Lenders face fraud scrutiny on foreclosures

Boot Camp graduate Linda Tirelli is featured in a lohud.com article about fraudulent documents being used to foreclose on homeowners.

Linda M. Tirelli is furious, yet she can’t help but laugh as she fingers through file after file of what she says are “so obviously fake” and fraudulent foreclosure documents.

“What I want is the truth. Don’t make up documents and tell me a lie,” said Tirelli, a White Plains bankruptcy attorney. “This is serious stuff. If we did that, we would be hauled away in handcuffs. But the banks that are ‘too big to fail’ think they are also too big to follow the rule of law.” …

What raised a legal red flag was the assignment of Franklin’s $145,850 mortgage to Wells Fargo from Washington Mutual Bank FA, said Tirelli, Franklin’s lawyer.

Firstly, the transfer was dated July 12, 2010 — months after Wells Fargo had initiated foreclosure proceedings.

But the paperwork also was signed by a man named John Kennerty, who testified he would sign up to 150 foreclosure documents daily as a vice president of loan documentation for Wells Fargo.

On Franklin’s assignment of mortgage — prepared through the Mortgage Electronic Registration System, which itself has come under scrutiny — Kennerty signed as an assistant secretary for Washington Mutual Bank FA, which had long been defunct.

“How could he possibly be an officer at a bank that doesn’t exist? What we have here is a party who works at Wells Fargo signing papers to benefit Wells Fargo,” Tirelli said. “It’s not a mistake. It’s not an accident. It’s not shoddy paperwork. It’s not sloppiness. This is a purposeful assignment that was manufactured for the purpose of this bankruptcy proceeding.”

Wells Fargo did not respond to requests for comment.

When an assignment of mortgage is signed by an officer of a bank that is no longer in existence, it does make it easier to tell that the assignment being submitted to the court is pure fabrication.  Thank you Mr. Kennerty.  But in his defense, I suppose when you’re signing hundreds of documents a day as officers of many different banks, it can be easy to forget if one of those banks isn’t even in existence anymore.

The part that’s harder to understand is why there are still some judges that don’t seem to care that they are being lied to. Is it much less offensive when the party submitting fraudulent documents is a large multi-million dollar corporation whose standards of operation calls for committing systemic fraud and throwing people out of their homes without bothering to research whether the facts in any particular case are true or not?