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      In the Foreclosure and Renters Rights and Battles GROUP, we are going to continuously delve into the issues of good and bad faith, rights and wrongs of parties involved and solutions. Today, we have a new, neat, little tidbit. The SEC has asked a  Federal court in San Francisco to compel Wells Fargo to turn over documents pertaining ttheir sale of $60 Billion in Mortgage Backed Securities.

       According to WaPo (reporting in conjunction with Bloomberg) story "SEC seeks court order forcing Wells Fargo--" it states;

     The Securities and Exchange Commission said in a statement Friday that Wells Fargo agreed to produce the documents under subpoenas dating to September of 2011, but the bank has failed to hand over much of the requested material.

     The SEC said it is investigating whether the San Francisco-based Wells Fargo “made material misrepresentations or omitted material facts” in securitizing the loans. The company would perform a due diligence review of a sample of the loans within the securities and would drop loans that didn’t meet its underwriting standards, the SEC said. But the agency said it doesn’t appear that Wells Fargo took steps to drop bad loans from the rest of the securities.

      As noted in the WaPo story - Wells Fargo had subpoenas served upon it September 2011 and has thus far failed to produce the documents.

   According to a New York Post story "Wells to SEC: Don't Bank on it" - the Bank is going to fight the SEC. Quoting Wells Fargo, the NY Post says the SEC said and Wells Fargo replies;

SEC
Wells agreed to produce the documents under subpoenas dating back more than 10 years — but has failed to hand over much of the requested material, the SEC said.

Wells Fargo replies

The bank said the SEC inaccurately described its conduct involving mortgage-backed securities and that no enforcement action by the agency is warranted.

NOTED by the NY Post Story;

Wells said it would perform a due diligence review of a sample of the loans within the securities and would drop loans that didn’t meet its underwriting standards, the regulator noted. But the agency said Wells, by all appearances, didn’t take any action to drop bad loans from the rest of the securities.


   According to Wikipedia (here) - Wells Fargo has 1 out of every 4 mortgages in the United States at a total estimated value of $1.8 Trillion - as stated verbatim;

Wells Fargo Home Mortgage

Wells Fargo Home Mortgage is the largest retail mortgage lender in the United States, as of Q3 2011, originating one out of every four home loans.[17] Wells Fargo services $1.8 trillion dollars in home mortgages, the 2nd largest servicing portfolio in the U.S.[18]

  One thing for sure - I am excited to see an "actual" battle going on between the SEC and a big Bank. We need more of this and I, for one, am deeply curious as to how the banter and rhetoric will bare out.



   We are looking for researchers and Diary writers for this group (as well as members). Please PM or email me at Laser.Haas@yahoo.com ?

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Comment Preferences

  •  Tip Jar (13+ / 0-)

    PLEASE, by all means possible, THINK for yourself? Then make a difference in the world; by doing something good for someone else today.

    by laserhaas on Sun Mar 25, 2012 at 10:27:06 PM PDT

  •  I would think it (7+ / 0-)

    highly probable that Wells Fargo doesn't actually have the documents that the SEC has ordered produced.

    And many of the documents they do have are likely fictitious creations after the fact.

    I am wholly unsurprised that they have failed to produce much, and the absence of such production points directly at "guilty as charged".

    Maybe it's time for a few search warrants.

    I hope that the quality of debate will improve,
    but I fear we will remain Democrats.

    by twigg on Sun Mar 25, 2012 at 10:37:24 PM PDT

    •  In this particular petition twigg, to the fed ct (3+ / 0-)
      Recommended by:
      twigg, worldlotus, concernedamerican

      I believe/ think that the SEC is looking for documentation of what Wells Fargo promised.

      As for the "securitization" documents I presume you refer to - I would not be surprised if we don't see a memo in the future - that the SEC threw them out with all their other case files.

      That way the banks can say "Twasn't US"..

      PLEASE, by all means possible, THINK for yourself? Then make a difference in the world; by doing something good for someone else today.

      by laserhaas on Sun Mar 25, 2012 at 10:51:32 PM PDT

      [ Parent ]

      •  Ahh ... So that's how it works (3+ / 0-)

        Hmmmm ... I threw all my documents out too, so if you want my house you are going to need to demonstrate that you have a financial interest in it.

        Oh? You can't? How sad!

        I hope that the quality of debate will improve,
        but I fear we will remain Democrats.

        by twigg on Sun Mar 25, 2012 at 10:59:58 PM PDT

        [ Parent ]

        •  The WAY it is "really" working - is they are STEAL (2+ / 0-)
          Recommended by:
          twigg, concernedamerican

          ing --- all the pensions etc - here and around the world.

          Word is Fannie Mae and Freddie Mac are going to simply DUMP homes in big lots to the banks and let them deal with the problem(s).

          Those who invested in these "securitizations" are going to get stiffed and NONE of the banks have any motivation to "work out" a mortgage. They were NOT the ones who originally loaned the money and get major tax benefits (and cash flow boosts) for each and every foreclosure they do.

          Especially in cases like Countrywide and WaMu - they can "blame" it all on those failed institutions. JP Morgan bought $33 Billion of WaMu's loans for $1.9 Billion.

          ($330,000 home for $19,000) -

          Thus, do they work out a new mortgage to get in $1000 per month instead of $1500 per month

          OR

          Do they really want to foreclose and get a Tax free (an accrual accounting play twist) cash flow boost $250,000 ?

          PLEASE, by all means possible, THINK for yourself? Then make a difference in the world; by doing something good for someone else today.

          by laserhaas on Sun Mar 25, 2012 at 11:22:53 PM PDT

          [ Parent ]

  •  If they were "Septuagenarian Quakers Against War" (5+ / 0-)

    or similar, though, we'd see SWAT teams descending on their offices and taking the computers out.

    Two kinds of People in America, Real and Corporate, and only one of them has Rights.


    Today, if you exist... that's already suspicious.

    by Jim P on Sun Mar 25, 2012 at 10:46:08 PM PDT

  •  Hey "Night Owl" - nice to C U (0+ / 0-)

    miss you guys (and gals)

    Hope all is well...

    PLEASE, by all means possible, THINK for yourself? Then make a difference in the world; by doing something good for someone else today.

    by laserhaas on Sun Mar 25, 2012 at 11:24:35 PM PDT

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