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Catherine Austin Fitts: The Foreclosure-Gate Conspiracy and Ongoing Coverup

It is critical to note that there is absolutely no reason for the government not to sell current FHA, Fannie Mae and Freddie Mac mortgage portfolios using an eBay-type auction system of mortgage and real estate market-making. Indeed, the transparency and access of such a system would stimulate the local real estate markets and allow many American homeowners to finally achieve timely and economic workouts on their under-water mortgages – in a way would even save money for taxpayers. The only reasons I can think of to dump the whole pile of defaulted and under-water home mortgages into the large institutions and banks (as is, apparently, the Administration’s current plan) are to: (1) facilitate the shredding of mortgage files and thereby keep the extent of past rampant mortgage fraud in the mortgage-backed securities market a secret (see MERS/MBS/Foreclosure Goes RICO for examples as alleged in a recent lawsuit and Mortgage Robosigning: Must Watch Deposition regarding “robo-signing” problems); (2) feed more profits to the very large banks and other institutions that were responsible for creating the housing and national and international economic crisis in the first place and that failed to “trickle down” the benefits of the TARP and other rescue packages previously financed at taxpayer expense; (3) prevent local communities from having a hand in dealing with the thousands of empty foreclosed properties abandoned by far-away institutional lenders, further pulling down neighborhood property values; and (4) facilitate central planning of the next round of gentrification in American cities and towns, with the attendant poverty, unemployment and social problems. Oh, and, of course, leaving the ownership of home mortgages in the hands of existing financial institution owners might allow them to sweep the “MERS problem” under the rug, prevent local counties from recovering millions of dollars of unpaid recording fees and prevent defrauded homeowners and communities from recovering damages they have suffered as a result of lender mortgage fraud. (See A Comment on Catherine’s Interview on the Keiser Report and Citigroup, Ally Sued for Racketeering Over Database; Lawsuit Alleges that MERS Owes California $60-120 Billion in Land-Recording Fees; and Does MERS Make the US a “BBB” Credit? for information about and potential ramifications of the “MERS problem.”) The notion that it is too difficult logistically to do for non-performing mortgages what eBay does every day for thousands of different assets is complete poppycock. The notion that instituting auctions to large institutional investors is a way to generate better prices is also poppycock. Please don’t listen to it.

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