It all started early last Saturday morning when I got a call about a homeowner in Massachusetts scheduled to lose her home to foreclosure sale in just two days…

Now, I don’t mind telling you that I had just posted a DOERS ALERT the day before, and to be honest they’re all a lot of work and I really didn’t want to have to write another one the very next day… I was exhausted and looking forward to sleeping for the next couple days.

The client’s name was Lisa Ferrecchia, who I was told was one of the thalidomide babies. At the time, I did’t know if that meant she was part of a sister singing trio… you know… The Thalidomide Babies,” or what, but I’d soon find out.

So, I read about thalidomide and OneWest Bank most of the day and then started writing a DOER ALERT, which was finally ready to post at about 5:30 PM on Sunday afternoon.  I was beyond tired and feeling kind of awful, if you must know.  I hadn’t been outside of my study for yet another weekend straight… my wife wasn’t saying anything, and my daughter was saying she missed me.  But what could I do?  I mean, seriously?  Lisa Ferrecchia’s home was to be sold the very next day at 3:00 PM in Massachusetts.

Plus, in Massachusetts, do you know how they do it?  They auction the home off right on the soon to be ex-homeowner’s front lawn, for all to see.  I’ll tell you what… that is some 17th century nonsense right there.  As in… Me thinketh she is a witch!  Aye, a witch!  Might as well be making the homeowner walk around with a scarlet ‘F’ on his or her clothing.  I figured that Lisa had probably spent a lifetime seeing people stare at her, and the thought of her home being auctioned off in front of her neighbors… well… that just was not going to happen.  Not today.

I had spoken to attorney Glenn Russell early on Saturday, and told him to have a skeletal bankruptcy filing ready just in case.  I had just spent the whole weekend behind closed doors in my study typing and posting at 5:35 PM on Sunday, I wasn’t at all sure my DOERS would DO it in time… or even could DO it in time.  And if that was the case… why the heck did I just blow the whole weekend with my family… again.  I was conflicted and unsure of everything.

To make matters even worse…  and I wouldn’t normally share this publicly… but Steve Diberrt of MFI Miami called me on Sunday evening… he was in Denver for something foreclosure-related.  He had read my DOER ALERT post and asked me what I was doing about Lisa Ferrecchia.  I said I posted a DOER ALERT and my DOERS would handle it.  He asked if I had called Glenn Russell and if Glenn was going to file a TRO, etc. etc. to stop the next day’s sale. He asked a bunch of other technical legal questions until I had a headache.

I said there wasn’t time for any of that, but my DOERS would handle it.  He wasn’t buying any of it.  I said, don’t worry… I’m sure it’ll be fine.

And he replied: “Dude, I think your nuts.  I’ll call Glenn and find out  what else can be done.”  He hung up.

“Oh, ye-of-little-faith-shithead,” I thought to myself.  

We all know what happened next, right?  OneWest Bank’s CEO emailed me late on Sunday night saying that he’d look into the situation the next morning… and the next morning OneWest contacted Lisa… told her that the sale had already been postponed… and that they’d do everything they could to get her a loan modification that would allow her to keep her home.  I wrote to tell everyone the good news, and said that I was certain that OneWest Bank would do exactly what they had promised.  Of course, not everyone was sure whether I was kidding… I was right… or I was a fruit loop.

One West said that they would let Lisa know by today… Tuesday, February 7, 2012.  And so here we are…

OneWest Bank Called Today and Lisa Just Couldn’t Be Happier!  

Yes, ladies and gentlemen, it’s a HAMP modification… 2 percent for 40 years.

Her mortgage payment went from $2700 and change… to $1500 and change.  

~~~

DOERS you DID it again!

(Hey, Dibert… how do you like me now?)

Mandelman out.

Hey DOERS… Good News Once Again, this time for

Tom Stover & Jeneane Traynor-Stover

(And that would be 8 out of 8 for the DOERS… but who’s counting?) 

Ooops, you did it again!  Yes, it’s true… Wells Fargo contacted Tom and Jeneane up in Granite Bay, California mid-day today to let them know that their SALE DATE of February 3, 2012 HAS BEEN POSTPONED.  This was the DOER ALERT posted late in the day last Friday, and today is Tuesday, so even though it wasn’t handled within 24 hours as we’ve gotten used to… I can live with 48 hours too.  (I don’t like it, but I can live with it… LOL.)

The truth is that although I did see that some DOERS sent emails in response to the ALERT on Friday, there weren’t nearly enough.  And then when we didn’t hear anything from Wells yesterday, Jeneane called me and mentioned that she thought that maybe the DOER ALERT got lost in people’s inboxes as a result of being posted late on Friday.

So, I reposted it yesterday and last night I sent out about 100 emails to DOERS, and sure enough… a lot more emails started flying towards Wells… and by today at 11:00 AM… it was a brand new day for Jeneane and Tom.  See how that works?  DOERS have got to stay up on this… you promised to for 120 days, right?  And I’ll try not to post late on Fridays… deal?  Cool.

Here’s the email I received from Jeneane at 11:00 AM today.

Dear Mandelman and the DOERS…

I wanted to let you know asap that I received a call from Michael Berg from the executive office of complaints at Wells Fargo.  He was very nice, the first thing he said was the sale was postponed and he is my single point of contact and he is getting a package out to me today and when I receive it tomorrow he wants me to call him back to go over it.    

WOW, that was great, you really are doing an amazing job at getting results, I will keep you posted!

You are a lifesaver, or shall I say a family saver, I do realized that there is not guarantee of a loan modification, but just being given the consideration of being informed is all I asked for!

Thanks again,  

Jeneane

Okay, well now that Wells has stopped the clock on the sale date… I for one have all the confidence in the world that Wells Fargo will find a way to modify this loan so Tom, Jeneane and their beautiful daughter will be able to stay in their home with payments they can afford.  And I’m sure all of our prayers are with Tom that he fully recover so he can get back to work on a full-time basis soon.

Thank you to all the DOERS who helped DO this! But there still aren’t enough of you DOING what you promised you would DO.  If we want to be able to affect bigger issues… national issues… then everyone’s going to have to turn up their game… get with the program… start taking this more seriously and continue spreading the word.

Sorry… it’s work I know.  But it’s not that much work.  You should all be very proud of what we’ve accomplished together and over a very short period of time… so you should be talking about it everyone you know… bragging even.

Stay tuned… unfortunately there are more DOER AlERTS to come!

Mandelman & Field OUT!

~~~

OFFICIAL DOER STATEMENT OF PURPOSE

BY MARTIN ANDELMAN & ABIGAIL FIELD

We, Mandelman & Field, are joining forces to end the foreclosure crisis. We’ve been writing about the crisis—Mandelman for more than three years and 600+ articles, Field for about half that—but frankly, writing’s not enough.

We need to DO more to solve the massive crisis our country is enduring. We must act now, because the crisis we’re in will get much, much worse.  This year is an election year… the time for decisive action is now.

But by ourselves we can’t do enough. We need YOU to DO too.

Mandelman has already inspired a core group of DOERS, people who have already solved the mortgage modification nightmares of six people. But to solve the problems faster than one mortgage at a time and to attack bigger problems, we need more DOERS… a lot more.

Here’s what we DOERS DO:

1. We take action.

We are knowledgeable, active and involved. We know that our actions make a difference because we’re all working together, multiplying our impact. That’s why we continue to take action, each and every day.

2. We know there’s no “try” in DO.

Either you DO, or you don’t.

3. We build big victories out of little victories.

We’re singles hitters with a really high on base percentage.   We scratch out the runs it takes to win every way we can. Our actions are simple, discrete, and quick to do, like sending an email, making a call, mailing a letter.

We work this way because swinging for the fences wastes lots of effort and results in more strikeouts than our country has time for. Besides, it took years to make the mess we’re in, and there’s no silver bullet that fixes everything all at once. We have to do many things, and collectively they will make the big changes we need.

4. We focus on our similarities, not our differences.  

We’re not about right and left… we’re about right and wrong. Frankly, our nation’s policies on housing and banks are so bad, we have plenty of solid common ground for everyone. Since we’re focused on fixing those two interrelated issues—housing and bank policy—our divisions on other issues are irrelevant.

5. We believe in “We, the People.”  

We join forces to make change because we are Americans. It’s our Constitutional birthright to be in charge, to make change together. And we know if we act together to make good policy, we all benefit.

6. We recruit more DOERS, because size matters.

To solve the big problems we need to be correspondingly big. We’re not playing games. We are DOING to win.

7. And we are in it to win it.

We are relentless.  We take our tasks seriously.  We do our best. We  never let down our fellow DOERS by not DOING our individual parts.

Who Let the DOERS Out?  Who-Who-Who-Who-Who?

Who Let the DOERS Out?  Who-Who-Who-Who-Who?

First thing this morning and in response to our DOERS… One West Bank STOPPED THE SALE of Lisa Ferrechia’s home in Milford, Massachusetts… asking that we please call of our DOERS!  They have assured Lisa that they are looking at her situation at the highest levels and will do everything possible to make sure she can keep her home.

DOERS… you did it again.  That’s 7 out of 7 DOERS… we really are DOING it and making a real and very meaningful difference not only for the homeowners whose homes we’ve saved by helping them get sustainable loan modifications, but we’re also helping in a bigger picture sense as well by calling attention to situations that no one should want to see happen.

Obviously, we’ll be staying on top of what’s going on in Lisa’s case, but I’m quite confident that One West Bank is going to find a way for Lisa keep her home, they responded quickly… as a matter of fact the CEO emailed last night… Sunday night… to say that they would be looking into the situation first thing this morning… which they obviously did… and we thank them for being responsive and considerate in this instance.

So, thank you ONE WEST BANK.  Let’s get this done for Lisa and thousands of other homeowners… let’s make this into a win-win scenario, instead of the lose-lose-lose situation we have today.

But, we also recognize that we still have a long way to go before this fight will be over.  So, we need more DOERS signing on every day.  We can’t rest on our laurels, our voice needs to get stronger so we can take on bigger and bigger challenges.  Remember what they say… politicians won’t see the light until they feel the heat.  So, here’s what you need to know about DOERS…

OFFICIAL DOER STATEMENT OF PURPOSE

BY MARTIN ANDELMAN & ABIGAIL FIELD

We, Mandelman & Field, are joining forces to end the foreclosure crisis. We’ve been writing about the crisis—Mandelman for more than three years and 600+ articles, Field for about half that—but frankly, writing’s not enough.

We need to DO more to solve the massive crisis our country is enduring. We must act now, because the crisis we’re in will get much, much worse.  This year is an election year… the time for decisive action is now.

But by ourselves we can’t do enough. We need YOU to DO too.

Mandelman has already inspired a core group of DOERS, people who have already solved the mortgage modification nightmares of six people. But to solve the problems faster than one mortgage at a time and to attack bigger problems, we need more DOERS… a lot more.

Here’s what we DOERS DO:

1. We take action.

We are knowledgeable, active and involved. We know that our actions make a difference because we’re all working together, multiplying our impact. That’s why we continue to take action, each and every day.

2. We know there’s no “try” in DO.

Either you DO, or you don’t.

3. We build big victories out of little victories.

We’re singles hitters with a really high on base percentage.   We scratch out the runs it takes to win every way we can. Our actions are simple, discrete, and quick to do, like sending an email, making a call, mailing a letter.

We work this way because swinging for the fences wastes lots of effort and results in more strikeouts than our country has time for. Besides, it took years to make the mess we’re in, and there’s no silver bullet that fixes everything all at once. We have to do many things, and collectively they will make the big changes we need.

4. We focus on our similarities, not our differences.  

We’re not about right and left… we’re about right and wrong. Frankly, our nation’s policies on housing and banks are so bad, we have plenty of solid common ground for everyone. Since we’re focused on fixing those two interrelated issues—housing and bank policy—our divisions on other issues are irrelevant.

5. We believe in “We, the People.”  

We join forces to make change because we are Americans. It’s our Constitutional birthright to be in charge, to make change together. And we know if we act together to make good policy, we all benefit.

6. We recruit more DOERS, because size matters.

To solve the big problems we need to be correspondingly big. We’re not playing games. We are DOING to win.

7. And we are in it to win it.

We are relentless.  We take our tasks seriously.  We do our best. We  never let down our fellow DOERS by not DOING our individual parts.

 SO, HERE’S THE BOTTOM-LINE…

In 1954, Brown v. The Board of Education didn’t end segregation.  It took ten years and hundreds of thousands of people marching in the streets before President Johnson signed the Civil Rights Acts of 1964-65.

In 1971, President Nixon saw from his White House windows, tens of thousands of people protesting the war in Viet Nam and became paranoid that he would lose the election in 1972.  It drove those around him to break into the Democratic headquarters and led to the Watergate scandal… even though he won reelection in 1972 by a landslide.

And more recently, in 2009, news of AIG bonuses totaling $160 million and a corporate retreat at the St. Regis luxury resort in Southern California, caused people to take to the streets, outraged that a company recently bailed out by the taxpayers would be allowed to pay out what appeared to be extravagant bonuses.  Within two weeks the House of Representatives authored and passed a bill that would have placed a 90 percent tax on those and other bonuses.  It was killed in the senate, of course, but that’s not the point.

The point is that our elected representatives can move quickly… if they are properly motivated.

To become a DOER you only need to DO 3-4 things and they’re all easy:

1. Click here to SUBSCRIBE to Mandelman Matters.  That’s the only way you’ll get an email whenever there’s a new post and when you see “DOER ALERT” in the headline, you know it’s time to DO something that will matter.
2. Send an email to me at mandelman@mac.com.  Just type: I’m a DOER or something close in the subject line.  I’ll add you to the database of DOER emails.  When we want the element of surprise I won’t post it, I’ll email you the plan.
3. Actually check your email from Mandelman Matters or from mandelman@mac.com and when you see the words DOER ALERT, open it and read it right away or certainly ASAP.  Not the next day… that day.  Then, assuming you want to help make a difference, read it and send an email to the CEO’s email while I always list at the bottom of the DOER Alert.  Of course, the more thoughtful the email the better, but it doesn’t have to be a long email if you’re pressed for time.  Just a few sentences is just fine and dandy.
4. Help recruit other DOERS.  Send others links to articles on Mandelman Matters and tell them you’re DOING it and it’s working.

That’s all there is to it, and all I’m asking for is a four month commitment.  After that, if you agree that it’s worth DOING, then give me another four months.  The more DOERS we have the larger the problem we can tackle.

Consider this… right now there’s all this controversy over the 50 state AG settlement.  A few days ago many people thought the deal was about to be announced and people were very upset.  Well, if we had 100,000 DOERS now, we could stop that deal from getting done for sure.

Just think of being a DOER as being a way to “occupy” without leaving your home, sleeping on the ground, getting arrested and sprayed with pepper spray.  It’s also more effective than doing those things.  I’m not saying you shouldn’t do them, but I’m telling you that DOERS can stop this mess in its tracks this year or next.

]]> http://mandelman.ml-implode.com/2012/01/our-doers-did-it-again-one-west-bank-stops-sale-in-east/feed/ 0 http://mandelman.ml-implode.com/2012/01/bank-of-america-does-the-wright-thing-doers-did-it-again-join-us-be-a-doer/ http://mandelman.ml-implode.com/2012/01/bank-of-america-does-the-wright-thing-doers-did-it-again-join-us-be-a-doer/#comments Thu, 26 Jan 2012 11:23:30 +0000 Mandelman http://mandelman.ml-implode.com/?p=8776

On Monday at 5:00 PM, as I was running to catch a flight to Phoenix to work with a state senator on a piece of legislation I’ll be announcing soon, I posted a DOER ALERT titled: “Dear Bank of America,” about an octogenarian by the name of Dale Wright.  He had been trying to get his loan modified for a couple of years… been turned down… reapplied, and was told he was under consideration as recently as December 23, 2011… and then Bank of America sold his home on January 3, 2012.  Mr. Wright found out when an investor showed up at his door saying that he would understand it he needed more than THREE DAYS to get out.

By mid-day on Tuesday, Bank of America had responded to say they were looking into it… and by 4:30 PM that same day Bank of America DID THE WRIGHT THING, and gave Mr. Dale Wright his home back… from a bonafide third party purchaser.  BofA has also notified me to assure me that the bank is also modifying the loan, and I’ll be talking with them tomorrow to get details, among other things.

The point is that there should be no question that my DOERS are very effective, and likewise there shouldn’t be any question as to why that’s the case.  In our democracy, there’s only one thing more important than money and that’s getting reelected.  If our elected officials understand that they are at risk of being voted out of office… they react.  Their loyalties to banking lobbyists dissipate quickly when they realize that no amount of money will overcome the will of the people.  We used to understand this to be the case.

In 1954, Brown v. The Board of Education didn’t end segregation.  It took ten years and hundreds of thousands of people marching in the streets before President Johnson signed the Civil Rights Acts of 1964-65.

In 1971, President Nixon saw from his White House windows, tens of thousands of people protesting the war in Viet Nam and became paranoid that he would lose the election in 1972.  It drove those around him to break into the Democratic headquarters and led to the Watergate scandal… even though he won reelection in 1972 by a landslide.

And more recently, in 2009, news of AIG bonuses totaling $160 million and a corporate retreat at the St. Regis luxury resort in Southern California, caused people to take to the streets, outraged that a company recently bailed out by the taxpayers would be allowed to pay out what appeared to be extravagant bonuses.  Within two weeks the House of Representatives authored and passed a bill that would have placed a 90 percent tax on those and other bonuses.  It was killed in the senate, of course, but that’s not the point.  The point is that our elected representatives can move quickly… if they are properly motivated.

We’ve got over a thousand DOERS… and we’ve saved 6 out of 6 homes, all of which were about to be sold within days or already sold as was the case with Mr. Dale Wright.  (6 out of 6 is NOT a coincidence, by the way.)  But, if you really want to stop the foreclosure crisis…

We’ll need at least 100x that number… 

To become a DOER you only need to DO 3-4 things and they’re all easy:

1. Click here to SUBSCRIBE to Mandelman Matters.  That’s the only way you’ll get an email whenever there’s a new post and when you see “DOER ALERT” in the headline, you know it’s time to DO something that will matter.
2. Send an email to me at mandelman@mac.com.  Just type: I’m a DOER or something close in the subject line.  I’ll add you to the database of DOER emails.  When we want the element of surprise I won’t post it, I’ll email you the plan.
3. Actually check your email from Mandelman Matters or from mandelman@mac.com and when you see the words DOER ALERT, open it and read it right away or certainly ASAP.  Not the next day… that day.  Then, assuming you want to help make a difference, read it and send an email to the CEO’s email while I always list at the bottom of the DOER Alert.  Of course, the more thoughtful the email the better, but it doesn’t have to be a long email if you’re pressed for time.  Just a few sentences is just fine and dandy.
4. Help recruit other DOERS.  Send others links to articles on Mandelman Matters and tell them you’re DOING it and it’s working.

That’s all there is to it, and all I’m asking for is a four month commitment.  After that, if you agree that it’s worth DOING, then give me another four months.  The more DOERS we have the larger the problem we can tackle.

Consider this… right now there’s all this controversy over the 50 state AG settlement.  A few days ago many people thought the deal was about to be announced and people were very upset.  Well, if we had 100,000 DOERS now, we could stop that deal from getting done for sure.

Just think of being a DOER as being a way to “occupy” without leaving your home, sleeping on the ground, getting arrested and sprayed with pepper spray.  It’s also more effective than doing those things.  I’m not saying you shouldn’t do them, but I’m telling you that DOERS can stop this mess in its tracks this year or next.

I have to be honest about something…

There are two things that really bother me.  One is that we only have a thousand DOERS.  That means that thousands of people are reading and not signing up as DOERS.  How can that be?  Hopefully it’s because Im haven’t promoted it well, which is something that’s going to change.  But, if its not that… if you’re reading my column and not signing up and subscribing so you can join forces with the rest of us… why the heck not?

How can you not want to help save someone’s home or influence the state legislature, or make congress in Washington D.C. take notice and hear our voice?  I really don’t understand… so please… if you’re not going to DO it, please at least let me know.  Maybe you have a good reason that I’m not thinking of, in which case fair enough.  But if you don’t, why wouldn’t you DO this?  How can you not DO this?

And two… if you’re a DOER and you didn’t send an email this last time around… and please don’t tell me you didn’t have time to send a 3 line email because if I had time to write it, you could send an email about it.  I missed my flight to write about Mr. Wright by the way.  Had to drive all the way back home, then worked until 2:00 AM and then back to the airport the following morning.  And you didn’t have 5 minutes?  Come on…

Not only that, but how could you let down your fellow DOERS… to say nothing of Mr. Wright?  What if BofA hadn’t done what they did, and Mr. Wright had lost his home?  And you didn’t send an email as you promised by being a DOER.  I’m serious about this… I couldn’t DO that and sleep at night.  Your email can be the one that matters.  But you were too busy… so now at 82 years old, a veteran loses his home… and you let down your fellow DOERS?  Not cool, people.  Really, not cool.

Time Matters… A Lot.

DO you not see that we are losing this war… because we definitely are.  More than 3,000 evictions a day, seven days a week.  Foreclosures not slowing a bit.  And interest rates are still low.  What’s going to happen when they are six percent or even higher?

And this is an election year… this is when politicians are the most concerned with reelection.  We have to act and it must be now.  Period.  We’re doing the wave and we need you and everyone else or it doesn’t look like a wave.  And even though it’s just begun, it’s unquestionably working.  What else is working even half that consistently… NOTHING, I’m sorry to say.

Sample emails from a few DOERS to Bank of America this last time around…

Some of the emails received by the bank show just how deeply offended Americans are by what’s being allowed to go on… I’ve excerpted a few paragraphs as examples… they are all addressed to Mr. Brian Moynihan, CEO, Bank of America…

“It seems more and more these days your Bank and the rest of the Banks that are involved in Mortgage backed secured investments are reaching criminal status 

 What has just happened to Mr Wright in Cloverdale, CA should at least bring a long jail sentence to your door. I am sending out as many e-mails as I have contacts and then I am going on every blog site I can find and pass this article to them as well. Then I am writing my congressman and then the Attorney General !!!!!”

###

“As if we needed any more proof that servicers have no clue who owns the loans or how to properly service them, now we have the nincompoops who worked on Mr. Wright’s foreclosure to illustrate the depths of BOA’s incompetence. This one will stick in everyone’s mind because an old man is being thrown out of his house after BOA repeatedly “lost” the papers or “misidentified” the investor in a series of memorably unfortunate events.

I work a lot of real estate buyers and if this mistake isn’t rectified immediately then I’m telling all of them about elderly Mr. Wright and cautioning them to stay away from BOA mortgages from Wednesday until I retire in 20 years. Hope we’re able to do business again in the next two decades Brian, but remember there’s lots of other lenders out there and I can’t recommend BOA with this kind of crap going down.”

###

“I have read the story about Bank of America’s foreclosure sale on January 3, 2012 of the home of Mr. Dale Wright of Cloverdale, California.  He is an 82 year old Veteran and a widower.  Your bank refused to convert his HAMP trial payment plan because of a false claim that he had failed to send you in IRS Form 4506-T.  This was a false claim.  Even if it wasn’t, for the lack of such a minor document, no institution with any moral sense would have allowed that to be a basis to proceed to take away this man’s home. The action of Bank of America feeds the public view of your institution as one which has no corporate responsibility or conscience.

I was recently told by Bank of America’s Maine Market President how Bank of America has improved its practices.   How can anyone believe that when a story such as Mr. Wright’s is exposed.

 Bank of America’s abuse of America’s homeowners has simply got to stop.  Would you please act like a responsible executive of one of America’s largest financial institutions and intervene in this case by telling your people to do what ever it takes to get the title to Mr. Wrights back into his hands, to give him the HAMP permanent modification to which he is entitled, and to compensate him for the enormous emotional distress that your bank has caused him to suffer.

 It would be unconscionable for you to fail to do this at once.”

###

“I’m not sure how much more egregious you can possibly get than to sell a home out from under an 82 year old veteran after 1) approving him for a modification and 2) admitting that after you screwed up the first time since he was making his payments and then 3) while he was “under consideration” a second time as recently as December 23, 2011 you sold his home? 

 And then you BLAMED WELLS FARGO?

It would behoove you to immediately rectify this situation with Mr. Wright.  Make it right!  I don’t really care how you do it, but to turn his home over to a “home flipper” when he not only qualified for a modification but was approved for one and made his payments on time is beyond disgusting. 

 I’m only e-mailing this because your offices are closed at the moment.  Wait until I call, then I’ll give all of your staff an earful.  This really has me steamed.  And they should be ashamed that you are their boss.

 I’m positive that I will not be the only one that will be contacting you on this one.  This is only the first wave of a coming tsunami.      

 Fix it, Moynihan.  We are all tired of you and your cronies shenanigans and the dam of outrage is about to break all over this country.  There will be way too many holes in it for you to plug up, and it will all come crashing down like the worthless paper you claim to hold on all these mortgages.”

###

“Regarding the above-referenced loan, please use your infinite powers to assist this elderly gentleman in the later years of his life to work through this difficult situation.  It is so atrocious the way in which distressed property owners in all age groups, of all ethnicities and from all socioeconomic strata are being treated by institutions that simply do not appear to care about the impact their industry has had on the citizens of this country.  But his particular story goes beyond the customary and usual.  This gentle man has served to defend those of us that are unable or unwilling to put our lives on the line for our country! 

When will you do something about the way in which Bank of America’s servicing departments botch up paperwork, lie to people in life-changing circumstances, and then blame it on others?  As a major institution within the financial realm, one would think that BofA would be on the cutting edge in the technology arena to keep paperwork intact; in hiring capable and ethical employees to problem-solve rather than lie, cheat, or delay, and in providing resources with whom customers can discuss their problems to get back on tract? 

More importantly, however, is when will Bank of America become the financial institution that deserves the trust of the people that keep you in business? 

It is time to stop the spiraling loss of wealth to the vast majority of homeowners that rely on the equity in their homes to enjoy a peaceful and well-deserved retirement. It is time to have compassion for those individual homeowners whose jobs have been cut out and now must move their entire families elsewhere in a real estate market that causes them to go into default.  It is time to develop a plan to actually work on customer service that truly assists (rather than bullies) homeowners in lieu of the almighty dollar. 

Mr. Wright’s story is, without a doubt, a very sad story that requires immediate measures.  Mr. Moynihan, let his story be the catalyst for extreme changes within your institution.  It is, after all, within your power to make these changes.  The bucks stops with YOU.”

###

Having read the story of Mr. Wright and his appalling treatment by Bank of America, I trust you will reverse the sale of this house and return it to its rightful owner.

I hope you are familiar with the details of this horrific treatment by your bank.  If not, then you can read about it here:

http://mandelman.ml-implode.com/2012/01/doer-alert-dear-bank-of-america/

###

OFFICIAL DOER STATEMENT OF PURPOSE

BY MARTIN ANDELMAN & ABIGAIL FIELD

We, Mandelman & Field, are joining forces to end the foreclosure crisis. We’ve been writing about the crisis—Mandelman for more than three years and 600+ articles, Field for about half that—but frankly, writing’s not enough.

We need to DO more to solve the massive crisis our country is enduring. We must act now, because the crisis we’re in will get much, much worse.  This year is an election year… the time for decisive action is now.

But by ourselves we can’t do enough. We need YOU to DO too.

Mandelman has already inspired a core group of DOERS, people who have already solved the mortgage modification nightmares of six people. But to solve the problems faster than one mortgage at a time and to attack bigger problems, we need more DOERS… a lot more.

Here’s what we DOERS DO:

1. We take action.

We are knowledgeable, active and involved. We know that our actions make a difference because we’re all working together, multiplying our impact. That’s why we continue to take action, each and every day.

2. We know there’s no “try” in DO.

Either you DO, or you don’t.

3. We build big victories out of little victories.

We’re singles hitters with a really high on base percentage.   We scratch out the runs it takes to win every way we can. Our actions are simple, discrete, and quick to do, like sending an email, making a call, mailing a letter.

We work this way because swinging for the fences wastes lots of effort and results in more strikeouts than our country has time for. Besides, it took years to make the mess we’re in, and there’s no silver bullet that fixes everything all at once. We have to do many things, and collectively they will make the big changes we need.

4. We focus on our similarities, not our differences.  

We’re not about right and left… we’re about right and wrong. Frankly, our nation’s policies on housing and banks are so bad, we have plenty of solid common ground for everyone. Since we’re focused on fixing those two interrelated issues—housing and bank policy—our divisions on other issues are irrelevant.

5. We believe in “We, the People.”  

We join forces to make change because we are Americans. It’s our Constitutional birthright to be in charge, to make change together. And we know if we act together to make good policy, we all benefit.

6. We recruit more DOERS, because size matters.

To solve the big problems we need to be correspondingly big. We’re not playing games. We are DOING to win.

7. And we are in it to win it.

We are relentless.  We take our tasks seriously.  We do our best. We  never let down our fellow DOERS by not DOING our individual parts.

Please don’t delay… DO it today… it’s easy to DO… and to win, we need you.

Becoming a DOER and committing to our code of action is easy. Just send an email to either one of us:

Martin Andelman at: mandelman@mac.com

Abigail Field at: ACFRealityCheck@yahoo.com

And also don’t forget to subscribe here: SUBSCRIBE

All you have to write in the message is: Count on me to be a DOER.  Or,  just say: I’m in.  Tell me what to DO.

And we’ll be in touch. Something like once a week we’ll call on you to DO something important… something that matters a lot.  It feels really good to be a DOER, ask anyone who is.

Mandelman & Field… OUT!

Los Angeles attorney, and Los Angeles Best Lawyers’ First Amendment Law Lawyer of the Year for 2012, Gary Bostwick, of the law firm, Bostwick & Jassey LLP, is taking the California State Bar to court, among other things challenging the state’s Senate Bill 94 (“SB 94″) for its constitutionality or lack thereof.  In a complaint filed in Los Angeles Superior Court on January 13, 2012, Bostwick alleges that certain SB 94 provisions, “as applied and enforced by the State Bar, violate both the United States and California constitutions.”

And all I can say to that is… it’s about damn time.  Followed by, how can I help?  (A copy of the complaint follows this article at bottom.)

Right now, I have to catch a flight… but tune in later for further commentary on:

• How the California State Bar has done irreparable  harm to the people and to the economy of California.
• Why many of the state’s most influential lawyers and policy experts think it shouldn’t be anything more than a trade association.
• Why two years ago Governor Schwarzenegger barred the Bar from collecting its dues from its members.
• My first hand knowledge of how little the State Bar knows about the subject matter it’s supposed to be regulating.  It’s shameful and an embarrassment to the legal community.
• A Mandelman Matters Podcast with Bar Defense and Ethics attorney David Cameron Carr who was an associate trial council for the California State Bar for over a decade, and thinks the Bar is… well, you’ll have to hear it from him, but it’s not at all good, and he knows as much about the inner workings of the Bar as anyone.
• And much, much more!

In California, the efforts to stop lawyers from representing homeowners have been more extreme than in any other state.  Here the campaign to malign the legal profession has been driven by legislative committees and supported by the California State Bar Association.  In October 2009, California’s SB 94 effectively prevented lawyers from offering to represent homeowners who are seeking to avoid foreclosure through modification of their loans.  Under the guise of “charging up front makes you a scammer,” SB 94 has made it illegal for a lawyer to charge a homeowner an upfront retainer for legal fees.

The new law has failed to stop scammers, as was its supposed purpose, and in fact has made it much easier for California’s homeowners to get ripped of by unscrupulous operators because when you remove the legitimate attorneys from the soup, all that remain are the scammers, and they get better and better at looking legit.

I’m not the only one who sees the law as having been ineffective.  Last December, Suzan Anderson, who heads up the bar’s task force on loan modifications, told David Streitfeld of The New York Times…

“I wish the law had worked,” Ms. Anderson said.

So, more than two years later, we are finally going to see how the courts decide this so-called controversy.  As stated in Bostwick’s complaint…

“The State Bar publicly takes the position that an attorney who provides a homeowner loan modification or other forbearance services may not agree with the homeowner that the services requested will be broken down into component parts and that a fee for each component part may not be earned and collected as each component part is completed.”

Bostwick is a First Amendment lawyer and the suit is going after the constitutionality of SB 94 on a state and federal basis.  For example, the complaint alleges that “the challenged provisions of SB 94 as applied by the State Bar…”

… unconstitutionally infringe upon the rights of Plaintiff, other members of the State Bar and citizens of California seeking legal representation under Article I, Section l0 of the United States Constitution, which states that no State shall pass any law “impairing the Obligation of Contracts.”

And…

… unconstitutionally infringe upon the rights of Plaintiff, other members of the State Bar and citizens of California seeking legal representation under Article l, Section 9 of the California Constitution, which states that a “law impairing the obligation of contracts ma)/ not be passed.”

The plaintiff in the case is Los Angeles real estate attorney Swazi Taylor.  A couple of months ago, after being certified by the State Bar Administrative Court as an “expert” in subjects that included HAMP, loan modifications and other matters related to the foreclosure crisis, I testified on Swazi’s behalf when he was charged with violating SB 94.  I helped the court to better understand the dynamics of the crisis and what’s involved when representing homeowners in the loan modification process. To-date, there has been no decision in Swazi’s case.

Other aspects of the suit allege that the State Bar has violated the Due Process Clause of the Fourteenth Amendment of the U.S. Constitution, and the Due Process Clauses of Article 1, Section 7 of the California Constitution.  And the suit goes on to ask for both declaratory and injunctive relief.

The core issue, however, is about when a lawyer who represents a homeowner trying to get their loan modified can be compensated.  The Bar claims the law requires an attorney to wait until the very end of the case, however, the actual language contained in SB 94 doesn’t say that… it says lawyers cannot be paid until completing “any and all services (the lawyer) has contracted to perform…” Up until Ms. Anderson’s presentation at the annual meeting, lawyers were dividing services into separate contractual arrangements and accepting payments from homeowners as discreet sets of services were complete.

Not that they were treated as heroes, mind you… in fact, they’ve been treated as anything but, to the point where many have told me that they often have felt uncomfortable telling their peers and others about their practices.  From the very beginning it was painfully obvious that the banks didn’t want homeowners to be represented when applying for a loan modification, they wanted the homeowners to show up alone, unknowledgeable, afraid and ashamed.  It’s so much easier to do whatever you want when you only have a homeowner with which to contend… lawyers, after all, gum everything up, always looking out for their client’s best interests, blah, blah, blah…

Today, we should all understand that going up against the too-big-to-fail banks and their servicing arms, whether in the courts, or when working to obtain agreements to modify loans and keep homeowners in their homes, has been a very difficult and largely thankless job.  It certainly wasn’t my plan, but as I’ve written over 600 in-depth articles on the foreclosure crisis, I’ve had a front row seat, watching talking to literally thousands of homeowners endure the hellish process, and getting to know literally hundreds of lawyers trying to help them save their homes…. many of which have become some of my closest friends not only here in California but all over the country.

For a thorough discussion of SB 94, here’s a link to my latest examination of the law that has caused more harm than good: Bull Meet Chins Shop… California’s SB 94 and the State Bar, Two Years Later.

IF YOU’RE AN ATTORNEY PRACTICING IN CALIFORNIA AND YOU WANT TO KNOW MORE ABOUT HOW YOU CAN HELP SUPPORT THIS CASE AND OTHER RELATED EFFORTS, YOU NEED TO CONTACT ME:

Martin Andelman

mandelman@mac.com

~~~

Now, meet the lawyers with the legal “chops” to handle this case…

and stay tuned because I’ll be writing a lot more about this suit as it proceeds in the courts… 

From the “Attorney Profiles” section of the Bostwick & Jassey LLP Website… 

Gary L. Bostwick

Gary L. Bostwick has been a trial attorney for more than 30 years, and is also a certified specialist in appellate law by The State Bar of California Board of Legal Specialization.  He has tried over 60 cases.  Gary is a fellow of the American College of Trial Lawyers, an exclusive organization of advocates that only invites members with outstanding trial experience.  He has been prominent in many complex business litigation and constitutional law matters, with a special emphasis on First Amendment and media concerns.  He has represented clients as counsel in three different matters heard by the United States Supreme Court. Chambers USA and The Legal 500 US recognized him as one of California’s leading media and entertainment lawyers, and he is listed as one of “The Best Lawyers in America” in the First Amendment area.

He has authored numerous articles, including, A Taxonomy of Privacy: Repose, Sanctuary & Intimate Decision, 64 CALIFORNIA LAW REVIEW 1447 (1976), which has been cited by the California Supreme Court.

Gary has served as an adjunct professor of law at Loyola Law School, Southwestern Law School and USC’s Annenberg School for Communication, teaching about the First Amendment, defamation, privacy and other legal issues impacting journalists.

Gary has a J.D. and M.P.P. from the University of California, Berkeley, where he served as Articles Editor of the California Law Review at Boalt Hall, and he has a B.S. in engineering from Northwestern University.  He is a member of the California and Wyoming State Bars.  Gary is fluent in Spanish and German.

Jean-Paul Jassy

Jean-Paul Jassy is an experienced litigator at all levels, ranging from document-intensive, multi-million dollar business disputes to free speech and free press cases before the United States Supreme Court and the Supreme Court of California.  For over a decade, Jean-Paul typically has represented media and entertainment companies and others with free press, free speech and copyright concerns.  He also has extensive experience representing small, mid-sized and large companies in business disputes and appeals.

Jean-Paul was selected by his peers for inclusion in The Best Lawyers in America® 2011 in the field of First Amendment Law. Selection to Best Lawyers is based on an exhaustive and rigorous peer-review survey comprising more than 3.1 million confidential evaluations by the top attorneys in the country.  The publishers of Los Angeles Magazine and  Law & Politics call Jean-Paul “one of the top First Amendment and media attorneys” in Los Angeles, and, for the sixth consecutive year, have recognized him as a “Rising Star” — a peer-reviewed honor given to only 2.5% of attorneys in Southern California — in the fields of First Amendment/media/advertising law, general litigation and appellate law. [See Article]

Jean-Paul and his work have been discussed in American Lawyer,California Lawyer, Los Angeles Times, Los Angeles Daily Journal and many other publications.  He is often called upon to offer expert commentary on First Amendment and media law issues.

Jean-Paul has served as an adjunct professor at UC Irvine’s new law school, teaching a course on media law and, in Spring 2012, he will teach a course on First Amendment law at UC Irvine School of Law.  He also has served as an adjunct professor of law at the University of Southern California Law School (teaching Constitutional Law II – First Amendment law) and at Southwestern University Law School (teaching a course on the law of defamation, privacy and publicity).   And, for four years, Jean-Paul taught legal and ethical issues in journalism, a required course for a journalism certificate, at UCLA Extension.

Jean-Paul is Membership Chair of the American Bar Association’s Forum on Communications Law, a national committee of over 6,000 members focusing on issues relating to legal counseling of print media, the telecommunications industry and electronic media. He is the former Co-Chair of the California Chapter of the Media Law Resource Center (MLRC), a non-profit information clearinghouse that monitors developments in media law and First Amendment rights.

Jean-Paul received a J.D. from the University of Southern California Law School, where he was Chair of the Hale Moot Court Honors Program, and he has a B.A., with highest honors, in political science from the University of California, Berkeley.

Mandelman out.

And here’s the complaint itself:

Declatory Relief Taylor v. CA State Bar

Dear Bank of America, and by Bank of America I mean CEO Brian Moynihan…

Brian, I’m running out the door at the moment.  I have to make a flight to Arizona so I can attend a meeting in the morning at the state capitol.  A state senator called me last week asking for my help promoting a bill related to the foreclosure situation there.  Were it not for my schedule, I’d be ripping you and your bank to pieces in this column, and then asking all of my DOERS to inundate you with emails and letters in support of yet another homeowner who’s life you have irrevocably, unconscionably and inconceivably harmed.

I’ll be back at my desk tomorrow, and I was just going to wait until then to deal with you, but you see… this story brought tears to my eyes asa I sat here checking in for my flight… I guess I’m just emotional (although I think “human” is the more appropriate word) about such things, while you perhaps are not.  Anyway, I decided that even though I didn’t have time to write the story in detail… I’d let you know what’s coming soon to a theater near you.

My thinking is, if you want to avoid me having to spend the eight or so hours it takes me to write all of the details into a piece that will be read and remembered by tens of thousands of people all over the country, you’ll address this situation before I get home tomorrow afternoon.  I hope you don’t view this as some sort of threat… I don’t mean it that way… I hate people that threaten, you know what I mean?  Either do it or shut up, has always been my motto.

I’m just giving you a heads up, if you will, of what tomorrow afternoon is absolutely certain to bring if you don’t do something about… hey, do you remember the Perry Mason television show from days gone by…

The Case of the Grieving Grandpa and the Lying Lender

Starring…

Mr. Dale Wright of Cloverdale, California

Loan Number 149664284

Brian, this one’s going to make a great story too, so if you can’t make time to handle it before I’m home tomorrow afternoon, you’re going to wish you had.  Here are a few highlights… think of it as the show’s preview or a movie trailer…

Mr. Dale Wright of Cloverdale, California turned to Bank of America for help in 2009 after being told by the President of the United States that Bank of America would help him, if at all possible.  Mr. Wright is an 82 year-old veteran who’s been a pillar of his community since before you were born, Brian.

He was approved for his trial modification under the Making Home Affordable program on March 23, 2010.  I’m told by several people involved in his case that he made all of his payments on time and as agreed and I have reason to believe they are correct.  He was denied for a permanent loan modification because of Bank of America claimed not to have received a new 4506T… even though you had received said 4506T, 30 days earlier and I’m told those things are good for 90 or 120 days.

No matter… he was told he was being reconsidered as of December 6, 2011.  In fact, he was told he was under consideration as of December 23rd.  You SOLD his house on January 3rd, Brian. He’s 82 years old, Brian.  December 25th is Christmas, Brian.  January 3rd is two days after New Years, Brian.  God damnit… Bank of America doesn’t need to do sh#t that week, Brian. (I’m sorry, for my language, but I can’t take much more of this without swearing, Brian.)

Of course, your bank didn’t tell him it was sold on January 3rd.  He found out when the investor knocked on his door on January 3rd and told him that it would be understood if he needed more than three days to move out!  The investor told Dale he was buying the property to “flip it.”

(SIDEBAR: You might want to mention to whoever that was that said that to him, that he’s damn lucky that it wasn’t me that answered the door that day because I don’t have any prior criminal record and I’d be willing to pick up a first offense charge for beating the crap out of someone for doing that to my grandfather. But, I don’t suppose he would have said it to me, now would he?  No, he only says things like that to 82 year olds, I’m fairly sure.)

So, Mr. Wright called and Bank of America was like…

“Wo, wo, wo… we don’t know how this happened… we were trying to postpone the sale, but Wells Fargo wouldn’t do it and they’re the investor that owns the loan. It wasn’t our fault… blah, blah, blah.”

Your bank sold the home of an 82 year-old veteran right after New Years so some investor could flip it, and couldn’t even be bothered to make a call to let him know?  No… instead you blamed it on Wells Fargo, saying they were the investor and they wouldn’t agree to delay the sale or modify the loan.  Hmmm… think that’s true, Brian?  I wonder…

But luckily, I didn’t have to wonder for very long… here’s the email from Wells Fargo from just a few days ago:

From: catherine.h.martin@wellsfargo.com

To: kristiesheets@hotmail.com

Date: Tue, 17 Jan 2012 14:01:19 -0600

Subject: Dale Wright

 Dear Ms. Sheets,

Wells Fargo Bank, N.A. received and reviewed your recent correspondence regarding your concerns as it relates to your Grandfather’s mortgage.

After researching this matter, we have verified that Wells Fargo Bank is not the Investor/Owner and does not have a direct role in servicing the loan.  That being said, I am forwarding your letter to the servicer, Bank of America, instructing that they subsequently respond in a timely manner to your concerns giving Mr. Wright every consideration allowed. 

I urge that you continue addressing Bank of America with concerns pertaining to this matter.  You may contact Ms. Nora Jones at 817-864-2293 at Bank of America to request that she escalate this matter within Bank of America. 

Wells Fargo Bank makes every effort to facilitate and inform servicers of such issues so they may properly respond. 

Respectfully,

Cathy Martin 

Client Service Consultant 

Wells Fargo Bank 

9062 Old Annapolis Road 

Columbia, MD  21045 

410-884-2161 FAX 866-493-7814 

Ooopsie!  I guess your system was wrong… or your bank’s wires got crossed.  Or maybe they were just feeding Mr. Wright “Lie Number 32,863,” from the Bank of America Handbook?

The man’s wife passed away in 2006.  They were married for 53 years.  Your bank explained that a request for postponement went in on the 23rd of December 2011 on a loan which Bank of America agreed to review for HAMP on December 1, 2011 and then you sold  the home on January 3, 2012… Brian, are you trying to punish this man?

Fix this, Brian.  Fix it so that it doesn’t happen to even one more elderly person.  Because if you’ve heard of karma, your later years are likely going to be a real bear if you don’t.

COME ON DOERS… DO SOMETHING ABOUT THIS…

I CAN’T SAY ANYTHING ELSE WITHOUT BREAKING MY KEYBOARD AND MISSING MY FLIGHT, AND BESIDES I CAN’T SEE AGAIN, THIS IS JUST TOO UPSETTING… I FEEL LIKE IT’S GROUNDHOG DAY…

BRIAN… Kristie Sheets is his granddaughter… HER NUMBER IS: 707-632-6101.  You can call her and ask how to make this right, if you have a mind to do so.  I’ll be home tomorrow afternoon, and I’ll check with her before I do anything else.  This, as I mentioned, was just a preview of coming attractions.  (Insert Perry Mason Music here.)

Mandelman out.

DOERS YOU KNOW WHAT TO DO!

Brian Moynihan, President, CEO & Chairman

Bank of America

Email: brian.t.moynihan@bankofamerica.com

Matthew Task, Executive Relations, 
Office of the CEO (At BofA)

Phone: 813-805-4873

I’m actually quite proud to be able to say that I’ve inspired a few people around the country to help homeowners.  Two lawyers have written to me to say that they’ve come out of retirement to help defend homeowners in court, for example.   OhioFraudclosure is a blog written by Marco, who, at least partially, has been inspired by Mandelman Matters… he’s a very nice, caring, and dedicated person who started a blog to help homeowners… and it’s not an easy thing to do, as I know… so, I’ve tried to help if I can, and he’s always willing to help me as well.

Marco was sort of peripherally involved in the Occupy Foreclosure movement that launched on December 6, 2011.  He had contacted a homeowner he knew was about to be evicted to see if he would want the Occupy folks to occupy his home in an attempt to delay the eviction.  The homeowner declined, saying that his wife was recovering from being in a car accident.  I interviewed Marco in the second half of my Front Line News podcast, if you’re interested in hearing him explain what happened… he actually DID stop the eviction that was attempted… it’s one heck of a story, actually.

So, below is a video that Marco just put together.  It’s dramatic… disturbing even.  And okay, the music is a tad over the top.  It includes footage of the sheriff coming to evict a family, obviously without notice… or at least without adequate notice.  Marco put the video together to let people know that the Fannie and Freddie annual-moratorium-for-the-holidays is ending on January 3rd.

And for the rest of the story, please click on over and check out Marco on OhioFraudclosure… he’s very complementary about Mandelman Matters.

Thank you, Marco.

Mandelman out.

A land once filled with promises…Where the American Dream was a family’s home,
has now become the land of broken promises and shattered dreams.
Sounds of children crying ….haunt parents ….who find it hard to sleep…
Everyone……waiting…. for the next knock or pounding….on the front door.

Communities are being destroyed, as families disappear into the night.
This will leave heavy scars on the very fabric of our nation.
These wounds are so deep…it will take a generation…or two….to heal.
3,000 ….EVICTIONS…. EVERY SINGLE DAY of the YEAR.
Maybe not today, or tomorrow, but ……THEY ARE COMING
They come……often with little or no warning.

Fannie and Freddie stopped foreclosing for the holidays, but only for a brief moment,
They did not stop…..out of the goodness of their hearts.
They paused, so no one witnesses THE HORRORS OF THEIR ACTS AT CHRISTMAS.
The powers that be ….wouldn’t want the world to see…..this sheer terror
January 3rd is coming and the daily mass evictions need to be ramped back up….again

THEY ARE COMING

This is the time of year for those in the media to opine as to which story from the year past was the most important.  Writing for ALJAZEERA, Danny Schechter’s end-of-year piece makes several important points about how much of the mainstream media seemingly continues to pretend that the financial and foreclosure crises aren’t happening.  He begins with the following…

This year’s top story is not getting coverage

New York, NY - As every media critic learns, the worst sin of our press is not its blatant biases, or crimes of commission, but rather the pervasive patterns of omission; what’s left out!

Already, with two weeks to go, the Associated Press has crossed the finish line with the top choice of the newspapers it serves. Perhaps in the outdated spirit of Mark Twain’s famous dictum that: “There are only two forces that can carry light to all corners of the globe – only two – the sun in the heavens and the Associated Press on earth”, their pick for story of the year is the killing of Osama bin Laden.

He goes on to acknowledge that on the progressive side of the street, this past year was an “ALL OCCUPY ALL THE TIME.” year, but that stories about Michael Jackson’s doctor, or the Kardashian wedding and break-up, are the “daily scandal that is there to titillate and drive up ratings.”

But, then Danny brings up what’s on all of our minds, Wall Street and the conspicuous absence of prosecutions and “perp walks.”

It has yet to happen and most media outlets are not focussing on why. I am referring to the lack of any real investigation of Wall Street crimes, and the indictments of wrongdoers. I am talking about “perp walks” by guilty Wall Street CEOs on their way to joining Bernie Madoff in some institute of incarceration.

Lack of investigative oversight

This is not a call for revenge, but for justice. The reason: the barely exposed chain of criminality that started in some salon of securitisation and then rippled across the world, bringing down countries and economies. It has its origins in Wall Street, where three industries colluded as a cabal to sell fraudulent subprime loans and then transfer fees and foreclosures from poor and middle class Americans to themselves.

Where is the examination of the pillars of our “FIRE” economy – Finance, Insurance and Real Estate. They became the interconnected cogs in a leverage machine to enrich themselves while plundering the rest of us.

So far, this story affecting so many millions has not really crashed through in the 1 per cent media machine with a few exceptions here and there.

And then… and this is where it really gets good, in my humble opinion… he tells people where they need to look to get the story that should be considered the year’s top story.

If you want to find out about this story of the year and years past, in all of its disgusting detail, you can’t just trust major media. You have to read Matt Taibbi in Rolling Stone, a music magazine, or blogs like Mandelman on Ml-implode.com, Naked Capitalism, Credit Writedowns, ZeroHedge, ProPublica, or Amped Status.com, to cite a few.

TV show host Dylan Ratigan has been a lonely voice on MSNBC while academics like former bank regulator William Black and former Bank economist Michael Hudson speak out frequently on the criminal environment that Wall Street has wrought in alternative outlets.

Journalists like Robert Scheer, Greg Palast and Chris Hedges write regularly on issues that from time to time make it into the columns of New York writers like Paul Krugman, Getrchen Morgensen, Frank Norris and James Stewart. All these opinion pieces rarely lead to follow-ups in the news section.

Was I too subtle there?  Did you happen to notice who’s blog was mentioned above?  Like, Woohoo! right?  Okay, just making sure…

Danny’s article goes on to discuss some very important issues, such as identifying those that are apparently, “Too Big to Question,” writing…

Just as many outlets did not warn us about the coming market meltdown, most are not warning us today about what will happen if the depression we are already sinking into deepens.

Already, a European economic think-tank called LEAP, with a history of credible projections, warns soberly, “Already insolvent (the US) will become ungovernable bringing about, for Americans and those who depend on the United States, violent and destructive economic, financial, monetary, geopolitical and social shocks.”

Shawn T. Newman of Olympia, Washington is a highly experienced lawyer who fights for the rights of homeowners, among others.  Washington State homeowners should know of him, as should the other foreclosure defense attorneys around the country.  Unquestionably, he’s one of “US.”

Here’s an excerpt from Shawn’s article, Freddie and Fannie’s Mortgage Shell Game, which appeared as a Guest Post on Mandelman Matters:

Chances are Fannie or Freddie “own your mortgage.”  If you are in litigation, you should follow up with targeted discovery requests to the servicer confirming the servicer does not “own” your mortgage.  Moreover, you should inquire and demand any records showing Freddie or Fannie assigned the mortgage to the servicer.  Servicers will point to Freddie or Fannie servicing guidelines which basically provide that the servicer forecloses in its (the servicer’s) own name.  Given a mortgage is an interest in land and the requirement under the statute of frauds that such contracts be in writing, the servicer’s standing to foreclose can be challenged absent some proof that the mortgage was specifically assigned by Freddie or Fannie to the servicer.  Legally, Freddie and Fannie must assign back the note to the servicer.  In fact, Freddie has a specific form 105 to do so.

However, Freddie and Fannie’s guidelines have evolved over time and you may find that there is no such assignment in most cases.   Unless there is a written assignment from the mortgage owner (Freddy or Fannie) to the servicer, the servicer cannot foreclose for the simple reason they are not part of the mortgage contract.   Simply put, only the mortgage owner can foreclose on the mortgage contract.  Moreover, if the assignment of the mortgage is invalid or fraudulent, then there is a “cloud on title” which should be identified by title and mortgage insurers.

Shawn has worked as a Washington State Assistant Attorney General (Education Division), Evergreen State College Legal Counsel, Washington State Senate Staff Counsel (Senate Committee Services) and as a Public Defender.  In his private practice, he represents various individuals, community groups, for profit and non-profit organizations and businesses.

Shawn is currently General Counsel to Saint Martin’s University and has served on the editorial board of the Journal of College and University Law.  He is a member of the Washington State Bar Association, Washington State Trial Lawyers Association and the National Association of College and University Attorneys.  Mr. Newman also serves as Washington State Director for the Initiative and Referendum Institute, based at the University of Southern California.

Shawn is a graduate of Notre Dame Law School and Ohio State University.  While at Notre Dame, he received a fellowship from the White Center for Law and Government and served as the Legislative Research Editor for the Journal of Legislation.

So,  without further delay, turn up your speakers click below and get ready for attorney Shawn Newman and how he sees fraudclosure by Fannie Mae and Freddie Mac… on Mandelman Matters Podcast.

Mandelman out.

Did you know that Fannie & Freddie had a policy stating that they didn’t want to receive “notes?”  I didn’t.

Meet a reader of mine, attorney Shawn T. Newman of Olympia, Washington.  An exceptional and highly experienced lawyer who fights for the rights of homeowners, among others.  A professor at both undergrad and graduate levels, and an exceptionally nice person who is both very knowledgable and very easy to talk to.  Washington State homeowners should know of him, as should the other foreclosure defense attorneys around the country.  As he says, he’s not terribly well-connected, so I said I’d would certainly help connect him.  Unquestionably, he’s one of “US.”

As a public sector lawyer, Shawn has worked as a Washington State Assistant Attorney General (Education Division), Evergreen State College Legal Counsel, Washington State Senate Staff Counsel (Senate Committee Services) and as a Public Defender.  In his private practice, he represents various individuals, community groups, for profit and non-profit organizations and businesses.

Shawn is currently General Counsel to Saint Martin’s University and has served on the editorial board of the Journal of College and University Law.  He is a member of the Washington State Bar Association, Washington State Trial Lawyers Association and the National Association of College and University Attorneys.  Mr. Newman also serves as Washington State Director for the Initiative and Referendum Institute, based at the University of Southern California.

Shawn is a graduate of Notre Dame Law School and Ohio State University.  While at Notre Dame, he received a fellowship from the White Center for Law and Government and served as the Legislative Research Editor for the Journal of Legislation.

Shawn’s Guest Post follows, but also be sure to look for him in his upcoming Mandelman Matters Podcast.  And starting today, you can also find his contact information as the latest addition to my Trusted Attorneys tab.  We need a lot more lawyers like Shawn, but I’m sure glad he’s with us and representing Washington State homeowners.

Mandelman out.

That’s Shawn appearing before the Washington State Supreme Court

Welcome to Freddie and Fannie’s Mortgage Shell Game

By Shawn Timothy Newman, J.D.

Adjunct Professor

Saint Martin’s University

In common parlance, a mortgage (or Deed of Trust) includes the underlying loan (promissory note) and the security on that loan (mortgage or Deed of Trust).  This ignores the fact that the note and mortgage (or DOT) are two separate contracts governed by some different laws and legal principals.

As noted in Powell on Real Property, sec. 37.27 [2] (Michael Allan Wolf ed., LexisNexis Matthew Bender 2010)

It must be remembered that the mortgagee has two interests: (1) the debt or obligation which is owned to him, and (2) the security interest in land represented by the mortgage…. In fact, the primary interest is the personalty debt obligation.  The interest in land which is available in case security is necessary because of the debtor’s default is considered as collateral interest.  Much trouble has been caused by mortgagees attempting to transfer only one of these two interests.  Where the mortgagee has “transferred” only the mortgage, the transaction is a nullity and his “assignee,” having received no interest in the underlying debt or obligation, has a worthless piece of paper.

Regarding #1, the debt is the loan contract (i.e. the promissory note).  Promissory notes are governed by the Uniform Commercial Code (UCC) Art. 3 (Negotiable Instruments).   The UCC is a uniform law adopted by every state.  In addition to promissory notes, negotiable instruments include checks.  Like a check, you must negotiate (deliver with proper endorsements) the promissory note to another for that person to claim ownership of the promissory note.  Absent proper negotiation of the note, another party cannot claim ownership.  So, for example, you find a check made payable to someone else and it is not endorsed to you; you cannot cash it because you are not the owner.

Regarding #2, the security on the debt (i.e. mortgage or deed of trust), is a contractual interest in land with the home buyer designated as the mortgagor and the lender/creditor as the mortgagee.  Because a mortgage/DOT is an interest in land, the Statute of Frauds requires such contracts to be in writing and signed to be enforceable.  Any assignment of a mortgage or deed of trust must be in writing and signed to be enforceable.  Agreements that violate the Statute of Frauds are void and unenforceable as contracts.  There are some exceptions to the Statue of Fraud’s writing requirement including an admission in court and under oath “by the party to be charged” that there is a contract (this can be done via discovery).  So, as is the case with most mortgages, they are sold by the originating bank (or mortgage company) to either Freddie Mac or Fannie Mae.  This is known as the “secondary mortgage market” (secondary, since Freddy and Fannie don’t originate the loans but buy them up from the banks and mortgage companies that do).  According to Freddie Mac’s website:

Every day, Freddie Mac provides a continuous flow of funds to mortgage lenders. We do so not by making individual mortgage loans to consumers; instead, we support the U.S. home mortgage market by providing money directly to lenders, ensuring that the system is liquid, stable and affordable.  To fulfill this vital mission, Freddie Mac buys residential mortgages and mortgage-related securities and guarantees mortgages made by lenders. We issue debt securities to the global capital markets to fund the purchase of mortgages and mortgage-related securities we hold as an investor. We also create and sell mortgage-related securities to the capital markets, providing a guarantee to investors on those securities.

Freddie Mac pools the mortgages it purchases from lenders across the country and packages them into securities that can be sold to investors. These investors include the lenders themselves, pension funds, insurance companies, securities dealers, commercial and central banks, and others. Freddie Mac also is one of the largest investors in mortgage-related securities, purchasing and holding in portfolio a portion of our own securities and those issued by others.

http://www.freddiemac.com/corporate/company_profile/our_business/securities.html

If Freddie or Fannie truly “own” your mortgage, they have “legal title” to the property and are the “real party in interest” to foreclose.

However, this brings me to an issue raised by Professor Dale Whitman in his article, “How Negotiability Has Fouled Up the Secondary Mortgage Market, and What To Do About It,” 37 Pepp. L. Rev 738, 757-758 (2010):

While delivery of the note might seem a simple matter of compliance, experience during the past several years has shown that, probably in countless thousands of cases, promissory notes were never delivered to secondary market investors or securitizers, and, in many cases, cannot presently be located at all.  The issue is extremely widespread, and, in many cases, appears to have been the result of a conscious policy on the part of mortgage sellers to retain, rather than transfer, the notes representing the loans they were selling.

This “policy” was created by Freddie and Fannie and clouds who actually has legal title to the property (i.e. mortgagee) and who “owns” the note.

First, as noted above, it is important to understand that a mortgage contract is an interest in land and, as such, must be in writing to be enforceable per the Statute of Frauds (or fall within one of the exceptions such as an admission in court).  Any “sale” or assignment to Freddy or Fannie must also be in writing per the Statute of Frauds.  Some states (like Ohio) require such transfers to be recorded.  If you are challenging a foreclosure action, the mortgagor (borrower) should ascertain if a servicer (loan originator or its successor) has sold the mortgage to Freddy or Fannie.  This can be done on line at either:

https://www.freddiemac.com/corporate/

http://www.fanniemae.com/loanlookup/

Chances are Fannie or Freddie “own your mortgage.”  If you are in litigation, you should follow up with targeted discovery requests to the servicer confirming the servicer does not “own” your mortgage.  Moreover, you should inquire and demand any records showing Freddie or Fannie assigned the mortgage to the servicer.  Servicers will point to Freddie or Fannie servicing guidelines which basically provide that the servicer forecloses in its (the servicer’s) own name.  Given a mortgage is an interest in land and the requirement under the statute of frauds that such contracts be in writing, the servicer’s standing to foreclose can be challenged absent some proof that the mortgage was specifically assigned by Freddie or Fannie to the servicer.  Legally, Freddie and Fannie must assign back the note to the servicer.  In fact, Freddie has a specific form 105 to do so.

See: http://www.allregs.com/tpl/Main.aspx [Sections 66.17 and 66.54].

However, Freddie and Fannie’s guidelines have evolved over time and you may find that there is no such assignment in most cases.   Unless there is a written assignment from the mortgage owner (Freddy or Fannie) to the servicer, the servicer cannot foreclose for the simple reason they are not part of the mortgage contract.   Simply put, only the mortgage owner can foreclose on the mortgage contract.  Moreover, if the assignment of the mortgage is invalid or fraudulent, then there is a “cloud on title” which should be identified by title and mortgage insurers.

Second, according to Powell on Real Property section 37.27 (quoted above),

It must be remembered that the mortgagee has two interests: (1) the debt or obligation which is owed to him, and (2) the security interest in land represented by the mortgage ….  In fact, the primary interest is the personalty debt obligation.  The interest in land which is available in case security is necessary because of the debtor’s default is considered a collateral interest.  Much trouble has been caused by mortgagees attempting to transfer only one of these two interests.  Where the mortgagee has “transferred” only the mortgage, the transaction is a nullity and his “assignee,” having received no interest in the underlying debt or obligation, has a worthless piece of paper.

Given what Professor Whitman describes as a “conscious policy on the part of mortgage sellers to retain, rather than transfer, the notes representing the loans they were selling,” it would appear that any alleged “sale” of the note or mortgage to Freddy and Fannie is a fraud.  By analogy, you cannot cash a check that is not in your possession or that is not made payable to or endorsed to you.  Not only is the sale of the note a sham where there is no delivery and/or endorsement of the underlying loan/note to Freddie or Fannie, if their records (per the website) “show that Freddie Mac is the owner of your mortgage”, then the unity of interest (i.e. loan/note and mortgage/security must be transferred together) is destroyed leaving Freddie and Fannie with nothing.[1]

This begs the question: why would Fannie and Freddy have such a policy given the laws governing mortgage contracts and promissory notes?  Consider the fact that Freddie and Fannie are Government Sponsored Entities [GSEs] albeit private corporations owned by the major banks.  It seems to me that Freddie and Fannie have been hijacked by the major banks and are being used to buy up bad mortgages and then seek a bailout from the taxpayers.[2]

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[2] Note:  Freddie and Fannie are major stockholders in MERS which has some of the same legal problems regarding delivery and possession of the note.  http://www.mersinc.org/about/shareholders.aspx