legal principle instead of a factual issue to be resolved on a case-by-case basis in light of actual admissible.2 In any event, if the Court limits its holding in Concepcion to the question presented, then whatever that holding is, it should not apply whenever class actions are necessary for the effective vindication of statutes aimed at protecting consumer and employee rights.

But notwithstanding ATTM's narrowly worded question, some of its corporate allies (and particularly the U.S. Chamber of Commerce) are claiming that Concepcion raises the issue of whether the FAA preempts any and all state law that would limit class-action bans embedded in arbitration clauses--regardless of whether consumers and employees have other adequate avenues for vindicating their rights. These ATTM allies argue that it does not matter what the evidence in a case would show, that it does not matter what the state law at issue says, and that there is simply a federal right for any corporation to put in any contract a term that bans class actions (so long as the contract includes an arbitration clause).

It's unlikely that the Supreme Court will be tempted to take such an extreme position. But at this point, it is clear that advocates for unlimited corporate power hope and imagine that the U.S. Supreme Court will strip state law in this way. And it's clear that a lot of corporate defense lawyers privately believe that the Court is so definitively in their clients' collective pocket that companies can get whatever they want from this case. I've heard several defense lawyers privately predict a 5-4 ruling that wipes away the vast majority of class actions in America, and I know of several cases that had been in mediation, where the evidence of liability is overwhelming and the only barrier to a recovery for the consumers was a class action ban that's unenforceable or probably unenforceable under state law, where defendants have walked away from the settlement table because they suddenly believe that the Court will uphold class-action bans in all cases and immunize them from any meaningful liability.

You have to hand it to the tort reforming corporate apologists: they are asking the Court to issue a decision that would be an immediate candidate for Most Activist Decision Ever.

READ article in its entirety at CL&P Blog

Andy Kroll Exclusive; A MUST read for ANYONE facing Foreclosure or dealing with a Mortgage Servicer

2010-08-05T14:22:38Z

Mother Jones reporter Andy Kroll has done homeowners across this country a great justice in his latest and greatest investigative piece. It's a MUST read for attorneys, judges and anyone who has a home, had a home, is considering buying a home or even lives in one! His EXCLUSIVE: Fannie and Freddie's Foreclosure Barons; How the federal housing agencies--and some of the biggest bailed-out banks--are helping shady lawyers make millions by pushing families out of their homes VALIDATES (with links to follow the paper trail) what many innocent homeowners have been screaming about for years!

A few short EXCERPTS: (**Scroll down to read important Fannie/servicing update!)

LATE ONE NIGHT IN February 2009, Ariane Ice sat poring over records on the website of Florida's Palm Beach County. She'd been at it for weeks, forsaking sleep to sift through thousands of legal documents. She and her husband, Tom, an attorney, ran a boutique foreclosure defense firm called Ice Legal. Now they were up against one of Florida's biggest foreclosure law firms: Founded by multimillionaire attorney David J. Stern, it controlled one-fifth of the state's booming market in foreclosure-related services. Ice had a strong hunch that Stern's operation was up to something, and that night she found her smoking gun.

It involved something called an "assignment of mortgage," the document that certifies who owns the property and is thus entitled to foreclose on it. Especially these days, the assignment is key evidence in a foreclosure case: With so many loans having been bought, sold, securitized, and traded, establishing who owns the mortgage is hardly a trivial matter. It frequently requires months of sleuthing in order to untangle the web of banks, brokers, and investors, among others. By law, a firm must execute (complete, sign, and notarize) an assignment before attempting to seize somebody's home.

A Florida notary's stamp is valid for four years, and its expiration date is visible on the imprint. But here in front of Ice were dozens of assignments notarized with stamps that hadn't even existed until months--in some cases nearly a year--after the foreclosures were filed. Which meant Stern's people were foreclosing first and doing their legal paperwork later. In effect, it also meant they were lying to the court--an act that could get a lawyer disbarred or even prosecuted. "There's no question that it's pervasive," says Tom Ice of the backdated documents--nearly two dozen of which were verified by Mother Jones. "We've found tons of them." MORE

"...Stern's company is one of dozens of mills that now churn through more than a million cases a year for Fannie and Freddie, big banks, and private lenders. Built like industrial assembly lines, the mills employ small armies of paralegals and other low-level employees who mass-produce court filings, run title searches, and schedule scores of hearings and property auctions daily..."

"...The business model is simple: to tear through cases as quickly as possible. (Stern's company handled 70,382 foreclosures in 2009 alone.) This breakneck pace stems from how the mills get paid. Rather than billing hourly, they receive a predetermined flat fee for the foreclosure--typically around $1,000--plus add-ons for each of the related services. The more they foreclose, the more they make. As a result, consumer attorneys and legal experts say, even families who have been foreclosed upon illegally--and who can afford to make good on their mortgages--end up getting steamrolled. "It's 'How fast can I turn this file?'" says Ira Rheingold, executive director of the National Association of Consumer Advocates in Washington, DC. "For these guys, the law is irrelevant, the process is irrelevant, the substance is irrelevant."

Be sure to read the article in its entirety, and find links to follow the paper trail: Mother Jones

MORE Mortgage servicing news;

IMPORTANT UPDATE ** FannieLimitsOutsourcing.pdf
No more back-office processing fees - Fannie now limits to $25/file; (Stern
booking $1,500), no more REO companies, no more title companies.
Legal fees only go to lawyers

BOMBSHELL- CLASS ACTION OPEN FOR EVERY CONSUMER WHO HAS BEEN SUED BY DAVID J. STERN
From Matt Weidner Law

A lawsuit was just filed against the Law Offices of David J. Stern, David J. Stern individually and MERSCorp. The lawsuit is stunning both in the allegations made and the detail that describes the collapse of the entire American financial markets and widespread the destruction of property rights across this country.

More will be detailed about this lawsuit in months to come. For now, I encourage everyone to read this lawsuit carefully and share this lawsuit with judges, reporters and policy makers. The lawsuit articulates many of the suspicions and the greatest fears held by many but who are unable to put those fears into words. I give real credit to the courageous attorney who took on this effort and encourage all those who are in the fight to protect and defend our courts to support this effort. Stern Class Action

WILL THIS BE ONE OF THE LAST SHOES TO DROP?
From MSFraud.org

California is following in the footsteps of Tennessee. Recent Sup. Ct. rulings held that MERS is not the holder in due course (real party in interest) of any property and never was. This can have devastating repercussions for the mortgage industry, not just MERS, because there is no valid chain of title. People who are being foreclosed upon, or have been foreclosed upon, now have an equitable remedy. These people should now be able to win in court and have their mortgage nightmares settled. Some people are able to keep their homes, as banks fear losing far more in class-action suits. Now California is getting in on the action and suing MERS for filing false records in every county in the state since MERS began over 10 years ago.

Carrying a possible fine of $5-$10K a pop, this could amount to millions and possibly billions of dollars in penalties against MERS. This is money the counties desperately need.

This could mean that anyone with a mortgage may have it immediately settled and the true owner will get the title free and clear due to fraud, which has no statute of limitation. Lawful owners will have recourse to sue for fraudulent foreclosure. Let's see what happens.
Read the complaint...

Treasury Used Bogus Info in Report to Homeowners
from Richard Zombeck,

EXCERPT from Huffington Post:

"...While I was in D.C. in April at Treasury, Diana Farrell, Deputy Director of the National Economic Council briefly mentioned the administration's "successful" programs, referring to HAMP, Making Home Affordable, and similar programs designed to address the mortgage fiasco.

I asked her why the administration continues to see these programs as a success when the only point of reference they use to gauge the performance is the bank's own reporting of their progress. She then directed me to the progress reports on financialstability.gov - the same reports Treasury is now reporting as flawed.

"Those reports are crap; I've seen them," I said in response, "Why aren't you talking to the homeowners and people whose loans have been supposedly modified. Why isn't there any oversight or verification?"

I didn't get a direct response. Instead she looked to her colleagues in the back of the room and said, "We'll take that under advisement," and moved to the next question in the room.
So while Treasury was taking the word of criminals in the banking and servicing industry - allowing them to report on their own progress, the very organization that caused the meltdown by gobbling up all the toxic mortgages it could is providing status reports that essentially cover up the program's utter failure.
There are some painfully obvious reasons why these modifications are re-defaulting: A large number of the modifications don't offer any real relief at all. Many homeowners have found themselves owing more principal on the loan than they did before. Others have been offered lower payments amounting to no more than $60 in savings per month - hardly an incentive to stay in a home that's lost 30-40 percent of its value and is more than likely to lose another 30 percent in the coming two years.
It's not like the information isn't out there...MORE

ALSO see;

Serving Your Country? Bank of America Wants Your House...At Any Cost.

Keep informed of the latest mortgage servicing news

Read consumer stories here and here!

Latest Identity Theft Scam Targets Childrens' Social Security Numbers

2010-08-04T14:20:51Z

As parents we strive to keep our kids safe at all times. They depend on us to protect them from all sorts of predators. Unfortunately, scammers continue to make that job increasingly difficult.

We often hear about identity theft and the many costs, frustrations and h

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eadaches it causes for its (presumably adult) victims. The daily newspapers are filled with headlines about data thefts that serve as constant reminders that we are not in total control of our identities and that everyone on the planet is at risk -even kids still in diapers.

Federal Authorities are warning of a scheme devised to target Social Security numbers of children. The scam was detected while uncovering a mortgage fraud scam that utilized the SSN's of kids. In this latest scheme, online fly-by-night businesses are using computers to seek, and then sell, dormant Social Security numbers, usually assigned to children who have clean credit profiles.

Sellers are referring to the Social Security numbers as "CPNs", which stand for credit profile, credit protection or credit privacy numbers -and marketing them to people looking to recreate their credit rating and raise their declining credit scores.

Because the Social Security Administration does not yet have a system to tie names, ages and genders to social security numbers, thieves are able to manipulate the identities of children and use them to their advantage. Only you can impede them.

Watch the below video to see how the latest scheme works;

Kids of any age make perfect targets for identity thieves since the theft of a child's identity can go undetected for a long period of time. Often, the theft isn't discovered until a young adult is denied a student loan, credit or employment. That's when they find out their credit rating and reputation has been trashed.

What can parents do to protect their children?

1. Contact the Social Security Administration annually to request a work history for your child's social security number. Sounds crazy, but what you are looking to find a blank work history.

2. If your children receive junk mail or offers for credit from lenders or credit card companies, this could be a red flag that someone is using their identity.

3. Talk to your teens and tweens about the dangers of identity theft and scams, and what can happen when they divulge too much information on social networking sites.

4. Be cautious with your child's SSN. Always ask why an association, organization or business needs the SSN prior to releasing it.

5. Consider engaging an identity theft protection service that specifically monitors your child's identity.

Remember, when it comes to identity theft, it's what you don't know that will absolutely hurt you! Take the necessary safeguards now to ensure your children have a clean and accurate credit rating when they venture into adulthood. Remember PB&K...(Protect your butt -& your kids!)

Think fraud! If not now, when?

Denise Richardson

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August 22-25, 2010Image via Wikipedia Hilton Salt Lake City Center Salt Lake City, UT

Class Action filed against mortgage companies and foreclosure attorneys; Seeking return of homes and punitive damages...

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Never missed a mortgage payment --but facing a foreclosure!

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At&T Mobility vs. Concepcion Case; The fate of consumer and employee class actions to be decided by U.S. Supreme Court

Andy Kroll Exclusive; A MUST read for ANYONE facing Foreclosure or dealing with a Mortgage Servicer

Latest Identity Theft Scam Targets Childrens' Social Security Numbers

Victim to Victorious!...
The Journey Continues

August 22-25, 2010
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Hilton Salt Lake City Center
Salt Lake City, UT