Chain of Title (48 page)

219
Martin and Kirsten Davis:
Teresa Dixon Murray, “Mortgage Foreclosure Uproar Sweeps Up Northeast Ohioans,”
Cleveland Plain Dealer
, October 17, 2010.

219
Nancy Jacobini:
Joel Siegel, Felicia Biberica, and David Muir, “Mortgage Bullies?: Banks Accused of Illegally Breaking into Homes Facing Foreclosure,” ABC News, October 11, 2010; “Housing Crisis Reaches New Low,”
Dylan Ratigan Show
, October 6, 2010; “Why Are Bailed-Out Banks Breaking into Struggling Borrowers' Homes?”
Democracy Now
, October 12, 2010.

219
“There is no room for errors”:
Barry Ritholtz, “Why Foreclosure Fraud Is So Dangerous to Property Rights,”
The Big Picture
(blog), October 12, 2010,
www.ritholtz.com/blog/2010/10/why-foreclosure-fraud-is-so-dangerous-to-property-rights
.

220
“When you have people in Texas and Florida being foreclosed on”:
Barry Ritholtz, “What's the Foreclosure,”
The Big Picture
(blog), October 12, 2010,
www.ritholtz.com/blog/2010/10/whats-the-foreclosure
; CNBC, air date October 11, 2010, 5:00 p.m. ET.

220
And without title insurance, nobody would risk a purchase:
David Streitfeld, “Company Stops Insuring Titles in Chase Foreclosures,”
New York Times
, October 2, 2010.

220
Bank of America suspended foreclosures:
Robbie Whelan, “Bank of America Suspends Foreclosures,”
Wall Street Journal
, October 2, 2010.

220
Connecticut called a moratorium:
Ariana Eunjung Cha, “Connecticut Halts All Foreclosures for All Banks,”
Washington Post
, October 1, 2010.

220
Grayson made an easy-to-understand video:
Alan Grayson, “Fraud Factories: Rep. Alan Grayson Explains the Foreclosure Fraud Crisis,” September 30, 2010,
https://www.youtube.com/watch?v=AqnHLDeedVg
.

220–221
Ohio attorney general Richard Cordray announced his GMAC lawsuit:
David Dayen, “Ohio Attorney General Sues GMAC, Seeks $25,000 per False Affidavit,” FDL News Desk, October 6, 2010,
http://shadowproof.com/2010/10/06/ohio-attorney-general-sues-gmac-seeks-25000-per-false-affidavit
.

221
Federal banking regulators opened formal reviews:
Ariana Eunjung Cha, “7 Major Lenders Ordered to Review Foreclosure Procedures,”
Washington Post
, September 30, 2010.

221
On October 8 Bank of American extended its moratorium:
Ilyce Glink, “Bank of America, Ally Bank Extend Foreclosure Freeze to All 50 States,” CBS Mar-ketwatch, October 8, 2010.

221
Chase, GMAC, Litton Loans, and Citi followed suit:
“Texas Mortgage Company Halts Some Foreclosures,” Associated Press, October 8, 2010. Accessed at
https://www.victoriaadvocate.com/news/2010/oct/08/bc-us-litton-foreclosures/

221
robo-signer Xee Moua:
Suzanne Kapner, “Wells Adds to Crisis over Home Seizures,”
Financial Times
, October 14, 2010; Jia Lynn Yang, “Wells Fargo Acknowledges Problems in Foreclosure Paperwork,”
Washington Post
, October 27, 2010.

221
On October 13 the attorneys general of all fifty states:
Ray Sanchez, “Foreclosure Mess: 50 States Investigate Mortgage-Services Industry,” ABC News, October 13, 2010.

17. The Big Time

222
Good Morning America, The Daily Show
, and nightly newscasts:
Good Morning America
segment on robo-signing available at
http://sherriequestioningall.blogspot.com/2010/10/good-morning-america-segment-on.html
; Paul Jackson, “Jon Stewart on Robosigners and Foreclosure-gate,” Housing Wire, October 8, 2010; Matt Gutman and Bradley Blackburn, “Foreclosure Crisis: 23 States Halt Foreclosure as Officials Review Bank Practices,” ABC News, October 4, 2010.

222
Lisa and Michael became front-page news:
Ariana Eunjung Cha, “Florida Activists Read Between the Lines on Foreclosure Paperwork,”
Washington Post
, October 21, 2010; Tony Pugh, “How 2 Civilian Sleuths Brought Foreclosure Problems to Light,” McClatchy Newspapers, October 13, 2010; Kimberly Miller, “‘Deadbeat' Fights Back Against Foreclosure Process,”
Palm Beach Post
, October 20, 2010.

222
“Funny how we have been screaming this for about a year”:
Michael Redman, “Kristine Wilson—Robo Signer Part Deux—Ally's GMAC Unit Withdraws Foreclosure Affidavits Signed by Second Employee,”
4closurefraud.org
, September 25, 2010.

222
“Preempted by a Passel of Pigs”:
Lisa Epstein, “Preempted by a Passel of Pigs Being Put in the Pen (Hopefully Foreshadowing Reality),”
Foreclosure Hamlet
, October 5, 2010.

222
“MBS? There are no mortgages backing these securities”:
Video of MSNBC appearance available at YouTube, posted by user “Big Brother Is Watching,” uploaded October 26, 2010,
https://www.youtube.com/watch?v=d6PwU4MUz9Y
.

223
“emergency happy hours”:
Michael Redman, “Emergency Happy Hours—Thurs 9/23 Tampa & Fri 9/24 St. Pete, FL: Gatherings for Combatants of Illegal Foreclosures,”
4closurefraud.org
, September 22, 2010.

223
They filed public records requests:
“ACLU Seeks Public Records to Determine Constitutionality of Foreclosure Proceedings in Florida,” ACLU press release, October 19, 2010.

223
Lisa found a flood of “replacement” mortgage assignments and affidavits:
Lisa Epstein, “Shapiro Fishman File More Corrective Assignments of Mortgage,”
Foreclosure Hamlet
, September 19, 2010.

224
“The mortgage follows the note”:
Yves Smith, “American Securitization Forum Tells Monstrous Whoppers in Senate Testimony on Mortgage Mess,”
Naked Capitalism
, December 2, 2010.

224
a campaign called Where Is the Note?:
David Dayen, “Democrats Continue to Pressure Lenders Toward Nationwide Foreclosure Moratorium,” FDL News, October 9, 2010,
http://shadowproof.com/2010/10/09/democrats-continue-to-pressure-lenders-toward-nationwide-foreclosure-moratorium
.

224
“Lawyers in the field now commonly use a technique”:
Robbie Whelan, “Niche Lawyers Spawned Housing Fracas,”
Wall Street Journal
, October 21, 2010.

224
“So we can improve the economy by throwing millions”:
The Daily Show with Jon Stewart
, October 7, 2010.

224
“Fraud doesn't erase the fact that the borrower agreed”:
John Carney, “Let's Not Start Lionizing the Anti-Foreclosure Deadbeats,”
CNBC.com
, October 13, 2010.

225
“recognize any lawful notarization”:
Text of HR 3808, 111th Congress of the United States of America, available at
https://www.govtrack.us/congress/bills/111/hr3808/text
.

225
States could challenge the statute, but that could take years:
Jennifer Brunner,
Cupcakes and Courage
(Columbus, OH: Little Blue Valiant, 2012), 532–33, 539–45.

225
Spencer, who was still working in the West Wing, promised:
Ibid., 542–43.

225
Michael reposted Brunner's email:
Michael Redman, “Action Alert—Please Tell President Obama Not to Sign the Interstate Recognition of Notarizations Act,”
4closurefraud.org
, October 5, 2010.

226
“unintended impact of this bill”:
Arthur Delaney, “Obama Will Not Sign Bill Seen as Cover for Bank Foreclosures,”
Huffington Post
, October 7, 2010,
http://www.huffingtonpost.com/2010/10/07/obama-pocket-veto-foreclosures_n_753987.html

226
Michael published his findings:
Michael Redman, “Action Alert—Is Pres Obama's Pocket Veto on H.R. 3808 Possibly Ineffective?”
4closurefraud.org
, October 8, 2010.

226
“To leave no doubt that the bill is being vetoed”:
Barack Obama, “Presidential Memorandum—H.R. 3808,” White House press release, October 8, 2010.

226
In President Obama's first six years in office he vetoed only two bills:
U.S. Senate, “Vetoes by President Barack H. Obama,”
www.senate.gov/reference/Legislation/Vetoes/ObamaBH.htm
.

227
“One person really can make a difference”:
Brunner,
Cupcakes and Courage
, 544.

227
“I don't know the ins and outs of the loan”:
“Robo-Signers: Mortgage Experience Not Necessary,” Associated Press, October 12, 2010.

227
Lynn was nonplussed:
Jeremy Pelofsky, “U.S. Justice Dept. Probing Foreclosure Processes,” Reuters, October 6, 2010.

227
a Bush-era assistant attorney general, Paul McNulty:
Scot J. Paltrow, “Special Report: Legal Woes Mount for a Foreclosure Kingpin,” Reuters, December 6, 2010.

228
June and Theresa took a deposition from Tammie Lou Kapusta:
Deposition of Tammie Lou Kapusta, in re: Investigation of Law Offices of David J. Stern, P.A., State of Florida Office of the Attorney General, AG #L10-3-1145, September 22, 2010, available at
www.scribd.com/doc/38890568/Full-Deposition-of-Tammie-Lou-Kapusta-Law-Office-of-David-J-Stern
.

229
June and Theresa leaked the deposition:
Michael Redman, “Exclusive Bombshell of Foreclosure Fraud—Full Deposition of Tammie Lou Kapusta Law Office of David J. Stern,”
4closurefraud.org
, October 7, 2010.

229
The state prosecutors sent another deposition later:
Michael Redman, “Another 4closureFraud Bombshell—Full Deposition of Kelly Scott of the Law Office of David J. Stern,”
4closurefraud.org
, October 18, 2010.

229
That wiped out a large chunk of the company's business:
Andy Kroll, “Fannie, Freddie Ditch Foreclosure King,”
Mother Jones
, October 13, 2010.

229
they even formally reprimanded Erin Cullaro:
Shannon Behnken, “AG's Office Reprimands Its Attorney for ‘Foreclosure Mill' Work,”
Tampa Tribune
, October 19, 2010.

229
Democrats . . . pounced on the issue:
Arthur Delaney, “Calls Mount for Foreclosure Moratorium, Investigations,”
Huffington Post
, October 7, 2010.

229
twenty pages of horrific case studies:
David Dayen, “Pelosi, California House Dems Call for Criminal Investigations of Mortgage Lenders,” FDL News, October 5, 2010,
http://shadowproof.com/2010/10/05/pelosi-california-house-dems-call-for-criminal-investigations-of-mortgage-lenders
.

229
Alan Grayson wanted foreclosure fraud monitored:
Yves Smith, “DC Waking Up to Escalating Foreclosure Train Wreck: Grayson Calls for FSOC to Examine Foreclosure Fraud as Systemic Risk,”
Naked Capitalism
, October 7, 2010.

230
David Axelrod told
Face the Nation
that foreclosures with proper paperwork:
Tom Cohen, “Axelrod Signals White House Opposition to Foreclosure Moratorium,”
CNN.com
, October 10, 2010.

231
Michael posted the Obama robo-signer story:
Michael Redman, “4closureFraud Exclusive—President Obama Falls Victim to Chase Robo-Signer,”
4closurefraud.org
, October 10, 2010.

231
an irreverent Dutch blog called
GeenStijl
:
John Galt (pseudonym), “GeenStijl CrisisWatch: Foreclosure Fraud,”
GeenStijl
, October 13, 2010, available at
www.geenstijl.nl/mt/archieven/2010/10/crisiswatch_column_foreclosure.html
.

231
“Feel free to call or email me”:
Michael Redman, “4closureFraud Exclusive Part Deux—President Obama Falls Victim to Another Robo-Signer,”
4closurefraud.org
, October 11, 2010.

231
Within three weeks Bank of America pronounced themselves free of errors:
Charles Riley, “Bank of America Resumes Foreclosures in 23 States,”
CNNMoney.com
, October 18, 2010.

231
“10 or 25” problems in the first “several hundred”:
Dan Fitzpatrick, “BofA Finds Foreclosure Document Errors,”
Wall Street Journal
, October 24, 2010.

231
4,450 errors just in the five boroughs of New York City:
Robert Gearty, “Dubious Signatures, Missing, Inaccurate Paperwork Halt 4,450 City Foreclosures,” New York
Daily News
, October 24, 2010.

231
In Cuyahoga County, Ohio, a judge ruled:
David Dayen, “Ohio Ruling: No Substitution of Foreclosure Documents in Robo-Signing Cases,” FDL News, January 3, 2011,
http://shadowproof.com/2011/01/03/ohio-ruling-no-substitution-of-foreclosure-documents-in-robo-signing-cases
.

231
Nobody would put themselves on the line:
“New York Courts First in Country to Institute Filing Requirement to Preserve Integrity of Foreclosure Process,” press release, State of New York Unified Court System, October 20, 2010, available at
www.courts.state.ny.us/press/pr2010_12.shtml
; Hon. Glenn Grant, Administrative Director of the Courts of the State of New Jersey, Administrative Order Directing Submission of Information from Residential Mortgage Foreclosure Plaintiffs Concerning Their Document Execution Practices to a Special Master, Order No. 01-2010, December 20, 2010, available at
https://www.judiciary.state.nj.us/notices/2010/n101220b.pdf

231
Bank stocks sank throughout October:
David Hilzenrath, “Worries over Fast-Tracked Foreclosures Send Bank Stocks Plummeting,”
Washington Post
, October 14, 2010.