[PAA-Discuss] With White House Backing, Banks Resume Foreclosure Evictions

[robert]

see zeitgeist: http://www.youtube.com/watch?v=_dmPchuXIXQ

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From: ChasMauch at aol.com [mailto:ChasMauch at aol.com] 
Sent: Wednesday, October 20, 2010 5:24 PM
To: gram.graham at sbcglobal.net; graham2639 at mindspring.com; discuss at paa-tx.org
Subject: Re: [PAA-Discuss] With White House Backing, Banks Resume
Foreclosure Evictions


I read somewhere that not all of the TARP funds were ever expended, and most
of them have been repaid - in fact the treasury may even make a small profit
on the whole deal. Of course there is so much "smoke and mirrors" accounting
sleight of hand involved that it is hard to know what is really going on.
Just like how the Fed prints money out of thin air using a complicated
process that no one understands. Which I am convinced is not an accident.
Have you ever ordered literature from the Fed? They will gladly send you a
large packet of it - all using so much Fedspeak and obscure terminology that
no one can possibly follow their explanation. At root we know that as John
Kenneth Galbraith said, "The process by which money is created is so simple
that the mind is repelled." We know they just conjure it out of the air and
the whole process is totally bogus but they try to make it so complex no one
can understand it - and seem to succeed in doing that. Maybe we all need to
begin by studying how (and more importantly, why) the process works. Until
we do that we are just mad as hell about something but we aren't sure what.
Charlie
 
In a message dated 10/20/2010 2:29:57 P.M. Central Daylight Time,
gram.graham at sbcglobal.net writes:


wtf.......what happened to the bill that Obama vetoed about the
robo-signatures?  I knew that would be just window dressing for the ignorant
masses to consume...........gd......who is running the country?  It appears
to be Wall Street......hands down
 
and then I heard Stieglitz this morning on DN stating that the stimulus
package needs to be bigger.......like 500B a year.......that would be okay
if it actually got to the people so they could by food to feed their
children.  Last time all 700B went to the banks and they kept it (most of it
went to European Banks (read Rothschild)
 
does anyone even own a pitchfork?  seems like that is what the people
resorted to after being duped for so long by the media/banksters  see:
Pitchforks and Torches http://books.google.com/books?id=XwdnwyPuRvgC
<http://books.google.com/books?id=XwdnwyPuRvgC&printsec=frontcover&dq=pitchf
orks+and+torches+olbermann&source=bl&ots=XlYuTJKfhc&sig=U8MtJETj2MTSM-4P_yKI
Z75vewo&hl=en&ei=8kC_TJ65L8H7lwfPhuzfBw&sa=X&oi=book_result&ct=result&resnum
=1&ved=0CBYQ6AEwAA#v=onepage&q&f=false>
&printsec=frontcover&dq=pitchforks+and+torches+olbermann&source=bl&ots=XlYuT
JKfhc&sig=U8MtJETj2MTSM-4P_yKIZ75vewo&hl=en&ei=8kC_TJ65L8H7lwfPhuzfBw&sa=X&o
i=book_result&ct=result&resnum=1&ved=0CBYQ6AEwAA#v=onepage&q&f=false 
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From: discuss-bounces at paa-tx.org [mailto:discuss-bounces at paa-tx.org] On
Behalf Of Ron and Kris Graham
Sent: Wednesday, October 20, 2010 1:41 PM
To: discuss at paa-tx.org
Subject: [PAA-Discuss] With White House Backing,Banks Resume Foreclosure
Evictions



These banks should've been allowed to collapse two years ago instead of
STEALING $700B taxpayer money to bail them out. This is exactly what is
wrong with our capitalist system. The profit is privatized and all the risk
is socialized on the BACKS OF U.S. TAXPAYERS! If I were a homeowner who
received a foreclosure notice, I'd tell whoever delivered it to stuff it up
his/her ass, and I'd stay in my home and defy anybody to come and try to
kick me out! 

 

Kris

 

http://www.wsws.org/articles/2010/oct2010/mort-o20.shtml

 


With White House backing, banks resume foreclosure evictions


By Tom Eley 
20 October 2010


On Monday, Bank of America (BOA), the nation's largest lender, and GMAC of
Ally Financial announced they are resuming foreclosure evictions and sales
in states where they had temporarily suspended them, claiming that they
found no impropriety in their foreclosure documentation.

BOA's decision means foreclosure proceedings against more than 100,000
homeowners will restart. It is expected that JP Morgan Chase and PNC
Financial, which had also implemented temporary moratoriums on aspects of
the foreclosure process, will follow suit.

Banks had implemented the partial moratoriums in recent weeks after it
became public that they and their contractors had falsified legal documents
relating to hundreds of thousands of foreclosures. Other banks and their
subsidiaries implicated in the scandal, such as Citigroup, Wells Fargo, and
Goldman Sachs, never instituted a moratorium.

All the major banks used "robo-signers," employees who, in lieu of proper
documentation, submitted affidavits falsely attesting they had knowledge of
foreclosure cases. They also falsified notary stamps and signatures. Some
banks simply threw out paperwork, while others hired low-paid "Burger King
kids," as one Goldman Sachs executive put it, to process large quantities of
foreclosure documents.

The move by BOA affects its foreclosures in the 23 states that require
judicial review prior to eviction and sale. New affidavits will be submitted
to courts on Monday.

"We did a thorough review of the process, and we found the facts underlying
the decision to foreclose have been accurate," said Barbara J. Desoer of
BOA's Home Loans unit.

"This is an important first step in debunking speculation that the mortgage
market is severely flawed," BOA spokesman James Mahoney declared.

The bank's claim that it found no evidence of false attestations in its
foreclosure documents after only 10 days of review is simply not credible.

"This wasn't just a simple little mistake of forgetting to dot the 'i,'"
Florida lawyer Peter Ticktin told the New York Times. "There was a whole
system put in place to make false affidavits. How are they going to erect a
new system to do 102,000 affidavits unless they are going to use the same
old law firms to make a second generation of bad affidavits?"

"These are lawyers. These are banks going to court and committing fraud,"
said Ira Rheingold of the National Association of Consumer Advocates. "For
them to say this is a minor technical problem is mind-boggling."

"The companies are overstating the ease of withdrawing these affidavits and
then resubmitting them," Judge Lynn Tepper of Florida's 6th Circuit Court
told the Washington Post.

BOA's move came much sooner than expected and was likely provoked by
mounting pressure from powerful financial concerns. Shares of major US banks
have been pummeled by investors fearful that the revelations throw into
question the validity of securities based on mortgage loans. Before
yesterday's announcement, BOA's stock had fallen by nearly 10 percent over
the previous week.

On Tuesday, an alliance of leading financial concerns-Pimco, the world's
largest bond fund; BlackRock, the world's largest money manager; MetLife,
the world's biggest insurer; and the Federal Reserve Bank of New York-will
sue to seek BOA buybacks of as much as $47 billion in mortgage-based
securities issued through its Countrywide unit.

In addition to accusing BOA of improper documentation, the investors are
accusing the bank "of taking too long with foreclosures," Bloomberg reported
Tuesday.

BOA has already sustained major losses related to mortgage bond buybacks. In
the third quarter, it had to pay $400 million for buyers' claims related to
mortgage representations and warranties. According to the Wall Street
Journal, these "refer to complaints from buyers of mortgages-especially
government agencies Fannie Mae and Freddie Mac-that Bank of America and
other big banks issued mortgages with faulty underwriting or documentation,
and now must compensate them when the loans fail."

In total, BOA has had to pay out $3.3 billion for such claims. It admitted
in a Tuesday earnings report that it anticipates the losses will continue.

Similar demands will likely follow at other banks. A moratorium on
foreclosures would very likely sharpen the conflict between the big banks,
on the one side, and bond funds and money management firms on the other.

It is to avert such a scenario and the risk of reigniting the global
financial crisis that the Obama administration has gone on record in support
of the continuation of foreclosures, disregarding evidence of the banks'
rampant lawbreaking.

The latest administration official to intervene in the crisis on the side of
the banks is Shaun Donovan, secretary for Housing and Urban Development, who
penned a column for the Huffington Post warning of the supposed dangers
should foreclosures be slowed.

"A national, blanket moratorium on all foreclosure sales would do far more
harm than good," Donovan writes. "[H]omeowners are at risk, too-and the best
hope they have is for the 'Foreclosed' signs in front of the vacant,
abandoned properties on their block to come down, so that the value of their
homes can start rising again."

This is an extreme free-market position. Donovan is arguing that speeding up
foreclosures eventually benefits other homeowners by driving down the market
to the point it can deteriorate no more, after which it should, in theory,
begin to improve. The alternative-keeping people in their homes in the first
place-is clearly not up for consideration in the White House.

Donovan assures readers that "a comprehensive review" is underway-not an
investigation-involving a number of US regulatory agencies. Any changes will
be put in place by the banks themselves.

"The message [we] are sending is the same: banks must follow the law-and
those that haven't should immediately fix what is wrong," Donovan writes.

It should be noted that this same promotion of self-regulation set the stage
for the financial collapse of 2008.

Indeed, the mortgage document scandal is a manifestation of an even larger
fraud-the US housing bubble that exploded in 2008. Banks relentlessly
promoted home buying and refinancing to cash-strapped American families with
"teaser rate" loans, subprime loans, and other adjustable rate mortgages.
Massive loan volume was the goal, and the resulting securities-counted in
the trillions of dollars-were bundled, sold, and spread out across the
global financial system. In this process, underlying legal claims to
property title were of only secondary interest.

On these rotten foundations enormous personal fortunes were built up. Then,
when the entire Ponzi scheme collapsed, the Bush and Obama administrations
bailed out the banks to the tune of trillions of dollars, while saddling the
population with the worst housing crisis in US history.

Obama's "housing rescue" of 2009, (Home Affordable Modification Program, or
HAMP) simply encouraged banks to change interest rates and payment plans,
but it did not require them to lower principals, the grossly overvalued
outstanding debt on loans issued during the housing bubble. The program has
been a dismal failure, with only a handful of households gaining permanent
refinancing.

The housing market, meanwhile, has continued to implode. In the third
quarter, nearly one million US homes received a foreclosure filing.

 

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