If you are wondering why Fannie Mae and Freddie Mac (GSEs) are slithering through the swamp looking for a path to release them from the bondage of Conservatorship, let this Plaintiff GREEN TREE SERVICING LLC, amended to DITECH FINANCIAL, LLC case begin to open your eyes to the corruption racket behind scenes since 2008.

Illegal actions aren’t limited to just Green Tree. These are standard business practices among the banks, known – and it appears generally accepted by, the GSEs.

HISTORY SIDEBAR: Green Tree entered into a 2015 Stipulated Order for Permanent Injunction and Monetary Judgment with the Federal Trade Commission and Consumer Financial Protection Bureau (“CFPB”), in which “Green Tree must pay $48 million in restitution to victims of its mortgage servicing violations, and a $15 million civil money penalty to the CFPB’s Civil Penalty Fund for illegal actions related to mortgage servicing.” 

Instead of stopping its business operation, Green Tree just changed its name. Thus, Green Tree Servicing, LLC became the entity Ditech Financial, LLC and “Green Tree” and “Ditech” were used interchangeably. Many times it confuses the homeowner as well as the courts, which is likely the idea. 

THE LAWSUIT: Timothy and Carol Grundmann were sued for foreclosure by Green Tree on a 2006 refinance of their home from pretender lender AMPRO Mortgage, a Division of United Financial Mortgage Corp. However, likely unbeknownst to the Grundmanns, “Federal National Mortgage Association (Fannie Mae) owned the subject loan at all times pertinent to this action.”

Notably, Honorable Judge John A. Schaefer stated in the Final Judgment for Grundmann, “[T]he Court has absolutely no confidence in any of Green Tree’s financial documents.”  The story behind the Grundmann loan foreclosure is the mirror image of millions of other American homeowner stories.

Bank of America NA was the servicer of the loan until December 1, 2011, at which time servicing of the loan transferred from Bank of America NA (“Bank of America”) to Green Tree, who aggressively services the loans into foreclosure or bankruptcy. These special servicers are known as “the toxic waste dump.” These companies defraud borrowers, by such schemes as not crediting a borrower for payments, misapplying payments, and placing unnecessary force-placed insurance on borrowers’ accounts and unknown added fees and costs jacking up the principal. See Mark A. Cymrot & Amika Biggs, Report to Fannie Mae Regarding Shareholder Complaints by Mr. Nye Lavalle (May 19, 2006) (unpublished, internal report); see also Gretchen Morgenstern, A Mortgage Tornado Warning, Unheeded, N.Y. TIMES, Feb. 5, 2012,

When borrowers complain about these practices, which the mortgage servicers claim are just mistakes, their mortgages are not re-amortized to adjust payments and interest assessments.

This is where it becomes extremely sad for shareholders, investors, mutual fund holders and homeowners. Because homeowners can and are willing to make payments. If securitization wasn’t intended to be such a scam, payments would be King and foreclosure a last resort. Ah, but how do we prop up Obamacare without foreclosing on responsible homeowners? Who cares about how many other people get hurt along the way? The Obamacare legacy would have remained intact. This really does need a special investigator, special inspector general to investigate the entire 8 years of theft and skullduggery.

The Grundmann’s “nightmare” is well-detailed by the Court in its Final Judgment for Grundmann CLICK HERE of November 2, 2017. Reading the Judgment is guaranteed to make your skin crawl. Here are some highlights:

“32. During the time period of February to April while the Grundmanns’ payments to Green Tree were being rejected, the Grundmanns were contacted by Fannie Mae for purposes of discussing the possibility of modifying the Grundmanns’ loan.
33. The Grundmanns began communicating with the “Collins Center”, which was the organization Fannie Mae instructed the Grundrnanns to contact, to begin the process for a loan modification review.
34. The Grundmanns began collecting all documents and forms as requested by the Collins Center, however prior to submitting the documents the Grundmanns were contacted by Green Tree wanting to know what the Grundmanns planned to do about their mortgage.
35. Carol Grundmann informed the Green Tree representative, Conan Wilson, that she and her husband were now working directly with Fannie Mae and were planmng on going to a mediation for purposes of a potential loan modification directly with Fannie Mae.
36. Upon notifying Conan Wilson of their plan on working directly with Fannie Mae, Carol Grundmann was transferred to a Ms. Donna Singleton with Green Tree who directed Carol Grundmann to “stop the process with Fannie Mae.”
37. Carol Grundmann was told that moving forward with Fannie Mae would be a waste of time; that Green Tree already had all of their information, and if she went through Green Tree instead of dealing directly with Fannie. Mae that Green Tree would forgive $60,000 of the loan, reduce the principal balance to $204,000, and the Grundmanns would have monthly payments of $1,421.71; a deal that, according to Green Tree’s representative Donna Singleton, Fannie Mae could not offer.“

Green Tree sucked the Grundmanns back in under a fake trial payment plan and:

“48. As of the time of trial, $36,576.44 had been sent to Green Tree by the Grundmanns, and never returned, and no evidence or testimony was provided by Green Tree as to those funds ever being applied to the Grundmanns’ loan account.”

Where did the money go? Given what we know now, did the money go to Fannie Mae for the quarterly Obamacare Net Worth Sweeps? Was it used as a slush fund by the Obama administration funding leftwing political groups?

Unfortunately, this is a common occurrence among servicers, and most are linked to the GSEs. Many attorneys have identical cases to Grundmann. If we look hard enough we’ll likely find AMPRO Mortgage or United Financial Mortgage Corp. linked to Countrywide, hence the Bank of America appearance. It’s corruption and a scheme to liquidate properties in wrongful foreclosures.

And where was Fannie throughout this process? Fannie, the investor, hiding from the court process behind a servicer – was an indispensable party. In many cases, Fannie and Freddie just hide and are fraudulently concealed – with no Power of Attorney presented to the court or the homeowner for defense; and, that’s because servicers have told homeowners they don’t have a Fannie or Freddie loan – when they do!

The outcome of the Grundmann’s case should be the inspiration and goal of every astute foreclosure judge. Nothing less is expected or acceptable.

The question we should all be asking is “who has been running the GSEs?” Has the dictate to conceal the real party in interest come from within, a scheme to intentionally usurp Federal and State Rules of Civil Procedure and to violate the Constitutional Right to Due Process, inflicting harm on homeowners and shareholders? Homeowners and shareholders who cannot sue for these injustices because the GSEs were seized by a government Conservatorship and controlled for years by a Federal Agency, FHFA and the HERA Act in 2008, protecting the GSEs from millions of Americans who otherwise would have had the right to bring forth lawsuits.

Or were the GSEs just wrongfully seized and forced to cooperate by hiding the debt while their funds, gleaned from illegal and morally reprehensible acts, were siphoned off to prop up a soon to be forgotten political legacy and other politically motivated gains?

It’s time for you to decide.