AP source: FBI looking at foreclosure mess

WZZM ^ | 10/19/10

[earlJam]

Gannett article removed. Gannett allows none of their material to be posted on Free Republic.

[Eric Blair 2084]

I agree.

Dodd and Frank should be led away in handcuffs for defending Fannie and Freddys relaxed lending standards under the egalitarian ideal that even poor people should be able to buy condos and McMansions.

Instead of a perp walk they get their name on a bill to “solve” the problem they created.

It’s like having a Berkowitz/Dahmer sponsored mass murderer sentencing law.

[NVDave]

It was 2004, during the Bush administration:

http://articles.cnn.com/2004-09-17/justice/mortgage.fraud_1_mortgage-fraud-mortgage-industry-s-l-crisis?_s=PM:LAW

BTW — it was senior Bush administration members who told the FBI to ignore this issue and go chase “terrorists.”

[funfan]

Isn't that part of the problem that somehow the original notes were sold and bought and such. My neighbor was trying to refinance about a year ago and whenever she would call her lender they would not give her any info as they were not the holder of the note but the servicer it was really weird. We refinanced about 3 months ago with Citibank who we already had our mortgage with well it closed everything was fine then about 1 month later we got a letter from Freddie and Fannie saying they bought or loan from CitiBank but that Citibank would still be the servicer of the loan and that is who we would contact and continue to send payments to. Seems like to me the Government is busy buying up loans which makes me me wonder especially after Nanci Pelosi was talking about fairness in property and equity. On another note for people who say they are being foreclosed on wrongly can they just present their cancelled checks and or statement that shows they are in good standing and have made their payments?

[plain talk]

I want to see people going to jail - left and right. THEN confidence will be restored in the markets.

I don't believe that for a minute particularly if it just means going after lenders and not democrat politicians. What I want to see are the dems punished big time for creating the conditions that led to the problems.

[NVDave]

You are, like so many conservatives and Republicans, living in a dream world of your own making.

In fact, there is a class of mortgages called “stated income” loans which were exactly as described: Even if the odds of the job producing the stated income were slim to none, the bank took the applicant at their word.

An overview of the types of no-verification loans:

http://moneycentral.msn.com/content/banking/financialprivacy/p33720.asp

Here’s an example of a stated income loan:

http://www.loanshoppers.net/stated.htm

NB the following therein:

“Note: Many of these flexible terms and conditions have changed as of 2008. Although, they still exist in 2010, the equity required for a stated income mortgage refinance is usually 30% or more.”

Such loans existed and they STILL exist - only with higher down payments.

[Attention Surplus Disorder]

Sorry, sorry, you are right! I meant 2004. Taking care of my elderly folks (ages 93 & 94)....Alzheimer’s just might be contagious!

[NVDave]

Not completely. It should be worth between $200 and $400 per acre.

[mo]

This issue envelopes the Rinocratic Oligarchy...completely and bipartisanly. In fact, it might be the only true Bipartisan political conduct, in addition to TARP, to come out of DC in decades.

[dr_who]

The truth is out there! Really... out there. I mean, whoa.

[takenoprisoner]

This issue envelopes the Rinocratic Oligarchy...completely and bipartisanly. In fact, it might be the only true Bipartisan political conduct, in addition to TARP, to come out of DC in decades.

You betcha it does, and is. George Bush is on video praising Fannie and Freddie for their efforts to ensure everyone gets a home. GB, "everyone deserves a home like everyone else."

Some forget the first bailout came under Bush. Course, Obama run the ball into the end zone, and then, leaped into the stands with the crowd still cheering.

We laughed at Peggy Joseph, "I won't have to worry about putting gas in my car, or paying my mortgage anymore." We thought what a stool pigeon to believe such non-sense from Obama. Well, ole Peggy gets the last laugh. Since as it turns out, the working stiff taxpayers are the fools.

[packrat35]

In other words, EVERYONE in the banking and financial industry. I HOPE SO!

[excopconservative]

I wonder how many times these “lenders” have been paid for these notes? They transferred them and sold them as securities and got paid. How do we know they didn’t chop them into 100 pieces and then sell 300 pieces? If the properties were foreclosed, then they got paid by the mortgage insurance. They also got bailed out by the government. They sold the securities without transferring the real estate as collateral so the investors don’t have any option to recover their investment. The banks will say, sorry guys, but the people didn’t pay and you lose. The banks can’t find the paperwork, sometimes can’t get legal standing in court to foreclose and after you pay off your note, they can’t deliver you a clear title because they don’t have the paperwork. What a mess!

[M. Espinola]

The FBI should have been investing the Dems & RINOS for allowing the banksters to steal trillions in tax dollars and ruining the economy. It’s a little late at this stage.

[Does so]

"...I am an accountant who saw this for years..."

A college acquaintance who became a Broward real estate attorney went to Federal jail for 1½ years, as he was the only one of 20 real estate attorneys who pled "not guilty" to these charges. I don't know what happened to the others.

The judge said he had to get out of his RE-attorney business, so his old firm was bought by a friend, and he was hired there as a "law clerk" at a $200K annual salary.

(Federal Court / Broward County, FL., about five years ago.)

[Does so]

"...I don't believe that for a minute particularly if it just means going after lenders and not democrat politicians..."

Watch the Presidential-pardons fly—when Ubama leaves office!

[moehoward]

"I wonder how many times these “lenders” have been paid for these notes? They transferred them and sold them as securities and got paid."

At least those securities were backed by an actual mortgage. Well, most were. There have been stories about some of these securities containing mortgages that never existed. Then you have the SDSs and CDOs which are nothing more than bets.

IMHO the best thing that could have happened is let the whole crap-house go down in flames.

[jerry557]

Because its not a crime when you fail to pay your bills.

A mortgage is a written contract. If you fail to pay it, the contract says the bank has a right to foreclose on the property. But there is not a time limit for that foreclosure. The bank can wait for years if they want to. That’s their decision.

[pieceofthepuzzle]

“Our nation needs to somehow remove itself from debt-based currency, and instead have our US Treasury issue our currency if we desire a national currency.”

I agree. A big problem, in my view, is that we have a growing segment of the population who don't care a hoot about America the nation. They care about what they can extract from the system. This includes a fair number of immigrants who didn't come here to be Americans.

[PapaBear3625]

Start the investigation and perp walks with Congress, Fannie, and Freddie.

The people who issued mortgages to totally unqualified buyers will not be investigated. Remember, this is the Obama Justice Dept.

They will only investigate banks who dare to foreclose on Obama supporters.

[qwertypie]

The only thing that the foreclosure mess exposes is that there is a much bigger tinfoil flake component in the citizenry than previously recognized. Their lament “Those evil banksters made me borrow when I didn’t want to .... WAHHHHHHHHHHHHH...... and now they should hang.”

There is no hope for the USA. None.