The Resolution Law Group Update: Standard & Poors Wants DOJ’s Mortgage Debt Lawsuit Against It Tossed

Standard Poors is asking a judge to dismiss the US Justice Department’s securities lawsuit against it. The government claims that the largest ratings agency defrauded investors when it put out excellent ratings for some poor quality complex mortgage packages, including collateralized debt obligations, residential mortgage-backed securities, and subprime mortgage-backed securities, between 2004 and 2007. The ratings agency, however, claims that the DOJ has no case.

Per the government’s securities complaint, financial institutions lost over $5 billion on 33 CDOs because they trusted S & P’s ratings and invested in the complex debt instruments. The DOJ believes that the credit rater issued its inaccurate ratings on purpose, raising investor demand and prices until the latter crashed, triggering the global economic crisis. It argues that certain ratings were inflated based on conflicts of interest that involved making the banks that packaged the mortgage securities happy as opposed to issuing independent, objective ratings that investors could rely on.

Now, S & P is claiming that the government’s lawsuit overreaches in targeting it and fails to show that the credit rater knew what the more accurate ratings should have been, which it contends would be necessary for there to be grounds for this CDO lawsuit. In a brief submitted to the United States District Court for the Central District of California, in Los Angeles, S & P’s lawyers argue that there is no way that their client, the Treasury, the Federal Reserve, or other market participants could have predicted how severe the financial meltdown would be.

S & P is also fighting over a dozen other CDO lawsuits filed by state attorneys general that make similar securities fraud allegations. The states are generally invoking their consumer-protection statutes, which carry a lower burden of proof, and the credit rating agency is seeking to have their securities lawsuits moved to federal court.

If you, your family, friends, neighbors or associates have been subjected to Mortgage Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: The housing market will continue to suffer until it is fixed by the Courts or the Legislature.

While Congress continues to bail out banks and there are no criminal prosecutions against the bankers who participated in the robo-signing and other wrongful actions that created the housing meltdown, some people are being prosecuted who are involved in the housing crisis.

A Michigan woman, Tonya Cramier-Oncza, has been bound over for trial on felony charges for allegedly signing her former husband’s name to a loan modification application.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “while Ms. Cramier-Oncza should not have signed her ex-husband’s name to a loan modification application, one can only imagine how the criminal prosecutors evaluate which people they prosecute.  Banks and bankers have admitted robo-signing, using MERS, and doing so many wrongful acts.  However, people who worked for the banks are not being criminally prosecuted.” Ms. Cramier-Oncza apparently signed her ex-husband’s name to an application because his name is still on the title, and his signature was needed to submit the application.

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature.   Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners.  Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit.  For further information, visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Press Release

An 80 year old Oregon woman won her three year fight against Wells Fargo to stop a wrongful foreclosure.  Wells Fargo had been attempting to obtain a judicial foreclosure, despite the evidence that all payments had been made.

The woman and her late husband moved into their home in 1967, 46 years ago.  After Wells Fargo acquired Wachovia, some of the payments made during the transition did not show up on the computer records.  The homeowner received a notice of default and she went to her local Wells Fargo branch to try to show her cancelled checks.  The local banker would not speak with her because the computer said that she was in default.  It took three years and lots of attorneys fees to have the foreclosure case dismissed.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Wells Fargo could have resolved this dispute by looking at the paperwork and acknowledging its error.  What this eighty year old woman had to endure to save her home is shameful.”  Most people are unaware of how difficult it is to convince a bank that it has committed an error.  A borrower, armed with cancelled checks, is no match for a computer that disavows that payments were timely made.  Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature.   Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners.  Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit.  For further information, visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: United States Department of Justice has actually prosecuted someone involved in the housing crisis. However, the prosecution has received very little attention in the mainstream press.

While Congress continues to bail out banks and there are no criminal prosecutions against the bankers who participated in the robo-signing and other wrongful actions that created the housing meltdown, the United States Department of Justice has actually prosecuted someone involved in the housing crisis.  However, the prosecution has received very little attention in the mainstream press.

Che M. Brown, of Washington, D.C., was recently sentenced to serve three months of incarceration on a federal charge of bank fraud stemming from a scheme in which he submitted false documents to a mortgage lending service to obtain a loan modification for his residence.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “while Mr. Brown should not have submitted phony documents in order to obtain his loan modification, one can only imagine how the United States Department of Justice evaluates which people they prosecute.  Banks and bankers have admitted robo-signing, using MERS, and doing so many wrongful acts.  However, people who worked for the banks are not being criminally prosecuted.” Mr. Brown fell behind on his monthly mortgage in 2009 and his mortgage servicer encouraged him to apply for a loan modification.  He exaggerated his income in order to qualify for a modest loan modification in order to keep his home out of foreclosure.

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature.   Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners.  Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit.  For further information, visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Lender Litigation

Complex Tort Plaintiff Litigation – Suit Overview

•Named bank defendants are in the business of origination of residential mortgages.

•Following origination, the banks securitized the loans and sold them as investments.

•The banks pooled the loans before sale as a means of inflating their value.

•This evolved into a comprehensive scheme to inflate property values as a means of inflating their profits.

It is alleged that the banks were aware that these practices would create a real estate bubble, which would devastate their borrowers when it popped. At the time the banks originated the loans, they concealed from the borrowers that their loans would be securitized and sold to unknown third parties.

•Further, the banks concealed that their individual loans were part of a massive, fraudulent scheme to inflate property values.

•The banks were under a duty to disclose these details to each borrower.  The bubble eventually popped, in 2008, and devastated homeowners.

•The bank defendants thus systematically destroyed home values across the nation.

•Plaintiffs lost equity in their homes, suffered damage to their credit profiles, an incurred other damage.

About Securitization

Securitization takes a commonplace, mundane transaction and makes very strange things happen. It is argued that in the case of a securitized mortgage note, there is no party who has the lawful right to enforce a foreclosure, and the payments alleged to have been in default have, in fact, been paid to the party to whom such payments were due.

Additionally, in the case of a securitized note, there are rules and restrictions that have been imposed upon the purported debtor that are extrinsic to the note and mortgage* as executed by the mortgagor and mortgagee, rendering the note and mortgage unenforceable.

It may be that as it now stands, a lawful foreclosure cannot occur against a mortgage whose note has been securitized because of the lack of an actual damaged party who has standing to state a claim.  The note may well be unenforceable because the unnamed parties who are receiving the pre-tax income from the entity are the real parties in interest. They hold the legal and/or equitable interest in the mortgages held, but they do not have the ability to foreclose on any one individual mortgage because the mortgages held by the REMIC have all been bundled into one big income-producing unit.

The Resolution Law Group, along with attorneys across the country, are pressing this cause of action to enforce relief to homeowners at risk of foreclosure. State rulings are coming down on this side of the issue, in support of the homeowner.

We approach every client’s transaction history, with their lender, and that lenders’ history with its servicers, originators, and the loan funding history, with an aggressive and extensive forensic support alliance. Our auditors are some of the most experienced in this emerging area of lender litigation. Our securitization and funding auditors, FFS SEC, have dismantled thousands of mortgage originations to expose the trail of transferred debt ownership, that is the foundation of emerging foreclosure defense.

EXAMPLE OF SEC REPORT

Causes of Action

Fraudulent Concealment

•The banks were in possession of information regarding their underwriting guidelines, securitization practices, and the inflation of property values, when it entered into mortgages with the plaintiff borrowers.

•The banks had a duty to disclose this information to borrowers.

•The banks made material misrepresentations regarding this information, and otherwise concealed the information from borrowers.

•The plaintiffs relied on this misinformation in deciding to enter their loans.

•The plaintiffs were subsequently damaged as a result of these circumstances.

Intentional Misrepresentation

•The banks made misrepresentations regarding their business practices, as detailed above, with the intent of inducing borrowers to sign home loans.

•The plaintiffs relied on these misrepresentations in entering the loans.

•As a result of this, the plaintiffs were damaged.

Negligent Misrepresentation

•Same cause as intentional misrepresentations, but in this charge it is alleged that, even if the misrepresentations were not intentional, they were negligent in that, a reasonable bank acting in good faith would not have made the same misrepresentations.

Injunctive Relief

•The banks violated these laws by basing foreclosure actions on false records.

Unfair Competition

•The bad faith business practices of the banks, as outlined above, constitute unfair competition, and violate State law.

Breach of Contract

•The banks accepted TARP money, and in so doing, were required to use this money to modify home loans, creating a contract.

•The banks did not perform this obligation, and thus breached this contract

If you, your family, friends, neighbors or associates have been subjected to Mortgage Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

Lehman Brothers Australia Wants Federal Court to Approve $248M Settlement Payment Plan to Creditors

The liquidators of Lehman Brothers Australia want the Federal Court there to approve their plan that would allow the bank to pay $248M in securities losses that were sustained by 72 local charities, councils, private investors, and churches. Although the court held Lehman liable, no compensation has been issued because the financial firm went bankrupt.

Per that ruling, the Federal Court found that Lehman’s Australian arm misled customers during the sale of synthetic collateralized debt obligations. The court also said that Lehman Brothers subsidiary Grange Securities was in breach of its fiduciary duty and took part in deceptive and misleading behavior when it put the very complex CDOs in the councils’ portfolio. (Lehman had acquired Grange Securities and Grange Asset Management in early 2007, thereby also taking charge of managing current and past relationships, including the asset management and transactional services for the councils.) The court determined that the council clients’ “commercial naivety” in getting into these complex transactions were to Grange’s advantage.

Via the liquidators’ plan, creditors would get a portion of a $211 million payout. This is much more than the $43 million that Lehman had offered to pay. The payout would include $45 million from American professional indemnity insurers to Lehman, which would then disburse the funds to those it owes.

If the Federal Court approves the settlement, IMF will dismiss a class action securities case against Lehman.

Securities Fraud
Brokerage firms are not supposed to get unsophisticated or conservative investors involved in high risk, complex investments, even if the customers are institutions and not individuals. When doing so results in investment losses, there may be grounds for an institutional investment fraud case.

If you, your family, friends, neighbors or associates have been subjected to Securities Fraud, please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group, P.C. “Huge” Settlement with some of the larger banks

The Resolution Law Group – The Office of the Comptroller of the Currency (OCC) and the Federal Reserve announced another “huge” settlement with some of the larger banks. Geoffrey Broderick, the senior partner of the Resolution Law Group, says “This is another headline designed to make homeowners believe that the Government is taking steps to hold banks and servicers accountable for the mess that has been created.” What had previously been rumored as a $10 billion for 14 servicers, turned out to be $8.5 billion for 10 servicers. $3.3 billion has been earmarked for direct payments to “eligible borrowers” who were wrongfully foreclosed – assuming a process can be created to identify these former homeowners who were wrongfully displaced from their homes. The balance of the money, $5.2 billion will be “soft dollars” applied to loan modifications and short sale relief.

Mr. Broderick adds that “The government was a major contributor to the current housing crisis by helping the banks and servicers carry out their practices that were designed to maximize bank profits and were destined to create the largest housing and financial crisis of all time.”

This so-called “huge” settlement will not provide meaningful relief for homeowners and will not fix the problems most borrowers continue to face. Mr. Broderick maintains that the Government, by announcing a series of settlements and programs, is simply confirming its partnership with banks and financial institutions, and the headlines and press releases fail to inform homeowners that the new arrangement eliminates the Independent Foreclosure Review, a program that was supposed to give homeowners an opportunity to have an unbiased third-party review their foreclosure and determine whether they might qualify for a cash payment f up to $125,000.

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.
The Resolution Law Group is currently enrolling clients into the pending lawsuit.
For further information, prospective clients are invited to call the law firm or visit its website at www.TheResolutionLawGroup.com

The Resolution Law Group, P.C.
500 West Putnam Avenue, Ste. 400
Greenwich, CT 06830
855-527-7506 (Direct)
855-228-1337 (Fax)

Please watch this video from “60 Minutes

http://www.cbsnews.com/video/watch/?id=7361572n&tag=related;photovideo

www.theresolutionlawgroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud