Posted on 10/19/2010 8:40:15 AM PDT by Fred
WASHINGTON (Dow Jones)--The White House is committed to holding banks accountable for any legal violations tied to housing foreclosures, White House Press Secretary Robert Gibbs said Tuesday.
Gibbs also reiterated that the administration "strongly" supports an investigation by 50 state attorneys general into allegations that bank employees signed foreclosure documents without carefully reviewing the contents.
Gibbs' statement comes as several large financial institutions, including Bank of America Corp. (BAC) and GMAC Mortgage, a lender and loan servicer, said they were restarting foreclosures.
Bank of America said the company hasn't found significant problems with its process for seizing homes. The bank had halted foreclosures on Oct. 8.
Banks have faced allegations that they indiscriminately signed foreclosure documents and attorneys general in every state are investigating the financial institutions.
Gibbs said the Federal Housing Administration and Financial Fraud Enforcement Task Force are also investigating the foreclosure process.
(Excerpt) Read more at online.wsj.com ...
...will all come out in the “prosecutions”
Diversion from the fraud of misrepresentation of facts to the MBS buyers, Denninger is on top of this today, the WSJ like other lamestream media outlets is way behind.
All the government has to do is arrest two politicians barney Frank and Chris Dodd. Suddenly everything will come out in the open. We know Barry will not take a fall for this disaster. Frank and Dodd are the sacrificial wolves for this fiasco.
The banks are going to be made to look bad, even as the Treasury continues to lend them risk capital at 0%.
It's all theater.
Dems will use this to demonize free markets even though there is nothing free about the housing market. Gubmint has their tentacles in ever facet of it .Now they can ride in ‘to the rescue’ and play savior/messiah.
Can someone explain to me why stopping foreclosures will have a negative impact on housing? You’d think the opposite would be the case since foreclosed homes would flood the market bringing prices down even lower.
We don’t need no stinking investigations, Most of the Banks have already ADMITTED TO THEIR FRAUD AND FELONIES in official court documents (see Market-ticker). Just start rounding them up and putting them in Jail, Argue for NO BAIL, Refuse to allow them to use any proceeds from said criminal violations for Bail or Defense purposes. Immediately Seize All Assets as Ill Gotten Gains from a criminal Enterprise. Let them all rot in jail til they die and goto hell for eternity. There is nothing to Investigate, THEY ADMITTED IT
“Can someone explain to me why stopping foreclosures will have a negative impact on housing? You’d think the opposite would be the case since foreclosed homes would flood the market bringing prices down even lower.”
Well, for starters every sentient person with a mortgage will stop servicing it as the lenders (at least in single action states) will have no way of collecting the debt. At that point, the U.S. banking system will be forced to writedown mortgage assets to virtually nothing, stripping them of capital and leaving every bank in America insolvent. Buyers of private label MBS (and likely Fannie and Freddie paper as well) will launch lawsuites against every commercial and investment bank that issued securities collateralized by U.S. mortgage loans for misrepresentation of material facts in the MBS prospectuses and for breach of pooling and servicing agreement representations and warranties.
Investors will never purchase dollar denominated asset-backed securities again and may think twice about U.S. corporate and government debt as well. In short, the global capital markets and economy will be reduced to ash.
But that’s okay, deadbeats won’t have to lose “their” homes. Isn’t that special?
Very succinct analysis. Unfortunately it’s going to happen no matter what anyone does. The cover has been ripped off this scam. No one is going to trust the US banking, mortgage, or securities industries for decades.
Are you going to stop paying your mortgage?
“Are you going to stop paying your mortgage?”
Unfortunately, my wife and I were one of the fiscally imprudent souls who bought a home we could afford and proceeded to repay the mortgage loan in-full after 13 years. Therefore, we will have the privilege of subsidizing all the “homeowners” with no equity who elect to default, sue there mortgagor and claim that the mortgagor defrauded them by lending them money to purchase a home. We will subsidize these poor oppressed darlings by having our real equity deflate to virtually nothing as the real estate market crashes.
“No one is going to trust the US banking, mortgage, or securities industries for decades.”
Indeed, and the collapse of the housing and financial sectors will provide the pretext to nationalize the banks and regulate the hell out of what is left of the financial markets. At that point you can kiss free enterprise and prosperity adios. And then all the screw-the-banks populists on this board will have a new (and very real) issue at which to shake their pitchforks.
Let's be honest here. The banks brought this on themselves by commiting tens of thousands of cases of fraud and perjury. I'm no populist, but I also have absolutely no sympathy for that bunch of thieves.
None. In fact I'm looking forward to the crash. From where I sit the west and south sides of Chicago will be a nice rosy glow in the evening sky.
Thank you. Very clear explanation. I guess it basically means there will be no money to lend. At the low rates today it’s almost there already.
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