Attorneys General May Be Rushing Proposal for Loan Servicers
A Swift Deal May Not Be a Sound One
By GRETCHEN MORGENSON
Published: March 12, 2011
ONE crucial reason the nation’s mortgage industry ran itself — and the entire nation — off the rails was its obsession with speed. Mortgages had to be approved chop-chop, loans pooled instantly. When it came to foreclosure, well, the quicker the better.
So it is disturbing that the same need for speed is at work in the bank settlement being devised by state attorneys general relating to improper loan-servicing and foreclosure practices. When Tom Miller, the Iowa attorney general who leads the talks, announced initial terms of a deal on Monday, he said, “We’re going to move as fast as we can.”
While some might argue that a rapid approach will help borrowers, it is apt to benefit the banks far more. Hurrying to strike a deal means less time to devote to understanding how pernicious the foreclosure practices were at the nation’s largest institutions. How can you determine appropriate penalties for troubling practices when you haven’t conducted a full-fledged investigation?
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Remind your AG when you speak to them that not prosecuting these crimes is a crime in of itself. It is misprision of felony, along with aiding and abetting in an attempt to defraud the United States Government.
If they don’t like the law, have Congress repeal it. Otherwise, they had better enforce it ! There is no “negotiation” of these claims, as the AGs have no federal jurisdiction to do so.
What would happen to you, if you did these crimes?
i just wrote pam bondi again AG of florida i included all the fraud. but pllease advise what to do at this point with wells fargo .
Question is, why isn’t AG Holder conducting an ‘in depth’ investigation of ALL of these banks and mortgage company’s who engaged and continue to engage in this fraud. Barack Obama is the president and has been for 2 years now so let’s get off our ass and instruct Mr. Holder to do his job! Furthermore I don’t want to hear about BUSH, CLINTON, or Abe Lincoln causing or being party to this fraudulent housing.mortgage mess. BHO is at the helm so get the hell off the golf course and cancel the WH parties. Get this BS resolved once and for all. As for any politician who is saying pay your mortgage loan or lose it to foreclosure make sure this a-hole is voted out ASAP and bombard his or her office with emails and phone calls. When enough people start to understand these maggots were elected by the voting public to represent us and do what we want not what they THINK we should have then and only then will we take back our government! In the meantime EMAIL the white house, congress and senate. Tell them to get moving or get the hell out!
That is the exact way I feel about this whole massive mess….I sent an e-mail to Florida’s AG and damn near matched the exact words you said. No more kissy face sweet words…get right to the core of the blame. It is now getting down to the fact the people must hit the streets….EVERYONE…
Holder and the rest of the bribery grabbers in Washington are sleeping with the racketeers of the financial industry. Lobbyists are living in Washington with bribes…why would any one in Washington help any citizens…there is no money in that. Not one has come to the plate…NOT ONE…including Obama….the one who has spent millions upon millions in 2 years going on vacations….paid for by the exact people…. US..the people of America,.. that he, Obama, has lied to right from the beginning when his face first appeared from out of no where…. and than put his friends all into positions in the White House…and if one checks the back ground of all in the White House..you will find just about all worked with or in connection with all the BIG BANKSTERS at one time or another…They are connected still..all are in this fraud to ruin America….that is why there have been no arrests, no indictments..and they don’t plan any. So this report of ” Settlements ” is a slam in our faces….and the Attorneys General know they too are slamming the people…..they also have failed the citizens. Sitting at the table with the criminals and chit-chatting about giving the people nothing…only shows, they too, the AG’s, have no power in this government…they must do as the banksters say..not what the citizens want.
it is crazy that this is happening and we cant get through to the lawyers , the judges, our senators, our president that what is happening here is ruining lives, families and causing stress on our children. my kids are stresses knowing we have to leave for what reason, so the bankers can have more money?
the beginning the appraisal fraud. why did our powers let these straw buyers continue to get mortgages increase property’s by 20-30 k each time increasing values daily because no one would notice. the appraisers were warned if they did not come in at asking price they would get black listed and have no work. they have already told congress about this. completely iged. they have lawyers even ones defending foreclosures not taking straw buyers on appraisals serious. like we did something wrong for buying a house. could we have all bought less expensive homes ps yes did we submit pay check stubs and wait for approval yes was there mortgage application fraud yes. some of us were put into “stated income loans” did the mortgage broker tell us that no. what happens at foreclsoure court if we did not know about this. we submitted paycheck stubs yet our mortgage broker states well more than our salary so we would be approved for a home we could not afford. and we get called dead beats when these mortgage applications are given to us at closing not even signed by us///// and no one goes to jail. so to get a loan mid we have to submit our paycheck stubs multiple times. when we were buying the house why were we not told to submit multiple paycheck stubs to prevevnt this, most of us would not die if we did not get he house we picked. we had not bonded with this house. we only asked if we can buy it.
now fast foward 5 yrs later none of us can afford these mortgages we were falsly approved for; now we applied for a hamp modification. in 2009 we sign a forbearance saying we would be modified in 2-3 months 7 months later 10k later after losing paper work multiple times resent denied a hamp for no reason because we were workiing. a higher mortgage in the mod. then of course defalt again becuase to high.
\ then here we are again applying for hamp denied again for lost paper work after writing occ, senate, wells fargo put back into loss mitigation but now being forclsoed on because we were told thye could not helpunless we were in imenenrt default. now we find out that hamp loan mods are being benied 1-2 yr s olater after paying all that time people are being foreclsoed on. are we supposed to apply and see what happens? or just give up and move one. i called 3 lawyers no one has calle dme back this is a distgusting situation to put me and my family. we should not be going through this,\
The NYT articles poses the question: “How can you determine appropriate penalties for troubling practices when you haven’t conducted a full-fledged investigation?”
That’s just it — YOU CANNOT! And that is the point of a speedy settlement.
There has been no full-fledged investigations..and they don’t plan any. We have proven fraud, over and over. The banks did not even fund the mortgages at closing…but put their frig’n name on the note/mortgage…recorded the mortgage with a fraud name. That was the start. Just look at the Senate investigation that took a year and a half….the results…the CEO and all top dogs knew of all the fraud but did nothing about it. BIG FRAUD….and not one arrest or indictment came out of that investigation. Got off scott free. All investigations are a government waste.. it’s the criminals investigating the criminals. So pray tell me..how could there be any full fledge investigations? CONgress and the Senate along with Obama are hiding in the dark shadows…worthless…the financial industry gives them the orders and bribes to keep them quite.
OOPS…” to keep them quiet. ” sorry
marilyn thank you , you have said everything i wanted to. advise me please. i have a wells fargo loan, in 2009 i was denied a hamp and put into a mod by wells fargo “take it or leave it ” mod they new i would default again , lost my paper work every thing i had to “resend” now agaon 2010-2011 its happening again
they just lost a package of paper work again this time sent fed ex. they want me to fax it now. but now i know to much about hamp. now i know they approve people extend it 1yr to 18 month then denie them and still foreclose after paying/ they should have approved me the 1st time. so now they dual tracked me sent to forelosure and want to continue loan mod negotiations?? i am so stressed cant stand it any more i called 3 lawyers this mornign for consultations, no one has called back yet. we live in a sick society and its getting sicker
The only thing that may resemble justice that will come out of this mess will be for the few individuals that do the heavy lifting for themselves.
In other words fight your own battle or loose.
Our government, in all its branches and incarnations, is about as useful as a bucket of warm spit.
Tim Bryant is correct!! 18 USC Sub-Section 4.
Misprision of a Felony. If AGs settle, class action 50 state whistle blower lawsuit to followV
Sounds like a clear winner to me!
Operation “Leaks”
The charge is basically that Bank of America’s wholly-owned subsidiary Balboa Insurance with the cooperation of servicers abused “force-placed” insurance provisions to effectively “cram” customer accounts. Note that Balboa is apparently subject to a sale agreement (it is being spun off) but there is no information available as to whether that sale has closed.
The bottom line of the charge leveled here is an attempt to pad (radically) servicer income at the expense of the homeowners. This could have easily caused some foreclosures. If it did, then the investors got screwed out of the money, as the servicer is paid first on a foreclosure from the proceeds.
http://market-ticker.org/akcs-www?singlepost=2459989
This is more flawed logic to try and “fix” a broken business model of fraud. They just want to keep kicking the can down the road because the next round of victims are due in court and they want to find a way to screw us so we get the hell out of their way. They have more homes to steal and FRAUDULENTLY INDUCED LOAN MODS to FORCE on the innocent victims of FORECLOSUREGATE.
This deal is nothing but a sellout of the american homeowner. the banks and the federal reserve are looking at 30 trillion dollars in fines and restitutiion to the american homeowner. Sure they and the aGS not the ny ag want to settle. 20 billion is pennies on the dollar when compared to pay out the 30 trillion.
the banks insurance companies will pay this amount easily. they know they are getting off easy .
we need to stop this sellout by lobbying the ags and our state legislatures.
the countrywide sellout got the homeowers nothing. who did that settlement 9 ags.
no sellouts any more. and more prosecutions and prison time for the robo fraudsters.
in additon
this settlement is for what we call the back end foreclosure. wait till the door to pandora’s box is opened about the servicing, loan modification fraud. writing fraudulent loans like second second trusts in order to foreclose.
I just discovered that on my credit report. yup I have three loans on my house one of which I never even applied for.
how about foregery. that is still going on full time. all employed by the banks and servicers.
it is the wild wild west. and only we homeowners are going to stop it . not the AGS.
wild west, holocaust same thing. we need to start fight back please write the occ. please write your senators, house AG’s we need some help. i have been fual tracked by wells fargo and now my newest fraud. they put me in a “stated income” loan that is why the mortgage broker did not use the info from my paycheck stubs. she stated the amount needed to get us approved. application never signed by me. was given to me in my closing paper work to burried forever not to be discovered. our credit scores were excellent. still we trusted the bank to much. if my salary was nit enough to get my mortgage approval it was not up to her to add a few dollars here and there to get me approved. at the time i bought htis house in florida there were 2500 houses for sale. where did i approve of a stated income loan i was aked to send paycheck stubs which were obviously not used. wow i am flabbergasted that a mortgage loan like that would even ever be available. i am devistated for me and my family that this one person can do this and the banks the under writers allow this. what about checking paycheck stubs. funny isnt this the opposite when i have been applying for hamp. all finacials. and then thye lose the paper work and BOOM your in foreclosure. wow i smell afish
A swift deal is exactly what the AGs want because they want to cover up their own fraud as quickly as possible. Thank God though the wicked banks and the AGs alike are perishing in their own corruption per God’s holy word in the Bible.
yes and yes i second that motion, can i be sick thanks
Who are the AG’s looking out for?
I hope they realize that misprision of felony is a federal crime, 18 USC. They cannot negotiate civil fines for criminal actions. They are required by law to report any crimes they are made aware of. What authority do they have to create their own settlements for Federal crimes? None. They are state Attorney Generals, which have different laws, so a settlement for all 50 states is an available remedy for them. They can only negotiate for their individual states. This is a scam by the AGs to circumvent criminal prosecutions of the financial industries. In effect, they are assuming the role of Eric Holder. There is no legal precedent for this. I am absolutely against any foreclosure fraud investigation that does not include criminal activity, which everyone knows, and can easily prove, occurred, and continues to occur. I think we need to follow the money trail on this one. Let’s see who has contributed to them recently, and how much. This would be illegal under every state law.
Flawed logic and how that helps the home owner is all I care about. Those of us who have bothered to stay informed and watch know that logic is going to have very little to do with finding a solution. Every individual American Homeowner must document their own situation and their own logic thread to force an individual settlement that is sustainable. Come on American fight for your right to due process. We already know that the banks did not do what they were supposed to do or properly document their own logic in the process. So Stand up and fight the bureaucracy it is done one at a time.
Please do not accept the fate that flawed logic is trying to force upon you. If you are an honest American homeowner asking for justice have the due diligence done to protect yourself against the hypocrisy of our financial and political systems… http://www.diligencegroupllc.net.
-AH