Feds can remedy mortgage me$$

NY Post ^ | October 16, 2010 | JONATHON M. TRUGMAN

[Scanian]

It's a house divided that may not stand. A large proportion of the "fraudclosure" mess may lie at the feet of Fed Chief Ben Bernanke and Treasury Secretary Tim Geithner.

There is currently a multi-bank nationwide moratorium on foreclosures as the banks wrestle with the fact that there has been widespread use or misuse of "robo-signing," the signing of an affidavit or attesting to the factual correctness of what was purportedly verified without actually having read it.

So those who invented small print didn't have the time or chose not to take the time to read it.

To further complicate matters, the banks seemingly have trouble producing the mortgage notes they are foreclosing on. This is required by evidentiary procedures in court-sanctioned foreclosures. In many circumstances they are unable to verify the owner of the mortgage bond or are unable to produce the actual note.

So they are attempting to foreclose without actual proof of ownership of the mortgages.

It gets better -- or worse, depending on how you look at it. The most under-discussed point in this debate is note ownership. Guess who is the likely owner of many of these mortgages?

The federal government, through those fine institutions Fannie Mae and Freddie Mac.

[Blueflag]

**WHY** does no one get FIRED for this kind of screw up. (at Fannie and Freddie)

I am so frickin’ tired of “mitakes were made...”

Well WHO made them, and who was responsible for managing those people??

[Blueflag]

**WHY** does no one get FIRED for this kind of screw up. (at Fannie and Freddie)

I am so frickin’ tired of “mistakes were made...”

Well WHO made them, and who was responsible for managing those people??

[agere_contra]

If they don’t have the note, then they are NOT the owner of these mortgages.

And if there proves to be no note, then there is no mortgage.

I don’t think the American people will bail out these toxic organizations a second time.

[Kozak]

Naw. They get a big bonus. F up and move up....

[Jim Noble]

**WHY** does no one get FIRED for this kind of screw up. (at Fannie and Freddie)

The performance review of the responsible parties happens in 15 days, and you get to vote.

Make sure you do.

[9YearLurker]

Fired? How about tried for fraud?

[BobP]

From the article:
Guess who is the likely owner of many of these mortgages?

Rep. Barney Frank denounced financial warnings, saying he had no 'concern about housing.' How dare you oppose suicidal loans to people who can't repay them! The NY Times reported that Fannie Mae and Freddie Mac were 'under heavy assault by the Republicans.'

This Marxist putz belongs in jail.

---

Fannie Mae and Freddie Mac will cost the U.S. government $53 billion over the next decade under so-called 'fair-value' accounting, the Congressional Budget Office (CBO) estimated on Thursday, September 16, 2010.

Blessed are the young, for they will inherit the national debt.

[Mouton]

I am laying odds that somewhere in this fiasco Jamie Gorelick will show up representating an entity tied to this fiasco. She was in a senior management position at Fannie during the days of Raines’ tenor of the biggest financial fiasco at Fannie until the current one. She is a fixer. Don’t forget she reped for British Pet in the deal that pretty much removed them from the radar under (O)bama. Anywhere you find her fingerprints, you find a crime scene IMO.

[livius]

Personally, I think this is actually all a device to let the Federal Government end up as the owner of much of the US housing stock. It’s another Barry take-over.

[Texas resident]

“Guess who is the likely owner of many of these mortgages...The Federal Government.”

Guys this is no accident.

The obama govt will own a whole big pile of houses that Amercians live in and pay taxes on. And these benevelot maoists are such wonderful people aren’t they. No potential abuse of power there.

[Attention Surplus Disorder]

Tell me about it. Name for me, if you can, a woman who has singlehandedly created more damage for the US in her various careers, than Jamie Gorelick. She is a one-woman national wrecking crew.

[qwertypie]

All this article does is reinforce the fact that, in 99.99% of the cases, there exists no actual dispute about ownership of the properties. And only that courts require slogging through old-fashioned paperwork in an increasingly paperless society.

Given enough time, mortgage holders including Fannie Mae will be able to produce that paperwork. At monumental cost, in order to satisfy the paranoid. Meanwhile, the American economy will remain a trainwreck, because the legal system is still back in the quill and parchment era.

Also, in the interim, lawyers will become more enriched with this windfall of legal noodling, and deadbeats will remain in houses where they morally don’t belong. And people wonder why this country has ground to a halt?

[Texas resident]

“Lawyers will become more enriched......And deadbeats will reamin in houses where they morally don’t belong.”

That’s democrat constituant service there.

[Attention Surplus Disorder]

Of course they can. They can create new law, the terms of which shall be written by and will favor the banks that created this mess in the first place. Black-letter law instances of financial fraud will morph into do-over “mistakes” while borrowers will face heightened requirements, fees, and legal consequences. Losses shunned by the major banks will be made good by the Fed and turned into multi-year-GDP-sized debts and currency dilutions engineered to slough off onto the taxpayer. And the US will enter a period wherein real estate and MBS securities litigation will constitute the greatest single so-called productive output of the business sector. And the US will enter a period of declining standards of living and crushing debt.

[qwertypie]

It’s inexplicable why the courts have to require mountains of paperwork for foreclosures in which there are no disputes. (In fact, I’m still waiting to hear about the first case of where an up-to-date homeowner is getting wrongfully thrown out of his house because of a robosigned set of documents wrongfully prepared. I’m sure there has been one, but I doubt that there are more than the figurative handful.)

There is no reason why the courts can’t get up to speed and process these cases electronically. A system could rapidly identify and set aside the few disputed cases, resolve the rest efficiently, and then process the question marks using the old-fashioned method, if still necessary. But to send every foreclosure through the paper gauntlet is insane.

[dearolddad]

**WHY** does no one get FIRED for this kind of screw up. (at Fannie and Freddie

) I am so frickin’ tired of “mitakes were made...”

Well WHO made them, and who was responsible for managing those people??

But!, But!, But!, aren't these buffoons running Fannie and Freddie advertised as the "best and brightest"?

[dearolddad]

**WHY** does no one get FIRED for this kind of screw up. (at Fannie and Freddie

) I am so frickin’ tired of “mitakes were made...”

Well WHO made them, and who was responsible for managing those people??

But!, But!, But!, aren't these buffoons running Fannie and Freddie advertised as the "best and brightest"?

[Pearls Before Swine]

This Marxist putz belongs in jail.

...where, after a short adjustment period, he would no doubt have an enjoyable time.

[jazminerose]

And let us not forget her $500K annual pension that you & I are working to pay.