The Day the LPS Music Died

Reuters published a must read article today, Special report: Legal woes mount for a foreclosure kingpin, in which they describe how a Reuters investigation shows that LPS’s legal woes are more serious than their CEO, Jeff Carbiener, let on. Public records reveal that the company’s LPS Default Solutions unit produced documents of dubious authenticity in far larger quantities than it has disclosed, and over a …

Fisking the American Securitization Forum’s Congressional Testimony

From Credit Slips by Georgetown Law Professor, Adam Levitin. Tom Deutsch, the Executive Director of the American Securitization Forum (ASF) testified before the Senate Banking Committee this past week about chain of title problems in securitization.  I was fascinated to see how much attention the ASF spent in attempting to rebut my testimony from a pair of previous hearings (here …

American Securitization Forum Tells Monstrous Whoppers in Senate Testimony on Mortgage Mess

The Senate Banking Committee had hearings yesterday, part 2 of problems in mortgage servicing from modification to foreclosure. Yves Smith of Naked Capital has a lot to say about the testimony of American Securitization Forum executive director Tom Deustch. Here is an excerpt. Deutsche gave one of the most outrageously dishonest presentations I can recall ever seeing, and readers know …

Banks Seeking to Foreclose Face More Questions About Legal Standing

Via by Marian Wang ProPublica, Nov. 30, 2010 As we’ve noted, banks seeking to enforce foreclosures must demonstrate that they have proper documentation proving their right to enforce a foreclosure—meaning they have the legal standing to enforce the foreclosure either as the holder of the note or as an agent acting on behalf of the holder. In bankruptcy court, this …

BofA Mortgage Morass Deepens After Employee Says Notes Not Sent

Bankruptcy Boot Camp graduate Bruce Levitt is interviewed in this Businessweek article regarding Bruce’s breakthrough case against BofA.  Max is quoted as well. Wizmur’s ruling is being scrutinized by lawyers for borrowers seeking to stall repossessions as a way to press lenders to modify their debt. Attorneys for homeowners have already won cases by calling into doubt the legitimacy of …

Don’t Just Tell Us. Show Us That You Can Foreclose.

Boot Camper David Shaev is quoted by Gretchen Morgenson in this New York Times piece. AFTER examining their foreclosure practices for flaws in mortgage documentation and other procedures, many of the nation’s largest banks have resumed — or will soon resume — trying to evict defaulted borrowers. … “If we find any foreclosures in error, we will fix them,” JPMorgan …

The Big Fail

Wonderful post by Adam Levitin at Credit Slips about the technical requirements of securitization and how the industry often failed in that process. At the end of the post he comments on how this effects homeowners. Chain of title doesn’t affect whether homeowners are in default on their loans.  The loans’ validity is not in question because of chain of …