Former Ohio AG - 6 month license suspension

Ohio Supreme Court upholds suspension

Former Ohio Attorney General loses appeal, and has license suspended for 6 months
Former Ohio Attorney General Marc Dann
The Ohio Supreme Court announced a decision in a long dragged out process to punish the former state attorney general  - Marc Dann. The punishment will simply be a six-month law license suspension. This action, in part, is for a 2009 conviction in which he was charged with mishandling campaign funds for personal uses. The crimes were misdemeanors and Dann has since paid a $1,000 fine and completed 500 hours of community service.

Marc Dann, a true hero to homeowners fighting fraudulent foreclosures, resigned his attorney general post in 2008 after a turbulent 17 months in office.  He has been working, as a private practice attorney, in an office located in Cleveland. Although we expect the negative media to be on full display, Marc Dann is a great leader, lawyer, and consumer advocate. We look forward to his return.

Related: Ohio Bombshell: Former AG takes on LPS, Mills & Servicers

For some time Dann has continued with a legal effort to fight the somewhat lengthy suspension. Dann had clearly "paid-his-debt" to society with long and continued efforts of pro-bono work. Dann's legal team had asked the Supreme Court of Ohio for leniency from a suspension recommended by the State Attorney Disciplinary Board. The disciplinary board of commissioners (on Grievances and Discipline) surprisingly sought to override a decision reached by The Office of Disciplinary Counsel. The Disciplinary Counsel, which acts as prosecutor in attorney discipline cases, had initially recommended a stayed six-month suspension that would have allowed Dann to continue his work in private practice. But it was overruled by the state Attorney Disciplinary Board, which after much wrangling (politically motivated?) recommended a flat six-month suspension. Today's decision from the Supreme Court has upheld the six-month suspension.

Dann's Cleveland law firm, issued a statement through Attorney Grace Doberdruk: "We have received notice that the Supreme Court has chosen to suspend our partner, Marc Dann, for six months.  The suspension is the culmination of proceedings against Marc that began in 2008.  While we are saddened by the Supreme Court’s decision, we respect it. Doberdruk & Harshman Law Office will continue to stand up to banks and big business in the interests of homeowners, consumers, working people and small businesses.  We are proud of the work that we do to protect the rights of the hard working people we count among our clients and will continue to wage the battle against foreclosure.

Additionally, Doberdruk & Harshman issued the following: "We have been upfront with all of our clients about the possibility of such a decision, disclosing the pending complaint in our client agreements and providing email, letter and blog updates on the matter," {and} "We are confident in our ability to continue to successfully represent our clients."
The law firm will remove Dann's name during the suspension, and will be known as:
Doberdruk & Harshman Law Office
4600 Prospect
Cleveland OH  44103

Today, in rejecting Dann’s argument for a stayed license suspension, the court wrote:

“Like judges, the attorney general has a heightened duty to the public by virtue of his elected office. As the chief law officer for the state, the attorney general is charged with providing legal representation and advice to all officers, boards, heads of departments, and institutions of this state,”

 “While we recognize that Dann has offered substantial mitigating evidence, we note that he has previously been disciplined by this court,.....{and} He also engaged in this unlawful conduct while serving as the state’s chief legal officer and one of the most recognizable attorneys in this state.”

“For that reason, the work of the attorney general touches upon virtually all areas of our state government....“Thus, Dann’s criminal and ethical violations reflect poorly on his fitness to practice law and the legal profession as a whole, but also cause incalculable harm to the public perception of the attorney general’s office and those government agencies, departments, and institutions that the attorney general advises and represents.”

Slip Opinion: Disciplinary Counsel v. Dann, No. 2012-Ohio-5337 (HERE)

Ohio Supreme Court: Bombshell win for homeowners

BOMBSHELL WIN:  Schwartzwald vs. Federal Home Loan (Freddie Mac)
Lack of standing CANNOT be cured or remedied with a later assigned mortgage
Judgement REVERSED and CASE DISMISSED

             

Explosive Legal News: 
Supreme Court of OHIO:  
Cases: Nos. 2011-1201 and 2011-1362 - Submitted April 4, 2012

Decided: October 31, 2012
Written Opinion: Judge Terrance O'Donnell

O’CONNOR, C.J., and PFEIFER, LUNDBERG STRATTON, LANZINGER, CUPP,and M

CGEE BROWN, JJ CONCUR

This is a major victory and EXPLOSIVE NEWS in the FRAUDclosure battle

Federal Home Loan Mortgage Corp. v. Duane Schwartzwald et al. (HERE)

The Supreme Court of Ohio ruled that standing to initiate a mortgage foreclosure lawsuit is determined on the date the complaint is filed. A foreclosing party, which lacked standing at the time the suit was filed, CANNOT remedy that defect by obtaining an assignment of a mortgage and promissory note AFTER the filing of the foreclosure action but prior to an entry of a final judgment.

The court’s 7-0 unanimous decision dismissed a decree of foreclosure granted to Federal Home Loan Mortgage Corporation FHLMA  (AKA "Freddie Mac") against Duane and Julie Schwartzwald because FHLMA did not have standing at the time it filed the foreclosure action.

Congratulations to the court for making the right decision and for upholding the law. Many similar cases were cited from other states to support the decision. Congratulations to fine attorney ANDREW ENGEL for fighting this battle on behalf of the Schwartwald family (no longer in the home) and attorney BRUCE BROYLES for submitting an amicus brief on behalf of this blog
OHIO FRAUDCLOSUE (our amicus brief here) and OHIO homeowners

COURT FINDS:

{¶41}It is fundamental that a party commencing litigation must have standing to sue in order to invoke jurisdiction of the common pleas court. Civ.R. 17(A) does not change this principle, and a lack of standing at the outset of litigation cannot be cured by receipt of an {later post filing} assignment .... or by substitution of the real party in interest.

{¶42}Here it is undisputed that Federal Home Loan did not have standing at the time it commenced this foreclosure action, and therefore it failed... Accordingly, the judgment of the court of appeals is reversed, and the cause is dismissed.

OTHER STATE DECISIONS were relied upon:

{¶27}This principle accords with decisions from other states holding that standing is determined as of the filing the complaint.

See, e.g., Deutsche Bank Natl. Trust v. Brumbaugh, 2012 OK 3, 270 P.3d 151, ¶ 11 (“If Deutsche Bank became a person entitled to enforce the note as either a holder or nonholder in possession who has the rights of a holder after the foreclosure action was filed, then the case may be dismissed without prejudice * * *” [emphasis added]);

U.S.Bank Natl. Assn. v. Kimball, 190 Vt. 210, 2011 VT 81, 27 A.3d 1087, ¶ 14 (“U.S. Bank was required to show that at the time the complaint was filed it possessed the original note either made payable to bearer with a blank endorsement or made payable to order with an endorsement specifically to U.S. Bank” [emphasis added]);

Mtge. Electronic Registration Sys., Inc. v. Saunders, 2010 ME 79, 2 A.3d 287, ¶ 15 (“Without possession of or any interest in the note, MERS lacked standing to institute foreclosure proceedings and could not invoke the jurisdiction of our trial courts” [emphasis added]);

RMS Residential Properties, L.L.C. v.Miller, 303 Conn. 224, 229, 232, 32 A.3d 309 (2011), quoting Hiland v. Ives, 28 Conn.Supp. 243, 245, 257 A.2d 822 (1966) (explaining that “ ‘[s]tanding is the legal right to set judicial machinery in motion’ ” and holding that the plaintiff had standing because it proved ownership of the note and mortgage at the time it commenced foreclosure action);
McLean v. JP Morgan Chase Bank Natl. Assn., 79 So.3d 170, 17 (Fla.App.2012) (“the plaintiff must prove that it had standing to foreclose when the complaint was filed”); see also Burley v. Douglas, 26 So.3d 1013, 1019(Miss.2009), quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 571, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992), fn. 5 (“ ‘standing is to be determined as of the commencement of suit’ ”);
In re 2007 Administration of Appropriations of Water of the Niobrara, 278 Neb. 137, 145, 768 N.W.2d 420 (2009) (“only a party that has standing may invoke the jurisdiction of a court or tribunal. And the junior appropriators did not lose standing if they possessed it under the facts existing when they commenced the litigation” [footnote omitted]).

PREVIOUS Ohio circuit court decisions:

{¶34} Thus the Third and the Ninth Circuits have rejected the notion that Fed. R. Civ. P. 17(a), on which Civ.R. 17(A) is based, allows a party with no personal stake in a controversy to file a claim on behalf of a third party, obtain the cause of action by assignment, and then have the assignment relate back to commencement of the action {and} “Rule 17(a) does not apply to a situation where a party with no cause of action files a lawsuit to toll the statute of limitations and later obtains a cause of action through assignment. Rule 17(a) is the codification of the salutary principle that an action should not be forfeited because an honest mistake; it is not a provision to be distorted by parties to circumvent the limitations period.

{¶37} Other courts have also determined that plaintiff cannot rely on procedural rules similar to Civ.R. 17(A) to cure a lack of standing at the commencement of litigation. Davis v. Yageo Corp., 481 F.3d 661, 678 (9th Cir.2007)

{¶38}We agree with the {above} reasoning and analysis presented in these cases. Standing is required to invoke the jurisdiction of the common pleas court. Pursuant to Civ.R. 82, the Rules of Civil Procedure do not extend the jurisdiction of the courts of this state, and a common pleas court cannot substitute a real party in interest for another party if no party with standing has invoked its jurisdiction in the first instance

JUDGEMENT REVERSED AND CASE DISMISSED

Andrew M. Engel, for appellants.

Bruce M. Broyles, urging reversal for amici curiae Homeowners of the

State of Ohio and Ohiofraudclosure.blogspot.com.

Advocates for Basic Legal Equality, Inc., and Andrew D. Neuhauser;

Legal Aid Society of Cleveland and Julie K. Robie; Legal Aid Society of

Southwest Ohio, L.L.C., and Noel M. Morgan; Community Legal Aid Services,

Inc., Christina M. Janice, and Paul E. Zindle; and Ohio Poverty Law Center and

Linda Cook, urging reversal for amici curiae Advocates for Basic Legal Equality,

Inc., Legal Aid Society of Cleveland, Legal Aid Society of Southwest Ohio,

L.L.C., Community Legal Aid Services, Inc., Ohio Poverty Law Center, Legal

Aid Society of Columbus, Southeastern Ohio Legal Services, Legal Aid of

Western Ohio, and Pro Seniors, Inc.

.

Obama: "too many homes underwater"

FINALLY !!!- President Obama addresses "underwater homeowners" + Call to action


                 Weekly Presidential address - Saturday October 20th 2012

........."Too many families are still having a hard time making the mortgage on their piece of the American Dream, {and} now we have to build on the progress we’ve made, and keep moving forward.  I never believed that the best way to deal with the housing market was to just sit back, do nothing, and simply wait for things to hit bottom. {I.E. The Romney Plan}That would have been a disaster for all the responsible families who – through no fault of their own – were struggling to make ends meet. Instead, I’ve made helping those homeowners a priority.

  

Since I took office, my Administration has taken action to help millions of families stay in their homes. 

We teamed up with attorneys general in almost every state to investigate and crack down on the practices that caused this mess.  And in the end, we secured a $25 billion settlement from the biggest banks – one of the biggest settlements in history – and used it to provide relief to families all across America.

We’ve taken action to help responsible homeowners refinance their mortgages. As a result, just this year hundreds of thousands of Americans who were stuck in high-interest loans have been able to take advantage of historically low rates and are saving thousands of dollars every year. 

And now I want every homeowner in America to have that chance. I just wish it didn’t require an act of Congress. But it does. So, back in February, I sent Congress a plan to give every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates. That’s the equivalent of a $3,000 tax cut.

It’s a plan that we know will work.  It has the support of independent, nonpartisan economists and leaders across the housing industry.  It’s a no-brainer that should have passed easily. 

But Republicans in Congress banded together and kept this plan from even coming to a vote. They banded together and prevented millions of Americans – including many of you listening today – from saving $3,000 a year.  That’s money that could have gone back into the value of your home, or your kid’s college savings account. That’s money that could have gone into your local businesses, so they could hire and create more jobs in your town. 

But Republicans in Congress still won’t let that happen. And that’s only held back the economy, when we should be doing everything we can to accelerate our economic engine. Let’s be honest – Republicans in Congress won’t act on this plan before the election. But maybe they’ll come to their senses afterward if you give them a push. So contact your Representative, especially if this plan will help you or someone you know.  Tell him or her that American homeowners have waited long enough. Tell them that it’s time for Congress to stop standing in the way of our recovery and to start standing up for you."

Full White House transcript (HERE)

Related Post: HOME IS WHERE THE VOTE IS - Campaign - (HERE)

DEBATE: What Housing Crisis?

Eric Gay - Associated Press

A Housing and Foreclosure Crisis? What? Is there is still a housing crisis? That should be your reaction after Tuesday nights' second presidential debate failed to touch upon the topic that started the great recession. In the first debate, October 3rd, both President Obama and Governor Romney steered clear of addressing the foreclosure crisis that helped push the country into a recession, devastated millions of families and has continued to hold back the economy or even resemble a recovery. You may have by now come to the conclusion - The Housing Crisis is Over.

Tracy Van Slyke, Director at New Bottom Line @ HuffingtonPost:

HuffPost Politics Blog: The Real Debate Loser: The Voters

President Obama and Governor Romney gingerly sidestepped into housing and Wall Street abuse for an estimated two minutes. That seems like enough time to talk about, oh you know, the reason our economy is in the tank, millions of jobs lost, life savings ripped away, over 15 millions homeowners underwater, and millions of others unfairly (and often illegally) foreclosed on.

There was nothing about any attempts to hold Wall Street accountable for crashing the economy. There was zip about how to help the millions of homeowners still suffering. There were no policy proposals debated, much less put forth, including potential major solutions such as principal reduction, which economists from both ends of the political spectrum, say is key to get rebuilding our economy.
But even though I'm angry and depressed right now, I'm not going to give up. Neither will the homeowners and underwater voters pressuring the candidates to talk real solutions, not regurgitate attack ads. There's too much at stake.

* Only eight months ago, the president delivered 20 minutes of rhetoric on foreclosures, Wall Street crimes and how it wrecked the economy. He bragged on how the administration had made fixes and it was a top priority to repair the economy and hold Wall Street accountable!.....what happened? Try to watch even 10 minutes of the above video...any 10 minutes...why how about any 5 minutes or even 3 minutes. If you watch even a 2 minute clip...it will be more time ...than the president spent on this topic - during the entire debate.

Over the next few weeks, our Home Is Where The Vote Is campaign will continue to pressure both candidates to address the housing crisis as they travel the country talking to voters and homeowners in key swing states like Nevada, Ohio, Colorado and Florida. President Obama and Governor Romney ignore underwater voters in these swing states at their own peril.

We will call on the next presidential debate moderator, Candy Crowley, to fill the void left by her predecessor and to make the connection that the American people want to know which candidate can fix the housing crisis and rebuild our economy.

From Jed Kolko, chief economist for Trulia:

The First Presidential Debate: Apparently, This Housing Crisis Is Over

......First, in his opening remarks, Obama said "housing has begun to rise." He’s right: the housing market is in better shape today than when he took office in 2009. More surprising was that Romney didn’t argue. Romney did point out several ways that broader economic performance worsened during Obama’s presidency, but the housing market wasn’t one of them. Had Romney wanted to point to the ongoing pain from the housing crisis, he could have pointed to the stubbornly high foreclosure rate in many states or the fact that the market is still not even halfway back to normal. But he didn’t.

Second, Obama and Romney were more focused on preventing the next housing crisis than getting out of this one. They mentioned housing only in their brief debate over government regulation. Obama cited banks’ risky lending practices in the past as reason for why regulation is important for the future. Romney got into the weeds, agreeing that mortgage regulation is important and, in fact, blamed the continued uncertainty over the Dodd-Frank "qualified mortgage" rules** for banks’ {and their} reluctance to lend today.

But that was about it for housing. There’s a long list of what the candidates didn’t say about housing. Not a word about refinancing, principal reductions, selling government-owned foreclosed homes, or the mortgage interest deduction – all hot-button housing issues. Why wasn’t there more debate over housing? Two {Bronx} cheers to the candidates for focusing on rules to prevent the next housing

* President Obama discusses a proposal to help more responsible homeowners refinance their mortgages at today's historically low interest rates. February 1, 2012.

**A "qualified mortgage," is a mortgage meeting standards (with legal & financial measurement parameters)that automatically "count" (qualify) the mortgage as being within a borrower's ability to repay.

~

Underwater Homeowner Vote may turn election

The cheer leading and rah-rah, heard at the presidential conventions, has long since died down. BUT, both candidates left a huge election topic (Housing) unaddressed, and as a result, the door is now wide open, to speak directly on Foreclosures and Underwater Homeowners. It is important that both men address these two (2) related issues instead of repeating & summarizing all the problems by using drone like rhetoric and simply calling it a Housing Crisis.

ELECTION NEWSFLASH:
President Obama - you - and Governor Romney will be competing for votes of millions of homeowners. As presidential candidates, you need to address the housing issues (Underwater Mortgages, Foreclosure, Fraudclosure, principal reduction) especially in big swing states such as Ohio, Colorado, Nevada and Florida. Current estimates show there are between 12 - 16 million underwater homeowners,


3 Americans Speak About Foreclosure & Underwater Housing (OH, NV, CO)

OHIO:
The housing crisis has hit OHIO harder....than but a handful of states. As a result, many OHIO VOTERS are underwater on their mortgages (mortgage debt is greater than value of home) Recent housing market data shows more than a half a million (529,834) OHIO mortgages are underwater. What does that mean?

*1 Million (1,000,258) Ohio eligible voters are underwater
12% of the eligible voters - underwater & 528,834 home mortgages - underwater

*To put these numbers in perspective, the number of Underwater Voters in Ohio (1,000,258) is OVER 1/3 of the total votes cast for the winning presidential candidate in 2008.

MESSAGE:  OHIO VOTERS

please join the New Bottom Line Campaign:

 HOME IS WHERE THE VOTE IS

The national campaign has put the agenda and vote of 16 million underwater homeowners squarely on the national political agenda. ‘Home is Where the Vote Is’ is a multi state effort to have the candidates address the issue.
These voters WILL influence and help decide the presidential election outcome!

Tracy Van-Slyke (Director of The New Bottom Line) & Mark Roarty (Ohio FRAUDclosure) take message to the White House

RELATED: Ohio Blogger to White House for Housing Summit
The candidate that fails to seriously address foreclosures, underwater homeowners, and the resulting housing crisis WILL BE the candidate that loses! See below as Tracy Van Slyke shares the importance (below) on the new HUFFPOST - Firsthand

Move video slider bar and begin at 10 minutes in - Shocking Truth Explained

READ Huffingtonpost Business Blog:
Underwater Voters Take Aim at Obama and Romney over Housing
....Neither President Obama nor Governor Romney has proposed the bold solutions needed to address the housing crisis at the root of the American economy’s troubles. Resetting mortgages to fair market value is essential to keeping families in their homes and the recovery of the US economy and job market. Economists from both sides of the political spectrum support it. Resetting those mortgages to fair market value would save the average underwater homeowner $543 per month, pumping $104 billion into the national economy every year. This would create 1.5 million jobs nationally

'Home is Where the Vote Is' is organized by The New Bottom Line, a growing movement of community organizations, congregations, and individuals working together to challenge big bank interests and fight for principal reduction for underwater homeowners. Allies mobilizing underwater voters this season include Rebuild the Dream, Right to the City, Home Defenders League, Ohio FRAUDclosure and the hundreds of thousands of underwater homeowner and voting families.

Our neighborhoods are being destroyed by foreclosed homes. It's our communities that are deprived of hundreds of millions of dollars in revenue because too many homeowners have to unfairly pay the big banks instead of investing in local businesses. Entire communities are being blighted across our state and nation because of the failed policies and the on-going fraudulent practices of the big banks.

MORE: ...Huffington Post Business Blog - by Tracy Van Slyke

~

U.S. Court sides with City of Cleveland v Wall Street

U.S. Federal Appeals court sides with City of Cleveland (Ohio)

UNITED STATES COURT OF APPEALS

FOR THE SIXTH CIRCUIT ANNOUNCES

For years the City of Cleveland (Ohio) has fought a herculean battle against Banks, Wall Street and the lenders which almost destroyed the entire housing stock of Cleveland. The city fought to Hold Banks accountable in local courts, State and Federal courts and even all the way to the U.S. Supreme Court. Unfortunately, the well funded banks have spent millions litigating these cases, going "all-in" with a transparent effort and goal to financially wipe out the city (with legal expenses). The banks hoped, litigating these cases, even to the point of absurdity, would teach Cleveland (and other cities) a lesson - Don't take on Wall Street! To date, that strategy has worked well by applying "legal paralysis" (on-going litigation) in an effort to prevent the already "asleep at the wheel" federal agencies and regulators from acting.

Fortunately, the U.S. Court of Appeals (for the Sixth Circuit) refuses to be "bought out" or "sell-out." The court continues to enforce the Rule of Law and even show the Supreme Court of Ohio they'll NOT allow the trashing of existing laws in favor of the Banks and Wall Street firms. Although this is not a win (on the merits of the suit), nonetheless, it holds co-conspirators Plaintiffs JP Morgan Chase (Chase Bank) responsible for procedurally abiding by the rules. The Sixth Circuit, took the time, as part of their published decision, to opine on the foreclosure crisis and added some colorful commentary (below) on the havoc that Wall Street brought on the city.

CHASE BANK USA, N.A., JPMORGAN CHASE BANK, N.A., JPMORGAN MORTGAGE
Acquisition Corp., and J.P. Morgan Securities, Inc.
Plaintiffs-Appellants/Cross-Appellees
V.
CITY OF CLEVELAND,
Defendant-Appellee/Cross-Appellant 

READ CASE DECISION: CASE Nos. 10-4115/4116

KAREN NELSON MOORE, Sixth Circuit Judge:
.....The foreclosure crisis that swept the nation in the latter half of the past decade hit Cleveland particularly hard. It also led to this litigation. Though this case has - as its background - such weighty factual topics as subprime-mortgage lending, foreclosures, and the precarious economic state of the post industrial Midwest, the issue at stake in this appeal is solely procedural. Because the district court (United States District Court for the Northern District of Ohio at Cleveland. No. 08-00514) nonetheless dismissed the suit...without notice to the parties, we REVERSE the judgment of the district court and REMAND for further proceedings.

Cleveland’s decision to address the issue of subprime-mortgage securitization through litigation arguably reflects an otherwise frustrated regulatory intent, as the city likely could not regulate such activity directly. Ohio law appears to prevent Cleveland from regulating subprime mortgages in the traditional manner (i.e. by municipal ordinance), as it vests the state with sole authority to “regulate the business of originating, granting, servicing, and collecting loans and other forms of credit in the state and the manner in which any such  business is conducted.” Ohio Rev. Code § 1.63(A). In addition, Ohio law expressly preempts “[a]ny ordinance, resolution, regulation, or other action by a municipal corporation” to regulate such matters. Id.§ 1.63(B). Indeed, the OHIO SUPREME COURT struck down Cleveland's previous attempt to regulate predatory mortgage lending by ordinance as preempted by state law, including § 1.63. Am. Fin. Servs. Ass’n v. City of Cleveland, 858 N.E.2d 776, 785–86 (Ohio 2006).

I. BACKGROUND

The City of Cleveland has seen a record number of home foreclosures in the past decade. Between 2000 and 2008, Cuyahoga County, Ohio, where Cleveland is located, recorded approximately 80,000 foreclosures. In Cleveland, Foreclosures Decimate Neighborhoods,NPR Radio, May 24th, 2008.

In 2007, County Treasurer Jim Rokakis described the city as "the epicenter of the mortgage meltdown in America." (Thomas Ott & Susan Vinella, Home Loan Foreclosures on the Rise in Cuyahoga, The Plain Dealer, July 4, 2007).  Against this backdrop came three (3) lawsuits relevant to this case:

A. City of Cleveland v. Ameriquest Mortgage Securities, Inc. (City of Cleveland I)

In January 2008, Cleveland brought suit against twenty-one (21) financial institutions in Ohio state court, alleging that the defendants’ actions in the subprime-mortgage industry constituted a public nuisance under Ohio common law. By securitizing subprime mortgages and later foreclosing on the houses purchased through such mortgages, the defendants allegedly contributed to a financial crisis in the city that included significant declines in property values, a shrinking tax base, and an increase in criminal activity. Cleveland sought to recover for the costs it incurred in monitoring, maintaining, or demolishing foreclosed properties and for decreased tax revenues. The defendants {Ameriquest} removed the case to federal court. {Then} after denying Cleveland’s motions to remand and to amend its complaint...the district court granted the defendants’ motion to dismiss on the grounds that the city’s suit was preempted by state law and was barred by the economic-loss doctrine.

B. City of Cleveland v. JP Morgan Chase Bank, N.A. (City of Cleveland II)

In August 2008, shortly after the district court denied Cleveland’s motion to remand in City of Cleveland I, Cleveland filed a second suit in Ohio state court against twenty-eight (28) financial institutions, including the non-diverse JPMorgan Chase Bank, N.A. In addition to pleading another public-nuisance claim, Cleveland alleged that the defendants had violated the Ohio Corrupt Activities Act (“OCAA”), the state RICO analogue, by inaccurately claiming title to mortgages and promissory notes in foreclosure proceedings in violation of Ohio Revised Code § 2921.12(A). See Ohio Rev. Code § 2923.32. Cleveland also sought to recover under Ohio Revised Code § 715.261 for costs incurred maintaining or demolishing foreclosed houses.

C. Chase Bank, USA, N.A. v. City of Cleveland (Chase Bank)

In February 2008, while City of Cleveland I was pending, Plaintiffs-Appellants Chase Bank, USA, N.A., JPMorgan Chase Bank, N.A., JPMorgan Mortgage Acquisition Corp., and J.P. Morgan Securities, Inc. (collectively, “Chase Bank”) brought the suit that is currently before us. Chase Bank sued Cleveland in federal district court... requesting an injunction against that suit. After Cleveland filed City of Cleveland II, Chase Bank amended its complaint to request declaratory relief and an injunction against both of Cleveland’s lawsuits.

D. Recent Developments:
Since this case left the district court, several developments have occurred in both City of Cleveland I and City of Cleveland II. In City of Cleveland II, the Cuyahoga County Court of Common Pleas dismissed Cleveland’s public-nuisance and OCAA claims, but denied the defendants’ motion to dismiss. {As}J.P. Morgan Chase Bank, N.A. and J.P. Morgan Securities, Inc. are defendants in City of Cleveland II. Cleveland voluntarily dismissed its §715.261 claim and appealed the trial court’s dismissal of the public nuisance and OCAA claims. That appeal is currently pending in the Court of Appeals of Ohio, Eighth Appellate District.

In addition, the United States Supreme Court denied Cleveland’s petition for a writ of certiorari in City of Cleveland I. City of Cleveland v. Ameriquest Mortgage Sec., Inc., 131 S. Ct. 1685 (2011). Accordingly, Chase Bank’s request for injunctive and declaratory relief regarding City of Cleveland I is now moot. All that remains of the suits in which Cleveland is the plaintiff is City of Cleveland II. Because Chase Bank, USA, N.A. and JPMorgan Mortgage Acquisition Corp. are not parties to City of Cleveland II, we dismiss their claims as moot.

Another Recent Case linked below from the same U.S. Federal Court (Sixth Circuit):

US Court of Appeals smackdown of Ohio Mill Firm - LSR

CLEVELAND WARNED the Regulators !! Yet...No one did a thing!!!
SHOCKING, STUNNING, and ACCURATE predictions are quotes from this now 4 year old (2008) article : As Decade Dawned signs of Crisis:   9-28-2008 - Roger Mezger

"We called it early... Nobody listened,"There was blood on the streets of Cuyahoga County. But it wasn't until there was blood on the streets of Wall Street that anyone cared."
(Jim Rokakis - Cuyahogo County Treasure)

'This is going to become an epidemic,' and they sat on their hands. For whatever reason, they didn't act. But if you were looking, the handwriting was on the wall. If you were looking, it was obvious something was wrong."
(Tony Stevenson, a staff attorney with Housing Advocates Inc. in Cleveland)

"Regulators allowed loose lending to keep the economy going. All the regulators knew what was going on."
(Raj Aggarwal, dean of the College of Business Administration at the University of Akron)

For years Cleveland had been WARNING "asleep-at-the-wheel" State and Federal regulators of what was to come.  Home prices had become so outrageous in value, that during a 6 year period, median home prices (in Cleveland) rose 56%, according to county real estate records, while the city's population dropped 4% during the same period. It didn't make sense. YET - No one in OHIO or the Federal Government would listen or do anything to stop these lenders and banks from pillaging the city.

Ohio Blogger to White House for Housing Summit

At White House Meeting, Youngstown Ohio Housing Leader, Blogger, Homeowner  - Pushes Obama Administration for Solutions to Foreclosure and Housing Crisis

WASHINGTON, DC – On Thursday September 13th, Mark Roarty, an Ohio leader and nationally recognized blogger and housing advocate traveled to our nation’s capital to meet with top Obama Administration officials at the White House. Mr. Roarty discussed the immediacy and need for implementing bold new solutions to the housing and foreclosure crisis that has devastated our communities. cities & states.

Mark Roarty prior to White House housing summit

In break-out meetings with officials from HUD, DOJ, and the White House National Economic Council - Mark joined 150 other leaders, clergy, homeowners, and housing advocates (representing 26 states) and laid out recommendations to address the housing crisis and getting our economy back on solid ground. Roarty, along with other leaders, told the White House administration that it is far past time that they enact policy solutions such as:
- Principal reduction as a bold new plan needed to address foreclosures, fix the housing crisis, create jobs, and reset the economy. Specifically, the request included strong language to remove Ed DeMarco, interim director of FHFA, which oversees Fannie Mae and Freddie Mac. Ed DeMarco obstinately and ideologically opposes principal reduction, despite its proven benefits for homeowners and taxpayers.
- Publicly support the RMBS Task Force investigating big bank fraud, which the president announced in his State of the Union address back in January. The task force needs additional financial resources and staff to conduct real and effective investigations. The task force work will result in accountability for Wall Street crimes that crashed our economy.
- A nationwide Homeowner Bill of Rights that enacts strong standards for how banks must work with borrowers in foreclosure, including mediation and mandatory principal reduction when it would help the homeowner and investor.

Later in the day, Roarty joined up with other Ohio housing support groups and organizational leaders to visit Ohio Senators Sherrod Brown and Rob Portman. In the Senators' Washington D.C. offices they met with key staff to share ideas and ask for support from the Ohio Senators on the recently introduced Menendez/Boxer Bill (S. 3522). The bill would allow homeowners trapped in high-interest loans, guaranteed by Fannie Mae and Freddie Mac, to refinance into lower interest loans and also eliminate up-front fees along with appraisal and loan closing costs.

Roarty, was invited to the meeting because of  his affiliation with NPA and The New Bottom Line along with his nationally recognized blog Ohio FRAUDclosure. In Ohio, he is a leader and homeowner advocate with the Mahoning Valley Organizing Collaborative (MVOC). 

Tracy Van-Slyke (Director of The New Bottom Line) & Mark Roarty on front steps of White House prior to meeting.

Mark Roarty is also one of three nationwide home-owner spokespersons for The New Bottom Line coalition's Home Is Where The Vote Is campaign. The campaign, with the goal of making President Obama and Governor Romney address the foreclosure and housing crisis, features Roarty in a two-minute video explaining the realities faced by thousands of Ohio homeowners. Some of the deeply felt pain, of being in foreclosure, is shared by Roarty in the video. Recently, after a 4 1/2 year legal battle, a decision was handed down by an Ohio Appellate Court reversing the illegal foreclosure on his home.



More than 400,000 OHIO homeowners have been foreclosed on since 2007, with the state’s eight urban cores being hit hardest. The spike in foreclosures has led to massive neighborhood blight, vacant properties and community disinvestment. Those maintaining their homes have seen a huge decline in value, leaving 529,834 Ohio homeowners underwater on their mortgages. That figure is roughly one quarter of all homeowners in the state. Nationally, there are almost 16 million underwater homes, totaling a loss of $1.2 trillion in home equity. Resetting those mortgages to fair market value would save the average underwater homeowner $543 per month, pumping $104 billion into the national economy every year. This would also allow financial capacity to create 1.5 million jobs nationally.

Related: New Jersey - Homeowners Underwater and abandoning ship.

The foreclosure crisis in Ohio is rooted in illegal activity by lenders and Wall Street and inadequate rules and enforcement. The misconduct included predatory sub-prime lending, targeting of senior citizens, veterans, and communities of color, and bundling and pawning off flawed mortgages, avoiding accountability. Those forces combined with record long-term unemployment to bring our economy to the brink of collapse, and continue to jeopardize our economic recovery.

"The Mahoning Valley (Youngstown), like many areas across the country, need help to stop the on-going and rampant bank and servicing fraud in foreclosure," Roarty said. "Local and state leaders and organizations have done everything possible to deal with the result of illegal and improper foreclosures (vacant homes & blighted neighborhoods) by helping secure funds for demolition. Now we need to address the cause. We need action, and we need it now. My home, our communities, and our economic future is depending on it."

Speaking directly to HUD Secretary Shaun Donovan at the end of the meeting, Roarty, in front of the entire forum, asked that the administration officials in attendance pass along the importance of these issues  - directly to the President.

Although he was impressed that the administration agreed to host the forum, he feels that more immediate action is needed. "The President needs to address this in his campaign," Roarty said after the meeting. "It’s great that administration officials heard our concerns and critique, but this requires more than lip service."

Information for Ohio Homeowners at Home is Where the Vote is (HERE)

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The Big Lie - Foreclosure issues resolved

The current administration is revisiting the so called "Foreclosure Settlement"

* First....consider the settlement that the Obama Administration is now beginning to trumpet as one of its greatest achievements. This is the joint forty-nine state & federal settlement wherein the banks claim to eventually settle...by paying a  paltry $25 billion. (the 'headline number' provided by the White House) Not only is this a completely "disingenuous" claim, but it was systematically and totally dismantled by Yves Smith of Naked Capitalism (Top ranked financial blog).

In reality, and with maybe... a mere $5 billion (moved around on their books), the five criminal banks were released from ALL STATE lawsuits stemming from the massive and systemic fraud that went into the origination and servicing of housing loans throughout the bubble and into the crash. For this paltry sum, the banks were released from all liability stemming from a decade-long-run of illicit activities that fleeced millions of customers and inflated a bubble that eventually destroyed the economy of the United States and much of the world. Now, you might ask, to what did the five large banks, party to the settlement (Bank of America, Wells-Fargo, Morgan Stanley, Citibank, and Ally Bank) agree to do in exchange for this wonderful bounty of sweeping immunity? They committed themselves, after much dodging and wrangling, to follow the law of the land! (Are you serious ! Really!) Specifically, they promised to stop engaging in fraudulent foreclosure practices. That is harsh! (sarcasm!)

Consider the massive evidence of FRAUD -- besides the reams of paper and court documents, this includes the many witnesses who have spoken to the media, written testimonials or books, already testified in court on related matters, etc. Then, consider even this partial list of crimes to be investigated. Accounting fraud screams out for action under Sarbanes-Oxley; loan origination fraud (including, by 2006, almost universal appraisal fraud); the robo-signing, forgeries, and post-dating of documents that for years were routinely submitted to courts during legal proceedings; the myriad of tax avoidance scams and lost paperwork that were a core feature of the mortgage electronic registration systems; the deliberate misrepresentation in the "Warrants and Reps" attached to the packaging and sale of mortgage-backed securities and derivatives thereof; and on and on it goes. (I should add that, coincidentally, soon after this settlement was signed, several states inexplicably dropped or settled what were very promising criminal investigations.)

But, let us be fair, the Administration got more than that (exaggeration !) Contingent on their meeting a number of criteria, families found to have lost their home through fraudulent actions taken by one of these five gigantic loan servicers were to be eligible to receive $1,500 to $2,000! Now, I cannot speak for you. But if, as a consequence of fraud or negligence on the part of a major bank, I lost my home and as a consequence also lost my credit rating, neighborhood, dignity, and the ability of any children I might have to remain in the schools and with the teachers with whom they were familiar, I would be very angry. If, years later, I got a check for $2,000, such a paltry payment for all that I had lost would strike me as only one more of a long line of humiliations. Some real personal homeowner humiliations are shared below



Apparently, Obama's campaign managers believe that reminding voters listeners of this most awful settlement, one that so clearly defines and encapsulates everything that is so wrong about the Administration's approach to disciplining fraudulent financial institutions, is their best strategy for convincing voters that things would be so much worse under a Romney Administration

 * Excerpts above ....come from a brilliant HuffingtonPost Blog by Robert Prasch titled:

The Obama Administration, the 49 State Mortgage Settlement, and the Spin: A Study in Shamelessness (HERE)

Related post:  Home is Where the Vote Is  (HERE)

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Home is Where the Vote Is

OHIO is being called the most important swing state for the 2012 election!



NEWSFLASH:
President Obama - you - and Governor Romney will be competing for votes of millions of homeowners. As presidential candidates, you need to address ALL the housing issues (Underwater Mortgages, Fraudclosure, Fannie & Freddie holdings) in big swing states such as Ohio, Colorado, Nevada and Florida. Current estimates show there are between 12 - 16 million underwater homeowners, in addition to millions of fraudulent foreclosures that are NOT being counted in these totals.

OHIO:
The housing crisis has hit OHIO harder....than but a handful of states. As a result, many OHIO VOTERS are underwater on their mortgages (mortgage debt is greater than value of home) Recent housing market data shows more than a half a million (529,834) OHIO mortgages are underwater. What does that mean?

1 Million (1,000,258) Ohio eligible voters are underwater
12% of the eligible voters - underwater
528,834 home mortgages - underwater

To put these numbers in perspective, the number of Underwater Voters in Ohio (1,000,258) is OVER one third of the total votes cast for the winning presidential candidate in 2008. **

MESSAGE: 

OHIO VOTERS: please join the New Bottom Line Campaign:

 HOME IS WHERE THE VOTE IS

It's not just Ohio's underwater homeowners - it's millions of homeowners being impacted

Washington, DC: - Today (August 22nd) - a national campaign will put the agenda of 16 million underwater homeowners squarely on the national political agenda. ‘Home is Where the Vote Is’ will engage in a 8 state campaign to influence the presidential election with on-the-ground actions led by underwater homeowners along the travel routes of both candidates. The campaign will give a voice to the underwater voter -- a key voting bloc - this election cycle. Swing states included in the campaign are some of the hardest hit by the foreclosure crisis, including OH, CO, NV, FL, IA, MI.

'Home is Where the Vote Is' is organized by The New Bottom Line, a growing movement of community organizations, congregations, and individuals working together to challenge big bank interests and fight for principal reduction for underwater homeowners. Allies in highlighting and mobilizing underwater voters this season include Rebuild the Dream, Right to the City, Home Defenders League, Ohio FRAUDclosure and the hundreds of thousands of underwater homeowner and voting families.

READ Huffingtonpost Business Blog:
Underwater Voters Take Aim at Obama and Romney over Housing

Neither President Obama nor Governor Romney has proposed the bold solutions needed to address the housing crisis at the root of the American economy’s troubles. Resetting mortgages to fair market value is essential to keeping families in their homes and the recovery of the US economy and job market. Economists from both sides of the political spectrum support it.

'Home is Where the Vote Is' will elevate the real stories and power of underwater voters to the level that the campaigns will be forced to respond. Nationally, there are 16 million underwater homes, worth $2.8 trillion, that are $1.2 trillion underwater.  Resetting those mortgages to fair market value would save the average underwater homeowner $543 per month, pumping $104 billion into the national economy every year. This would create 1.5 million jobs nationally

The candidate that fails to seriously address Wall Street , underwater homeowners, and the resulting housing crisis WILL BE the candidate that loses.



More Americans Speak Out About Underwater Housing - (OH, NV, CO) 

Our neighborhoods are being destroyed by foreclosed homes. It's our communities that are deprived of hundreds of millions of dollars in revenue because too many homeowners have to unfairly pay the big banks instead of investing in local businesses. Entire communities are being blighted across our state and nation because of the failed policies and the on-going fraudulent practices of the big banks.

MORE: ...Huffington Post Business Blog - by Tracy Van Slyke

Thousands of Ohio homeowners foreclosed on improperly

Newspaper (Cleveland Plain Dealer) coverage: on our previously reported story:

Thousands of Ohio homeowners were foreclosed on improperly, lawsuit claims

Ohio Bombshell: Former AG takes on LPS, Mills & Servicers

CLASS ACTION COMPLAINT filed in Cuyahoga County (Cleveland)
MARC DANN (Former OHIO AG) of  DANN, DOBERDRUK & WELLEN, LLC

             

Explosive Legal News: 
Cuyahoga County:  Court of Common Pleas

Linda Clark, Doehner, Lowery, Whiteman, Laura YEAGER
Plaintiffs
Urgent Update: CALL to ACTION for plaintiff being evicted (HERE)

VS.

Lender Processing Services (LPS) 
LPS Default Solutions 
DOCX LLC  (DocX)
Fidelity National Information Services (FNIS)
American Home Mortgage Bank Servicing (AHMSI)
LERNER, SAMPSON & ROTHFUS (LSR)
MANLEY, DEAS KOCHALSKI LLC (MDK)
REIMER, ARNOVITZ, CHERNEK& JEFFREY CO LPA
Defendants 

The complaint clearly spells out the criminal behaviour of the co-conspiring entities which acted in concert while participating and perpetrating enormous FRAUD in OHIO's foreclosures.  Our former Attorney General along with some powerful legal allies have filed this action on behalf of a proposed class consisting of:

ALL OHIO CITIZENS who were (a) defendants in judicial foreclosure actions {with} first lien mortgages on their homes that were purportedly held by securitization trusts, and that were knowingly initiated and prosecuted by Defendants on behalf of parties that lacked legal standing to do so, and (b) who were damaged by Defendants’ abusive foreclosure practices, including: (i) preparing, executing, and notarizing fraudulent court documents and assignments of mortgages and other property records that were used to initiate and prosecute such foreclosures, and (ii) imposing inflated, unfair, unreasonable and/or fabricated fees for “default management services” (the “Class”)
Three (3) categories of defendants {Servicers, Foreclosure document venders, and Foreclosure Mills) acted in concert and conspired in furtherance of the fraudulent scheme to generate enormous profits from default servicing fees by knowingly initiating foreclosure actions on behalf of entities that lacked legal standing to bring such actions.

92 page Class Action Complaint: DOWNLOAD HERE

Sadly, in what appeared to be an instant counter action and outrageous and unconscionable retaliatory attack - a 10-day eviction notice was posted on Plaintiff Michael and Laura YEAGER's home - the day after the complaint was filed! It has since been followed up with another! The PREDATOR DRONE foreclosure mill law firm (REIMER, ARNOVITZ, CHERNEK& JEFFREY CO LPA ) apparently tasked co-defendant paper filing drones' (Manley Deas Kocholski) to execute the writ-of-possession while the morally corrupt  bank sponsored attorney - Kristi Pallen* - (kpallen@reimerlaw.com) (330-405-1199) continues the fight to legally block the Yeager's request for a  Stay (of an eviction). Reimer (Pallen) has also refused a supersedeas property bond offer (collateral), or to accept a previously agreed upon short sale. 

*Kristi Pallen - Previous irresponsible, bank-sponsored, failed action ADMONISHED:

READ HERE on admonished behaviour: U.S. Bank National Association v. Lenor

*Plaintiff’s counsel, Attorney Kristi Brown, also identified as Attorney Kristi Pallen, filed this matter on behalf of bogus Plaintiff, U.S. Bank National Association.

The Court finds Plaintiff’s counsel (Kristi Brown kna Kristi Pallen) did not follow Local Rule 4.2. filing procedures for service by Certified Mail....and...

The Court strikes all entries pertaining to service and further, the Court finds Plaintiff’s counsel failed to prosecute this matter...and.. Therefore, it is ORDERED this case is dismissed, without prejudice, .....and for Want of Prosecution. It is further ORDERED this case is dismissed... for failure to perfect service within 120 days, according to Fed.R.Civ.P 4.

Plaintiff’s counsel is admonished !!!!! as to Service by Certified Mail