Wells Fargo Takes Major Gut-Punch - 01.10.11 | Real Estate News for Real Estate and Mortgage Professionals

ThePhoenix: (January 13, 2011 9:38am)

I understand the argument that the banks are needed. But I disagree with your conclusion. While a painful transition, I would argue that it would be good for the Big 5 lenders to disappear which would create a new opportunity for new players who do not have all the baggage. These new players would would be free from losses and I can make a great case it would be better for us all. Today, those new players are barred from entering by the stronghold of the Big 5. The Big 5 have to make up too much money to cover their losses for their bad behavior that a new player would not have. Keep in mind, a new big player would love to be involved, the profits would be huge and it is a viable opportunity... so they will come.

stevenlee: (January 12, 2011 7:05pm)

Will this hurt banks NO. Check HJR 192. The debts created by the government & the Federal Reserve Bank are DISCHARGED against the American people, against our Entity our name in ALL CAPS. The more the courts see FRAUD created by the banks & eliminate mortgages the less debt will be distributed against the people. This is an opportunity for all AMERICAN PEOPLE to FIGHT to KEEP their home. The Supreme Court in Mass. go it RIGHT, more courts need to follow. Forget if we took out a loan, did the BANK RISK their money NO, did they provide FULL DISCLOSURE NO, Did they tell you who owns the Note NO, Can they prove where the original funds came from NO. Was money printed from the Federal Reserve & given to the bank to pay off your debt, if so isn’t this counterfeiting? What about chain of title & the note & mortgage being seperated. I can go on and on. I must APPLAUDE this COURT in MASS for getting it right. Now the rest of the Judges in American need to follow, NO ONE IS ABOVE THE LAW.

Redrocket78: (January 12, 2011 1:47pm)

Awhole lot a Bankers need to be IN JAIL. Submitting false testimony to the court in the form of a 'ROBOSIGNED' affidavit is and always will be PERGURY...plain and simple. IT IS NOT OKAY!!!! The integrity of the court is way more important than the freedom of bank officials that feel they can take shortcuts with the law. The banks will fail again because the culture of greed is still alive and well. Banks still feel they are entitled to take your money in the form of a fee for doing absolutely no work and charge interest for taking absolutely no risk. Banks still feel it is perfectly okay to offer a product to a client that is no good for them so long as the bank makes money in the short term. Americans have no (ZERO) confidence or trust in banks right know and 'Forclosure-gate' has made it much worse. Right NOW in New Jersey there are thousands of properties everywhere waiting for banks to decide what the deal is going to be (aprove the short sale). Everyone else is ready to go.

Mensanto: (January 11, 2011 3:23pm)

We offer Wells Fargo $150,000 for a short sale. Wells refuses, then forecloses, and sells the property for $100,000. They do this over and over and over and over.... When we try to talk to Wells about it, the only response we get is the silent middle finger. There should be a fifty percent tax in this situation, or $25,000 against Wells for the $50,000 reduction in the home value.

loan-wolf: (January 11, 2011 1:49pm)

There are some great books about our problems. First is THE BIG SHORT by Michael Lewis, author of LIAR'S POKER about the start of the MBS industry. Another is FINANCIAL SHOCK by Mark Zandi, chief economist at Moodys. Get the 2009 revised one. Also Robert Shiller, the guy who wrote IRRATIONAL EXUBERANCE and is behind the Case-Shiller housng index wrote THE SUBPRIME SOLUTION. These are pretty smart guys and if you are wondering where we are heading, this is a goo place to start. Finally, for an hour plus of nice entertainment next weekend, go to a movie theatre and see INSIDE JOB.

James H: (January 11, 2011 12:14pm)

Hi Guys, I agree with you guys most of the time. I disagree with you on this. The banks are out of control! My brother is currently in litigation with a bank over his loan mod. The bank foreclosed on him while he was in a loan mod. I'm a CA broker. I helped my brother overturn the trustee sale. This in CA is next to impossible. While in litigation the bank still tried to sell the property at trustee sale. My brother attorney has had to get 3 restraining orders against the bank. They were ordered to mediation. The bank and their attorneys refuse to workout anything. They claim no trustee sale ever took place, let alone any loan mod. My brother has all the paperwork to prove his case. The banks attorney said the documents are fake or they have never seen them before. So I for one would like to see this bank get a beat down. Enough is a enough. At some point we must stand up against this kind of BS. Yes, there are people who should not be in their property. Yes, they had a contract to repay their loan. And yes we bailed out the banks with the promise they would in turn help people in need of help. How did they return the favor? ROBO signing!!!!! Just because they control the money

[email protected]: (January 11, 2011 10:01am)

Frank, like the new look. We are all in trouble. You are right the money flow is the bottom line.

rayprose: (January 10, 2011 9:50pm)

If anyone out there wants to read an astounding book about what has happened in this banking melt down and what will continue to happen you have to read "The Creature From Jekyl Island" It was written in I believe the 50's and predicted told of how the Fed was created and what would occur in the future. It is eerily close to what has actually transpired to date. The scary thing is that what it predicts in the future may still happen unless we derail this train FORCEFULLY!

sue806: (January 10, 2011 9:29pm)

home that is worth less than the outstanding mortgage balance owed because the investor would lose the automatic difference between the distressed selling price and the outstanding mortgage balance owed due to the negative equity, itself. • Defaults, short sales and deeds in lieu are expected to rise, decreasing housing values more, as negative equity homeowners’ increase from the current 23% to 48% of all homeowners as housing values continue to decline another 10 to 15% in 2011 alone per leading industry researchers. • Purchasing a home is a capitalist personal business decision for the single largest “investment” of most peoples’ lives not a social entitlement. No homeowner was entitled to a modification until the financial industry changed the rules for over 3.5 million negative equity homeowners then all negative equity homeowners were entitled to the same financial benefit of a modification. • The financial industry made a necessary sound capitalist decision to modify negative equity homeowners to avoid their losses from continuing. The action, itself of modifying negative equity homeowners set the precedent giving the same legal right to all

sue806: (January 10, 2011 9:27pm)

United, we have the power to change the bias favoring of Wall Streets’ interest by ending the policy of socializing the losses at our expense while allowing the profits to remain privatized. There is no reason why any taxpayer should pay for anyone’s mortgage losses but their own. Returning the losses to their rightful parties creates a taxpayer free cash stimulus of over six billion dollars each and every month into Main Streets economy in addition to the immediate increased number of jobs creating “a shovel ready project” fueling our economy’s recovery and long termed economic stability. • The one capitalist rule that all homeowners understood and agreed to is, if you don’t pay your mortgage for any reason, you are foreclosed on. • There is no financial benefit to the negative equity homeowner to continue paying on a “defective” mortgage for YEARS to pay Wall Street’s profits when it is financially better for the negative equity homeowner to cut their losses (strategically default) as they would with any other” investment”. • The financial industry automatically loses a portion of their capital investment when they foreclose on any h

5pence: (January 10, 2011 7:54pm)

hi kim : I tried leaving a comment but it wants to link to other accounts of mine that I don't know the passwords to. It's good to express yourself and vent, for sure. Good night all

kim: (January 10, 2011 5:49pm)

I agree with this person. Read it and tell me what you think. http://crysys-mypointofview.blogspot.com/2011/01/ok-where-do-we-start.html

kim: (January 10, 2011 5:22pm)

5pence: I actually agree with you. What I think should happen actually is there shouldn't have been any bail outs. If for instance, Chevy failed due to their bad business practice, then they needed to just fail. It is not the tax payers responsibility to bail them out. Taxes: Did you know that every dime you make between January 1st to sometime in May is going to taxes on goods & services (excise taxes), property, sales, income, and a whole lot more! This is way too much. Too FEW people are responsible for taking care of TOO many others. And raising taxes on Corporations isn't the answer. Corporations don't really pay taxes. They collect it. You raise a corporate taxes they will raise the prices of the product they sale or cut overhead which is wages. When someone like China raises tariffs on goods we are exporting to them, we need to do the same with theirs. We need to make it a level playing field. It isn't right now. We need to make them live by the rules they place on us.

5pence: (January 10, 2011 5:01pm)

One more : The problems the Fed was originally created to solve now look miniscule compared to the problems it has created. If “political independence” erodes the purchasing power of the currency by 98%, destabilizes the economy with radical booms and busts, all while increasing unemployment and tipping us ever closer to hyperinflation, perhaps it is time to try a little transparency and accountability instead. Better still – we should try giving the people true economic freedom.

5pence: (January 10, 2011 4:54pm)

One only has to look at the revolving door between the Fed and the big banks to know that. Disclosures on TARP funds confirm this. It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing. It is high time Congress insist on getting complete information on what the Fed has been doing, and for whom. My hope is that exposing the truth will demonstrate the insanity of the status quo and more people will call for sensible changes, such as legalizing competing currencies. END THE FED!! RON PAUL 2012!!

5pence: (January 10, 2011 4:52pm)

Our government is based on a system of checks and balances. With no check on the Fed, it is no surprise it has thrown the economy wildly off balance. The solution is not to re-inflate the bubbles the Fed created, or to continue to devalue the currency, or to throw billions at failing banks and corporations. The solution is to return sanity and freedom to monetary policy. Forcing the entire country to use a medium of exchange that is subject to the whims of elite bankers and their cronies on Wall Street is not sanity. Hoping that an unchecked, all-powerful, behemoth banking cartel will solve any economic problem is not sanity.... Make no mistake: the Fed is not truly independent of political pressure. Its chair is appointed by the president, and it is a creature of Congress. Congress has a duty, albeit a neglected one, to exercise oversight of the Fed. However, even if it was politically independent, it is not independent of the influences of Wall St. One only has to look at

5pence: (January 10, 2011 4:50pm)

From Ron Paul: I am pleased that I will be chairing the Monetary Policy Subcommittee of the Financial Services Committee, which has oversight of the Fed Reserve. Obviously, this position will facilitate my efforts to ensure the Fed provides the American people with more information about what they have been doing with and to our money. ....We only recently learned that the bankers at the Fed were able to use the latest financial crisis to bail out Wall St cronies & foreign central banks with billions of dollars that were created & wasted, instead of appropriated & voted on by representatives of the people. http://bit.ly/fiaMPg

5pence: (January 10, 2011 4:37pm)

What is it banks do? They make mortgage loans that are bought and/or insured by the taxpayers. They sell bad loans around the world by buying AAA ratings for CDO's, deceiving investors and hedge by shorting the instruments they're selling. Of course, they are the main go-to's for mergers and acquistions, but do we really need bigger, more concentrated and systemically important corporations? They manipulate the markets to take your investments. About the only good things they do is hold our savings and checking accounts for which they charge us. They, with the blessings of the government inflate the money supply & then retract it causing bubbles & busts. They use fractional reserve banking to gamble with our money and we get to pay for their losses. Can someone name 5 good things about banks? I guess one thing is you can borrow money without getting your legs broke if you're late with a payment. Anything else? Advertising. I can only come up with a couple things good about banks....

5pence: (January 10, 2011 4:22pm)

Ideally all systems work, fascism, capitalism, socialism and all the other "isms". The problem is they all can be perverted to self-serving systems that add nothing to society or the world - and it's always the "elite" that do it. People need to be on guard and ready willing and able to not allow that to happen. We weren't paying attention BUT it's never too late.

5pence: (January 10, 2011 4:11pm)

We don't need the banks to the extent they and the government think we need them. The greatest revolution ever in all fields was the Industrial Revolution. ALL done without a central bank. Private investors made it happen. We don't need banks for progress, it's already proven. What else is proven is that keeping them alive is holding up progress. All these zombies, what's an appraiser to do? "Love is all truth, Lust full of forged lies. (Reminded of robo-signers??) William Shakespeare.. @kim: we are a democratic rrepublic. As capitalism has evolved it's turned into a monster that is busy devouring democracy and putting us all in debt to the banksters and taking our freedoms. Capitalism is being used to create an inverted totalitarian government. Of the elite, by the elite & for the elite. Capitalism that doesn't infringe upon democracy, freedoms, individual rights, national sovereignty or a free market is fine (to me) but this capitalism we've got now is not free-market capitalism.

Concussion: (January 10, 2011 3:45pm)

Maybe we need a few new banks! We all agree that banks are necessary, so lets just make some new ones. How hard is that? Oh wait, I forget about the many politicians and judges that owe the criminal banks for contributions. I guess my idea will not work. Sorry. The banks win.

kim: (January 10, 2011 3:39pm)

If not capitalism, then what? Socialism???? I was talking to an extreme liberal and she told me that a doctor and a ditch digger should get paid the same amount of money since we are all in this together to make the world go round. One happy family to help make each other's lives better. Is this what you want? I believe in the trickle down theory. The more they make at the top, the more there is to trickles down, as long as it tricles down. I certainly wouldn't want to put in 16 years of education to make the same amount of money that someone who didn't put in any school hours. She also said that I should home school my kids so that the schools had more room for illegal aliens that needed more teaching. My concern is if we get too many people thinking like this, we will end up with socialism or worse. People aren't owed houses, they need to earn them and by paying for them. On the same line, the banks need to use the money they were given for what it was given for.

NewParadigm: (January 10, 2011 3:37pm)

Although I've always promoted the timely repayment of debt obligations, banks are deceptive criminals that caused the meltdown, crippling our industry and the world economy. Call you spell FRAUD? They should NOT get away with their crimes when we, the people bailed them out to avoid a foreclosure crisis. Now they refuse to lend to small business and are creating massive homelessness, further eroding the value of property. Banks PROFIT through foreclosure, as I learned from you many months ago. I would rather save families suffering joblessness and financial crisis CAUSED by the banks. "We need the banks" - our industry does but society can find a better way than creating worthless accounting entries in exchange for real estate. Guys, stop being short-sighted and selfish. http://www.HomeownersJustice.com is actively helping homeowners legally get out of foreclosure. If it cripples the banks, we'll find a more equitable way to conduct business - for the good of all, not just elite.

dogchapman: (January 10, 2011 3:12pm)

At least there is one court following the law, here in Florida we are seeing something worse that robo-signers, robo judges who have been rubber stamping summary judgements in favor of the banks & ignoring the basic premise as in the MA case. It is amazing that the "lost or destroyed" note affidavit has become standard procedure. It is meant for instances when the note is actually lost or destroyed not as a way to avoid producing an original document. It seems the judges in Florida have allowed banks to commit fraud upon the court for years by allowing this affidavit as a standard claim. Actually it may explain the mess we are in, if the banks have lost the note in almost every case then how can they be relied upon to produce a simple chain of ownership....

DaKid: (January 10, 2011 3:04pm)

Guys, I have to say I'm a little disappointed...I've left a number of messages for someone in sales to call me, and no one has since last week - please have someone call or email me so we can discuss.

Evil Genius: (January 10, 2011 2:29pm)

Concussed: very good!

Evil Genius: (January 10, 2011 2:25pm)

The problem my simple friends is that there is money in existence to cover existing debt, but there are no dollars in existence to cover interest, so we must keep printing (therefore de-valuating) to cover the interest! http://www.youtube.com/watch?v=EewGMBOB4Gg

Evil Genius: (January 10, 2011 2:20pm)

Mike8307: have you looked at a dollar bill lately? It is a Federal Reserve Note. It was only printed because somebody owes somebody some money! http://www.youtube.com/watch?v=EewGMBOB4Gg

Concussion: (January 10, 2011 2:20pm)

All the Court did was follow the basic rule that you cannot foreclose on something you don't own because you don't have standing. When the servicers/banks fired up the default services industry on those properties in order to make more money by selling more default services to the trust they control, they made the mistake of doing so in the name of an entity that didn't have an interest in the mortgage because the servicers didn't follow the rules that they made. It really was that simple.

Evil Genius: (January 10, 2011 2:13pm)

Mike8307: where will they get the money to buy them all up? We just took that power away with a shift to our local communities!

5pence: (January 10, 2011 1:56pm)

JM Keynes once defined capitalism as ‘the astonishing belief that the nastiest motives of the nastiest men somehow or other work for the best results in the best of all possible worlds’, and in this sense, at least, capitalism is dead.

Divedude: (January 10, 2011 1:55pm)

Does anyone miss Ameriquest? How about Delta Funding. Let them and Wells rot in Hell.

azsundawg: (January 10, 2011 1:52pm)

Frank and Brian: looks like you found a nuclear hot-button. What the TBTF's have pulled off make Bernie Madoff look like a novice piker. Everybody knows the banksters would not be pursuing their current tactics unless there was a load of money to be made. It really is past-due time to "Ma Bell" them.

5pence: (January 10, 2011 1:43pm)

“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” - John Maynard Keynes

Valuequestor: (January 10, 2011 1:35pm)

HAPPY BIRTHDAY BRIAN! Step into the light Dude! Don't be an apologist for the Banksters bad behavior. Sometimes you just have to choose the lesser of two weavils.

gmabilli: (January 10, 2011 1:13pm)

Guys! I LOVE this Massachusetts ruling! Property rights laws were clearly violated by to the banks' actions and it created a nasty asset bubble and caused a lot of people to completely lose faith in the system. I really do understand that mortgage brokers long for the day when they could hoodwink their neighbors into loans that were profitable for them - and not for the purchaser. The end result of this is that it will cool off the real estate market - hopefully for good. This will lower the cost of owning a home and stabilize home values over time at a more affordable LOWER, more resonable level. Any rule or law which enables wicked asset inflation such as in the housing debacle is not good for America. Frankly, fewer mortgage brokers is a good thing. So many MB were only about the money and didn't think about tomorrow or their clients well being. WRONG ATTITUDE! Sorry dudes! You asked for my opinion.

dogchapman: (January 10, 2011 1:11pm)

NOT SURE IF AVOIDING TO PAY YOUR MORTGAGE IS AN ISSUE THAT WILL DECIDED ON JUDGEMENT DAY. IF SO I ONLY HOPE THE PERSONS WHO DECIDED TO KICK SO MANY GOOD FAMILIES TO THE CURB FOR THE SO CALLED BOTTOM LINE WILL BE JUDGED FOR THEIR ACTIONS. I KNOW F&B LIKE TO MAKE SNIDE COMMENTS ABOUT HOW "A GROUP OF PEOPLE WHO DIDN'T MAKE THEIR MORTGAGE PAYMENTS" ARE DELAYING THE FC PROCESS. I AM SURE THEY KNOW IT IS NOT THAT SIMPLE AS THEY KNOW VERY WELL THAT IN ANY CONTRACT THERE ARE TIMES RENEGOTIATION OF THE TERMS IS IN THE BEST INTEREST OF EACH PARTY. WHAT WE SEE GOING ON NOW IS THAT THE SERVICER IS ONLY DOING WHAT IS IN THEIR BEST INTERESTS(FORECLOSURE). THEY HAVE BEEN ABLE TO ACCOMPLISH THIS DUE TO THE SECURITIZATION FIASCO, HOPEFULLY THIS RULING MAY BEGIN TO FORCE SERVICERS/BANKS TO NEGOTIATE WITH HOMEOWNERS. AS HAS BEEN SAID PRIOR,THE VERY ACT OF securitization & USE OF DERIVATIVES TO SUPPOSEDLY MITIGATE RISK IS BASICALLY FINANCIAL WEAPONS OF MASS DESTRUCTION THAT ARE FINACIALLY LETHAL.

Valuequestor: (January 10, 2011 12:58pm)

Add my voice to the overwhelming chorus of Death to the tyrants. Don't wait for them to fail. The should be busted up. The country's financial condition would improve. The TBTF group have shown their true colors time and time again. We need more competition in banking not 5 monsters standing behind us. Sic Semper Tyranis.

Mike8307: (January 10, 2011 12:56pm)

$Trikkion... phew.. I thought Obama found the number after Trillion... thanks for the clarification. We are all on the same page here. The TBTFs have harmed everyone very significantly. Yet we cannot turn them off tomorrow. We do not have the power. We CAN write our reps in DC and demand accountability. We made a difference in this last election and we need to remind them that as fast as they got in, we can take them out. And BTW... if we take all out money out of TBTFs and place them in community banks, the TBTFs will just buy them up. Been there, done that.

kim: (January 10, 2011 12:24pm)

Here is your basic modification process. 12 months bank statements, any and all assets, copy of credit report, copy of every bill statement including utilities, food, gas etc for 12 months. They want the whole picture. You send it in and they ask you not to bother them for 45 days. At 45 days, they tell you to wait another 45 days. When you call again, they can't find your package. You send it in again, the entire process starts over. I had a handful of clients do this 7 - 9 times before their file was recognized as delivered and that is with certified mail. With certified mail, they were told if ONE item was missing, the entire file was dumped. How convenient. Then the homeowner is usually contacted right before auction to sale the property. The banks did everything they could to get the highest payment and terms out of the homeowner. Telling them that they will have to go through this same process every six months to be re-evaluated. The stress of first process was already too much. Most people are worn out by the time the bank finally talks to them. I believe that is what the banks are hoping for.

Cedonulli: (January 10, 2011 12:14pm)

Ran out of space. Let me emphasize several points. Our government has kept the banks floating by giving billions of dollars so they could MODIFY loans. Out of millions of loans, a TINY percentage were modified and many of those actually resulted in higher payments! This is old news. Its another major screwing of the citizens. Second, millions have been lied to and led down a path of no return by the lenders telling them they had to stop making payments before they could apply for modification. We all know why. Lenders make more by foreclosing! They had to make it look like they were trying to help so President O Bummers plan looked like we were being helped. Then after letting back due go to such high figures that the ownewrs couldnt bring them current, the banks started the foreclosure process. Remember MI payments. Remember Government loss payments. Remember that they can also sell the houses, which they are now equipped to own -vs- the old days when they didnt want homes back

srbmoney: (January 10, 2011 12:08pm)

Debt is NOT money! Although under the current system as you describe, if everyone were to pay back what they owe then there would be no money in circulation. Therein lies the issue and the problem. I've asked the questions many times; How healthy is any economy when it all runs on debt? Oh what we are willing to accept in the name of commerce.

Cedonulli: (January 10, 2011 12:06pm)

I agree that we need a healthy banking system. I agree that everyone signed papers and knew they owed money. Using a technicality to avoid paying will have to be judged on a case between the each borrower and God. That said, I do not feel sorry for the banking system. I started to... took a several months ago as a processing specialist for a large bank that got its start in CA during a big earthquake. (do your history) A lot of our training was to catch fraud. Within the first two weeks I caught 2 positive and one possible case of fraud but the underwiters passed them anyway. I went to a supervisor and they told me to keep quiet and let the underwriter make the decisions. I brought it up again and was fired same day w no cause given.I also know dozens of people who were screwed when their lenders told them payments had to be late before they could apply for modification, then had the lenders lie, cheat and screw them over for months before a turndown then NOD filed.

SC Mortgage Guy: (January 10, 2011 12:05pm)

So now the courts are stepping in. And they are ruling against the banks by doing to the banks what the banks have been doing to everybody else. Here is the bottom line, if banks and servicers had done right by the homeowners, their customers in the first place, we probably wouldn’t be in this mess.

SC Mortgage Guy: (January 10, 2011 12:04pm)

So now the courts are stepping in. And they are ruling against the banks by doing to the banks what the banks have been doing to everybody else. Here is the bottom line, if banks and servicers had done right by the homeowners, their customers in the first place, we probably wouldn’t be in this mess.

SC Mortgage Guy: (January 10, 2011 12:03pm)

The big banks response to this attempt to homeowners trying to retain their homes, a mountain of paperwork, even more bureaucracy, blame the homeowner, blame the loan officer, blame the appraiser, get bailout money from the government. Now we find out the reason that many of these loans couldn’t get modified was as a result of securitization we couldn’t get the various owners of a particular note to agree on modification terms of because nobody wanted to help the homeowner by reducing their profits slightly. Or, as in some cases the servicers couldn’t prove and document who were the actual owners of the note. Perhaps if the banks, servicers and investors looked at the effect and benefit of keeping these people in their homes over the long term, instead of the maximizing their returns this quarter and killing off the goose which is laying the golden eggs, we wouldn’t be in as big of a mess. So now the courts are stepping in. And they are ruling against the banks by doing to the banks what the banks have been doing to everybody else. Here is the bottom line, if banks and servicers had done right by the homeowners, their customers in the first place, we probably wo

SC Mortgage Guy: (January 10, 2011 12:01pm)

Frank and Brian I think you missed the boat on this one. Here is the reality on this one. There are a lot of homeowners out there who were financially hurt and devastated by the actions of these big banks. I have a number of clients who were financially wounded by the downturn in the economy. And I’m not referring to real estate investors, by the way. These are hard working people who saw their incomes reduced through no fault of their own. Many of these people were not able to restructure their debts as a result of declining property values. If you recall, when this mess started there was a number of homeowners that tried to restructure their debt so they could better manage their financial situations and ride out this mess. However the big banks turned their backs on these people, our neighbors and basically said every man for themselves. What resulted, was more foreclosures and declining property values, which in turn caused an additional round of foreclosures. Then with damaged credit and property that had declined in value, people tried to keep their homes by applying for loan modifications. The big banks response to this attempt to homeowners trying to retain th

GODLIKE: (January 10, 2011 11:54am)

Any of you watch "It's a Wonderful Life" over Christmas holidays? Somehow this whole banking mess reminds me of that. I'd dearly love to close all my family's accounts at the national banks, but they allow us to move money much faster than my local banks. My wife & I use the local banks for most of our money, but our kids are too mobile to use them. When they move, whether it's across town or across the country, with a national bank they don't have to change their whole banking situation.

Evil Genius: (January 10, 2011 11:44am)

That was a $Trillion not a $Trikkion!

Evil Genius: (January 10, 2011 11:42am)

Take your money out of the big 4 and put it into a community bank. This will make a difference. I'll bet that less then 10% of you reading or adding to this discussion have heard of or know what the Black-Scholes system is. This was the basis for a $Trikkion bet using our invested dollars. We the people have relinquished control. Take it back! And it can start with the mortgage industry. Long term assets! Our homes! Don't let the giants take your mortgage and securitize it for their gains. Did we the small investor profit from our mortgages being further mortgaged? Take the money that they play with back down to a community level. You know, the community where your home is! I have posted on the video page (page 2) of my blog a multi-part Black-Scholes video. Interesting stuff! http:realestatemarbles.com/newgeneration

AdamP: (January 10, 2011 11:25am)

The law is the law. There's can't always be a soft landing, policitally expedient, happy ending for everyone. The banks, through MERS, created a self inflicted wound for the sake of saving on recording fees. If I buy a note from someone, don't record an Assignment of Deed of Trust and lose all the paperwork, I'm screwed. The banks should find their paperwork or eat it just like the rest of us. This is nation of laws, not men. Let the cards fall where they may and the free market will be better off for it in the long run, i.e. for our kids, like everyone always likes to point out.

W.R.Buchanan: (January 10, 2011 11:22am)

I'll tell you what guys. I would trade my Appraisal Business for my Mortgage in a heartbeat. In any trade off situation, you need to run the numbers and actually see what is in your best interest. I want to see the banks get hurt just as badly as they delt out their brand of foreclosure justice. Also in my profession of Appraising since I can hardly make any money doing it and currently the cost of keeping my license is greater than what I've made by using it, over the last 3 years. If the choice between getting my mortgage wiped or killing my appraisal business, I'd take the mortgage and consider that I had won the lottery. Randy

dogchapman: (January 10, 2011 11:15am)

also, it may also be a wakeup call to the banks that they need to follow the law. They blatantly disregarded real estate law in many states when they allowed "electronic" or " digital" signatures on their docs. In most states real estate law requires "wet" docs(docs with original signatures).

teresatims: (January 10, 2011 11:12am)

@ LKandi or LCandi what attoney/seminar are you talking about? And all i can say about this is "Wow F'ing Wow"... what a precedent. The ramifications of this are so far reaching. Speachless in Rancho Cucamonga.

Mike8307: (January 10, 2011 11:01am)

5pence... more importantly do you think that the union and municipal pension funds, teachers retirement funds, mutual funds, individuals IRA holders, millions of people across the country who are beneficial owners of GNMAs and CMOs will accept less. They are already accepting less through foreclosures and shorts. Remember the loans aren't held by the banks, they were packaged and sold.. sold to you and me, and people like us. I'm not standing up for the banks, TBTF should also mean Too Big To Exist, and I agree, having them fail would have created voids that would have been quickly filled. But just like 'It's a Wonderful Life'.. your money isn't here, its in Martini's house. It's a very complex and emotional issue. But it wasn't the banks that chased manufacturing jobs overseas. The EPA and the tree-huggers, the over regulation and over taxation had a big hand in that.

GODLIKE: (January 10, 2011 10:59am)

My fear in this whole mess is that this is the excuse "They've" been looking to take over the banking system.

iam 2520: (January 10, 2011 10:57am)

Told you so...

5pence: (January 10, 2011 10:34am)

Mike8307 : One more thing before I go - work to do. Do you honestly think every homeowner will just stop making payments? The majority of people have consciences and don't expect anything for free. They'll pay what they can afford. If the banks want them to pay more than they can afford, they can bring back to America all the outsourced jobs! I would be more than happy to willingly pay what I could afford, but I'm not given that option. I know many won't agree with that, but not many agreed that the best solution is for banks to lower rates to 1-2% for all. Who would ealk away? The banks are getting our money for near 0% and they'd still make money. The banks are doing it now in some modifications, but they're really stingy with our money as there's not enough profit at 1-2% on our money that they borrow to lend to us. Ohh but sure, the taxpayer can pay for GS buying of Facebook. Why aren't the banks loaning us our money at 1-2%? They are getting our money, taxpayers money, free.

Mike8307: (January 10, 2011 10:27am)

Kim,.. So let me get this straight. The Guberment got Jesse Ventura's show off of truTV. A cable TV station with horrible ratings, but neglected to have the episodes and interviews NOT taken off of YouTube for viewing by anyone with internet access? I don't know what emails you're talking about but I can take a guess. Military personal are regularly trained in crowd control and riot situations. Then they are sent to places like Iraq, and Afghanistan where these skills are sometimes needed. It is part of military training to do as you are told. That soldiers aren't always told where they will be going nor what they will be doing. It's part of security and done to save lives. But once again, those like Alex Jones and Jesse Ventura take the mundane and make it exciting and scary.

SunTanMan: (January 10, 2011 10:24am)

Wait a minute. The Mass High court ruled that Wells Fargo broke the law. The penalty for doing so is the homeowner has a chance to get their home back. The idea that this is going to break the banks is absurd. Maybe if the banks (who created the securitization problem) were forced to take a few financial hits when they break the law, they might be more willing to make a better effort to find a way to keep a homeowner (who is trying to find a way to stay and pay) in the home. The current securitization mess was created because the banks found that slicing and dicing the mortgages to different investors made them more money. Now they have to pay for their greed. Boo Hoo.

5pence: (January 10, 2011 10:23am)

mjmmcclaire : The borrowers committed no crimes. The banks committed crimes making the mortgage contract null and void and they owe their investors for mortgages they've already been paid for. You wouldn't try to get out of a contract whose terms were breached? Maybe you like supporting fraud but I don't. I think you've got it twisted, America is no better than the fraud it allows. You want America to be better and to heal? Put the banksters in jail and let the honest and moral citizens of this country carry on without bankster duress. The TBTF banks are forcing "usury" when they don't honor their own contracts but expect them to be fulfilled anyway. Not legal. fiat iustitia, pereat mundus (follow the rules, even if the world should perish). I'm out of here, have a good day all! It's good to see an Attorney fired up in defense of the common man!! Kudos! Thanks.

GetReal: (January 10, 2011 10:19am)

So many home buyers were steered into toxic loans without a peep from their buyer's agent (you know, the licensed professional who is supposed to look out for the interests of their clients). I don't understand why they won't sue their buyer agent's under the Errors & Omissions insurance. I am financially literate, so I easily avoided all of the toxic financing. However, buyer agents were only looking for their commission check and ignoring their clients' best interest. I would like to see a massive class action suit against the National Association of Realtors members.

Mike8307: (January 10, 2011 10:11am)

SRB.... I'm pretty far away from the Koolaid.. never got close enough for a whiff. What I was describing was the fact that using a nominee doesn't negate nor injure your rights. You are going to have seas of people who can pay their mortgage start not paying their mortgage because they figure that its a good bet that the banks can't legally foreclose. Where does that put us, and what does that teach everyone else who IS paying their mortgage?

kim: (January 10, 2011 10:06am)

I agree. Stop giving money to the banks if they aren't going to pass the savings on in a way to help the economy recover. That is what it was given for to begin with. It should have been given with strict instructions with penalties. Why wasn't it? Agree again, they need to stop business until they get their act together and allow the smaller banks to take some of the business. It is true that it may all flow up to the four larger banks, but let it flow up to the three until Wells gets their act together. I would think that would be enough incentive to do it immediately. But keep the government out of it. We don't want to lose our free enterprise by allowing them to step in. Once they do, you can't get rid of them.

mjmcclare: (January 10, 2011 10:05am)

Enough is Enough!!! America is better than this. The banks did wrong but the borrowers not paying made a wrong too and they need to ACCEPT responsiblity. Punish the banks but let the foreclosures clean up this mess.

larryw: (January 10, 2011 9:53am)

Yep. We need healthy banking. But since the big banks are corrupt in so many areas (in addition to mortgages) what are we going to do? They won't change, they just want more and more power to keep doing whatever they want - which is often illegal. How manyh ways to they have to prove that to us? I am a free enterpriser BUT only if free enterprise means conducting business in an honest, legit manner. Since the banks won't do that what is left to do? I am NOT cheering for the recovery and success of the big banks. I am trying to figure out how we disband them and let the honest free market (local banks and credit unions) take over. Maybe that would cause short term pain, but if we continue to le the big banks run the country will have never ending pain. THAT is what is not heathy.

5pence: (January 10, 2011 9:50am)

When I said "Give it up folks - there is no healing that can be done until the bleeding from corruption is stopped" that doesn't mean more band-aids, it means taking out the knife first.

Divedude: (January 10, 2011 9:40am)

Let Wells Fargo swing!! Put them in receivership until they can get thier act together. Angered Massachusetss citizens including myself are also urging jail time. Watch how fast the other big banks fall into line. They foreclose on borrowers that don't even have a mortgage with them, breaking into the premises via hired thugs and taking personal belongings. I wish they would try that with me.

money_is_debt: (January 10, 2011 9:37am)

Although I agree that we need a vibrant, healthy and liquid monetary system feeding the our system of commerce including real estate; we also need to consider the unsustainbility of our current Central Banking-based system. I won't bog down your board with this issue but "giving" the big banks (are we down to 4 now?) the ability to make up money out of thin air through fractional reserve banking is fine and dandy to keep commerce moving but also allowing them the make massive profits by borrowing that money at almost no interest but then charing exhorbitant interests on business and consumer lenders with very little controls is absurd. If I am a high risk lender I pay a high interest rate. The banks have shown how high risk of borrrowers they were by how much we had to bail them out. I'm a capitalist at heart but the system is nowhere near fair or even proper. Banking and money circulation needs to be more in the public interest arena and less in the for-profit one!

kim: (January 10, 2011 9:31am)

The problem is in correcting the problem. On one hand the banks need to do their job the right way like everyone else. On the other hand, the last thing we want is more government involvement at least not on the level of them taking over the industry. We would lose more than you know if that happens.

5pence: (January 10, 2011 9:25am)

Economist Galbraith: There will be no recovery until we use the word “Fraud”. JOSEPH STIGLITZ: We Have To Throw Bankers In Jail Or The Economy Won't Recover. Washington Blog: Failing to Prosecute Wall St Fraud Is Extending Our Economic Problems. Bill Gross, Nouriel Roubini, Laurence Kotlikoff, Steve Keen, Michel Chossudovsky and the Wall St Journal all say that the U.S. economy is a giant Ponzi scheme. Economist Shiller: Failure to Stop Fraud & Prosecute Criminals Causes a Loss of Trust in Government, Which Makes Government Less Effective. David Einhorn, hedge fund manager: the government is not willing to take on significant misbehavior by sizable firms. But since there have been almost no big prosecutions, there’s very little evidence that it has stopped bad actors from behaving badly. Economist & Criminologist William Black: Until we deal with bank fraud there can be no recovery." Give it up folks - there is no healing that can be done until the bleeding from corruption is stopped.

srbmoney: (January 10, 2011 9:21am)

To Bono Vox - You may need "the big banks around" but there a group of us who know we don't. We're doing something about it and our numbers are growing everyday. May you and your big bank "friends" have a colorful life together. It does sound like you have good weekends though. :-) Mike8307 - I understand you may have been trying to identify the trail of ownership in a paper transcation vs the purchase of a home but there are hard assets involved in the purchase of a home. When people buy homes they at least get a set of keys. The transaction you describe is the purchase of used stock that did nothing to raise capital for the company in question. When it comes right down to it you only "own" the paper the info is printed on and that's it. All you did was create the movement of money for which you paid a fee and may continue to pay fees for as long as you "own" the paper. Is that what you call investing? Step away from the Kool Aid bar and perhaps we can all get rational.

Rob in AZ: (January 10, 2011 9:20am)

All due respect, F&B, calling the lack of proper documentation a "technicality" is too kind to these big banks. With full teams of staff attorneys they should be able to figure out how to do the proper paperwork. If you or I had a claim against them, but couldn't produce any proof, would you expect remuneration? I wouldn't... So long as we continue to allow them to operate under different rules than the rest of us, our industry will continue with the drama we have been experiencing. Don't kid yourself that if these 4 banks went away, there would be no more $$ for anyone. Small neighborhood banks (for one example) would once again be able to lend to homebuyers. It is time for "too big to fail" to be replaced with market discipline. :-)

kim: (January 10, 2011 9:15am)

Mike8307 - thanks for responding. This was a tv series that was taken off the air by the government. Shut down with no real explanation. That in itself goes against certain freedoms. But in saying that, read this e-mail I got from another source: Unfortunately we have heard about this one and Jim works with a guy whose daughter is in the military and they are training her for this. Although the one daughter was upset because the other daughter wasn’t supposed to talk about it.....not even to the family. The girl didn’t even really know what she was being trained for and they are teaching these mostly kids “blind”.....just do what you are told. Scary stuff! This is why I read, keep informed but I play ignorant to some extent I cant let it ruin my world. We know for 100% positive they already have the FEMA camps and that is what they are training the military.

PenelopeX: (January 10, 2011 9:15am)

Hey, Ikandi! How can we get a hold of you re: this seminar. Ron Paul's movement to End the Fed (not just Audit the FED, although that will definitely elucidate the real problem) can be the beginning of a new way of doing banking business in the future, so I'm paying attention to what effect his Chairmanship on the House Financial Services sub-committee that oversees the FED will have on the way our banks do business in the future. This should be an education for everyone.

Gabecaplan: (January 10, 2011 8:54am)

Frank & Brian have created an avenue of entertainment that brings relevant topics to the mortgage professionals. Indirectly their audience has broaden to subscribers of all positions within the real estate industry; appraisers, attorneys, bank executives, loan closers, loan officers, loan processors, Realtors, title company processors, etc. Their efforts to bring their messages to us daily probably jump starts many of our days. For they have created a media that most likely exceeds their initial business plan and we get to benefit from it, by bring all of us together. So, we should realize this special opportunity and use this avenue to communicate with positive solutions to repair this country’s crisis.

Ikandi: (January 10, 2011 8:52am)

You think Mass has problems, that problem is probably all over the USA. I know a guy in CA that has been getting people's homes back, after foreclosure, for 2-3 years, based on the same problem. He is a friend of Ron Paul (who wants to get rid of the IRS - he says they will implode now without him). Get a hold of me, & I will connect you to go to one of his monthly seminars - it's well worth the trip! Banks were sloppy during the refi boom years. Our government was sloppy when good Ole Bill signed our lives away...with deregulation. Bush was just left holding the bag (& wondering...wha's dis here bag?) That was the real weapon of mass destruction! If people were wondering if we are in an actual depression, now they no longer have to wonder . This will blow the lid off! The dam will burst now that you watch dogs let everybody know on your show - as you should. You definitely deserve a treat! Let's go to a seminar together :-)

5pence: (January 10, 2011 8:52am)

Homeowners broke no laws. Banks broke the contracts with homeowners nullifying the contract & broke the law with their investors. This is between the banks & investors. Banksters need to give up trillions in bonuses to their investors or go bankrupt & let smaller banks, that don't need corruption or to break the law for survival, take over. "Few today remember that 50 yrs ago a number of New York & Chicago's top bankers were sentenced into penitentiaries-the New Yorkers into Sing Sing-the senior partner of J.P. Morgan and Co., the Pres. of National City Bank, the Pres. of Chase Bank. Every one of them had been found to be doing reprehensible financial tricks. They were selling their own friends short. They were opening their friend's mail & manipulating the stock market. They were manipulating everybody. They were way overstepping the moral limits of the privileges ethically existent for officers in the banking game, so a great housecleaning was done by the New Deal." Buckmister Fuller

Dan Mchugh: (January 10, 2011 8:51am)

then are the banks allowed to do as they please when they please with no consequences's? It get's back to TO BIG TO FAIL. We as a societies responsibility to not only create the laws but also enforce those laws EQUALLY AND FAIRLY!!! THE TIME HAS COME FOR THE BANKS TO PAY THE PIPER....

Closer1: (January 10, 2011 8:49am)

The real problem is debt. Debt is a burden to our country, to businesses (unpaid debt) and to the average individual (too much debt). Since God has never been wrong, let's use his solution, a Jubilee or a forgiveness of all debts. This worked because if someon can't pay their debts, the creditor is going to lose out anyeay. God made it so that the one who forgave the debt was blessed even more in the future. We are so far down the drain economically speaking as a country, starting all over would not be a bad idea. If God thought it was a good idea, who is to argue? As anyone out there smarter than the Great Almighty?

Skip: (January 10, 2011 8:46am)

Don't lose sight of the fact that "THE BANKS" may be required to play many different roles in a foreclosure process. Is "THE BANK" playing the part of a servicer, or is it the note holder, or the custodian, or it may be fulfilling it's obligation under a "Repurchase Agreement" that an Originating Company defaulted under??? We need to be careful what we wish upon “THE BANKS”, for like it or not, they truly are the ORIGINATOR”S PARTNER. Not every thorn is indicative of a briar, some lead to roses! PS since we are limited to 1000 characters I sent an email for further consideration on the topic.

MrsShrek: (January 10, 2011 8:45am)

Great Decision from Mass! The issue is Wells Fargo did not have standing to FORECLOSE! The Banks KNEW what they were doing and now their attorney's know as well.

Dan Mchugh: (January 10, 2011 8:45am)

O.K. Lets see I live in Illlinois I am a Real Estate Broker. I am now being required if I want to continue being a managing broker I complete a small 75 question test. It is a 1 attempt test and should you fail the test you need to take 45 hours of CE. While it may seem off topic it really isn't. I would like to know if the bankers who are so mightily in charge of all things financial. Are they required to prove it every two years? Also when the legislature gets a bug up its ass as they often do here in Illinois are the bankers held to the same standards as we the RE brokers? I really dont think they are. I also believe they are the ones who have screwed the pooch on the whole Real Estate industry.I know I read sometime ago when the guys were busting chops on the NAR that the NAR was one of the richest well funded organizations out here. WHY then aren't they screaming bloody murder over the CRAP the bank's being allowed to pull off? We are continually asked to prove our abilites Why

Gabecaplan: (January 10, 2011 8:43am)

Each and every one of us that play a role in real estate relies upon a bank, either directly or indirectly, with most of our transactions. With so many real estate professionals taking a position of “us vs. them” mentality, the negative atmosphere is not conducive to our industry healing itself. Let us remember that our government of the people, wanted more American’s to participate in the primary “American Dream” of home ownership. Therefore, the banks following the government’s direction had to find a way to increase the pool of potential buyers. The most obvious solution was to change the traditional requirements, to allow a broader base of buyers. The real estate professionals, that have been in an industry related position for the past seven years or more have personally benefited by these changes. Each position within the process of the residential real estate industry has had some participation / contribution to this crisis. History should tell us all that separation within divisions does not have a positive outcome. So, each of us should consider how we can help our partners and stop the attitudes of creating enemies. Frank & Brian have created

GODLIKE: (January 10, 2011 8:38am)

I agree that short term this could be a potential major issue, but in the long term this is a problem that has to be addressed. The sooner the better. It's going to take an "issue" to bring it to a head and Mass. is definitely a smaller issue than most other states.

Mike8307: (January 10, 2011 8:35am)

Kim, Jesse Venture is nuts. I'm not a fan of big government but Jesse is on the other side of the reality fence. He and his crew prove that half facts and a lot of what-ifs makes for good bedtime stories. Go to any government installation or most private installations, uninvited, with a film crew and "no comment" is all you'll here. It is a fact in out litigious nation that opening your mouth only gets you into trouble. Point of information. Towards the end of that video, it shows thousands of black plastic "body containers" just sitting there, nestled like tupperware. They are actually crypt liners that stop water seepage that some people purchase for burial plots, some localities require them. Nothing more, nothing nefarious, but put into a video like this, just a few seconds, without explanation, they become scary, and add to the tale.

5pence: (January 10, 2011 8:34am)

Lovinlife: Yes they signed a contract but the banks broke the terms of the contract and therefore the contract is null and void. There is no contract, no obligation. SCOTUS has always supported this. This is my new signature line : fiat iustitia, pereat mundus (follow the rules, even if the world should perish).

AttorneyJohnChristianBarlow: (January 10, 2011 8:34am)

When I say "you" I mean you two morons in the video who lie as much as the bank about where you get your money. Come into my office and I will teach you some manners. And if you "dont want to bother" with me you can come into the court room and watch me kick the crap out of BofA and their attorneys. Cox v ReconTrust & Coleman v. ReconTrust. You bozo's, I dare you to come into my office.

GODLIKE: (January 10, 2011 8:33am)

THE RULING IN MASS. IS JUST PERFECT FOR THE BANKS! They can quit lending in itty bitty Mass. with very few effects to their bottom line and bang their chests while beginning a media firestorm. Now if this had been Texas or California the Banks couldn't take such a hard line.

Sandie: (January 10, 2011 8:31am)

I am not sorry to see the banks called on the carpet for their crooked practices but I agree, we need them whether we like them or not. I just wish they would stop their self serving activities and be above board on what they do. Too many people have lost their homes due to poorly handled processes at the banks while they were in the middle of a loan mod. or short sale. The right hand really needs to start being aware of what the left hand is doing. This isn't over, if one State has won a suit, more will follow. We can only hope that it doesn't further destroy and already struggling industry.

Defaultsgonewild: (January 10, 2011 8:28am)

Interviews with Bethany McLean, Author of "All The Devils Are Here - The Hidden History of the Financial Crisis" http://www.pbs.org/now/shows/505/index.html http://www.youtube.com/watch?v=3C8tC_0dsDI

RickRealEstate: (January 10, 2011 8:26am)

I am glad to see so many comments that support the rule of law and not this “Too Big To Fail” attitude supporting the big banks. If a company does not operate in the law it should be punished and turning a blind eye to a companies disregard to proper legal practices is not going to help in a recovery that needs trust as it’s foundation. If Wells won’t lend in Massachusetts than someone will that is willing to play by the rules and if two companies step up the fear of higher rates will be resolved with open market competition. The big banks and their kind made this problem and now the messy resolution should not be rushed for the sake of a few corporations that still have not learned their lesson.

Old Dog: (January 10, 2011 8:25am)

Thomas Jefferson said in 1802: “I believe that banking institutions are more dangerous to our liberties than standing armies.. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.” Does that just about says it all 209 years later?

Lovinlife: (January 10, 2011 8:25am)

I feel there are two fundamentals that need to be addressed one is the banks that we all have differing opinions about and each case has its own merits. The fact is if you took out a loan and agreed to pay it back you are obligated to pay it back, if you don’t your deed states very clearly what steps can be taken to foreclose on the property. The more important fundamental is property rights, not all property has a bank loan on it and property rights need to be upheld at all costs!!! I definitely agree with the court ruling if property rights were violated. If the banks need to take a few extra steps with their deeding when they sell of their loans then they should.

5pence: (January 10, 2011 8:20am)

Obama did not bring us back from the abyss. If the banks were put into receivership/bankruptcy there would have been economic upset for maybe a week while new uncorrupt bank CEO's were put in place to replace the corrupt CEO's. We at the street level would barely have noticed the change. If this had been done we'd be in a true recovery by now. That's how bankruptcy works! Instead, by keeping the ponzi players in the game and letting them control the game, the stakes rise to global proportions and the taxpayers will pay the bills. The banks have been made demi-gods - above reproach or blame and are able to get away with anything they want to. If a bank is so large that the people have to support it with their hard-earned dollars, they are a detriment to society and are too big to exist. fiat iustitia, pereat mundus (follow the rules, even if the world should perish).

therealtor: (January 10, 2011 8:18am)

I support the attorney's remarks. You're f'n clueless and self seving!

PenelopeX: (January 10, 2011 8:17am)

The fact is that banksters have been loaning on the promise of future assets via the fractional-reserve banking system since its creation, which is a a system originally based on lies to the depositor and subsequent fraud. So, until that's fixed, all this discussion about paper trails and who's responsible/liable is superfluous. It resorts of a pointing of fingers and more wasted money in our courts system. The real tragedy I saw, as an appraiser in field, was watching people use their HELOC or cash-out refi for "toys" or pay their bills while their homes continued to depreciate because of the deferred maintenance, but the "market" allowed fluffy appreciation. Over and over again, folks pulled $$ out of their homes, but didn't reinvest it into their homes and ended up not only losing their property, but leaving the home in worse condition than when they purchased it. Perhaps in hindsight, built-in accountability on all parts would have made more sense? (END THE FED)

rbsplace: (January 10, 2011 8:16am)

Supply and demand will replace the tbtf banks. A few years ago a locally major bank sold to a large national chain of banks that didn't treat the locals so well. That spawned the creation of four new local banks that have treated local customers well. Three of them have become quite successful and are long term contributing members of the local economies they serve. Big money needs borrowers. If the tbtf banks stop lending the big enough to do the job right banks will either do the job right or banks will be created that can. When the stranglehold is released and the true free market is allowed to successfully do its job the American people will benefit the most. TBTF is still too big to exist.

5pence: (January 10, 2011 8:15am)

I personally don't care that corrupt CEO's bankrupted the TBTF's. That is their problem and they refuse to deal with it. Actually, it's more than that they refuse to deal with it - because they've been bailed they embrace it all the more. We the people have been robbed of trillions of dollars. Where is it? It's in the banksters pockets. They didn't follow the rules in their hasty creation of CDO's for profits, therefore the problem is not with the homeowners, it's with their investors. Let them deal with it by clawing back bonuses or austerity. I'm sure they got their money in full through their sale of the CDO's many times over - therefore the mortgage is satisfied. This is between the investors and the banks and not between the banks and the homeowner who committed no crime. Sympathy for the Devil is a great song - but it shouldn't be the serenade here. fiat iustitia, pereat mundus (follow the rules, even if the world should perish).

AttorneyJohnChristianBarlow: (January 10, 2011 8:12am)

You A.H's are paid by the banks. Get a life. Go out there and see the damage the national banks have done to our economy and nation--they sold us out to #$%@# China. WE DO NOT NEED NATIONAL BANKS OR YOU IDIOTS.

T Bone: (January 10, 2011 8:03am)

Happy Bday Brian! You guys Rock! Keep telling it like it is!

hilmargolin: (January 10, 2011 8:03am)

The banks may not lend however, once again, they will be cutting off their noses to spite their faces. The rules regarding perfection of an interest in real property are crystal clear in every state by statute; you must record at the office of the county recorder or wherever designated by law. Play by the rules and things work they way they were designed. The banks have been too clever by half in not having notes and mortgages or Deeds of Trust thinking they can get away with it in violation of law (the too big to fail mentality) forging documents and, have engaged in a massive defrauding of local counties by failure to pay transfer taxes to the counties when the property interests are sold, contributing to the difficult financial state of local and state governments. This isn't like corporate stock because the corporation must maintain a log of who owns the shares. The nominees (pension funds, hedge funds) have a fiduciary duty to the true owner. Under MERS there is no such duty

denissr: (January 10, 2011 8:00am)

I think TBWS remarks are self-serving. Although they put in a disclaimer in that they don't want to let the Banks off the hook for breaking the law. That is exactly what they are suggesting. They want to make it easier on the banks, so they will lend money, so we all can make money. Doesn’t mater if the Banks take short cuts with laws and regulations, as long as we get something out of it. If it is not right, then it is just not right! Maybe we all need to get into an industry that can be honest and still do business.

dogchapman: (January 10, 2011 7:59am)

as always it is not so black n white. Yes some did not pay & are taking advantage but there are many stories of homeowners who fell behind due to employment issues, etc & have made every effort possible to work out a solution with their bank only to have them foreclose. We were working with a couple who was simply requesting a deferral of the late payments to the backend & reduction to current market value. The bank shot them down foreclosed & has now sold the property as an REO for 100k less then what the homwowner was requesting. There must be some benefit to the banks to foreclose as we have seen this scenario that on the face appears to be a poor business decision. If a murderer can get off on a technicality then it might be time for the same justice system to finally benefit the homeowner.

kim: (January 10, 2011 7:59am)

You know you guys you are right when you talk about the bank bail outs and the American Dream being taken away not to speak of the debt the bail outs have cause without true benefit to the People. Someone sent this too me and I thought the timing was scary. What do you think about this? http://www.networkworld.com/community/blog/conspiracy-theory-teeth-government-allegedly-

5pence: (January 10, 2011 7:48am)

If the big banks won't loan in Ma. the little banks will. The big banks need to be bankrupted in deed (pun intended) and not just shadow bankrupt. They are all insolvent and we don't need them for progress. When they cost taxpayers their hard-earned money, they are a detriment to society. They add nothing - they just take. The banks in their handling of the deeds and assignments was illegal. fiat iustitia, pereat mundus (follow the rules, even if the world should perish). BTW, happy 26th birthday Brian.

Evil Genius: (January 10, 2011 7:45am)

Securitizing and chopping a whole mortgage note up into little pieces and selling and re-selling lined greedy pockets and diluted the true value of the American Dream. It's philosophical really. People who want to own a home and live in it shouldn't be at risk, yet this system places everyone at risk because it can still cause inflated values until the balloon pops. Then we all fall down. Mortgages are a long term thing. Traet them as such.

Evil Genius: (January 10, 2011 7:44am)

Securitizing and chopping a whole mortgage note up into little pieces and selling and re-selling lined greedy pockets and diluted the true value of the American Dream. It's philosophical really. People who want to own a home and live in it shouldn't be at risk, yet this system places everyone at risk because it can still cause inflated values until the balloon pops. Then we all fall down. Mortgages are a long term things. Traet them as such.

REindex.com: (January 10, 2011 7:41am)

1) This is good for small/local banks that portfolio. 2)It is a direct result of MERS, which was created to avoid recording fees, by a central "file cabinet" of non-public, blank assignments. 3)The banks created this problem by of lack of foresight with MERS. Had they prepared more correctly for foreclosures, they would be able to produce documents now in electronic pergatory. 4)In past cases of incorrect foreclosure paper filing, small mistakes have been costly to the filers. One instance - a lender in one state foreclosed as if they were in their own state rather than according to the state where the property was located. Result: trebble damages awarded to the borrower. 5)I disagree that lenders will stop lending in MA. They now have a reason to "cherry pick" the best loans. AND, The future of lending in MA may be the guide for the new paper trail in lending. A NEW START, not a place to avoid.

Evil Genius: (January 10, 2011 7:39am)

I have a fundamental difference of opinion concerning banks boys. We the people and our long term pensions should replace the liquidity that the banks are spending everywhere else on the planet but here. Banks, using our deposits and assets have a short term, high yield mentality fed by greed. We don't need them to securitize and side-bet our mortgages. Let them play in another sand box. I would rather my long term fixed pension plan is at low risk with a long term fixed mortgage pool. These philosophies mesh together. There are approximately $12 Trillion in mortgages in existance today. There is much more then that in pension money that asset managers are gambling with. We don't need to trade bonds to raise capital for mortgages. That would end the volatility. I have posted some edification videos on page 2 of my blog. Watch and learn what happened with Wall Street gambling and then realize there is another way. http:realestatemarbles.com/newgeneration

Mike8307: (January 10, 2011 7:37am)

We need to have a rational discussion about this. If you own stock in a company most likely the shares are not in your name. Your shares are with your broker, and the shares are NOT even in the name of the broker you trade through. They are in a central depository (Depository Trust Co), and in their nominee name (CEDE & CO). Yet you still get your dividends, you have the right to vote at shareholder meetings, you have the right to sell your shares. No one questions your ownership. It is an efficient system and has taken the settlement cycle from 10 days down to 3 over the years (along with computers). The nominee acts on your behalf. It should be the same way here. You make your payment to a servicer who makes sure the owner of the note gets paid, regardless of where the actual document might or might not be. This is why acronyms like ISAOA, or ATIMA exist in the first place. This is not giving a pass to illegal activity, but we need to truly define what is going on.

csrain99: (January 10, 2011 7:34am)

The title insurance companies should be worrying since all the title insurance policies that were written on these foreclosed property transfers may actually have to be used. If the new homeowner did not purchase owner's title insurance, then they may be in trouble. But since it's fraud, is there a stipulation in the policy that could give the title ins. companies a way not to insure the title against this defect? Does anyone know that answer?

sandance: (January 10, 2011 7:32am)

You guys keep repeating this lie: the people who are getting squeezed out of their homes COULD afford them, but the banks did a "bait and switch" ("we'll give you a modification, reduce your payments for a few months while we're reviewing you for mod" and then BLAM! Oh, you're not approved, and now you're in default because of the reduced payments, so we're taking your house)." Thank God a judge still does his job in Massachusets and freedom still rears its ugly (ugly to the banks) head! The point you're making is that criminals should get away with it if it's good for the economy! (Keep in mind they crashed the system, guys, not these luckless homeowners!). SHEESH!

rayprose: (January 10, 2011 7:23am)

Hey Bankersfla, What you said and I quote "a borrower can get out of repaying a loan because of some fance legal footwork is like a criminal getting off because he hired some high priced lawyer to trick the system" struck a cord. Now you bankers think for some reason that sally homemaker actually reads the sheaf of papers you shuffle in front of them??? Do you remember the NO Credit, Bad Credit, NO PROBLEM! ads that some banks ran back in the day??? Or how about the LIAR loans that were foisted on the public. You know the ones, you tell us what you make and I won't check. Even an honest individual given those parameters will stretch the truth. But you bankers had NO IDEA that was being done RIGHT??? Those LIAR LOANS are at the HEART of this mess and it was via a policy that was perpetrated on an unknowing general public via the ads I mentioned previously. Do I think the individuals are responsible? Yes partially, but so ARE YOU and they have taken a hit! Have you lost a paycheck yet?

deblakeley: (January 10, 2011 7:13am)

If a bank, or any company is "too big to fail", then by all means bring on the Sherman Anti-Trust Act and bust them up (again). "We the people" are more important than the "few" banks. WF took over Wachovia and service has suffered greatly. I have no sympathy for the devil here. When I first started in this business, I hated working with WF and CW, "they're animals anyway, so let them lose their souls."

deblakeley: (January 10, 2011 7:12am)

If a bank, or any company is "too big to fail", then by all means bring on the Sherman Anti-Trust Act and bust them up (again). "We the people" are more important than the "few" banks. WF took over Wachovia and service has suffered greatly. I have no sympathy for the devil here. When I first started in this business, I hated working with WF and CW, "they're animals anyway, so let them lose their souls."

rayprose: (January 10, 2011 7:11am)

FINALLY AN HONEST COURT!!! Thinking that being honest and actually bringing some of the culprits to task over their ILLEGAL and sometimes immoral conduct is BAD somehow... WHAT?? I would be HAPPY to take a hit financially to just see with my own eyes a SMIDGEN of justice done. Us angainst them mentality? YOUR RIGHT its the plebians little guys against the monied banks with corrupt officials in their pockets. This ruling is from an honest judge that is FINALLY doing what he feels is RIGHT and damn the consequences! If we don't enforce our own laws what kind of a society are we??? If what these banks have done is wrong...ITS WRONG!!! Who cares what happens to lending in MA! My experience is that in a market driven economy a void (lack of lending) creates competition. Smaller local banks will pick up the reins and do their job...HONESTLY. Not like the Dishonest major banks have done. NOVEL IDEA, actually being honest in a banking transaction. Hmmmm That might catch on!

SoldinOregon: (January 10, 2011 7:06am)

We are a country of rules and laws and what's good for some is good for all. I have liked to seen more loan modifications instead of foreclosures. I think it would have also limited the impact on home values.

Bono Vox: (January 10, 2011 7:05am)

Everything goes back to dating. The Big Banks represent the role of that ex girlfriend, the one you really don't like, but you know you can call her at 2am on the way home from a bar. Hate on the big banks, but we need 'em around. Horrible metaphor. I'll try to do better next time. Though it was colorful.........

Closer1: (January 10, 2011 6:59am)

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson, (3rd president of US (1743 - 1826) Bottom line is the banks have never worked for the best interest of the people. It was true then and it's even more so today.

TRSRealty: (January 10, 2011 6:51am)

Look...I agree with Mass Supreme court. These banks need a dose of their own medicine. The only way this is going to stop, heal, and recover is if these banks realize they are not invincible. Wells Fargo and BofA may be a needed resource, but who needs to be cheated and screwed the way these banks have screwed the majority of American home owners? Does anyone really thing that the banks will recover all the more quicker without sanction? We are stuck, and screwed no matter how you look at it. But I'd rather be screwed a little longer and teach these banks a lesson than be screwed the same amount of time, and let them slide. Yes, loans will be a little harder to get. Yes, the process may be more cumbersome...shouldn't it though? Maybe if they were properly regulated and audited they way they should have been, we wouldn't be in such a mess. It's the the gavel came down on these big banks, and the homeowner gets a bailout! All it means for them is no new corporate jets for the new year.

JimD: (January 10, 2011 6:48am)

I'm confused about the bad banks in this scenario. Were the banks foreclosing on people who were making their payments, or those who weren't? I agree that they may have been using 'short-cuts' to speed up the process due to the volume, but the bottom line is that there was a contract violated (no payments received) and the banks were trying to protect their interest. Also, the Congress was the main perpetrator of the mortgage mess, with the banks being willing players. We, the people, are also to blame for letting our elected officials get away with their power grab, and letting their financial cronies in on the action!

bankersfla: (January 10, 2011 6:41am)

Wait a minute lets not forget the borrowers borrowed and agreed to repay. I have not heard one story about the mortgage broker, realtor or closing agent with the gun pointed saying sign or else. No doubt the banks need to be able to properly establish who the lawful owner of the loan is but beyond that to suggest that a borrower can get out of repaying a loan because of some fance legal footwork is like a criminal getting off because he hired some high priced lawyer to trick the system and we all know what I am talking about...

HowardV: (January 10, 2011 6:38am)

This ruling says that prior to foreclosure the mortgage had to be transfered into the name of foreclosing party. Currently they have been leaving the mortgage transfer blank. This will cause delays but is already the practice in many states. Also, remember the borrower still signed a note they are responsible to repay.

cjtaz: (January 10, 2011 6:34am)

Just another if it bleads it reads headline. WF will find a way to settle (throw more money on the fire) just like BOA & GMAC. No matter what the lenders did right or wrong the bottom line is that the collateral for the loan is the house, no payment=no house. If you read the ruling it dose not say the 2 houses in question will be given back to the prior owner it states that the lender needs to cure the chain of title and do a new corrected foreclosure filing. If the borrower can not bring the loan current they are not getting a free house.

jack: (January 10, 2011 6:14am)

First No Doc, No verification loans. Now, No doc no verification foreclosures. This will create a need for rental properties in Massachusutts as the new buyers who are asked to leave their newly purchased home have no place to go. Just wondering how long it will take to reimburse the new buyers for their down payments, closing costs moving costs, costs for home improvements, mortgage payments made etc. Also wondering now if the 3 short sales that I am negotiating will get approved quicker than they have in the past. As a Massachusetts agent who helps borrowers avoid foreclosure I will be watching the affect of this ruling very closely.

VAlo: (January 10, 2011 6:14am)

I agree that this is not good for future mortgages, but at the same time, Wells Fargo and the other big banks are ruthless and unethical and making matters much worse than they need to be. All this has been to the big banks was a giant game of fat cat and mouse. Now is anyone surprised when the mouse asks the lion for help? Recently a friend had an "approved" modification with Wells Fargo after months of nasty calls to home and employer and that consisted of her original payment being increased by $400 a month! Really? We all hear these stories of how people are trying to do the right thing and the banks simply take out there big bat and flex their muscle. With all the bailout money they have coming in, they do have too much power to fail. The banks do need a wake up lesson. I am sorry but all this mess and banks are still not holding themselves accountable to ethics - they believe the rules still do not apply to them.

therealtor: (January 10, 2011 6:13am)

Technicality...using illegal and criminal practices is that? We might need banks, but we certainly needs banks that don't obey the law and steal. And your argument about people not making payments, is unsufficient to warrant such criminal behavior. As I stated before, you are two Buffoons, spreading stupid, short sided information only to progress your own interests. This has nothing to do with MERS, this has to do with major institutions totally not following the law and in most cases unfair enrichment. I'm in the transaction related industry just as you and want to make more money, but for you to advocated unlawful bank practices under the guise of technicality is irresponsible and plain stupid.

srbmoney: (January 10, 2011 6:07am)

Frank, the current banking system is at the root cause of this crisis and now that things might get closer to reality, you want us to protect the Banks? Banks are not the only source of funding in this country. Look back to the first Great Depression. That was a time before The Fed had the ability to just print money. Who bailed out the country then? You talk of property values declining further, the banks willingness and ability to make loans out of thin air caused much of the increase in value to begin with. Isn’t this just another step closer to reality? There is a serious problem in this country and until someone wants to step up and take the pain for long term gain, we will continue to kick the can down the road like Washington has always done. If this is the end of Banking as we know it, Al-le-lu-ia! We need to step up and grow up sometime.

njaramillo: (January 10, 2011 5:47am)

If Wells Fargo doesn't follow the rules then they deserve what they get. I can't wait for the tougher rules to be set in place, because the main thing when doing a loan is to make sure the customer is going to be able to afford it; not how much is your commission. What happened to this country can never happen again. 28/36 are the guidelines not 55 DTI, if we follow these main guidelines then we won't be discussing massive foreclosure problems. In 5 years we will all have forgotten this problem if we go back to you saving up for your closing costs, downpayment, and have a secure income to be able to pay your mortgage & all of your bills on time so you can live life stress free and not have to worry about the roof over your head. Lets face it, 90% of these cases were behind the 8 ball right out of the gate. I lost many deals when I told the customer they can't afford it, but they still got done by someone else. And YOU were the bad guy, because you care about them & their family!

fledermaus: (January 10, 2011 5:41am)

IF banks had proper paperwork and had followed the rules and the law, as they were supposed to. If when bundling and selling Mort Back Securities worth Billions the had transferred and recorded everything as they should, then we wouldn't be talking about this. Banks that don't do it correctly will go, and should go, out of business. If I don't do my paperwork right the loan doesn't get U/W or funded. PERIOD. It's important enough for me in my commission. Seeingly with deals worth millions or Billion s it should have been MORE important to do it correctly!! They have no one to blame but themselves. There are some banks that did it correctly legally and will foreclose no problem. We HAVE to be a fair nation with the impartial rule of law -OR- were a corrupt Nation where those with the most money win. I see us sliding towards one of those... Don't you? and it 'aint good. You can argue for the 'greater good' and 'intentions...' But that is legislating from the bench. Legal?

FLappraiser: (January 10, 2011 5:20am)

Soooooooo, then it is OK for the banks not to follow the rules like we have to? Well Ollie, I guess that is right..."WE" don't get to change the rules as we go along, only the government and the banks and the "big boys" can do that.

Real Estate Nate: (January 10, 2011 5:18am)

Banks must obey the law even if it hurts them (and ultimately the real estate market). Letting them get away with this is akin to letting your star football player break the law with no consequences just because you want him to play in the big game. If we miss the opportunity to rebuild the real estate market on a proper foundation just because we want the market to recover quicker, then aren't we allowing for the same problems down the road? When I make a mistake, my clients want to know two things: how will I deal with the consequences of the mistake and how will I change to help avoid the same mistake again in the future?!

Brett Pavel: (January 10, 2011 5:11am)

Another example of "to big to fail" argument. It just seems no matter what happens little old Main Street folks get screwed. As you have repeatedly pointed out the longer the foreclosure mess drags on the longer the economy will suffer. Oh, if we just let everyone easily refinance the house they are already in upside down or not! Alas, too simple.

Racheli: (January 10, 2011 5:05am)

WOW I never in my wildest dreams thought a rulling like this will happen. Looks like we are going to be sucked in deeper ito the black whole. So now people who bought those homes will get a knock on the door "you need to leave" this is VERY VERY VERY.... BAAAAAD!

HVCCSICK: (January 10, 2011 4:23am)

There is more to Real Estate than industry participants making a living. Property Rights must be protected for the good of all the people of this country. While it's clear that most people who were foreclosed on did not pay their mortgage, it's also clear that no one knows who is owed that money. This is a problem created by the Banks, and we will all pay for it, but, it must be resolved, and it should be resolved nationwide. Many titles have now been clouded because of non-recording of mortgage transfers, and much of that is reflected in deeds that no longer state the interests in the real estate that are being conveyed. Very few deeds these days say the "fee simple interest" because title searchers cannot find out who owns those loans either.

Divedude: (January 10, 2011 3:56am)

Go Massachusetts!! I sent your video on the Florida robo signing mess to Massachusetts AG Martha Coakley's office. I also mentioned a situation that I encountered with Wells Fargo when performing a VA liquidation appraisal. I explained the type of people that are foreclosing on our vetrans. Her office acknowledged reciept that day and promised appropriate action. Wells Fargo's inability to get their house in order without crippling the lending industry is just another reason to split them up. There will always be someone to take their place.

EODJIM001: (January 10, 2011 3:37am)

Just bring due process to the foreclosure process. If the servicers had followed the rules, they wouldn't have this problem now. If the consumer has to follow the rules (mortgage) then the servicers need to follow the foreclosure laws. They took short cuts and it's costing them more than doing what was right in the first place.