Palm Beach County | Florida’s Reliance on Mortgage Investments Corrupts Foreclosure Process

“This kind of analysis is why Lisa is far better qualified to serve in a position of public trust”


Matt Weidner | Palm Beach County, Florida’s Reliance on Mortgage Investments Corrupts Foreclosure Process

As most of you know, Lisa Epstein is running for Palm Beach County Clerk of Court. Let me share with you a staggering fact that she found buried deep in public reports:

My own county, Palm Beach, Florida has a 1.45 billion dollar investment fund (as of end of FY ’10-’11 on Sept 30, 2011). Of that, 45.5% is invested in Fannie securities and 15.1% is in Freddie securities. That’s 55.6% of our county’s entire investment portfolio. See page 92 & 93 here (my county’s financial reports)

I encourage everyone to think about the implications of the trustee of the government’s purse being wrapped up so tightly with what’s happening in foreclosure courtrooms. (And think about this for your own counties.)

We all know that our public records and our courtrooms are cesspools of fraud, forgery, lies and deceit. The “leaders” have long been hell bent on grinding through foreclosures like they were sending wood into a woodchipper. Due process and the facts be dammed, “GET OUT OF THAT HO– USE AND GET OUT OF MY COURTROOM!” We hear repeatedly that “we have a duty to taxpayers”, but that misses the critical point…..the duty is to THE LAW. Not the fund managers. Now I’m certain some judges and players think that ignoring facts and law and throwing foreclosures into the woodchipper is the quickest way to grind through the crisis, but this philosophy ignores the long term (catastrophic consequences). The wood they’re throwing into the wood chipper results in unmarketable title. Consider Michael Olenick’s analysis that found more than 10,000 foreclosure final judgments that have not resulted in sales. What’s the hold up? Part of the hold up is trying to glue back together all the pieces after they’ve come shooting out of the wood chipper.

The losses at the GSEs that are already realized (but concealed of course from the dopes that read financial statements) are exponentially understated. Extrapolate those institutional losses down to the county’s portfolio and I say slash the alleged value of the investment by a massive percentage. And when you slash that holding, you slash important things like police and fireman salaries and health care and other vital services.

Bernie Madoff was a kid playing with glue and scissors in his parent’s basement compared to what’s occurring here. Then compare all of this reporting to, (as just one example) the absurd reporting from Florida’s Retirement Fund that I’ve written about frequently. (See Here) It’s all just fantasy and delusion. Dangerous fantasy and delusion.

For the rest of this, along with a link to the report, click here…


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