*3Chics knows this is a long, involved post, but worth taking the time to read.
Now we all know that consumers made their contributions to the mortgage crisis by signing their names on the dotted line. Folks will say that consumers are greedy, that they bought more house than they could safely afford. And that’s absolutely true in some cases. Some willingly knew what they’d signed up for, while others were not as savvy or educated in the ways of banking and mortgages. They just wanted a slice of the American dream, called home ownership.
What took us so long to call for an investigation into the shenanigans of America’s banking practices? Last week JP Morgan Chase & Bank of America’s mortgages and lending practices were called out. Can you say follow the paper trail? Where’s the PAPER? This is the #1 questions home owners need to ask the banks when it comes to their mortgages.
Here we are approaching the midterm elections, and now the shit is really starting to hit the fan. I wonder what all those folks who don’t have a permanent residence are going to do come November 2… just wondering…
*Pay particular attention to the states involved in the shady bank mortgage practices. Also, FYI: Here’s a list of bank owned property and foreclosures.
From today’s print edition of The Washington Post:
Pelosi, Lawmakers Call for Federal Probe on Mortgage Lenders
By Brady Dennis and Ariana Eunjung Cha
House Speaker Nancy Pelosi called on the Justice Department to investigate the nation’s largest mortgage lenders on Tuesday, and Maryland joined a growing list of states seeking to halt foreclosures while they probe claims of fraudulent filings.
In a letter to U.S. Attorney General Eric H. Holder Jr., Pelosi and dozens of other Democrats accused the nation’s biggest banks of making it difficult for struggling borrowers to get foreclosure relief while the firms routinely evicted them with flawed court papers.
The group said that recent reports of lenders initiating hundreds of thousands of questionable foreclosures “amplify our concerns that systemic problems exist.”
The request from Democrats puts pressure on the Obama administration to get more involved on a matter that it so far has said little about publicly. The move is also likely to stoke cries for a broad moratorium on foreclosures across the country.
On Tuesday, the AFL-CIO joined other consumer groups that have called for such an action. Foreclosures across the nation could grind to a halt anyway as more states freeze the process.
Real estate analysts, however, warned that the moratorium could overwhelm the court system and wreak havoc on the fragile housing market by scaring away potential buyers of foreclosed properties.
The problems now tainting hundreds of thousands of foreclosures came to light last month when Ally Financial – the recipient of a $17 billion federal bailout – suspended evictions in 23 states where a court order is required to seize a property.
Other lenders soon followed suit, acknowledging problems with foreclosure filings, including potentially forged documents and the practice of employing “robo-signers” who signed off on thousands of evictions every month without verifying their accuracy. Flawed paperwork also has shown up in the 27 states, including Virginia and Maryland, where lenders can foreclose without a judge’s consent. Read on.
This so-called crisis has been brewing for some time. Check out this article from Crooks and Liars:
December 24, 2008 01:00 PM
Another Nasty Side To The Foreclosure Debacle
By Jamie
As if the foreclosures alone weren’t wreaking enough havoc on our economy, we also find out the whole process is starting to hurt our local cities in other ways we didn’t imagine:
Cincinnati wants Deutsche Bank and Wells Fargo to pay for what officials say is neglect of foreclosed-upon properties that’s worsening blight in city neighborhoods.
The banks own more than 100 properties in Hamilton County.
Representatives appear often in local courts to prosecute foreclosure actions against property owners, the city says in a lawsuit, but don’t show up when Cincinnati asks them to maintain abandoned properties titled to them. The city wants repayment for boarding up, demolishing and the other work done to Deutsche and Wells Fargo properties. The suit didn’t specify an amount.
It really upsets me when I hear people on the right try to say the foreclosure problem is from greedy people trying to live outside of their means, and we should let them suffer. Sure there are a lot of foreclosures that are the product of people over-extending themselves, but just ignoring that leads to these costs being passed onto struggling local governments. Not only that, but it also affects the former neighbors of these foreclosed homeowners. People sit there and pay their mortgages on time, take pride in their home ownership and try to make something good out of the largest investment they will most likely ever make. In turn, they get rewarded with lower property values, because of a foreclosed house turned abandoned by the bank, now devaluing up their neighborhood.
I got a feeling the lawsuit being brought on by Cincinnati is only the start of it. We will see more cities follow suit (no pun intended) down the road as they realize how much this nightmare is costing them. Then the banks will want to recoup the costs of these lawsuits and having to actually maintain the properties they couldn’t wait to foreclose on. Of course the banks are only worried about their own well-being. Why should they worry that your own property value is also being decreased, or that your local government is having to absorb some big costs associated with the foreclosures?
Pandora’s Box is just now opening, and without interaction by Congress, in the form of a homeowner bailout/rescue, we will be facing a vicious cycle that will continue for some time to come and cost all of us more than we could imagine. Until that happens, merry Christmas from the Bush/Republican economy.
And then there’s this from Hispanic Business:
| Foreclosure Debacle. Can’t These Guys do Anything Right?
“Can you say “low hanging fruit?” For a politician, say an attorney general running for a Senate seat, a big, bad, mean bank taking a family home from Mr. and Mrs. Registered Voter and their six kids four weeks before midterm elections and then forging the paperwork is like Christmas come early.” Read the rest here. |
Who do you think will pay the biggest price for these bank’s shenanigans?
And don’t think for one minute that not owning a home or having a physical place of residence/address won’t be used against you come voting time November 2. There are a myriad of ways to suppress our votes, and this is surely one of the ways.
If you or any of your family members are approached about foreclosures, ASK the bank(s) for DOCUMENTATION. All of it. and get yourselves an attorney.
Foreclosure Probe Spans 49 States
Forty-nine states have joined an investigation into mortgage companies that allegedly mishandled documents and broke foreclosure laws in reclaiming houses from homeowners. Alabama was the only state that didn’t sign on to the probe, which will look into whether employees of lenders made false statements or improperly filled out foreclosure paperwork. Ally Financial’s GMAC mortgage unit, Bank of America, and JPMorgan Chase have all stopped foreclosure proceedings after it was revealed that their employees had pushed through thousands of foreclosures without reading the documents, while Wells Fargo and Citigroup have declined to do so, saying they had not made such errors.
Read it at Associated Press
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Foreclosure Fraud For Dummies, 1: The Chains and the Stakes
The current wave of foreclosure fraud and the consequences for the economy are difficult to follow. As such, I’m going to write a few posts to simplify what is going on so you can follow stories as they unfold. This is very 101 level, and will include a reading list of blog posts and articles at each stage to help provide depth. (Special thanks to Yves Smith and Tom Adams for walking me through much of this.) Let’s make three charts of the chains involved in the process. The first is what is currently going on with foreclosure fraud (click through for larger).
http://rortybomb.wordpress.com/2010/10/08/foreclosure-fraud-for-dummies-1-the-chains-and-the-stakes/
FORECLOSUREGATE AND OBAMA’S ‘POCKET VETO’
Ellen Brown, October 7th, 2010
http://www.webofdebt.com/articles/foreclosuregate.php
Amid a snowballing foreclosure fraud crisis, President Obama today blocked legislation that critics say could have made it more difficult for homeowners to challenge foreclosure proceedings against them.
The bill, titled The Interstate Recognition of Notarizations Act of 2009, passed the Senate with unanimous consent and with no scrutiny by the DC media. In a maneuver known as a “pocket veto,” President Obama indirectly vetoed the legislation by declining to sign the bill passed by Congress while legislators are on recess.
The swift passage and the President’s subsequent veto of this bill come on the heels of an announcement that Wall Street banks are voluntarily suspending foreclosure proceedings in 23 states.
By most reports, it would appear that the voluntary suspension of foreclosures is underway to review simple, careless procedural errors. Errors which the conscientious banks are hastening to correct. Even Gretchen Morgenson in the New York Times characterizes the problem as “flawed paperwork.”
But those errors go far deeper than mere sloppiness. They are concealing a massive fraud.
They cannot be corrected with legitimate paperwork, and that was the reason the servicers had to hire “foreclosure mills” to fabricate the documents.
These errors involve perjury and forgery — fabricating documents that never existed and swearing to the accuracy of facts not known.
Karl Denninger at MarketTicker is calling it “Foreclosuregate.”
http://www.powells.com/biblio/9780979560811?&PID=23116
AND THE SHIT CONTINUES HITTING THE FAN!
Breaking News Alert: Sen. Reid calls on major lenders to halt foreclosures in all 50 states
October 8, 2010 12:56:48 PM
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Senate Majority Leader Harry Reid (D-Nev.) called on major lenders to halt foreclosures in all 50 states Friday following Bank of America’s announcement it was stopping proceedings until it finishes reviewing possible paperwork problems.
Reid, who had sent a letter to major banks asking them to suspend foreclosures in Nevada, extended his concern to include all 50 states.
“I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” said Reid. “I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.”
He emphasized, “My primary focus is to protect Nevada homeowners who have been hardest hit by foreclosures in the most recent economic downturn.”
For more information, visit washingtonpost.com
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Breaking News Alert: Bank of America will halt foreclosures nationwide, including the D.C. area
October 8, 2010 11:30:04 AM
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Bank of America has announced they will halt foreclosures nationwide, including the D.C. area, because of concerns about mishandled mortgage documents. The suspension is an expansion of last week’s move to halt foreclosures in 23 states.
http://link.email.washingtonpost.com/r/IKR2QE/JIEHUB/TTBK20/TZNR3D/RCJKE/W1/h
For more information, visit washingtonpost.com
no posturing; no attempts at weaseling. halting them?
this is even bigger than originally thought.
No good crooked mofos!
Yepppers! Because those lowdown dirty muthafuckas have been caught with their pants down.
Pants on the ground, pants on teh ground, ya lookin’ like a fool with your pants on the ground!!!
These banks have been caught red handed, and stand the most to loose now. That’s why they’re HALTING foreclosures. They have been caught in the WRONG DOINGS!
folks thinking alike. I think it’s hitting everyone the same way. I think we all see the tsunami about to hit. GMTA, cause I just finished a piece on this.
they are fucking crooks. straight up crooks and thought they’d do that bullshyt bill and let the banks off the hook again – fuck that.
this was a great piece guys. thanks for spreading the word.
Thanks, rikyrah. 3Chics wasn’t born last night. We’ve got to keep our eyes on the prize. PBO did the RIGHT THING.
And there you have it!
The White House Blog
Why President Obama is Not Signing H.R. 3808
Posted by Dan Pfeiffer on October 07, 2010 at 01:15 PM EDT
Today, the White House announced that President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act of 2010, and will return the bill to the House of Representatives. The Interstate Recognition of Notarizations Act of 2010 was designed to remove impediments to interstate commerce. While we share this goal, we believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized.
Notarizations are important for a large range of documents, including financial documents. As the President has made clear, consumer financial protections are incredibly important, and he has made this one of his top priorities, including signing into law the strongest consumer protections in history in the Wall Street Reform and Consumer Protection Act. That is why we need to think through the intended and unintended consequences of this bill on consumer protections, especially in light of the recent developments with mortgage processors.
The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce. We will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.
http://www.whitehouse.gov/blog/2010/10/07/why-president-obama-not-signing-hr-3808
Well, well, well, Lookie here, at the BREAKING NEWS:
Breaking News Alert: President Obama will not sign foreclosure measure, says official
October 7, 2010 1:38:27 PM
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Amid growing furor over the legitimacy of foreclosure proceedings, a White House official said President Obama will not sign a two-page bill passed by lawmakers without public debate after details emerged that the legislation could loosen standards for foreclosure documents.
http://link.email.washingtonpost.com/r/NQU5FR/FXKP2L/UHGDAC/BNZK1T/Z41ZI/4O/h
For more information, visit washingtonpost.com
Alright now! Handle your business Mr. President!
PBO’s gotta sleep with one eye open 24/7. Some folks in Congress tried to slip that shitty bill by the POTUS. But he ain’t signing it, not without public debate. Public, meaning HOMEOWNERS!!!!
The banks are robbing Americans blind. They don’t need guns and mask to do it.
PBO obstructed the obstructionist!
BAM!
Bank foreclosure cover seen in bill at Obama’s desk
By Scot J. Paltrow
WASHINGTON | Wed Oct 6, 2010 7:15pm EDT
(Reuters) – A bill that homeowners advocates warn will make it more difficult to challenge improper foreclosure attempts by big mortgage processors is awaiting President Barack Obama’s signature after it quietly zoomed through the Senate last week.
The bill, passed without public debate in a way that even surprised its main sponsor, Republican Representative Robert Aderholt, requires courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents.
The timing raised eyebrows, coming during a rising furor over improper affidavits and other filings in foreclosure actions by large mortgage processors such as GMAC, JPMorgan and Bank of America.
Questions about improper notarizations have figured prominently in challenges to the validity of these court documents, and led to widespread halts of foreclosure proceedings.
http://www.reuters.com/article/idUSTRE6955YX20101006?pageNumber=1
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Citigroup, Ally Sued for Racketeering Over Database
By Margaret Cronin Fisk and Thom Weidlich – Oct 4, 2010 4:31 PM CT
Citigroup Inc. and Ally Financial Inc. units were sued by homeowners in Kentucky for allegedly conspiring with Mortgage Electronic Registration Systems Inc. to falsely foreclose on loans.
The lawsuit, filed as a civil-racketeering class action on behalf of all Kentucky homeowners facing foreclosure, also names as a defendant Reston, Virginia-based MERS, the company that handles mortgage transfers among member banks. The suit claims that through MERS the banks are foreclosing on homes even when they don’t hold titles to the properties.
“Defendants have filed foreclosures throughout the state of Kentucky and the United States of America knowing that they were not the ‘owners’ or beneficiaries of the loan they filed foreclosure upon,” the homeowners wrote in their complaint filed Sept. 28 in federal court in Louisville, Kentucky.
http://www.bloomberg.com/news/2010-10-04/citigroup-ally-sued-by-homeowners-alleging-racketeering-over-mortgages.html