Flush The AGs: 27 Pages Of Fluff

The Market Ticker ^ | 3/7/2011 | Karl Denninger

[Chunga85]

The 27-page fluff-piece is now out where we can see it....

Let's be blunt: There's no "there" there.

The entire document is a rehash of what servicers had a legal mandate to do right up front. Accurately apply payments. Respond to inquiries. Operate in good faith. Use a NPV test for HAMP (was in the HAMP program originally.) Document the assignment chain before foreclosing.

There's exactly one substantive change, in that HAMP did not prohibit "dual-track" (that is, foreclosure while attempting modification.)

Essentially every other item in this 27 pages is something that Servicers already had a legal duty to do, either as a fiduciary to the investor or just through the ordinary covenant of operating in good faith (You know, the original standards that all businesses are held to that aren't actually racketeering outfits and gangsters? Yes, that.)

There's no prosecution for all the bad affidavits, despite them being apparent acts of perjury.

Some of this is truly laughable:

You're kidding, right? This is a NEW requirement?

Thou shalt not perjure! Really! We mean it this time!

Here's another one:

[Chunga85]

Click

[Chunga85]

Banana Republic ping.

[Loud Mime]

Is this commenter a FReeper? His remarks seem familiar!