SUE FIRST & ASK QUESTIONS LATER! Der NC Ue ae eae | Practice of False & Forged Signatures Employed by Ocwen & Others tigations Road, Suite 207 lanta, Georgia 30326 404/957-2710 COPIED NCTEttp:twm mstraud.org/Artcles/ >preabearpdf (Predear Report) htip:f/www.moneyfiles.ora/ ‘AMAR: pal (RAMA 21st Century ‘Loan Sharks Report} Executive SummaryOverview ‘SUBPRIME DEBACLE the subprime debacle spirals out of control, attomeys, regulator and the media are beginning to scrutinize the practices of the vari participants in the secondary mortgage market. Increased attention hi been placed on the mortgage servicing practices in recent yea oreclosures douible and triple in many markets and homeowners lo neir homes an \deral and state judges in Ohio, Florida, New York orado, a Jersey have put 2 stop to foreclosures in their juris 1 we found that the named plaintiffs claimed orrower's ld not, support thei , the vast amount of so-called "deficlent” pleadings de he real story of the massive mortgage servicing fraud and c nat has been empl special servicers, default servic sutsourcing sub-servicers and the foreclosure bar since the ea The real story lies behind the opaque veil that Wall Str. rtization, ‘The securitization process creates system and wide practices that are designed to monetiz s that are sold bartered, traded, and transferred at the touc er. The billions of assets that move at ight-speed hav pt up with existing law and regula tment banks and hedge funds in thelr desire to “create profits” have played loose with the rules and th int for this new millennium financing! Very fe individuals, and certainly not the average bor the secur 9 the retur wer, understand th of their mortgages and promis ly is their lender and how they could promissory note they signed stamped n they pay off or refinance their mortgage Americans, as well as judges across the nation, ar ne fact that the and payment collector called a mortgage servicer. This enti Tender or the over of thelr debt obligation that is evidenc promissory note they originally execut n today’s financial markets, promissory notes and the right on those notes called “servicing rights" are traded as eas 3rd with Hite publi in I Street banks and mortgage companies and Federal regulation, have created the opposite of tra Beyer tae, ‘marketing, and foreciosures of home edOverview... An Opaque Veil The creation of Mortgage Industry estimates suggest that over mortgage loans in the Ek Registration ‘Systems past decade Ww ized. Missing assignments pose a ma NERS") has further hindered quagiite for servicer, tustoes, and investors inthe centr r losures. The proper chain of tle and lagal right to foreclosur 2 be frstiine defense in foreclosure actions and even an History ig replete wth banks and lending institutions blinded by a ulire of greed that manipulated ther I nd stock value via x inn lax underwriting standares, and ignorance of laws and regulations. Missing assignments area res ‘of mull-pledging and use ofthe sama fe mortgage lon, to pool nto secures or pledge for at n bankrupley and government ta nancial Insitin ned bite www wolltiem com! + Dove not hs or nd ‘ublications/19‘tm A ind r ners) ret tor tep the pane osu In the article, Mr. Wolf descr hat is known widely inthe To circumvent the mortgage servicers and the secondan Industr fe "missing market have created and mantaines @ number of precices and grment problen Procedures. MERS was briely di ard wit be the sol This “problem can make th nd mortgage a legal nulity in most Another common trade practice Sates, and. tender foreclosure of and fraudulent assignments of mortgages and endorsements be Properties use ft th 1 the alegations being made by th osing party. F ost often the sev nse lawyer int acing the ovmers of tne actual isis batled the Dan promissory nate. Of nealing known frauds and by showing that there were breaks abuses by originator ge brokers from in the chain of title to the loa a tization of concealing th ‘making the loans uncalectibeOverview. Falsifying Assignment of Mortgages & Affidavits Florida foreclosure procedures Eee he | iret sens te Spdsiynide" standards ” We used quotes from the MER: ilustrate how the industry intentionall Is the tru borrower's promissory note. The agencies (Fannie Mae, Freddie Mac and Ginnie Mae) require a when the seller/servicer sells a morigage loan to them. Therefore, the note should remain endorsed in blank when the foreclosure is commenced unless it is legally required to be endorsed to the foreclosing entity and not just the preferred method. If tis required to endorse the promissory note to the foreclosing entity, then the note may need to be endorsed to MERS. However, we have not found ita requirement in Florida that the Note needs to be endorsed to the forectosing entity." "Even though the servicer has physical custody of the note, custom in the mortgage industry is that the investar (Fannie Mae, Freddie ‘Mac, Ginnie Mae or a private investor) owns the beneficial rights to the promissory note “If the promissory note is endorsed in blank and the servicer has physical custody of the note, the servicer will technically be the note holder as well as the record mortgage holder. By virtue of having the sorvicer's employees be certifying officers of MERS, there can be an inhouse transfer of possession of the note so that MERS is considered the note holder for purposes of foreciosing the loan.” tthe following p that it sh ragraph is the most important paragraph for this industry's standard operating procedures and “Employees of the servicer will bo certifying officers of MERS. This ‘means they are authorized to sign any necessary documents as an officer of MERS. The cerifying officer is granted this power by a corporate resolution from MERS. In other words, the same individual that signs the documents for the servicer will continue to sign tho documents, but now as an officer of MERS,” 2 “industry-wide policies ices, and proc ne recent attention and ire of judges across the 1 major publications such at the Wall St. Journal and) New York Tin lories are attached as Exhibit 8 to this repoOverview... Increased Judicial ScrutinyOverview. Now York Judge Schack Decisions f particular importance to this report are the actions of Ocwen in relator Judge Schack in New York appears to have identified these scams and actions stated above In one ruling, Judge "The Court ponders if Suite 100 is the size of Madison Square Garden to house all of these financial behemoths or if there is a more nefarious reason for this corporate togetherness,” he wrote, adding that HSBC would have to write an affidavit explaining the popularity of suite 100.” ach, Florida that Mr. Lavalle has The reference to the location is actually Ocwen’s headquarters in West Palm v . fe and other scams and frauds he had ‘executives and board members about ourt, Kings County, New Yark in the fenture Trustee for the R Note Home Equity Loa Backed Note I, Defendants Judge Schack made the fll aissance Home Equity L aint, vs. Candi ation in his ruling “Adtditionaly, plaintif HSBC must address a third matter itt renews its application for an order of reference. As noted above, Scott Anderson, as Vice President of MERS, assigned the instant mortgage to HSBC on May 1, 2007. Doris Chapman, the Notary Public, stated that on May 1, 2007, ‘personally appeared Scott Anderson, of 1661 Worthington Road, Suite 100, Wesi Palm Beach, Florida 33409." In HSBC Bank, N.A. v. Chery, at 3, | observed that ‘Scott Anderson, in his affidavit, executed on June 15, 2007, states he Is Vice President of OCWEN. Yet, the ‘same Scott Anderson as Vico President of MERS signs the June 13, 2007 assignment from MERS to HSBC. Did Mr. Anderson change his employer between June 13, 2007 and June 15, 2007. The Court is concerned that there may be fraud on the part of HSBC, or af least malfeasance, Before granting an application for an order of reference, the Court requires an affidavit from Mr. Anderson describing his employment history for the past three years. Lastly, the court notes that Scott An inthe N [BC assignment gave his address as Suite 4 This iS also the address listed for HSBC in the assign a foreciosure action that | decided on May 1 Deutsche Bank Nat. Trust Com stellanos, 4 ), Deutsche Bank assigned the mortgage to MTGLQ Investors, LP. Inoted, at 4-5, that MT sl In Apri 25, 2008 in the Supreme Court, Kings New York in the case n sty TSCHE BANK NATIONAL TRUST COMPANY AS TRUSTEE FOR THE CERTIFICATE HOLDERS OF SOUNDVI HOME LOAN TRI copra, D) CERTIFICATES, 006-OPT2, Plaintiff, versus ELAINE GRANT, C NE MORTGAGE, CORPORATIOI Judge ‘Schack made the ‘However, my subsequent dacision, HSBC Bank N.A. v Cherry, 18 Misc 3d 1 102 (A), issued on December 17, 2007, observed that Scott Anderson, on June 13,2007, as Vice President of Mortgage Electronic Registration ‘Systems, inc. (MERS) assigned a mortgago and note to HSBC Bank, N.A., as Trustee for various collateralized debt obligations. Mr. Anderson's assignment lists 1861 Worthington Road, Suite 100, West Palm Beach, Florida 33409 (Suite 100), as MERS addross. Tho assignment also lists Suite 100 as the “affidavit of meni” as “Senior Vice President of Residential Servicing for Ocwen Federal Bank, FSB, servicing agent of HSBC Bank, N.A.”Suspected Ocwen Forgeries Name: Scott Anderson Title: Sr. Vice President By: Scott AndersolBy: Name: Sg6tt Anderso By: Name: Scett Anderson Title: ice President \derson2.pat Michael HannaMICHAEL HANNA \ 1861 Warthinaton Road Siu VW. Faiill Dea, FL, oo4uy Michael Hana 1661 Worthington Road, Suite 1 Michael Hanna 1675 Palm Beac viynicu, scarcy anu upay Nancy Eller Vv 1661 Worthinaton Road. SuiteNANCY ELLER 4BR1 Warthinatan ‘Andersonny_301-169265 img. pat Suspected Ocwen Forgeries (Mr. John Klotz, an attomey practicing election law in New York who has represented the likes of Ted Kennedy and Pat Buchanan, is very familiar with handwriting analysis and the validation of signatures on ballot petitions. He has scrutinized the marks and signatures and consents with Mr. Lavalle's opinion that they were not made by the same person. April Charney, a prominent foreclosure attorney in legal aid in Jacksonville, Florida also finds the various gestalions of Anderson's signature suspect in comparison to ‘documents Anderson has allegedly executed in cases before her While Ocwen's actions may or may not be authorized by power of attorneys as shown in Exhibit D, such agreements do not allow for misrepresentations, fraud, or forgery on each party's behalf. The powers of altorney seem to reference several trustees and servicers, but they do not reference the specific trusts {and pools such authorizations are for. In addition, Mr. Anderson often signs as an officer of a company as well as an agent or attorney-in-fact, Such distinctions are important in executing these important legal documents and for courts and opponents to clearly understand who not only has the right to sue, but collect on the debts of borrowers. ‘At Ocwen’s business website, they advertise the “best loss mitigation in the industry" as ilustrated by the blow chart. The char: below also shows haw clients Ocwen subservices or services can increase cash flow, reduce risk, have greater capacity and better transparency, This seems to be a direct contradiction to the decisions of Judge Schack or as Judge Schack alludes to, a great deal of nefarious collusion between Ocwen and those, disclosed and undisclosed, it serves. { Benefit from the Best Loss Mitigation in the Industry! ) Inctease Cash Flow Reduce the Risk Cin Pen ciy ere feet pier cree) pall: | | | | en | CT ern Bankruptcy coe eee Per Better Greater Copacity Transparency and and Scalability Access to DataOcwen Predatory Servicing Practices rences only confirm what many advocates and act ve known for yea jer a cure of predat cing practice 004, Ocwen Federal Bank, wi based ir gned a written agreement v fice of Thrift Si on ( ‘agreeing to improve its compliance with the Real Esta rocedures Fair Debt Collection Practices Act and the Fair Credit Reporting Act. I order to skirt the enforcement of the OTS agreement, Ocwen Federal ceased its operations by a voluntary dissolution.” In that arrangement, Ocwen Financial sold the bank's Fort L 2 to Marath National Bank of Astoria, N.Y., and transferred its assets and labios to several other banks In 2005, a Galveston, Texas jury awarded a Texas City woman $11.5 million after finding that O% fengaged in a scneme of unfair, unlawful and deceptive business practices in its servicing of her home uty loan. In Fabr out a $31,000 home equity loan on the Texas Ci residence where she sity years. Qcwen acted as the servicing agent on the loa unlawfully foreclos stance surrounding the foreclosure and other similar s should shed light to nat only th ion of such a servicer, but to highly aggressive and predatory techniques that would be ai sulure of greed and corruption, In 2003, Ms. D il and spent four days in the ich forced her to miss one loan payment. Ocwen informed her it would put her on a payment id. Ocwen also falled to credit Ms. Davis for the mone id paid, and began n her house while continuing to assure her she was on a payment plan, owen then IMs. Davis’ home, and she fled for Chapter 13 bankruptcy in the jltonal and saving her hon y years! In the bankrup Wen request costs and fees related to the default she already cured in prior payment Al tia, @ former Ocwen employee tested to the company's unfair practices, incl ving incent Toan collectors for mov with equity into foreclosure. Evidence also showed that the pany engaged in predal icing by not informing borrowers of how to make thelr loans current failing to give cred ments on the ney were made. Ina 10-2 vote, the jury found that wen knowingly and intentionally deceived Ms. Davis, d her $10 millon in punitve damages '§1.15 millon in attomeys fe In another similar Ocwen case in Corpus Christ, the same law firm obtained another milion witnesses, ina Corpus Christi County Court, the jury awa ‘malice’ in their conduct Supported by testimony adduced by tw smplian list who qui is consci 1nd dollars per month manufactur got the better of him - a closures against inn king up num ofl they insu @ instead of payof, forge: von from tt business of Ocwer ported that another companion suit, that involved a dec burt 15 minutes after Guzman e a jury. It'soems that Ocwen simphConclusion