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already posted:
http://spurstalk.com/forums/showthread.php?t=163166
Texas Attorney General Greg Abbott called for a halt on foreclosures Monday amid nationwide scrutiny over the way they are processed.
Notices to suspend foreclosures were sent to 27 loan servicers doing business in Texas, including Bank of America and JPMorgan Chase, the attorney general's office said. It did not have the full list of companies available late Monday.
The office also called for a halt on the sales of properties previously foreclosed upon, which might affect auctions scheduled today, and on evictions of people living in such properties.
The office said it began investigating foreclosures last month after reports that an employee of Ally Financial, a large mortgage lender, acknowledged signing thousands of foreclosure do ents without reviewing them as required.
Ally has since suspended foreclosures on certain properties in 23 other states, as have JPMorgan Chase and Bank of America. This is so they can investigate whether their employees rushed foreclosures, a practice called “robosigning.”
In the state's letter to JPMorgan Chase, Paul Carmona, chief of the attorney general's consumer protection and public health division, said robosigning practices can include signing do ents without reading them, signing thousands of do ents a month, signing do ents without proper notarization and signing affidavits falsely claiming personal knowledge of facts.
http://www.mysanantonio.com/news/pol...104323339.html
A JPMorgan Chase spokesman declined to comment on the attorney general's move, and Bank of America officials could not be reached late Monday.
Chase and Bank of America, along with Wells Fargo, service more than 50 percent of the outstanding loans nationwide, said David Zugheri, co-founder of Houston-based Envoy Mortgage.
Abbott sought the foreclosure suspension Monday “in an effort to determine the full harm Texas homeowners may have suffered or could suffer as a result of these business practices,” according to a statement released late Monday by Jerry Strickland, a spokesman for the office.
Abbott's office has not sought a court order and wouldn't say what kind of action, if any, it might take if companies don't comply.
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already posted:
http://spurstalk.com/forums/showthread.php?t=163166
Government interfering with the free market... again...
In this case the "free market" was committing fraud.
Do you support fraud?
You Lie
the government is pausing the process so as to question the dubious mis/application of contract and le laws and procedures that apparently have been widely violated by lenders and their sub-contracted foreclosure meat grinders.
OK, they didn't halt ALL foreclosures then.
States' rights!
nuances!
It wasnt fraud, it was failure to follow the legal formalities in carrying out these foreclosures. But it damn sure wasnt intererference in the free market.
WC is on that stuff.
Essentially, they issued signed do ents saying that they had reviewed the paperwork, and that it was sufficient to support their position.The office said it began investigating foreclosures last month after reports that an employee of Ally Financial, a large mortgage lender, acknowledged signing thousands of foreclosure do ents without reviewing them as required.
This was not the case in either instance. That makes it a clear misrepresentation, i.e. fraud.
My PFA predictions:
No one goes to jail.
No one even gets prosecuted for thousands of discrete acts of fraud, committed by banks against mortgage holders.
The banks are given a grace period to get their tight, promise to do better and pay a big fine without admitting any fault. The end.
I said it before the bailout, I'll say it again. Let them fail.
You're about the only one who agrees with me openly on that.
Maybe I should reconsider.
I could see Greg Abbott nailing a few hides to the wall. He's enough of a straight arrow to get really pissed about (shenanigans) like this.
Greg Abbott ain't gonna nail nobody's hides, esp not any Repug hides.
He doesn't have enough people to audit the banks to see if they did stop their fraud, just like the banks don't have enough people to do the foreclosure/ le search right.
Last edited by boutons_deux; 10-06-2010 at 04:43 AM.
No doubt...wait till the other shoe drops, then we'll see if Abbott is a 'straight arrow'
You focused on my afterthought rather than my prediction.
Always spinning. It's never a straight tale with you, is it?
if ur an insurance company, a sign of relief
Hadn't even thought of that. That's pretty swift, TDMVPDPOY.
Then you should be happy then that these banks that issued/purchased all of these ty mortgages will now face the consequences of their actions.
Personally I am.
We all know that if the shoe were on the other foot and it had been a homeowner who ed up on the paperwork, the bank would damn well use every means in their possession to hold the homeowner to it.
The banks got greedy and sloppy. The price of skimping on labor to do things right is now being collectively paid.
Too bad the shareholders of these ins utions, and not the management that ed it up, will end up paying the price.
Quite frankly, I think that companies should ins ute universal "claw back" clauses in any executive contract for just such cases to get back some of the compensation paid out for incompetance/greed.
The executives who made themselves look good through sloppy padding of revenues got THEIR money a long time ago. The people left holding the bag are the shareholders, who are essentially anybody saving for retirement.
I agree with some conditions.You're about the only one who agrees with me openly on that.
Maybe I should reconsider.
The problem is that we can't let one bank fail without causing a lot of "collateral damage".
At some point, we need to limit the ultimate size of banks, as well as take steps to limit the interlinking of ins utions. This requires regulation and government enforcement of that.
If you can keep the banks a bit smaller and keep the domino effect from taking down other banks, then I would be all about punishing the out of the management and stockholders.
Stockholders tend to be very tolerant of generous management compensation, and compensation schemes that are more in the interest of management than shareholders.
Bank foreclosure cover seen in bill at Obama’s desk
Bank foreclosure cover seen in bill at Obamas desk
WASHINGTON (Reuters) - 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 do ent notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal do ents.
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 do ents, and led to widespread halts of foreclosure proceedings.
The legislation could protect bank and mortgage processors from liability for false or improperly prepared do ents.
http://www.rawstory.com/rs/2010/10/b...l-obamas-desk/
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Amazingly coincidental timing, huh?
I wonder which financial industry lobbyists wrote the bill and paid Aderholt to push it?
Wow.
Good catch B_d.
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