Gretchen Morgenson | A Fraudclosure Settlement That Wouldn’t Sting

“One of the oddest terms is that the banks would give $1,500 to any borrower who lost his or her home to foreclosure since September 2008. For people whose foreclosures were done properly, this would be a windfall. For those wrongfully evicted, it would be pathetic.


“The deal being discussed now may also release the big banks that are members of MERS, the electronic mortgage registry, from the threat of some future legal liability for actions involving that organization.


A Deal That Wouldn’t Sting

Published: October 29, 2011

AFTER months of back and forth, a deal that is supposed to punish large financial institutions for foreclosure misconduct may be nigh.

While the exact terms remain under wraps, some aspects of this agreement — between banks on one side, and the federal government and a raft of state attorneys general on the other — are coming into focus.

Things could change, of course, and the deal could go by the boards. But here’s the state of play, according to people who have been briefed on the negotiations but were not authorized to discuss them publicly.

Cutting to the chase: if you thought this was the deal that would hold banks accountable for filing phony documents in courts, foreclosing without showing they had the legal right to do so and generally running roughshod over anyone who opposed them, you are likely to be disappointed.

Check out the rest from the NY Times here…


22 Responses to “Gretchen Morgenson | A Fraudclosure Settlement That Wouldn’t Sting”
  1. lvent says:

    Just got through watching David Axelrod on CNN talking how the re-fi program is no doubt going to be a failure because underwater homes can’t be re-fied…What an effing joke…Rescind the fraudulently induced loans.!!!!..they all got paid exponentially from their massive mortgage derivatives fraud…how many times do they want us to pay for the same house? They are a cabal of idiots and liars and no one is drinking their kool-aid anymore….that is their problem……they can come up with any excuse in the book, NO ONE IS BUYING THEIR EXC– USES ANYMORE WHY THE ECONOMY SUCKS…EXPONENTIONALLY………….WALL STREET IS 60 TRILLION IN THE RED IN MORTGAGE DERIVATIVES FRAUD….IT IS UNSUSTAINABLE DEBT….AND WE THE PEOPLE ARE NOT ABOUT TO GO BANKRUPT PAYING FOR IT..ALL OF THE POLITICIANS SHOULD RESIGN IMMEDIATELY….THIS IS NOT DEMOCRACY….THIS IS AN IDIOCRACY…..A COUNTRY RUN BY IDIOTS. LIARS AND TRAITORS…!

  2. Granicus says:

    After the AG’s ink the deal with the banksters are they then going to cut a deal with the title companies. Clouded titles are the real problem. How does this fabulous deal fix the chain of title snafus that MERS hath wrought?

    • lvent says:

      I have every reason to believe that it was the title and trust company who altered docs and forged mine and my husbands initials on the mortgage after the closing…The pretender lender who is trying to fraudclose on my home stamped over all of the forgeries in their last filing…the pretender lender filed a second amended complaint claiming to have the “original” note and a signature affadavit with my husbands forged signature on has the name of the notary from Chicago Title and Trust on it…She also claims to be the escrowee for Chicago Title and Trust..You cannot legally be an Illinois Notary and handle a loan file…that is criminal…I believe the Title Companies are the devil…I want to have her subpoenaed and questioned because I know for a fact, she was not at the closing table to swear to anything…and that is not the document we signed at the closing….. the Original “lender” is now a failed bank and claims to be MERS…..You just cant make this stuff up..the dirty bastards never thought they would get caught…If the AG’s settle with these crooks all hell is going to break loose in this country and they better know it..

  3. Fred Ana says:

    Caitlin why would other homeowners who’ve “paid their debts” be mad at homeowners who get principle reductions? Most of the time the other homeowners are sitting on enourmous inflated house prices, I paid my skool loan back – I don’t want anyone to go through that hell!

  4. John says:

    You need a lawyer! Trying to do this by yourself against all these professionals is not the way to go.

  5. Kathleen Burt says:

    Watched the latest Clinton Foundation speech on C-Span last night. Former president Clinton recommended cutting every Fannie-Freddie mortgage to 4% interest, across the board, whether the mortgage owner is underwater or not. He thinks it’s the only fair thing to do.

    I think he’s right because those homeowners who aren’t underwater yet are likely to be there in a year or so if this continues, and those who have no mortgages all are seeing their property values/equity in freefall.

    What do you-all think?

    • Fred Grendy says:

      Reduce the principle. Say it to yourself, it’s not hard. It’s what the elite do all the time in bankruptcy, but for some reason the sheeple can’t do it on their one and only home.
      (clinton can go to hell, that’s the only fair thing he should do)

    • housemanrob says:

      I think ,it is another attempt, this time by Clinton, who is one of them, to get us in ….what is just another debt enslavement trap! Get our sigs, then we are fu—- I say……free Americans of all mortgage debt……which they couls have done with the money used to bailout banks……..but not us PEASANTS!

      • CaitlinO. says:

        A 100% mortgage jubilee is probably actually a great idea from an eonomic point of view. But it will never fly politically. Thirty percent of mortgages are paid off and the people who worked hard for years and made extra payments and gave up vacations, new cars etc. etc. to get themselves out of debt would scream bloody murder if their tax dollars were used to wipe out other peoples’ house loans.

        Whatever solution is found is going to have to be equitable for all or it will never work.

      • housemanrob says:

        Marcy Kaptur introduced a bill that would release all Americans of all public debt……it has been done before……in this country…..

      • lvent says:

        Rob, now that woman is a true American Patriot…!! She knew what was going on before almost anybody knew what they did and, she did not try to cover it up….Remember her speach to CONgress?..If your attorney can’t put his finger on your mortgage..they don’t have that paper up on Wall Street!!!! Don’t leave your homes..!!!.You be squatters in your homes.!!!!..It is below zero out there and people are being thrown out of their homes while CONgress is stymied…!!!…the people are being treated the chattel…..!!.She deserves a medal of honor!!!… Marcy Kaptor for President!!!

      • lvent says:

        I am going to try and post the you tube video of Marcy Kaptor ripping CONgress and Wall Street a new asshole.. Many of her fights with CONgress are on you tube..I love this woman…!!
        Marcy Kaptur tells foreclosure victims….”Don’t Leave Your Homes”

      • lvent says:

        Please watch the Marcy Kaptur video above and the adjoining videos…this woman is so brilliant…she knows we are being held hostage in America by Wall Street and the Politicians are allowing it…She speaks of the credit freeze by the big banks and how that is causing small businesses to fail in this country…That is exactly what they did to my family….Wells Fargo took over Wachovia and CANCELLED our business line of credit..and put us out of business….THEY KNOW YOU CANNOT RUN A BUSINESS IN THIS COUNTRY WITHOUT CREDIT…THEY CREATED THE SYSTEM….I remember the HBO movie about the financial crisis where JEFFERY IMELT WAS TELLING PAULSON ON THE PHONE….HE CAN’T ACCESS CREDIT AND THAT WOULD PUT THEM OUT OF BUSINESS..AND CA– USE A CATASTROPHIC FAILURE…AND HE GOT WHAT HE WANTED..I remember going to the emergency room recently and observing that EVERY PIECE OF EQUIPMENT IN THAT HOSPITAL WAS MADE BY GE…..WHAT THEY FAIL TO REALIZE IS…WITHOUT THE PATIENTS…THE EQUIPMENT IS NOT NECCESSARY…..My husband and I went down to Chicago State University and TRIED to get a small business loan after the credit crunch..We went down with a business plan and the woman called a few banks while we sat there in her office…Do you know what ALL 3 OF THE BANKS SAID…. ? WE DO NOT LEND TO CAR PEOPLE…….!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AFTER THE AMERICAN PEOPLE BAILED OUT GM AND CHRYSLER…..THE NERVE….THROW THE DIRTY BASTARDS IN PRISON….ALL OF THEM!!!!! MARCY KAPTOR AND ELIZABETH WARREN FOR TOP JOBS…PRESIDENT AND VP….!!!

  6. John Stein says:

    This is a settlement that would do much more than sting. While Gretchen has done good reporting, I have yet to read where she has actually done the work of a true investigative journalist of criminogenic TBTF banks. The financial sector directy destroyed regulations that would have prevented disaster, through lobbying and buying public officials. Fanny was fine, until the Wall Street wolves burst through the door and broke down barriers to be allowed to steal from people. All across the country, mobsters were now allowed to predate on millions, and somehow this loan sharking was called the “free market”, and then when the economy crashes they all scream “the Government” made me do it. Total lies 24/7!

    • Bobbi Swann says:

      @ John Stein – here, here I totally agree with your post. I don’t believe Gretchen to be an “investigative journalist’ and it is all lies 24/7….the media on TV utterly makes me ill to my stomach…reporters? ha! they either have no clue whatsoever or they are just too d@@med scared to air the truth…they are just like the puppets of Congress and Senate dong their bidding for $$$$$.

    • lvent says:

      John, the GSE’s are to blame for instituting this HITLER PLAN.. and all of this could have never occured without massive corruption in Washington..BY THE POLITICIANS.The GSE’s were NEVER fine…They were told to institute this EVIL HITLER PLAN..and do not be fooled, the GSE’s are who instituted it…these were well devised and instituted evil plans by very evil people..Come on John. the GSE’s WERE BOTH AQUASI GOVERNMENT OWNED AND PRIVATELY OWNED AGENCY???….NOW THAT IS PROOF THAT THIS WAS A SET UP……..AS WELL AS UNCONSTITUTIONAL AND ILLEGAL!!!! HOW IS THAT LEGAL TO BE BOTH? BLOOMBERG REPORTED THAT THE IMF IS THE BIGGEST SHAREHOLER/BONDHOLDER IN THE GSE’S….THIS WAS A SET UP AND THAT SHOULD BE AS PLAIN AS THE NOSE ON BILL CLINTONS FACE…!!! IT WASN’T JUST MONICA LEWINSKY CLINTON WAS GETTING DOWN AND DIRTY WITH…

  7. lvent says:

    This is what they want, fines and ignore the fraud and therefore they are legalizing it…We have to stop participating in this Government….the system is completely broken down and corrupt…it is not functioning at all…They broke the social contract and it is our job as Americans to stop paying the mortgage and the property taxes and the credit bills…Cut up the debit and the credit cards….Do not vote for the Repubs or the Dems…We need a third party candidate….

    • Kathleen Burt says:

      Looks though, like the Attorneys General in New York, Delaware and California aren’t going to ignore the fraud, they’re going to walk away from the 50 state settlement first, in which case, class action suits against the banks will proceed in their states. Have been e-mailing them in support: (-“hang in there”), Agree on the 3rd party, but it won’t happen soon enough; manwhile moe people will be losing their homes….?

      • Fred Grendy says:

        Are you for real? “hang in there AGs”. BAHAHAHA! How many thousands of people in each state have been tossed out of their homes while each state’s top Lawyers sleep, never to interrupt Banker business. If you aren’t in but a few places where the AGs are actually taking a stand, notably DE or NY, assume you have an AG that works on behalf of TBTF.

      • CaitlinO. says:

        I’ve been e-mailing, too, and I sent two contributions to Schneiderman. Guess I’ll need to set a little aside next payday for Biden and Coakley.

      • housemanrob says:

        Hang on to your cash, Caitlin, dark times are hovering…

  8. John Stein says:

    Settlement? This is an outrage. This is sanctioned approval of organized crime. Over, and over, and over the architects of the disaster are trying to sweep things under the rug, trying to put it all behind them, ultimately to pretend it never happened and never doing anything to address what happened.

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