Homeowner Adversaries


The Homeowner Adversaries consist of, among other groups and individuals, wall st., the mortgage banking industry, mortgage servicers, big banks and the third-party providers of foreclosure-related services, all of them joining forces to steal homes and property from law-abiding American citizens. These individuals and organizations comprise the "Who's Who" of those believing themselves to be deserving of great wealth, power and privilege, at the expense of the lives and well-being of law-abiding American Homeowners.  The adversarial individuals and organizations also possess a conscious disregard for morality, honesty, integrity and the rule of law. 

Stories from Homeowner Adversaries

Tuesday, December 3rd, 2013

The nation's four largest banks are holding $57 billion of seriously delinquent loans that they've been slow to move into foreclosure over concerns that the Federal Housing Administration, the government mortgage insurer, will refuse to cover the losses and hit them with damages, according to industry sources.  The banks — Bank of America (BAC), Citigroup (NYSE:C), JPMorgan Chase (JPM), and Wells Fargo (WFC) — have assured investors in the footnotes of quarterly filings that the loans are government-insured and therefore pose no threat to their bottom lines....


Wednesday, November 6th, 2013

"It is important to understand that no decision has been made on the merits of this case.  Judge Breyer ruled that the case is not ripe, which is a ruling made on timing.  Today's ruling does not mean Richmond's plan is legal; indeed SIFMA believes the use of eminent domain to seize mortgage loans contains numerous Constitutional and other legal defects, and that it would represent a flagrant misuse of a municipality's power.


Wednesday, September 4th, 2013

A new legal industry, it might be said, has emerged in many states in response to the sustained high level of foreclosures.

The prime movers in this legal niche are attorneys advising financially distressed property owners on any of four possible objectives:

• Getting a temporary (about 10 days) restraining order.

• Obtaining a preliminary injunction, which usually lasts until the case is decided.

• Receiving a permanent injunction with a favorable court ruling.



Thursday, August 8th, 2013

Ally Financial Inc. (Ally), along with Residential Capital, LLC (ResCap) and ResCap's major creditors, completed the next step in implementing the comprehensive settlement agreement and Chapter 11 plan. ResCap filed a motion seeking court approval of the plan support agreement in the bankruptcy proceedings, which includes announcement of the terms of the Chapter 11 plan in connection with the comprehensive plan support agreement. 

As previously announced, under the settlement brokered by the court's mediator, the Honorable James Peck, ResCap and its major creditors agreed to support a Chapter 11 plan in ResCap's Chapter 11 cases that contains broad releases for the benefit of Ally. 


Monday, July 1st, 2013
Attorneys at Irell & Manella LLP secured the dismissal of a 306 count indictment against their client for an alleged role in a robosigning scheme at Lender Processing Service Inc., uncovering prosecutorial conflicts of interest and overcoming tragic case developments, including the suicid e of a key witness.
Nevada state prosecutors indicted LPS title officer Gary Trafford in November 2011 for allegedly instructing employees to fraudulently sign his name on and notarize scores of documents to fast forward lengthy foreclosure processes.
Chief Deputy Attorney General John Kelleher said at the time that the robosigning scheme involved the submission of tens of thousands of fraudulent documents to the states. 

Thursday, June 20th, 2013

Three additional state agencies announced this week that they will join a new nationwide mortgage loan officer test with a uniform state component, bringing the total number of agencies to 30.

The Indiana Secretary of State, the Montana Division of Banking and Financial Institutions and the Wyoming Secretary of State announced adoption of the National SAFE MLO Test Component with uniform state content effective July 1.  They join 28 other state agencies that will no longer require a second state-specific test component to be taken by mortgage loan originators seeking licensure with their state agencies.  


Monday, April 22nd, 2013
Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced the appointment of John Snow, Ph.D., former Secretary of the Treasury, to its board of directors.

“We are fortunate to have John as a member of the board,” said Lee A. Kennedy, chairman of the LPS board. “John’s experience in managing large regulated public companies and his expertise in the areas of regulation, public policy and risk management will enhance the board and the value we bring to the organization and its shareholders.”
Tuesday, December 18th, 2012

Wells Fargo (WFC), U.S. Bancorp (USB), PNC Financial Services Group (PNC), Bank of America (BCA), SunTrust (STI) and Citigroup (C) all said this week they plan to halt until after New Year's evictions of borrowers whose homes have been foreclosed on for loans the banks' own.

U.S. Bank, PNC and Citigroup will offer the moratorium from Dec. 17 through Jan. 2. Wells Fargo and SunTrust will start their suspensions two days later.

Wells Fargo and U.S. Bank will halt evictions and hold off on foreclosure sales nationwide, according to spokespeople for both banks, while PNC says it will suspend evictions.


Tuesday, November 27th, 2012

U.S. states vary dramatically in their mortgage laws. The laws across states differ in the legal theory underlying the mortgage contract and in how they balance the rights of creditors with those of borrowers. Moreover, the differences across states arose relatively early in America’s history. In a popular 19th century American treatise on mortgage law, Jones (1879, ch. 30) observes:

"An examination of the statutes of the several states in relation to the foreclosure of mortgages can hardly fail to surprise one at the great diversity of systems in use, and at the difference in detail between those which are based on the same general principles. "Despite at least four distinct attempts over the last century to create a uniform mortgage code, mortgage today continue to be governed by a very diverse set of state laws.


Wednesday, October 3rd, 2012

SACRAMENTO, Ca. – Martin Wayne Flanders, 48, and Ligia Sandoval Spafford, 46, of Roseville, were arrested on Monday on a complaint charging them with orchestrating a fraud scheme targeting distressed homeowners, U.S. Attorney Benjamin B. Wagner announced.

Flanders was also charged with conspiracy to commit bankruptcy fraud for filing sham bankruptcy petitions as part of the fraud scheme. The complaint was filed last Friday in Sacramento, and unsealed after the arrest on Monday. Flanders and Sandoval were expected to make their initial appearances in court Monday afternoon in Sacramento.


Monday, July 30th, 2012

Chicago is the latest city to pass a resolution to hold hearings on whether to use eminent domain to seize underwater mortgages from private investors.

On Wednesday, Chicago's City Council adopted a resolution to explore a plan that would "purchase underwater mortgages out of securitized packages of loans at a steep discount, write them down to fair market value, and then create a new mortgage with a much reduced principal and monthly payment."

The Chicago resolution comes on the heels of a proposal last month by San Bernardino County and the cities of Fontana and Ontario, in California, which created a Joint Powers Authority to explore whether to use eminent domain to buy mortgage loans.


Wednesday, July 18th, 2012

FGG EDITORS NOTE:  Will Constitutional Challenges To Stabilizing Foreclosure-Ravaged Communities Via Eminent Domain, Backfire On The Opponents To The Plan And Instead Expose The Fraudulent Underbelly Of Mortgage Securitization?


New York, NY, July 17, 2012—SIFMA today released a legal memo drafted by law firm O’Melveny & Myers, LLP at the request of the Association that addresses the numerous legal and Constitutional problems with a proposal created by Mortgage Resolution Partners (MRP) and being considered by the County of San Bernardino in California to use eminent domain to acquire mortgage loans.   


Tuesday, July 17th, 2012

“First.  The use of eminent domain will do more harm than good.  The worst harm will be felt by San Bernardino residents themselves, as they find it harder or impossible to obtain credit.

“If performing mortgage loans are taken from their holders, this will cause significant losses to those holders, and cause those who fund mortgage loans to act very cautiously.  When loans are taken from securitized pools, the losses will be borne by the pension plans and individual citizens who are invested in the securities.  It will not address those borrowers who are delinquent.

“We need mortgage investors and lenders to come back to these fragile markets – but this plan will force both groups to avoid them.  


Thursday, July 12th, 2012

The eighteen organizations listed above write this letter to express our strong objection to the Joint Powers Agreement (the "Agreement") that contemplates the implementation of a so-called  “Homeownership Protection Plan.”  Based on publicly available information on the Agreement, we are very concerned that the good intentions of the City Council will instead result in significant harm to the residents the Agreement intends to help.

The Agreement proposes the use of eminent domain to seize mortgage loans from private investors through condemnation, in order to force a restructuring of the mortgage.  We believe that the contemplated use of eminent domain raises very serious legal and constitutional issues.  It would also be immensely destructive to US mortgage markets by undermining the sanctity of the contractual relationship between a borrower and creditor, and similarly undermining existing securitization transactions.  Such an action would likely significantly reduce access to credit for mortgage borrowers in the Fontana area and other areas that undertake similar actions.


Monday, September 12th, 2011

Bank of America Corp. (BAC) may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, said two people with direct knowledge of the talks.

The firm may pursue an accord with most of the 50 state attorneys general, even if it omits New York’s Eric Schneiderman and at least two other states who are opposed because a deal would impede related inquiries, said one of the people. Negotiations on a broad settlement stalled after Schneiderman indicated he wouldn’t let it block his probe into the bundling and sale of mortgages, said the people, who declined to be identified because talks are private.


Monday, May 16th, 2011

In this Mission Report, the company has presented a number of estimates, forecasts, expectations and other forward-looking statements, including statements regarding the company's future results;  the profitability of its loans;  the performance and caliber of loans it has acquired and will acquire;  its credit loss reduction efforts;  it's planned homeowner initiatives;  and macroeconomic factors, such as growth in the US economy, housing activity, and household formation.  These estimates, forecasts, expectations, and statements are forward-looking statements and are based on the company's curent assumptions regarding numerous factors, including assumptions about future home prices and the future performance of its loans.

The company's future estimates of thes amounts, as well as the actual amounts,

Sunday, March 6th, 2011

WASHINGTON — Federal regulators issued a tough opening salvo in settlement talks with the largest servicers, presenting them with a 27-page term sheet that would force major changes to the industry and step up loan mitigation efforts.

Under the term sheet, servicers would be pressured to offer principal reductions while revamping foreclosure proceedings, borrower records, and technology processes.

Sources familiar with the situation cautioned that the term sheets are a "beginning shot" to open negotiations with servicers, and will likely change as the process moves forward. The term sheet does not include a monetary penalty

Wednesday, March 2nd, 2011

The “Robo Signing” Scandal

In the fall of 2010, numerous news stories broke regarding a “scandal” in mortgage foreclosure actions across the United States. To the lay person, the media made it sound as though millions of foreclosures were occurring without the paperwork being in proper order, and that ordinary citizens were at risk of losing their homes without any justification. Of course, the truth was far from the impression created in the minds of the public.

The truth was that witnesses at depositions in garden variety foreclosure cases had offered imprecise testimony about signing “thousands” of affidavits every week, under circumstances that led to the conclusion that those affidavits were not based on personal knowledge and that the witnesses had not actually reviewed the records they were basing their testimony on. Many of the mediastories – including the very first story that kicked off the “scandal” –

Monday, February 28th, 2011

Real Estate Settlement Procedures Act12 U.S.C. § 2601, et seq. (“RESPA”)• Consumer protection statute, first passed in1974• Original purpose was to help consumers become better shoppers for settlement services,and eliminate kickbacks and referral fees that needlessly increase the cost of certain settlement services• Also includes rules for servicers dealing with servicing transfers, escrow accounts, and borrower inquiries.

RESPA § 6“  Duty of loan servicer to respond to borrower inquiries”• Qualified Written Request (QWR):– Received from the borrower or an agent of theborrower (other than notices on a payment coupon)– Relating to the servicing of the loan– Identifies the name and account of the borrower– “Includes a statement of the reasons for the belief ofthe borrower, to the extent applicable, that theaccount is in error or provides sufficient detail to theservicer regarding other information sought by theborrower” 12 U.S.C. § 2605(e)(1)(B)(ii)

Friday, February 25th, 2011

• Common claims:•TILA– failure to provide Notice of Right to Cancel or TIL•RESPA– fee overcharge, fee split, nondisclosure of YSP, failing to respond to QWR•Unfair Business Practices– suitability, predicated on statutory violations•Fraud– misrepresentation re loan terms (interest rate, negative amortization,prepayment penalty, ability to refinance later, assurances re property value increase,etc.)•Negligence– failure to properly apply payments, suitability•Breach of Fiduciary Duty– suitability, negotiating modifications, forbearanceagreement•Breach of Contract– impounding for taxes, forbearance agreement•Breach of Implied Covenant– negotiating modifications, forbearance agreement•Quiet Title– lender cannot produce note, fraud, TILA rescission•FDCPA– default and foreclosure notices•Odds & Ends– RICO, ECOA, FHA, produce the note, “vapor money” theories