A SECURITIZATION AUDIT WON’T FIND THE VAMPIRE IN YOUR MORTGAGE
Bob Hurt and Richard Kahn engage in dialogue about value of Kahn’s securitization audit to Matulka v. M&T Bank (foreclosure case). The judge tossed Matulka’s audit report, saying “the “report” borders on impertinence, it has no legal significance…” See why Kahn thinks the court opinion doesn’t diminish the value of his work. See why Hurt believes securitization audits are ultimately worthless, and that only a comprehensive mortgage fraud examination will find the “VAMPIRE” in your mortgage.
But a Comprehensive Mortgage Fraud Examination Will Turn on the Sunlight
But a Comprehensive Mortgage Fraud Examination Will Turn on the Sunshine
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A Securitization Audit Won’t Find the Vampire in Your Mortgage
http://www.scribd.com/doc/172350719/Find-the-Vampire-in-Your-Mortgage-Heed-Matulka (this article) http://www.scribd.com/doc/172349825/Find-the-Vampire-in-Your-Mortgage-Heed-Matulka (portfolio article with case documents) http://www.scribd.com/doc/171808087/Matulka-v-M-and-T-Bank-Complaint-Motion-to-StrikeOrder-ned-8-12-cv-00237-0 (portfolio of case documents)
Securitization auditor and expert witness Richard Kahn responds to my scribd.com posting of the Matulka v. M&T Bank opinion in which the judge expressed utter disdain for the audits (including Richard’s work) appended to the complaint. In that case a foreclosure victim’s estate and a relative attempted to stave off a foreclosure, and submitted the audit reports in an effort to convince the court that it should not allow the foreclosure. Richard responded with a phone call and some emails. We had a nice chat, and I said I would provide his elucidation as a preface to the case documents. Our discussion thread follows.
Richard Kahn wrote:
On 9/25/2013 1:25 AM Hiya Mr. Hurt. I agree whole heartedly with the vein of your commentary with one exception that I respectfully submit for your consideration. If the mortgage fraud investigator also includes securitization information of material toxicity in a questionable foreclosure transaction and is a bona-fide expert recognized as such in numerous courts, then the act of hiring an expert witness to work on a case is not frivilous. I've been in this business 35+ years. I welcome you to visit my web site. I testify several hours a week and the results are obviously worth the money spent because I continue to enjoy a busy practice, based predominantly in attorney clients. I don't advertise and I only accept cases that I can assess to have significant issues upon which to make a case. In many regards, the successful outcome is a good long term settlement that works. I welcome you to visit my web site. There are a handful of real experts out there, according to my friend Max Gardner and other attorneys I use. Check my credentials section as well if you please. Also check my O.A.R. where I give tips on spotting scamsters with my "symtoms of trickery". I guess you're referring to what April Charney calls the cottage industry of pretender experts. They are a scourge that negatively affects those of us with verifiable credentials and track records. :)
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Sincerely, Richard Kahn -------------
Bob Hurt responds:
29 September 2013 Dear Richard Kahn: The opinion in Nebraska USDC's Matulka v M&T Bank shows the uselessness of securitization audits in a foreclosure defense. Responding to a motion to strike, the judge unceremoniously struck your audit annexed to the complaint, then ordered the foreclosure. It's all there in black and white. http://www.scribd.com/doc/171808087/Matulka-v-M-and-T-Bank-Complaint-Motionto-Strike-Order-ned-8-12-cv-00237-0 The judge referred the court to these related comments by way of explanation (see page 10 of document 37). Defendants McCubbin and Kozeny & McCubbin filed a Joint Motion to Strike a “Forensic Lender Discovery Stage One -Trust Identified Loan Securitization Audit Report” prepared for Plaintiff by Forensic Professionals Group USA, Inc. (Filing No. 31 at CM/ECF p. 1; Filing No. 1 at CM/ECF pp. 22-64.) This “report” is attached to Plaintiff’s Complaint and sets forth, among other things, that there was a “fabricated foreclosure transaction.”6 (See, e.g., Filing No. 1 at CM/ECF p. 25.) Defendants McCubbin and Kozeny & McCubbin argue that this “report” presents impertinent and scandalous accusations, and it is immaterial to Plaintiff’s claims. (Filing No. 31.) The court will deny the Motion to Strike as moot in light of its decision to dismiss this matter. In the alternative, the Motion is denied because, while the “report” borders on impertinence, it has no legal significance and striking it would have no legal effect. See Fed. R. Civ. P. 12(f) (“The court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.”). Footnote 6 Another court presented with a similar “forensic mortgage analysis” noted the following: The second document is a “Certified Forensic Loan Audit” prepared by someone named D. Alex-Saunders. Mr./Ms. Alex-Saunders, for whom no contact information is provided, claims, variously, to be a “Senior Auditor: Home and
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Asset Ombudsman Program, International Environmental Association, 501(c)3,” “Senior ombudsman,” “Certified forensic auditor by National Association of Mortgage Underwriters,” “Associate of Global Association of Risk Professionals,” and the author of “Stop! Illegal Predatory Lending.” The Court is unfamiliar with these organizations (if they exist), but it is quite confident that there is no such thing as a “Certified Forensic Loan Audit” or a “certified forensic auditor.” In any event, the documents make no more sense than anything else in the Debtor’s papers and confirm the empty gimmickery of these types of claims. In re Norwood, No. 10–84443–PWB, 2010 WL 4642447, at *2 n.2 (Bankr. N.D. Ga. Oct. 25, 2010) (observing that the Federal Trade Commission has issued a “Consumer Alert” regarding “Forensic Mortgage Loan Audit Scams”). --------
Richard Kahn responds:
Hi. I understand. That is one case of many many hundreds and it was dismissed against the borrower before I had a chance to testify. Those borrowers had little idea how to bring a case and they detracted from a key expert by introducing my audit after another unnamed auditor that undermined the credibility. I was never called and it was news to me after the fact. I can't teach pro SE borrowers how to litigate. Those guys held out to be attorney Para legal a too. No rebuttal response was made. No attempt was made to allow my testimony because the case was lost without it and before the issue was raised for judicial consideration. There are no guarantees. In the meantime I don't recognize unchallenged opposing counsel attacks, it's expected. They are vehement and scathing but their conclusively allegation gone without consideration of cross examination rebuttal has to be taken for what it is. Thanks for your time and effort on the subject. I have many many law firm clients. Sometimes they win and sometimes they lose. A lose of this nature is not recognized as precedent to what I do. It's hard enough finding a true recognized expert in mortgage foreclosure fraud and securitization auditing. But to do so and then botch your case in the process is really a shame. Why waste the money is just one issue, but losing in such fashion is painful. In this case, a borrower is represented by an attorney who brings a case wherein the borrower has not standing to bring it and the borrower is deceased. To boot, they introduce evidence by a party claimed to be an expert in their allegations, that turns out to be completely false and misleading. They lose their case and in an effort to reestablish it they pay for an receive a real expert's work and expect the expert's credibility to carry the day, despite themselves. As judge's do in cases, the judge's order incorporates claims in the winning's side's case and to the novice it appears that the expert is smeared in the process. This lack of knowledge in bringing and litigating a
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case, then having a champion borrower's can look to as an expert get smeared in the process helps no one. Expert's are like mechanics, they do a job and do it well enough to be able to sustain it against all inquiries. What the person(s) that hire them do with the work has nothing to do with the mechanic. If they wreck it, sell it for more, win an auction or whatever, all the expert did was do the work and can testify, verify and sustain the work. An expert is only one leg of the chair, and a relatively minor one at that compared with the litigating leg. That's the example we see with this Matulka case. Kahn's credentials are impeccable. Expert's aren't advocates and don't try cases or provide legal advice. If you don't have a strategy to win and aren't able to do so even with a strategy, don't waste your time or money on hiring an expert because it won't overcome poor litigating strategy, no standing and submission of a witness that tanks your case in a big way. I provided an investigation to a party who turned out not to be party to the mortgage. The case was dismissed. The borrowers had introduced an audit by a party claiming to be expert which was completely undermined. Then my audit work was introduced after the fact and as expected, the opposing counsel law firm used language to denounce the expert and evidence. Words like "impertinent and scandalous" are expected phrases from opposing counsel whose first line of defense is to disable the evidence and expert. This case never got to testimony. I denounce any relationship to the Certified Forensic Loan Audit (CFLA)or D. Alex-Saunders whose claims of expertise and experience are unfounded and were completely undermined. I can't take responsibility for someone I have no clue about and upon whose report and expertise "tanked the case". The Norwood case you refer to and the Consumer Alert regarding TILA rescission audits, a/k/a Forensic Mortgage Loan Audits such as those CFLA are notorious for having provided irresponsibly. I did not provide that type of TILA audit and rarely find a case that warrants that type of investigation. I applaud your exposing what I also expose and testify against in addition to my work for borrowers, scam bogus audit expert. Please view my web site for detailed information. I appreciate your posting this rebuttal. I'm a nationally acclaimed expert in good standing. Thank you in advance. Keep up the good work! :)
Bob Hurt Finishes Up:
Richard, if you want to provide your clients with something truly useful in defeating foreclosure, call me to learn about the comprehensive mortgage examination that reveals tortious conduct, contract breaches, and legal errors underlying the mortgage. These causes of action constitute injuries to the mortgagor, and justify compensation to the mortgagor from the lender.
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The mortgage victim who competently attacks the lender for these causes of action in a settlement negotiation or lawsuit typically wins significant concessions from the lender. That means the victim can obtain some combination of a cram-down of the loan balance to the present value of the house (or lower), monetary damage award, legal fees and court costs paid by the lender, or the house free and clear. Full damage and legal fee awards can require a lengthy, expensive litigation that virtually always succeeds. For that reason, lenders usually settle without requiring a single day in court. But, the foreclosure victim who uses a securitization audit to stop the foreclosure nearly always fails, and loses the house. I have documented numerous cases as proof here:
People considering a securitization audit should recognize the Matulka court’s opinion as TYPICAL, not anomalous. More than one court has cited the Norwood dictum that securitization and loan audits are “empty gimmickery”, and referred to this:
Federal Trade Commission fraud alert:
Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners pitches forensic mortgage loan audits. In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The “auditors” say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan. Nothing could be further from the truth. According to the FTC and its law enforcement partners:
there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer. some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable. if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.
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If you are in default on your mortgage or facing foreclosure, you may be targeted by a foreclosure rescue scam. The FTC wants you to know how to recognize the telltale signs and report them. If you are faced with foreclosure, the FTC says legitimate options are available to help you save your home.
Spotting a Scam
If you’re looking for foreclosure prevention help, avoid any business that:
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guarantees to stop the foreclosure process – no matter what your circumstances are instructs you not to contact your lender, lawyer or credit or housing counselor collects a fee before providing any services accepts payment only by cashier’s check or wire transfer encourages you to lease your home so you can buy it back over time recommends that you make your mortgage payments directly to it, rather than your lender urges you to transfer your property deed or title to it offers to buy your house for cash at a fixed price that is inappropriate for the housing market pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.
Finding Legitimate Help
Housing experts say that when you’re behind on your mortgage payments, maintaining communication with your lender is the most important thing you can do. Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule. Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit www.hopenow.com. For free information on the President’s plan to help homeowners, visit www.makinghomeaffordable.gov.
If you think you’ve been dealing with a foreclosure fraudster, contact:
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Federal Trade Commission – www.ftc.gov Your state Attorney General – www.naag.org Your local Better Business Bureau – www.bbb.org
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This article was previously available as Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud. Tagged with: foreclosure, loan, mortgage, scam
Also see the FTC alert on Mortgage Relief Scams here:
Conclusion – Call Bob Hurt NOW to Find the Vampire in Your Mortgage
According to industry experts, 90% of US home owners who obtained a home mortgage loan in the past 10 to 15 years suffered an injury by the lender or lender’s agents – one or more tortious acts, contract breaches, or legal errors. A comprehensive mortgage examination by a competent professional will prove these causes of action, and provide the basis for negotiating a settlement with or suing the lender or lender’s agents. This will make the foreclosure go away like sunshine chases away a vampire. And the mortgagor could end up with the house free and clear and a wad of money.
I'll explain all about it FREE. Just call me at 727 669 5511. See more commentaries at http://lixe.org
Bob Hurt Blog 1 2 3 f t 2460 Persian Drive #70 Clearwater, FL 33763 Email; Call: (727) 669-5511 Law Studies: Donate Subscribe Learn to Litigate with Jurisdictionary
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