Ed DeMarco Refuses to help Taxpayers & Homeowners

Insane man: courtesy of Bush Administration

"Honest...I didn't know throwing them an anchor....would cause them to drown"

President Obama: Please Fire FHFA Director Ed DeMarco

New York Times: Opinion - FIRE DeMarco

ATTENTION - ALL AMERICAN TAXPAYERS and HOMEOWNERS
The "tone-deaf" bureaucrat has clearly lost his mind and his schizophrenic behaviour is on display. Ed DeMarco is a sad, but powerful career politician that is a holdover {leftover} from the Bush Administration. As acting Director of the Federal Housing Finance Agency(FHFA) DeMarco oversees Fannie Mae and Freddie Mac which control or own over half the nation's mortgages.

Ed DeMarco has refused to allow for any meaningful relief for homeowners and has been stonewalling taxpayers in attempt to avoid a Principal Correction (reduction) conversation.  It has been made clear, that without Fannie and Freddie taking action, millions of homeowners will remain underwater {paying more to their mortgage - than their home is worth} and contributing to the vicious cycle of the housing/foreclosure crisis. 

For millions of families on the financial brink, the REFUSAL, by DeMarco to allow a mortgage principal correction {to fair market value} is the difference between an economic recovery or crashing the economy. Earlier this year, it was revealed that DeMarco hid critical documents showing that FHFA was on the verge of approving a principal reduction/correction program until HE quashed the plans & reports. 

We need an honest director not someone willing to mislead Congress & the President.
President Obama if your serious about restoring the housing market and standing with American homeowners, tax-payers, and the 99%, you must get rid of Ed DeMarco.
HOW CAN I HELP ? -NewBottomLine  CLICK HERE  & NPA (CLICK HERE)

DeMarco Wins Gold in New Event: Stonewalling on Principal Reduction

FHFA to reject Principal Reductions for Fannie & Freddie 

Huffington Post Business: Top Housing official {DeMarco} defies White House

Letters Below {proving a future insanity defense for DeMarco}
In a move that brings two federal "tone-deaf" agencies as close to warfare as possible within the confines of bureaucratic memos, the Treasury Department called out housing regulator Edward DeMarco on Tuesday for his continued refusal to offer a key piece of housing assistance to underwater borrowers struggling to save their homes from foreclosure.

The Federal Housing Finance Agency's own analysis has shown that principal reduction could help up to 500,000 homeowners and save taxpayers as much as $1 billion, Tim Geithner wrote: {principal reduction} could save Fannie Mae and Freddie Mac {the government-controlled mortgage giants} up to $3.6 billion.

The response by DeMarco {letter to Congress - below} reaffirms his opposition to principal reduction, a move championed by many housing advocates and economists. DeMarco wrote that his agency's analysis found that the taxpayer benefit of writing down the mortgage values "would not make a meaningful improvement in reducing foreclosures in a cost effective way for taxpayers."
Letter to FHFA

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

BOMBSHELL:  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
Case: 2012 CV 787639   
Judge: Michael Donnelly
Jury Trial Demanded

Linda Clark, Doehner, Lowery, Whiteman, 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

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

The name of this blog is OHIO FRAUDclosure, so we want to stay on target topic!  This IS a major story and a long awaited and much anticipated Class Action lawsuit. 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. 
 Folks - this is much bigger than the State of OHIO and is proof positive that Ohio's top legal warrior and consumer advocate is still Marc Dann! 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.
OHIO FRAUDclosure spoke with attorney Marc Dann, by phone, and there is much more to come.

92 page Class Action Complaint: DOWNLOAD HERE

Sadly, in what appears 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 only giving them until Friday August 3rd - to move out! The PREDATOR DRONE foreclosure mill law firm (REIMER, ARNOVITZ, CHERNEK& JEFFREY CO LPA ) had filed a writ-of-possession with the Lake County Ohio Sheriff's department. The morally corrupt  bank sponsored attorney - Kristi Pallen* - (kpallen@reimerlaw.com) (330-405-1199) has fought hard to legally block the Yeager's request for a  Stay (of an eviction) and also has refused a supersedeas property bond offer (collateral).

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

READ HERE: 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 (Krisit 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 as to Willie Grady aka Willie Grady, Jr., and Unknown Spouse, if any, 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.


PREVIOUS BLOG POST on MARC DANN one year ago: (READ HERE)
This great attorney, and former AG, remains active in OHIO while continuing to fight and wage legal battles against the TBTF banks and Predator Drone (Foreclosure Mill) law firms. He continues to be a champion for those fighting violations of their Consumer Rights. Dann twice has taken time out of his busy schedule for phone interviews with OHIO FRAUDclosure. He recently drove two hours to meet with us and share an "inside look" at his busy schedule and planned future legal actions. Many of these actions will have an impact at a national level with possible implications to the ever changing Federal Laws guiding foreclosure judges. Marc Dann has filed Class Actions suits against Servicers for foreclosing on borrowers that were either eligible for or in a HAMP modification. Additionally he filed a "Class Action" suit against a giant OHIO Predator Drone (foreclosure mill) law firm Lerner Sampson Rothfuss (LSR). Unfortunately, the terms of the settlement could not be shared with us, but we've assumed the homeowners were made happy.
Additionally national blogger Martin Andelman (Mandelman Matters) shared this phone interview as an audio podcast (Click Here).

US Court of Appeals smackdown of Ohio Mill Firm - LSR

UNITED STATES COURT OF APPEALS

FOR THE SIXTH CIRCUIT ANNOUNCES

Major Smackdown of Predator Drone Law Firm (LSR) in  

BETTY WALLACE
v.

WASHINGTON MUTUAL BANK F.A.

WELLS FARGO BANK N.A.,

Defendants

LERNER, SAMPSON & ROTHFUSS,

Defendant-Appellee
Appeal from the U. S. District Court for the Southern District of Ohio at Cincinnati.

(Download Opinion - HERE)

A major victory at the federal level reverses a bad decision originally decided in the southern district of Ohio - Cincinnati - which is coincidentaly the home & headquarters of Predator Drone & Foreclosure Mill law firm -Lerner Sampson Rothfuss (LSR)

The court held:

The single issue before us is whether the filing of foreclosure action by the law firm claiming ownership of the mortgage by its client Washington Mutual constitutes a "false, deceptive or misleading representation" under the Fair Debt Collection Practices Act {FDCPA} when the bank has not received a transfer of the ownership documents. We hold that the complaint states a valid claim and reverse the dismissal of the case.

Plaintiff alleges that the statement in the foreclosure complaint that Lerner, Sampson filed against her on behalf of Washington Mutual contained the false statement that Washington Mutual was the holder of her mortgage. District courts have decided, and we agree, that a clearly false representation of the creditor’s name may constitute a "false representation to collect or attempt to collect any debt" under Section 1692e.

Hepsen v. J.C. Christensen and Assocs., Inc., No. 8:07-CV-1935-T-EAJ, 2009 WL 3064865, at *5 (M.D. Fla. Sept. 22, 2009) (imposing liability based on a statement incorrectly identifying the name of a creditor comports with the purposes of the Act); Blarek v. Encore Receivable Mgmt., Inc., No. 06-C-0420, 2007 WL 984096, at *15 (E.D. Wis. Mar. 27, 2007) (same).

Lerner, Sampson does not dispute that the foreclosure complaint identifies Washington Mutual as the actual holder of plaintiff’s mortgage, but claims that Ohio law permits Washington Mutual to anticipate that it would become the title holder after the foreclosure action was initiated but before it becomes final. We disagree that the issue of standing in Ohio, even if resolved in Lerner, Sampson’s favor, has any bearing on whether misidentifying a creditor is materially misleading under the Fair DebtCollection Practices Act.

HUGE footnote (below) referencing outcome of pending OHIO SUPREME COURT: Federal Home Loan Mortg. Corp. v. Schwartzwald

1The Ohio Supreme Court allowed an appeal and stayed briefing in plaintiff’s state case against WASHINGTON MUTUAL, Wallace v. Washington Mutual Bank N.A. ..2011-Ohio-6556..(Dec 21, 2011)....pending resolution of Fed. Home Loan Mort. Corp. v. Schwartzwald, 194 Ohio App. 3d 644, 2011-Ohio-2681, 957 N.E.2d 790 (Ohio Ct. App.), motion to certify and appeal allowed by 129 Ohio St. 3d 1488, 2011-Ohio-5129, 954 N.E.2d 661(Ohio Oct 5,2011)(Consolidating cases and certifying a conflict in the Ohio appellate courts on the issue of whether in order to have standing as a plaintiff in a mortgage foreclosure action, a party must show that it owned the note and the mortgage when the complaint was filed.). Should the Ohio courts decide that a potential mortgagee may anticipate transfer of the note and mortgage and bring valid foreclosure proceedings in advance, the district court will have to decide the impact of such a holding on Wallace’s claim for damages under the Fair Debt Collection Practices Act. We do not agree, however, with the district courts of this Circuit that have treated the debate in Ohio over standing to bring a foreclosure action as dispositive of whether a statement was materially misleading under the Act. See, e.g., Whittiker v. Deutsche Bank Nat’l Trust Co., 605 F. Supp.Kline v. Mortg. Elec. Sec. Sys., No. 3:08cv408, 2010 WL 1133452, at *7 (S.D. Ohio Mar. 22, 2010). Certainly, should the Ohio courts decide that Washington Mutual did not have standing to bring the foreclosure action in the first place, the materiality of the false statement of ownership would be patent. However, even if Ohio holds the opposite, the Act protects the unsophisticated consumer from false statements tending to mislead or confuse—whether Washington Mutual may ultimately succeed in an Ohio court in its foreclosure action has no bearing on whether the initial false statements misled Wallace. The issue arises in the shadow of the recent subprime mortgage crises in which financial institutions are charged with encouraging reckless lending standards and rapid transfer and sale of subprime mortgages so as to profit from the mass securitization and sale of the mortgages

Slipping computer generated, shoddy and manufactured paperwork past lower court judges (old, out-of-touch, too busy) on a “fast track” to foreclosure…used to be easy! The judicial machinery spun out of control when directed by large Predator Drone Foreclosure Mills and their "Bench Warmers"(local counsel used to foreclose) seeking the revered “Green Light” rating (used by LPS Desktop Solutions). Unfortunately thousands of Ohioans lost their homes while these FRAUDclosure factories and drone filing attorneys operated openly in front of Ohio judges ...which unfortunately were asleep-at-the-wheel. (Link to report).

However, recent attention from the OCCUPY movement, highly regarded foreclosure defense attorneys and bloggers (here, here, here) have turned the spotlight on the fraudulent and criminal behavior (of the Foreclosure Mills & Servicers) The robo-signing clearly showed that documents, legally needed to initiate foreclosures, were created and falsely executed. The attention has finally started to drown out the traditional lap dog media trained in "Bank-Speak."

Predator Drone Foreclosure Mills:

The mindless and legally void factory approach used to methodically ram-rod thousands of FRAUDclosures through the judicial machinery of Ohio’s 88 county Civil Court system appears to have finally hit a BUMP. Proof: recent published decisions coming out of some of Ohio's twelve Appellate Courts show that some judges are actually waking-up from a deep legal sleep. The Appellate courts have been routinely overturning and dismissing cases which had improperly awarded Summary Judgment to pretend lenders, bogus trust & trustees, and improper plaintiff parties.

Read full deposition - with admissions - of LSR employee Shellie Hill

Shocking Maps of USA Housing Misery (Foreclosure)

Pictures are Worth a Thousand Words

March 2007 - USA Map of MORTGAGES 30+ days delinquent or in Foreclosure

                     

March 2012 - USA Map of MORTGAGES 30+ days delinquent or in Foreclosure

                  

Although distressed mortgages were said to have peaked in 2010, a majority of these delinquencies & foreclosures were isolated to just a few states. Now (March 2012) it is painfully obvious that large regions of the country are suffering according to a 38 page report * from the Federal Reserve Bank of St. Louis.
*Report by James Bullard, President & CEO, FRB-St. Louis

Picture of current recovery....courtesy of Calculated Risk Blog (HERE)

More "distress" to come as previously reported:

Drowning in Debt - Underwater Mortgages - Next Crisis

AND

USA - FORECLOSED and BLIGHTED

More Honest Housing Assessments:
Michael Olenick: Beware of Housing Market Cheerleading (NAR ,NAR or WSJ)

Robert Reich: Housing is the rotting core of US Recovery

The biggest continuing problem for most Americans is their homes. Purchases of new homes are down 77% from their 2005 peak ... home sales overall are still dropping and prices are still falling.....
Houses are the major assets of the middle class. Most Americans are therefore far poorer than they were six years ago. Almost one out of three homeowners with a mortgage is now “underwater”, owing more to the banks than their homes are worth on the market.
Optimists point to declining home inventories in relation to sales, but they are looking at an illusion. Those supposed inventories do not include about 5 million housing units with delinquent mortgages or those in foreclosure, which will soon be added to the pile. Nor do they include approximately 3 million housing units that stand vacant – foreclosed upon - but not yet listed for sale, or vacant homes that owners have pulled off the market because they can’t get a decent price for them.
.