The 2012 National Mortgage Settlement (NMS) on Foreclosure Fraud and Mortgage Servicing rose up from the 2008 Financial Collapse. The settlement addressed: illegal servicing practices; wrongful foreclosures; fraudulent foreclosure documentation; robo-signing; improper affidavits; forced placed insurances; and servicing abuses during the Housing Crash. Also known as the “50 State Attorney General Settlement”, it culminated as “49” (minus Oklahoma)… against five of the largest Mortgage Servicers: Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally/GMAC. It has been recorded that 2 million American Families lost their homes between 2008–2011 …to became eligible for the $26 Billion payout… which netted about $1,500–$2,000 per borrower —an insult to the injury.
Tom John Miller, Attorney General of Iowa, first from 1978-90, then again from 1995-2023. He is distinguished as the longest serving State Attorney General in the American Justice System. They say he was the natural choice to chair the Mortgage-Servicing investigation. The state AGs referred to him as the “lead negotiator” as he simultaneously chaired the ‘Multi-State Coalition Investigating Foreclosure Servicing Abuses’. By November 2010, Miller was openly testifying before the U.S. Senate Banking Committee about systemic servicing abuses. He argued the crisis was bigger than isolated fraud cases.
In 2007 at the moment in time of Obama’s announcement of candidacy for President, there were only a handful of states involved. I know for certain, in real time, California, New York, Illinois and Massachusetts. In steps Eric Holder. After private practice, Holder began his career in the DC justice system with an Associate Judge of the Superior Court of DC appointment by Ronald Reagan. Barack Obama selected him as U.S. Attorney General. On his watch, Banks received overly broad immunity, and criminal accountability was limited. By September 2011 the “Occupy Wall Street” movement brought the voice of the people to bear upon the financial center as a root cause of American Greed. Matt Taibbi gave a powerful voice of Truth in writing for the “Rolling Stone Magazine” —the Bankers are “Too Big To Fail”; as we came to see that 1% of The Demos own the financial system, over against “The 99%”. That, even with The Settlement came another round of ‘Bailouts’ for the Banks (previously from George Bush, Jr.) …with not one single criminal indictment.
The $26 billion was not equally driven by all 49 AG officers. Significant is the work of Martha Coakley, AG Massachusetts. (Coakley had previously sued five major banks over deceptive foreclosure practices, influencing the negotiation climate). George Jepsen, AG Connecticut. (His concern for Ocwen led to the further advocacy for his constituents to pursue further suits against this servicer). Catherine Cortez Masto, AG Nevada (one of the States hardest hit. She continued pursuit even after the Settlement). Beau Biden, AG Delaware (advocated for wrongfully foreclosed Service members). Kamala Harris, AG California (Withdrew. Returned to secure $18 of the $26 Billion for California). Roy Cooper, AG North Carolina. Eric Schneiderman, AG New York. (His work grabbed me when negotiations broke down, he filed the “Martin Act” with the NY Supreme Court alleging that Bank of America, Countrywide and Bank of NY Mellon committed fraud is their fiduciary duties.) This same year, 2012 I made my 2nd trip to DC for the “Take Back The American Dream“ Conference when I saw that he was a part of the Lineup. Got a ‘photo op’, but the person I handed my phone to… completely blew it! But, OMG!
Where Did the $26 Billion Actually Go —is one of the most misunderstood parts of the settlement. Again, the crop of homeowners who met application submission proof of their homes taken by fraud received $1,500–$2,000… all while the equity exchanged shift in American’s Homeowner Wealth is being tallied at $17 Trillion Dollars.
The largest component of the Settlement consisted of: principal reductions, loan modifications, refinancing, short sales, and mortgage restructuring. In REAL TIME, participating in this leg of the injustice, I saw it as an extension of THIS GREAT AMERICAN FRAUD! While I was carry with me ALL DOCUMENTATION of the Fraudulent Bank Practices, millions of Homeowner were being called in by NACA the “Neighborhood Assistance Corporation of America”, who used Churches to call homeowners in by the thousands to “MODIFY their ‘bank oppressed’, troubled, burdened and distressed Homeowner Loans”. I KNEW that in most cases ORIGINAL LOAN DOCUMENTS with their signatures had been “packaged & sold”… over and over again! In so many cases, The ORIGINAL SIGNED documents —NO LONGER EXISTED.
I saw that NACA was now providing the Banks with a Whole NEW SET of freshly SIGNED Mortgage Loan Documents!!! And once again the DEMOS has been PERPETRATED. No RAPED —that Great American Pastime! Like Baseball. And Apple Pie.
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