I would venture to say that most of the mortgages that were sold to Fannie Mae and Freddie Mac used this MERS to transfer the loan to them. Looks like a big mess- I am sure that Congress will work with the banks and help them out on their little game of fraud they orchestrated to avoid paying taxes and transfer fees.
Banks face foreclosure fraud crisis that could give you a free home
by moshe 29 Replies latest social current
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beksbks
What about the folks who have been foreclosed on in ERROR?? Just do a search for Bank Foreclosure Errors, and see what comes up. Screw the big banks and Wall St. They are what put us all here in the first place.
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Mary
They simply bought another house at an incredibly depressed price for cash after the real estate market collapsed, moved in, and then defaulted on their current house.
And who was (at least partially) responsible for the market collapse in the first place? The U.S. banks. Who got billions of dollars in bailout money from the Federal government which did nothing from preventing the financial markets from spiraling down the drain? The U.S. banks. Who was in such a frigging hurry to make obscene profits in record breaking time that they far overstepped the boundaries of what was 'responsible lending'? The U.S. banks. So it's okay for the banks to act like a bunch of sleazoid pimps Saturday night on Main Street which cost millions of Americans their jobs, homes, savings and retirement nest, but it's not okay for the average Joe to try and get their mortgage for half price through a loophole?
I have zero sympathy for them and hope Moshe gets 50% off his mortgage.
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sammielee24
The game was rigged. As for MERS - right now there are some class action lawsuits against the banks etc for fraudulent activity for the purchase and selling of the mortgages as investment vehicles..people are being advised by lawyers not to vacate until there is proof of title by the lender. Banks are trying to foreclose on people without proper documentation..investors are suing banks for fraud in selling the loans..and then we have the title insurers and so on all ponying up. To add insult to injury, a lot of people trying to work with banks to remortgage loans have been ignored, shuffled off or delay tactics imposed that result in them being evicted - since the game was rigged from the beginning, the loss was always going to be on the bottom and not the top. Ethics and integrity? Honesty? Kind of like the jobs market - the people who did all the 'right' things are the ones paying the price now. Whether or not you like the writer below, she provides just one of thousands of personal examples of how the system has been and will continue to be rigged ...sammieswife
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This text by Catherine Austin Fitts is a response to an article entitled “The Fed Didn’t Cause the Housing Bubble” by Alan Greenspan, former Chairman of the Federal Reserve, published in the Wall Street Journal
In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attributes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me.
My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book, Dillon Read & the Aristocracy of Stock Profits (http://www.dunwalke.com).
One story, for example, is the following:
“In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees — most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”
From: “Sub-Prime Mortgage Woes Are No Accident” (http://solari.com/news/announcements/08-07-07/)
One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in counties throughout the world as well as in US communities.
Of all the actions that the Federal Reserve took to engineer this housing bubble, the one that I would note is Mr. Greenspan’s efforts to pacify Congresswoman Waters regarding allegations of government sponsored narcotics trafficking at a time when open Congressional hearings would have contributed to an important discussion of the operations engaging in mortgage fraud in minority communities. See, “Financial Coup d’Etat,” Chapter 16, Dillon Read & the Aristocracy of Stock Profits which was written in 2005 and published in April 2006, drawing from an article I first published in May 1999.
“On December 18, 1997, the CIA Inspector General delivered Volume I of their report to the Senate Select Committee on Intelligence regarding charges that the CIA was complicit in narcotics trafficking in South Central Los Angeles. Washington, D.C. ’s response was compatible with attracting the continued flow of an estimated $500 billion–$1 trillion a year of money laundering into the U.S. financial system. Federal Reserve Chairman Alan Greenspan in January 1998 visited Los Angeles with Congresswoman Maxine Waters — who had been a vocal critic of the government’s involvement in narcotics trafficking — with news reports that he had pledged billions to come to her district. In February Al Gore announced that Water’s district in Los Angeles had been awarded Empowerment Zone status by HUD (under Secretary Cuomo’s leadership) and made eligible for $300 million in federal grants and tax benefits.”
Alan Greenspan is a liar. The Federal Reserve and its long standing partner, the US Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’etat. Our bankruptcy was not an accident. It was engineered at the highest levels.
Your publication of Greenspan’s breezy and bogus history of the housing bubble insults your readership -
JeffT
Screw the big banks and Wall St.
Speaking as some one who has spent a long time in financial managment, there is a very good chance we are all f****d if this isn't handled right.
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moshe
JeffT- could this Bank mortgage fraud be the start of a real depression? It won't take much to send us back into the abyss.
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JeffT
Moshe - IMO, yes. Think of 1929. Things were already shaky. When the stock market crashed a LOT of money just disappeared in a few days. If it is determined that nobody knows who is holding those notes a lot of money is going to disappear. That can't happen without consequence.
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moshe
Wow- today a bank owns $100 million in mortgage backed securitized bonds and next week they find out they are worth pennies on the dollar. It could be a blood bath. Pension funds could be hurt, too.
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zarco
Moshe - certainly many mortgages were/are not properly documented by the banks. Mortgage procedures were written for a time that required paper and signatures. By shortcutting procedures, the banks will have a difficult time quickly foreclosing on a property. However, homeowners will not owe less because of the lack of a paper trail. The remedy for homeowner that had its house foreclosed upon is to pay what is owed. The remedy for the banks is to properly document the mortgage which will take time but is doable.
With regard to decreasing house prices and the resulting lower mark-to-market of the banks portfolio of loans - this will result in a sever bank crisis as the banks will not have sufficient reserves to cover such losses (decreased portfolio value). This will cause many banks to fail and at minimum cause most banks to stop or limit loaning new money.
The lack of properly documented mortgages will not result in any significant benefit to any homeowner other than delaying a foreclosure or by a bank modestly adjusting the amount owed or terms of the mortgage.
Best,
zarco
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BurnTheShips
Burns, the banks were just in too much hurry to make fast money.
This isn't just about the banks.
In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,”
Greenscam is full of shit. If I were forced to point at a single person responsible and no one else, it would be Greenscam.
Alan Greenspan is a liar.
Yes he is, and so is Helicopter Ben.
The Federal Reserve and its long standing partner, the US Treasury, engineered the housing bubble, including the fraudulent inducement of America as part of a financial coup d’etat. Our bankruptcy was not an accident. It was engineered at the highest levels.
Never attribute to malice that which can adequately be attributed to stupidity. The housing crisis was created by actions at the highest levels. The Fed. The Treasury. Various Administrations. And Congress.
We thought we could get something for nothing..higher home ownership and an expanding economy..by playing with the currency and mandating risky loans. That was compounded by an incredible myopia in the private sector regarding the security of the debt instruments.
This problem is not going to go away FOR YEARS.
Helicopter Ben's Fed now plans to pump hundreds of billions more into the economy in order to somehow prop up home prices.
What a joke.
The Fed has little control over where the money goes after it exists the factory. It will raise prices on many things....except what they want to jack up most: real estate.
BTS
