David Dayen – Rep. Brad Miller: “Protecting Bank Solvency Has Been a Goal of Treasury That I Do Not Share”
By: David Dayen Friday November 19, 2010 7:58 am
Rep. Brad Miller (D NC-13)
One of the more amusing moments of yesterday’s House Financial Services Committee hearings on foreclosure fraud was when the representatives for the loan servicers were asked why they were subsidiaries of the large financial institutions. The link between the servicers and the big banks, mainly caused by a series of mergers, leads to all kinds of conflicts of interest, because it inevitably pairs them up with the originator or trustee of the loan. The servicers had no real answer to this question. Finally, the Wells Fargo representative claimed that it was for “customer convenience,” because some customers had their mortgage and their checking accounts at the same bank.
Everyone’s jaw dropped in the hearing room.
From Crooks and Liars:
By Susie Madrak
From lauraflanders | October 27, 2010
Sarah Ludwig notes that the foreclosure fraud accusations rocking the nation’s biggest banks are just a new round in the abuses that have been going on for years now. “These practices are rancid and they go from the beginning stage all the way to foreclosure,” she says, pointing out that in 27 states, lenders don’t even have to go to court to file a foreclosure, making fraud even easier.
So what can we do? Ludwig, co-director of the Neighborhood Economic Development Advocacy Project, joins us in studio to break down the crisis for us, and to give some solid advice to those facing foreclosure: don’t give up without a fight.
By: masaccio Monday October 25, 2010 8:30 am
The administration and the banks want you to believe that there is nothing more to foreclosure fraud than just mere paperwork. I point out here that the false affidavits and rocket dockets can rob people of their legal rights. But that was just the first grade primer. When home mortgages are securitized, a whole new level of legal rights and duties are set up that go far beyond the minimal requirements of the Uniform Commercial Code. The interaction of these rights and duties make it difficult to determine who is entitled to enforce securitized mortgage notes.
I am grateful to Yves Smith for introducing me to this set of issues.
We will be looking at a specific securitization, that of GSAMP Trust 2007-NC1, which we will call the Trust. The letters stand for Goldman Sachs Alternative Mortgage Product, and New Century, the giant mortgage originator that collapsed into bankruptcy with an array of fraud claims. The Trust is governed by a Pooling and Servicing Agreement, the PSA, which is here. There are seven parties to the PSA, and the rights and duties of each are described in excruciating detail.
By: David Dayen Monday October 25, 2010 9:36 am
We’re a little over a month away from the recommendations of the catfood commission, and while they are expected to fall mainly on the spending side, Damian Paletta sees the possibility of a number of tax expenditures falling by the wayside.
Sacrosanct tax breaks, including deductions on mortgage interest, remain on the table just weeks before the deficit commission issues recommendations on policies to pare back with the aim of balancing the budget by 2015.
The tax benefits are hugely popular with the public but they have drawn the panel’s focus, in part because the White House has said these and other breaks cost the government about $1 trillion a year.
A Solution to Rebuild Confidence in the Housing Market
SOURCE: AP/Damian Dovarganes
Thousands of people wait in line at the Los Angeles Convention Center for free mortgage help in downtown Los Angeles on September 30, 2010.
By Peter Swire | October 11, 2010
The public is dissatisfied with government performance, but that dissatisfaction doesn’t translate into government-cutting mania, explains Ruy Teixeira.
From Common Dreams:
Foreclosuregate: Time to Break Up Too-Big-To-Fail Banks?
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US Weighs Endorsing Indigenous Rights Declaration
Canada Declares BPA Toxic. Is the US Next?
Report: US Military Continues ‘Toxic Burn Pits’ in Afghanistan and Iraq
German Renewable Energy Pioneer, Hermann Scheer, Dies
By: emptywheel Friday October 15, 2010 5:40 am
The NYT has a fascinating story about the $75,000 house that led to the GMAC deposition on robosigning that finally alerted the world to the extent of the fraud behind foreclosures. It’s worth reading for the description of Thomas Cox, a lawyer who volunteers at legal assistance to make right for his years of doing foreclosures, the description of the errors GMAC made even after the court started looking closely, and the detail that GMAC has now spent more on legal fees trying to foreclose on this house than the house itself is worth.
But I’m particularly interested in this: