Fraud and Fortune

Some thoughts on Foreclosuregate

Links

The Second Leg Down of America's Death Spiral
http://gonzalolira.blogspot.com/2010/10/second-leg-down-of-americas-death.html

Man Who Had No Mortgage Faced Foreclosure Anyway
http://www.bloomberg.com/news/2010-10-08/man-who-had-no-mortgage-faced-forecl...

Big Problem for Banks: Due Process
http://www.nytimes.com/2010/10/23/business/23nocera.html?_r=1

Oh, It's Those E-Vile Borrowers! Oh Wait... It's Not?
http://market-ticker.org/akcs-www?post=170312

Why Did Banks Give Home Loans to People Who They KNEW Couldn't Pay?
http://www.zerohedge.com/article/why-did-banks-give-home-loans-people-who-the...


Charting the Foreclosure Crisis's Far-Reaching Consequences
http://www.dailyfinance.com/story/investing/charting-the-foreclosure-crisiss-...


Ohio Secretary of State Jennifer Brunner on the Foreclosure Crisis Ally Financial Lawsuit
http://www.youtube.com/watch?v=OkFi8J94c3o

COP Hearing
http://www.youtube.com/watch?v=cVTfsOPMcns&feature=player_embedded



Music used under Creative Commons License
http://ccmixter.org/files/scomber/27628


Breaking news; October 29, 2010

(COLUMBUS, Ohio) — In response to Wells Fargo's statement acknowledging that it "made mistakes" and that affidavits
in 55,000 foreclosures filed by the bank did not "adhere" to the law, Ohio Attorney General Richard Cordray offers
the following statement:

"The big mortgage servicers and financial firms continue to demonstrate their belief that they do not need to play
by the same rules as everyone else who uses our court system. The suggestion by Wells Fargo and its colleagues at
several other national firms that they can cure fraudulent testimony by simply refiling new affidavits and
continuing to proceed toward foreclosures shows they do not recognize the seriousness of the problem they have
created. There is no simple 'do-over' for false testimony that will be likely to avoid sanctions and penalties
imposed by the courts. Their brazen efforts to minimize their financial exposure by sweeping these problems under
the rug are an insult to the justice system in this country. These disclosures by Wells Fargo will now become the
focus for a new prong of our on-going investigation."

Category:

News & Politics

Tags:

• Foreclosuregate

[looseal22]

@ 3:30 So the buyer went along with the fraud. Hummm

@ 6:30 Each time the mortgage changes hands...isn't there a fee to pay to local gov't that registers the ownership? Tax evasion...hummm.

@ 7:35 Borrower doesn't owe money? Are you sure? Thought it was only the foreclosure that was stopped.

@ 11:15 excellent ending! Good post Doug.

[GoatHollow]

@looseal22 1.) Buyer was at fault as well as bank, both committed a class d felony.

2) Yes it's called a title fee, but not considered a tax

3) Yes in several cases a Judge has dismissed the mortgage(Wouldn't matter anyway, non-paying borrower that can't be foreclosed on, is same as one that doesn't owe)

4) Thank you my friend!

[stayingawake20]

Good Vid GH, that pretty much sums it up, but they'll never let all those loans just go away. Too many politicians, judges, and Lawyers in their pockets. They'll find away around it, then it will be business as usual! You pay you stay, you don't you won't!

[GoatHollow]

@stayingawake20 I believe you are right Sir. It'll be interesting to watch how they do it, without guillotines being erected.

[LoveThePacificNW]

Hello! I know of several 100 thousand people in the US being foreclosed on even though they have been making their mortgage payments consistently, and I am one of them. If you don't believe it, then you are not educated. Do the research before you pass judgement on your neighbor who is being foreclosed on.

[WGS669]

MERS was used specifically to make efficient and to obscure both the legal and the illegal use of assets pledged to MBS. The only way to expose the fraud is for the investors who bought the MBS bonds to do something in a court of law. If they can find one. Of course, a good many of those investors were insured and/or complicit and can be expected to remain silent. Instead, expect a "crisis" and a full nationalization of depository banking. The fraud will continue.

[msamour]

@looseal22 they won't be getting titles. People were just the tool for money creation. The banks have used the people whether they had the ability to pay or not. The banks never intended on all these house being paid by the borrowers. It was mostly CDS's that were taken as a bet the mortgages would default. In some cases when they did default, the payout was 30 to 1. But the borrower still has to repay. It's complicated.Peace.

[Rizky06]

The insurance companies throw their hands up and say 'we can't pay'!!! No problem, the mortgages are FHA backed so since we linked huge pension funds and overseas Treasury/Sovereign debt buyers to these credit default swaps. We will force American Taxpapers (actually their great grandkids) to pay off all of these toxic insider bets.

[Rizky06]

After you have this bundled AAA rated toxic waste you dump them on some pension managers or overseas investors. You make sure you give them a little kickback or some favors. Now they are securitized and sold off to suckers in the system. What do you do next? You place multiple credit default swaps bets that these mortgages will never perform. By doing this you can make $9 million betting against that a $300K mortgage will fail.

[Rizky06]

The quants (algorithm) masters on Wall Street became masters at shorting stocks of companies that they knew through insider information would not do well. Well, they decided to set up a system to short distressed mortgage owners through credit default swaps. All you have to do is find someone who can't pay their mortgage and get them to sign on the dotted line. You then collect stacks of these toxic mortgages and get some paid off yesmen-yeswomen rating agency to rate them triple AAA.

[VincentVonGoat]

wow. excellent & comprehensive vid. I've been outta touch with the news && didn't even know there was "foreclosuregate" going on.

[FreeLovingAmerican]

Very well orchestrated. Thank you for sharing.

[katiatomsk]

@looseal22 Very good question about clean titles. I think I need to look at mine again and make sure.

[katiatomsk]

Thank you for explaining that. I understand that people get in over their heads and borrow too much. I believe in personal responsibility. We personally live mortgage free.

But, for the banks to get away with fraud is criminal. Then they get a pay off from us, the US Tax payer that they defrauded. How many ways have they screwed us? Thanks for explaining that.