Tuesday, May 20, 2014

Investigative Journalist Blogger Marinka Peschmann Has Dug Up Something Very Interesting In Mega-Bankruptcy Case In New York, If Her Facts Pan Out It's Hard To Believe This Won't Impact Us, Somehow, In North Minneapolis...

Honorable Judge Martin Glenn, original source of photo is reportedly Cornell 
University, photo was obtained from article by Marinka Peschmann, blog post
by John Hoff

Click here to read the article discussed in this blog post.

A regular reader often sends me interesting stuff by email. Even though I rarely make use of the stuff on my blog, (well, sometimes I do!) he keeps sending and I keep looking it over. Tonight he sent me something interesting enough to share with readers.

There is a huge bankruptcy case in New York, so huge it may be the largest bankruptcy case in American history; the simultaneous Chapter 11 filings of 51 residential mortgage companies. Normally this kind of geeky mortgage stuff is handled by bloggers like Jeff Skrenes (Hawthorne Hawkman) or Behind The Mortgage Dot Com but...

...sometimes the most qualified blogger isn't the one who gets there first. I'll be happy to hang up this pinata and let others whack it with a stick if they feel inclined. Check out the article, linked above. I won't linger over this. I have crime to write about. 

I will, however, replicate the most interesting part of the article below, in closing:

Is your home at risk? Is your landlord’s home at risk? Check the list below.
Residential Mortgage Company Bankruptcy Petitioners

Residential Funding Company, LLC
Residential Capital, LLC
ditech, LLC
DOA Holding Properties, LLC
DOA Properties IX (Lots-Others), LLC
Equity Investment I, LLC
ETS of Virginia, Inc.
ETS of Washington, Inc.
Executive Trustee Services, LLC
GMAC-RFC Holding Company, LLC
GMAC Model Home Finance I, LLC
GMAC Mortgage USA Corporation
GMAC Mortgage, LLC
GMAC Residential Holding Company, LLC
GMACRH Settlement Services, LLC
GMACH Borrower LLC
GMACR Mortgage Products, LLC
Home Connects Lending Services, LLC
Homecomings Financial Real Estate Holdings, LLC
Homecomings Financial, LLC
Ladue Associates, Inc.
Passive Asset Transaction, LLC
PATI Real Estate Holdings, LLC
RAHI Real Estate Holdings, LLC
Residential Accredit Loans, Inc.
Residential Asset Mortgage Products, Inc.
Residential Asset Securities Corporation
Residential Consumer Services of Alabama, LLC,
Residential Consumer Services of Ohio, LLC
Residential Consumer Services of Texas, LLC
Residential Consumer Services, LLC
Residential Funding Mortgage Exchange, LLC
Residential Funding Mortgage Securities I, Inc.
Residential Funding Mortgage Securities II, Inc.
Residential Funding Real Estate Holdings, LLC
Residential Mortgage Real Estate Holdings, LLC
RFC-GSAP Servicer Advance, LLC
RFC Asset Holdings II, LLC
RFC Asset Management, LLC
RFC Borrower LLC
RFC Construction Funding, LLC

Does any of this, any of it at all, have an impact on North Minneapolis or is this an "East Coast issue?" Does ANYBODY see a company on this list with mortgages held locally? Are the rather hyperbolic assertions of Marinka Peschmann based in reality? Is this case literally big enough to effect the United States economy? 

Geez, I was just starting to feel like things are looking up for me, personally, since that LAST recession.  


The Hawthorne Hawkman said...

I find it hard to follow what exactly such an impact here would be. If these companies were to go bankrupt, the mortgages still held by them would be bought up by somebody.

Furthermore, MERS (that would be Mortgage Electronic Registration System, for the uninitiated, an entity that kind of acts as a stand-in for holding title when loans get securitized) has been sued in Minnesota already. Twice. Most recently several MN counties sued stating that they were owed fees that MERS failed to pay when property ownership transferred.

More potentially groundbreaking, but just as unsuccessful, was a case that DID have a north Minneapolis connection. Northside residents Jewelean Jackson, E.B. Brown, and others represented by the Legal Aid Society of Minneapolis claimed that MERS did not follow proper recording statutes and therefore had no rights to foreclose in Minnesota.

Neither case was successful, and I predict the case linked in this article will have a minimal impact here as well.

Johnny Northside! said...

Does this have the potential to put a shock through our economy like the mortgage crisis we weathered circa 2008?

Anonymous said...


Quelle Surprise! Ginnie Mae Says Bank of America Has Lots of Servicing Documents Missing; MERS Also in Hot Water
Posted on April 17, 2014 by Yves Smith

Anonymous said...

So let's go over this again. If you are using a photo from another author's article. A photo you do not have permission to use, and you have not provided photo credit, you are violating copyright.
Why do you have such a hard time understanding copyright law?

Johnny Northside! said...

Let's go over this again. Read the photo credit. The photo was originally used by Marinka Peschmann under "fair use," and obtained from a public source. I obtained it from the article by Peschmann, I simply acknowledged that SHE had obtained it first.

Have you heard the expression "Talk to the hand?"

Well, in this case...

Talk to the Peschmann.