• Tips gratefully accepted here. Thanks!:

  • Recent Comments

    William on Living while Black
    Propertius on Risk Tolerance, Risk Aversion,…
    Propertius on Risk Tolerance, Risk Aversion,…
    riverdaughter on J&J vaccine. Let’s take it…
    Ivory Bill Woodpecke… on J&J vaccine. Let’s take it…
    eurobrat on J&J vaccine. Let’s take it…
    William on Risk Tolerance, Risk Aversion,…
    riverdaughter on Risk Tolerance, Risk Aversion,…
    Propertius on The Culture Wars
    riverdaughter on J&J vaccine. Let’s take it…
    William on The Culture Wars
    Propertius on The Culture Wars
    Ivory Bill Woodpecke… on J&J vaccine. Let’s take it…
    Ivory Bill Woodpecke… on Refuseniks
    Propertius on Refuseniks
  • Categories


  • Tags

    abortion Add new tag Afghanistan Al Franken Anglachel Atrios bankers Barack Obama Bernie Sanders big pharma Bill Clinton cocktails Conflucians Say Dailykos Democratic Party Democrats Digby DNC Donald Trump Donna Brazile Economy Elizabeth Warren feminism Florida Fox News General Glenn Beck Glenn Greenwald Goldman Sachs health care Health Care Reform Hillary Clinton Howard Dean John Edwards John McCain Jon Corzine Karl Rove Matt Taibbi Media medicare Michelle Obama Michigan misogyny Mitt Romney Morning Edition Morning News Links Nancy Pelosi New Jersey news NO WE WON'T Obama Obamacare OccupyWallStreet occupy wall street Open thread Paul Krugman Politics Presidential Election 2008 PUMA racism Republicans research Sarah Palin sexism Single Payer snark Social Security Supreme Court Terry Gross Texas Tim Geithner unemployment Wall Street WikiLeaks women
  • Archives

  • History

    October 2010
    S M T W T F S
     12
    3456789
    10111213141516
    17181920212223
    24252627282930
    31  
  • RSS Paul Krugman: Conscience of a Liberal

  • The Confluence

    The Confluence

  • RSS Suburban Guerrilla

  • RSS Ian Welsh

  • Top Posts

Bipartisan BOHICA



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.


102 Responses

  1. 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.

  2. 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!

  3. 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.

    • 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.

  4. 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.

  5. 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.

  6. Guess who said this?:

    Both the left and right sides of the blogosphere are buzzing about a bipartisan TARP-style banking bailout bill that somehow reached President Obama’s desk in the legislative rush before Congress adjourned for the midterm election break.

    The sordid episode underscores everything I’ve spotlighted about the culture of corruption over the last two years — sabotage of the deliberative process, circumventing of rules, backroom deals, and contempt for the will of the people.

    Yes, the Vampire Congress strikes again.

    • More of same:

      Fun fact via Steve Egg: One of the bill’s co-sponsors was none other than big banking buddy…GOP Rep. Mike Castle.

      Wisconsinite Steve also notes from the legislative history: “The ‘debate’ in the House consisted solely of three people, one of which was Wisconsin’s own embarrassment Tammy Baldwin (of Madison), urging passage, which was done by voice vote.”

      • It was the Boss Wingnut herself.

        • It’s a crazy world when we start agreeing with Malkin & vice versa.

        • 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?)

    • 😯 I googled “Vampire Congress strikes again.” That is kinda creepy.

    • Yes, myiq, we certainly have a vampiric state.

  7. 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.

  8. The White House has “concerns”

    The White House is taking a careful look at legislation recently passed by Congress with little notice that would require courts to recognize notarizations from out-of-state, which some consumer advocates say would make it more difficult to fight bogus foreclosures by banks.

    “There were a series of meeting on that this morning here,” said White House spokesman Robert Gibbs, who added the White House would have a more definitive statement later on Thursday. “It is something that, as you said, there has been a lot of news on, the processing of documentation, the resulting impact on foreclosures, and that is being evaluated….In general, there is concern, ultimately, about the situation.”

    “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.

  9. Isn’t that something…the only things they can pass is what the corporations/Wall street wants.

  10. 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?

  11. By HILLARY RODHAM CLINTON

    There is a broad consensus that Congress must act to stave off deeper turmoil on Wall Street. Irrespective of the final agreement yet to be reached, there are several principles that must be part of a broader reform effort that begins this week and continues in the coming months.

    This is not just a financial crisis; it’s an economic crisis. Therefore, the solutions we pursue cannot simply stabilize the markets. We must also deal with the interconnected economic challenges that set the stage for this crisis — and reverse the failed policies that allowed a potential crisis to become a real one.

    First, we must address the skyrocketing rates of mortgage defaults and foreclosures that have buffeted the economy and ignited the credit crisis. Two million homeowners carry mortgages worth more than their homes. They hold $3 trillion in mortgage debt. Nearly three million adjustable-rate mortgages are scheduled for a rate increase in the next two years. Another wave of foreclosures looms.

    I’ve proposed a new Home Owners’ Loan Corporation (HOLC), to launch a national effort to help homeowners refinance their mortgages. The original HOLC, launched in 1933, bought mortgages from failed banks and modified the terms so families could make affordable payments while keeping their homes. The original HOLC returned a profit to the Treasury and saved one million homes. We can save roughly three times that many today. We should also put in place a temporary moratorium on foreclosures and freeze rate hikes in adjustable-rate mortgages. We’ve got to stem the tide of failing mortgages and give the markets time to recover.

    The time for ideological, partisan arguments against these actions is over. For years, the calls to provide borrowers an affordable opportunity to avoid foreclosure as a means of preventing wider turmoil were dismissed as government intrusion into the private marketplace. My proposals over the past two years were derided as too much, too soon. Now we are forced to reckon with too little, too late.

    As a result, the home-mortgage crisis slowly eroded the value of debt instruments upon which Wall Street firms were depending. That is how this house of borrowed cards began to fall. If we do not take action to address the crisis facing borrowers, we’ll never solve the crisis facing lenders. These problems go hand in hand. And if we are going to take on the mortgage debt of storied Wall Street giants, we ought to extend the same help to struggling, middle-class families.

    Second, American taxpayers should have a voice and a stake in the resolution of this market crisis. If the Treasury proposal is enacted in its current form, the American government would assume enough financial risk to become the majority shareholder in the companies rescued by taxpayer dollars.

    The American people are bearing the risk and therefore deserve to reap the rewards of a shared equity model. And mortgage securities bought by taxpayers must be valued accurately at prices disclosed in real time, with checks and reporting requirements to prevent abuse.

    Third, taxpayers are being asked to bear an unparalleled degree of financial risk. We cannot allow taxpayers to take on this burden so that Wall Street and the Bush administration can hit the “reset button.” This historic intervention demands a historic shift in priorities: an end to the broken culture on Wall Street, and the broken economic policies in Washington.

    Corporations that will benefit must be held accountable, not only to large shareholders but also to the American people, who are rightly tired of business as usual: short-term profit at the expense of long-term viability; lax oversight and regulation; obscene bonuses and golden parachutes regardless of performance; reckless risk-taking that has placed the markets in jeopardy; rewards for foreclosing on middle-class families and selling mortgages designed to fail; and outsourcing good jobs to serve short-term stock prices instead of America’s long-term economic health.

    This is a sink-or-swim moment for America. We cannot simply catch our breath. We’ve got to swim for the shores. We must address the conditions that set the stage for the turmoil unfolding on Wall Street, or we will find ourselves lurching from crisis to crisis. Just as Wall Street must once again look further than the quarterly report, our nation must as well.

    {{slaps forehead}}

    We coulda had a V-8!

    • 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!!!!”

  12. NYT:

    As Obama administration officials put into place the first major wave of changes under the health care legislation, they have tried to defuse stiffening resistance — from companies like McDonald’s and some insurers — by granting dozens of waivers to maintain even minimal coverage far below the new law’s standards.

    “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?

    • Linked to that earlier, as well as the Business Insider *spin* on it:

      Obamacare — which could be loosely characterized as a scheme to compel the private sector to cover everyone — is going to fail. It’s hardly begun, and they’re already granting exemptions.

      There are two ways it could be fixed. It could be repealed completely, or it could become full-on nationalized, Canada-style healthcare.

      At one point it seemed inevitable that after a few years, it would become the latter, and that Obamacare was obviously just the first step towards that. But the way politics has gone sharply in the direction of the first possibility. If the GOP has two good Congressional elections (2010 and 2012) and takes the Presidency in 2012, it might get eliminated completely.

  13. Meanwhile over at the non-sexist Blogstalker Online Forum the boys are focusing on what’s REALLY important:

    Ballin came in next-to-last in the judges’ scoring this week. Then, after the audience voted, she was still next-to-last. From this we can determine that she’s not receiving significantly more votes than her peers.

    and:

    I have long depended upon the kindness of strangers you lovely people to put on the Hazmat gear and bring me back the most, uh, pungent offerings of PUMAville.

    Speaking of which, has Amy Nag been going all out for Ballin?

    (“Amy Nag” is their nickname for Amy Siskind at The New Agenda. “Ballin” is Bristol Palin)

  14. 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.

  15. 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.

  16. *Update*
    Tapper just tweeted

    BREAKING — President Obama to Pocket-Veto Bill That Might Make It Easier to Foreclose on Homes…more to come

  17. Over at Cheetoville:

    White House has “concerns” about notarization bill

    Nothing there about how Democrats were up to their eyeballs in passing this piece of shit, no call to action.

    Hopenchange motherfuckers!

  18. Apparently he is going to pocket veto the bill, but a poster says that won’t stop it….it has to be vetoed!

  19. Via Susie Madrak:

    Today, the White House announced that President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act of 2010, and will return the bill to the House of Representatives. The Interstate Recognition of Notarizations Act of 2010 was designed to remove impediments to interstate commerce. While we share this goal, we believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized.

    Notarizations are important for a large range of documents, including financial documents. As the President has made clear, consumer financial protections are incredibly important, and he has made this one of his top priorities, including signing into law the strongest consumer protections in history in the Wall Street Reform and Consumer Protection Act. That is why we need to think through the intended and unintended consequences of this bill on consumer protections, especially in light of the recent developments with mortgage processors.

    The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce. We will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.

    Yeah, the obvious consequences were UNINTENDED.

    • Denninger compares this bill with the fast one they pulled on credit card interest rates:

      Not all that long ago a similar bill was proposed. It essentially nationalized what had been up until then a State’s Right – usury laws. These laws set maximum interest rates, and were state-specific.

      The credit – that is, bank – industry argued that everyone should have the right to have banking and credit cards on consistent terms across state lines, and that this would promote interstate commerce.

      They won.

      What happened?

      The Banks then shopped for a couple of states where they could bribe the legislature with a bunch of call centers and jobs. They found South Dakota along with a handful of other states, which had no usury law at all.

      By doing this we welcomed into the world the 39% credit card interest rate and destroyed the 50 State’s ability to discern that this was an abusive practice that they should not allow anyone to subject their citizens to.

      Now the banks are at it again, and they will once again abuse the law.

      Once this law is passed they will find some state that needs jobs, and bribe the legislature to enact ridiculously loose notary laws, such that a notary signature will become effectively meaningless.

      This law will force every other State in the Union to accept that signature even though it signifies nothing.

      Notarization is an extremely important legal protection. It provides verification that the person who is alleged to have signed a document in “wet ink” actually did so, and actually made a personal appearance in front of the Notary.

      Further, land titles and land transactions, along with the private property rights that vest thereupon, are inherently a state function, and their protection and verification is also a state function.

      We must not allow “foreclosure mills” – or any other scheme – to destroy these protections. HR 3808, while appearing to be innocent and intended to promote commerce, will instead promote and elevate fraud through our financial and land title system.

      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:

          Justice William Brennan wrote that it was clearly the intent of Congress when it passed the National Banking Act that nationally-chartered banks would be subject only to federal regulation by the Comptroller of Currency and the laws of the state in which they were chartered

          That court decision did not make the new law – only confirmed it.

  20. Denninger at MarketTicker is on it:

    Now we’re cooking…

    For big banks, “there’s a possible nightmare scenario here that no foreclosure is valid,” said Nancy Bush, a banking analyst from NAB Research. If millions of foreclosures past and present were invalidated because of the way the hurried securitization process muddied the chain of ownership, banks could face lawsuits from homeowners and from investors who bought stakes in the mortgage securities – an expensive and potentially crippling proposition.

    Yep.

    And this wasn’t hurried – it was intentional.

    MERS allowed big financial firms to trade mortgages at lightning speed while largely bypassing local property laws throughout the country that required new forms and filing fees each time a loan changed hands, lawyers say.

    You mean ignore the law, not “bypass” the law. Oh wait – bypass does mean ignore, doesn’t it?

    Kentucky lawyer Heather Boone McKeever has filed a state class-action suit and a federal civil racketeering class-action suit on behalf of homeowners facing foreclosure, alleging that MERS and financial firms that did business with it have tried to foreclose on homes without holding proper titles.

    “They have no legal standing and no right to foreclose,” McKeever said. “If you or I did this one time, we’d be in jail.”

    Indeed, just as if I showed up, busted in your house and changed the locks I’d be in jail too.

    But heh, when they do that in Florida, the Sheriff refuses to arrest the perpetrator.

    Janet Tavakoli, founder and president of Tavakoli Structured Finance, a Chicago-based consulting firm, said that for much of the past decade, when banks were creating mortgage-backed securities as fast as possible, there was little time to check all the documents and make sure the paperwork was in order.

    But now, when judges, lawyers and elected officials are demanding proper paperwork before foreclosures can proceed, the banks’ paperwork problems have been laid bare, she said.

    The result: “Banks are vulnerable to lawsuits from investors in the [securitization] trusts,” Tavakoli said.

    Darn tootin’ they are.

    Gee, if the so-called Trust never took delivery of what it claims it did when it sold those MBS to investors then the investors are holding an empty box, and they’re likely to get a bit ****ed when they figure it out.

    TIME TO GET ****ED FOLKS – THERE ARE MORE THAN SIX TRILLION DOLLARS WORTH OF THESE POTENTIALLY-EMPTY BOXES OUT THERE!

    There are a few people – Janet included – who have been on this for a long time. Indeed, when the light came on in this regard in early 2007 it is what prompted me to start writing The Ticker in the first place!

    “Joe on the Street” largely doesn’t understand what happened here. He thinks, and the mainstream media sells to him incessantly, that his was all just “unbridled speculation” or “mistakes.”

    It was not.

    Janet, myself and a few others – including Bill Black – have said that the essence of what happened here was fraud and deception, not “speculative froth” or “mistakes.”

    Until the common man on the street comes to understand that he didn’t get screwed because of bad luck, but rather he was intentionally assaulted, he will not rise and demand that these screwjobs be unwound and the people involved held to account.

    Yet until that happens we cannot clear the economy or begin to rebuild this nation’s productive economic resources.

    WAKE UP AMERICA!

    http://market-ticker.org/akcs-www?post=168499

  21. New thread up by Dakinikat on the same topic

Comments are closed.

<span>%d</span> bloggers like this: