Tag Archives: CFPB

The institutional manufacturing of the foreclosure process

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October 21, 2019. By Douglas Boggs

The institutional manufacturing of the foreclosure process begins with the servicer advising the borrower to stop payments to make sure it puts them in a better position for a modification. So, the servicer advises a homeowner to fall behind on their payments in order to qualify, if they wish to obtain any government sponsored relief. The distressed homeowner does as advised and falls behind in order to qualify for the government sponsored mortgage relief program and is subsequently placed in default. This is textbook and this common process has happened to millions of people across the United States.

The Servicer immediately cashes a credit default swap for some percentage of the mortgage balance and has some split with the investor. Now, make a note that the investor’s are those who invest in mortgage backed securities(MBS) and hedge funds that untilize MBS’s as investment vehicles. They are the owners of the note once the note is securitized. Also note, that if they are the owners of the note, this means that the chances that the foreclosing party holds a near 90% chance that they hold absolutely NO right to foreclose. But, this is a differentt story for later and some of which I have previously posted herein this blog. Ok, moving on now, then the servicer would send 10 or 15 sets of mortgage modification applications to the homeowner and collect payments of $300 each under their HAMP servicing agreement with the fed.

Following this, they offer a trial modification to the homeowner and promise that it will convert to a permanent modification if the homeowner makes all of their payments on time. The bank loses the paperwork 3 or 4 times and charges the fed each time they process a new application and charges the fed again for sending the 3 new applicatons to the homeowner.

The homeowner is approved for the temporary modification and starts paying the narrowly reduced payments while the servicer dual tracks the homeowner for foreclosure and hires LPS, the parent company to LSI Title to file some fraudulent assignments in the name of the deceased bank the servicer bought the servicing rights from (countrywide, world savings, indymac, whoever) .

The servicer shoplifts the temporary payments while the homeowner thinks they are going to the mortgage-backed-security(MBS) towards P&I thus putting the homeowner further behind, allthewhile fucking their own MBS investor. The servicer gets paid a fee by the fed for servicing the temporary mod under their HAMP servicing agreement. The servicer denies the modification and forecloses on the property and collects a fee from the investor for servicing the foreclosure and collects an 80% FDIC loss share payment from the FDIC which it splits with the investor.

The house is sold, usually to a company that buys foreclosure properties in bulk for less than their retail value which is done to manipulate the real estate market, and the investor recovers the REO value less the banks REO sale fee.  The company that buys the foreclosed property works with the servicers in order to manipulate the market as a whole. In my case, I found a corporate maze of over a dozen corporations tied to two individuals that use this process to hide assets. The judge was privy to this and quite friendly to the party in question. Perhaps on the take, or perhaps they play golf. However, well versed with each other.

The Non Judicial foreclosure process is a fast food style of law where the Unlawful Detainers get stream lined and rubber stamped by the Judges because the Judges are making a profit on each property in the process as a percentage to look away.

The only reason any of this could take place is due to the fact that the Legislation changed the Servicing powers and the ability to transfer the trusteeship of the Deed of Trust. The Registrars and everyone else mistook this legislation to mean that the Trustee can be reassigned by the Beneficiary or Servicer and possess the rights of the primary Trustee named on the Deed of Trust that was originally signed by all of the parties.

The illegal government rubber-stamped dismantling of the middle class. How can you ever stop a ruling class from doing something that is this lucrative???

So, to do a short recap. There are branches of the Wall Street financial institutions that are manipulating the mortgage back security markets, collateralized debt obligation markets, paying off the Security rating agencies. The government is complicit in the manipulation of the real estate markets, the modification programs, the rating agencies, the Security and Exchange Commission, and the FDIC. The Wall Street financial institution then work the other side of the con with the large foreclosure firms that are in bed with the judicial system. The back door payments to the judges, or as the padding of their retirement pension funds through the financial institutions, the justice system looks the other way. All of this happens when a borrower signs for a mortgage loan. Despite the fact that the financial institution is not even actually lending any money to the borrower, but simply manipulating the monetary process in its spreadsheet.

Little does the homeowner know that their signature also allows the trustee, who is partners with the financial institutions, to be able to steal their home any time, any day, no matter what. You think your home can’t be taken even if you are current on your mortgage payments, you a gravely mistaken. If you think your home can’t be taken from you even if you paid CASH, you are gravely mistaken. This is done through the systemic unregulated fraud that the financial institutions and the government are fully cognizent of and are complicit in order to work at such a massive systemic level. The legislation allowed this illegality to transpire, despite the settled (1978) CA Supreme Court decision that the trustee is to be independent of the transaction between the borrower and the lender. So, the government complicity is paramount from legislative to justice.

The fallout is not simply the defrauded homeowner. The economic fallout are the hundreds of millions of dollars that the County Registrars across the nation are defrauded from through the creation of MERS. The bailouts for the financial institutions will continue, plus they write off the legal penalties for the taxpayer cover. The tax payer feels a bit better when the banks are penalized for millions, only to find it hidden in the “make America great again” tax overhaul for the wealthy. Steve Mnuchin was previously a foreclosure king if you didn’t recall.

Nothing has changed. It all has become more streamlined from Wall Street, through the White House, onto the floor of the house, and “trickling down” into the Main Street U.S.A.’s across the country. The writing is on the walls of justice that the world is still turning the way the system was designed to do, as the Trump administration and the Supreme Court is looking into the constitutionality of the Consumer Finance Protection Bureau.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

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Supreme Court will hear a challenge to the Consumer Financial Protection Bureau

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It seems that the Supreme Court will hear a challenge to the constitutionality of the Consumer Financial Protection Bureau. The organization has been stripped down as of lately under the current Administration to a point where it is nearly just a namesake of hope to those who ever felt it held any solace or reparations to any homeowner.

“Under President Donald Trump, the CFPB has already dramatically pared back its role as a financial watchdog. A report published by the Consumer Federation of America earlier this year found that the agency had dropped enforcement activity 80% compared with its peak in 2015. Average monetary relief, the report found, was down 96%.”– consumerfed.org

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KEY POINTS

  • The Supreme Court announces that it will hear a case challenging the constitutionality of the Consumer Financial Protection Bureau, a regulatory agency established in the wake of the 2008 financial crisis.
  • A decision in the case is likely by the end of June, meaning that the fate of the regulator will be announced in the middle of the 2020 presidential campaign.
  • That could be particularly significant for Sen. Elizabeth Warren, a consumer advocate whose role in creating the agency has formed a central pillar of her presidential bid.
GP: Consumer Financial Protection Bureau Headquarters 190304

Signage is displayed inside the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., on Monday, March 4, 2019.Andrew Harrer | Bloomberg | Getty Images

The Supreme Court on Friday announced that it will hear a case challenging the constitutionality of the Consumer Financial Protection Bureau, a regulatory agency established in the wake of the 2008 financial crisis.

The case was brought by Seila Law, a California-based law firm, which alleges that the structure of the agency grants too much power to its director, in violation of the Constitution’s separation of powers.

Unlike the heads of many other federal agencies, the director of the CFPB may only be removed by the president “for inefficiency, neglect of duty, or malfeasance in office.” Given the CFPB’s broad law enforcement powers, that independence is unconstitutional, Seila Law has argued in court papers.

In an order posted Friday, the justices asked both sides to address whether the bureau can remain even if its structure is found to be unconstitutional.

A decision in the case is likely by the end of June, meaning that the fate of the regulator will be announced in the middle of the 2020 presidential campaign. That could be particularly significant for Sen. Elizabeth Warren, a consumer advocate whose role in creating the agency has formed a central pillar of her presidential bid.

It is possible that a ruling against the CFPB would maintain the agency but only on the condition that its director, who serves a five-year term, can be removed at the pleasure of the president. If Trump loses his reelection bid in 2020, that would mean that a Democrat will be able to replace Trump’s current appointee, CFPB director Kathy Kraninger, when they take office.

Read more: The head of the CFPB now believes that the financial regulator is unconstitutionally structured

To date, the CFPB has survived multiple court challenges.

The federal appeals court in Washington upheld the agency last year on the basis that the Supreme Court, more than 80 years ago, signed off on the Federal Trade Commission, a similarly structured regulator, in the 1935 case Humphrey’s Executor. In May, the CFPB defeated Seila Law before a panel of the 9th U.S. Circuit Court of Appeals.

“Seila Law contends that an agency with the CFPB’s broad law-enforcement powers may not be headed by a single Director removable by the President only for cause. That argument is not without force,” Circuit Judge Paul Watford wrote for the court.

But, he said, given Humphrey’s Executor and a later case which reaffirmed the ruling, the CFPB is constitutional.

“The Supreme Court is of course free to revisit those precedents, but we are not,” he wrote.

Under President Donald Trump, the CFPB has already dramatically pared back its role as a financial watchdog. A report published by the Consumer Federation of America earlier this year found that the agency had dropped enforcement activity 80% compared with its peak in 2015. Average monetary relief, the report found, was down 96%.

Given the makeup of the Supreme Court, it’s likely that the agency’s structure could be struck down.

Justice Brett Kavanaugh, whose confirmation last year delivered conservatives a reliable majority, made clear in a dissent from the Washington appeals court decision upholding the bureau that he believes the structure of the CFPB is impermissible.

“Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire U.S. Government, at least when measured in terms of unilateral power,” Kavanaugh wrote at the time. “That is not an overstatement.”

Notably, Kavanaugh did write in that dissent that he believed the director’s independence could be limited while leaving the rest of the bureau intact, “so that the Director of the CFPB is supervised, directed, and removable at will by the President.”

The case is Seila Law v. Consumer Financial Protection Bureau, No. 19-7.

ORIGINALLY PUBLISHED CNBC – FRI, OCT 18 20192:58 PM EDT; UPDATED FRI, OCT 18 2019 3:34 PM EDT Tucker Higgins@IN/TUCKER-HIGGINS-5B162295/@TUCKERHIGGINS

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

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Judge Dismisses CFPB Case Against OCWEN

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A case levied against Ocwen Financial Corporation (NYSE: OCN) by the Consumer Financial Protection Bureau (CFPB) in 2017 has been dismissed by a federal judge in Florida, though the Bureau has the option to refile the case if it so chooses, according to a story in National Mortgage News.

Originally filed by the Bureau in early 2017, the lawsuit alleges a host of violations on the part of Ocwen, including illegally foreclosing on 1,000 borrowers, mishandling escrow accounts, enrolling consumers in add-on programs without their consent, and knowingly populating its mortgage-tracking software with incorrect or incomplete information.

The basis for the dismissal by Judge Kenneth Marra rested in a concept known as a “shotgun pleading,” which is defined as a legal complaint which offers an excessive number of facts while lacking any semblance of clear organization, and then asserts those disorganized and abundant facts as the basis for a cause of legal action. In answering the complaint against the company, Ocwen offered that it was an example of a shotgun pleading in seeking the case’s dismissal.

Marra agreed with Ocwen, citing legal precedent regarding shotgun pleadings from the Eleventh Circuit Court of Appeals in his reasoning for the dismissal, a court which covers federal jurisdictions in Alabama, Florida and Georgia. However, the case was dismissed “without prejudice,” which will allow the CFPB to refile it should they choose to continue pursuing legal remedies related to Ocwen’s alleged violations.

Ocwen publicly praised Judge Marra’s decision.

“We are pleased that the district court has decided to dismiss the CFPB’s complaint without prejudice,” Ocwen said in a press release responding to the dismissal. “Ocwen will continue to vigorously defend itself should the CFPB refile and continue to pursue its claims. We are committed to our mission of creating positive outcomes for homeowners and communities, and we believe that Ocwen’s servicing practices have and continue to result in substantial benefits to consumers.”


Ocwen has been facing a number of financial difficulties in recent years, though a continuous bright spot for it in terms of business performance has been Liberty Home Equity Solutions, its reverse mortgage lending subsidiary. Most recently, Liberty recorded strong numbers in its reverse mortgage business in Q2 2019 in spite of Ocwen’s larger aim to return to overall profitability, according to financial disclosures released last month along with an accompanying earnings call.

Liberty also recently launched its own proprietary reverse mortgage offering, EquityIQ, which was touted by Ocwen’s leadership as part of Ocwen’s larger initiative to grow its lending volume and achieve a more balanced revenue mix, according to Ocwen CFO June Campbell in August.

Read the original National Mortgage News story on the CFPB case’s dismissal.

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I welcome those reading my blog. I appreciate all of the emails I have been receiving. I also appreciate those who have registered and subscribe to this blog. If you have come from Facebook please comment on this site, rather than any Facebook post of this page due to the fact that there are many readers who are not part of Facebook forums, or even Facebook itself. I encourage all readers to put their comments on this site so that all of the information will be accessible to all readers from all parts of the internet. I urge you to join this site and receive the RSS feed, or bookmarking us, sharing us with your friends on Facebook and Twitter. If you know of anyone who might benefit from this information I urge you to pass on this website address! Share and let’s make some change together!

Thank you for stopping by.

©2014-2019 Doug Boggs All Rights Reserved

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