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OneWest Bank employee: 'Not more than 30 seconds' to sign each foreclosure document

The recent announcements by J.P. Morgan Chase and Ally Financial that they were freezing some foreclosures because of paperwork irregularities raises a key question: How many more mortgage companies employed "robo-signers?"

In a sworn deposition in July, Erica Johnson-Seck, an Austin, Tex.,-based vice president for bankruptcy and foreclosure for OneWest Bank, said she and her team of seven others sign 6,000 documents a week or about 24,000 a month without reading all of them.

Johnson-Seck estimated that she spent no more than 30 seconds to sign each document.



She explained that while she does not check everything, she does check some information, "which is why I said 30 seconds instead of two seconds."

In the past, the company had a quality control process that required signatories to check 100 percent of the debts and any figures for loans and bankruptcy, Johnson-Seck said. But the error rate was low, so now they only check about 10 percent of the documents.

She said OneWest Bank's "outsourcing vendor," Lender Processing Services, "checks the documents completely."

A subsidiary of Lender Processing Services is the subject of a criminal investigation by the U.S. attorney's office in the middle district of Florida. LPS has acknowledged problems with its foreclosure paperwork, saying there was an error in how the company handled notarization.

Johnson-Seck also said in the deposition that she had signing authority for Deutsche Bank, Bank of New York and U.S. Bank, among others.

A spokeswoman for OneWest, the successor to IndyMac Federal Bank, a Pasadena-based bank that collapsed in July 2008, declined to comment.

"Johnson-Seck's deposition was eerily similar to the ones given by employees at J.P. Morgan Chase and GMAC," said Dustin Zacks, the attorney in Florida who took the deposition.

By Ariana Eunjung Cha  | September 30, 2010; 12:21 PM ET
Categories:  Housing  
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Next: Economic agenda: Friday, Oct. 1, 2010

Comments

slow motion train wreck in the making

Posted by: Anonymous | September 30, 2010 12:36 PM | Report abuse

The Class Action lawyers are circling. . . . .

Posted by: ChrisW1958 | September 30, 2010 1:46 PM | Report abuse

A "Deputy" to a notarization agent can be just about anybody. Loose cannon much? Slack gate keeping?

Posted by: deepthroat21 | September 30, 2010 2:11 PM | Report abuse

LIES: RATINGS, APPRAISALS, AFFIDAVITS ETC.

Neil Garfield


The common thread is they were lying.

*
They lied when they said these were AAA rated liquid investments based upon industry standard underwriting standards for residential mortgages
*
They lied when they said this property is worth more than the principal that was borrowed.
*
They lied when they said these loans are in default
*
They lied when they said they were giving a complete accounting for the transaction
*
They lied when they said “I have personal knowledge”
*
And they are lying now when they say the contents of the fraudulent documents are true but the person was wrong. If that was true all they would have to do is submit a corrective instrument signed by someone who would swear again under oath that the facts were true. But they don’t have that person because there are no such “true facts.” The whole thing is a myth and now it is starting to unravel. There is a way out of this mess for everyone, but nobody listens to the facts — they (the banks) insist on stepping on rake after rake as they walk off a cliff. Who is advising these people, Daffy Duck?

Crushing their own credibility, GMAC, Ally and Chase and soon other banks and their foreclosure mills will soon be trying to tell us that the information on the affidavit is correct, that the substitution of trustee is valid, that the notice of default is genuine, that they are the holder of the note (even if the obligation inures to the benefit of another party), and that the lien has been perfected. They continue to proceed as though they can fool all the people all of the time.

Memo to Banks: your advantage in procedure is vanishing — there are about 5,000 judges across the country that are questioning themselves and their docket and most of all YOU, whom they trusted. Judges don’t like it when someone uses the system to make a mockery of the rules, and they really don’t like it when they realize that they just rubber stamped 3,000 foreclosures that were fatally defective. RULE #1: Don’t make the Judge angry. Oops, you already did that.

Nobody liked or trusted the banks before the revelations by GMAC and Chase corroborating what I have been saying for three years and teaching in my seminars about evidence, objections and the rules of civil procedure. Your credibility is going down the drain, what was left of it. You can’t use fake affidavits to circumvent the requirements of evidence and substantive law anymore. You can’t submit assignments, endorsements, substitutions of trustee, notices of default, notices of sale and file motions for summary judgment unless you are actually entitled to win on a level playing field. That means you need a live witness who is going to say that the assignment was executed by them on behalf of an entity that had something to assign and with authority from that entity that can be shown with

Posted by: jlsemidey | September 30, 2010 2:36 PM | Report abuse

www.livinglies.wordpress.com
4closurefraud.org
msfraud.org

all these websites are full of information, case law, testimonies, and above all the truth about this theft of America.

I would suggest you hire an attorney and start filing your action to quiet title if you bought a house in the last 15 years. You have no idea if your lien has really been released and your debt satisfied.

If you have sold your home you still may be liable for the loan you thought you had paid off.

These criminals need to pay, our country is bleeding blood, sweat and tears and no one acts. In virginia and DC the system is non judicial, meaning that some one can send you a few letters, lie in the documentation and you are foreclosed. No due process at all.

It is not the economy, it is the foreclosures STUPID. The numbers are staggering.

Want to fix the economy, keep these people in their homes, besides those mortgages have already been paid off in full several times over.


www.livinglies.wordpress.com
4closurefraud.org
msfraud.org

pelucheven@hotmail.com

Posted by: jlsemidey | September 30, 2010 2:46 PM | Report abuse

seems the work has overrun the process and the companies can't deal with it...
schedule the foreclosure in court...
either the homeowner pays up or convinces the judge to let them say for legal reasons...
the bank would also have to prove their case...
immediate judgement...
fair justice...

Posted by: DwightCollins | September 30, 2010 3:55 PM | Report abuse

see my website have proof of other ROBOSIGNERS for other banks
http://www.californiaforeclosurefraud.us/

Posted by: manaya1 | September 30, 2010 4:11 PM | Report abuse

How long will it be before they are all "over the cliff" like lemmings?

Posted by: Anonymous | September 30, 2010 4:15 PM | Report abuse

Neil Garfield(www.livinglies.wordpress.com) was the other website I forgot to list. They have the knowledge about the abuses in courts and mills. This affidavits thing is just the tip of the iceberg. It's a snow job to the really big coverup that's hiding the fact that they don't even own the note and mortgage.

Posted by: eugenevillarreal | September 30, 2010 4:31 PM | Report abuse

And ALL companies need to be fully investigated for at least the past 5 years, maybe 10. Then add to the investigations those banks and mortgage companies for fraud. I suspect they will find a lot more problems that caused the foreclosures can be directly traced back to banks and mortgage companies. Everything possible should be done to return properties to the owners without penalties.

Posted by: gmclain | September 30, 2010 4:33 PM | Report abuse

Heck! I see a pattern developing here!

foreclosurehamlet dot org

Posted by: Anonymous | September 30, 2010 4:40 PM | Report abuse

These depositions are old news but good news for everyone who has not had a chance to see what the leaders(websites) in the fight for homeowners rights have been screaming about. I look to them for good information. Your newspaper and you have put the rest of the public on the national spotlight to these abuses. Please keep it up and help homeowners.

Posted by: eugenevillarreal | September 30, 2010 4:43 PM | Report abuse

THE BIGGER PICTURE: Failure to pay recording fees and intangibles taxes.

It seems to me that local county and state prosecutors would be looking for indemnification payments for all of the fees and taxes that they have been cheated out of.

Local municipalities and county governments are hurting, laying off police officers and fireman placing the citizenry in jeopardy and all they have to do is file a suit against every single lender that recorded a security deed in their county registrar over the last 10 years.

Talking about Tsunami Waves, last month August 2010 in Gwinnett County Georgia there were 2700 foreclosure filings.

Lets pick an imaginary number “3”. That each mortgage had been assigned sold and transferred three times since the original purchase security deed recording.

That each of these MERS and other lender secondary market transactions ripped the county off of recording fees and intangibles taxes over the life of those loans.

Let us use a low number for each average mortgage balance: $100,000.

2700 x $100,000 = $270,000,000 x 3 = $810,000,000 x .30% (tax percentage) = $2,700,000. In taxes not paid to the State of Georgia for this one-month sample.

County recording fees= 2700 x 3 = 8100 x $75 (avg) = $607,500 the county was cheated out of for recording fees for this one month sample.

Now lets ADD IN all of the non-foreclosed properties that required recording fees and intangibles taxes be paid every time there was a assignment, sale and transfer of that security into the secondary markets.

ASTRONOMICAL RIP-OFF. If the Federal authorities are going to artificially prop up these crooks I say the States AG’s need to be looking to foreclose on all of those CASH RESERVES the BANKS are sitting on from the bailouts and obscene profits.

Posted by: ScottD3 | September 30, 2010 4:58 PM | Report abuse

To ScottD3: Your point cannot possibly be under-stated. Unfortunately, just as our kangaroo courts have been bribed, so too have are clerks of court. We've been throwing this at them for a long time. They are more worried about collecting one dollar per page for court files.

Posted by: Anonymous | September 30, 2010 5:13 PM | Report abuse

Patterns and practices of lending fraud, securities fraud and forweclosure fraud. What is the common thread here?

If you are a WAMU / Chase homeowner, welcome home!
www.wamuloanfraud.com

Posted by: Anonymous | September 30, 2010 5:20 PM | Report abuse

Funny how the banks demand their customers dot every "i" and cross every "t" while saying they get to cut as many corners as they like.

This problem will stop as soon as the courts stop giving the banks free passes. Too bad if following the law costs money.

What's good for the banks' customers is good for the banks.

And as a legal matter, whether there's a foreclosure "crisis" is irrelevant.

Posted by: Garak | September 30, 2010 5:22 PM | Report abuse

AMBAC SUES BANK OF AMERICA FOR MASSIVE FRAUD: $16.7 billion


http://livinglies.wordpress.com/2010/09/30/ambac-sues-bank-of-america-for-massive-fraud-16-7-billion/


AMBAC is one of the insurers of loan portfolios, like AIG. The insurance paid off when the Master Servicer declared the portfolio had “failed,” based upon standards that were set by the Master Servicer and Underwriter. The insurer had waived its right to challenge that assessment and waived subrogation. It is through this mechanism that many loans that are still performing, many loans that are in current foreclosure proceedings, and many loans that were foreclosed were either paid off or the delinquency was paid by the carrier. In the contract of insurance the insurer expressly waives any right of subrogation. Thus the receiver of the proceeds of insurance gets to keep the money and the portfolio too which was largely performing.

Posted by: Anonymous | September 30, 2010 5:33 PM | Report abuse

Questionable commercial and residential real estate foreclosures via deceptive and fraudulent proceedings enable lenders to repeatedly, illegally flip properties, and enables falsified IRS form 1099-A’s. Foreclosure fraud is the best means by which unscrupulous FORECLOSURE MILL LAWYERS deceptively auction and bid (or insiders bid) and acquire those properties; and some neighborhoods blighted.

Foreclosure fraud deliberately utilizes defunct mortgage lenders companies or companies which no longer own promissory notes; huge ransom “fees” makes it even harder for property owners to regain properties. Two particular companies “which benefit from fraudulent foreclosures are Wells Fargo and Freddie Mac.

Representations about Freddie Mac billion dollar losses should be weighed against the needless money that Freddie –as well as other lenders– PAY foreclosure mills and debt collectors who utilize courtrooms to outmaneuver and persecute property owners who oppose fraudulent foreclosures. Further, when justified lawsuits for fraud –as well as for OUTRAGEOUS “Unfair Debt Collection Practices,” become filed against lenders and mills, those same lawyers make additional $$$$ from litigating and concealing their own wrongdoing!

Further, THE SHOCKING fabricated pleadings filed in Bankruptcy courts for FRAUDULENT REPOSSESSION of commercial and residential real estate res ipsa loquitur is demonstration of intentional foreclosure fraud. Foreclosure fraud has many far reaching effects for people; for example: UNJUSTIFIABLE HOMELESSNESS, UNFAIRLY answerable for IRS tax bills, and undue “deficiency judgments.” **http://open.salon.com/blog/wwwlawgraceorg/2010/08/18/case_in_point_foreclosure_mills_judicial_fraud_consumer

Posted by: lawgrace | September 30, 2010 7:01 PM | Report abuse

When a mortgagee hasn't made a payment in one to two years, they are squatters, who have become DEADBEATS.

These people are trying to wiggle their way out of their responsibilities and postpone the inevitable.

Class Action Lawsuit? Not a freakin' nickel. These people are DEADBEATS.

People of courage would accept their fate for their FAILURE to meet their commitments and start over, not hold a lender hostage or clog the courts with penny-ante excuses.

Simply stated, when money is lent, there is an expectation that the obligations will be made. People who have gotten burned by these DEADBEATS, include pensioners, seniors and pension funds, who have invested in these loans. What about them?

Save the sob stories for someone else.

Posted by: Computer_Forensics_Expert_Computer_Expert_Witness | September 30, 2010 7:49 PM | Report abuse

You raise a good point, Computer Forensics Expert: these are by and large (with a few notable and disturbing examples) people who have defaulted on their loans. That's not to take anything away from the circumstances that may have led them to that point (to wit, I'm not sure I'd categorize them as deadbeats...often just regular janes and joes who've hit a rough patch in their life), just to say that when everything is stripped away, they are folks who bought into a rising real estate market (perhaps at a less than ideal time), and who ultimately did not make their payments. That's not fraud on the part of the banks any more than it's fraud on the part of borrowers - they didn't willfully take out loans with the intent to default; they just did. but the point is, they haven't been making their payments. I read somewhere (NYT, I think) that it's something like an average of 400 days that people don't make their payments before they're foreclosed upon. That's a long time. And a lot of missed payments.

Posted by: Anonymous | September 30, 2010 8:05 PM | Report abuse

Are you looking to file for bankruptcy? Compare your bankruptcy options and information http://bit.ly/avB0jI

Posted by: chloemia01 | October 1, 2010 6:18 AM | Report abuse

The law is the law, no matter who profits from it. Sure, it's ethical questionable when homeowners default on their mortgage but stay in their houses for months, for free. But that's no legal argument.

The law mandates that the focreclosure documents have to be checked and verified if the information is correct, and that this procress has to be confirmed by the responsible officer, in presence of a notar. And there's good reason for this law, it's designed to keep fraudulent claims from going to court, and to prevent abuse of the legal process.

Robosign staffers violate that law, they give false testimony about actions they have never done. That's perjury. Since it's impossible to retroactively investigate each and every document they signed, if it may be a single excemption from the general misconduct, ALL of those documents have to be seen as fraudulent. And consequentially, the foreclosures based on these documents are void, too. There's no other alternative, the law has to be upheld!

Posted by: Gray62 | October 2, 2010 6:03 AM | Report abuse

It’s a hard rain's gonna fall. The United States has the best people on earth. A nation of honest, brave and industrious immigrants who just want to live their lives. Some of them got sold a bill of goods and a mortgage that they could not afford by other folks who were motivated by greed. Ironically the greedy are still making money, only now it’s by removing people from their homes. However in their haste to make money faster the greedy have circumvented the legal system and they are about to be exposed. It’s a hard rain's gonna fall. Kenneth W. Gronbach

Posted by: Anonymous | October 2, 2010 10:09 AM | Report abuse

FORECLOSURES via deceptive and fraudulent proceedings enables repetitive, and illegalproperty flipping; it enables lenders to falsify IRS form 1099-A’’s; it enables unscrupulous foreclosure mill lawyers (especially because of judges who purposefully abet deceit) to deceptively hold auctions and make insider bids to acquire those properties; blightedneighborhoods. Fraudulent foreclosures ensure the success of FABRICATED BANKRUPTCY COURT ‘Lift Stay motions’ and false ‘Proof of Claims’. Foreclosure via fraud is the reason for illegitimate homelessness and underhanded evictions, unjustified IRS tax bills due to false 1099-A's, and unfair “Deficiency Judgments.” Ironically, some people who express their anger at “deadbeats” appear to be more acceptable about the manifest fraud and criminal activity being carried out by people with credentials to practice law. Equally ironic is the reality that some people pretending to be annoyed about "deadbeats”are the actual people who are participating in real estate racketeering –fully sanctioned by the majority of courts, especially Bankruptcy Courts!
http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/

Posted by: lawgrace | October 2, 2010 3:25 PM | Report abuse

FORECLOSURES via deceptive and fraudulent proceedings enables repetitive, and illegal property flipping; it enables lenders to falsify IRS form 1099-A’’s; it enables unscrupulous foreclosure mill lawyers (especially because of judges who purposefully abet deceit) to deceptively hold auctions and make insider bids to acquire those properties; blighted neighborhoods. Fraudulent foreclosures ensure the success of FABRICATED BANKRUPTCY COURT ‘Lift Stay motions’ and false ‘Proof of Claims’. Foreclosure via fraud is the reason for illegitimate homelessness and underhanded evictions, unjustified IRS tax bills due to false 1099-A's, and unfair “Deficiency Judgments.” Ironically, some people who express their anger at “deadbeats” appear to be more acceptable about the manifest fraud and criminal activity being carried out by people with credentials to practice law. Equally ironic is the reality that some people pretending to be annoyed about "deadbeats”are the actual people who are participating in real estate racketeering –fully sanctioned by the majority of courts, especially Bankruptcy Courts!
http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/

Posted by: lawgrace | October 2, 2010 3:27 PM | Report abuse

It’s a hard rain's gonna fall. The United States has the best people on earth. A nation of honest, brave and industrious immigrants who just want to live their lives. Some of them got sold a bill of goods and a mortgage that they could not afford by other folks who were motivated by greed. Ironically the greedy are still making money, only now it’s by removing people from their homes. However in their haste to make money faster the greedy have circumvented the legal system and they are about to be exposed. It’s a hard rain's gonna fall.

Kenneth W. Gronbach

Posted by: KennethWGronbach | October 2, 2010 4:03 PM | Report abuse

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