Lehman Brothers RMBS Claim Protocol Reveals The Likely Theft Of 89,526 Homes

On December 29, 2014 the attached RMBS Claim Protocol was issued in the Lehman Brothers Bankruptcy ordering the sample auditing of loan collateral files for loans securitized by Lehman Brothers and its affiliates in roughly 250 securitized trusts. (See: RMBS Claim Protocol – Lehman Brothers Bankruptcy ). For anyone who has seen the movie “Goodfellas,” this court order is the equivalent of having to exhume and rebury the body of “Billy Batts.” Whoever lays the first shovel is going to be met with something rancid and foul. 

I located the database / spreadsheet of claims involving 94,568 loans in roughly 250 trust transactions serviced by Ocwen, Wells Fargo, Citimortgage, Chase, Nationstar, Aurora, and others. This database lists up to “12 Defects” found for each loan that includes a multitude of lending law violations, misrepresentations, inflated appraisals, falsely reported income, misrepresentations of debt obligations, failure to provide original notes, etc., etc., etc. It is a cesspool of fraud that reveals it wasn’t just the investors who were scammed, but clearly the borrowers were victimized in the scheme as well. There is no way around this fact. The data shows that out of the 94,568 claims, 89,526 loans have been “liquidated” which likely means foreclosed upon, while the remaining 5,042 loans remain “active.”

The database is very large and unfortunately I am unable to upload for this article, even if condensed. But here is a small example of what the Excel Spreadsheet looks like:

 

 

 

 

Soon after these statistics came to light, all parties, with urging from the court, agreed to settle. The Trustees and the Investors in these 250+ trusts took a cash settlement and walked away while the servicers marched on, foreclosing and harvesting these 89,526 properties with full knowledge of the fraud committed upon the borrowers, and the incurable defects and deficiencies in the loan files. 

 

Bill Paatalo

Private Investigator – OR PSID# 49411

bill.bpia@gmail.com