Herein Lie Links To The Last Lies | Is Foreclosure Settlement Déjà Vu All Over Again?

Is Foreclosure Settlement Déjà Vu All Over Again?

To understand why, let’s flash back to 2008, the last time we saw a massive, multi-state settlement sponsored by the AGs. Back then, the target was Countrywide, and the lender was being sued from all sides by AGs over predatory lending practices. The proposed solution back then, as it has been in every regulatory effort to solve the housing crisis to date, was widespread loan modifications (this is why you’ll notice that the cover of Way Too Big to Fail features Uncle Sam futilely swinging a hammer labeled “Loan Mods” at the problems that keep popping up in a game of Mortgage Crisis Whack-a-Mole).

With great fanfare, the AGs announced in October 2008 that they had reached an $8.6 billion settlement with Countrywide, in which Countrywide would modify 400,000 loans. What I soon realized was that this would not be a cash payment of $8.6 billion — instead, most of that figure consisted of, you guessed it, principal writedowns and other loan modification “credits.” The only problem was that 88% of the mortgages that Countrywide had agreed to modify were no longer owned by Countrywide, meaning that the bulk of the costs of this settlement would be born by others.

The settlement resulted in a lawsuit by Greenwich Financial Services on behalf of unnamed bondholders that essentially said, “hey, we actually have contracts with Countrywide that say they can’t modify loans willy-nilly and take money our of our pockets without compensating us.” The lawsuit put Greenwich CEO Bill Frey in a position to be a spokesperson for aggrieved bondholders, thrusting him into the spotlight and the crosshairs of controversy. The banks’ response was to begin a massive lobbying effort that led to the passage of the Servicer Safe Harbor in 2009 – a provision that in its original form said that banks could ignore its contracts with investors in the interests of public policy. Only the Senate’s fears that such a law would run afoul of the Takings Clause of the 5th Amendment (I wrote a feature-length article on this issue), and a last-minute lobbying effort by bondholders, led to the provision being severely watered-down before it passed in its final form.

You can check out the article in full here…


8 Responses to “Herein Lie Links To The Last Lies | Is Foreclosure Settlement Déjà Vu All Over Again?”
  1. Bloodsoaked says:

    Fuck it! Who wants to own a home in the middle of a battlefield we are at WAR people! The court is not the battlefield. Your front yard is. Wake the Fuck Up AMERICA And DEFEND YOURSELF OR SUFFER COWARDICE CONSEQUENCES! We know whom the terrorist are. The GOVERNMENT HAS DECLARED OUR LAND AS THE WAR ZONE on 9/11 GET READY FOR MARSHAL LAW! It has already been declared just not implemented yet. Its all a BIG LIE! Thats why its called the AMERICAN DREAM! IT’S NOT REALITY! Time to wake up puddle jumper’s or find yourself starving in a tent in the rain. The next tool in the box INFLATION as the people wake up they will starve you to weaken you to conform or Die. Then they’ll Foreclose on your grave. If we the people don’t stop them now then the next generation will have no hope for freedom. It’s your children and there children s children were fighting for. I commend all of you whom are fighting the GOOD FIGHT! BUT THAT IS NOT THE REAL FIGHT! A HO– USE IS JUST WOOD AND PLASTER AND BRICK! They don’t want that. IT’S YOUR GOD GIVEN FREEDOM AND SOVEREIGNTY THERE AFTER! ARE YOU WILLING TO DIE TO PROTECT YOUR CHILDREN S FUTURE? LETS HOPE IT DOESN’T HAVE TO COME TO THAT. They will never bring the economy back. If they wanted that they would have never sent our jobs away and deregulated everything and allow The Banksters to robb our nation blind. They are transfering the wealth away from us not to us GET IT? HAPPY VALENTINES DAY AMERICA GIVE YOURSELF A HUG YOU NEED IT.

    • lvent says:

      Bloodsoaked …..the war is evertywhere….even in the courtrooms…you have to use their own lies against them…and the laws that were put in place….to put them all in there place! I was at fraudclosure court today….the bank attorney tried to talk over me again but this time I let him have it…they are trying to strike my affirmative defenses with my house…saying my defenses are insufficient in law….I just got through going through this with my commercial property. I told the Judge that the Plaintiffs entire FORECLOSURE COMPLAINT IS INSUFFICIENT IN LAW…..! There is no LEGAL Assignment….THE TRUST AGGREEMENT..To that the bank attorney said nothing…speechless….the judge promptly shut me down and would not let me continue…I looked back at the bankster attorneys table …their mouths were hanging open..REAL SHOCK AND AWE…THE TRUTH BEING SPOKEN IN OPEN COURT! We cant have that! The judge gave me 3 weeks to re-enter and asked me to bring him a courtesy copy..! GOTTA HAND THEIR SHIT….RIGHT BACK TO THEM….!

      • lvent says:

        Happy Valentines Day everybody! Time to kick some corrupt, criminal banksters….and ….politicians…….asses..! Lets all show them who the REAL OWNERS OF THIS COUNTRY ARE….WE ARE!!!…….WE THE PEOPLE ARE THE REAL OWNERS OF AMERICA!!……WTF…ARE WE THAT STUPID AND BRAINWASHED,???? WAKE UP AMERICA!!! IT IS TIME TO …..THROW THESE FRAUDULENTLY INDUCED, LYING, DECEITFUL FRAUDSTER CRIMINALS OUT OF OUR COUNTRY!

    • Wake Up America! says:

      “The court is not the battlefield. Your front yard is.” A true and powerful statement. Great post.

  2. readdocs says:


    You’re on your own sweetie.

  3. scarednearlystiff says:

    Please shine some light on the following questions, and thank you in advance.

    Concerning homeowner relief provisions in “The Settlement”:

    Does this mean that for wrongly foreclosed and sold homes and evictions the somehow assessed value of the homes was $2000.00 ? And if so by what calculation?

    And does this include cost of packing, moving, temporary shelter, lawyers, accountants, court costs, helpers, maybe healthcare services as well, and other expenses?

    ? SNS.

    • see says:

      SNS, readdocs said it all. From what I have read if you have a Fannie/Feddie loan you are out in the cold because they are not part of this settlement. Being that F/F own most of the loans, well I guess you can figure that out. We were sold out again. So if you are expectiing any money, don’t hold you breath because it isn’t coming.

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