Rather Than Investigating Foreclosure Fraud, House Republicans Vow To Investigate Loans To Poor People

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

Editor’s Note: THAT’S IT. BLAME THE POOR PEOPLE — THE ONES WHO KNOW THE LEAST ABOUT FINANCE AND MORTGAGES.

It is not as ominous as it sounds. No matter where they look they are going to find that the mortgages, notes and obligation are hopelessly obscured. Finding loans to “poor people” or people who are NOW poor because of the mortgage fraud and foreclosure fraud by the banks is going to lead back to shady practices, predatory lending and invalid liens. It will also lead back to the fact that there was NO LOAN by the originator who appears on the mortgage documents. Politicians will TRY to do the bidding of the banks by diverting attention away from their own fraud, errors, perjury, forgery and fabrication, but the horse is already out of the barn.

by Pat Garafolo, Over the weekend, the Washington Post provided some more details about the ongoing foreclosure fraud scandal, noting that “virtually everyone involved – loan servicers, law firms, document processing companies and others – made more money as they evicted more borrowers from their homes, creating a system that was vulnerable to error and difficult for homeowners to challenge.” A bevy of Democratic lawmakers have called for examinations of the banks’ potentially fraudulent activities, while the Attorneys General of all fifty states have pledged a coordinated investigation.

Republicans, however, have been largely silent on the issue. And according to Rep. Darrell Issa (R-CA), who is slated to take over the House Committee on Government and Oversight should the Republicans gain a majority, the GOP is not really interested in the banks’ malpractice. Instead, Issa wants to “launch aggressive inquiries” into whether the government helped poor people buy houses they couldn’t afford:

The conservative Republican from California, who would become chairman of the powerful House oversight and government reform committee, said hearings would focus on whether the federal government should be involved at all in sponsoring home loans for the poor.

Such hearings would evidently “centre on the roles of Fannie Mae and Freddie Mac,” which Republicans have blamed for the financial collapse of 2008, despite the overwhelming evidence to the contrary. As the Wonk Room explains, Issa’s pronouncement is part of an ongoing conservative effort to scapegoat homeowners and government for Wall Street’s malfeasance.

While the GOP likes to blame homeowners for the country’s economic woes, in the last decade, as the Center for American Progress has documented, banks were still systematically charging minorities higher costs for loans and pushing them into expensive subprime mortgages, making government policies to ensure fair access to credit a necessary step. It says a lot about the Republican mindset that banks evicting homeowners who aren’t in foreclosure doesn’t merit an investigation, but a low-income family receiving a mortgage in a traditionally under-served community does.

38 Responses

  1. Issa, a former Professional Carjacker, wanted to indict senators just a few months ago:

  2. Its the Wild-Wild-West at its best, a “GANGSTER GOVERNMENT” Enjoy it while you can!!!
    http://kareemsalessi.wordpress.com/historic-counterfeits/

  3. As I listened to the post-election press conferences the other day as the Republican leadership invoked their favorite catchphrase “the American people” over and over and over, I thought my head would explode if they said it one more time! When did the Republican party become the defenders of the rights of the people against the tyranny of the rich and powerful? What plan have the Republicans put forth that could have convinced honest, hard-working middle-class Americans that their only hope was to throw out the Democrats they elected a short two years ago and return to the Republican policies that brought us to the brink? Well, we have all heard the definition of insanity…

  4. Another 600 billion for the “Banks” Thanks FED. I already have some cardboard for the bottom of my shoes ready and bread will stay fresh in the frig for about a week. This will never end, we are doomed as a Nation.

  5. Issa and friends:

    We will not let you and friends cover up the banking scandals.

    Your party will not prolong the cover-up, or you will regret 2012.

    You Reps, and the Dems before you are selling us out. Your parties are a utter disgrace to America.

    Your and the Washington State Supreme Court’s ‘pensions’ are dependent on covering up these banks’ crimes. I don’t believe in anything related to this so-called government anymore.

    Indict you along with the banks.

  6. DyingTruth

    your plan , I LIKE IT!!…& fwiw.. its… NO thank you for your service!

  7. It’s the easiest, most logically effective and least time, energy and resource consuming. Why throw so much work into a laundry list of complaints when it’s much easier and effective to just say:
    “We’ve all decided that, we’re gonna have to let you go. Here’s your 2 weeks notice, thank you for your service.”

  8. Did you know that only about 27% of people voted this year? Do you know Why? Because we don’t trust people in our Government period. We already don’t like what we got, because what we got were more politicians instead of solutions at a time none of us were ready or willing to delegate any government powers from the people to any selected group of individuals without some rock solid guarantee of public accountability to the people.

    Start petitions they’re free. Divide them CLEARLY by states, districts etc.. for the removal of whoever is the current talking head AG, Governor, Senator, Rep. etc… and state demands that NONE of those positions may be filled until a binding agreement is made between the constituencies and those elected with specific conditions to be fulfilled and consequences for not fulfilling them. Once the number of petitions exceeds the number of their votes their out. Free Petition site that can be merged with others. > http://www.ipetitions.com/

    We’re the boss, and we shouldn’t have to live according to their schedule.

  9. Okay, investigate TARP loans made to poor banks with criminal histories and poor municipal governments laundering money through public pension funds.

  10. http://livinglies.wordpress.com/2010/11/04/rather-than-investigating-foreclosure-fraud-house-republicans-vow-to-investigate-loans-to-poor-people/

    They are covering their assess because they have been involved in the counterfeiting of hundreds of trillions of dollars, while buyer dozens of houses with free loans as gifts from the likes of Angelo Mozilo, according to Issa’s own report which came out earlier this year.

    The dimensions of the crimes these gangsters have committed is probably best documented by Kareem Salessi in his blog: http://www.KareemSalessi.WordPress.com

    In his 2008 complaint, linked to WestLaw, he had indicted Angelo Mozilo and his buddies two years in advance of their indictments of a few weeks ago!.

    In his 2004 lawsuit Kareem Salessi had documented today’s economic crimes with unbelievable details, as if it was written today. When someone does that, he is either a part of the scam, or some kind of a whistle-blower. As a victim obviously he was not a part of scam… But how did he come to those details years in advance? This is probably buried somewhere in his litigation documents. Does anyone know?

  11. It’s desparate I wush the AGs would stand up for each if their states listen to the attorneys that are trying to right this wrong that will take decades to clean up I have a list if the finest I have senty AG letters and evidence and they write me back just last week perhaps TG wants my vote or maybe it’s a kiss off. I plan to call and try to talk to the consumer complaints manager Amanda teags that number is 602 542 5763 those in Arizona call in am or send your stuff to her asap

  12. Folks I knew you’d all be pissed i wrote letter to Terry Goddard again…Maybe I should go down there and kick his ass are ya comin beth. I know your a good ass kicker

  13. fighting mad, mad as hell

    Thanks for the heads up. Ameriquest also settled a multi-district court litigation in December of last year. Attorneys got a lot of money – the people got about $20 bucks each – and, likely, a foreclosure.

    What is the AG’s problem – who are they protecting?? Under whose direction??

    BSE – Have tried to be optimistic for many years – sorry I am feeling this way now – but – tomorrow is a new day. Have to keep plugging.

    Deeply disappointed in Obama – he made big mistakes from the onset – appointing Bush officials. I am not political – this is just the way it is.

  14. I am only an hour from DC. If I could get the info in my hands & in my brain enough to explain this stuff – I will SLEEP ON THEIR DAMN DOOR STEPS. I’ll follow them home and to the store. I’ll sit in the bathroom-booth beside them in if necessary and do a NOT STOP filibuster – and keep putting documents & documents in their face. I’ll wear janitor suits and put the files on their desks – whatever it takes but it MUST be in writing – concise – logical and respectful. We have about 2-4 wks to get in. Once we’re in – we’ve made the BIGGEST step. Getting in their face – knocking on their office doors – is KEY RIGHT NOW.

    I spoke with the Dept of Labor License & Regulation today. Maryland has a Task Force active looking for mortgage fraud. No offense but they are dumber than a box of rocks. They are looking for the WRONG stuff – dumb stuff. Every comment is blended with “well it is a shame those borrowers borrowed more than they should-have…” – that was said or implied every 3-5 minutes…

    The problem with that is – it is that’s WHAT THEY SEE… Getting them to STOP & step-back for a moment to look at the over-all scenario is NOT going to happen with the lower level folks. Mentioning the PSA or securitization is hypnotic – the fall asleep – they don’t know what that is… what part of the contract is that..? man, it was enough to make a preacher cuss…

    I believe – if we could get to the NEWBIE representatives before they indoctrinated and polluted, we could snag someone to give us a voice. These folks want to make a good impression. If we don’t get to them before the crony money machines – we’ll get pushed to the way-side and labeled as fringe fanatics… I know all about how these knuckleheads operate…

    If we can present to them a very professional set of documents that are not refutable – easy to follow – expose the multi-layer frauds, we COULD make a difference…

  15. call and meet with the senators and congress people, mee t with their staff and advisers

    get organized and do it in groups, start the grass roots lobbying, many Americans just do not get it we need to push our agenda.

    Yesterday the FED approved without our authorization the largest TAX increase on the working class of America. By pumping money we do not have into the financial system, they are printing money like there is no tomorrow, creating an artificial inflationary scheme. But these crooks only get to inflate the commodities and basic stuff. in six months our purchasing power will erode further.

    Another help for the banksters and we are thrown under the bus. The American voter voted for a lie and now they will get all of us screwed as well.

  16. Did you not know before hand that Republicans were going to do that? I do not know how any sane person will vote these guys into power knowing fully well that they always side with the banks. The banks have been waiting this moment; now I hear every body saying that jobs will be available now. That means that they were hoarding the money until their republican friends come to power. It has happened. I predict the foreclosure will continue and many people will lose their homes. Please do not get me wrong, I love everybody including republicans but they are what the french call “affairiste”.

  17. WE have to be proactive in fighting.
    We have to file with the IRS against all the companies involved in this mess. MERS made it possible to cheat the states and counties out of filing fees, that money can be counted as profit and taxable income. Each sale of the note was income and unreported.
    We have to call, write, file, and demand justice with the agencies in charge of dealing out justice. The IRS won’t start a case unless someone has reported tax evasion against a person or company.
    Nice part is that when the collect, you get up to 10% of the money collected as a reward.
    WE got names and numbers of bank officers, loan officers, mortgage brokers and robo signers.
    If you have been foreclosed on you have to start a lawsuit against whoever foreclosed on you.
    I know bitching about this mess, whining and crying makes us feel better in the short run, but in the long run we have to get up, dust ourselves off and take action!
    As long as we act like doormats and need permission to get up and get angry, then we will be treated like doormats.
    We need court watchers, people who sit and take notes on as many cases as they can a day. Make our presence known in the courtrooms, report back on what we have seen and heard.
    If you have been to court, you need to request a copy of the transcript to use as evidence that you were treated unfairly and a guide to what to do next.
    Even if you are in foreclosure or have already lost your home, go and record your paperwork, officially claim your home, make yourself the last owner of record.
    If your home has been put up for sale, file a claim, put a cloud on your title
    It’s time for guerrilla warfare today and tomorrow.
    Make them spend money on lawyers fighting you.
    ACTIONS SPEAK LOUDER THAN WORDS!
    BLOCK THE EVICTIONS, PICKET THE COURTS, PROTEST IN FRONT OF THE OFFICES OF THE LAWYERS DOING THE BANKS DIRTY WORK! CALL THEM TIE UP THEIR TIME AND PHONE LINES. CALL THE MAYORS, THE GOVERNORS AND ANYBODY ELSE IN POWER. CALL THE WHITE HOUSE, EMAIL THE WHITE HOUSE AND ALL THE CONGRESSMEN!
    WE SHOULD HAVE BEEN DOING THIS ALL ALONG, BUT WE WERE TRYING TO DO THINGS THE PROPER WAY AND WE JUST GOT SCREWED OVER.
    Hound your congressman, county tax clerks and officers, attorney generals an anybody else involved with housing.
    Do something, call the news stations, protest to the newspapers, get on facebook,
    WE ARE NOT AT FAULT, WE HAVE BEEN ROBBED, WE WILL NOT BEAR THE BLAME FOR THIS MESS.
    THAT IS THE NEXT STEP THE BANKSTERS AND REPUBLICANS ARE SETTING UP, BLAME US AGAIN, THE VICTIMS NEED TO BE SLAPPED DOWN FOR DARING TO PROTEST, TO FIGHT BACK.

    IT’LL BE A COLD DAY IN HELL BEFORE I TAKE THE BLAME FOR ANYBODY ELSE’S CRIME!
    I’m totally fed up with it all.

  18. The game is getting nasty, the courts are going to be a block to investigations, it’s already started in Washington State. This just posted on Yahoo.

    By GENE JOHNSON – 2 hrs 10 mins ago

    SEATTLE – The Washington Supreme Court on Thursday blocked the attorney general’s office from releasing certain financial information related to the investigation of a mortgage company, in a case that balanced federal privacy laws with the state Public Records Act.

    A lawyer who handles predatory lending cases filed a Public Records Act request for documents related to the investigation into the lending practices of Ameriquest Mortgage Co. Attorney General Rob McKenna was prepared to release certain information — including customer names, addresses, phone numbers and interest rates — that Ameriquest provided during the investigation.

    The attorney general’s office argued that much of the information was already available in the public record, and thus fell within an exception in the privacy laws, which might otherwise prevent its release.

    But the high court unanimously ruled that the exception applies only to financial institutions — not third parties that receive the information, such as the attorney general’s office. The court said the only information that can be released is that which does not identify a consumer — such as a data showing what interest rates were paid by certain income groups.

    Furthermore, it said, the attorney general’s office may not release the documents with the personal information redacted. Under federal rules, the attorney general can “disclose and use” protected information only in the course of normal duties connected to the investigation — and disclosing the information under the Public Records Act is not a normal part of an investigation, the court said.

    Deputy Solicitor General Alan D. Copsey, who handled the case for the attorney general’s office, said the ruling was important in that it clarified that the federal laws could work in concert with the state Public Records Act, rather than pre-empt it.

    Where federal and state law conflict, federal law can take precedence under the Supremacy Clause of the U.S. Constitution. But the state Supreme Court said there was no real conflict in the case: The Public Records Act has an exception which says disclosure is not required when prohibited by other laws.

    “It clarifies for us how federal law works with the state Public Records Act — that’s the biggest thing,” Copsey said.

    Ameriquest agreed to pay $325 million in 2006 to settle complaints from states. The states accused the company of fraud by pressuring consumers into loans that trapped them in debt and put them at risk of losing their homes.

    Nearly $10 million of that went to 8,750 Washington residents.

  19. How do we the people take control of how much people like Rep. Darrell Issa (R-CA) get paid and then make them pay for the free health care they get? They want us to treat them like kings/queens, but if they want that job then set a modest pay. Our job pay scale has dropped in half so why not all of them? That stands for all parties! They also say that they LOVE their jobs and I wonder why? Everything’s FREE for them.

  20. Isn’t this a form of discrimination? I have learned only about what happened and have become more “educated” only due to this site. So, if I am not on any “government program” I will not be considered someone that should be helped? Well, I stand that all will go to Federal Prison and I will prevail.Fraud is Fraud it’s that simple.

  21. Everone here should be requesting meetings with their Senators and Congressman. Bring your attorneys. Talk to them about the ramifications. Bring your documents. Show them.

    I have a meeting scheduled with my first Senator next week. Come on, let’s put the full-court-press on.

    We are also requesting to testify to the Senate hearings coming up on the 16th. WE NEED HOMEOWNER PARTICIPATION! Get in their faces. Make yourself known. Make yourself a pest. Make yourself someone they cannot turn away from. Demand a response. You have to bird dog this.

  22. I have had a loan with Statewide bank secured by my airplane which was paid off three years ago.
    I have never been able to get my original note back. They kept on telling me that it was paid off and was not sold to anyone – (If I believe them) For all I know it may be floating around in the securitization world somewhere.

    Any idea whether I may file an action against them for monies I paid?

  23. Maybe Congressman Issa will think the mortgage crisis, like the trade towers attack, is a matter left to the state.

  24. ANONYMOUS,

    A sad post today..But I agree.

  25. To AMAN: I read the info. It doesn’t sound like the words “alleged” or “retired” should be used in your sentence – lol. Sounds like a “great guy” – disparaging widows and daughters of the deceased.

  26. Guest Post: Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover

    As economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail.

    And Nobel prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future. See this, this and this.

    Nobel prize winning economist Joseph Stiglitz just agreed. As Stiglitz told Yahoo’s Daily Finance on October 20th:

    This is a really important point to understand from the point of view of our society. The legal system is supposed to be the codification of our norms and beliefs, things that we need to make our system work. If the legal system is seen as exploitative, then confidence in our whole system starts eroding. And that’s really the problem that’s going on.

    ***

    A lot of the predatory practices in automobile loans are going to be able to be continued. Why is it OK to engage in bad lending in automobiles and not in the mortgage market? Is there any principle? We all know the answer to that. No, there’s no principle. It’s money. It’s campaign contributions, lobbying, revolving door, all of those kinds of things

    ***

    The system is designed to actually encourage that kind of thing, even with the fines [referring to former Countrywide CEO Angelo Mozillo, who recently paid tens of millions of dollars in fines, a small fraction of what he actually earned, because he earned hundreds of millions.].

    ***

    I know so many people who say it’s an outrage that we had more accountability in the ’80’s with the S&L crisis than we are having today. Yeah, we fine them, and what is the big lesson? Behave badly, and the government might take 5% or 10% of what you got in your ill-gotten gains, but you’re still sitting home pretty with your several hundred million dollars that you have left over after paying fines that look very large by ordinary standards but look small compared to the amount that you’ve been able to cash in.

    So the system is set so that even if you’re caught, the penalty is just a small number relative to what you walk home with.

    The fine is just a cost of doing business. It’s like a parking fine. Sometimes you make a decision to park knowing that you might get a fine because going around the corner to the parking lot takes you too much time.

    ***

    I think we ought to go do what we did in the S&L [crisis] and actually put many of these guys in prison. Absolutely. These are not just white-collar crimes or little accidents. There were victims. That’s the point. There were victims all over the world.

    ***

    So do we have any confidence that these guys who got us into the mess have really changed their minds? Actually we have pretty [good] confidence that they have not. I’ve seen some speeches where they said, “Nothing was really wrong. We didn’t get things quite right. But our understanding of the issues is pretty sound.” If they think that, then we really are in a sorry mess.

    ***

    There are many aspects of [deterring people from committing crime]. Economists focus on the whole notion of incentives. People have an incentive sometimes to behave badly, because they can make more money if they can cheat. If our economic system is going to work then we have to make sure that what they gain when they cheat is offset by a system of penalties.

    And that’s why, for instance, in our antitrust law, we often don’t catch people when they behave badly, but when we do we say there are treble damages. You pay three times the amount of the damage that you do. That’s a strong deterrent. Unfortunately, what we’ve been doing now, and more recently in these financial crimes, is settling for fractions – fractions! – of the direct damage, and even a smaller fraction of the total societal damage. That is to say, the financial sector really brought down the global economy and if you include all of that collateral damage, it’s really already in the trillions of dollars.

    But there’s a broader sense of collateral damage that I think that has not really been taken on board. And that is confidence in our legal system, in our rule of law, in our system of justice. When you say the Pledge of Allegiance you say, with “justice for all.” People aren’t sure that we have justice for all. Somebody is caught for a minor drug offense, they are sent to prison for a very long time. And yet, these so-called white-collar crimes, which are not victimless, almost none of these guys, almost none of them, go to prison.

    ***

    Let me give you another example of where the legal system has gotten very much out of whack, and which contributed to the financial crisis.

    In 2005, we passed a bankruptcy reform. It was a reform pushed by the banks. It was designed to allow them to make bad loans to people to who didn’t understand what was going on, and then basically choke them. Squeeze them dry. And we should have called it, “the new indentured servitude law.” Because that’s what it did.

    Let me just tell you how bad it is. I don’t think Americans understand how bad it is. It becomes really very difficult for individuals to discharge their debt. The basic principle in the past in America was people should have the right for a fresh start. People make mistakes. Especially when they’re preyed upon. And so you should be able to start afresh again. Get a clean slate. Pay what you can and start again. Now if you do it over and over again that’s a different thing. But at least when there are these lenders preying on you should be able to get a fresh start.

    But they [the banks] said, “No, no, you can’t discharge your debt,” or you can’t discharge it very easily.

    ***

    This is indentured servitude. And we criticize other countries for having indentured servitude of this kind, bonded labor. But in America we instituted this in 2005 with almost no discussion of the consequences. But what it did was encourage the banks to engage in even worse lending practices.

    ***

    The banks want to pretend that they did not make bad loans. They don’t want to come into reality. The fact that they were very instrumental in changing the accounting standards, so that loans that are impaired where people are not paying back what they owe, are treated as if they are just as good as a well-performing mortgage.

    So the whole strategy of the banks has been to hide the losses, muddle through and get the government to keep interest rates really low.

    ***

    The result of this is, as long as we keep up this strategy, it’s going to be a long time before the economy recovers ….

    http://www.nakedcapitalism.com/2010/11/guest-post-another-nobel-economist-says-we-have-to-prosecute-fraud-or-else-the-economy-wont-recover.html

  27. This guy wont last long. He is an alleged retired criminal

    http://en.wikipedia.org/wiki/Darrell_Issa

  28. We need a grassroots movement to get more of this information around the mainstream media , door -to door if necessary…. but how do we fund it? Remember the mainstream media is owned by the wealthy, and this crisis is not yet about blood and gore, therefore the media is not interested.

  29. What is going on with BOA I heard that it is not resuming foreclosures in Florida what about the rest of the country?

  30. It’s crazy we have to pass new laws to enforce the existing ones.

    Thanks for sharing.

  31. This is going to be tough. Watching the stock market soar today – it is becoming increasingly clear that the wealth distribution continues to be top-heavy. With so much power at the top – and so much power in Washington – we may continue to see high unemployment, foreclosures, and many, many Americans struggling. And, frankly – too few in power give a damn.

    Not feeling very optimistic today – we are hearing nothing from AGs – and Chase resuming foreclosures this month – claiming all is now fixed.

    Hope someone can counter this.

  32. That’s a hard sell, but I agree.

    If everyone stopped paying EVERYTHING, they’d have to pay attention.

  33. They all do it. Try to shift our attention onto partial facets of the big problem and blow them out of proportion. Devise more programs to help the so-called under-served as if they are the only victims of this mess—while everyone else dies on the vine—and the bureaucrats take orders from the puppeteers and spend more money.

    Every politician seems to pick their media darling and run with it, so he/she can justify our voting for him/her.

    Honestly, the more I think about it, the more it seems as if these politicians are not too swift. They are like bank employees. I’m not sure most of them are sophisticated enough to understand the issues and the people pulling the strings.

  34. It seems like these people would do anything to go around this. They are so deep in this fraud ordeal that they would do anything to sweep it under the rug. The only way they’re going to do something is if EVERYBODY stops paying their mortgage. These people, both , reps and dems have been bleeding the people dry.

  35. Because the dems made so much progress? Seriously, this is all conjecture at this point and the other side did nothong either.

    Please dont abuse the trust you have gained the past couple of years by engaging in acts of political sandbagging in favor for the party whose ideals that you share.

  36. Get on the websites. Get their contact numbers. Let’s go.

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