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Illegal Foreclosure Epidemic
Robo-signing foreclosure paperwork is a federal crime, but no bank or banker has even been charged.
Two-year-olds often go running around the house too wildly and crash into something. They get an "ouchie" and fall down crying, but they learn from it.
That's the virtue of the "ouchie" that Bank of America, Goldman Sachs, JPMorgan Chase, Wells Fargo, and other big financiers got last year when they ran into the law after racing wildly through home foreclosure paperwork. They were caught falsifying thousands of documents and taking illegal shortcuts that were causing innocent families to lose their homes. They had to pay fines, make restitution, suspend foreclosures, and pledge to clean up their act. But at least they learned their lesson.
(Banksy image via Finger Food/flickr)
Oh, wait — these aren't two-year-olds. They are wily bankers, and the only lesson they ever seem to learn is that shortcuts can be profitable — as long as you don't get caught. But once again they've been caught rushing through foreclosures, using the same old scam called "robo-signing."
To foreclose on someone's home, an authorized bank employee must sign the foreclosure document, swearing that the facts in it are true. But that requires hiring people to review each case. To avoid that cost, they take an illegal shortcut by signing the name of someone who has not read the document and might not even exist.
In one Massachusetts county, for example, the signature of "Linda Green" has recently appeared on some 1,300 foreclosures. Curiously, her signature was written in many different styles, and she had many different titles. Also, there's no Linda Green presently working in the mortgage banking company involved. Meanwhile, state officials say that robo-signing is, once again, "an epidemic" all across the country.
It's a federal crime to do this, yet no bank or banker has even been charged. Until we put a CEO in jail, the banking barons will never learn their lesson.
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33 Comments so far
Show AllThe corporations run our government, and every aspect of this country. It is a plutocracy, not a democracy. Everyone knows - or should know - this by now. It is blatantly obvious. Therefore it should not come as a surprise that the laws of the country do not apply to the corporations, since the entire purpose of the U.S. federal and state and local governments is to keep the corporations as profitable as possible. That is the sole function of the U.S., at every level, in every policy decision, in every law that is written. Laws that hurt corporate profit - like fines or charges or arrests, causing negative publicity and possible loss of profit - are thus not applied to corporations.
Pretty simple math folks.
that pretty much sums it up demon
except we are a republic not a democracy everything else you say is spot on
Actually, America is a 'financial colony'. Here's an excellent summary in 9 minutes:
www.realecontv.com/videos/central-banks/what-happened-to-america.html
We are a republic in name only, and have been as much for many years. A republic is rule through representation, not rule by PACs, big corporate checks, and special interests. The government is completely up for sale by both parties who are, for the most part, vessels of corporate will. That all amounts to little more than a corrupt shell republic. At the rate we are going, the US will be an enormous banana republic in ten years.
None of this will change without a mass movement, but if the latter does come, the corporations will just decamp to friendlier climes as many already do when it comes to avoiding taxes here and sending jobs there. And I would not be too sure that such a movement would be progressive, although certain policy elements could be. I still believe in demonstrating and giving money, but I am not optimistic. If anything should have provoked a mass movement, it is the national foreclosure offensive. But nothing happens.
Finance (casino) capitalism reigns over a real economy that has been declining for 40 years, and working class wages with it. We have been sold out and are still expected to be cheerful and docile about it, and above all, at all times and in all places and in any circumstance, to blame ourselves first. Otherwise those foreclosed on are not responsible adults or patriotic Americans, even if they are living in a shelter or on the streets.
plu·toc·ra·cy /pluˈtɒkrəsi/ Show Spelled[ploo-tok-ruh-see], noun, plural -cies.
1. the rule or power of wealth or of the wealthy.
2. a government or state in which the wealthy class rules.
3. a class or group ruling, or exercising power or influence, by virtue of its wealth.
fascism (ˈfæʃɪzəm)
1. Any right-wing nationalist ideology or movement with an authoritarian and hierarchical structure that is fundamentally opposed to democracy and liberalism
2. Any ideology, movement, programme, tendency, etc, that may be characterized as right-wing, chauvinist, authoritarian, etc.
Hmm....sounds kinda familiar.....can't quite place it......
Um, the definition of a republic is a government without a king. The two terms are not contradictory. I don't know why Republicans keep saying that as if it proves something. We are supposed to be a representative democracy, with indirect voting. You can be a communist country or have no elections at all and still be a republic!
As in the Union of Soviet Socialist Republics...
That's right. There is no rule of law anymore (except for the little guy). Without the rule of law, there is nothing to be loyal to anymore. America disappeared. The sociopaths rule and the politicians are their whores.
aye.
aye II.
We can be loyal to ourselves instead of an idea.
Corporations are often foolish, and the bigger they are the more foolish they get. Employees and managers try to get brownie points by not adequately staffing, not doing the job as its legally required, they cause additional distress for borrowers who are already in a desperate financial situation, then they get called on it and it costs the corporation far more than if they had done it right. Yes, legal remedies are the only thing that will help them to wake up.
Some rob you with a six-gun, some with a fountain pen.
As a penalty they pay fines and suspend foreclosures? How about this--for every illegal foreclosure, restitution be paid directly to the mortgagee by cancelling the mortgage and granting them complete ownership of that property.
Works for me.
It's becoming trite to say so, but this circumstance again brings to mind the irony and doublethink abiding in the divided mind of complacent, unreflective citizens.
There is no end of outraged and sanctimonious hand-wringing, finger-wagging, and fist-waving when young citizens run amuck and violently misappropriate or wantonly destroy property and heinously assault innocent bystanders.
Such things are intolerable and "will not stand"! Swift, draconian response is deemed self-evidently right and proper, and is welcomed and applauded by decent, common-sense folk.
But a nefarious scheme for massive wholesale robbery and theft like "robo-signing", conceived and executed by a consortium of corporations with political allies and law enforcement either quietly enabling or passively winking at the swindle, raises hardly a whimper of protest or discontent.
To the extent that ordinary citizens are aware of this kind of systemic organized crime, the default response is one of more or less throwing up one's hands and saying in effect, "Yeah, it's crooked and rotten all right, but what are ya gonna do?"-- with a little gratuitous blaming of the victim thrown in for good measure.
"It's a federal crime to do this, yet no bank or banker has even been charged."
In other words, the "Dept. of Justice" is utterly corrupt, grossly incompetent, or both.
Is Hightower really still a Democrat? This is becoming ridiculous - or really, pathological.
If you're caught:
Robbing a home: Jail.
Stealing thousands of homes: A fine and restitution.
It's the criminal version of economy of scale.
Not sure why this foreclosure process is so complicated. If you are renter and stop paying you get evicted. foreclosures should be the same.
Miss one payment, get a reminder letter.
Miss two payments, get a second reminder letter and courtesy phone call.
Miss the third payment, strat looking for a rental place cuz the movers are gonna show up soon.
Simple, easy and the no dragging on for months on end. House goes back on the market, someone else buys it, prices get adjusted in the process and everyone moves on.
There's more money to be made by complexity.
You are a tad misinformed. Banks are foreclosing on homes that are current on payments. Some homes are paid off and the banls repo them.
Banks also don't even own the mortgages. They have sold them. Do some research before you start typing, mmmkay?
Did you not read what this man said.......the banks may not have a legal right to evict so we must slow DOWN.
Surely a financial sharpie like yourself can see why the process does not proceed in this fashion. Imagine the numbers of houses being dumped on the market in a relatively short time frame as a result of robosigning. Then imagine the hit that housing prices would take as a result. The real estate people wouldn't be too happy, would they?
Is it not more reasonable to bleed them onto the market over a period of time, and hope that the housing market stays relatively stable for our friends the developers, real estate agents, and financial people?
Of course this would mean less draconian consequences for those forced out of their homes-- a point of view which seems to motivate the thinking of some. I'm sure you wouldn't count yourself among such short-sighted, fiscally irresponsible types... ; )
Florida's newly-elected Attorney General, Pam Bondi, is doing all that is in her power, and within the power of her office, to assist and protect the robo-signing lender-banks, including, but not limited to, driving out the fraud investigators in her office who helped to bring robo-signing to national attention. I would assume that similar things are going on in other Tea-Party-minded states such as Wisconsin, Ohio, Michigan, etc. And I'm sure the good people of those states are comfortable in the knowledge that their votes saved their state from rampant socialism.
An aware, informed and involved electorate is the backbone of our democracy.
Michael F -
Hurray for your state AG! But -
"And I'm sure the good people of those states are comfortable in the knowledge that their votes saved their state from rampant socialism."
Their votes don't mean shee-it!! The corporations control the candidates, courts, media exposure and voting machines!! God help you, man! This old, granny schoolteacher has a better grasp of reality. Guess those states don't have fire depts, public libraries, utilities, schools, etc. cuz that would be SOCIALISM.
I think the quote of the year should be our republican congressional representatives answer to the question "Why won't you rescind the Bush tax cuts and end loopholes for the wealthiest Americans?" Ann Marie Buerkle answered : " Why do you want to punish the rich?"
There have been several instances of banks "foreclosing" on property that was actually owned (with NO payments due at all) by the residents. It took those residents quite a bit of work to prove that the foreclosure was illegal...even when they had the deeds to the property...said deed stating that there were no monies owed. Additionally, there was a terrible state of granting mortgages to people who really did not qualify, but the banks wanted the money and so gave out those mortgages. Also, there is so much "fine print" in mortgages that most people do not understand and indeed are encouraged to ignore. This housing/foreclosure debacle has many sources, not the least of which was the deregulation of the banks (said deregulation instituted primarily by Republicans with the occasional Blue Dog Dem). It is time to re-regulate the banks (heavily) and work on ending corporate personhood. If we do not do so, we'll ALL be living in the streets....even the self-righteous nay sayers amongst us.
Unless the Department of Justice is dysfunctional, it needs to prosecute these white collar criminals. The populace can only tolerate a two-tier, unjust, unfair justice system for so long before there is civil unrest. Unless the DOJ is inept, it needs to do its job of restoring the rule of law and equal justice under the law before that happens.
The Department of Justice is dysfunctional.
The Department of Justice is inept.
The Department of Justice is watching you.
We need an Eric Holder cam. How DOES that guy spend his days?