Office of the Attorney General o m

d. c
Economic Crimes Division u
r a
eF
UNFAIR, DECEPTIVE u r
l o s
AND UNCONSCIONABLE c
ACTSr e IN
Fo
FORECLOSURE
t o p CASES
. S
ww
Prepared by: June M. Clarkson, theresa b. Edwards and rene D. harrod

w
 Overview of Foreclosure Industry
o m
d. c
Florida Attorney General investigation
a u
r
50 State Multi-State TeamFInvestigation
r e
Law firms began withdrawing
su
documents c l o
Banks suspended r eforeclosures
Fo

t o p

. S
ww
w
 Delinquency & Foreclosure Rates 2006-2010
o m
d. c
a u
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Source: Oversight Panel Oversight Report, Examining the Consequences of Mortgage Irregularities for Financial Stability and Forec
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 The History of Mortgages in America
o m
Bankers used to take the
d. c
original note and
au
mortgage and secure it
F r
in the bank vault.
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Mortgage-Backed Trusts
o m
As the mortgage industry
d. c
grew, bankers began
au
securing the notes in
F r
mortgage-backed trusts
Trusts are a bundle of u re
5,000 notes secured by lo s
mortgages
e c
A bundle of notes may o r
p F
contain 5,000 notes and
t o
mortgages with a face
. S
value of $1.5 Billion

ww
w
 Sales & Servicing of Trusts
o m
These Trusts were
d. c
packaged as Residential
au
Mortgage-Backed
F r
Securities (“RMBS”) and
could be sold to u re
investors in bite-sized
lo s
pieces
e c
o r
The rules for the operation
of these RMBS trusts
p F
o
were set forth in
t
S
“Pooling and Servicing
.
w
Agreements”
w
w
 The Travels of a RMBS bundle
o m

d. c
Trust bundles travel from:
au
 The Lender
F r
 To the Depositor
u re
 To the Securities
Company lo s
To the Trustee e c


o r
p F
t o
. S
ww
w
 When it doesn’t work quite right . . .
o m
Sometimes a note or a mortgage gets lost. d . c
a u
F r
r e
su
c l o
r e
Fo
t o p
. S
w w
w
 When it doesn’t work quite right . . .
o m
Sometimes the document d. c
custodians are lax about au
their procedures. F r
That appears to be the
u re
situation here in Florida
lo s
as well as across the
e c
nation.
o r
p F
t o
. S
ww
w
 When it doesn’t work quite right . . .
o m
Sometimes there are just too many documentsd. c to keep
track of any single Note or Mortgage.au
F r
r e
su
c l o
r e
Fo
t o p
. S
w w
w
 When it doesn’t work quite right . . .
o m
Keep in mind these are d. c
some of the largest au
banks in the country . . . F r
losing ownership
u re
paperwork!!
lo s
e c
o r
p F
t o
. S
ww
w
 IMPORTANT: The Key
o m
d. c
au
The key to the problems
F r
regarding foreclosures of
mortgages are the u re
ASSIGNMENTS of lo s
mortgage. e c
o r
p F
t o
. S
ww
w
 IMPORTANT: The Key
o m
d. c
u
a
r
Assignments of
F
e
mortgage operate to
rtransfer ownership
su
clo of the mortgage
from one bank to
re
Fo another.

t o p You sue on the note

but foreclose under
. S the mortgage.
ww 
w
 What if there is no valid assignment?
o m
A valid assignment transfers d. c
the ownership of the
au
mortgage and allows the
F r
assignee of the assignment
to begin a foreclosure u re
action.
lo s
Only the holder/owner of the
e c
note and mortgage can
o r
p F
institute a foreclosure
action if the homeowner
t o
stops making their
. S
mortgage payments.
ww
w
 o m
If the d. c
mortgage is au
not F r
properly u re
assigned…. lo s
e c
o r
the result is
p F
chaos. to
. S
ww
w
 The Paperwork in Securitization Process
o m
d. c
a u
F r
u re
lo s
e c
o r
Assignments p F
t o
. S
ww
w
Source: Oversight Panel Oversight Report, Examining the Consequences of Mortgage Irregularities for Financial Stability and Forec
 Sample Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Execution of the Assignments
o m
The Banks d. c
au
appointed
F r
individuals to
execute the u re
lo s
assignments c
re

Fo
t o p
. S
ww
w
 o m
d. c
au
Example F r
Appointments
through a u re
Limited Power
lo s
of Attorney for
e c
executing
Assignments o r
p F
t o
. S
ww
w
 Execution of the Assignments
o m
Many individuals who executed the d
. c
u
a the
assignments knew nothing about
F r
documents they were signing, r e these
individuals are referredsto u as “robo-signers”
c l o
r e
Fo
t o p
. S
w w
w
 Execution of the Assignments
o m
Individuals included bank employees, d. c
law
u
a and
firm employees (lawyers, paralegals,
F r
even secretaries) and document r e preparation
and processing company suemployees
Thousands and thousands c l o and thousands of
r e
assignments . . .osigned weekly.
p F
t o
. S
ww
w
Fraudulent Practices come in all shapes and sizes
o m
d. c
Robo-signers u
r a
Fake witnesses F
u re
Fake notaries lo s
e c
Fake documents o r
p F
False affidavits
t o
. S

ww

w
 Problems with Assignments
o m
. c
Not executed by the authorized d person
a u
Signatures not witnessed properly F r by
the “witnesses” r e
su
Signatures not properly
c l o notarized by a
notary r e
Fo
t o p
. S
w w
w
 Forgeries in Assignments
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries in Assignments
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries in Assignments
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries in Assignments
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries in Assignments
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Vice President Linda Green Signature
o m
. c
Sample One
 Sample Two ud


r a
eF
u r
lo s
e c
o r
p F
t o
. S
ww
w
 Who is the Real Linda Green?
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Linda Green o m
d. c
ua
F r
Linda Green’s “signature” r e appears on


su
hundreds oflothousands
of mortgage e cassignments.
o r
p F 


t o as an officer of dozens of
She is listed
. S and mortgage companies.
banks
w w
w
A Few of Linda Green’s Many Job Titles
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Scott Anderson, Ocwen employee
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries by Mortgage Servicers
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 A Mortgage Servicing Company
o m
Mortgage servicing companies help d
. c
banks
u
adocuments
obtain foreclosure by preparing
F r
r e
necessary to facilitate the foreclosure in
Court. su
These companies hire c l o
robo-signers who
r
execute the documents
e by the tens of
Fo
thousands per p month.
t o
. S
w w
w
 Mortgage Servicing Companies
o m
DocX had offices employing dozens of workers d. c
a u
producing thousands of fraudulent assignments.
Lender Processing Services produced F r
2,000
r e
assignments each working day.
su
l o
GMAC (including its first famous
c
robo-signer, Jeffrey
Stephan) also produces e 2,000 assignments every
day. o r
F
Nationwide TitlepClearing out of the Tampa area also
t
produces 2,000o assignments every day.
. S

w w
w
 Forgeries in Other Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Forgeries in Other Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Examples of Bogus Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Examples of Bogus Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Examples of Bogus Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Examples of Bogus Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Examples of Bogus Documents
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Corrective Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Filing Lis Pendens Without Standing
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Assignments After Lis Pendens
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Filing Lis Pendens Without Standing
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Assignments After Lis Pendens
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Affidavit of Amounts Due
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Affidavit of Amounts Due
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Withdrawal of Affidavits of Amounts Due
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Withdrawal of Affidavits of Amounts Due
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Sample Notice of Lis Pendens
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Stamped signature on Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Stamped Signatures
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Stamped Signatures
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Affidavit of Correction due to assignment of a
mortgage that had been fully paid (St. Lucie Co.) m
. co
u d
r a
F
u re
lo s
e c
o r
p F
t o
. S
ww
w
Affidavit of Correction due to an assignment of mortgage
that had been fully paid. (Palm Beach Co.)

o m
d. c
a u
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Affidavits of Correction due assignments of mortgage that had
been fully paid (Broward Co. and Palm Beach Co.)
o m
d. c
a u
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 $164k Question
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
And you thought your mortgage was high?
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Assignment for Defunct Assignee
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
American Brokers Conduit BANKRUPT 8/7/2007 m
. co
u d
r a
F
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Assignment by a defunct institution
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
IndyMac, out of business CLOSED July 2008
o m
d. c
a u
F r
Federal regulators seize crippled
r e IndyMac Bank
Doors will reopen Monday. su
A run on the Pasadena thrift ends in one of the biggest financial failures ever.

c l
July o 12, 2008
July 12, 2008|Kathy M. Kristof and Andrea Chang | Times Staff Writers

r e
The federal government took control of Pasadena-based IndyMac Bank on

Fo
Friday in what regulators called the second-largest bank failure in U.S.
history.
***
t o p
. S
The bank's 33 branches will be closed over the weekend, but the Federal
Deposit Insurance Corp. will reopen the bank on Monday as IndyMac
w
Federal Bank, said the Office of Thrift Supervision in Washington.
w
w
 Assignment for Defunct Assignee
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Lehman Brothers
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Notary Issues
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Impossible Notaries- Stamps are only good for
four years in Florida
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Impossible Notaries
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Impossible Notaries
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Sworn Testimony of Tammie Lou Kapusta
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Testimony of Tammie Lou Kapusta,
former employee of Law Offices of David J. Stern, P.A.
o m
Q Would these notaries be there watching her [Cheryl

d . c
Samons] as
she signed?
a u
A No. F r
e


u r
Q She would just sit there and sign stacks of them?


A Correct. As far as notaries go ino



l s
the firm I don't think any notary
actually used their own notary c
stamp. The team used them.
Q There were just stampso
 r e
around?
A Yes.

p F
Q And you actuallyt osaw that?


. S


w w
A I was part of that.

w
 Sample Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Testimony of Tammie Lou Kapusta,
former employee of Law Offices of David J. Stern, P.A.
o m
Q So this was an assignment signing table?


d. c
A Correct. Assignments or Affidavit A's that she was signing.


a u
Q What's an Affidavit A?


F r
re
A The indebtedness affidavit.


Q Okay.


su
A I think that's all Cheryl signed for. I think Beth signed for the rest. There's your Exhibit
lo


E's. We had different exhibits. That's how they signed them. When Cheryl was out of the

e c
office Tammie would sign them or Beth would go sign them.

o r
Q Beth would sign but it would say Cheryl Samons?


A Correct.


p F


t o
Q And Beth would be the signer?
A Correct.


.
Q Or Tammie Sweat? S
w


A Right.


w w
 Testimony of Kelly Scott,
former employee of Law Offices of David J. Stern, P.A.
o m
d. c
a u
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Testimony of Kelly Scott,
former employee of Law Offices of David J. Stern, P.A.
o m


d. c
Q. Other than Cheryl going around twice a day to sign the documents that she was reading, was there

A.
anyone else that did that, as well?

a u
Only Cheryl. And only when Cheryl was out of town, that she would go on vacation, there was someone
r
else that would sign on her behalf. Who was it? I really don't know.
F
re


Q. But they signed Cheryl's name?

A. Yes.
su
lo


Q. And when you said those were the papers that were up on the long table on the four floors, what types
c


of documents were those?

A.

r e
Motions for Summary Judgment and Assignments of Mortgage.


Q.
***

Fo
But whatever was on those long tables, nobody was reading? They were just putting their names on

A.
them?

t o p
Yes, they were just putting their names.



. S
Q. Yes, there was no one reading them?
A.


w
Yes, there was no reading them.

w
w
 Cheryl Samons “signature”
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Cheryl Samons “signature”
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Cheryl Samons “signature”
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Cheryl Samons “signature”
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Cheryl Samons “signature”
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Sample Assignment of Mortgage
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Misuse of Falsified Assignments
o m
Improper assignments were recorded in the county d . c land
records offices u
a Court in
Improper assignments were submitted torthe
support of foreclosure motions e F
Improper assignments were accepted u r by the Court as valid
assignments that substantiated
l o s the foreclosure
Homeowners were foreclosed
e c upon based upon falsified
assignments, by a bank
the note. o r who was not the true holder of

p F
If the foreclosure judgment is obtained by a bank that does
lawsuit by S
o
not hold the tnote, then the homeowner risks a second
the real note holder, and possibly a having a
w .
second judgment against them on one property.

w w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Notices to Court of Improper Affidavits
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
Notices to Court of Improper Affidavits
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Real Estate in Florida (in pictures)
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Real Estate in Florida (in pictures)
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Real Estate in Florida (in pictures)
o m
d. c
au
F r
u re
lo s
e c
o r
p F
t o
. S
ww
w
 Solutions for Foreclosures in Florida???
o m
Any solution must include: d. c
u a
 Assuring the integrity to the judicial foreclosure process
Documents submitted must be true and F r
accurate
 r e and form
Affidavits must be proper in substance
Assignments must be properly s u and accurate
executed

c l o
Due process rights to the foreclosed homeowners

r e
Proper service of process on the homeowner

F o
Proper standing to sue by the plaintiff Bank




Foreclosuresto
p
Substantive review of paperwork prior to foreclosure
will have to go forward and there will be many
. S year, but they need to done within the law.
more next


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