Every time you hear how “the Republicans are worse” you should think about this story from Moneynews:
A bill that homeowners advocates warn will make it more difficult to challenge improper foreclosure attempts by big mortgage processors is awaiting President Barack Obama’s signature after it quietly zoomed through the Senate last week.
The bill, passed without public debate in a way that even surprised its main sponsor, Republican Representative Robert Aderholt, requires courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents.
The timing raised eyebrows, coming during a rising furor over improper affidavits and other filings in foreclosure actions by large mortgage processors such as GMAC, JPMorgan and Bank of America.
Questions about improper notarizations have figured prominently in challenges to the validity of these court documents, and led to widespread halts of foreclosure proceedings.
The legislation could protect bank and mortgage processors from liability for false or improperly prepared documents.
The White House said it is reviewing the legislation.
“It is troubling to me and curious that it passed so quietly,” Thomas Cox, a Maine lawyer representing homeowners contesting foreclosures, told Reuters in an interview.
A deposition made public by Cox was what first called attention to improper affidavits by GMAC.
Since then, GMAC, JPMorgan and others have halted foreclosure actions in many states after acknowledging that they had filed large numbers of affidavits in which their employees falsely attested that they had personally reviewed records cited to justify the foreclosures.
Cox said the new obligation for courts to recognize notarizations of documents filed by big, out-of-state companies, would make it more difficult and costly to challenge the validity of the documents.
[…]
“Constituents” Pressed For Passage
After languishing for months in the Senate Judiciary Committee, the bill passed the Senate with lightning speed and with hardly any public awareness of the bill’s existence on Sept.27, the day before the Senate recessed for midterm election campaign.
The bill’s approval involved invocation of a special procedure.
Democratic Senator Robert Casey, shepherding last-minute legislation on behalf of the Senate leadership, had the bill taken away from the Senate Judiciary committee, which hadn’t acted on it.
The full Senate then immediately passed the bill without debate, by unanimous consent. The House had passed the bill in April.
The House actually had passed identical bills twice before, but both times they died when the Senate Judiciary Committee failed to act.
Some House and Senate staffers said the Senate committee had let the bills languish because of concerns that they would interfere with individual state’s rights to regulate notarizations.
Senate staffers familiar with the judiciary committee’s actions said the latest one passed by the House seemed destined for the same fate.
But shortly before the Senate’s recess, Judiciary Committee Chairman Patrick Leahy pressed to have the bill rushed through the special procedure, after Leahy “constituents” called him and pressed for passage.
The staffers said they didn’t know who these constituents were or if anyone representing the mortgage industry or other interests had pressed for the bill to go through.
These staffers said that, in an unusual display of bipartisanship, Senator Jeff Sessions, the committee’s senior Republican, also helped to engineer the Senate’s unanimous consent for the bill.
Neither Leahy’s nor Session’s offices responded to requests for comment Wednesday. (emphasis added)
Hey Mr. Leahy! In the immortal words of Richard B. “Dick” Cheney:
“Go fuck yourself!”
To which I add “And the donkey party you rode in on!”
_____________________________________________
UPDATE:
(From WCMB in the comments)
They are obfuscating because the problem isn’t the foreclosures themselves. The problem is all the mortgage-backed securities that spun off of those original notes – all the “side bets” that leveraged the original mortgage up to many multiples of the first note. Those are sitting on the big banks’ and hedge funds’ fake balance sheets of “assets” like big ole stinking turds.
The law required due diligence, and that non-performing loans did not get bundled into those “assets”. And the banks all winked and nodded and proceeded to pile garbage by the truckload into those “baskets” of derivatives, not bothering with the paper trail that was legally required. They were making money hand over fist on this Ponzi scheme, and figured they would never get caught because the housing bubble would never pop.
It’s not the foreclosures that will blow the whole thing sky high, it’s the side bets. Hillary knew this, which is why she wanted to actually unwind the MBS market, identify the toxic assets, and put them in a federal “bank”, a separate “pile” to isolate them from the rest of the system. Isolate them FIRST, leaving the banks healthy, then make decisions as to solutions for the toxic pile.
Our corporate govt is going to write a law, give a waiver, whatever they have to do to make sure that all that shaky leverage the banks took on is never exposed. Because if the banks are forced to take their real losses, many of them implode immediately.
The 700 billion bailout did NOTHING to clean up their balance sheets. Not one goddamn thing. They are as insolvent in reality as they were when this shit started, no matter what their fictional balance sheets say.
Making them eat their losses in a structured, organized way, with some help from the treasury so that the whole system didn’t go down, would have been a difficult time for the economy. It would have sucked for the country. But we would have come out of it with clean accurate balance sheets and a solid foundation to rebuild.
Instead, we spent 700 billion papering over the theft, only to wind up now right back where we started, with the rot still lurking there underneath, threatening at any moment to go kaboom once again.
Filed under: Bad Bank, Barack Obama, Democratic Party, Dick Cheney, General, Worst President Ever, zombies | Tagged: Democratic Party, Mortgage Meltdown |
I predict that Obama will quietly sign the bill into law on a Friday afternoon.
Don’t expect much noise from the Kool-aid bloggers on this one either.
Yup.
Everyone in DC is completely owned by Wall Street.
They disgust me.
You missed the video that showed the Democratic logo is a BIG ‘O’ with a little ‘D’ in the middle. Please, let others know…President Obama doesn’t like the donkey, he is all ‘O’ about O, himself?????
If he hasn’t signed it into law by end-of-day Friday, I think it’s dead. Pocket veto.
I don’t think he will, though. He’d have done it by now. Warren probably threatened to walk if he did, and they can’t afford her leaving in a huff before the midterms.
I have to go work to my second job, so say, what did they say about ya? Give a link or e-mail it…
She didn’t say anything. She banned me from TL
Twice.
Join the Party!
I thought they wrote something about you!
Say, is Mr. Pacifica still there? That is the one thing I don’t miss!!!
OK, so now we definitively know that the Senate can pass anything on a dime (pun intended) when it wants to–no debate, no filibuster, no 60 votes theater. This is a perfect example to bring up whenever any Obots try to claim they got the best bill they could, because the Senate is just so ungovernable… LIARS!
Honk, honk!
I’m trying to figure out who broke this story in the blogosphere.
BTD credits Atrios who credits ChicagoDyke at Corrente.
Yves at Naked Capitalism, I think
And Yves just (10amEST) reported that her site problems have been traced to a denial of service attack…..sumbodies don’t like what she is reporting?
Taylor Marsh put it up this morning and credited it to memeorandum.
This is from commenter guyski over there in response to this foreclosure cover bill passing… it’s classic… whatever you feel about what happened at TM’s in 2008, you don’t want to miss clicking on this link.
David Dayen at FDL and Yves Smith at Naked Capitalism have both been doing a particularly fine job of covering the foreclosure fraud that’s been occurring.
BTW, the advice in the video you put up is useful if you’re in a judicial foreclosure state–a state that requires a judge to oversee a foreclosure. Otherwise, consumers have to rely on somewhat obscure state laws, if they exist, that allow consumers some protection against lenders.
Thats’ scary. Why didn’t they name the bank that did this in this case?
I was reading some of the comments on youtube on it and someone said she should have shot the intruder and I found myself thinking, yeah, sounds reasonable.
It feels like a war– DC and Wall Street are waging an undeclared war on individuals.
Constituents my ass, willing to bet their voice mail boxes weren’t full of messages from people that are dying to be forclosed upon. They make me freaking want to puke.
Leahy is from Vermont. That’s not even a banking state.
Favor for Schumer?
I’ve been wondering what it was we were being distracted from with all of the “Is Hillary going to be VP?” speculation. I knew it was a distraction, I just didn’t know what they were trying to hide, until now.
Guess who said this?:
More of same:
It was the Boss Wingnut herself.
It’s a crazy world when we start agreeing with Malkin & vice versa.
Ayup
Malkin is very good at putting the partisan shiv in with a smile… to agree with her… aye yi yi. Upside down world.
I shudder to say this, but MM is relentless on corruption, and she doesn’t give the R’s a pass on it either – at all. She calls them criminals as well.
I completely disagree with her philosophy of governance, and her stance on many issues. But she does beat the drum on and expose corruption and insider favor-trading better than many out there. I’ll give her that.
(Okay, y’all take a look because I’m afraid to: Is the horizon like it’s supposed to be, or is the sky part hanging underneath the earth part?)
Well, in that case I count her as the enemy of my enemy.
😯 I googled “Vampire Congress strikes again.” That is kinda creepy.
Yes, myiq, we certainly have a vampiric state.
K-Street owns all the Ds and Rs. Don’t vote K-Street this November!!!
The Democrats say they can’t pass anything most voters want, let alone what the left base wants.
Then they do this without debate?
Says more than Obama’s pretty words could ever say.
fer sure
The White House has “concerns”
“You assholes said nobody would notice!”
They are obfuscating because the problem isn’t the foreclosures themselves. The problem is all the mortgage-backed securities that spun off of those original notes – all the “side bets” that leveraged the original mortgage up to many multiples of the first note. Those are sitting on the big banks’ and hedge funds’ fake balance sheets of “assets” like big ole stinking turds.
The law required due diligence, and that non-performing loans did not get bundled into those “assets”. And the banks all winked and nodded and proceeded to pile garbage by the truckload into those “baskets” of derivatives, not bothering with the paper trail that was legally required. They were making money hand over fist on this Ponzi scheme, and figured they would never get caught because the housing bubble would never pop.
It’s not the foreclosures that will blow the whole thing sky high, it’s the side bets. Hillary knew this, which is why she wanted to actually unwind the MBS market, identify the toxic assets, and put them in a federal “bank”, a separate “pile” to isolate them from the rest of the system. Isolate them FIRST, leaving the banks healthy, then make decisions as to solutions for the toxic pile.
Our corporate govt is going to write a law, give a waiver, whatever they have to do to make sure that all that shaky leverage the banks took on is never exposed. Because if the banks are forced to take their real losses, many of them implode immediately.
The 700 billion bailout did NOTHING to clean up their balance sheets. Not one goddamn thing. They are as insolvent in reality as they were when this shit started, no matter what their fictional balance sheets say.
Making them eat their losses in a structured, organized way, with some help from the treasury so that the whole system didn’t go down, would have been a difficult time for the economy. It would have sucked for the country. But we would have come out of it with clean accurate balance sheets and a solid foundation to rebuild.
Instead, we spent 700 billion papering over the theft, only to wind up now right back where we started, with the rot still lurking there underneath, threatening at any moment to go kaboom once again.
That’s it in a nutshell.
Nicely done and bravo.
WMCB, could I make a request? Would you frontpage that? It’s wonderful and so accessible.
honk!
Comments like this are the reason WMCB was invited to frontpage in the first place.
Nah – this post by myiq pretty much covers the issue. I’m just ranting. 🙂
It was a really incisive rant and at the end I felt like passing it on to some people I know who don’t read the Confluence at all– it would be easier to link to if it were on the frontpage. No pressure, though! If you ever have a change of heart is all… 🙂
LOL! WTV, I’m not sure I even remember how to put one up. Seriously. Maybe myiq or someone will just quote me?
I can even do a post and put your name on it.
Go ahead if you’d like, myiq. I am popping in and out while doing billing on my other screen.
Nope, I just added it to my post as an update.
But I’m gonna ask Katiebird to send you posting instructions again.
“Death will not release you!“
I keep thinking of this editorial she wrote way back when on a new HOLC, she knew we would face crisis after crisis…
http://online.wsj.com/article/SB122230767702474045.html
oh and honk! to you and myiq
Back at ya and see below
Isn’t that something…the only things they can pass is what the corporations/Wall street wants.
This is a good bill, and it was passed unanimously. What’s the problem here?
And why is it bad for democrats to be pro-business?
Thanks for the Whole Food Nation response.
‹^› ‹(•¿•)› ‹^›
Being pro-business and being pro-covering-up-crimes are not the same thing. At all.
Bank of America = Bad for America.
As has been observed many times before, Kool-Aid is a helluva drug. 😛
By HILLARY RODHAM CLINTON
{{slaps forehead}}
We coulda had a V-8!
I always remember THIS speech.
HONK! 😥 HONK
It’s so damn sad. If we had done this correctly, and gotten the bad loans off the banks balance sheets, we likely would have STILL spent 700 billion. But it would have been 700 billion that actually solved the crisis rather than kicking it down the road. We’d have had solvent banks and homeowners paying down their refinanced mortgages.
As it is, we spent the money anyway, and solved zippo.
Hey, but those guys at Golden Sacks and AIG got their bonuses, and that’s what’s really important, isn’t it?
If we hadn’t done that their kids might have been forced to attend PUBLIC SCHOOLS!
😯
Well, TPTB allowed it to be framed as only 2 options
1) Do nothing and let them fail, which will be chaos and martial law and rioting in the streets
or 2) Hand them 700 billion with pretty much no strings attached.
That’s it. Pick one. That’s what the public was told. Which was bullshit. There were other options.
I hated that. I didn’t want a debate about whether we should have a “bailout” or not, I wanted a debate about the terms of what we were going to do.
WTV, there are models to go by. We managed to unwind the S&L crisis without bankrupting the nation. Why could we not use that model, put those banks in bankruptcy receivership like we’ve done with every other bank that failed?
The mechanisms were there. Granted this was a larger scale, and some compromises would likely have had to be made that would have stuck in my craw. But options were not even discussed. It was just “give them piles of money NOW, or we are all doooooooomed!!! Eleventy!!!!”
NYT:
“Nobody could have foreseen.”
Propaganda! I have it from Obama himself that insurance premiums would go down 3000% from the new healthcare laws.
Why are you such a hater?
Obama also said if a mandate was the solution, we could mandate everyone buy a house to solve homelessness.
Linked to that earlier, as well as the Business Insider *spin* on it:
Meanwhile over at the non-sexist Blogstalker Online Forum the boys are focusing on what’s REALLY important:
and:
(“Amy Nag” is their nickname for Amy Siskind at The New Agenda. “Ballin” is Bristol Palin)
WMCB: like you said it’s not so much the foreclosures as the securitization of this bad debt. The leveraging that tripled and quadrupled the original amount. Someone more knowledgeable than me wrote that the 700 billion TARP was more than enough to cover every single bad mortgage loan out there had they not been leveraged.
My question is why not force the people who made this “gamble” to eat their losses, do workout agreements with the underwater people to help them stay in their houses and those people who were never able to afford anything, let them become renters once again, take their houses and resell them at market rate?
Because the big banks have something the rest of us don’t have: POWER. I think something like 4 of them own almost 98% of every loan in this country.
And they basically behaved like financial terrorists (yes, I used the T word), held a gun to the head of the country, and said, “Do it the way we want, without conditions, or we blow up the economy.”
And our chickenshit Congress crapped their pants and caved.
Honk!
I was watching the Michael Moore movie the other day (“Capitalism…”)
At one point, Marcy Kaptur was making a speech (in Congress) urging homeowners to refuse to pay their mortgages as the banks do not have the documents. Now it will be legal to foreclose without ownership chain.
*Update*
Tapper just tweeted
cue “pwogwessive hewo” swoons
I can hear it coming… let’s be really cynical for a second…maybe this was like that moment staged for Obama to disown Rev. Wright.
If that was the case he would actually veto it.
But doing that would upset his base.
His bankster base.
As I wrote above, I think Warren was the deciding factor. They can’t afford to have her quit in a huff before the midterms.
Here’s more
http://blogs.abcnews.com/politicalpunch/2010/10/president-obama-to-pocket-veto-bill-that-might-make-it-easier-to-foreclose-on-homes.html?utm_source=twitterfeed&utm_medium=twitter
So he will “boldly” do nothing and let it die a quiet death? (until after the midterms)
Congress would have to take it up again, and that’s going to be watched very carefully. Even the MSM people are pretty horrified by the prospect of fraudulent foreclosure, especially this crap about banking contractors breaking into non-foreclosed homes to change the locks.
Isn’t that what they said about the FISA revision?
They passed it the first time without any debate or roll call vote.
You can bet your bippy they’ll try again.
They will have Obama pocket-veto this to great fanfare, then find a work-around by other means to accomplish the same thing.
When he starts flourishing with one hand, watch the other hand.
Yeah, but the MSM, apart from Olbermann, didn’t give a damn about it. This is different. Having corporate goons break into your house is a lot more vivid to people than having your phone and e-mail tapped.
Well, I’m in no danger of being foreclosed, since our house is paid for.
But here in TX, we have the “castle doctrine”. If someone is breaking in without a signed warrant and police notification, we can open fire if we choose – perfectly legally.
I’d be careful if I was a corporate goon in TX. They might bite off more than they can chew. 😀
The banks have pulled this with people who owned the property outright. No one is safe. That’s why it’s getting serious media attention outside of the blogosphere. FISA didn’t crack the public consciousness.
I say we change the locks on congress while they’re out on recess.
Where is this information…he’ll veto the bill and then make a signing statement in the middle of the night.
Over at Cheetoville:
Nothing there about how Democrats were up to their eyeballs in passing this piece of shit, no call to action.
Hopenchange motherfuckers!
Apparently he is going to pocket veto the bill, but a poster says that won’t stop it….it has to be vetoed!
No, that will will stop it.
But it’s a zombie bill – it’s not dead.
Via Susie Madrak:
Yeah, the obvious consequences were UNINTENDED.
Denninger compares this bill with the fast one they pulled on credit card interest rates:
http://market-ticker.org/akcs-www?post=168500
Denninger doesn’t know what he or she is talking about re: credit cards. That happened because of the unanimous 1978 Supreme Court decision in Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. It wasn’t because of any legislative action. You can read about it here:
http://en.wikipedia.org/wiki/Marquette_Nat._Bank_of_Minneapolis_v._First_of_Omaha_Service_Corp.
Yes, he does know what he is talking about. That Supreme Court decision was predicated on the legislation that Congress passed:
That court decision did not make the new law – only confirmed it.
Which came first, the chicken or the egg?
The effect was the same either way.
Denninger at MarketTicker is on it:
http://market-ticker.org/akcs-www?post=168499
New thread up by Dakinikat on the same topic