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Criminal Issues and Fraud of the Mortgage Servicing Industry

Roy III and Donna Blizzard ™


Criminal Issues of the Mortgage Servicing Industry

While these probably in no way cover all of the illegal activities by the Mortgage industry and Your Federal Government, this may give you an idea of how pervasive this problem is when you figure that with the MERS system alone there are 60+ million homes and properties with no ownership papers. Compound this throughout the industry and you have a conservative estimate of over 200 million homes with bad paperwork and a 14 trillion dollar screw up that the taxpayers are paying for instead of forcing these corrupt banking institutions to pay. This doesn't even include the fraudulent insurance scam in the hundreds of billions of dollars easily. For more information please visit us on our WEB site, Homeowners Against Mortgage Servicing Fraud on Facebook or visit our sister site

1) Mortgage Fraud – This hardly needs explaining. This is not a matter of homeowners not paying their mortgage as the Banking industry and Fed. Government would like you to believe.

2) Postal Fraud – All notices being sent through the US Postal Service is supposed to be mail fraud if it is a fraudulent notice as most mortgage servicing documents are. The USPS is ignoring this.

3) Conspiracy – The banking industry conspired with the Federal Reserve and the Insurance industry and the mortgage servicing industry to swindle the homeowners and the investors while avoiding all jail time.

4) Tax Evasion – With every sale transaction of the loan note on a property, a 1099-A is to be filed and taxes paid to show that the said property is being carried on the books of the company. This is being ignored by IRS. We foot the bill in lost tax revenue by these major banking entities.

5) County Filing Fee Evasion – With every transaction, the counties are supposed to collect a fee from the Mortgage company. All these lost fees are then paid by the taxpayer in higher taxes. This is a 10 million a month loss in Tarrant County-Ft. Worth, Texas alone. State and countyGovernments are allowing this.

6) Illegal Foreclosures – without any paperwork to substantiate their claims, the courts and the Federal and State Governments are allowing the illegal foreclosure of American Homeowners

7) DTPA-Deceptive Trade Practices Act violations - the banks and mortgage servicers are violating the DTPA. Government is allowing this.

8) FDCPA –Fair Debt Collection Practices Act violations - the banks and mortgage servicers are simply ignoring FDCPA notices. Government is allowing this.

9) TILA – Truth In Lending Act violations - the banks and mortgage servicers are simply ignoring TILA notices. Government is allowing this.

10) RESPA – Real Estate Settlement Procedures Act violations – the banks and mortgage servicers are simply ignoring RESPA notices. Government is allowing this.

11) Insurance Fraud – companies that have no ownership rights to the notes are forcing insurance while naming themselves as the mortgagee. State insurance boards are not investigating.

12) SEC Fraud – the correct paperwork such as the 1099-A is not being filed as mandated by IRS and SEC law to keep chain of ownership and title clear.

13) Forgery – lost paperwork is simply being created out of thin air by firms set up to help perpetuate the fraud with no basis in facts and signed by non-existent individuals and the Attorney General’s offices and Federal Government is allowing it. Companies like DocX (indicted and shut down) and the Richmond Monroe Group in Missouri (still forging away).

14) Failure of courts to Uphold the “Rule of Law” – rules of law in the judicial system are being ignored by both the courts and Government to the benefit of the lenders and the detriment of the homeowners.

15) Constitutional violation of the 15th Amendment ( Illegal Seizure ) – without proper paperwork the government is allowing a third party entity to lay claim on homes they don’t have any interest in.

16) Failure of Government to stand up to fight for the Homeowners – the US Government under Fannie Mae, Freddie Mac, and the Federal Reserve are not pushing the Banks to stop the illegal activities as they are a part of them.

17) Banks have Unlimited taxpayer Funds to fight the Homeowners – the government is allowing the banks and mortgage servicers to use taxpayer monies to fight homeowners.

18) Denial of Due Process – Banks are pushing cases through with poor paperwork and denying homeowners due process under the law.

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19) Gambling Violations – Special Law was passed by the Feds so the Banks could Bet on the Mortgage backed securities.

20) Clouding of Title - 1st time in our Nation’s history where the chain of title to property is being clouded and endangering the clearly defined inheritance laws.

21) Flawed Definition of “SUB PRIME” Mortgage – This is a term used by the mortgage industry to identify homes easy to steal with just a few false fees and it does not mean homeowners who shouldn't have bought a home as they couldn't afford it.

22) Falsifying Notary Signatures - aka Robo signing - This practice has become well known throughout the country. A document with an authentic signature is photoshopped and copied onto other illegally created documents to make it appear legal. In other cases companies interested in stealing someones home just have someone else sign the documents in the name of a real signatory. In many cases the signature is simply an odd squiggle mark that is indecipherable as to what name is being written. Usually the notary stamp and signatory are on a separate piece of paper than what is purported to be notarized. Again illegal in all states.

23) Robo Signing Trustees - A trustee is supposed to be in charge of your loan note and / or trust that the note is in, however, they oftentimes just signed everything in sight with no thought given to what they were signing and in many cases sinply neglected to sign it all together. Oftentimes documents will suddenlt appear naming some trustee, when there are no signatures on any documents to prove the trustee actually was in charge of the note. All highly illegal.

24) REMIC Fraud - The laws concerning the securitization of notes is quite clear; if you want to take a negotiable instrument like a loan note and convert it to something that can be traded on wall street such as a stock or a bond, which are "security" instruments, you can do so, but then you can never change it back to a loan note or "negotiable instrument". Once these pools of notes are converted to stock they are supposed to be put into the loan pool, and they have 90 days from the closing of the pool to do so. Hoever, none of this hardly ever occurs as in fact, the notes are destroyed and lost so that no one ever finds out the truth about the notes having been converted to a security instrument, because if a security instrument were to materialize concerning your home and they also have in their possession a loan note, that is admission of fraud on their part. They crooks also try to concoct missing assignments of these loan notes years after the closing dates on the pools, another REMIC fraud that constitues a 10% fine of the total value of the pools. This should be in the tens to the hundreds of millions of dollars per violation.

25) Collusion between the Servicers and insurance Companies - The Servicers are abrogating their responsibility to track the homeowners insurance to a third party Insurer, to whom you have not given access to your private records, and the Servicers are then taking kickbacks from the Insurers as the insurers are allowed to force place a hyperinflated cost policy illegally on homes and businesses, usually without ever filing the correct paperwork in the counties to give themselves the legal ability to do so. The relationship between Servicers and Insurers are being clouded as they are committing fraud. What is common is astronomically priced force-placed insurance. Servicers are billing for policies that cost as much as 10 times as much as regular homowners insurance. For example, confirmed by American Banker, an $80,000 property standing on a $40,000 lot was force-placed with a policy costing $10,000. Put another way, one year of insurance payments would strip away 13% of the structure's total value.

Update 7-13-2013 An update here is in order as we found out several new illegal things the banks have done which renders this whole process illegal from the start. a) Violation of UCC code and all contract law in the US. b) the second issue is that once a hard look has been given to this whole matter, it appears that the securitization process actually makes the homeowner the Maker of the Note and they are owed money for the value of the home, not the other way around, " ...there were no loans because the money advanced by the investors was subject to a set of documents supporting a bond in which the homeowner was not the payor and where the homeowner never signed. The homeowner was subjected to a set of documents that failed to disclose the real party or the real terms of the entire transaction — a black letter requirement of the truth in lending laws.

The purpose of the transaction was for the investment banks to get money from the investors and to get a signature from the homeowner without connecting the two. The real purpose of the transaction was an investment scheme wherein the intermediaries took everything — the money, the property and the gains from credit default swaps, insurance and government bailouts.

Thus the intent of the investor to lend money for residential mortgages, and the intent of the homeowner, to get a loan for his home, was never accomplished and was effectively thwarted by the attempt to cover tracks by refusing to document the trail of the money. The actual documents offered in foreclosures document a fictitious trail — one in which no money ever changed hands.

The homeowner, without consent or knowledge, was converted from a borrower to a securities issuer and the investor was converted from being a part owner in a valid REMIC pool to being the alleged buyer of the security issued by the homeowner. Hence the right of rescission and damages arises not only from TILA but from the SEC rules and regulations. And the time for filing doesn’t start to run until the parties had enough information to either know or where they should have known of the fraud."

While the FEDs are allowing the banks, servicers and insurers to continue to flagrantly violate the very laws that you and I would be put away for life on, at the same time they are allowing these crooks to steal your homes, your friends and relatives homes and destroy the welfare of the US and the WORLD.

The latest scam is that the banks are refusing to produce the blue ink original at satisfaction of mortgage or loan payoff. They are offering only a lien release. This is not only illegal, but this puts your home at risk of someone down the road producing it and you then losing your home as a lien release is subservient to a Blue Ink Original Loan Note. Most likely the banks are re-securitizing your paid off loan note and hoping the investors and homeowners don't get wise to their current scam while they rake in billions more of taxpayer cash.

Think about this:

If this whole scenario was a simple matter of a homeowner going into default and the lender of the funds foreclosing to regain possession of their collateral, we wouldn't have a foreclosure crisis. It would be insane to think 20 million people suddenly banded together and collectively decided they didn't want to make mortgage payments anymore.

The banks must take your home at all costs and if necessary settle out of court in the end to claim the ill-gotten profits from the multiple side bets (insurance, reinsurance, credit default swaps, derivatives, etc) placed against each home. To demonstrate this, consider the extremes they will go to.

In 2000, an Ohio family of four lost their home, despite making all payments. At that time, the homeowner didn't understand what was happening and didn't know how to fight back to stop the theft and ended up in a homeless shelter. They later purchased another home, and four years later, a bank alleging to be the owner tried to foreclose. The homeowner was forced into bankruptcy to prevent the foreclosure. This time however, when the homeowner responded to the foreclosure and demanded they prove ownership, the imposters quickly withdrew from the case. Now, the bank is coming back again despite the homeowner having competent counsel, so the bank has hired two law firms to try to outgun or outspend the homeowner. The influential firm alone will easily charge in excess of $100K in legal fees if it is a brief litigation. But the house is only appraised at $40K, so that is the most the bank could recover. The court record and evidence confirm the bank does not own the loan and cannot provide the original note. So again I ask you, Why are the banks doing this? Because if they lose in court it would set a legal precedent and they would lose millions in illegal fees that they expect to make for stealing this house and then ...the flood of lawsuits would breach the dam.

Also, look at the Ibanez case that the banks just recently lost at the Massachusetts Supreme Court. The Banks spent millions trying to illegally foreclose on a home that was worth maybe 50,000 in its prime. Why would you want to foreclose on this home in the picture if you were a bank unless there was another issue?

As an update you may find this interview with the former secretary of HUD very alarming and a confirmation of everything that I had previously explained in this article.

A Video Update on KVUE TV Austin 1-28-13 -

You may enjoy reading my latest book,"The Gospel of John, An Actual Translation" the only actual translation of the Gospel that has ever been done.

Ibanez house

This is the Ibanez home that was fought over for years that the banks had to have at all costs.

This is the Ibanez home that was fought over for years that the banks had to have at all costs.

A New Book by Roy Blizzard III


Romie Chua on April 21, 2018:

So much corruption .. taking advantage on the ignorance of the homeowners. Now that we're learning the fraud of the alleged bank lenders, how do we put into action (step up to the plate) to correct this illegal practices ... been going on and on for many years now? Need real honest/knowledgeable/brave lawyers not to succumb to getting bribed !

Stephanie Saunders on February 16, 2017:

Thank you for making this information available.

Ruby Cox on February 15, 2017:

Thank you .

SERENA MAY on August 20, 2016:

I went to trial and the court reporter switched the minutes, GOOD THING I had my hidden video. I won the case.... you have to be sneaky like them, they couldn't belave, I filmed the entire hearing gave it to administrative judge. before they even had a chance, I can beat any foreclosure I'm up to 50 now... yep no assignment no FORECLOSURE. the lein department accepts foreclosures. that's where the papers come from.....administrative office

royblizzard (author) from Austin / Leander, Texas on June 27, 2012:

hi Catherine, this is typical of the criminal activity which remains ongoing despite all the smoke and mirrors of our elected ninnies who are too busy taking their own bribes to effectively watch over their constituants. We are beginning to take back some amount of control. There was a recent favorable decision on a similar case involving bid fixing on the bond markets. Interestingly enough it had the same players involved as this mess and it was also controlled by the Mafia, something we had only speculated since Fairbanks Capital, now SPS was founded by a mafiosa who has since fled the country.

Catherine Bryan on June 26, 2012:

brief synopsis of Case No: 3:10-CV-01605-CAB-KSC;



3745 Adams Street

Carlsbad, CA 92008






In 2005 Plaintiffs were victimized by a group of sharp operators, swindlers who City of Carlsbad records show requested code inspections to gain entry into Plaintiffs home of 60 years, thereby creating artificial financial desperation for the purpose of forcing elderly borrower Betty Bryan into accepting a HOME EQUITY LINE OF CREDIT for $649,000 from which the elderly borrower received no direct monetary benefits.

Those who actually perpetuated the acts of financial fraud in the loan origination have made themselves unavailable for prosecution and these issues although interesting, clearly do not directly pertain the remaining genuine issues to be determined at trial, but are merely the initial events that made Plaintiffs vulnerable to a second group of predators (predatory mortgage servicers) defendants Litton Loan Service and Defendants Select Portfolio Servicing Inc. who public records judicially noticed in the matter, demonstrate routinely and commonly engage in a pattern of predatory servicing and wrongful debt collection practices used to advantage themselves on Plaintiff Betty Bryan ( and other similarly situated borrowers) mortgage fraud circumstances in order to secure illicit unjust enrichment through an unconscionable stripping of what should have been Plaintiff Betty Bryans (and other similarly situated borrowers) readily available home equity.

Judson Witham on February 18, 2012:

YES YES and the ORGY of INCEST and DAISY CHAINS of Conspiracy and Collusion with the GOV the Lawyers and The Perps is MASSIVE ... You Should Help Us SMASH IT :)

Dear US DOJ, State AGs and US HUD Et Al

Under Federal FOIA Law and Applicable State Open Records Law Please Provide Us The Follwing information,

1. The Cause Number and Case Information associated with the 50 State and Federal Government Action on record in the US District Court/s which appertains to the Settlement Announced.

2. Please provide is with a Copy of The Terms and Details as well as a COPY OF THE Settlement agreement or the Proposed Agreed judgement

3. Please provide us with the Emails for the Government Agencies and Lawyers that are Real parties In Interest and The same Information for all banks and Their Lawyers known or within the Control of your Offices.

4. Please provide the Style of the case/s filed and the docket number/s for the cases filed associated with this announced settlement / agreed judgement.

5. The Name of the Judge/s that these case/s are before.

Thank You

J. Witham

National Victims Coalition

Legacy Trust Media

Send To:,,,,,,

prasetio30 from malang-indonesia on April 16, 2011:

Nice information. I had never knew about this before. Thanks for share with us. I don't have any experience with mortgage. But I'll bookmark this one. Rated up!


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