Journalism in the Public Interest

Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril

By vastly expanding its suit against Bank of America to include all major stages of the bank’s mortgage practices, Nevada signals that the banks’ mortgage troubles will likely continue to dog them.


(Flickr: proimos)

This post has been updated to reflect Bank of America's response.

The state of Nevada dramatically expanded its lawsuit against Bank of America today, turning the narrow case it filed late last year into a broadside that targets virtually all aspects of the bank's mortgage operations. Bank of America has previously denied wrongdoing.

The sweeping new suit could have repercussions far beyond Nevada's borders. It further jeopardizes a possible nationwide settlement with the five largest U.S. banks over their foreclosure practices, especially given concerns voiced by other attorneys general, New York's foremost among them. (You can read the suit here.)

In a statement, Bank of America spokeswoman Jumana Bauwens said reaching a settlement would bring a better outcome for homeowners than litigation. "We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality."

The suit also weakens a separate, 2008 multistate settlement in which Countrywide promised to evaluate troubled homeowners for loan modifications.

Most broadly, Nevada's action signals that the banks' problems with home mortgages—the main cause of the financial crisis—continue to burden them and rattle investors. Bank of America, the nation's largest bank and company that services mortgages, has seen its stock plunge about 40 percent since March, in part because of its mortgage liabilities. Nevada's action won't help.

Nevada's attorney general charges that Bank of America and the now-defunct mortgage giant Countrywide acquired by the bank in 2008, deceived borrowers and investors at almost every stage of the process.

According to the suit, borrowers were duped into unaffordable loans and then victimized again through a misleading mortgage modification program that homeowners tried to use to avoid foreclosure. Finally, the suit alleges, the bank filed fraudulent documents to move forward with the foreclosures.

"Taken together and separately, [Bank of America's] deceptive practices have resulted in an explosion of delinquencies and unauthorized and unnecessary foreclosures in the state of Nevada," the suit alleges.

The state's suit had previously been confined to the modification issue. At that time, Bank of America also said homeowners would be best served not through litigation but through reaching a multistate settlement that would "broaden programs for homeowners who need assistance."

By expanding the suit, Nevada's Catherine Cortez Masto joins New York Attorney General Eric Schneiderman in stepping up investigations of the bank. In addition to initiating a broad investigation of banks' securitization practices, he recently filed a suit charging that Bank of America had fraudulently foreclosed on homeowners.

A coalition of all 50 state attorneys general has been seeking a settlement with the five largest banks to address their foreclosure practices, such as the filing of thousands of false sworn statements with state courts. Some critics have said the states were speeding to an agreement without thoroughly investigating the banks' abuses.

Last week, fissures in the coalition became public when Iowa Attorney General Tom Miller, who leads the 50-state coalition, removed New York's Schneiderman from the group's executive committee because, he said, Schneiderman had "actively worked to undermine" its efforts by opposing any quick settlement. As part of any settlement (reportedly in the range of $20 billion to $25 billion), the banks have been seeking a wide-ranging release from future legal claims, not just those related to foreclosure practices. Schneiderman has publicly rejected that idea and pushed ahead with his investigation.

Masto's suit signals that Nevada may also reject any settlement in the near future on the foreclosure issues. Two other attorneys general, notably those from Massachusetts and Delaware, have also voiced concerns recently about any broad waiver of claims.

Geoff Greenwood, the spokesman for Iowa's attorney general, declined to comment on Nevada's suit.

Nevada's newly expanded suit also undermines a previous settlement between Countrywide and numerous attorneys general. In 2008, as part of that settlement, Bank of America agreed to implement a mortgage modification program to address charges that Countrywide's marketing and lending practices had defrauded borrowers. That promised wave of modifications never came, however, so Nevada alleges Bank of America has breached the agreement. The expanded suit revives those allegations.

In its new claims, Nevada also charges that Countrywide bungled the process of bundling loans into securities by not properly documenting the transfer of assets. Despite the lack of documentation, Bank of America has fraudulently pursued foreclosure on these homes anyway, the suit charges.

New York's Schneiderman made similar charges earlier this month when he sued Bank of New York Mellon, which, as trustee for several pools of Countrywide loans, was supposed to oversee the securities for investors. Countrywide's failure to transfer complete mortgage loan documentation "impair[ed] the value of the notes secured by those mortgages" and "triggered widespread fraud, including Bank of America's fabrication of missing documentation," the suit charges.

A multipart conspiracy over years by the same group of people? This is what RICO was made for.

Darryl Phillips

Aug. 30, 2011, 5:56 p.m.

Kudos for Nevada, New York, and the few other states working for their citizens rather than for big money.

Anyone interested in these things should study up on MERS, it has virtually wrecked property claims for decades. Homes that have no problems whatever are in jeopardy of not being able to be resold because adjacent properties have clouded titles, thus clouded boundaries, thus no new title insurance can be written, thus the new buyer cannot get a mortgage on a house that had no problem in the first place!. It gets to be a real mess.

A good place to start is and .

This is a mess that will be with us for a long long time. The Republicrats and Demmicans aren’t going to solve it. Hopefully the state Attorneys General will try.

From Paul Kiel’s article:

“In a statement, Bank of America spokeswoman Jumana Bauwens said reaching a settlement would bring a better outcome for homeowners than litigation. “We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality.”

Well, isn’t that just peachy…you know what, Miss Bauwens?  How about this—-the BEST way to “get the housing market going again” is to TELL THE TRUTH.
As in the “loans” were FAKE. 
The people/homeowners were DEFRAUDED.
Suicides, murders, heart attacks, strokes, joblessness, homelessness, hopelessness and despair…
This is the legacy of the MASSIVE “false” mortgage “securitization” ponzi scheme—-perpetrated by the banks and Wall Street…in collusion with government entities…

ALL the Big Banks MUST FAIL…they have “false assets” on their “books”, anyway…WAKE UP PEOPLE.  Wake up and FIGHT BACK…‘cause the government has been and is—-going for the giant coverup…

Thank GOD for Eric Schneiderman…he is getting at the TRUTH.
The Big Banks are the ENEMY…they have destroyed peoples lives and the economy, working together with Wall Street to mastermind the “securitization” of FAKE mortgages…not really mortgages..not really loans…just transfers of collection rights…a bunch of “debt collectors” are stealing houses with FAKED documents…
Demand NO SETTLEMENT…because the American people have been defrauded ENOUGH.

from article:

“In its new claims, Nevada also charges that Countrywide bungled the process of bundling loans into securities by not properly documenting the transfer of assets. Despite the lack of documentation, Bank of America has fraudulently pursued foreclosure on these homes anyway, the suit charges.”

Yup, that “transfers of assets” is a LIE…

THIS is what happened:

“...borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.
The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.
All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”

Oh, and lets not forget…after the banksters/Wall Street did all that…there’s a little CRIMINAL thing called “insurance fraud”...

Let’s hope Schneiderman is looking into that, too…

I agree completely re RICO. I’ve been saying this for almost a year now.  See my comments to the article “Big Bank Foreclosure Delays Signal Big Trouble” at the link below.  They were posted on September 30, 2010:


matthew weidner

Aug. 31, 2011, 5:35 a.m.

I am a consumer attorney who fights on the ground everyday.  Americans cannot begin to comprehend just how corrupt and broken this whole system is, but it is all right there in front of our eyes.  Kudos to ProPublica for shining the light on these issues.
We are all in deep, deep trouble because our “leaders” have given away the farm to criminals….America is no democracy, we are a White Collar Criminal Oligarchy.

Can no one take responsibility for their own actions.  Banks did not give people money so the can buy a home and not pay it back.  Most of these people have lived one to two years in their homes rent free.  Banks have become a scapegoat for people who can not take responsibility for what they did and lawyers who are parasites in our society.

“We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality.”

I love that.  Because it totally doesn’t scream, “we’re desperate to keep people from finding out how illegally our operations are run.”  Especially with the revelation that they’re preemptively seeking immunity for unrelated crimes.

I agree with Brian.  Book’em all on RICO charges and investigate them like we would terrorists.  Anybody remember Marci Kaptur breaking the news that Congress was told there’d have to be martial law without the bailouts?  That sounds like terrorism, to me.

Here’s a thought:  Since the banks are blatantly untrustworthy even with guarantees, kill FDIC and reinstate the United States Postal Savings System (1911-1967).  Washington gets revenue from loan interest.  They get investment money from deposits and can pay short-term bond rates as interest.  The Post Office has more reason to stay open (which it’s Constitutionally obligated to do anyway).  We remove the banks from the general population in the real world and leave them to the casinos on Wall Street where they belong.

It’s not like I trust Washington, but I do trust my local Post Office employees and I trust bankers far, far less.

Barry Schmittou

Aug. 31, 2011, 10:02 a.m.

Obama’s DOJ should be all over this but instead they are protecting the corporate mafias !!!!!

If you’d like to see many examples of Non Prosecution Agreements that Obama and Bush granted please go to

Many of the corporations have commited the same crimes repeatedly but no one is ever prosecuted !!

One example is JP Morgan received a non prosecution agreement for bid rigging in 32 States on July 6, 2011.

Here’s a quote from the U.S. Department of Justice :

“From 2001 to 2006, certain then-employees of JPM at its municipal derivatives desk (which was closed by the Company in 2008) and/or predecessor desks entered into unlawful agreements to manipulate the bidding process and rig bids on certain relevant municipal contracts, and made payments and engaged in other activities in connection with those agreements, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1, and certain sections of Title 18 of the United States Code”

The full agreement can be seen at :

AND JP Morgan received another agreement from the SEC. Here are quotes from ProPublica :

“The $154 million settlement the Securities and Exchange Commission wrested from JPMorgan Chase involved only one of more than two dozen mortgage securities deals that the hedge fund Magnetar helped create. As we detailed last year [1], many banks in the waning days of the boom created collateralized debt obligations, or CDOs, with the help of Magnetar, which also bet against many of the same investments.”

I was offered a modification and I took it, because I was made to believe that was the best deal for me. However, I found out that due to my reduced income, I could have been qualified for a lower rate, which would help my situation a lot better.
Do I have any recourse? The economy has not yet picked up for me and a lower rate would help.
Thank you,

I too, have been used and abused by Wells Fargo and their premeditated cash out at the FAnnie Mae government pay out window.
Now, Fannie Mae owns my house.  Did anyone know that even though our tax dollars (in addition to bailing out these criminals the bankster goons) FAnnie Mae also uses the bankster goons attorney’s who robo signed and rocket docket thru the court system the fraudclosure of your home.  Yes,  this was a premediated crime.  You don’t think for one minute that this is something that just happened—no the 2008 financial credit crisis was an organized long term plan to make the bankster goons and their CEO’s lots of money.  And along the way, any one that helped out,  politicians,  judges, court systems, attorney firms, are paid handsomely for the destruction of the American way of life and the dream of owning a home.  THE BANKS ARE OUT OF CONTROL with their control on every pulse of the US financial system

I am the senior hardship gentleman with a handicapped child who was told by BofA that the MHA program no longer existed and I was getting a better deal with an in house mod at 65 percent of TGI which is unaffordable but I signed it because I thought there was nothing else for me. I have borrowed and whatever else I could do to keep up the pmts however I had another blow to my little consulting income due to the Japan Tragedy so now I am 2 payments behind but making them and need some help.  BofA has sent me a notice to accelerate and there is no one who will talk to me about working something out on the two payments. I filed a complaint to OCC 8 months ago. BofA finally responded with a one sided reply and OCC closed the file. How can the folks who the complaint was filed against for violating HAMP guidelines and lying respond by saying they did nothing wrong and no one from OCC bothers to investigate the homeowners charges? This is absurd. Now that the complaint is closed the BofA wants to foreclose and get this “complainer” out of their hair. This is exactly what a former BofA employee told me about homeowners who file complaints. What representation can a struggling homeowner get? I cant even get someone to consider working with me on the two payments I am down right now. They would rather foreclose.

I have been fighting Bank of America, et. al. for the last nine months.  I live in Delaware, however, there does not seem to be a lawyer in this state willing to take take on the banks for one reason or another.  I am fighting them on my own.  They are now on their third law firm to represent them.  The third firm, Reed Smith, was retained after I filed an adversary complaint against them and served it upon Mr. Moynihan personally because neither of their previous two firms would answer me as to which one was representing the bank.

Our pre-trial hearing is set for next week.  I will not go in to the lengthy details but suffice it to say we were duped by the bank.  (that’s putting it mildly)  It is ashame that they will waste so much money on lawyers to defend what is none other than criminal, however, that’s the way it goes.  I’m sure that their legal fees will cost more than a fair settlement, but they don’t care about things like that.  The money they waste is the taxpayers and the investors and as long as they continue to avoid penalties, they same crimes will continue in the future.

Has anyone thought of going to thier local credit union for some answers and help? I am going to make that plunge today. We need help on our mortgage rate and I can’t see any other way out. The rates are really good right now at my little local CU.
As far as the banking industry being corrupt, and the world seemingly going to heck in a hand basket, may I suggest reading Revelation in the Bible? This will give you some critical answers for what is happening to our world…, war, corruption, and the list goes on.

Holy Cow! It is now my one year anniversary of the worst day of my life when Bank of America started trying to bury me at such an young age.  They have ruined my life. I did everything they told me to do except jump off a bridge and was slapped at every turn told no like a child being scolded! Being made to feel like dirt. Not eating ,no sleeping, anxiety that myself and my daughter are going to be tossed out. Sent my entire life identity etc to Bank of America so many times I am not sure how my life is being played out and by who! This is more than a business transaction this is OUR lives! And none of this is new to anyone in the process I am just glad people including myself didn’t just lay down. Although I have wanted to. Someone has to stop them! This is why we are Americans!!!

rick schillinger

Aug. 31, 2011, 11:29 a.m.

How do these articles help,except to frustrate us further?Is there any class action that one can join to help save their properties?I am in the final stages of short sales on properties that I gave up on attempting modifications with Wells.I put 25% down 6-7 years ago,and now they’re minus 75%.They were easy qualifiers and now they’re full doc difficult,while my credit is ruined from foreclosure,so no refi.I have five properties in this condition that are the result of years of exchanging and developing that once represented 2 mil equity,now just 7 years of bad credit.Obama is a complete failure.

Aug. 31, 2011, 12:38 p.m.

The issue of “misleading” mortgage modifications could be moot. We know that other big banks did the same things. They just haven’t been caught - yet

The REST Report is the bank’s own software for calculating mortgage modifications. We’ve run 4000 of them so far and every single one has succeeded - or is succeeding - in forcing the servicer’s to obey the law.

Kathryn Bettis

Aug. 31, 2011, 12:39 p.m.

I did everything BOA told me including waiting to get behind 2 months before they would help me.  I was a previous Countrywide Home Loan Mortgage holder.  I started calling 7 months in advance of missing my first payment, only because I no longer had a choice, and BOA absolutely refused to help me in anyway until I was at least 2 months past due did I finally miss a payment.  Once I was 3 months past due, they finally put me on the Loan mod program and I did everything to the T that they asked, including making my payments at least one week early every month.  On Christmas Eve 2009 I received a phone call that our mod had been approved and we just had a few items to clear up and we would be done.  We finished those items in Jan 2010.  In Feb. 2010, my husband of 23 years passed away, I notified the bank and still continued to make the required payments.  I was assured nothing changed.  Finally in May a new Loan Officer was assigned, she called went over everything with me and at that time informed me that although yes I did qualify and yes I did everything I was required, as a Bank, BOA felt that as a widow, I was incapable of caring for a home on my own and therefore they would no longer accept any payments from me and would be seeking foreclosure immediately.  I sent in payments, they sent them back.  I was told unless I came up with the full amount past due immediately foreclosure was within 30 days.  I fought this tooth and nail.  I was trying to grieve, I had lost my husband, lost my job due to disability, lost my health and been told I may never be able to work again, now these “people” were taking my HOME.  I tried to short sale the house, the bank was offered no less than 5 fair market value offers on the house, two of which were cash offers.  The bank told me they were settling, so I sold what I could, took what I had left and moved back east to where my husband’s family was.  Once I was out of the house the bank then turned down the offers on the house because they wanted no less than $15K from me up front.  If I had that, I could have stayed in my house.  Fortunately, they tried to foreclose on the house and a developer heard about my story, his attorney’s are representing me pro-bono and there is a hold on the foreclosure.  BOA can’t foreclose and they won’t short sale without cash from me, so the house sits, still in my name.  I have always paid my debts, I was well able to afford this house when I bought it, I had a great job with great pay and did not rely on my husband’s SSDI to pay for it.  Life hit us hard, very hard.  I have never asked for anything for nothing, but this time, I hope someone has the guts to tell BOA, you can’t tell someone because they are a widow they can’t have the home that her husband built for her to spend the rest of her life in.  I hope they make them eat the bill and give me back my home and move me back.  They have put me and my kids through hell and have not even lost a moments sleep over it.  How many other women and children have they done this too?  Didn’t the banks do this same thing to widows back in the 1920’s?  All I can say is, I hope they have their stories straight when they answer God’s questions about all of this on Judgement Day.  I don’t think He is going to accept “It was company policy”.

As a California resident, I can only hope that our AG takes action like Nevada and New York.  I live in the Central Valley, one of the hardest hit areas of the housing debacle (maybe not quite as bad as Las Vegas, but still, really, really bad).

We cannot let the major banks get away with the fraud and malfeasance they have inflicted on this country.  This proposed “national settlement” would be a disaster and would encourage more of the same behavior from the banks and the financial industry.

Kudos to the Nevada AG for growing a pair.  Let’s hope the rest of our elected officials follow her example and start standing up for the American people, for once.

My house was a BofA casualty. I originally had a Country Wide loan in Nevada. When the economy went down in 2009, all business and personal credit was eliminated and my business went down. I couldn’t make my payment. The money was given to the banks to help with loan modifications, so we were told. I had the house on the market to sell on a short sale. Many buyers were found. The last one was totally approved for a loan, all we needed was approval from the company BofA had sold my second to. They refused to act even though we met all their requests, including giving them an additional $10,000, which I borrowed. BofA’s “modification” offer was for me to pay them $4000 a month for 6 months to “prove” I could make the payment. All this would go to them with NO signed agreement on what I would get at the end. There was never an offer to reduce the principle. If I could have had a loan for the amount they sold my house in foreclosure, I would still have my home.

In spite of a short sale waiting to close, they sold the house in a quick foreclosure. This affected my credit negatively.

Good for Nevada for taking action. Every state SHOULD be doing the same to protect their citizens.

Another funny note… at one point in my endless calls to BofA customer service, I was told, “BofA has gotten an exemption from the law that Nevada passed about banks.” The law had been written to control BofA’s behavior, so it was an outright lie. They were hiring very ignorant people to man their phones and be responsible for our banking needs. There is nothing ethical in any of this.

Meanwhile, I lost my life investment into this home, am now without a home, and am older and have few years of working to make it up. I had a credit rating of over 800. Now I have no credit. I figure I invested $100,000 originally in the house and then paid another $200,000 to BofA in payments. If they had been honest in their appraisals, the house would have never sold for the high price nor would I have been given a loan on a fake amount of worth.

Thank you to whomever is running this site. More facts need to be shared so people understand what has been done and hopefully help people gain some compensation from the banks.

Beverlee Couillard

Aug. 31, 2011, 1:13 p.m.

Finally something good is happening in Nevada.  We have one of the best Attorneys General in the U.S.  She is always right on top of everything.  She is a reason to be proud to live in Nevada; but she is about the only reason. 
  We bought our townhouse for $249K and it just short sold for $72K.  That is the story of banks in Nevada.

@Kathryn Bettis and Joseph James and everyone else being ABUSED and DEFRAUDED by the NAZI banks—-I am going to share a secret with you…it’s a secret because the government doesn’t want you to know about it, and the banks and servicers certainly don’t want you to know about it.

PLEASE—-I am begging you…do NOT trust what any servicer or bank is telling you…or even most of the “lawyers” claiming to know how to help you…

I have been through ALL the HELL everyone speaks of regarding “loan mods” etc.

I want you all to look carefully at the “mortgage” statement you get every month…does it say “DEBT COLLECTOR”???

It probably does…

Then look carefully at ALL of your closing loan documents—-the Trust Deed and the Promissory Note.  Does it say MERS is the beneficiary???  Is the servicer loan number the same as the original loan number on your original “loan” docs???

The point is—-the massive fraud that crashed the economy (and it’s going to crash again on a global scale), started with the paperwork that you all signed when you got your “loan”.

It’s complicated, but we’re talking MAJOR criminal VIOLATIONS of FDCPA and TILA—-Fair Debt Collection Practices Act and Truth In Lending Act.

Google those things.  Educate yourselves.  The government WON’T help you.  They are hoping it all “goes away”...They know all about the fraud.  But they can’t handle the fact that 60 million or more “fake” mortgages are ALL UNSECURED DEBT…NO REAL MORTGAGES.  NO REAL LOANS.  Only collection rights transferred after closing.  That’s right, people…the foreclosures are ALL ILLEGAL.  And the government let it happen…and the banks and government want to keep covering it up…

That’s why they want “settle” with the banks.

That’s WHY they don’t like the NY attorney general “interfering” with the sttlement.  Because he will find out the TRUTH of what REALLY happened with the “fake loans”...and how they NEVER made it into the “trust” that they supposedly went “into”. 

That’s’s all a BIG LIE.

Please read my earlier post for more details.

Then write a letter—-certified—-to your “servicer” or bank asking them for PROOF of an actual CREDITOR with an ACTUAL BALANCE SHEET and a LEDGER showing that your PAYMENTS have been going there…

They can’t come up with that…and they know it…and because of THAT FRAUD…they have NO STANDING to take your house.

HOW DARE THEY do this to people…that’s how I wake up everyday.

How dare they destroy the economy and now destroy peoples lives.



Please, people…DON’T GIVE UP—-they have left us to fend for ourselves in a maze of fraud…we MUST fight back!!!

Is the loan number on your


ANONYMOUS, on August 30, 2011 at 5:26 pm said:

E. Tolle and Louise

Yes — but not a mortgage — and “bank” ??? Purpose is to dispose of fraudulent collection rights that they acquired. THAT IS THEIR PURPOSE. And, that has been government’s goal.
Once homeowners goes to that dooms-land — it is over. Problem is — the “bank” put homeowners there – before they even signed a refinance.

I got foreclosed on too. Took my case to an attorney that was suggested by West Va Attorney Generals office. I DID NOT get my house back but did get a settlement from the Mortgage company that replaced TBW who wrongly foreclosed. It took two years and alot of phone calls.
CALL YOUR STATES AG and get a referral from them.
My thoughts are with you all, I truly understand the pain you are going through. I hope you will find the help you deserve.

I certainly hope and even pray that the same legal processes that Nevada’s AG has pursued expands to Wells Fargo. WF is even worse than BOA. What a totally inept and untrustworthy operation!!! WF does not stand for Wells Fargo it stands for WAYWORD FRAUD.

@Kathryn Bettis-I am so sorry for what you have gone through. I wept at reading what you wrote. The loss of your beloved and then the torment of BoA would have destroyed many others, In looking further into your post I saw what has sustained you…your faith. We both know that institutions and the horrible people that represent them will one day have to answer for their transgressions. My prayers are that they happen in the near future, so that your experiences never happen to another. You did everything you could do, admirably I might add. I pray for your healing and that of your family. God bless!

Barry Schmittou

Aug. 31, 2011, 3:13 p.m.

Hi Val,

Please check out the Wachovia $110 million money laundering seen at

Near the end of the blog look for the red font title “Wachovia Bank Admits Laundering $110 Million, Gets Non Prosecution Agreement After Giving Over One Million in Political Contributions”

They received a Non Prosecution agreement and were bought by Wells Fargo.

Wachovia and Wells fargo both gave Obama millions in contributions

Barry Schmittou

Aug. 31, 2011, 3:23 p.m.

God be with you Kathryn !! I read Roy’s comment and then looked at yours and I’m very sorry that you have been treated so unfairly !!

The worlds leaders are so evil I believe they must be controlled by the devil because nothing else can explain their complete lack of human conscience.

There are many politicians like Bush and Obama who profess to be great Christians while their protection of corporate criminals are opposite of Christ’s example !!

The book the Power of a Praying Life by Stormie Omartian has been very helpful to me. My life on earth has been destroyed by obama’s protection of evil as seen at

God bless you Kathryn, I’ll keep you in my thoughts and prayers !!

Stephanie Palmer

Aug. 31, 2011, 3:25 p.m.

Jumana Bauwens, no, you are wrong despite what your bosses tell you to say. A settlement would be best for B of A, not for the individual mortgagees.  I see that B of A is still doing what is best for B of A, lying to make more profit for itself. I for one will be pleased if the banks assets are liquidated and the executives involved in this skullduggery are in prison. That will tell me that my government actually thinks this is important.  Up until now, I haven’t been so sure.

Bruce Fernandes

Aug. 31, 2011, 3:52 p.m.

The ultimate solution is for millions of big bank customers to leave the big banks once and for all.  I left BofA 30 years ago this month when they improperly charged me $7.24 interest for a late credit card payment.  I deposited the payment into their branch bank deposit collector and it wasn’t credited until four days later.  The bank told me they had no duty to credit it any sooner.

Over the course of the last 30 years I have built two businesses and am getting ready to retire.  My late wife and I had always been loyal to BofA up to that point.  As students BofA gave us our first small balance credit cards.  But they broke faith with us and over the course of the last 30 years lost a fortune in banking, brokerage, loan refinancing and other fees they could have generated had they simply credited back $7.24 improperly charged to us.

So rather than complain… leave.

Makes perfect sense to me; if there is any state that knows that gamblers who cheat are bad for business, it is Nevada.

@ibsteve2u-Good one…busted out laughing when I read. I never thought to look at it in that sense. I for one appreciate your humor…but then again it is true. Think they’ll take them to a back room? Or better yet…a walk in the desert?

It is just a question cause confused. simple language. what happens to this country/ or world if we bring the banks down?

Do the persons the banks forclosed on get their homes back if the states win? and moneys,or the states?

Is there any truth in the statment we need to forclose on said number of diliquent homes to re-ignite the building industry?

enough for now.
thankyou for reading


Collection rights—-the entity that bought COLLECTION RIGHTS to your UNSECURED, FRAUDULENT “DEFAULT DEBT” is foreclosing on you and destroying your lives—-

THIS IS THE WHOLE TRUTH…and it’s all in violation of FDCPA and TILA!!!!!!!!!!!!!!!!


“Fannie and Freddie—-GSEs—-could not just sell the Note- on performing loans—- this would be securities fraud to the GSE security investors.  The Note (and it’s receivable stream) had to be falsely placed in default and charged-off in order to sell the “Note”—- but, when this happens the Note no longer exists—thus, all that is sold is collection rights to a once existing note. 

Security investors fund the BANK—not the borrowers—there is no direct relationship between security investors and borrowers.  If banks are able to sell their income stream, that is an accounting transaction—it is not a “loan” to borrowers.  This is why security investors are NEVER the creditor. 

Collection rights transfers are not funded by borrower transactions (ie fabricated refinance).  Collection rights are transferred by assignment—not NOTES (which is why NOTES are fake).  When Nancy talks about Non-Deposit “trust” non-members—she is referring to derivative transactions—that “SWAP” out collection rights—although the credit enhancers pay cash for collection rights—they use insurance for the purchase of the rights.  This is why the subprime was so profitable—the bank debt buyers put up no cash for transaction—but, were then able to profit by the “sale” of the receivable pass-throughs to security investors..  This is also why MBIA (insurance co.) legal action against BOA and others is hugely important.” 


Collection rights were transferred by assignment—-NOT NOTES.

Let that sink in a while…

Hank Hudson

Aug. 31, 2011, 5 p.m.

The basic"truth” of what’s going on in the USA and worldwide is
“For the love of money is the root of all evil”...the entire system has burned into greed, corruption, lies, and hate.  I forsee even more negative acts towards the common, hard-working people.  There is some sort of evilness taking over the world.  Compassion, justice and honesty no longer exists with the people controlling $$$$. 
Unfortunately, we’ve gotten to the point of of our existence that the best of times is over, and whatever we can to exist as indivuals is the only answer.  The politicians, President, money-controlling institutions are only out for themselves.  Unfortunately, I don’t have an answer to this terrible situation, except that I do read the Holy Bible for some solice and peace of mind, because this world doesn’t make sense anymore.

to carie
I offer no solution but see your a very opinionated person on many subjects..
without quotes, and in a simple language, can you please describe what you want to happen, the ending results and how long will it take for this country to recover?

okay, bill—-here you go:

I want the WHOLE TRUTH regarding the insane mortgage fraud/ponzi scheme revealed to the American people…

That the mortgage-backed securities were NOT mortgage-backed…

I want people to know that the mortgages are not real…that hard-working Americans were defrauded…and abused…

I want the people who were kicked out of their homes to get their homes back, or be given restitution and/or compensation…

I want regulations to be put back in place so that this kind of fraud can never happen again…

I want the banks to stay OUT of Congress…and Congress has to stop being bought by the banks and Wall Street shysters…

I want Americans to get back to work re-building the infrastructure of America…which is crumbling faster than we know…

I want JUSTICE FOR ALL…not just a few…

That’s a little bit of what I want…

if any other company or individual committed fraud like this there would be a criminal investgation not just a settlement, why should they be in business after this, allow other banks to buy their assets and eliminate the name and bad memories of 2008 meltdown that everyone has suffered through.

@Carie-I want the very same things…tired of my hard earned tax money bailing out dishonest banks. I’ve learned 1st hand of their dishonesty. My foster father was a president of local bank when I was a teenager…he did not do banking like these people are doing. I’ve pretty much stayed current with my “mortgage” these last 2 years, all the while having my good credit trashed falsely and lied to at every turn. I’m with you…these banks need to own up to their misdeeds. You or I would be imprisoned for a lot less. They can go into bankruptcy and receivership just like any other person/corporation.
@Hank Hudson-You are correct….very sad what is becoming of this once great nation due to the lack of morals being displayed every day. I truly pray for our country!

to carie, not against you, really. Just a big how, when, and the end results! 
Everyone seems to have a I want or think but no comments on how.
thanks again

to c not against you, really. Just a big how, when, and the end results! 
Everyone seems to have a I want or think but no comments on how.
thanks again

Here is a big part of the solution.

It is called super organization using information and communications technologies.

Just the number of comments on this page in the little time it has been published shows how effective the technology can be.

I am very experienced with this and have been planning some sort of organized response for a long time (which is what it takes.)  Last year I formed a not-for-profit to address, not just this type of problem, but to deal with the underlying, root causes.

I just stumbled over this page and believe that there are millions of people with stories such as the ones submitted here, and there are many millions more who have been ripped off in other ways.

In the U.S. more than 80% of people are disgruntled with government!

We as a people can do something, but it has to be done in the right way, for example, in the way that Singapore became so prosperous, which I have studied.  [There is a lot involved so please don’t jump to conclusions.

I you really want to do something for yourself and for all of us, you will need to commit some time each week and work together in a cohesive way.  97% of people basically have the same core values The reason the bad guys have been winning is because the good guys are fragmented.  Send an email to rdsmith08 AT

For starters, if you like, please copy and paste this post where there are other people who need help and want to help.


to all!! I don’t disagree with you in anyway who want to see the banks punished and homes returned were leget(spelling) sorry..
I just want it noted that I have nothing to do with Jim’s comment or site and that he still didn’t answer a single qustion that I have posted!( why not JIM)
those are my concerns as well as all those who have suffered from whatever happenings took place.past, now or in the future.
thanks again

If you still have accounts with ANY retail BANK, you are still part of the problem. Period. MOVE all accounts to credit unions. I’ve been with CUs all my life and will never use a retail, fore profit, non local scam bank again.

Patricia Maddox

Aug. 31, 2011, 8:44 p.m.

There is little to no help for homeowners.  Now defunct WAMU broke into my home without a court order and locked me out and destroyed the property.  Can you say “trespassing”?  I have been tied up in litigation for almost 6 years.  My Senator referred me on to  Forget it, the only help you are going to get is have them help limit the bank’s liability.  The Office of the Comptroller has now filed papers 6 years later to try and limit my recovery for the damage to my property. If I could afford an attorney, I could have afforded the mortgage. Go to the Attorney General’s office?  Good luck with that.

What did the people and courts do to horse thieves in the 19th Century? What did the French do to lawyers during their revolution? What were the town square stocks when they held the miscreants for public display.

Yeah Bank of America sucks at helping people, they tried to help me they say by lowering my payments by a big 73 dollars, which took me and my wife almost 1 1/2 years of asking for their help, and now they are calling us almost daily for us to sign the modification papers, they waited till we both had to get more jobs just to cover what we owe and they turned around and used that to justify the 73 dollar modification, ain’t that a bitch?

Guys—-PLEASE—-force the banks to PROVE that your “mortgage” payment is actually SECURED DEBT.  IT’S A LIE.

I haven’t paid in MONTHS because they couldn’t prove that the “loan” was actually in the “trust” that they claimed it was in…I said “Show me the ledger—-show me the balance sheet—-show me conveyance of my payments to an actual mortgage!!!” 

They couldn’t…and they can’t. 

Did you buy a house or refinance in the last 12 years???

If so, then you are paying a “servicer” on unsecured false default debt…and they are ILLEGALLY pretending like it’s secured.

They put your “fake loan” into false default after you signed…so that they could begin a giant ponzi scheme with your “payments”—-not your NOTE—-funneled through Wall Street…that’s why the economy crashed…

This is what the NY Attorney General is going to discover…and the “powers that be” are trying to stop him…

This article is part of an ongoing investigation:
Foreclosure Crisis

Foreclosure Crisis: Banks and Government Fail Homeowners

Banks and the government have fallen short in helping homeowners in danger of foreclosure.

The Story So Far

Systemic failures at the country’s banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, and government efforts to limit the damage have fallen short. ProPublica created an unrivaled database of homeowners who have faced foreclosure, opened a Facebook page to encourage homeowners to share their stories, wrote profiles of some of them, and incorporated their experiences into our reporting. We also provided a comprehensive rundown of the numbers behind the crisis.

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