US court exposes the Achilles Heel of securitisation

Posted 02 November 2017

A court in New Jersey in the US has hammered a giant nail in the coffin of banks involved in securitisation. An attorney specialising in home loan foreclosure and securitisation in SA says the case should be liberally quoted in our local courts where banks are attempting to foreclose without the original documents. The website Living Lies explains the importance of this recent decision.

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Litany of allegations in Barclays mortgage suit

Posted 09 February 2017

The fallout from the 2008 subprime crisis continues to rattle on down the ages. This time, a US law suit involving Barclays shows how employees knew the mortgages they were underwriting were bad, yet continued to securitise them. 

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FNB checkmated in securitisation case

Posted 08 December 2016

Here's a bit of Christmas cheer: in a year when there were some notable victories for the small guy standing up to bullying banks, Cape Town couple Ahdill Abrahams and his wife Zulfa delivered the coup de gras on which to end the year. The couple have been fighting a 10 year war to prove that FNB had securitised their loan. Here's how they did it. 

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Knock-out blow for Absa in Cape High Court over securitisation accusation

Posted 27 October 2016

Absa's attempt to obtain summary judgment against Cape Town's Greg Smith was summarily thrown out of court last Friday. Ironically, Smith spent much of his life working on advertising campaigns for various banks. What's fairly unique about this one is Smith specifically accused the bank of securitising his loan. While the judge didn't address this, he did not like that Absa turned up in court with recreated documents instead of the originals.

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Docufile called to court to answer questions over fire that destroyed thousands of bank documents

Posted 04 October 2016

Document storage company Docufile is being summonsed to court to explain what happened in the fire of 2009 when possibly hundreds of thousands of documents, many of them mortgage bonds, were destroyed. Docufile's parent company, Iron Mountain, has had its own share of bad luck with fires, raising suspicions at least some of these were deliberate. 

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Northern Irish courts lead the world in slapping down banks ducking securitisation

Posted 05 July 2016

The Northern Irish courts are quietly setting international precedent when it comes to securitisation and "double dipping" by the banks. Notice in this report how Santander Bank "destroyed" documents relevant to a claim being brought by the bank (just as Absa claims thousands of its documents were "destroyed" in a fire in 2009 so as to avoid presenting the originals in court). But in the Northern Irish case, the home owner moved to commit the CEO of Santander Bank and his "corrupt" officials and lawyers to prison for submitting a false claim toi the court.

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How one woman beat the big banks by reading the small print in her mortgage bond

Posted 25 May 2016

What happened to Lisa Epstein in the US echoes the experience of thousands of South Africans faced with foreclosure - fuzzy legal language, missing documents and a simple strategy of bankruptiung their clients by dragging out legal arguments. Lisa studied up securitisation on her own, read the small print, and finally beat the bank. Here's what happened. 

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Goldman Sachs $5bn fine is a sham and a disgrace

Posted 21 April 2016

Goldman Sachs got slapped with a $5bn fine for selling worthless pieces of paper called subprime mortgages. But as this story from makes clear, the victims who lost their houses over this fraud will get little of the cash. The lawyers, the Treasury and the Justice department are the main winners. Goldman Sachs will only pay out roughly $2bn, which is a fraction of the money the bank made from securitisation transactions during the financial crisis leading up to 2008.

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California court opens door to wrongful foreclosure suits

Posted 28 March 2016

A recent decision by a California court opens the door for homeowners who were wrongfully dispossessed of their homes to pursue legal action against banks, even if they were in default, according to the LA Times.

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The banks' business model is foreclosing on homeowners

Posted 28 March 2016

A recent analysis by the Wall Street Journal reveals that precious little of the $110 billion in damages awarded against banks for mortgage fraud and irregularities did not go to the 6m homeowners who lost their properties. Most of it went to the Treasury. 

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Securitisation is legal. Or is it?

Posted 04 March 2016

In the second part of this series on securitisation, Jack Darier delves deep into the lies and deception that have allowed the banks to repossess upwards of 10,000 homes a year in SA. In this instalment, he explains to get obtain information on securitisation.

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Securitisation and debt markets: an industry of lies and deception

Posted 02 March 2016

In the first of this two-part article, Jack Darier delves into the murky world of securitisation, and how banks are able to side-step the law in grabbing the homes of upwards of 10,000 South Africans each year. It's all accomplished with legal trickery and the blessing of the courts.

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Davenport loses securitisation case, plans to bring new evidence to court

Posted 17 November 2015

Eastern Cape ostrich farmer Ash Davenport, who was the first South Africa to present a securitisation audit in front of a court, lost his case in the Eastern Cape High Court to stop his farm being sold in execution. But he has a second audit proving beyond any doubt that Standard Bank no longer owns his loan.   

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Busted! Joburg man catches Standard Bank out over securitisation denial

Posted 03 November 2015

Jack Darier of Parkhurst in Joburg asked his bank whether his loan had been securitised. No way, said the bank. It was the answer Darier was expecting. Meantime he had the proof that the opposite was true. It was a truth test, and the bank failed.

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5 out of 5 securitisation audits suggest the banks have been, well, less than honest

Posted 09 August 2015

5 out of 5 securitisation audits so far concluded suggest the banks have been less than honest with their customers. In all five cases, the audits suggest the mortgage loans have ended up in Asia. 

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Who really owns your home loan?

Posted 09 July 2015

Four out of four securitisation audits so far conducted in SA apparently prove that the home loans have ended up thousands of miles away in Asia. Yet the banks still cling to their argument that they are the lawful owners of the loans, according to Moneyweb.

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Ostrich farmer from Eastern Cape shows court his mortgage loan is now in Taiwan

Posted 21 June 2015

An ostrich farmer from Grahamstown has thrown the local court into a spin by apparently proving that his mortgage loan with Standard Bank has been on-sold to an investor in Taiwan. This is the first time a securitisation audit has been presented in a SA court. On the basis of the evidence presented, the farmer says Standard Bank has no right to be in court.

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Banks slammed for securitisation fraud in US court

Posted 19 May 2015

A New York judge this week came out swinging against against two banks, Nomura Holdings and Royal Bank of Scotland, saying the banks’ misconduct exacerbated the collapse in the mortgage market, according to the New York Times.

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Landmark securitisation case heads for the Constitutional Court

Posted 04 May 2015

A landmark securitisation case is headed for the Constitutional Court that will test the banks’ right to repossess homes where the mortgage bond has been ceded to a new owner. The Concourt is also being asked to decide whether going under debt review constitutes an act of insolvency.

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Calls grow for class action suits against banks over securitisation

Posted 13 March 2015

Disgruntled bank customers are signing up for a class action suit against the banks after new evidence suggests banks are concealing their securitisation activities from customers, the courts and investors, in what could turn out to be the largest banking fraud in South African history. 

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SA researchers make startling allegations of securitisation fraud

Posted 25 February 2015

The Commercial Crimes Unit of the South African Police Services has asked for additional information relating to new evidence of securitisation fraud by the banks. As one expert comments, this could be the smoking gun pointing to the biggest banking fraud in SA history.

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