The Government Whiffs, Again, on Mortgage Servicer Abuse
Since the foreclosure crisis began six years ago, homeowner advocates advanced two priorities: accountability for the fraud and abuse that took place, and safeguards to ensure it never happens again. There has been little if any progress on the former, but a spate of new rules from the Consumer Financial Protection Bureau represent a serious attempt at the latter. New rules governing mortgage lenders (also called mortgage originators), which create a standard 30-year “qualified mortgage” based on the borrower’s ability to pay, and use various incentives to discourage riskier loans outside the QM model, have been lauded by many analysts. A separate rule bans “steering payments” to mortgage brokers and loan officers, which were used in the bubble years as bonuses for pushing borrowers into riskier, higher-cost loans. Severing the link between mortgage originator compensation and the terms of the loans they originate really gets at the bad incentives that drove the housing bubble and led to the crisis.
More here…
~
Smoke and Mirrors……..
I mean Give Me a Break! How much of this tripe are the people supposed to believe?
Look…….. Years ago I was involved with a group of folks who were invested in a company which was used to expose the fraud of Naked Short-Selling in the stock market. Many of the shareholders were advised to acquire certificates to prove they had shares in the company should there be some event which erased all electronic evidence of this Naked Short Selling which was running rampant in the markets. First, Christopher Cox (the then head of the SEC) claimed “Naked Short Selling does not exist”. A year or so later, when some other companies like Overstock.com filed lawsuits in federal court claiming they had been damaged as a result of these practices, Christopher Cox admitted “Naked Short Selling may exist, but it does not harm the market and provides liquidity.” Fast forward another year or so, and during the crash of 2007-2008 when the big banks were screaming for relief from the money they were losing from Naked Short-Selling, the SEC placed a ban on Shorting certain bank stocks. At one point the SEC claimed more regulation was needed and proposed new laws, seeking public comment. Meanwhile, the destruction of companies not protected from this illegal practice like the favored banks, were still being destroyed through dilution of stock price through the creation of non-existent shares which are never delivered (Naked Short-Selling). At this point, Cox resigned and the “Musical Chairs” music once again started as Mary Shapiro and Shiela Bair began their dance. Nothing changed and the same frauds went on while those whose companies were robbed in this fashion and spoke out on the subject were in some cases unlawfully imprisoned on trumped-up charges. The point I am trying to make is this talk of more laws is just a distraction. All that is needed to put a stop to the madness and throw the criminals in jail is already on the books….. that is if we can ever get the criminals to trial, but Eric Holder won’t let that happen, now will he? To this day, and although the shareholders maintain physical certificates adding up to more shares of a company than ever existed, not one criminal creating or cashing in these phantom shares for the Naked-Shorters has ever been indicted, but the CEO who stood up and demanded accountability from the government agencies who were complicit in this fraud is in prision. WE DO NOT NEED NEW LAWS….WE NEED ENFORCEMENT OF THE CURRENT LAWS!!!! But then again, we have the “Chief Prostitutor” of the DOJ admitting that he will never go after the biggest criminals because “it may harm the financial system”…….. Don’t you wish you were above the law????? This coveted status is available for a price! So, the next time you see some legislator touting “more laws are needed to protect you”, don’t allow yourself to be distracted buy these empty “busy work” notions meant to make you take your eye off the ball. You already know who the criminals are, who is helping them, and what the penalties are for these crimes……
http://www.youtube.com/watch?v=AvJDrglXctQ