Warren Works on Mortgage Disclosure; She Needs to Work on Foreclosure Fraud

Warren Works on Mortgage Disclosure; She Needs to Work on Foreclosure Fraud

By: David Dayen Wednesday September 22, 2010 7:10 am //

Elizabeth Warren has gotten right to work in her new position, announcing at a Treasury forum the intent to simplify mortgage documents for homeowners:

“Disclosure isn’t going to solve all problems, but it is one of the most powerful tools we have for getting people better information so they can make better choices about how they borrow,” Geithner, 49, said at a Treasury forum today. The goal is to “figure out how to, starting with mortgages, bring a little more simplicity and clarity to the existing forms that are out there,” he said.

Warren, seated alongside Geithner, said the meeting with experts from consumer-advocate groups and lenders was aimed at getting ideas “about what information consumers need and when they need it to make the best possible financial decisions.”

This is excellent, and precisely what we want out of a Consumer Financial Protection Bureau. It needs to be teamed with harsh penalties for financial services companies who break the law. Advance America, the nation’s largest payday lender, try to foreclose on their homes without the titles. This major foreclosure fraud is about to blow out into the open after the revelations at GMAC Mortgage (now Ally Financial).

Some of the nation’s largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork – an admission that may open the door for homeowners across the country to challenge foreclosure proceedings.

The legal predicament compelled Ally Financial, the nation’s fourth-largest home lender, to halt evictions of homeowners in 23 states this week. Now it appears hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans.

As head of Ally’s foreclosure document processing team, 41-year-old Jeffrey Stephan was required to review cases to make sure the proceedings were legally justified and the information was accurate. He was also required to sign the documents in the presence of a notary.

In a sworn deposition, he testified that he did neither.

Ally Financial keeps calling this a technical difficulty, but it was a feature, not a bug. Jeffrey Stephan didn’t look closely at the affadavits because he would have learned too much; in fact, he was told not to. And he’s not the only robot signer, and Ally Financial isn’t the only mortgage company employing one. The go-go way in which mortgages were bought and sold, sliced and diced, will come back to haunt the servicers, who don’t own the homes on which they’re foreclosing. Ally only halted evictions in those 23 states because those are the ones which require a court order to evict. But this could collapse the entire foreclosure market nationwide, as well as the mortgage portfolios of practically every lender. This is a time bomb.

Paging Elizabeth Warren.

9 Responses

  1. I hope Elizabeth Warren holds up against the resident powers.

    I think Obama’s hand is forced to get someone competent on his team.

    He’s facing a destroyed presidency that he can’t blame on Bush because he brought in Timothy Geithner, Paul Reuben, and Goldman sachs people. The very people who created the problem.

    Kinda like calling in Adolph Eichmann to give a validation of Judaism.

  2. […] unknown wrote an interesting post today. Here’s a quick excerptSome of the nation’s largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork – an admission that may open the door for homeowners across the country to … Read the rest of this great post here Related Posts:Legal issue with foreclosures may affect other mortgage companies …Warren Gets to Work on Simplifying Mortgage DisclosuresElizabeth Warren, Tim Geithner Look To Simplify Mortgage Red TapeFunds Seek Countrywide, Bear Stearns Home Mortgage Buybacks $11.6 …Consumer Bureau to Expedite Simpler Mortgage Disclosure … This entry was posted on Saturday, September 25th, 2010 at 11:28 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. […]

  3. I don’t like the tone of this one bit. It sounds like they
    want to dodge the bullet by making us believe that the
    problem was that the mortgages were so complicated
    that we didn’t uderstand the small print, and therefore
    we were duped into buying mortgages that were full of deception and trickery and now we’re stuck. True as that may be, millions of us now know that all these mortgages are all so clouded( todays popular term), I
    prefer to say , contaminated , diseased,or quite actually,literally deceased, that they are longer fit in any
    way shape or form to be allowed back in a court of
    so called justice. Back in the sixties I remember my
    Uncle Joe with the title HONORABLE JUDGE!!! Well,
    back then, gay meant happy. And I don’t mean that in
    any derogatory way ” TOWARDS GAY PEOPLE AT ALL”
    If you catch my drift. And my deepest apologies to those Judges and Lawyers,as few as there may be
    that are fighting so hard , not only for their clients, but
    against this nauesously corrupt system. GOD BLESS
    YOU ALL. And to Dear Elizabeth Warren. If this monumental fraud being perpetrated on us all, is not
    the first order of business,or at least brought up on
    the main stream media in the very immediate future, I can only begin to realize that this scheme( PONZI SCHEME) has involvement at the very highest level.
    Let me just say again, if I seemed to ramble a bit.
    First order of business . Close the foreclosure mills.
    prosecute all these lawyers, robosigners,and all these
    relevent employees who knowingly helped destroy
    thousands upon thousands of peoples lives. As
    painstaking as it will be, get these cases to smaller firms in local jurisdictions and sort it out properly as
    our constitutional rights demand. Finally, to all you
    rocket docket judges and lawyers, YOUR NOT UNCLE
    JOE, SO DON’T DARE USE HIS TITLE!!!! TOM

  4. go into the treausury department and federal reserve web sites they have some info

  5. Judges are up for election/re-election come November. Does anyone have any idea of the best way to tell the good from the bad? On the whole, their websites are completely blank.

  6. WE NEED TO GET NEIL GARFIELD TO DO A FACEBOOK PAGE AND EVERYDAY EACH OF US SHOULD FIND 10 NEW FRIENDS FOR THE SOCIAL NETWORK.

    BEFORE IT IS TOO LATE. WE ARE NOT IN THE BLAME GAME

    WE ARE IN THE HELP OBAMA BY SHOWING HIM THAT WE MEAN BUSINESS.

  7. i think there is nothing wrong with our being ” pro se” at least we tried our very best to fight this foreclosure. our judicial system is very corrupt, these judges have been bought either in bankruptcy court or state or federal court. only few judges “get it” and those who gets it are not on the payroll of this giant corporation. i could feel it the biased and prejudiced of these judges. i hope someday that these judges who are in cohort with pretender lenders will be punish. no matter how you pled in your case, judges doesn’t read your motion and the clerk of the court is part of it. all the entire judicial system are CORRUPT. now can you blame me if i don’t exercise my right to vote?

  8. This has been my fear of the Consumer Protection Agency. Before we can go forward – the current situation must be addressed.

    Government has focused on new home buyers – and not the massive mortgage origination and foreclosure fraud. It is as if we do not exist.

    How do we go about contacting the Consumer Protection Agency? Lots to tell.

  9. Wells Fargos doe not build the American Dream but rather the American Ghetto, We need dirt on these bastards.

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