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So it seems that Bank of America and MERS can’t make their story stick in Oregon. The Courthouse News Service has an article under Dee Moore’s byline Ruling Challenges Ore. Foreclosure System that shows that Oregon law may make the securitization house of cards fail a bit further. Bank of America and Mortgage Electronic Registration Systems broke the law when they failed to . . . → Read More: Bank of America and MERS in trouble in Oregon HuffPost has an article on the scare tactics of Deutsche Bank against one of the acknowledged experts in foreclosure fraud: Ms. Lynn Szymoniak. She has fought her own foreclosure, and it was thrown out of court once already. But now Deutsche has named her son as a co-defendant in the foreclosure, even though he is not on the note and has no interest . . . → Read More: Deutsche files harassing foreclosure case against son of foreclosure activist I love reading Yves Smith at Naked Capitalism…. if only because she can come out with these type of quotes: this proposal is just another example of throwing taxpayers under the bus to save the banks from suffering the consequences of their incompetence and criminality. The article in total is a great indictment of the Administration’s program to get rid of Freddie and . . . → Read More: Throw the Taxpayers under the bus RJ Eskow wrote a piece in the Huffington Post on the Administration’s proposal to clean up the foreclosure mess. I will comment on it separately later. But I want to use it to deal with a long conversation I had with a friend about how the ideology from people on the right seems to try to blame a liberal conspiracy of Fannie/Freddie and . . . → Read More: Freddie/ Fannie-Barney Frank Liberal conspiracy to sell poor people too much house. Bloomberg reports that it seems finally jail terms are being given for mortgage fraud. Though reading between the lines it seems this guy was an originator who falsified mortgage documents that he passed on to Fannie. It isn’t clear if consumers were caught up in this fraud as well. The former president of a New Jersey-based mortgage company has been sentenced to 14 . . . → Read More: NJ Man sentenced to jail time in mortgage fraud scheme Well it seems that the lawyers in Florida are the first to taste the wrath of the courts in Foreclosuregate. The Palm Beach Post notes that a local lawyer was cited in contempt of court for presenting fake documents. It seems that they were declared lost, then filed later, then apparently were for another property. Laughable. A day after federal mortgage giant Fannie . . . → Read More: Flordia Lawyer cited for contempt of court in Foreclosure fraud Dr. Philip Neches has an analysis at the Huffington Post of the Bank of America (BAC) announcement that they will separate 1.3 million of their mortgages into a new entity. This is a “good bank / bad bank” strategy. Bank of America will now try to resolve the loans that it places in the bad bank at low impact on its own balance sheet. I wonder how it is going to do this. IF the entity becomes separate from BAC they could take out a short on it though… or they could securitize the entity in tranches and sell off the more toxic stuff to some idiots. If they could buy a AAA from some supine rating firm, then they could get a good price for the securities. Does this sound familiar? . . . → Read More: Legacy entity slieght of hand at Bank of America Pro Publica posts a nice article on the failure of the Administration to enact legislation enabling courts to modify the principal and terms of a primary residence mortgage in a bankruptcy. Before he took office, President Obama repeatedly promised voters and Democrats in Congress that he’d fight for changes to bankruptcy laws to help homeowners—a tough approach that would force banks to modify . . . → Read More: Obama did not reach out to help homeowners The endgame of Foreclosuregate is starting. According to the Wall Street Jounal Bank of America through its purchase of Countrywide, and Countrywide’s ex-CEO Angelo Mozilo are being sued for hundreds of millions of dollars in fraud allegations. Separately, Shashien Nasiripour at the Huffington Post reports that the Congressional Financial Crisis Inquiry Commission will call for prosecution of fraudulent behavior on the part of principals on Wall Street. Obviously these are part of the first moves by the investor class to take to task the predatory and fraudulent mortgage origination practices that led to the meltdown of the global financial system. This will play out over many years in the courts and in Congress . . . → Read More: Bank of America (Countrywide) sued by investors for fraud It seems according to Reuters, that Congress is ever divided. The Financial Crisis Inquiry Commission has failed to produce a consensus explanation of the 2007-2009 banking debacle, as it was asked to do in May 2009. Not two partisan viewpoints, nay that would be mere bickering, we will have three reports (or Thrice, if you follow Conan…). While I love debate that makes both our legislators and the people who have elected them to represent them think hard on the issues, the lack of closure in many of the current debates along what Reuters describes as familiar Washington “ideological fault lines” is worrying for the Republic in my humble opinion. . . . → Read More: The bludgeoning of the people by the people for the people – Oscar Wilde |
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