Yesterday, the first report on the progress of the National Mortgage Settlement was released. A few investigative journalists are reviewing the report with a critical eye and writing up informative articles like the one by David Dayen at FireDogLake.com here. The main problem with the settlement as most of us saw was there really wasn’t a penalty. The great majority of the $25B was going to be not cash paid by these fraudulent banks but instead credits for things they were and are still doing. For example, if a bank approves a short sale and waives a deficiency from someone who they were never going to be able to collect from anyway, that portion of the deficiency that is waived is applied as a credit to that banks “penalty.” The bank sells the house at fair market value which is better than what it would have gotten post foreclosure and somehow this is a penalty to the bank? Since when is doing what you were doing anyway, doing what is in your best interest, and getting credit for it, a penalty!?!?
In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest loan servicers:
The settlement is supposed to provide as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.
Joseph Smith, the former North Carolina Commissioner of Banks to head the oversight agency for this settlement. His agency, Office of Mortgage Settlement Oversight, has a website with a form to log complaints of ongoing issues that were part of the settlement. The five banks listed above are prohibited from committing the acts that were the basis of the settlement. What are some of these acts might you ask? The settlement was widely called “the robosigning settlement” which many bank friendly regulators and politicians dismissed as “punishing the banks”. Let’s take a look at a sampling of crimes behind the misnomer “robosigning settlement”.
Here’s the main list, then each main category has a detailed checklist to allow for more information on the wrongdoing. The layers upon layers of options allows for a glimpse of the nature, scope, and depth of impact foreclosure fraud and securitization fail continue to have on our nation’s economy, courts, land recordation system, and citizens’ constitutional property and due process rights.
Let’s look into the Foreclosure Issues category a little further.
Now, let’s look into Documentation Problems in Foreclosure category a little further.
Seems like more than just “robosigning”. All this fraud and no real fines…. What a disgrace