The Subprime Mortgage Is Back: It’s 2008 All Over Again!
Apparently the biggest banks in the US didn’t learn their lesson the first time around…
Because a few days ago, Wells Fargo, Bank of America, and many of the usual suspects made a stunning announcement that they would start making crappy subprime loans once again!
I’m sure you remember how this all blew up back in 2008.
Banks spent years making the most insane loans imaginable, giving no-money-down mortgages to people with bad credit, and intentionally doing almost zero due diligence on their borrowers.
With the infamous “stated income” loans, a borrower could qualify for a loan by simply writing down his/her income on the loan application, without having to show any proof whatsoever.
Fraud was rampant. If you wanted to qualify for a $500,000 mortgage, all you had to do was tell your banker that you made $1 million per year. Simple. They didn’t ask, and you didn’t have to prove it.
Fast forward eight years and the banks are dusting off the old playbook once again.
Here’s the skinny: through these special new loan programs, borrowers are able to obtain a mortgage with just 3% down.
Now, 3% isn’t as magical as 0% down, but just wait ‘til you hear the rest.
At Wells Fargo, borrowers who have almost no savings for a down payment can actually qualify for a LOWER interest rate as long as you go to some silly government-sponsored personal finance class.
I looked at the interest rates: today, Wells Fargo is offering the exact same interest rate of 3.75% on a 30-year fixed rate, whether you have bad credit and put down 3%, or have great credit and put down 30%.
But if you put down 3% and take the government’s personal finance class, they’ll shave an eighth of a percent off the interest rate.
In other words, if you are a creditworthy borrower with ample savings and a hefty down payment, you will actually end up getting penalized with a HIGHER interest rate.
Rest here…
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But the banks did learn their lesson from the first time around. They learned that they became “TOO BIG TO FAIL” and “TOO BIG TO JAIL”. They learned that they can push the subprime loans and make a killing on those later when they go into default, or are forced into default by massive fraud. Most of those loans were required to carry PMI (Private Mortgage Insurance) which gave the banks a guaranteed 80% payout from the government insurance, plus the banks could add additional profits after selling off the properties later at auction. Even now if you put down 20% or more for a down payment, you are now required to carry MIP (Mortgage Insurance Premium). (At least that is what happens when you are disabled and can’t get a so-called regular mortgage) They just moved the words around. The banks have learned that no one is ever prosecuted or jailed for their theft and fraud. They might have to pay a fine for the criminal actions they do, but no one is jailed so they just build in those fines within their budgets and still make huge profits. And who collects those fines? The other side of the scam so everyone is still getting all the money? How do I know this? I’ve lived it and went through the massive fraud where the banksters, lawyers, and courts were all involved in the fraud. I experienced some financial hardships due to other massive fraud schemes which put my home in foreclosure. I was told to sign up for the so-called modification program which was just another scam to give people false hope in keeping their homes where that was just an action to delay the foreclosure until the courts could fit you into their foreclosure schedule. I did become in a better financial position while working with Chase Bank, and I was supposedly working with Chase Bank to bring my account current, but the lawyers and court blocked that. The lawyers and court also blocked allowing me to payoff the mortgage in full. They made more money by forcing the foreclosure. During the foreclosure process the courts failed to notify me about future court dates to try to get the property by default for me not showing up in court, they added a lot of documents to my file after the foreclosure was completed that I never received, (That is a Class 4 Felony for document tampering, but that doesn’t apply to lawyers and judges), they changed the locks on my home (WITHOUT A COURT ORDER) and stole thousands in personal property before the foreclosure was completed, and I reported all of this to law enforcement who did nothing. Towards the end of the foreclosure, I had Chase Bank offer me another settlement to do a Deed in Lieu of Foreclosure with a cash incentive, but the courts also blocked that. Chase Bank would constantly change my contact person and they supposedly sold my loan to another lender, which I heard was another illegal act where loans can’t be sold or transferred during a foreclosure. I received documents from the Court Recorder proving the massive fraud because he was tired of seeing it and seeing his neighbors getting thrown out of their homes because of the massive fraud. The court kept saying that Chase Bank no longer had my loan, but at the end of the foreclosure all the documents went back to Chase Bank. I hired another lawyer to handle the last offer by Chase Bank, but in court the lawyers for Chase Bank said he quit and finished the fraudclosure. My lawyer said that the foreclosure was going to be stated as an “IN REM” foreclosure, which is against the property only and not me personally. That wiped out the deficiency and the fraudclosure shows as never even happening against me. Slick, aren’t they? So who are the real crooks? The people walking into a bank with guns drawn demanding money robbing the bank or the banksters backed by their scumbag lawyers and courts pushing their pens to rob their customers through massive fraud schemes?
Once you are targeted for foreclosure, you can’t win. They are above all laws and they will make up new laws in process to cover their massive fraud. You can try reporting it like I did, but you will find that law enforcement does nothing and you will be ignored. They said that there were 7.6 million foreclosures completed since this started, and now they project another 7.4 million additional foreclosures in 2016. Plus I understand that they had it approved to streamline the foreclosure process that allows them to throw people out of their homes within 6 months or less.
Remember that the taxpayers bailed out the banks so the banks could earn bigger profits afterwards by throwing them out of their homes by massive fraud and theft. So yes the banksters did learn their lessons from the first time around.
If you haven’t lived the pain and frustration of the first round of theft , your a prime candidate for the second round of the multiple Law breaking frenzy by the Sharks of Wall Street ! THE INTENTIONAL TORT OF CONVERSION is when someone uses your personal property (note) as if it were their property and for self gain . During the last fiasco , and it’s still going on , The Banksters used sub-prime entities to make it look like you were in a Mortgage loan but behind your back and without your permission brokered securitized loan contract where there was a secret lien involved . the entity that PRETENDED to be in a Mortgage with you LIED with supporting documents ! They are not the lender , and they keep that a secret . Look at your mortgage statements . Where it says loan number….. that is a servicing number !!! The entity that is pretending to be in a mortgage with you is SERVICING the loan between you and the Investors !!! they take your promissory note and asset ( home ) and use it to give value to certificates they sell to investors ( Asset Backed Securities Certificates ) Doing this behind your back violates the Truth in Lending Act ( TILA ) The Uniform Electronic Transfer Act ( UETA) Just to name a couple of Federal Laws , There is more !!! State Law(s) , Contract Law(s) Trust Law , Banking Law , Tax Law , …… Just to name a few categories of Law , there are more !!! So how do they get away with it ???? I just named several categories of Law violated , with several infractions within each category ??? Conversion is just a less harsh word for THEFT !!! Don’t get caught up in this Scheme !!!
If you did get caught up in the first round , Here’s what you can do . RESCIND the Bogus Mortgage Contract !! Under Contract Law , There has to be CONSUMMATION of the contract . What that means is that both parties agree to the terms of the contract . How can there be consummation between the borrower and Lender when the alleged lender is another entity and its a different contract ??? There can’t be !!!! Because the sub-prime entity brokered a securities loan contract behind your back , gives you the right to Rescind ( cancel ) the bogus mortgage contract . what the thieves argue , is that you gave permission to the ” lender ” that they ” may transfer ” the note in the future …. well the entity that you gave that permission to in the bogus Mortgage Loan , cannot perform the act because it is actually a securitized loan with a secret lien holder , thus the power to transfer doesn’t exist either !!!! It’s an illusion of ownership !!!!