Iowa AG Tom Miller: ‘We Will Put People In Jail’ For Foreclosure Fraud

Yea? When?

I will believe it when I see it. The French film crew met with Miller in Washington before spending four days with us and they were not impressed by his stance and comments on foreclosure fraud in the interview he gave to them which we will post here once their production is published…

Anyway, from the Huffington Post…

Tom Miller: ‘We Will Put People In Jail’ For Foreclosure Fraud

The leader of a nationwide investigation of foreclosure fraud told homeowners Tuesday that the probe will have some serious consequences for bankers.

“We will put people in jail,” Iowa Attorney General Tom Miller said, according to homeowner advocates present at the meeting in Des Moines.

Miller said the 50 attorneys general participating in the investigation want criminal prosecutions as part of a big settlement with home-loan providers. The probe launched this fall in the wake of news that the foreclosure processes at many large banks are as bogus as the lending practices that fed the housing bubble in the first place, as banks granted loans indiscriminately to feed derivatives-market speculation and failed to track original mortgage documents after packaging the loans and selling them to investors.

Several banks temporarily halted foreclosures shortly after some of the more egregious practices were revealed, but resumed seizing homes as the scandal fell off the front pages.

Other components of the proposed settlement would require banks to modify home loans and reduce debt burdens for customers whose homes are worth less than their mortgages.

“One of the main tools needs to be principal reductions, just like in the farm crisis in the 1980s,” Miller told the assembled homeowners, adding that he also supported restitution for victims of wrongful foreclosure. “There should be some kind of compensation system for people who have been harmed.”

Struggling homeowners who apply for mortgage modifications often make the unhappy discovery that the foreclosure process starts at the same time as the modification process — and the foreclosure moves faster than the modification.

It shouldn’t be that way, Miller told the homeowners in Des Moines: “To have a race between foreclosures and modifications to see which happens first is insane.”

Check out the rest from the Huffington Post here…

From the Ticker…

Jail For Bankers As A Christmas Present?

Hope springs eternal…

The leader of a nationwide investigation of foreclosure fraud told homeowners Tuesday that the probe will have some serious consequences for bankers.

“We will put people in jail,” Iowa Attorney General Tom Miller said, according to homeowner advocates present at the meeting in Des Moines.

I don’t believe it.

But – if we actually see people get indicted – and not just foreclosure mills but also banks – big banks – I’ll be officially impressed.

It will also be the first time since this mess blew open in 2007 that I’ve seen any indication of prosecution of people who did evil (and illegal) things.

Let me say this very clearly to the advocates: do not believe a damn thing until you see actual indictments and they are either corporate indictments of the large banks OR are aimed at their officers.

If all we get are low-level “robosigner” indictments then we get nothing.  Those people may indeed have broken the law but they didn’t do it on their own – they were paid to break the law, and when you enter into a conspiracy to do an unlawful thing everyone involved is equally culpable.

There are hundreds if not thousands of people in prison for driving someone to the bank for the purpose of robbing it.

This is no different, except it was you, the citizen, that got robbed.

View with responses

Like I said, I will believe it when I see it…

~

4closureFraud.org


Comments
9 Responses to “Iowa AG Tom Miller: ‘We Will Put People In Jail’ For Foreclosure Fraud”
  1. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    I am troubled by this phrase in the HuffPo piece:

    “Miller said the 50 attorneys general participating in the investigation want criminal prosecutions as part of a big settlement with home-loan providers.”

    Prosecutions as part of a settlement? Maybe this is just a matter of interpretation, or semantics, and I really don’t mean to be picking gnat sh*t out of pepper, but it sounds like Miller is providing an opportunity for the worst players to provide a few “patsies” that can be thrown under the bus and then, per the terms of some sort of “negotiated settlement,” will allow all others to walk away with no reprisals at all.

    I don’t believe our alleged justice system can continue looking the other way, failing to prosecute violators, assessing miniscule fines, etc., and still be considered to be dispensing “justice.” I completely lost faith some time ago.

  2. PJDJ01 says:

    RIght now, this threat is little more than a negotiating tactic. But for the life of me, I do not understand why Sarbanes Oxley has not been put into play against the banks. Certainly AG’s have enough evidence to use Sarbanes Oxley to reveiw emails and communications of what Senior Bank Executive knew and what they did.

    Perhaps the wikileaks revalation will open the door.

    What happens if the US treasury and the Fed are in cahoots with the bank executives?

  3. Jason Werner says:

    the problem with putting the thug bankers and their foreclosure mill accomplices into jail is that they could inflate the value of the jails as well, and even manipulate more documents over there as well, which would cause a new burden on the states.

    The foreclosures must stop, all of them. Regulators must order their member banks to cease and desist their RICO.

  4. JS says:

    Before anyone gets too excited about AG Tom Miller’s efforts to help homeowners, keep in mind that he made the following statement in his recent testimony before the Senate Committee on Banking, Housing, and Urban Affairs:

    “To be clear, the States do not believe that every foreclosure is a tragedy that must be avoided. To the contrary,
    we have consistently stated over the last three years that we are only interested in modifications where the
    cash flow from the modification exceeds the expected proceeds from a foreclosure sale.”

    This means that he has no intent to help anyone who has significant equity in their home, because the banks can make more money by kicking those homeowners to the curb and tapping into that equity.

    This sure sounds like an effort to help MORTGAGE INVESTORS, NOT struggling homeowners.

    Homeowners with equity are NOT underwater, are the MOST financially vested in their homes, and are disproportionately middle-aged or older homeowners who have been in those homes for years. They would seem the mostly likely to deserve help if Mr. Miller was trying to help HOMEOWNERS, not INVESTORS!

    Ignoring what is arguably the most deserving group of struggling American homeowners is a travesty. Furthermore, I suggest that it is an undeniable indicator of Mr. Miller’s real motives.

    I sure hope I’ve interpreted Mr. Miller’s testimony incorrectly and would welcome a clarification.

    • Great point! And also a simple answer; the FHA should just mark any house w/ positive equity as prime and refi at market rates. Given how many homes are underwater this seems like an easy solution which benefits the homeowner, the overall economy, and may slow down the erosion of property values as positive equity is swallowed up by foreclosure servicers and mills while the elderly lose their homes and home prices for everybody decline more quickly when these homes flood unnecessarily flood the market.

      Between HAMP, HAFA, TARP, and TALF it almost seems like government wants to push people into foreclosure. This makes no sense for either liberals or conservatives, and is such awful economic policy that I can’t imagine what politicians and regulators are thinking.

  5. When, and who, and for what?

    David J Stern still has a license to practice law. He’s still wandering around free. If anybody were still willing to hire him he’d still be filing foreclosures by the truck full.

    The people who hired him continue to receive free government money our children and their children will have to repay under the guise of “quantitative easing.” They’re cashing record bonus checks while they’ve gutted the US economy, decimated our legal system, and continue their lie that the collapse of their Ponzi scheme is just a bump in the road that’s annoyed a few cranks.

    So, Miller… Get to it or stop talking about it. After Hope Now, HAMP, HAFA, and every other scam designed to do nothing but make the cattle walk happily towards the door we don’t believe you. Skip the words, we want handcuffs, forfeiture, and long prison sentences and not just for a some $25K/yr ding-dong robo-signers but for the people who hired the people who hired the people who hired their bosses.

  6. John R. says:

    I’m not even naive enough to feel good with only indictments. I want guilty verdicts and punishments given. I apologize to America and to those within the Judicial system who still actually uphold the laws of this great nation, but your comrades have completely blown this persons faith in the US Judicial system and that faith will NEVER again return unless actual and real justice is once again dispensed.

    We hire you and elevate you to a place of great importance in our society and it is squarely upon your shoulders, like it or not, when your fellow judges continually and with monumental evidence to the contrary, keep rendering decisions against the people of this nation and in favor of Corporate America.

    This is past mistake and even past shame. You have proven your allegiance through collusion with the criminals of our society and as such, you all, have joined their ranks. Pray the rest of America never wakes to your crimes.

  7. Barbara Ann Jackson says:

    http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

    LAWYERS WHO FILE FORECLOSURES SHOULD ALSO BE INVESTIGATED

    Foreclosure lawyers are officers of the court; knowledge of applicable laws and civil procedure is not required from mortgage lenders, nor loan servicers. Inadequate or questionable foreclosure leads to useless property deeds that impede real estate sales; title insurance companies reluctant to cover foreclosed properties; mortgage default claims are being disputed due to defective foreclosures. . .Sample of fraudulent foreclosures:

    –Deliberately use of defunct lenders or lenders without “standing” to execute false civil and bankruptcy foreclosure proceedings.
    – Create and conceal malpractice, delay foreclosures, engineer billable litigation fees.
    – Orchestrate sham foreclosure auctions; property never acquired by lenders, but by ‘straw buyers’
    – Commit actionable wrongs (unfair debt collection, fraud, various torts) that give rise to lawsuits
    – Engage in self-dealing foreclosures by which some lawyers themselves gain foreclosed properties
    –Foreclosures via names of defunct lenders, illegally recorded property deeds, flipping, blighted communities
    – Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar
    – Intentionally false Bankruptcy court “Motion to Lift” and “Proof of Claim” on behalf of NON-EXISTENT lenders, concealing fact of “non-secured” mortgage debt.
    –Involved in fraudulent collection of property damage and mortgage insurance for illegally foreclosed homes
    –Fraudulent foreclosures abet loss of property taxes to city revenue, rodents, vagrants
    – Thousands of families made unlawfully homeless from null foreclosure proceedings.

    **more: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
    http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

  8. david black says:

    Mr David Huey is the Assistant ATG here in Washington. He sits on the exec committee with whom mr miller must meet and seek their assistance. Mr. Huey and the ATG in Washington state along with mr becca have allegedly for the last three years done absolutely nothing but protect the big banks in washington state. They have also stonewalled me and my attorney who filed on my behalf complaints about redlining, predatory lending, fraudulent mortgage modifications(alleged) against emc chase and have done absolutely nothing.

    I dont care what he says ie mr miller or what the exec committee says. their mission is to protect the big banks and the exec committee and mr miller and wash state atg have already cut a side deal here with wells fargo bank to get out of paying fines by saying they will do loan mods.

    they havent done a thing ie wells fargo allegedly except allegedly continue to foreclose.

    I dont have any belief or respect for mr miller or his exec committee. if you look at the ATG track record there is only one that has done anything in the last ten years to stop this scamming and fraud alleged that is, and that is the ATG of New York Mr. Cuomo and Mr Spitzer when he was the ATG.

    that is who we need to be head of the exec committee not mr. miller. we need to lobby to have the ATG of new york fight for us homeowners. they are the only ones that really understand the depth and breath of this bank and mortgage servicer fraud. historically there has never been in the last 30 years, any prosecution of any mortgage servicer or their trustee eviction agents in this country in the last fourty years.

    DO NOT TALK TO US MR MILLER about what you are going to do, talk to us what you have DONE today.

    Like in NOW and DEMAND AN instant HALT TO all foreclosures going back the last five years. and full restitution to the homeowners. like a friend of mine once said

    BS WALKS and MONEY talks.

    right now all we get is BS from these govt people. SHOW ME THE MONEY.

    NOW mr miller , mr becca and mr huey.

    best regards
    DAvid Black

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