Tag: foreclosures

Shark Jumping

Yes, that’s right. I’ve got another bad case of outrage fatigue. Hopefully I’ll be recovered in time for Blog Against Theocracy Weekend in April!

CSI — the original, the one in Vegas — has officially jumped the shark. It jumped the shark mere minutes after killing Justin Bieber! But no, one serial killer is dead, and another escapes prison immediately. Because everybody knows we need a good serial killer. To boost ratings, or make Vegas seem more dangerous than it is, or because some idiot in Los Angeles is too unimaginative to read the Review-Journal and the Sun now and again. Heck, they’re too lazy to watch the actual newscast that follows CSI in Vegas.

If they actually paid attention to Vegas news, you have stories and potential episode plots like these:

  • A cabbie was murdered last week.
  • Yesterday, a man lost control of his car, hit his head on a pole — which killed him instantly. His car continued moving and hit somebody on a bike. If that’s not a good CSI story, then I must have been watching a different show.
  • Gotta have a freaking serial killer? How about the person or people who are shooting people in their garages?
  • Like bombs? Still like garages? How about the guy who was killed by a bomb in a casino parking garage?
  • Earlier this month, we started hearing about results in an FBI investigation of local homeowner associations. It turns out this case has multiple attempted murders associated with it (according to an expert I talked to yesterday).
  • They could even make an interesting episode out of something “normal,” like a the death of a high profile doctor who practices cutting edge medicine.
  • There’s plenty of history to plumb as well. Perhaps a modern day Hole In the Wall Gang.
  • As many foreclosures as we have, and as many cases of “oops foreclosed on the wrong house” as there have been, what about a John Doe who turns out to have gone to change the locks on the wrong address?

So in less than an hour, I’ve got source material for a good solid half dozen episode ideas. I haven’t even needed that darned imagination of mine. What’s their excuse for bringing us little more than a stream of warmed-over sociopaths?

In closing: must be nice to be a bank executive; Germany makes money the old fashioned way, by making stuff; mind = boggled; more than just a few words about Japan; Chernobyl; it’s gonna be a long road to 2012; no job is better than a crappy job; duh; heh; truth; painted into a corner; sad; and, um, yeah Ezra.

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. In the fallout, some financial institutions fail.
  11. 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:

The End of the BAMTOR Principle?

Alas, I can only hope. However, I do know better.

Somebody’s actually going to jail for fraud at a mortgage company that caused another bank to collapse. I’m quite pleased that finally, somebody is actually being punished for a crime. But frankly, we need a lot more bankers being escorted off premises in handcuffs. The only way to break the BAMTOR Principle is to make it so Joe Banker tells his boss: “I can’t do that! It’s against the law! Don’t you remember that they arrested Bob for that?”

Elsewhere, Bank of America and Wells Fargo are whining that they may actually have to pay “material fines” for breaking the law in foreclosures. Poor babies. B of A may also have to pay investors a few hundred million dollars for delaying foreclosures because it turns out that some pesky activist judges wanted them to follow the law! It seems like the only way to make a bank pay up is when it’s paying another financial institution. Gee FDIC, I hope you’ve got a plan for what to do when one of these big boys finally collapses.

Finally, some pesky activist judges are finally saying to big institutions “Just because it’s standard practice doesn’t make it legal.”

In Closing: Americans without passports; a recap; another reason to quit smoking; Bring It; no TSA required; stagflation; the center is way off here, no, a little more to the left; worth reading; budget cutting their own throats; stop manipulating me!; that sounds easy; free in Tokyo (did you know Tokyo is 4 syllables long?); and you know I don’t generally do celebrity news, but this sounds like the setup for a re-make of Weekend at Bernie’s. What could possibly go wrong??

This Just In

51% of Republicans polled are batshit crazy still think the President needs to show his original birth certificate.

Now here’s the thing. Go ahead and call the records office of the county where you were born. Tell them you need a copy of your birth certificate. It might cost you $10. I am willing to bet that 9 out of 10 of you will end up with a fresh computer printout of your birth certificate, rather than a certified copy of the “original” one with the signature of the doctor who delivered you. So by wingnut standards, you can’t prove you were born in the United States.

Furthermore, Hawaii is part of the United States. If you don’t know this, you really shouldn’t be allowed to vote.

And don’t even get me started on Boehner and the Budget. As Ezra Klein said on NPR this morning, if anybody in Washington were serious about cutting the deficit, they wouldn’t have extended the Bush tax cuts!

In Closing: 7 kinds of malicious hackers; truth; crime victims need not apply?; Susie‘s right; the House may have shoved it through, but the Senate can still stop the PATRIOT Act from being renewed; please tell me this was no shock; taking Kate to task; collider; and lessons of Star Wars.

Too Mad to Write about Politics

Seriously. If I write about any of the crap spewing from Washington — whether from Congress, Timmy Geithner, or our gutless President who is more conservative than Nixon or Reagan — I’m likely to say something regrettable. So here’s what some other people have to say. As it is, I use a little more salty language than normal, so deal with it.

Here’s something on the U.S. Chamber of Commerce. You know, the group of fatcat businessmen that President Obama was begging to create jobs? What a bunch of “greedy fucks.”

Here’s what an 11 year old girl has to say about Gitmo. Notice where she admits that some of her information may be biased? I have hope for the critical thinking skills of the next generation, somewhat less hope that the War on Terror will ever end.

There’s a lot to be said about Egypt today. How about we start with a picture:
Bill Day

But really, this sums up my thoughts well.

There’s really a lot to say about the Anti-Woman forces calling themselves “Pro-Life”, but I’ll let Nancy start the parade. Remember, HR3 has a much wider reach than most people know. That’s even before we start talking about conscience clauses that would allow ignorant ******* to turn people away whose pregnancies can kill them. That’s before we talk about the fact that if these ******** had their way, women whose “babies” would be born with fatal birth defects would be forced to carry that corpse to term, endure dozens of well meaning people asking “Is it a boy or a girl? Have you picked a name??”, go through all the complications of pregnancy including the possibility of death in labor, all so some ******** can pretend he — and I do mean HE — is preventing abortions. People who think that is acceptable can rot in hell. Republicans want to cut family planning too, so we know they don’t really give a damn about preventing abortions.

Here’s something on states declaring bankruptcy to get out of paying people the retirement funds they were promised — and remember, state employees pay no Social Security taxes, so those pensions may be all they’ve got.

Speaking of bankruptcy, here’s something on how the bankruptcy “reform” of a few years back contributed to the foreclosure mess.

Nobody seems to remember that almost all regulations are put in place to protect somebody. Of course it’s dumb to say that regulations are automatically “job killing.” If the people whining about “job killing” gave a shit about jobs, maybe they wouldn’t be trying to cut and gut jobs programs! Here’s an urgent message for our elected officials: JOBS are still the number one issue on Americans’ minds. Put people to work, and some of the other problems — national deficit, social security, foreclosures — might start to fix themselves.

But this one really makes me mad. Ornery has it right when he calls the move to cut emergency funding for heating in the middle of a colder than average winter “so fucking tone deaf it boggles my fucking mind.” Heaven forbid we should raise taxes on people making, say, a million dollars a year when we can just freeze Granny to death! Who needs a death panel when you’ve got a blizzard? Whiskey, Tango, Foxtrot!

See how mad I am, and all I’m really doing is quoting other people? Over the weekend I promise to have something happier to say… about something.

In Closing: Kafka-san; tip of the iceberg?; junk fees and foreclosure; too lazy; secret air travel; pot of gold; is it snarky if it’s true?; the status quo is bad; on conservatives and the Bible; city-states; zero tolerance means zero thinking; vaccinate; the budget.

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:

Wanted: X-Ray Glasses

Watch this. It’s a man with a golf club, being shot to death in his own home by cops who had a no-knock warrant. He was known to have a drug problem, and was suspected of being a dealer. The county attorney called it “justified.” Do you hear the police identify themselves in that video?

Now then, pretty much every state in the union gives me the right to defend myself and my home. I live in a neighborhood where people try to deliver items to homes with the same number but a different street name on a regular basis. So I have a deadly serious question: When somebody is trying to break down my front door, how do I tell whether it’s a theoretical drug-addled group of gangsta neighbors, a bank trying to illegally foreclose on the wrong house, or Metro Police executing a no-knock warrant on the wrong address?

I’d really like to know, because in two of those situations I’m a hero for defending myself, but in the other I’m dead.

In closing: Todd the Bod; Facebook; really, Wal-Mart?; MC2; follow-up on an adoption; truth; and coffee.

Revisiting the BAMTOR Principle

Banks Always Make Their Own Rules, and this has been a banner week for demonstrating it!

You’ve heard of course about the lady who arrived at her second home to discover new locks and all her stuff missing, including her late husband’s ashes, right?

What about Deutsche Bank agreeing to pay a bunch of fines for helping wealthy Americans dodge their taxes?

Arizona and Nevada are both suing Bank of America over loan adjustments, and the Nevada AG has evidence that B of A has engaged in massive deceptive trade practices.

In California, Wells Fargo has been forced to admit that “pick a payment” was a bad idea and strongarmed into modifying a whopping 15,000 homeowners (sounds much more impressive if you say $2 billion in mortgages, doesn’t it?).

Meanwhile, the federal agencies that should be regulating the banks and protecting the citizens are protecting the banks from the citizens. The Federal Reserve has actually blocked new foreclosure regulations.

Even MarketWatch suggests that the banks have pulled on over on all of us.

We don’t just need rules for Big Banks, we need them to be forced to follow the law. Put a few bankers in jail, and I imagine the rest will be more likely to resist criminal activity.

In Closing: less American Pie; when Pat Robertson says to decriminalize pot, you know the War on Drugs is a failure; duh; security threat; Schneier; look, there’s never going to be a “get out of the security line free” card, so stop wishing for one!; gee, whoda thought?; good idea, wish somebody thought of it during the Clinton Administration; and idiot motorists drove through wet cement, getting stuck and delaying a project that would have been open in time for Christmas until probably Easter. Hope they’re real proud of themselves.

Derezzed

Two quick thoughts this morning and then the closing bits.

First, I did see Tron: Legacy over the weekend. Now, even the best reviews consider the plot a little bit difficult to follow. Without giving up any spoilers, I found this criticism to be unfair. Granted, I did myself a favor and popped the original in the DVD last weekend. What I think has happened is that to really appreciate what is going on requires more background knowledge than most of the audience had. You had to have some idea what happened in the original Tron. You had to have a passing knowledge of 2001. Being well versed in Star Trek helped. Remembering The Matrix Trilogy would be good. Blade Runner should be a movie you’ve seen. You had to know who Jules Verne was. In addition to a diverse literacy in Science Fiction, you also needed a moderate modicum of computer knowledge. Tron’s actions are explained by his one line: “I fight for the user.”

Jeff Bridges’s redux of Kevin Flynn draws strongly on The Dude from The Big Lebowski, and he adds surprising depth to the dual character of Clu particularly in the final scenes. Bruce Boxleitner does an excellent job reprising his role as Alan from the original Tron. Olivia Wilde makes a credible, innocent yet tough Quorra. Garrett Hedlund holds his own against an amazing cast, an amazing situation, and amazing effects. Oh, and the Daft Punk soundtrack freaking rocks.

My second quick thought is in regards to Social Security, a proven poverty-preventing program that does not contribute one red cent to the national debt, but that politicians would like to gut anyway. There is a nasty rumor that the State of the Union Address will include calls to gut the program: Click here to tell the President you think that’s a crappy idea.

In closing: “We can’t let 9 year olds have abortions!”; More “pro-life” hypocrisy; no, really, a 30 year old law designed to prevent discrimination did not suddenly cause foreclosures in the last 5 years; at least violent crime is down (until we peasants start getting desperate); I guess the Feds should keep an eye on all of us!; duh; health insurance is nothing like auto insurance; and how come Dubya couldn’t find just one of these guys to talk about at the State of the Union Address in 8 years??

On Being a Responsible Consumer

I grew up in a household that values the power of the consumer. I have never crossed a picket line. My father refused to so much as ride in a Mercedes because of what the company did in World War 2, before he was born. I’m not sure, but I think when Mercedes bought Chrysler, he sold his 10 year old New Yorker in favor of a Ford. He had purchased it used. I have at least forgiven VW for things done over 60 years ago.

Alright then. Just about the time that Wal-Mart (mostly) rehabilitated it’s corporate image, Target got itself in hot water with the liberal/progressive communities with ill-considered campaign donations, and stayed there after some Halloween ads that were considered in poor taste by Parent-Americans. Ok, fine, looks like Wal-Mart has moved to be the lesser of two evils, at least until the other day when they “teamed up” with the Department of Homeland Security to “catch terrorists” (remember, terrorists do “suspicious” things). Clearly, no officials from the DHS have ever actually been inside a Wal-Mart.

So where am I supposed to shop? Albertsons apparently wants to get rid of unions; is it alright to shop at Smith’s or Von’s? Will it be acceptable next week? Even if I could afford to shop at Whole Foods, there’s still the scandal surrounding their purchase of Wild Oats. I could go down to the farmer’s market, but unlike those amazing markets in cities like San Francisco, there’s just not a whole lot available. This of course assumes that the vendors at my local farmer’s market aren’t practicing the exact same contemptible business practices of the worst factory farms. “Hey Mr. Farmer! You don’t mind if I drive on out to your farm and see if your workers are legal before I spend $3 on onions, do you??”

And now I’m supposed to get rid of my Amazon.com account because they decided that the rest of their clients were more important than one controversial one? Screw that!

Since I am clearly not allowed to shop anyplace convenient or close, that means I’ll be using a bunch more gas: do I buy it from the guys who polluted Alaska, the guys who poisoned the Gulf of Mexico, one of many that is stirring up Middle East unrest, or the Venezuelan “dictator”? How do I reconcile my bigger “carbon footprint” with avoiding businesses whose practices I don’t like? Do I buy the electric car from Japan, or the American one that unlocks all my doors and puts my life in danger every time I put it in park?

Things get even worse if you want to boycott products by a certain company. Let’s say for the sake of argument that Proctor and Gamble has done something you disapprove of: here’s everything you must avoid if you want to vote with your wallet! You’ll have an easier time getting by without Colgate-Palmolive’s products. If you decide you won’t give money to P&G, Colgate, or Unilever, give up any hope of cleanliness. Ever. We’ll just call you Pig-Pen. Unless you prefer “Dirty Hippie.”

And let’s not get started on banks! Even if you are willing to endure the hassle of changing banks, the only way to be sure your new bank won’t be taken over by one of the big players is to give up and bank with a “too big to fail” institution and just live with the BAMTOR Principle. It’s worse with mortgages: you can’t control who buys the note, you can’t control who your servicer is, and you may not be able to stop them from claiming you owe money even if you don’t.

So how exactly am I supposed to “vote with my wallet”?

I’m deadly serious about this. It has literally gotten to the point where I cannot avoid doing business with companies I don’t like. How can I possibly stick it to the Oligarchy when I can’t go a day and a half without giving them my money or using their products and services?

When Ted Kaczynsky starts to look sane, the nation has gone crazy.