Posted on 06/19/2010 8:16:10 AM PDT by Chunga85
The foreclosure crisis that continues to grip our courts in 2010 and that will only get worse in years to come all began in 2005, 2006, 2007, when the mortgage industry and Wall Street colluded with each other to engineer the largest financial fraud in modern history. The facts are simple. Wall Street Wizards figured out a way to monetize then trade billions of dollars in wealth when they figured out how to convert mortgages into currency. Dollars and stocks were regulated, but because mortgages were new currency, they were totally unregulated, unsupervised and completely subject to manipulation.
The biggest players on Wall Street, JP Morgan, Bear Stearns, Chase…they all got together to create larger pools of mortgage backed securities that they sold to investors nationally and abroad. THEY COMMITTED MASSIVE FRAUD UPON THESE INVESTORS BY LYING ABOUT THE FUNDAMENTALS OF THE COLLATERAL IN THOSE SECURITIES.
The loan originators at Countrywide, New Century, Argent and most of the other subprime players were submitting loans that contained false information from top to bottom. The appraised value of the homes were all lies, credit scores were all lies, income and employment….all lies.
THE WALL STREET WIZARDS KNEW THE INFORMATION CONTAINED IN THE LOAN FILES WERE LIES.…but they didn’t care because they hired credit rating agencies to lie to the end purchasers.
And now all these players that were lying and committing fraud from the inception of all these deals come into our courts of equity seeking redress from our local circuit courts. A fundamental concept of courts of equity is those seeking affirmative relief from courts must come into court with clean hands…they must be innocents in the matter for which they seek relief…..and the players seeking relief in courts across this state and indeed across the country are far from innocent.
(Excerpt) Read more at mattweidnerlaw.com ...
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK
PLUMBERS’ & PIPEFITTERS’ LOCAL #562 SUPPLEMENTAL PLAN & TRUST, et al.,
On Behalf of Themselves and All Others Similarly Situated,
v.
J.P. MORGAN ACCEPTANCE CORPORATION I, et al.,
Defendants
I grant you that there were a lot of people who committed fraud, but not every person who is being foreclosed is in that category. Some just invested at the top of the market, thinking prices would continue to go up. Personally, I blame it on the government because it was the government that created this bubble by a number of different policies. They subsidized the mortgage industry by making home interest deductible. They funnelled vast amounts of money into housing finance. They guaranteed loans. They bought loans, directly or indirectly. They changed laws to force lenders to make more mortgage loans. They set up the securitization system. Made implicit promises that they would underwrite losses of Fannie and Freddie. What they did not consider is simply that we don’t need that many homes. We’ve got lots of homes already. They’ve created a surplus of homes, and now they pull the rug out, and tell those who made investments based upon these bad policies that it is their problem.
There were people who had job transfers and wham! The housing market collapsed and jobs went away.
Government created the bubble and the burst with their WS donors.
Any idiot who wasn’t predicting this ten years ago, and lives in some fantasy that the housing bubble didnt start until the mid 2000s is an embarassment to his educators.
The “fraud” described here doesn’t involve the people who are being foreclosed out of their homes . . . it involves banks and other lenders who fraudulently packaged loans into securities and sold these securities off to investors. That’s why the victims in this fraud are the investors, not the homeowners. I’m sure the Local #562 is the plaintiff in the case documented above because their pension fund lost a ton of money after buying these mortgage-backed securities.
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What’s so fun about FR is the wide variety of opinions expressed and founded exclusively on political persuasions:
http://www.freerepublic.com/focus/f-news/2537514/posts
Bull sh*t.
You want to go find the people who engineered this crisis? - go look at the liberal/democrat delegation in Congress. That’s where the blame sits. Considering that it was unions who have done so much to keep dirty little fascists like Barney Frank and Christopher “I took bribes” Dodd in power, they have no-one but themselves to blame for the hits their pension funds took. This effing suit should be dismissed on the ground that the plaintiffs’ own actions are the proximate cause of their own injury.
Here is another...
Bear Stearns MBS Litigation
Practice Area: Securities Fraud
The lawsuit is brought on behalf of purchasers of Mortgage Pass-Through Certificates issued by Structured Asset Mortgage Investments II, Inc. (“SAMI”) and/or Bear Stearns Asset-Backed Securities I LLC (“BSABSI”) (the “Certificates”) pursuant and/or traceable to false and misleading Registration Statements and Prospectus Supplements issued between March 2006 and September 2007 (collectively, the “Registration Statements”). The lawsuit is pending before the Honorable Laura Taylor Swain in the United States District Court in the Southern District of New York.
The lawsuit alleges that the Registration Statements and Prospectuses incorporated therein contained material misstatements and omissions in violation of Sections 11, 12 and 15 of the Securities Act of 1933. The Certificates were supported by large pools of mortgage loans generally secured by first liens on residential properties, including conventional, adjustable rate and negative amortization mortgage loans. According to the pleadings, the Registration Statements included false statements and/or omissions about: (i) the underwriting standards purportedly used in connection with the origination of the underlying mortgage loans; (ii) the maximum loan-to-value ratios used to qualify borrowers; (iii) the appraisals of properties underlying the mortgage loans; and (iv) the debt-to-income ratios permitted on the loans. As a result of these misstatements and omissions, the Certificates were secured by assets that had a much greater risk profile than represented in the Registration Statement, and the Nationally Recognized Statistical Ratings Organizations (the “NRSRO” or “Ratings Agencies”) assigned superior credit ratings to the Certificates as a result of defendants’ failure to disclose the underwriting defects and appraisal manipulations.
http://www.cmht.com/cases/208/bear-stearns-mbs-litigation
LOL, deadbeats took advantage of lax lending practices so now they should get their houses for free? You’re a one-note samba around here. Why don’t you take your act somewhere else you freaking troll?
Like this guy.
Did you get that from Daily Kos? LOL!
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