The news was breathlessly reported in the media, and glowingly announced by Eric Holder:
A multistate settlement with five large U.S. banks over foreclosure practices would include as much as $17 billion in mortgage debt forgiveness and loan modifications and take three years to complete, according to a letter describing the deal.
The draft letter to stakeholders from state attorneys general outlines an agreement among large mortgage servicers, states and the Department of Justice, which are continuing talks to finalize the proposal.
Servicers, including Bank of America Corp., JPMorgan Chase & Co. (JPM), and Wells Fargo & Co., would also have to provide as much as $3 billion in refinancings, enabling borrowers to secure new loans “at today’s historically low rates,” according to the letter.
Another $1.5 billion would be to about 750,000 borrowers who have lost their homes to foreclosure, according to the letter.
States that sign on to the agreement would get “immediate payments” to fund consumer protection and foreclosure prevention efforts.
Lissen' up, ya'll. These banksters perpetrated the greatest swindle in the history of the world! They sold shit mortgages on shit houses to people who had no chance of honoring the terms, thus crippling their futures. In the meantime, they bundled and sold these shit mortgages as securities. Most of them were never recorded in the county courthouses of the land, which is what the law requires.
Then, when the shit mortgages stopped producing, they filed fraudulent, perjured foreclosure documents and kicked the purchasers they had defrauded out of their houses. They used robo-signers to sign the affadavits, often fictitious names, or names of dead people, which is perjury and fraud upon the court. The chain of title has been broken on thousands upon thousands of properties, which will serve to make them unsaleable, or so risky as to gut their market value.
A breathtaking fraud has been perpetrated upon us, and our political leadership are holding the banksters' coats while they stone the culture to death. This makes the corruption of the 1870's look like Amateur Hour, Teapot Dome look like small peanuts, Watergate look like a bad prank.
And now, courtesy of Barry and Eric, they get to sign a civil settlement for pennies on the dollars of wealth they vacuumed away from each and every one of us. And we're supposed to stand up and cheer!
They only have to fork up 4.5 billion in cash, some of it to buy off the state governments, and promise to 'help' by reducing some loan principals--if and when they get around to it. When they fail to honor the agreement, there will be zero enforcement.
Back in the late 1980's, an earlier generation of banksters and politicians collapsed the venerable Savings and Loan industry, which had for decades provided stability in the home sales market by demanding prudence from all parties. At least one of those crooks, Charles Keating, actually was convicted and served four years in the pokey for ruining thousands of lives. The senators he bought off, including John McCain, were named and shamed.
In our day, the politicians make little effort to hide their ennabling of massive fraud.
It is a culture that has decided that only power matters, and slowly and surely it is grinding...to...a....(halt).
OS sees little to no hope in the Presidential race. He thinks our best bet in that arena is to elect fire-breathing honest conservatives at every level from city council to Congress, and keep after them to hold the crooks' collective feet to the fire.
OS also thinks that anyone who is foolish enough to do business with the banks mentioned above deserves the fleecing that awaits.
Showing posts with label Mortgage Fraud 101. Show all posts
Showing posts with label Mortgage Fraud 101. Show all posts
Friday, February 10, 2012
Tuesday, January 25, 2011
Bear-Stearns Traders Knowingly Selling Investor 'A Sack Of Shit': Lawsuit from 2008 Now Made Public
From Atlantic Magazine biz page:
Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit's supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a "sack of shit."
Denninger has been on top of this all along, alleging that the frauds originate at the very beginning of the process--the creation of the individual mortgages themselves. Little wonder that so much of the paperwork has gone missing...
OS is no financial whiz, no economist.
But he does know this: If you bleach all the trust out of a culture, where no one has any idea whether or not he is dealing with an out-and-out crook--things grind to a halt. Perhaps slowly, but inevitably.
Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit's supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a "sack of shit."
Denninger has been on top of this all along, alleging that the frauds originate at the very beginning of the process--the creation of the individual mortgages themselves. Little wonder that so much of the paperwork has gone missing...
OS is no financial whiz, no economist.
But he does know this: If you bleach all the trust out of a culture, where no one has any idea whether or not he is dealing with an out-and-out crook--things grind to a halt. Perhaps slowly, but inevitably.
Monday, January 17, 2011
10,000 GMAC Foreclosures Stopped Dead In Their Tracks--By A Group Of Law Students
HT Denninger.
If the fraud is so obvious that law students can convince a court of it, then all those sharks attempting to foreclose homes with robo-signature docs, and no proof of who owes what to whom are in some deep doo-doo. As is GMAC, which is a Ward of the State.
This makes for entertaining reading, and will make for interesting times once the implications play out. That's two states in one week, both of them Deep Blue, with the courts just saying no to perjured documents.
Remember when GMAC was melting down? It was an auto-finance company that decided it was a mortgage lender. Then when it needed money to stay alive, presto-chango, the Treasury and Da Fed decided it was a friggin' bank! Even has a front--Ally Bank--that runs goofy ads, pretending to be a bank. It's still GMAC, and it's still an insolvent scam. That we will end up eating the losses on.
One person (who appears to speak from the political Left) left a comment on the article is worth quoting, and he cuts straight to the ethical heart of the matter:
Instead of helping the distressed homeowners whose lives are being ruthlessly and systematically ripped apart by the criminal banks, the President had the unmitigated gall to accelerate and facilitate the unlawful forfeitures by the banks with his incredibly bogus HAMP program and then topped that disgraceful act by blaming the victimized homeowners for causing the crisis.
What kind of a man is Obama who would dare to use a nine-year-old dead girl as a stage prop to make a point about the need for civility in our dealings with others during a national speech, when he is assisting the criminal banks to steal millions of homes in the United States...?
What kind of a society are we when the only people fighting for justice are law professors and their students working for free?
At least, sir, we have them. And, there is a glimmer of hope out there, if these folks are willing to take on a GMAC.
Next time you donate and vote, sir, remember this day and these events.
Now, let's make certain Congress does not again cave, and come to the rescue of the criminals. The full court press will begin shortly.
If the fraud is so obvious that law students can convince a court of it, then all those sharks attempting to foreclose homes with robo-signature docs, and no proof of who owes what to whom are in some deep doo-doo. As is GMAC, which is a Ward of the State.
This makes for entertaining reading, and will make for interesting times once the implications play out. That's two states in one week, both of them Deep Blue, with the courts just saying no to perjured documents.
Remember when GMAC was melting down? It was an auto-finance company that decided it was a mortgage lender. Then when it needed money to stay alive, presto-chango, the Treasury and Da Fed decided it was a friggin' bank! Even has a front--Ally Bank--that runs goofy ads, pretending to be a bank. It's still GMAC, and it's still an insolvent scam. That we will end up eating the losses on.
One person (who appears to speak from the political Left) left a comment on the article is worth quoting, and he cuts straight to the ethical heart of the matter:
Instead of helping the distressed homeowners whose lives are being ruthlessly and systematically ripped apart by the criminal banks, the President had the unmitigated gall to accelerate and facilitate the unlawful forfeitures by the banks with his incredibly bogus HAMP program and then topped that disgraceful act by blaming the victimized homeowners for causing the crisis.
What kind of a man is Obama who would dare to use a nine-year-old dead girl as a stage prop to make a point about the need for civility in our dealings with others during a national speech, when he is assisting the criminal banks to steal millions of homes in the United States...?
What kind of a society are we when the only people fighting for justice are law professors and their students working for free?
At least, sir, we have them. And, there is a glimmer of hope out there, if these folks are willing to take on a GMAC.
Next time you donate and vote, sir, remember this day and these events.
Now, let's make certain Congress does not again cave, and come to the rescue of the criminals. The full court press will begin shortly.
Thursday, October 7, 2010
HR 3808: Ai Caramba, Lucy! Wha' Happan'?
This turkey almost became the law of the land, snuck in under the radar by voice vote in both houses of Congress.
Word is that it will be vetoed--unless of course, Himself's price for a signature is met by the bankers. One can never afford to be too optimistic these days.
Denninger explains the details of what it would have meant, e.g. a green light for bank and mortgage fraud to continue unchecked.
This sort of stuff goes to the heart of the rule of law. It passed unread, and almost unnoticed.
So, we can't name and shame those who voted on the bill.
As for the sponsor of this bit of evil--
Rep Aderholt, Robert B. [AL-4]
and the co-sponsors:
Rep Braley, Bruce L. [IA-1]
Rep Castle, Michael N. [DE]
Rep Davis, Artur [AL-7]
...OS hears there is an election day at hand...just sayin'.
Word is that it will be vetoed--unless of course, Himself's price for a signature is met by the bankers. One can never afford to be too optimistic these days.
Denninger explains the details of what it would have meant, e.g. a green light for bank and mortgage fraud to continue unchecked.
This sort of stuff goes to the heart of the rule of law. It passed unread, and almost unnoticed.
So, we can't name and shame those who voted on the bill.
As for the sponsor of this bit of evil--
Rep Aderholt, Robert B. [AL-4]
and the co-sponsors:
Rep Braley, Bruce L. [IA-1]
Rep Castle, Michael N. [DE]
Rep Davis, Artur [AL-7]
...OS hears there is an election day at hand...just sayin'.
Wednesday, January 13, 2010
The Bank That Couldn't Foreclose Straight: Bank of America, But Are We Surprised?
You know, if you're going to seize a house in a foreclosure, change the locks, cut off the power and water, etc....you just might want to check to make certain you're at the correct ***!!!** ADDRESS!
This story is a real nightmare.
From the 10 January Galveston News:
GALVESTON — A West End property owner is suing Bank of America Corp., asserting its agents mistakenly seized a vacation house he owns free and clear, then changed the locks and shut the power off, resulting in the smelly spoiling of about 75 pounds of salmon and halibut from an Alaska fishing trip and other damages.
Dr. Alan Schroit filed the lawsuit Monday in the 122nd State District Court in Galveston against the bank with which he has neither a relationship nor a mortgage.
*******
OhpleezeOhpleezeOhpleeze let this case make it to a jury!!!
Wonder what a jury of twelve Texans in Ron Paul's district will do to Bank of America in this situation? Punitive damages, anyone?
Too Big To Fail actually means Too Big To Be In Business.
This story is a real nightmare.
From the 10 January Galveston News:
GALVESTON — A West End property owner is suing Bank of America Corp., asserting its agents mistakenly seized a vacation house he owns free and clear, then changed the locks and shut the power off, resulting in the smelly spoiling of about 75 pounds of salmon and halibut from an Alaska fishing trip and other damages.
Dr. Alan Schroit filed the lawsuit Monday in the 122nd State District Court in Galveston against the bank with which he has neither a relationship nor a mortgage.
*******
OhpleezeOhpleezeOhpleeze let this case make it to a jury!!!
Wonder what a jury of twelve Texans in Ron Paul's district will do to Bank of America in this situation? Punitive damages, anyone?
Too Big To Fail actually means Too Big To Be In Business.
Monday, September 21, 2009
Flip This Shameless Fraud
Apart from episodes of Gordon Ramsay's Kitchen Nightmares, I avoid reality TV. Gordon's a special case, and has become a hero of the household, but that's a tale for another time.
But yesterday in Chicago, packing up to check out of the hotel room, I surfed over to A&E Network's Flip This House, about twenty minutes into the episode. I confess I didn't know what show I was watching, just observing some guys in Hartford trying to bring a house back to life they had bought, hoping to rehabilitate and resell.
The bees nested in the ceiling and windows were one challenge. After about five minutes, morbid curiosity took over, sensing that much worse was to follow.
It did.
The plumber arrived.
He went to the bathroom, and turned on the bathtub faucet.
No water. Because the fixtures were cosmetic only, not attached to any plumbing anywhere. The previous owner had cosmetically rigged the house to get past a lazy (or perhaps corrupt?) appraiser for a refi, to pull cash from the property.
Mortgage Fraud 101.
Someone should go to jail, but they won't. Complaining to the local prosecutor will get them the response, 'This is a civil matter', and the state prosecutor will tell them he's too busy--and likely he thinks he is. But just once, with a case this blatant, and professionally filmed, it would seem worthwhile to round up the owner, the appraiser, the realtor, and the mortgage broker, and at least perp-walk them for the local evening news.
Now, our intrepid remodelers don't get off that cleanly in my mind. They had a duty to inspect before buying. Betcha they will the next time!
But that in no way excuses or lessens the stench of a transaction based upon a lie.
Myself, I've got a Mercedes in the driveway I should have asked a few more questions about. Exhilarating to drive, but the previous owner didn't mention its need of a new head gasket. Shame on me, but more shame on him. I was gullible, he was duplicitous. I still would have bought the car with all the facts on the table, at a bit lower price.
There will be no recovery of the economy without a recovery of ethics.
But yesterday in Chicago, packing up to check out of the hotel room, I surfed over to A&E Network's Flip This House, about twenty minutes into the episode. I confess I didn't know what show I was watching, just observing some guys in Hartford trying to bring a house back to life they had bought, hoping to rehabilitate and resell.
The bees nested in the ceiling and windows were one challenge. After about five minutes, morbid curiosity took over, sensing that much worse was to follow.
It did.
The plumber arrived.
He went to the bathroom, and turned on the bathtub faucet.
No water. Because the fixtures were cosmetic only, not attached to any plumbing anywhere. The previous owner had cosmetically rigged the house to get past a lazy (or perhaps corrupt?) appraiser for a refi, to pull cash from the property.
Mortgage Fraud 101.
Someone should go to jail, but they won't. Complaining to the local prosecutor will get them the response, 'This is a civil matter', and the state prosecutor will tell them he's too busy--and likely he thinks he is. But just once, with a case this blatant, and professionally filmed, it would seem worthwhile to round up the owner, the appraiser, the realtor, and the mortgage broker, and at least perp-walk them for the local evening news.
Now, our intrepid remodelers don't get off that cleanly in my mind. They had a duty to inspect before buying. Betcha they will the next time!
But that in no way excuses or lessens the stench of a transaction based upon a lie.
Myself, I've got a Mercedes in the driveway I should have asked a few more questions about. Exhilarating to drive, but the previous owner didn't mention its need of a new head gasket. Shame on me, but more shame on him. I was gullible, he was duplicitous. I still would have bought the car with all the facts on the table, at a bit lower price.
There will be no recovery of the economy without a recovery of ethics.
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