Friday, March 11, 2011

WAMU Borrowers Teleconference Meeting with the Office of Attorney General, California

Members of the WAMU Chase Homeowners Action Alliance (WCHAA) participated in a teleconference on March 10, 2011, with three senior Deputy Attorneys General in the Office of Attorney General in San Francisco, California,  Members of WCHAA described the problems WAMU borrowers continue to face everyday and outlined suggestions and potential remedies to begin to cure the bank and mortgage fraud in California. [Participants are listed at the bottom of the page. A more detailed report will follow.]

WAMU's motto was "Friend of the Family."  We as borrowers know WAMU was no friend of our family.  Now the Office of the Attorney General in California knows this.

As California is a non-judicial foreclosure state, borrowers without financial resources have little means at hand to go into combat with these enormous financial institutions such as JPMorgan Chase, servicer for Washington Mutual Bank. We feel strongly that the banks carefully and meticulously engineered the fraud perpetrated on borrowers throughout California and across the entire country.  In fact we assert that these banks purposely preyed on our citizens to feed their greed.

On behalf of WAMU borrowers we specifically addressed issues relative to the greed and fraud perpetrated on homeowners across California and our nation. We outlined WAMU's history of greed, fraud, and abuse. We raised concerns about the dead bank, Washington Mutual Bank FA's continued operation after April 4, 2005 when it became Washington Mutual Bank; that the bank made loans and has engaged in foreclosures under the name of the dead bank WAMU FA.  We also addressed the fraudulent practices perpetrated by California Reconveyance Company. 

Tess Schoenbart bravely presented a moving testimonial and put a very real face to this crises.  Her Lafayette, California has been scheduled to be sold on the Contra Costa County Courthouse steps in Martinez on Monday, March 14th at 1:30 PM.  After the teleconference one of the DAGs stepped up to the plate in an attempt to intervene on her behalf.  Meanwhile today she is gearing up for whatever lies ahead.  We pray for the best for Tess and everyone similarly situated.

On behalf of the members of the National WAMU Homeowners Support Group, we invited the Office of the Attorney General to consider our bottom line proposal to remedy and cure the fraud as they move forward to address these wrongs and evil doings.


1.   Immediate moratorium on foreclosures for six months.  {Hawaii has set this precedent and is currently executing a foreclosure moratorium.]

2.    Cessation of trial modification programs due to rampant bank abuse, lost documentation, and deceptive practices of the banks which feed their greed machine.

3.    Mandatory permanent loan modifications -- affordable and sustainable -- for all homeowners in distress regardless of the size of the mortgage.  [Banks preyed on Californians and fed the soaring real estate values creating false markets.  Banks engineered Option ARMs, subprime loans, and home equity loans so that the borrower had to keep coming back to the bank to meet their escalating payments. Homeowners/borrowers were set up intentionally to fail.]  
a.    Low fixed interest rates (2 – 4 % maximum)
b.    Long term mortgages (40 years)
c.    No balloon payments
d.    Waiver of missed payments and foreclosure fees
e.    Rescission of all Notices of Default and Notices of Trustees Sales

4.     Mandatory principle reductions.

5.    Restitution for fraudulent foreclosures and evictions.

6.    Cessation of parallel foreclosure practices that represent a continuation of the fraud and a system designed to steal our homes.

7.   Proof of beneficial interest in a property prior to foreclosure in the form  of a wet-ink note.  If a loan was securitized, documentation must be provided to homeowners before foreclosure proceedings are implemented.

8.   The level of documentation needed to proceed to foreclose should: 

a.   Identify the current "real party in interest" and document unequivocally how that occurred through a RECORDED chain of title. NO NOMINEES   NO AGENTS. NO LOST NOTE AFFIDAVITS. NO EXCEPTIONS. NO TRICKS.  Consider AZ 1259.  ||  Consider the Ibanez Decision. Consider actions by  Judicial in Oregon.
b.  The creditor or creditor’s agent’s attorney should be required to verify all Recordations and Servicer assertions as stated on the Notice of Default and Notice of Trustee’s Sale; and that “office of the court” should be HELD directly accountable.  ¶  As in the recent procedures enacted in the state of New York.

c.    The homeowner should be afforded a "Private Right of Action" with substantial  TEETH if and when they encounter malfeasance, deception and bad faith on the  part of lender or their counsel and ".  This is desperately needed because of the   failure of the executive and legislative branches to protect it own citizens.  THEY MUST BE ALLOWED THE WHEREWITHAL TO PROTECT THEMSELVES.

9.    Criminal prosecutions within the lending and foreclosure machines for fraud and other violations of legal statutes and civil codes. Financial restitution to the victims of their high crimes and misdemeanors.

10.   Break up the banks that are "too big to fail.

Representing the WAMU Chase Homeowners Action Alliance:  Brenda Reed, Charles Coffey, James Kelly, & Tess Schoenbart

Representing the Office of Attorney General:  Kathrin Sears, Supervising Deputy Attorney General, California Department of Justice, Office of the Attorney General; and schedule permitting, Joseph A. Ragazzo, Deputy Attorney General and Benjamin Diehl, Deputy Attorney General

1 comment:

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