Derivatives Lobby Links with New Democrats to Blunt Obama Plan

As President Barack Obama vowed in a Sept. 14 speech in New York’s Federal Hall to correct “reckless behavior and unchecked excess” on Wall Street, Mike McMahon and Barney Frank sat in the audience discussing how to ease proposed rules for the $592 trillion over-the-counter derivatives market.

Side by side at 26 Wall St., across from the New York Stock Exchange, freshman congressman McMahon told House Financial Services Committee Chairman Frank he was worried that Obama’s derivatives plan, released in August, would penalize a wide swath of U.S. corporations and could push jobs in his home district overseas, McMahon said in an interview. Read more about derivatives lobbyists…

Let’s get one thing straight: It’s patently insane that $592 trillion in derivatives even exist. They cannot be safely unwound. The standard definition of them is that they’re derivatives of underlying assets. The underlying assets are, in some cases, subprime mortgages. These mortgages only retain value as derivatives for as long as homeowners can continue to make the payments. When homeowners default, the derivatives become worthless. See the problem?

MFI-Miami Launches Service Investigating Securities Fraud by Lenders

Press Release

WEST PALM BEACH, Fla.–MFI-Miami, LLC, a mortgage fraud investigation company, announced today that it’s launching a nationwide service investigating the mortgage securitization process. The service will be managed by Elizabeth Jacobson, who will oversee this project for MFI-Miami’s sister company, MFI-DC, LLC.

MFI-Miami will investigate the pooling and servicing agreements, as well as the contents of the certificate that the trustee alleges to contain the mortgage. MFI-Miami will also determine if the certificate was part of a credit default swap that may have been paid as part of TARP or by a third party. These three items are essential for determining if the lender can legitimately enforce the terms of a homeowner’s mortgage or if the lender or trustee is committing securities fraud.

“I’m very excited about starting this new service,” says MFI-Miami President, Steve Dibert. “Not only will we be able to prove or disprove the legitimacy of any claims made by the lender, but we’ll also be able to determine if the lender is trying to collect from the homeowner after already being paid with TARP funds.”

Massachusetts Attorney Glenn Russell, Jr. agrees. “This is a valuable tool for any attorney doing foreclosure defense or loan modifications,” he says. “This report is like firing a first strike nuclear missile at the lender. With one shot, the battle is over!”

About MFI-Miami

Headquartered in Boynton Beach, Florida, MFI-Miami, LLC and its sister companies — MFI-DC, LLC, MFI-Boston, LLC, and MFI-New York, LLC — conduct compliance examinations and mortgage fraud investigations. These four companies are also the only firms that investigate the securitization instruments of clients’ mortgages. For more information, visit www.mfi-miami.com, contact 561-317-9978, or email info@mfi-miami.com.

About Glenn F. Russell, Jr.

Glenn F. Russell, Jr. is located in Fall River, MA. He’s a member of the Massachusetts and Connecticut Bars, where he specializes in foreclosure defense, bankruptcy, personal injury and divorce law. For more information, visit www.foreclosuresinmass.com, call 508-324-4545, or email russ45esq@gmail.com.

About Elizabeth Jacobson

Elizabeth Jacobson was the top retail sales manager for Wells Fargo before leaving to become a paralegal specializing in foreclosure defense. She’s now the City of Baltimore’s key witness in its multimillion dollar predatory lending lawsuit against Wells Fargo.

Contact:

MFI-Miami
Stephen Dibert, President, 561-317-9978
steve@mfi-miami.com or www.mfi-miami.com

Morgan Stanley Plans to Turn Downgraded Loan CDO Into AAA Bonds

Morgan Stanley plans to repackage a downgraded collateralized debt obligation backed by leveraged loans into new securities with AAA ratings in the first transaction of its kind, said two people familiar with the sale.

Morgan Stanley is selling $87.1 million of securities that it expects to receive top AAA ratings and $42.9 million of notes graded Baa2, the second-lowest investment grade by Moody’s Investors Service, according to marketing documents obtained by Bloomberg News. The bonds were created from Greywolf CLO I Ltd., a CDO arranged in January 2007 by Goldman Sachs Group Inc. and managed by Greywolf Capital Management LP, an investment firm based in Purchase, New York.
Read more about the downgraded CDO…

Risks, Benefits Of Securitization Under Scrutiny

The Obama administration this month unveiled some new ideas for reforming the nation’s battered financial markets. One item high on the agenda is the future of the securitization industry.

These days, almost anytime someone borrows to fund a business, buy a car or get a mortgage, the debt gets repackaged into a security that can be bought or sold like a stock. But critics say abuses in the securitization market helped bring about the housing meltdown.  Read more about the securitization industry…