For those who believe that Republicans: Corporate Kleptocrats and Democrats: Supporters of The People, you had damn well better wake the hell up.
WASHINGTON -- New York Attorney General Eric Schneiderman on Tuesday was kicked off the committee leading the 50-state task force charged with probing foreclosure abuses and negotiating a possible settlement agreement with the nation's five largest mortgage firms, according to an email reviewed by The Huffington Post.
Why? Oh, that's simple: He refused to cowtow to fraud by the banks, and is not going to put up with the crapjob that the Federal Government was trying to ram down the state's throats.
Let's deconstruct the entire fraud-laced mess that mortgages became during the 2000s. In no particular order:
It appears that many of the so-called "RMBS", that is, mortgage-backed securities, were either backed by nothing or were fraudulently issued. This is an extremely serious matter. There is clear evidence that many of these so-called "mortgage-backed securities" never had the mortgages (and promissory notes) transferred into them as required by law and at least a few allegations that some institutions, including Bear Stearns, illegally issued RMBS.
The issue of fraudulent (that is, intentional) misrepresentation as to loan quality is one that has not been explored and nobody has been held to account for it. Yet we know this occurred. We know because not only are there multiple billion-dollar lawsuits over this in the present tense we have sworn testimony from a former risk officer of Citifinancial before the FCIC that states the institution knew the loans they were making, packaging and selling did not meet the quality standards they themselves claimed. This sort of conduct is not an accident, and it was a major contributor to the false "price appreciation" that occurred during 2003-2007 time period in home prices. False demand generated by fraudulent loans causes price increases that are not representative of actual value. There should be a criminal and civil sanction for the damage done to everyone in America by these acts including restitution.
To cover up the above over 150,000 falsely-sworn affidavits and other process paperwork were filed in US Courtrooms. These ranged from "robosigned" documents where the person attesting to personal knowledge never read the document in question to claims of "lost" paperwork that was in fact intentionally destroyed or intentionally never transferred to the putative holder in the first place. A claim that something was "lost" when you never possessed it as a consequence of your willful act is an act of fraud. Notice how when the suits for foreclosure are filed nobody claims to be a creditor, but rather is a "holder"? There's a reason for this - in many cases there was no economic loss by the person claiming the right to foreclose, and yet equity and statutory law provides that in order to sue someone there must be a harm you suffered as a consequence of the person you're suing's conduct. When the facts support your case, you plead them. When they don't, you forge documents, pound the table about "free houses" and lie - under oath if necessary.
The chain of supporting frauds has not been explored or stopped. Appraisal fraud, document fraud including altered paperwork by mortgage brokers and others in the chain of custody and other forms of willful and intentional misconduct were part and parcel of the supporting cast of actors in the bubble and its subsequent bust. While some of it was nothing more than wild-eyed speculative fervor (it's not against the law to be stupid) there's plenty of evidence of intentional misconduct in some of these acts and all of them merit a full exposition and investigation.
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