But Justice and the state attorneys general are demanding $20 billion for sloppiness, which they will then be able to hand out to voters—and potential supporters. The money won’t come from the banks; it will come from their customers, millions of whom will pay more in fees and interest and will, in some cases, be denied credit.
This stinks. It’s not only corrupt, it’s bad policy.
I’m a little confused on his agenda here since in one sentence he says it is sloppiness but then goes on to say “The proposed settlement is a money grab in search of a crime. A fairer way to punish banks would be to have them generously compensate the handful of people wrongly evicted because of a “robo-signing” abuse, after providing them with an expedited way to have their claims heard. And, of course, to return their homes.”
But this whole ponzi scheme is a crime. Even if you just broke it down to the robo-signing we have hundreds of thousands ADMITTED felonies.
So I say yes, Karl, let’s compenstate the hundreds of thousands of people wrongly evicted because of a “robo-signing” abuse, and of course, to return their homes.”
That should add up to well over $20 billion, right Karl?
The administration wants a $20 billion slush fund to ‘help’ homeowners.
At last Wednesday’s “CBS Town Hall,” President Obama said he was “trying to . . . figure out how we can get the banks to do more” on modifying mortgage loan payments. Perhaps, he said, people whose mortgages are underwater should get a “principal reduction, which will be good for the person who owns . . . the home.”
Mr. Obama has decided that taxpayers have no appetite for bailing out homeowners who don’t make their payments, or for rescuing those whose homes are worth less than their mortgages. Instead, he’s backing a proposal by his Department of Justice and state attorneys general to force major banks to cough up the dough.
The money would come from a settlement with JP Morgan Chase, Citibank, Bank of America, Wells Fargo and other banks accused of “robo-signing,” in which foreclosure documents were signed by bank employees or agents without properly certifying all the papers. The attorneys general admit that virtually no one was erroneously foreclosed upon because of robo-signing. The banks foreclosed on people who were on average 18 months delinquent, and after multiple attempts to modify the loan had been tried and failed.
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