Friday, July 15, 2011

DEUTSCHE, YOU WILL LOSE THIS ONE. YOU SHOULD HAVE NEVER MESSED WITH LYNN SZYMONIAK.

Deutsche Bank Sues Foreclosure Fraud Expert's Son With No Financial Interest In Her Case

Foreclosure

WASHINGTON -- Deutsche Bank appears to have retaliated against a high-profile foreclosure fraud expert, whose years-long battle against her own foreclosure helped reveal a wave of apparent malfeasance, by suing her son.

The expert, Lynn Szymoniak, an attorney who specializes in white-collar crime, is widely considered on Capitol Hill to be one of the nation's top experts on foreclosure law. When Deutsche Bank attempted to jack up the interest rate on the mortgage for her Palm Beach Gardens, Fla., home in May 2008, she contested the move, setting off an investigation which unveiled mountains of forged signatures and fraudulent bank paperwork associated with the foreclosure process.


Szymoniak alerted other attorneys, neighborhood advocates, lawmakers and the media about the apparent rampant fraud. She appeared on "60 Minutes" in April to discuss the broader foreclosure scandal [video appended below].
Her own home has been in foreclosure since June 2008. A month earlier, she had been notified that the interest rate on her adjustable-rate mortgage was being raised, increasing her monthly payments by about $1,000. But the terms of her mortgage only allowed interest-rate hikes at certain dates.
In an interview with The Huffington Post, Szymoniak noted that Deutsche Bank was not acting within the allowed timeframe.
"They missed my adjustment date, and then when they figured it out, they just slapped that higher payment on anyway," she said. "I paid one payment at the higher rate and then I said, 'This is ridiculous.' And I stopped paying and then they sued me in June '08."
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After she'd been sued, Szymoniak said, she began investigating the documentation on Florida foreclosures, uncovering alarming irregularities, including signatures that were apparently forged. If so, those signatures allowed banks to push foreclosures through overly quickly, charge improper fees and assert improperly inflated borrower debts.
Shortly after appearing on "60 Minutes" Szymoniak won a major victory in her own foreclosure case. The court found that Deutsche Bank was unable to demonstrate ownership of her mortgage, which had originally been issued by the defunct subprime mortgage lender Option One, and threw the case out.
Deutsche Bank was permitted to refile their case if the bank could obtain proper documentation, however. And on Friday, May 6, Szymoniak received a notification from the bank's lawyers that she was again being sued for foreclosure.
But Deutsche Bank wasn't just going after her. The bank was also attempting to sue her son, Mark Cullen, who is currently pursuing a graduate degree in poetry at the New School in New York. Cullen hasn't lived in Szymoniak's house for seven years and is not a party to any aspect of her mortgage -- he has no interest in either the property or the loan, and never has had any such interest, according to Szymoniak.
"It is just absolute harassment," Szymoniak said. "He doesn't own anything, for god's sake! He's getting a masters in poetry. He not only doesn't have any money, he's never going to have any money."
And other Florida foreclosure experts say it's difficult to interpret Deutsche Bank's move as anything other than retaliation for Szymoniak's media presence. If it is not, in fact, retaliation, they argue, then Deutsche Bank's lawyers have demonstrated rank incompetence.
"It sounds crazy," said Margery Golant, a principal with the foreclosure defense law firm of Golant & Golant PA in Florida. "I can think of no legitimate reason, if he doesn't have some connection to the property or to the mortgage, to include him in an action to foreclosure."
"It's an intimidation tool," said Matt Englett, a partner at the Florida law firm Kaufman Englett Lynd PLLC. "Most people, they get scared and they get nervous and I think that's the effect that they're trying to have on him and his mother."
"If he's not an owner of the house, it's pretty clearly just vindictive," said Joshua Rosner, the managing director of Graham Fisher & Co., a mortgage investment firm. "If they're doing it intentionally, that's one hell of a statement. If they're doing it randomly, that's still pretty incredible."
The experts said the lawsuit against Szymoniak's son could also have negative implications for him beyond the immediate costs of fighting the foreclosure case, even though he has no financial interest in anything related to it.
"He's going to have a lawsuit out there against him," Englett said, "so if someone were to do some kind of background check against him, that would come up."
Watch Szymoniak's "60 Minutes" interview:




Update:
Deutsche Bank maintains that it is not to blame, and notes that while it is legally listed as the plaintiff in the Szymoniak foreclosure case, another company directs the actual legal maneuvering.
"Pursuant to the aforementioned contracts for securitization trusts, loan servicers, and not the trustee, are responsible for foreclosure-related legal proceedings. The attorneys and law firms who oversee foreclosure proceedings on behalf of the trusts are engaged by loan servicers rather than the trustee. Loan servicers are obligated to adhere to all legal requirements, and Deutsche Bank, as trustee, has consistently informed servicers that they are required to execute these actions in a proper and timely manner," said Deutsche Bank spokesman John Gallagher.

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11:19 AM on 7/05/2011
These banks are CRIMINAL ENTERPRISE­S. The have knowingly and systematic­ally setup organizati­ons and business processes to commit FRAUD and PERJURY.

America DEMANDS criminal prosecutio­n and that the guilty go to PRISON.

AND American DEMANDS that the US Department of Treasury but investigat­ed for PUBLIC CORRUPTION and OBSTRUCTIO­N OF JUSTICE.
06:03 PM on 6/15/2011
bank has done so many bad stuff, if all docs are given out to wikileaks, the American Bank system would fall

Bank Foreclosur­es
01:14 PM on 5/19/2011
what great about this article is it proves that this women who stood up an started fighting these fraudlent banks is WINNING (to quote Charlie Sheen), It proves you can put the banks back against wall when you know and understand how to use proper administra­tive procedure and your rights, let not give up the fight now espically when all the bank and lawyers have are there dirty tricks.... rememeber what the general said...

Truth will ultimately prevail where there is pains taken to bring it to light. GW


http://www­.righttoca­ncel.com/i­nfo
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Joe Padilla
Who really puts the BS in JOBS?
11:57 AM on 5/19/2011
When the country goes back into recession, and it will this year, I hope the bankers are dragged from their buildings.
11:44 AM on 5/19/2011
I thought it was possible to do some pretty unpleasant things if anyone attemptef to use a court to enforce a fraud or to harass. I know of corporatio­ns that have bee barred from doing business in Virginia because of their misbehavio­r; Couldn't they use this to get German Bank barred in the U.S.?
01:57 PM on 5/16/2011
They operate like the mafia. Can't the government do someting about these thugs?
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Dave Harpe
Was young, now old.
12:11 PM on 6/13/2011
Nope. The thugs own the government­, too, until the people wake up and vote their henchmen out of office.
08:22 PM on 5/15/2011
interestin­g to see how this unravels as a Bankruptcy Attorney and plays in the favor of thousands of debtors.
02:44 PM on 5/15/2011
Another bank that isn't exactly eager to prove that the reason they function is because they have a reputation to lose.
08:45 AM on 5/15/2011
There is only one Mark Cullen listed in the court docs, and he is listed as an atty, not a defendant? Her foreclosur­e filing date was in July, July 22, 2008. Easily checked facts that could have been made prior to posting the story.
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ChasG
Unborn, unchanging, undying Universe
10:54 PM on 5/16/2011
That's useful informatio­n.  Can you provide a link?
06:32 AM on 5/17/2011
Not sure if the link would copy over correctly, sometimes they don't. All I did was search Palm Beach court records.
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Dave Harpe
Was young, now old.
12:24 PM on 6/13/2011
Do lawyers have such a bad reputation that one of them would rather tell his own mother that he is a poetry student with no chance of ever making real money, instead of the much uglier truth? What's worse, "Oh my God, my son is a worthless beatnik poet!" or "Oh My God, my son is a crooked, slimy LAWYER!" I would prefer the beatnik poet every time. There might really be a Hell, you know.
02:22 AM on 5/15/2011
My e-mail to Pam Bondi

Dear Pam Bondi,
I am upset by your lighthande­d approach to the fraud that banks and foreclosur­e law firms have so far gotten away with in this state.
As the chief law enforcemen­t officer in Florida, and a member of the Florida Bar, your duty is clear. To do anything less than full prosecutio­n on those who would, fabricate, and use fraudulent documents in court proceeding­s is a violation of your oath as a officer of the court, and Attorney General of the state of Florida.
We are in troubled times, and the public needs to know that the law applies to all, great and small. If rule of law, is perceived as rule of the rich, then civil unrest and revolution will be the result.
Do you think Judge Judy would rule in favor of a plaintiff or defendant who produced a fraudulent document to win their case? NO! because it would violate the”CLEAN HANDS DOCTRINE” that no relief shall be granted to a party who engages in unlawful activity.
I ask that you do your duty.
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Carolab
62 and liberal in Minnesota
03:28 AM on 5/15/2011
Write it up as a letter and send it instead.
02:18 AM on 5/15/2011
Well although it is not mentioned in the story, she also has a daughter in college. Why not the same treatment for her?
I can understand the banksters going after Ms Lynn Szymoniak. After all she was directly responsibl­e for the exposure of DOCX owned by LPS of Jacksonvil­le FL, in what is going to cost all the to big to fail banks BILLIONS!
Before public outrage builds the banks want to crush her, while maintainin­g that there were only minor paperwork issues among a few cases, instead of the widespread fraud that they have perpetrate­d at every level, from prospectus to investors, loan originatio­n, inflated appraisals­, bribed rating agencies, not delivering documents into trusts, buying and collecting default insurance from AIG without having to turn over the notes. Using MERS as a tax evading front, and strawman/s­hillmaster­.
There getting the FREE HOUSE!
They have ruined our economy, and even though they were in such desperate straits when they got the bailout money, the to big to fail banks paid back the money in a year, and started handing out bonus money immediatel­y.
And to big to fail is looking like their to big to prosecute. The robo signing by multiple people pretending to be bank officers, and notaries notarizing documents intended for use in court is a felony. I sent Pam Bondi a e-mail to let her know how I feel about this fraud. You should send your state AG a e-mail.
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Carolab
62 and liberal in Minnesota
01:29 AM on 5/15/2011
The US GOVERNMENT SAYS THAT DEUTSCHE BANK L I E D

irst they ignored us. Then they fought to discredit us. Now finally, they are agreeing with us.
The lawsuit that appears below is the most significan­t piece of litigation that has been presented in this fight yet.  The profound significan­ce of this lawsuit cannot be understate­d.  And just think what is at stake here.  Every single United States taxpayer is on the hook for trillions of dollars in ill-gotten and fraudulent gains that have been shipped offshore.  This lawsuit shows that thefraudclosu­re crisis is so much bigger than what is happening in our local courthouse­s…it’s even bigger than what happens on a national level….it transcends the 50 state AG investigat­ion and everywhere up and down the food chain.

The significan­ce of this cannot be overstated­……

http://mat­tweidnerla­w.com/blog­/wp-conten­t/uploads/­2011/05/54­527422-Uni­ted-State-­of-America­-vs-Deutsc­he-Bank-an­d-Mortgage­-It-Inc.pd­f

U.S. Says Deutsche Bank Li-ed
Suit Accuses Lender of Misreprese­nting Quality of Loans Made by Mortgage Unit

http://onl­ine.wsj.co­m/article/­SB10001424­0527487038­3480457630­0911120513­834.html
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Klarsonent
Semi-retired landlady, small business entrepreneur
03:55 PM on 5/15/2011
Excellent links.
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Dave Harpe
Was young, now old.
12:28 PM on 6/13/2011
How will this case do when it reaches the 5 corporate stooges in the US Supreme Court?
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Carolab
62 and liberal in Minnesota
01:22 AM on 5/15/2011
Here’s a link to the New York Fed’s new proposal that would appear to be the start of a MERS whitewash.

(1) revise the law, whether state or federal (working with Congress and federal agencies) to remove unnecessar­y legal impediment­s to current good mortgage loan practice and the efficient and transparen­t processing of transactio­ns;


(2) provide statutory or regulatory backup for market developed mortgage transfer operations and clarity for the documentat­ion and procedures necessary to the certain operation of that process; and
(3) revise the law for maximum efficiency in the process to accomplish the lowest cost for transactio­ns for lenders and borrowers alike.


http://www­.newyorkfe­d.org/bank­ing/consum­erprotecti­on/a_forec­losure_cri­sis.pdf
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ChasG
Unborn, unchanging, undying Universe
11:41 PM on 5/16/2011
What do you mean by "the start of a MERS white wash?"
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Carolab
62 and liberal in Minnesota
12:55 AM on 5/17/2011
Do you remember this?

HR 3808  ‘The Interstate Recognitio­n of Notarizati­ons Act of 2010’
This bill, aka "The Great MERS Whitewash Bill," was introduced in 2009, ostensibly to make it easier and more efficient for courts to recognize out-of-sta­te documents.

http://dai­lybail.com­/home/acti­on-alert-s­top-congre­ss-the-fed­-foreclosu­re-fraud-w­hitewa.htm­l

MERS is owned by all the biggest banks, and they certainly do not want it to be sunk by huge fines. Investors in mortgage-b­acked securities also do not want to see the value of their bonds sink because of doubts about the ownership of the underlying mortgages.

So it looks like the stage may be set for Congress to pass a bill that would limit MERS exposure on the recording fee issue and perhaps retroactiv­ely legitimate mortgage transfers conducted through MERS private database.

Didn't pass.  BUT If they "nationali­ze" the mortgage securitiza­tion process, it's baaaaccck.
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Carolab
62 and liberal in Minnesota
01:42 AM on 5/17/2011
ALL MAJOR FEDERAL AGENCIES JOIN IN ORDERING MERS TO STOP CURRENT PRACTICES

April 13, 2011

MERS AND MERSCORP ENTERED INTO A CONSENT CEASE AND DESIST ORDER FINDING DEFICIENCI­ES IN THE PRACTICES AND PROCEDURES THAT POSE A RISK TO THE MEMBER BANKS.

http://liv­inglies.wo­rdpress.co­m/2011/04/­13/federal­-agencies-­enter-ceas­e-and-desi­st-order-a­gainst-mer­s/
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Carolab
62 and liberal in Minnesota
01:53 AM on 5/17/2011
Yves Smith Monday, April 4, 2011 Cease and Desist Orders as Regulatory Theater in Mortgage Settlement Negotiatio­ns

Now on the surface, this sounds sensible. The banks are not cooperatin­g, so pull out a big gun and if needed, use it on them. But American Banker provided a link to the form of the cease and desist order and it looks remarkably weak. Its requiremen­ts are far less demanding than those set forth in the famed 27 page settlement draft that was presented by the AGs and the Federal authoritie­s to the banks.
It’s important to stress that a threat of action that is weaker than what you are demanding in a settlement makes no sense in a negotiatin­g context. It’s like offering to settle a lawsuit for $500,000 when the case only asks for $250,000 in damages. No one would accept the settlement­, they’d either fight in court or accept a default judgment.

Now some of my correspond­ents were of the view that a cease and desist order was a serious matter, so this might create a frisson in the press if this comes to pass. But this is simply not a very serious cease and desist order.

The interestin­g part here is the question of who is behind this C&D order, assuming it goes ahead. Per the reading above, this looks designed to undermine the settlement negotiatio­ns.

The interestin­g part here is the question of who is behind this C&D order, assuming it goes ahead. Per the reading above, this looks designed to undermine the settlement negotiatio­ns.

http://www­.nakedcapi­talism.com­/2011/04/c­ease-and-d­esist-orde­rs-as-regu­latory-the­ater-in-mo­rtgage-set­tlement-ne­gotiations­.html
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Carolab
62 and liberal in Minnesota
01:55 AM on 5/17/2011
Professor William K. Black on MERS and Foreclosur­e Fraud

May 7, 2011

MERS’ problems are legion, but they are also inherent in its structure. This column addresses only one aspect of its “agency” problem. MERS is set up in a bizarre fashion designed to minimize costs. It has only a trivial number of real employees. It has no ability to check its members’ initial or continuing quality or integrity. MERS appoints its members’ personnel as MERS officers and exercises no meaningful oversight over their actions.
As I have explained in prior articles, MERS’ members have endemic, severe problems with mortgage documentat­ion. They originated­, purchased, or agreed to service loans and collateral­ized debt obligation­s (CDOs) without the underlying mortgage note. Fraud begets fraud. The exceptiona­l incidence of underlying mortgage originatio­n fraud led to widespread failure to prepare and maintain proper documentat­ion – and that was before the mortgage originator­s failed. When the mortgage originator­s failed, as they did by the hundreds, mortgage documents were frequently thrown away. Mortgage documentat­ion became particular­ly defective because originator­s could sell mortgages without the purchaser even checking whether the seller was delivering the original note.

http://fin­dsenlaw.wo­rdpress.co­m/2011/03/­07/profess­or-william­-k-black-o­n-mers-and­-foreclosu­re-fraud/

Lots more at the link.
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ChasG
Unborn, unchanging, undying Universe
08:49 PM on 5/14/2011
Szymoniak'­­s son didn't have to do anything wrong.  She could have put the property into a revocable trust and made him beneficiar­y.  He’d not be on the mortgage and not be an owner, but could have a beneficial interest in the property the bank was foreclosin­g, making him a necessary party.  Speculatin­g, because we need more facts.

If her son was wrongfully sued, it’s easily dismissed by motion for summary judgment, which should happen within a few weeks.  It's been about a week, so I'll wait a bit.  If there’s no evidence at all to support his inclusion­­, the bank and its lawyers could be sanctioned by the court, and possibly required to pay money damages if inclusion of the son was frivolous.

Perhaps someone can explain what’s missing in the following, according to the story above:

1.  "When Deutsche Bank attempted to jack up the interest rate on the mortgage for her Palm Beach Gardens, Fla., home in May 2008, she contested the move...".

2.  "Her own home has been in foreclosur­­e since June 2008. A month earlier, she had been notified that the interest rate on her adjustable­­-rate mortgage was being raised..."­­.

3.  "...she said. "I paid one payment at the higher rate and then I said, 'This is ridiculous­­.' And I stopped paying and then they sued me in June '08.""

No state law allows a bank to sue for foreclosur­­e within the month that only the first payment is not made.  She must have been already in default on her mortgage before the bank notified her of the interest rate increase.  Why make one increased payment if she was already in default?  As a lawyer, she knew her contractua­­l obligation­­s.  Did she think if she made a payment, she could then claim damages against the bank for breach of contract?  Is she trying to game the system for revenge, money or both?  We don't know that either, but the only thing we do know is that there's a lot about this case we don't know.

I'm not a lawyer, but have been a regulator who managed small teams of lawyers recovering assets for financial institutio­­ns in receiversh­ip from other financial institutio­ns, and if one party goes to the press and tries to rally public support or bring public pressure to bear it's usually because they have a legally weak case and are trying to win in the court of public opinion.  Those with strong cases tend to keep their powder dry until they’re in court.
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Carolab
62 and liberal in Minnesota
12:11 AM on 5/15/2011
Stop it.  It's really sad.
01:09 AM on 5/15/2011
ChasG,
That is a very good case in point yes had Lynn Szymoniak put her property into a revocable land trust and made her son a beneficiar­y he would then be a party of interest as you know.
The timing of the conveyance to her designated trustee though may be scrutinize­d closely by the Deutche bank lawyers and her lender as well.. That is why you wish to have these setup in advance as part of your asset protection and estate planning strategy and no legal advice intended just my opinion.

He had nothing to do with this property from my understand­ing so this suit is baseless but the harassment I'm sure will continue.
I think she blew the lid off this and wished to go public not just to protect herself but to help millions of homeowners across this country negatively affected by these robosigner­s and fraudulent loan documents.­That certainly shows she has a high degree of ethics and integrity IMO.

I firmly believe that equity share transactio­ns with land trusts is one of the keys to avoid litigation and keep homeowners in their home if they do not wish to play ball then let the lender prove standing and now more lenders/ba­nks may just get sued for not stepping to the table to negotiate and create a win/win scenario for all parties.

My best wishes to Lynn Szymoniak she is a national hero.
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Carolab
62 and liberal in Minnesota
01:20 AM on 5/15/2011
She SAID he has no interest in the property; therefore the speculatio­n about any land trust is JUST THAT.

Are you and Chas suggesting she is a li-ar?
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liblizard
Military madness...it's killing our country....
03:59 PM on 5/14/2011
So how--exact­ly--is the name of this company pronounced­?
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ChasG
Unborn, unchanging, undying Universe
08:48 PM on 5/14/2011
Doi' - cha  Bank
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Carolab
62 and liberal in Minnesota
12:15 AM on 5/15/2011
Ain cha smart
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