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Just last week, a majority in Congress attempted to help out their bankster constituencies, the same constituencies that pay for Congressional campaigns, by passing a new notarization bill which would allow....
"..foreclosure and other documents to be accepted among multiple states. Consumer advocates and state officials had argued the legislation would make it difficult for homeowners to challenge foreclosure documents prepared in other states."
President Obama, ever the bipartisan, didn't want it to look like he was on the same side as the banksters who robbed America, so he used his "pocket veto" powers to send the bill back to Congress for rework, demonstrating that he was on the side of defrauded mortgage purchasers....millions of them.
But, then on the other Obama hand, fearful of being proven a "socialist", or unfriendly towards business this close to an important midterm election, the President sent David Axelrod to the Village airwaves on Sunday to split the baby in half...
Appearing on CBS' Face the Nation Sunday, David Axelrod was cool to the idea of a moratorium.
"I'm not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward and where the documentation and paperwork is proper," said Axelrod.
"We are working closely with these institutions to make sure that they expedite the process of going back and reconstructing these and throwing out those that don't work," he said.
The White House announced Friday that the president would block a bill that would have made it more difficult for home owners to challenge foreclosure.
Why would the White House not be in favor of a moratorium on foreclosures?
Rep. Brad Miller (D-NC): There is massive potential liability for the securitizers, which are mostly the biggest banks. The contract was that if mortgages didn’t meet certain requirements, then the securitizer would buy them back. The mortgage servicers and trustees have exclusive control over the paperwork. Both the investors, the people who own the mortgage-backed securities, and the homeowners, really depend on them. There’s been lots of litigation where investors try to get securitizers to buy back the bad mortgages because they were flawed, but that litigation has been stymied by procedural objections. If the private investors can break through that defense and require the mortgages that don’t meet the requirements to be bought back, the liabilities for the biggest banks will be enormous.
Ezra Klein: So this is, in other words, a problem for bank balance sheets. These banks bought the mortgages from individuals, packaged them into securities, and then sold them to investors. But because the mortgage contracts weren’t valid, the investor can potentially force the banks to take the mortgages back, thus blowing a new hole in their balance sheets?
Brad Miller: Right. They’ll have to buy them one mortgage at a time.
So, the White House doesn't want a moratorium on foreclosures, even if a significant percentage of those mortgages being foreclosed on do not have the required paperwork to legally justify foreclosure.
In this, the White House.....just as it has done on many occasions.....sides with and protects the powerful players of the mortgage process....the very players responsible for the crisis in the first place.
While the White House may not favor a moratorium on foreclosures as it seeks to protect the villains of our nation's financial collapse.....America's largest bank,
Bank of America, said Friday that it was extending its suspension of foreclosures to all 50 states.
Bank of America, the nation’s largest bank, said Friday that it was extending its suspension of foreclosures to all 50 states.
The plan swept states with some of the highest foreclosure levels, including California, Nevada and Arizona, into a swelling crisis over lenders’ flawed paperwork that had been mostly confined to 23 other states that require judicial review of foreclosures.
How bad is the foreclosure process that Bank of America would declare a moratorium, even though the White House doesn't have the political guts to do so?
Simply read this account from part of Florida's "foreclosure mills" process.....
I went with a family member to court in attempts to stop a foreclosure sale….we were there sitting in court waiting….I heard this judge take on other cases…. Regardless of their issue this judge just kept on denying every motion that he was hearing. Not even taking the time not even a minute or a second to even glance at the documents these poor homeowners were bringing to him.
People were telling him that they have been approved and/or were being considered for a modification under HAMP and that they were there to ask to have the sale of their home stopped because apparently the plaintiffs attorneys were not aware of this information. As you may all know, most of these attorneys DO NOT maintain constant contact with their clients, therefore servicers even though they may place in their system for a sale to be postponed based on loss mitigation approval, still, it doesn’t reach their attorneys in time to actually stop the sale. So homeowners are being told by the servicers to actually try and contact the attorneys because they are not able to. Unbelievable but true….
Once the homeowner left the court room the judge asked… “what is this HAMP that these people keep claiming they are approved for?” mannnnn I said to myself… “this judge must have been pulled from retirement from another part of this world, and to get put on the stand to make these decisions… the courts must really be desperate for not even taking the time to even educate them about the huge issue at hand with these foreclosures and modifications and fraudulent documents etc…. then after denying a few more cases in less than 2 minutes he said… “WOW… and i got paid to do this everyday 5 days a week?… this is easy.”
As the mortgage bubble inflated, banksters, appraisers, real estate agents, and mortgage brokers conducted massive fraud on home buyers.
Since the mortgage bubble deflated, banksters, alleged mortgage holders and even judges have been, once again, conducting massive fraud on many of the same people defrauded initially.
Congress rushes to help the defrauders, the President wants to have it both ways, and Americans are still getting screwed.
So everything is as it should be, I guess.