January 7, 2009

Pending home sales plunge to record low - Real estate- msnbc.com

Pending home sales plunge to record low - Real estate- msnbc.com


Press Release Nationwide Loan Services/ www.borrowerhotline.com
Rescission time for Homeowners

November 10th 2008 Regulatory criteria from HUD and compliance with the SEC are two very distinct and different sets of regulations that are at Odds. The newest theory is great news for homeowners struggling who need something other than government promises that are yet to be seen. The recent discovery focuses on the wide gap and distance separating Wall Street and Main Street. Therein is the logical argument for some of lenders whom remain unwilling to capitulate to borrower demands for relief in lieu of foreclosure.

According to recent score cards being tallied by house and senate members, nothing is happening with regards to the national mortgage aid plan. The news of an exact cause for the meltdown is timely given nothing is anticipated to be resolved until President-elect Barack Obama takes office on Jan. 20 next year. The president elect will then pick up the pieces while pursuing policies for administering the rescue program that are likely to be more closely aligned with his Democratic allies in Congress.

Random predatory lending over recent years may or may have not have occurred by accident or malice. Nor is there evidence the meltdown was caused by complete disregard for federal regulatory guidelines such as the Real Estate Settlement and Procedures Act. What is important to law makers and the private sector is how Wall Street fits in to the workout and why lenders are not necessarily where a homeowner will find the appropriate elixir.

Either way, consumers expect a sincere effort from the lender of record where the struggle continues to remain in one’s home. That is where the problem exists from most homeowners, according to Maher Soliman, an industry analyst and expert in the field. Experts are entitled to testify at trial because of their special knowledge in a particular field. This entitles him or her to offer opinion on the meaning of facts versus non-expert witnesses who are only permitted to testify about facts they observed and not their opinions about these facts.

According to Soliman, “I changed my views and no longer see the problem as solely due to collective recklessness and unwarranted lender predatory acts”. This news arrives after many legislatures’ grow concerned and are feeling hopeless while their constituency of homeowner’s come to grips with the high level of lender inertia and institutional apathy towards the problem.

The SEC is very specific in accordance with each offering and what roles the parties play in securitizing these loans. The level of detail and scrutiny under SEC guidelines is strict, though it varies from one loan servicing “pool” agreement to another. See the securities filing with the SEC - Periodic Distribution Reports by Asset-Backed Issuers, Form 10-D, 424B5 Registrations Prospectus -- Rule 424(b)(5)

That being said, their need to remain compliant with regards to shareholders and SEC disclosures requirements is a reason why securities sponsors are focused on other things rather than the regulatory protections offered under RESPA and TILA. RESPA protects consumers and requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.

Mortgages are bought and sold on
Wall Street all the time and that is nothing new

The borrower’s we talk to do not even know who their lender is therefore have no idea they have a disclosure problem. According to Soliman, “loan servicing agents often cannot even tell you who the lender of record is and that is a disclosure violation should the borrower ask the question”. The loans are assigned on a regular basis away from one party to the next. Therein is another problem with regards to trustee’s where multiple transfers occur in difficult times due to bankruptcy of the original lender and or borrower delinquency and foreclosure.

An immediate failure to assign any interest or disclose of such has no bearing on Wall Street but is a violation of federal housing laws. They are not in compliance due to Mortgage Electronic Registry Systems (MERS) and that’s just the tip of the iceberg as for your conflict.

Another problem exit’s where the trustees and beneficiary of record are working against the borrower with complete avoidance of the repurchase provisions show in the SEC master serving and filing documents. A UCC filing requirement under Rule 9 does not allow for a bilateral contract to compromise a third party unrelated to the contract.

Trustees and “beny” must record intervening assignments before the fact and properly disclose its transfer upon evidencing a recording. Therefore all conveyances from MERS will potentially fail and are voidable under a court ruling. Most non-agency securities sponsors show the lender at close is an undisclosed bank and the guarantor on the loan. The guarantor and the sponsors have no interest in the loans pending the mandate to repurchase the loan.

They cannot allow servicers to represent the lender where they only share a name or otherwise you have collusion. Improper disclosure issues are what allow a consumer to file suit for a rescission. With little effort NLS claims it can show the lender is not the beneficiary of record or the lender as many think. This revelation now brings into play the unlawfulness of a combination or affiliated business arrangement. RESPA regulatory requirements apply to transactions that may involve a loan on residential real estate. That is according to Jonathan A. Goodman, attorney for Frascona, Joiner, Goodman and Greenstein, P.C., Boulder, Colorado. The lawyer’s web site states it as follows “RESPA generally prohibits payment of referral fees, unearned fees or kickbacks, as well as the splitting or sharing of fees or charges made or received for providing "real estate settlement services."


What this all comes down to is the mortgage backed securities structure used in a private placement violates a borrower rights under the loan master servicing and pooling agreements. It’s actually a consumer advantage for arguments sake disguised as a regulatory nightmare. But in the detail and legalese that looks like it was written in written in Greek is valuable substance for attorneys to make a case for relief under the threat of a lawsuit seeking to cancel their loan.

Again, what is important to know is the quagmire known as the mortgage mess consists of a card game with poker players who are highly exposed. These public companies, investment bankers and high net worth private investors are “dealing” and “wagering” under the watchful eye of the SEC. Soliman uses this example to point out the following

“now try to imagine high stakes game of poker being under strict rules of the players . . .no cheating! The players are the SEC and local town authority is the HUD. . . In other words the game is wrongful but none the less, played by the rules and behind the city's back!

All of this is something the government can’t get a handle on or does not want to become involved in. NLS is an authority on the subject of wrongful foreclosure and has received growing press coverage by national news organizations (Newsweek, CNN and MSNBC) over the internet.

It’s harder now to convince people of their rights with all the internet sites fighting for business in this new economy called stop foreclosure now, according to Soliman. NLS was warning of the coming meltdown and doing this work long before the market collapsed and was viewed then as a hardliner and critic dangerous to Mortgage Banking.

According to Soliman, “borrower loans that are in default or that are going into foreclosure continue without a fight. Borrowers need to get up top speed and realize that these loans can be rescinded”.

NLS staff offers 25 years in the biz and have served as industry analysts, bulk loan traders and purchase and sale underwriters on Wall Street. NLS have helped attorneys as expert witnesses and their clients on wrongful foreclosure matters for years. Their involvement includes many larger high profile cases such (particpating or study close up) of the SEC case for the AARP Vs Lehman Brothers; Pinn Fund USA Vs Government and cases such as CitiFinancial Corp which settled for $300 million after purchasing Associates and after only one year.

This Web site is specifically designed to review foreclosures and lender malpractice cases. NLS Nationwide Loan Services is a mortgage foreclosure legal research advisor to counsel.
You can file your claim with NLS who will opine and reccomend to counsel the merit for seeking a rescission. They also can provide an attorney to work with you.

Maher Soliman
Borrower Hotline

mortgagee, trustee, beneficiary

2923.5. (a) (1) A mortgagee, trustee, beneficiary, or authorized
agent may not file a notice of default pursuant to Section 2924 until
30 days after contact is made as required by paragraph (2) or 30
days after satisfying the due diligence requirements as described in
subdivision (g).

Expert Attorney Limited Engagement Assistance


NATIONWIDE LOAN SERVICING (Expert) and ___________________________ (.Client.) hereby agrees that Expert will provide expert services to Client on the terms set forth below.

1. CONDITIONS. This Agreement will not take effect, and Expert will have no obligation to provide expert services, until Client returns a signed copy of this Agreement and pays the initial deposit called for under Paragraph 4.
2. SCOPE OF SERVICES. Client hires Expert to provide expert services in the following matter:________________________________________________[Describe matter]. Expert will provide those expert services reasonably required to will not represent Client. Expert will take reasonable steps to keep Client informed of progress and to respond to Client’s inquiries. If a court action is filed, Expert will assist Client through trial and post trial motions. This Agreement does not cover will not representation on appeal or in execution proceedings after judgment. Separate arrangements must be agreed to for those services. Services in any matter not described above will require a separate written agreement.
3. CLIENT’S DUTIES. Client agrees to be truthful with Expert, to cooperate, to keep Expert informed of any information or developments which may come to Clients attention, to abide by this Agreement, to pay Expert’s bills on time, and to keep Expert advised of Client’s address, telephone number and whereabouts. Client will assist Expert in providing necessary information and documents and will appear when necessary at proceedings.
4. DEPOSIT. Client agrees to pay Expert an initial deposit of $________ by ________________. The hourly charges will be charged against the deposit. The initial deposit, as well as any future deposit, will be held in a trust account. Client authorizes Expert to use that fund to pay the fees and other charges as they are incurred. Payments from the fund will be made upon remittance to client of a billing statement. Client acknowledges that the deposit is not an estimate of total fees and costs, but merely an advance for security. Whenever the deposit is exhausted, Expert reserves the right to demand further deposits, each up to a maximum of $____________ before a trial or arbitration date is set. Once a trial or arbitration date is set, Client shall pay all sums then owing and deposit the Experts fees estimated to be incurred in preparing for and completing the trial or arbitration, as well as the jury fees or arbitration fees, expert witness fees and other costs likely to be assessed. Those sums may exceed the maximum deposit. Client agrees to pay all deposits after the initial deposit within _____ days of Experts demand. Unless otherwise agreed in writing, any unused deposit at the conclusion of Experts services will be refunded.
5. EXPERT FEES AND BILLING PRACTICES. Client agrees to pay by the hour at Expert’s prevailing rates for all time spent on Client’s matter by Expert’s expert personnel. Current hourly rates for expert personnel are as follows:
Senior Expert partners /hour
Expert Partners /hour
Associates /hour
Para Legal /hour
Law clerks /hour
The rates on this schedule are subject to change on 30 days. Written notice to Client. If Client declines to pay increased rates, Expert will have the right to withdraw as Expert for Client. The time charged will include the time Expert spends on telephone calls relating to Clients matter, including calls with Client, witnesses, opposing counsel or court personnel. The expert personnel assigned to Clients matter may confer among themselves about the matter, as required and appropriate. When they do confer, each person will charge for the time expended, as long as the work done is reasonably necessary and not duplicative. Likewise, if more than one of the expert personnel attends a meeting, court hearing or other proceeding, each will charge for the time spent. Expert will charge for waiting time in court and elsewhere and for travel time, both local and out of town. Time is charged in minimum units of one-tenth (. 1) of an hour.
The following have higher minimum charges:
Telephone calls:
(a) Expert will incur various costs and expenses in performing expert services under this Agreement. Client agrees to pay for all costs, disbursements and expenses in addition to the hourly fees. The costs and expenses commonly include, service of process charges, filing fees, court and deposition reporters' fees, jury fees, notary fees, deposition costs, long distance telephone charges, messenger and other delivery fees, postage, photocopying and other reproduction costs, travel costs including parking, mileage, transportation, meals and hotel costs, investigation expenses, consultants' fees, expert witness, professional, mediator, arbitrator and/or special master fees and other similar items. Except for the items listed below, all costs and expenses will be charged at Expert's cost. In-office photocopying: /page Facsimile charges: /page Mileage: /mile
(b) Out of town travel. Client agrees to pay transportation, meals, lodging and all other costs of any necessary out-of-town travel by Expert’s personnel. Client will also be charged the hourly rates for the time expert personnel spend traveling.
(c) Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants or investigators. Client agrees to pay such fees and charges. Expert will select any expert witnesses, consultants or investigators to be hired, and Client will be informed of persons chosen and their charges. Additionally, Client understands that if the matter proceeds to court action or arbitration, Client may be required to pay fees and/or costs to other parties in the action. Any such payment will be entirely the responsibility of Client.
7. BILLING STATEMENTS. Expert will send Client periodic statements for fees and costs incurred. Each statement will be payable within ________ days of its mailing date. Client may request a statement at intervals of no less than 30 days. If Client so requests, Expert will provide one within 10 days. The statements shall include the amount, rate, basis of calculation or other method of determination of the fees and costs, which costs will be clearly identified by item and amount.
8. LIEN. Client hereby grants Expert a lien on any and all claims or causes of action that are the subject of the will not representation under this Agreement. The lien will be for any sums owing to Expert at the conclusion of services performed. The lien will attach to any recovery Client may obtain, whether by arbitration award, judgment, settlement or otherwise. The effect of such a lien is that Expert may be able to compel payment of fees and costs from any such funds recovered on behalf of Client even if Expert has been discharged before the end of the case. Because a lien may affect Clients property rights, Client may seek the advice of an independent lawyer of Clients choice before agreeing to such a lien. By initialing this paragraph, Client will not represent s and agrees that Client has had a reasonable opportunity to consult such an independent lawyer and whether or not Client has chosen to consult such an independent lawyer. Client agrees that Expert will have a lien as specified above.

______ (Client Initial Here) ______ (Expert Initial Here)

9. DISCHARGE ANDWITHDRAWAL. Client may discharge Expert at any time. Expert may withdraw with Clients consent or for good cause. Good cause includes Client’s breach of this Agreement, refusal to cooperate or to follow Experts advice on a material matter or any fact or circumstance that would render Experts continuing will not representation unlawful or unethical. When Experts services conclude, all unpaid charges will immediately become due and payable. After services conclude, Expert will, upon Clients request, deliver Clients file and property in Experts possession unless subject to the lien provided in Paragraph 8 above, whether or not Client has paid for all services.
10. DISCLAIMER OF GUARANTEE AND ESTIMATES. Nothing in this Agreement and nothing in Experts statements to Client will be construed as a promise or guarantee about the outcome of the matter. Expert makes no such promises or guarantees. Expert’s comments about the outcome of the matter are expressions of opinion only. Any estimate of fees given by Expert shall not be a guarantee. Actual fees may vary from estimates given.
11. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the properties.
12. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY. If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.
13. MODIFICATION BY SUBSEQUENT AGREEMENT. This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them, or an oral agreement only to the extent that the parties carry it out.
14. EFFECTIVE DATE. This Agreement will govern all expert services performed by Expert on behalf of Client commencing with the date Expert first performed services. The date at the beginning of this Agreement is for reference only. Even if this Agreement does not take effect, Client will be obligated to pay Expert the reasonable value of any services Expert may have performed for Client.


DATED: _________________________






DATED: _________________________

Nationwide Loan Servicing

Brenda Michelson

Reviewing SEC Filings: Freemont

Mortgage Loan Sale and Assignment Agreement
(filed as an exhibit to Form 8-K on 2006-07-14)

On March 7, 2007 Fremont General Corporation ("FGC"), its wholly-owned industrial bank, Fremont Investment & Loan and Fremont General Credit Corporation, a wholly-owned subsidiary of FGC, have consented to the terms of a Cease and Desist Order issued by the Federal Deposit Insurance Corporation without admitting to the allegations contained in such order. The order calls, among other things, for the FGC to make a variety of changes in its sub-prime residential loan origination business and also calls for certain changes in its commercial real estate lending business.

The registrant knows of no other material pending legal proceedings involving the Trust and all parties related to such Trust, other than routine litigation incidental to the duties of those respective parties.

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions.
Information required by Item 1119 was provided previously in a prospectus timely filed pursuant to Rule 424 promulgated under the Securities Act of 1933, under the same Central Index Key (CIK) code as this annual report on Form 10-K. No material changes to such information have occurred since the initial Rule 424 filing.

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.
The assessment of compliance for Wilshire Credit Corporation (“Wilshire”) has disclosed the following material noncompliance with servicing criterion 1122(d)(4)(iv), applicable to Wilshire during the year ended December 31, 2006.

On one of the forty-five loan payoffs selected for testing, Wilshire calculated the prepayment charge in accordance with the related mortgage note, but transposed the numbers when entering the charge into its system, resulting in an overcharge to the borrower. Such assessment further states that this error has been corrected and the overcharge has been refunded to the borrower.

foreclosure notices filed against California homeowners

The number of foreclosure notices filed against California homeowners has reached its highest level in more than fifteen years. According to real estate information service DataQuick Information Systems, lending institutions sent homeowners 81,550 default notices in the last quarter of 2007, up 12.4 percent from the previous quarter and up 114.6 percent from fourth-quarter 2006.
In the past, most people who lost their homes to foreclose did so because they were unemployed or suffered unexpected medical expenses caused by a catastrophic illness. But the subprime mortgage crisis has changed all that, according to John Taylor, president of the National Community Reinvestment Coalition. Seven out of ten people foreclosing on their homes are healthy and gainfully employed; they simply cannot afford to make their monthly payments.
The only way to stop foreclosure is to declare Bankruptcy. 11 USC 1301-1330. Foreclosure can be stayed if you are a member of the armed services under the Servicemembers Civil Relief Act (SCRA) (formerly Soldiers and Sailors Civil Relief Act (SSCRA) (50 App. U.S.C. 501-596)).
In California 99% of foreclosures are non-judicial, that is, there is no need for the mortgage company to go to court to recover from a borrower when the borrower does not pay their debt in accordance with the mortgage agreement. In these cases there is a "power of sale" clause in the deed of trust or mortgage that pre-authorizes the sale of the property to pay off the balance of the loan when the loan is in default. If the deed of trust or mortgage contains a power of sale clause that specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure must conform to California Civil Code sec. 2920-2924:
The Trustee must record a "Notice of Default" (NOD) in the county where the property is located. Recording the NOD commences the three-month "reinstatement period" in which the borrower may cure the default by paying all delinquent payments and late charges, plus Trustees' fees and expenses
The Trustee must mail the borrower a copy of the NOD within 10 days of recording it.
After the three-month reinstatement period the Trustee can schedule a sale if:
The Trustee publishes a "Notice of Trustee's Sale" (NOTS) in a newspaper of general circulation in the county where the property is located. The NOTS must be published once a week for three consecutive weeks over a 20-day period.
Twenty days before the sale the NOTS must be mailed via registered or certified mail to the borrower.
Fourteen days before the sale the NOTS must be recorded in the county recorder's office.
The NOTS must be posted for at least 20 days in at least one public place in the city or judicial district or county of the sale.
The NOTS must be posted for at least 20 days in a conspicuous place on the property, on the front door if the property is a single-family residence.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.
Judicial foreclosure is used when no power of sale is present in the mortgage or deed of trust. The lender must file a lawsuit and obtain a court order to foreclose. Lenders using judicial foreclosure may seek a deficiency judgment, that is, if the borrower owes more than the house is worth the lender may obtain a judgment for the difference between the amount owed and the selling price of the house. Under certain circumstances, the borrower may have up to one year after the property is auctioned to redeem the property, that is, to reclaim the property after paying the total amount of the mortgage plus costs and fees.
Because of the public nature of foreclosures, anyone can access foreclosure listings. Armed with the owner's name and address, scammers can take advantage of a desperate owner. To encourage fair dealing in the rendition of foreclosure services, the California Legislature enacted the Mortgage Foreclosure Consultants Act, Civil Code 2945, which requires that foreclosure consultant service agreements be in writing, permits the rescission of such contracts, and prohibits representations that tend to mislead. Be on the lookout for these common foreclosure scams:
A party offers to buy your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little notice.
Scams involve paying large sums of money to some sort of "foreclosure prevention service." These services usually offer counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.
Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization listed below:
HOPE 24 Hour HotLine1-888-995-HOPEHomeownership Preservation Foundation, an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners.http://www.995hope.org/
State of California Consumer Home Mortgage Informationhttp://www.yourhome.ca.gov/mortgage-help.shtml
Local Housing Counseling Agencies
Home Loan Counseling Center of Sacramento 2003 Howe Avenue, Suite 100Sacramento, CA 95825(916) 646-2005
NeighborWorks HomeOwnership Center 2400 Alhambra BoulevardSacramento, CA 95817(916) 452-5356, ext. 229
ByDesign Financial Solutions4636 Watt Avenue, 2nd FloorNorth Highlands, CA 95660(800) 750-2227
Senior Legal Hotline - Legal Services of Northern California444 North Third Street, Suite 312Sacramento, CA 95814(916) 551-2140
Acorn Housing Corp.4433 Florin Road #830Sacramento, CA 95823(916) 451-9659
Sacramento Mutual Housing Association3451 Fifth AvenueSacramento, CA 95817(916) 453-8400, ext. 43
Other Web Resources
U.S. Department of Housing and Urban Development Links:
Avoiding Foreclosure(En Espanol)
How To Avoid Foreclosure Brochure (pdf)
Help For Homeowners Facing The Loss Of Their Home(En Espanol)
Veterans Administration Link:(VA) - Trouble Making Payments
Freddie Mac (FHLMC) Link:What if You Cannot Pay Your Mortgage? (En Espanol)