So yesterday I grabbed the mail as per usual and was sifting through the usual garbage. Bill-toss it. Bill-toss it. Carpet cleaning deal - toss it. Coupons for haircuts - toss them. Attorney General - what's this? - probably looking for campaign contributions or some crap but then noticed the words "class action settlement"
I was thinking - "Probably get 15 cents and coupon for a free cat grooming"
Usually I toss those as well but this said I was getting just short of $40,000 in settlement with the Morgue for stealing peoples money. NICE. What's the catch. None it gets applied to the mortgage principle or if the house was sold it goes into your checking account. NICE.
So I started doing a little digging as this was the first I heard of it.
Full details here and of course the Morgue is admitting no fault. http://msmaagosettlementfund.com/notice.php
I'll save you a little reading even though it's pretty readable and not the usual legal mumbo jumbo where you recognize the words as English but you need an interpreter to re arrange the words. The Morgue was accused of the following;
1. Doing business with a bunch of crooks known as New Century who filed for bankruptcy in 2007 as they were underfunded and relied on volume to have any hope of keeping the lights on week to week.
2. Because they were dealing with a bunch of broke ass crooks they liked to front run them by buying the notes that were not even signed for by the broke ass homeowner yet. In other words they bought and sold things THEY DID NOT OWN. Don't try this at home as you will go to jail if you sell your neighbors property. Broken chain of title right here.
3. They then chopped up these loans and mixed them in with a pool of good loans and sold them. Sometimes before the homeowner had signed on the dotted line. So now we have a broken chain of title just on this little piece of info.
4. New Century sucked it's clients in by offering low teaser rates that they promised to refi at a later date at a fixed rate.
5. Qualification was based on the teaser rate. It was not based on the reality that it would reset at some point. In other words the loans were made on the premise the homeowner would have to refi. That's illegal in some states for obvious reasons.
6. The Morgue consistently ignored under writing guidelines both internally and from independent analysis Clayton Services Inc. So the Morgue knew they were buying and selling crap. Approx 1/3 of a random sampling didn't pass common practice guide lines.
7. The Morgue deliberately showed and sold their clients the numbers based on the teaser rates.
8. They knew the stated income or no doc loans were way out in cloud 17 or so.
9. Having identified all these problems they continued this stupidity for 2 years until the housing market collapsed.
10. Towards the end of this mess in 2007 New Century was having serious liquidity problems so the Morgue fronted the money before signatures were obtained. The Morgue secured assets from New Century to cover their asses. It is not stated in the document what these were.
11. The Morgue used liquidity from Massachusetts pension funds for cash flow and sold them this bundled crap.
12. Nobody goes to jail for this. Nobody admits any guilt for this and life goes on.
Sometimes the little guy does get a little justice. Although, I wonder how many of the people who got this letter no longer have their homes.
Sorry folks I don't have anything about Wynter Benton
I was thinking - "Probably get 15 cents and coupon for a free cat grooming"
Usually I toss those as well but this said I was getting just short of $40,000 in settlement with the Morgue for stealing peoples money. NICE. What's the catch. None it gets applied to the mortgage principle or if the house was sold it goes into your checking account. NICE.
So I started doing a little digging as this was the first I heard of it.
Full details here and of course the Morgue is admitting no fault. http://msmaagosettlementfund.com/notice.php
I'll save you a little reading even though it's pretty readable and not the usual legal mumbo jumbo where you recognize the words as English but you need an interpreter to re arrange the words. The Morgue was accused of the following;
1. Doing business with a bunch of crooks known as New Century who filed for bankruptcy in 2007 as they were underfunded and relied on volume to have any hope of keeping the lights on week to week.
2. Because they were dealing with a bunch of broke ass crooks they liked to front run them by buying the notes that were not even signed for by the broke ass homeowner yet. In other words they bought and sold things THEY DID NOT OWN. Don't try this at home as you will go to jail if you sell your neighbors property. Broken chain of title right here.
3. They then chopped up these loans and mixed them in with a pool of good loans and sold them. Sometimes before the homeowner had signed on the dotted line. So now we have a broken chain of title just on this little piece of info.
4. New Century sucked it's clients in by offering low teaser rates that they promised to refi at a later date at a fixed rate.
5. Qualification was based on the teaser rate. It was not based on the reality that it would reset at some point. In other words the loans were made on the premise the homeowner would have to refi. That's illegal in some states for obvious reasons.
6. The Morgue consistently ignored under writing guidelines both internally and from independent analysis Clayton Services Inc. So the Morgue knew they were buying and selling crap. Approx 1/3 of a random sampling didn't pass common practice guide lines.
7. The Morgue deliberately showed and sold their clients the numbers based on the teaser rates.
8. They knew the stated income or no doc loans were way out in cloud 17 or so.
9. Having identified all these problems they continued this stupidity for 2 years until the housing market collapsed.
10. Towards the end of this mess in 2007 New Century was having serious liquidity problems so the Morgue fronted the money before signatures were obtained. The Morgue secured assets from New Century to cover their asses. It is not stated in the document what these were.
11. The Morgue used liquidity from Massachusetts pension funds for cash flow and sold them this bundled crap.
12. Nobody goes to jail for this. Nobody admits any guilt for this and life goes on.
Sometimes the little guy does get a little justice. Although, I wonder how many of the people who got this letter no longer have their homes.
Sorry folks I don't have anything about Wynter Benton
5 comments:
Friday is options expiration and up to now it would appear that the market has been supported enough to try and get it back to pin the market. Information from around the globe is coming out faster than can be deciphered and traded. Some time ago I suggested that we might see a massive selloff. Mostly to help the FED keep it's Ponzi Scheme going by sucking in new investors for T-Bills and to keep selling new debt. It would appear that we may be on the verge of a collapse of our global markets only delayed by the amount of mis-information and lack of creditable information from Japanese officials. I believe it is the philosphy of the current administration to never let a good catastrophe go to waste. Now is the time for risk management and definitely be careful of any bounce in the market we may get tomorrow or Friday. The failure of the Japanese economy will adversly effect the entire global market place in so many different ways over the next few weeks as this progresses. The variables are numerous, most you can't even plan for. Now is not the time to chase returns. Let's be careful out there!
Jack C
[reset links] JC, what do you think of Trader Dan's view http://traderdannorcini.blogspot.com/2011/03/this-is-not-2008.html?
It seems to me everyone is being deliberately distracted by the panic and the puppetmasters behind said panic - to me the real question is why (the distraction)? What is it they don't want us to be focussing on? The middle east? The ETF physical silver and gold fraud? Mortgage fraud? The money powers need excuses at this point to prop things up with printing, otherwise the losses would be excruciating. The more I look at it, it would seem that a Freegold finality is the only logical outcome - and this is known to them - they are just buying time to position themselves and scalp as many hapless investors along the way. The too-big-to-prosecute will always find a way to gag and bind the law (and liberty).
Wow Missed all the fun on the overnight.
It's a quad witching event on Friday btw.
Warren,
I think some of Dan's views are spot on about this not being 2008, but I would disagree about certian things and I think you will have to be very careful about what investment choices you make moving forward. Short term over the next 2 days, I am looking for a bounce in the market to take advantage of option expiration and expire those options worthless. I am looking for the S&P to get back to the 131-132 area by virtue of the SPY. Even this morning the news seems to have a more positive spin about it to try and get some momentum. Of course, the situation in Japan will control this view and if the news takes a dive, I would have to flow with the market. In addition the situation in the Middle East is a powder keg and I am looking for oil prices to move much higher, so any pullback in the market I would view as a buying opportunity in oil related stocks, possibly NG and Coal as well due to the negative views Nuclear are going to get. In addition, quite a bit of agricultural land and supply stocks were destroyed in the tsunami. AG stocks would be viewed on my favorite list as well. Because the need for money in Japan, they will not be buying T-Bills for a long time. That is a huge hit to the FED, so more QE is coming in some form and probably a lot of it. So long term I am very bullish on both gold and silver, but concerned over a short term correction with commodities if a selloff should unfold. Don't underestimate the will of the EE to jump on any advantage to knock the prices back if at all possible. I would be picking up more physical if you have the means to do so. I would not be surprised that the players that are keeping the price have huge deposits of Gold and Silver themselves including Big Ben and all the other former and current Fed Gov's.
The supply chain effects of Japan will start to hurt the market in the next couple weeks and you will start to here more about it going forward. You have millions of middle class citizens in Japan out of work and unable to consume their normal patterns. In addition, many local businesses that require daily business visits of these people and travelers are going to go out of business due to lack of traffic. This can go on and on.
Jack C
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