Why would underwriting standards and all Agency/Fiduciary responsibilities be thrown out the door? Why did property appraisers continue to make outcome based appraisals for alleged lenders?
To summarize is simple but the devil is in the details.
Until we add fork-tongued Wall Street lingo like "REMIC", "Special Purpose Vehicles", "Credit Default Swaps", "Master Servicers, "Pooling and Servicing Agreements" etc., to our vocabularies we are unable to understand that devil.
A scheme was created such that a non-performing loan was actually worth more than a performing loan.
Whether in default or not, the wet-ink signatures that you placed on your closing docs were quickly distributed to multiple third parties who immediately over-collateralized the obligation at the outcome based appraisal, resulting in a great incentive for alleged lenders to ensure a default takes place. At that time, multiple parties will receive - in full - insurance money from AIG or Ambac.
These obligations were placed in pools that contained obligations that were declared to be in default. Not all were in default but the trust was closed down and enabled the unjust enrichment of many by the insurance payoffs (which we all know by now were dumped in the lap of the taxpayers with approval by Fannie and Freddie).
"Foreclosuregate" is not simply a matter that stems from sheer volume. All of these documents are being forged because some alleged lender has to step up to the plate and prove they were damaged by someone else's failure to pay. To do so would expose said alleged lender to the revelation of who exactly is looking for a free house.
Adding insult to injury, Wall Street insiders knew all about this scheme (considering they created it) and placed bets that all would fail at the end of the day causing further unjust enrichment to one side of a bad contract.
There is a little 58 page book entitled the "Declaration of Independence and the Constitution of the United States of America". Hold it dear...it may be our only way out.
That was truly an excellent post!
Richard M. Bowen, former chief underwriter for Citigroup’s (nyse:C) consumer-lending group, said he warned his superiors of concerns that some types of loans in securities didn’t conform with representations and warranties in 2006 and 2007.
“In mid-2006, I discovered that over 60 percent of these mortgages purchased and sold were defective,” Bowen testified on April 7 before the Financial Crisis Inquiry Commission created by Congress. “Defective mortgages increased during 2007 to over 80 percent of production.”
In addition this Fraud affected lots of other people who are not the so called Dead Beats and what term is there for the bankers fraud I never see one you would think from many of the reactions they are completely innocent and nothing could be further from the truth.
There will be lawsuits and rightfully so this affected people’s retirement incomes that had 401k’s in hedge funds and pension plans that lost lot’s of money. And how about the individual investor’s who took a huge loss because they were sold fraudulent products?
There are plenty of people that this hurt that were not involved in foreclosure directly. All of us are also involved because these banks sold trillions of dollars of crap to fannie/freddie and they are publicly sponsored entities as well so we end up picking up a large bill as taxpayers.
B U M P
B U M P
BTTT
Thank you.
The dictatorship of Bankster Inc continues fleecing America, to enrich themselves.