foreclosure fraud – Page 2

Breaking the Shorties

Otherwise Occupied: the OWS movement may actually be getting somewhere. It was really a bad idea to seriously injure a Marine, because they are serious about Occupy. Someone who can’t tell the difference between an enemy who wants to hurt you and an innocent that does not want to hurt you shouldn’t be allowed to carry a gun. Don’t forget other ways to peacefully protest the banks.

Maybe that wasn’t a good idea: B of A is backing down from their boil-the-frog fees.

Be Sure to Double Check the Name: Attention conservatives! Even the CATO guys think medical malpractice damage caps are a bad idea. Last I heard, those guys were just barely less conservative than the Heritage Foundation.

Speaking of Cato: Cato Fellow and extremely talented magician/comedian Penn Jillette has risen to Glenn Beck’s challenge to write 10 Commandments for Atheists.

Speaking of Republicans Being Wrong: The freaking World Bank says they’re wrong about the economy. Regulation is not preventing job creation and it never did.

Not Helpful: yet more talk of a foreclosure fraud settlement proposal that gives the banks a slap on the wrists for trashing our housing values and preventing a meaningful economic recovery. On the other hand, maybe doing something about mortgage debt will help. Good luck making the banks suck that up.

Yeah, it’s the FIZZ and not the SUGARS: Teens who drink non-diet “fizzy drinks” more prone to violence. Note the careful use of the phrase non-diet instead of sweetened.

Strike: General Strike November 2. Don’t work, don’t spend money, don’t do anything taxable. If you must go to work, don’t spend money.

Now will you make a freaking MLS client that runs on Lion???: Turns out Mac users are more productive. And that includes the time we spend finding workarounds for cludgy Windows only and MSIE only things we need for work! I’m talkin to you, Marketlinx! Don’t tell me “you’re aware of the problem” just fix it.

And Finally: Happy 125th Birthday to the Statue of Liberty.

The Most Important Thing You Are Likely to Read Today

Hi folks. Sorry for the lack of posts. It’s been a crazy, crazy couple of weeks.

So, what are the protesters so upset about, really?

Do they have legitimate gripes?

To answer the latter question first, yes, they have very legitimate gripes.

And if America cannot figure out a way to address these gripes, the country will likely become increasingly “de-stabilized,” as sociologists might say. And in that scenario, the current protests will likely be only the beginning.

Want to know why the protesters are so upset? Here it is, with pictures. This ain’t hard. The only thing missing is the frustration of knowing that banks are above the law, allowed to continue being so big they can single-handedly crash the economy, and they made matters worse by creating the foreclosure crisis.

Read ’em and weep. And then do something about it.

In Closing: Let women die; crazy idea; huhuhmmhuhuh; reason #128 why nobody gives a shit what the American Academy of Pediatrics has to say; amen; death and taxes; free trade; and have a great week.

Is the 50 State Foreclosure Fraud Settlement Dead?

It sure looks that way!

The California Attorney General has pulled out of the settlement talks and plans to run her own investigation! I wouldn’t be surprised if the New York Attorney General followed, since he‘s already talked about investigating on his own, and says he’s looking forward to talking with her.

For that matter, since Nevada‘s Attorney General has taken Bank of America to court for (allegedly) not abiding by a 2009 agreement on foreclosures and foreclosure fraud, it would make sense for her to join the party as well.

In Closing: The D Word; I miss the old days too; I guess they were in the building so that makes them accessories?; Occupy Wherever (like, say, Vegas); yes, mostly; about time somebody called out this BS; mechanically challenged; hell no!; and Happy October.

Curious No More

When I saw this in a parking lot, I wondered what the heck it was:

Now I know. It’s an old mail truck!

Alright, for those of you who aren’t into Volkswagens, here’s In Closing: earthquake shaking things up at the zoo; solving Too Big Too Fail with Even Bigger; I wonder if Blodget is right; the cover-up continues; just in case you didn’t have enough depressing bank news; sure a “high fat” diet can cause diabetes, when it’s also a MEGA sugar diet!; wouldn’t it be terrible if Amy Winehouse didn’t have a drug/booze problem but rather a degenerative neurological disease?; “Hey, if he can stop earthquakes, why can’t he golf and bike at the same time?”; the New Retirement Plan; told you so; in case you didn’t understand that the War on Drugs was racist; only 1 in 5 medical malpractice cases result in anybody getting money (other than the lawyers, of course) (or if you prefer, 4 out of 5 med-mal cases may be almost completely without merit).

Two and a Half Men

Thank heaven for Alan Grayson and — still! — Howard Dean. Harry Reid? Not so much.

If you don’t read Toothpaste for Dinner, you should!

In closing: 10 ways to get fat; pretty pictures; revisionist “history” (go ahead and read the Constitution, Newt); fearmongering; reality check. Sorry, I’m just not feeling like a long post right now.

Connecting the Dots

Today, the SEC announced fraud charges against a third banker for selling worthless and non-existent mortgages to Colonial Bank, leading to its collapse. This is on the heels said executive confessing to conspiracy and being sentenced to 30 years in prison.

Most reporting on “mortgage fraud” centers on one of two themes: Joe Average knew perfectly well he couldn’t afford the house and lied to get the mortgage in the first place; or robosigning was a just an unfortunate oversight caused by the sheer volume of foreclosures and nobody could reasonably predicted a problem. Both infuriate me. The first was only a small fraction of the foreclosures we have, and the second is merely a cover-up for the real mortgage fraud.

Let’s start from the beginning.

The buyer is told by an unscrupulous mortgage broker that he indeed does qualify for a mortgage, even though the mortgage broker knows that within 3 to 5 years, this buyer will have to refinance or go into foreclosure.
Some buyers — mostly minorities — are pushed into sub-prime mortgages despite the fact that they qualify for a better deal. They are at higher risk of foreclosure from day one and the mortgage broker knows it.
In some cases, a bait-and-switch occurs at the closing table. Either the documents presented are not what was promised, or only the first few pages reflect what the buyer was promised. The rest of the huge stack of paper the buyer must sign is at a higher rate or with worse terms.
The mortgages are sold to trusts, banks, insurance companies, pension funds, investment firms, Fannie Mae and Freddie Mac. They have been fraudulently represented as “performing” — that is, paying every month and likely to continue. Sometimes, these loans change hands multiple times. This is particularly true in an environment where some financial institutions have failed.
The original bank is now just the servicer, and they have every incentive to add fees, post payments late, deny short sales, deny mortgage modifications, and push the homeowner into foreclosure.
Meanwhile, in violation of the laws of every state in the union, they have failed to report the new mortgage holder at the county recorder’s office. After all, that costs money. Instead, they put together a private company to keep track of who owns what: MERS stands for Mortgage Electronic Registration System. The banking industry insists that this is fine, the law is quaint, this is the way everybody does things now, so the courts need to just accept it. Courts in several states have disagreed. Just because everybody goes above the speed limit doesn’t mean you won’t get a ticket.
The homeowner knows he is in trouble. He calls to ask about a mortgage modification. He is fraudulently told that they won’t even consider it unless he stops paying for 3 months. When the 3 month mark comes, the homeowner is in default and the foreclosure process is begun; it’s a race to see whether the modification or the foreclosure finishes first.
Default is where the robosigners finally come in to play. They have stacks and stacks of documents, some of which need to be fabricated because originals were shredded to hide fraud.
I would be remiss if I did not point out that in some cases, banks are foreclosing illegally: they foreclose on the wrong home, they foreclose without legal standing to do so, they foreclose in violation of a bankruptcy order, they foreclose on a member of our military who is serving overseas.
In the fallout, some financial institutions fail.
The banks turn around and sell the properties at absurdly low prices, sinking property values. In any other industry, they would face charges of dumping.

And there you have it. Robosigners and “people who should have known better” are only a very small part of the mess we now face.

Cross-posted at The Moderate Voice.

In closing: the center is further left; “don’t expose our law breaking trade secrets!”; odd recall; on austerity; women‘s issues; tied hands; seriously??; Pac-Man was supposed to be for girls; I’ve got a soft spot for VW, but this is not likely to be my next car; glad they can agree on something; Superman‘s citizenship and other issues; what are we hiding?; fix it; Matt Damon; and a picture:

Follow-Up Thursday

HR3: “Ok ok, we’ll take that word out if you’re going to get pissy about it. Damn feminists and liberals! We’d better get some concessions in return!” It’s still a bad bill that should not become law.

Banking Corruption: Oh yeah, JP Morgan knew Madoff wasn’t quite legit, problem? Elizabeth Warren still needs to head the CFFB, and to hell with Timmy Geithner. Did you know that the highest paid guy at Bank of America is still Angel Mozilo? The same guy whose business practices cost B of A billions of dollars last quarter alone?? It sure would be nice if someone would enforce the law regarding foreclosure fraud.

I felt a disturbance in the Force, as if a million wingnuts’ heads exploded and were suddenly silenced: The Obama administration is investigating whether the Health Insurance Reform bill can be used to require insurers to provide — not just cover, but provide free — contraceptives and family planning services!

On the Tea Party: Excuse me, I seem to have fallen into some alternate universe where George W. Bush is talking sense, and more or less agreeing with Howard Dean. Does the letter J exist in this universe?

On the Economy: Google got 75,000 job applications in one week because the economy is soooo good, right? At least demand for temps is up (pro tip: I’ve gotten job offers working at temp agencies; they’re a good way to earn a little money, get your feet wet, and maybe end up in a working interview!). On the whole, the employment situation is still “a lighter shade of gray.” The number of people using food stamps is up 14% from last year. So yeah, there’s a teensy disconnect between Wall Street and Your Street.

Will of the People: We want alternative energy, and the jobs we hope will be created by it, and the lower power/fuel bills, and just maybe the cleaner world. This is one of those “excuse me, the center is way off there to the left” moments.

On Education: You know, maybe teachers would do a better job if they had a decent curriculum to work from! Oh, now that’s crazy talk; everybody knows a really good teacher re-invents the wheel every semester…..

In Closing: Republicans hate puppies; they hate the environment too (Nixon was a dirty hippie!!) homeless shelters sometimes break up families; anchor babies; Weird Al; China; and VW is trying to win me back after making the Jetta look like ass:

Following Up

Earlier this week, I said the FDIC was preparing for a too-big-to-fail institution to fail, and I speculated that Bank of America was the most likely candidate. Looks like bond investors figured the same thing.

Just yesterday I was on about an article suggesting that instead of blaming the banks for committing fraud, we instead blame the victim for not paying his mortgage. I wasn’t the only person who took offense at that ill-considered piece of garbage.

It’s been a while since we’ve heard much stink about property rights cases like Kelo vs. New London, where property was taken simply because somebody thought there was a market for something nicer. It turns out there are “environmental costs” to those developments, many of which are no longer viable since the real estate bubble burst.

And here’s one from way way back there. Somebody needed a study to show that small businesses create jobs? Next thing you know we’ll be studying whether or not things fall when you drop them.

In closing: Fox and Cablevision play chicken; etiquette schools; “honey, which can did you use?”; and “You’re much stronger than you think you are,” said Superman.

Make Me Mad

This morning I read a little item called “It’s time to stop blaming the lenders.” The essence can be told in less than one paragraph:

It’s okay that people made the mistake of borrowing more than they could afford. But is it really the lenders’ fault? Really? Maybe the banks didn’t deserve to be bailed out for their own poor judgment, but do the rest of us really deserve to bailed out for our own?

So let me make sure I’ve got this right. It’s our fault?

It’s Harry Homeowner’s fault that when he went to talk to Mary Mortgage-Broker, he actually believed her when she told him he could afford up to a $300,000 mortgage? It’s his fault that she lied to him, or pressured him into a pick-a-payment or adjustable rate mortgage he didn’t completely understand?

It’s Nicolle Bradbury‘s fault that she lost her job and — like so many other people — hasn’t been able to find another job that would allow her to continue making a modest $474 monthly payment?

It’s Joe Average’s fault that “everybody ought to own a house” propaganda combined with shoddy underwriting to create a housing bubble, even when the people who should have known it was a bubble said everything was fine?

It’s my fault that mortgage company executives were making insider trades?

It’s Darrell‘s fault that the mortgage company lost his paperwork not once, but five times?

It’s your fault that banks sold one another worthless securities based on your neighbors’ mortgages, and now sometimes can’t even figure out who owns what?

It’s our fault that banks hired scores of people with dubious qualifications to sign legal documents equivalent to swearing in a court of law, attesting that they knew things they couldn’t possibly know about our mortgages?

Is it also Nancy Jacobini‘s fault that her home didn’t look “lived in” enough for the goons hired by her mortgage company to change the locks? Is it her fault that he couldn’t be bothered to look in a window or knock on the door?

It’s Patrick Jeffs‘s fault that a mortgage company tried to take his home when he didn’t even have a mortgage with them?

This is nothing more than a pathetic attempt at victim blaming. It’s right up there with “she wore a short skirt so she deserved to be raped” and “he was walking at night; he should have known better.” The author should be ashamed of himself, but he honestly believes that it’s as simple as “no pay, no stay.”

In Closing: they want to build a steam powered computer; obesity is a threat to national security; venture capitalists are spending less money on new companies, which bodes ill for future job creation; average teen sends 3,339 text messages per month; girls can so do math; bad boys, bad boys, whacha gonna do?; health insurance reform isn’t over yet; overworked; and let me make sure I understand, the kids throw a wild party that got out of hand, and so you arrest the parents, leaving the kids to throw another party? Egads.

see more Lolcats and funny pictures

Do Not Panic

Yesterday, two elementary students were injured when a nutcase wearing black and spewing nonsense about the President opened fire with a gun.

Mark my words, by Monday some parent will be insisting that outdoor recess be abolished as “too dangerous.” The argument will be nothing more than “What if something like this happens again?? Better safe than sorry!”

But before we start herding all the children into the gymnasium, let’s look at some facts. According to these guys, there are over 38,000,000 elementary school students in the United States. The nice folks at the Census (plus my pocket calculator) say it’s only 37,811,132. For simplicity’s sake, let’s just say 38 million. This doesn’t include high school students.

Now then, how many students have been injured by guns at an elementary school? This is sufficiently rare that a Google search for “elementary school gun” turns up a collection of stories of kids expelled for having guns, toy guns, water guns, BB guns, stories of gun scares, etc.. Add the word “injured” and yesterday’s item fills most of the first page. If we go to Wikipedia’s page on “school shootings”, we find that in the last three years exactly 34 people have been killed in school shootings, including incidents on college campuses and high schools, including faculty and other adult victims. In fact, there have only been 27 school shooting incidents on elementary, middle, junior high, and grade school campuses in the United States ever, including yesterday.

So, we have a literal less than one in a million chance of being shot at school. You have more chance of dying today in a car wreck than being involved in a school shooting ever.

By way of contrast, an American child has a one in 3 chance of being overweight or obese, putting them at increased risk of diabetes, heart disease, sleep apnea, cancer, high blood pressure, high cholesterol, and a host of other life shortening problems.

You want to play the “won’t somebody think of the children” card? Send them outside for recess. Let them go play.

In Closing: Could you pass the citizenship test?; People other than me are calling the foreclosure mess fraud (perhaps the BAMTOR Principle will crumble and people will go to prison?); if everybody eats there then how come I never see them?; disconnected; demented; decline of business casual (it’s all your fault!); and smell like a monster.