Latest topics
» Humans Can Detect Events 1-10 Seconds Before They Occur, Scientists Say
Today at 3:17 pm by PurpleSkyz

» Fireball that exploded over the US Thule Air Base in Greenland shook Earth, triggering seismic sensors
Today at 3:09 pm by PurpleSkyz

» Wild Fox gets frightened by the sudden appearance of a bright Orb. take a look!
Today at 3:05 pm by PurpleSkyz

» Royal Family Implicated Again In A New Court Case About Pedophilia & Sex Slavery
Today at 2:59 pm by PurpleSkyz

» WikiLeaks Founder Julian Assange Examined By Doctors As MSM And Democrats Push Fake News Story On Meeting With Paul Manafort
Today at 2:54 pm by PurpleSkyz

» China Mission in Lunar Orbit and May Race SpaceX for Next Lunar Manned Mission
Today at 11:44 am by PurpleSkyz

» Carpet Bomb Just Dropped, Did You See How It Works - X22 Report
Today at 11:41 am by PurpleSkyz

» Strange phenomena occurring prior to earthquakes!
Today at 11:39 am by PurpleSkyz

» NIBIRU News ~ Why news media do not speak of what we see? plus MORE
Today at 11:38 am by PurpleSkyz

» Heads Up! Comet 46P/Wirtanen Streaks By Earth This Weekend
Today at 11:28 am by PurpleSkyz

» UFO News ~ UFOs and Anomalies in the picture NASA Parker Solar Probe's WISPR plus MORE
Today at 11:27 am by PurpleSkyz

» Blue Chicken Cult - BEHIND MAJESTIC INTERVIEW SERIES WITH DAVID WILCOCK Part 1,2,3,4,5 of 6
Today at 11:18 am by PurpleSkyz

» THC, Not Just CBD, Can Treat Pediatric Epilepsy
Today at 11:14 am by PurpleSkyz

» The Puzzle of Near-Death Experiences
Today at 10:58 am by PurpleSkyz

» Science Confirms Paradise Camp Fire Manmade; Genocide and Mass Destruction Carefully Planned
Today at 10:55 am by PurpleSkyz

» 12/13/18 Hearing on Crimes of the Clinton Foundation: THE FINDINGS
Today at 10:52 am by PurpleSkyz

» The Simpsons Predicted California Wildfires In 2016
Today at 10:48 am by PurpleSkyz

» ‘Incredible Hulk’ Star Hospitalized After Routine Vaccination
Today at 10:18 am by PurpleSkyz

» What Happened to History & Where Are We Going?
Today at 10:16 am by PurpleSkyz

» DARK JOURNALIST X-SERIES 39: HEMINGWAY CURSE CIA & X ATLANTIS BIMINI RISING!
Yesterday at 11:22 pm by PurpleSkyz

» POOFness for DEC 14: ZAP Part 2 DAMAGE CONTROL SO BUY MY LAPIS AND PREPARE TO DRINK THE POISON!
Yesterday at 11:12 pm by 4-truth

» Bad-clown Rising - CASTRO PHYSICS
Yesterday at 3:10 pm by PurpleSkyz


CLICK THE SUBSCRIBE BUTTON BELOW TO RECEIVE OUR DAILY NEWSLETTER

A 2ND EMAIL COMPLETES THE ACTIVATION PROCESS




CLICK THE PURPLE BUTTON TO VIEW OUR LATEST POSTS




You are not connected. Please login or register

Out Of Mind » VOICES CARRY ~ HEAVY DISCERNMENT REQUIRED - QUESTION EVERYTHING » ANNA VON REITZ » in the starkest of terms federal judge dealt a strong blow—two banks misled Fannie Mae and Freddie Mac

in the starkest of terms federal judge dealt a strong blow—two banks misled Fannie Mae and Freddie Mac

Go down  Message [Page 1 of 1]

PurpleSkyz

avatar
Admin

in the starkest of terms federal judge dealt a strong blow—two banks misled Fannie Mae and Freddie Mac

Posted on May 20, 2015 by arnierosner
http://news.acts.co.za/blog/2015/05/banks-slammed-for-securitisation-fraud-in-us-court
Banks slammed for securitisation fraud in US court
excuse me….What about securitisation of birth certificates?  

Posted 19 May 2015 Written by New York Times
Category Securitisation
A New York judge this week came out swinging against against two banks, Nomura Holdings and Royal Bank of Scotland, saying the banks’ misconduct exacerbated the collapse in the mortgage market, according to the New York Times.
“The origination and securitization of these defective loans not only contributed to the collapse of the housing market, the very macroeconomic factor that defendants say caused the losses,” wrote Judge Denise Cote, “but once that collapse started, improperly underwritten loans were hit hardest and drove the collapse even further.
Many on Wall Street have long argued that the banks did not generally break the law when they packaged shoddy mortgages and sold them to investors in the lead-up to the financial crisis of 2008.But on Monday, in the starkest of terms, a federal judge dealt a strong blow to that version of history. She ruled that two banks misled Fannie Mae and Freddie Mac in selling them mortgage bonds that contained numerous errors and misrepresentations.
“The magnitude of falsity, conservatively measured, is enormous,” Judge Denise L. Cote of Federal District Court in Manhattan wrote in a scathing 361-page decision.
The ruling came in a closely watched case brought by the government against the Japanese bank Nomura Holdings and Royal Bank of Scotland. They were the only two of 18 financial firms that took their case to trial, arguing that it was the housing crash, and not deceptive loan documents, that caused the bonds to collapse.
Thel judge ruled that the two banks misled Fannie Mae and Freddie Mac in selling them mortgage bonds that contained numerous errors and misrepresentations.
The other firms — including Goldman Sachs and Bank of America — settled, together paying nearly $18 billion in penalties but avoiding a detailed public airing of their conduct.
The government, under pressure to hold Wall Street accountable after the crisis, has pursued a wide range of actions against domestic and foreign banks. Agencies including the Justice Department and the Securities and Exchange Commission have reached multibillion settlements.
But some of the government’s biggest wins — including its victory on Monday — have come from an unlikely source: the Federal Housing Finance Agency, a relatively obscure Washington entity set up to oversee Fannie Mae and Freddie Mac, the beleaguered government-sponsored enterprises rescued by taxpayers in September 2008.
The agency’s lawyers have aggressively pursued the banks, helping the government secure big-dollar settlements. But unlike the relatively opaque settlements, the trial against Nomura and R.B.S. opened a window into the behavior of banks heavily involved in subprime mortgages at the peak of the housing boom.
Judge Cote, and not a jury, decided the case, after the government dropped a claim that would have entitled the banks to a jury. After that, legal experts became more pessimistic about the banks’ chances: Judge Cote has a reputation for taking a hard line against the banks. They also expressed surprise that the Nomura and R.B.S. did not settle, though some suspected that as foreign banks, they were less concerned with risking their reputations in the United States.
Judge Cote has asked the F.H.F.A. to submit a proposal for damages, which are expected to be about $500 million. “It is clear the court found that the facts presented by F.H.F.A. were convincing,” Alfred M. Pollard, the agency’s general counsel, said in a statement.
A Nomura spokesman, Jonathan Hodgkinson, said the bank plans to appeal the decision. “Nomura is confident that it was consistently candid, transparent and professional in all of its dealing with Fannie Mae and Freddie Mac,” he said. A spokesman for R.B.S. could not immediately be reached for comment.
Judge Cote’s ruling described a dangerous and toxic period in the American economy. As house prices were soaring, Wall Street banks were purchasing high-risk mortgages and then bundling them into bonds that were sold around the world. As this huge mortgage machine churned on, the quality of the loans plunged.
Some financiers and housing industry analysts have since asserted that, while Wall Street was acting out of greed and with a cavalier disregard for risk, it did not act deceptively. But Judge Cote, in her order, took a dim view of the banks’ conduct. She said that loan guidelines were “systematically disregarded” and found “disturbing examples” showing that Nomura was willing to package and sell defective loans.
“This case is complex from almost any angle, but at its core there is a single, simple question. Did defendants accurately describe the home mortgages in the offering documents for the securities they sold that were backed by those mortgages?” she wrote in her decision. “Following trial, the answer to that question is clear. The offering documents did not correctly describe the mortgage loans.”
Judge Cote described Nomura as a late-to-the-party participant in the mortgage boom that cut corners to win business, which, she asserted, led the bank to stuff the pools of mortgages that it sold to Fannie Mae and Freddie Mac with defective loans. The Federal Housing Finance Agency, which was represented by Quinn Emanuel Urquhart & Sullivan, said two-thirds of the mortgage loans underlying the securities had underwriting defects.
“As its witnesses repeatedly described and as its documents illustrated, Nomura’s goal was to work with the sellers of loans and to do what it could to foster a good relationship with them,” the judge wrote. “Given this attitude, it is unsurprising that even when there were specific warnings about the risk of working with an originator, those warnings fell on deaf ears.”
During the trial, expert witnesses performed analyses of some of the loans backing the disputed bonds. The experts brought in by the housing finance agency said far more of the loans than the documents stated had characteristics that made them much more likely to default.
Lawyers for Nomura and R.B.S. argued that those experts’ analyses were seriously flawed. In his closing argument last month, David B. Tulchin, a lawyer for Sullivan & Cromwell, representing Nomura, called the experts’ methodologies “entirely artificial in the extreme.”
The banks’ lawyers could argue on appeal that even though Fannie Mae and Freddie Mac took steep paper losses on the bonds, their actual losses have been small. All payments on the roughly $2 billion in bonds have been made, except for about $25 million, according a member of Nomura’s legal team, who spoke on the condition of anonymity.
More broadly, Nomura, in its appeal, will most likely continue to argue that the government’s losses on mortgage bonds were caused by the wider housing crash, making it a legal stretch to tie the losses on those bonds to flaws in the underlying loans.
Judge Cote, however, said that the banks’ misconduct exacerbated the collapse in the mortgage market.
“The origination and securitization of these defective loans not only contributed to the collapse of the housing market, the very macroeconomic factor that defendants say caused the losses,” she wrote, “but once that collapse started, improperly underwritten loans were hit hardest and drove the collapse even further.


Thanks to: http://scannedretina.com



  

topspin2


Interesting but how does this help the common man. Its just the transfer of wealth from one thief to another. There is no gov

"More broadly, Nomura, in its appeal, will most likely continue to argue that the government’s losses on mortgage bonds were caused by the wider housing crash, making it a legal stretch to tie the losses on those bonds to flaws in the underlying loans."

FLAWS IN THE UNDERLYING LOANS HUH..........DONT THEY MEAN FRAUD.....ahhhhhh the fraud machine continues.....

PurpleSkyz

avatar
Admin
As I prepare to do battle with BofA in my foreclosure I am gonna reference all of these cases of fraud and the robo signing of my contract. They do not have a wet ink copy so we will see if I can pull a rabbit out of the hat a second time.

to be continued ...



  

topspin2


Good Luck to you Purps.....Don't back down and ask for the original WET INK COPY OF YOUR MORTGAGE....Also ask for the origin of the funds for your mortgage.....Ask them for the money trail.....because there was no loan!!!!!!!!!!!!!!!!!!!

PurpleSkyz

avatar
Admin
Thanks for All of the advise and help you and others here have offered me on this and the past foreclosure a few years back tops! I am gonna blow their socks off. They won't know what hit them!!!



  

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum