This lawsuit reveals to the public what many of us have been saying for the last few years. Finally, in the main headlines of the major news outlets can homeowners can read for themselves the fraud perpetrated on investors and clients of banks such as Goldman. If these crooks would deceive their own clients imagine the lack of care they show to common homeowners.
Bottom Line: There is a HIGH chance your mortgage has default insurance. You need to know whether you are the beneficiary of some part of it.
Jeff Barnes’ article below does a great job of pointing this out.
- The Bank Slayer
THE REAL UPSHOT OF THE SEC LAWSUIT AGAINST GOLDMAN SACHS AND WHAT IT MEANS FOR FORECLOSURE DEFENSE CASES GOING FORWARD
April 20, 2010
Unless you live in a cave, you have obviously been made aware of the lawsuit filed by the Securities and Exchange Commission against Goldman Sachs claiming fraud in connection with the formation of securities “backed” by mortgage loans which were destined to fail. As such and finally, the public is being made aware of what we have known about and have been litigating and presenting to the courts for going on three years now. What is not being openly discussed, however, is the upshot of what this means for foreclosure defense practice, although the Wall Street Journal article of April 19, 2010 on the issue hinted at it.
The Journal made specific mention of the fact that those who created the securities which were based on mortgages destined to fail purchased “insurances”, including credit default swaps, against the failures so that when the failures did occur, big bucks came to those who created the problem. These “insurances” are those which we have been asking for in discovery in our cases around the country, and include excess interest reserves, lender-placed insurance policies, bankruptcy bonds, and other policies taken out by the securitized mortgage loan trusts so that in the event of default, the loan would be paid so that those who purchased the mortgage-backed securities would continue to receive the benefits of their investment. The securitized trust prospectuses, which are available on the SEC’s webiste, set forth the various types of insurances and credit enhancements and state that they are for the purpose of, among other things, “payment of defaulted loans.”
Obviously the borrower was a direct beneficiary of such insurances, and in many instances, the premiums for these insurances were funded from line-item charges paid by the borrower at the closing for loans which were either pre-sold or otherwise destined for securitization. You really don’t think that those who created these trusts were going to spend their own money for the insurance premiums, do you? It was OPM all along.
What the Journal and the lawsuit also did not discuss is the fact that practically all of the securitized mortgage loan trusts have the same structure, whether created by American Home Mortgage, Bear Stearns, Deutsche Bank, or whoever. Even a cursory examination of a few of the trust prospectuses will reveal this incredible boilerplate.
This revelation by the SEC comes on the heels of the abominable decision from Virginia which simply turned a blind eye to everything that is in the 22-page SEC Complaint and the realities of securitization of mortgages. Now that the process, horrors, and realities of securitization have finally been made public, the Courts will have powerful ammunition to examine the veracity of any “default” claimed by a servicer, trustee of a securitized mortgage loan trust, or alleged “successor” to the loan.
There will obviously be more on this to come.
Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com
An “octopus wrapped around the face of humanity” as one journalist put it; the New World Banking Order has arrived. In 2009 speculative, uncontrolled derivatives were the Worlds largest market at an estimated 600 Trillion. The Worlds total economic output was an estimated 58.07 Trillion and the total World bond market was an estimated 82.2 Trillion. Yet, there is no “crime” that the bankers can be charged with as they bankrupt citizens and Nations into the New World Order?
The appropriate criminal charge should be Treason to the American People and our Democratic Republic and Constitution. The members of the Trilateral Commission and the Bilderberg Group in government and banking who conspired to overthrow our soverenity as an independent nation, who conspired to bankrupt our Treasury with three unjust Wars and multinational corporate “rolling” bailouts, conspired to control mass media “free Press” propaganda, conspired and manipulated “financial crisis” for their own gain, conspired to “relocate” American manufacturing/industry and technology, conspired to offshore “American Income Tax”, and who have conspired to enslave American citizens with National debt (about $64,000 per citizen) and personal debt. Deserve the death sentence by firing squad for Treason.
Obama, your New World Order is Totalitarian and we Patriots, American free citizens, will fight for our Democracy, Independence and Freedom.
I am presently in litigation with Fremont Reorganizing, Goldman Sachs dba Litton Loan Servicing, et al., (2 different cases) for about 2 years now. The main issue with the complaint is a fraudulent loan originated by Fremont in June 2006. This in turn produced an array of other
issues: unsigned deed of trust, over billing issues, lost payments, excessive balloon payment, back dated assignments, illegal non-judicial foreclosure documentation, missing documentation, illegally reporting to my credit, falsifying declarations, 6 week TRO’s, court procedures not followed, judges wait until the courtroom is cleared to rule against a TRO (both times); retired (78 year old) judge ruled against a seated judges TRO where the retired judge took 30 minutes to read a 300 page brief. The whole time they have been ignoring my request and failing to give me the required documentation so that I can rescind the loan. Goldman Sachs dba Litton Loan Servicing has been aggressively trying to foreclose on my property. I believe to cash out for insurance reasons. (It’s over a million dollar loan) I have invested over $400,000 into this property for the past 5 years and if I had known about this mortgage meltdown game played by Wall Street I would have never proceeded with this Real Estate transaction. The Media and the Government has not once addressed or helped the borrower, namely me, who also has been damaged by these defaulted CDO’s.
A Time line of what’s going on with Goldman Sachs to show how they are scheming to pursue foreclosures for the insurance by acquiring distressed, shelled fraudulent companies which will eventually or haven’t already gone broke.
Oct 26, 2005 Litton Loan Servicing Class Action – mishandling loans, servicing over 400,000 borrowers – case settled Feb 17, 2009 for $537 (limited due to class status)
Feb 27, 2007 FDIC Cease and Desist – Fremont Reorganizing for illegal loan practices, et al., (largest predatory lenders who heavily solicited brokers for their schemes)
Oct 16, 2007 Massachusetts Lawsuit vs Fremont and Goldman Sachs – Predatory Lending Practices – settled May 11, 2009 for $60 mil
Dec 11, 2007 – Goldman Sachs Acquires Litton Loan Servicing
June 2, 2008 Litton (Goldman Sachs) Acquires Fremont Reorganizing Servicing Rights
June 19, 2008 Fremont Reorganizing files Bankruptcy
Apr 16, 2010 – SEC vs Goldman Sachs – Securities Fraud
Here is the link to my blog http://bushnellcomplaint.blogspot.com/ if you want to download court documents pertaining to my case.
Note: My wife is pursuing individuals who are interested in joining her in a class action lawsuit with regards to violation of her community property rights in a wrongful foreclosure. If you are in a community property state and a spouse is not on title you may have grounds