Ohio Attorney General to Mortgage Banks: Sorry, Boys, No Do-Over
For the past few weeks, there have been far too many reports that indicated banks with fraudulent mortgage documentation were going to get away with a rap on the knuckles. Looks like at least one state attorney general isn't going along with that plan:
Ohio's attorney general threw a wrench into the banking industry's push to quickly restart foreclosures by fixing faulty paperwork, and pressed them to modify mortgage loans.
In two letters released Friday, Attorney General Richard Cordray criticized a number of banks and loan-servicing companies, including Wells Fargo & Co.; Ally Financial Inc.'s GMAC Mortgage; Bank of America Corp.; and J.P. Morgan Chase & Co. Mr. Cordray said the banks are trying to paper over fraud committed in foreclosures with temporary fixes that don't address underlying problems in the banks' practices.
"It is not acceptable for a party who believes they submitted false court documents to merely replace those documents. Wells Fargo and any other banks are not simply allowed a 'do-over,' " he wrote in the letter to Wells. The other letter was sent to Ohio judges, who were asked to notify Mr. Cordray when banks file substitute affidavits.
He demanded that the banks vacate any court order or motion that was based on improper paperwork. In an interview Friday, Mr. Cordray said the banks would "be well-served to work out a settlement with the borrowers to modify the loans and work out payments."
Mr. Cordray's letters come as several banks say they have reviewed their foreclosure procedures and are resuming evictions. But his insistence that they go beyond replacing affidavits by employees who have been labeled "robo-signers"—who didn't adequately review underlying foreclosure documentation—threatens to upend banks' efforts to resolve their foreclosure problems.
Mr. Cordray's strategy gives clues to the goals of a 50-state probe, which was announced two weeks ago. Led by Iowa Attorney General Tom Miller, the effort was joined by top law-enforcement officers from all 50 states in response to reports of widespread errors in foreclosure filings and allegations of robo-signing.
"The banks are committing fraud on the court, essentially perjury, and then saying 'Whoops! You caught me! Here's some different evidence and use that instead,' " Mr. Cordray said in an interview Friday. "I know a lot of judges are not going to take kindly to that."
Bank of America declined to comment. A Wells Fargo spokeswoman said Friday the company intends to cooperate with Mr. Cordray's inquiries and doesn't "believe that any of these instances led to foreclosures which should not have otherwise occurred." She added that Wells Fargo has "chosen to submit supplemental affidavits out of an abundance of caution."
http://www.youtube.com/watch?v=NN4v5-Z_TR8
Diabolus est Deus Inversus
Can you spare another war?
Another wasteland?
Another lost generation?
http://www.youtube.com/watch?v=ZGasaah8lrw
Someone with the stones to stand up to the banks. Who knew?
At least someone is on top of this and doing their job.
I think a lot of AGs got caught with their pant(ie)s down. I suspect they were waiting for that law to be passed that would have retroactively made the banks little shenanigans (aka frauds) legal, and when that was mercifully called out, they had to start doing something again. Well done for the ones that are.
It must be nice to be able to do illegal things and then, when you're caught, you just have the law changed so they're not illegal any more.
Poor banks, stuck obeying the laws like the rest of us suckers.
the banksters will change into orange suits and pick up trash along the highway, then go home to a 300 pound tattoed cellmate named Bubba, I'll be a little happier.
May the gods help this man if senator, the right dishonorable Orange Boner, becomes speaker of the Ho's.
"I never meant to say that the Conservatives are generally stupid. I meant to say that stupid people are generally Conservative.”
- John Stuart Mill
Foreclosure Frauds, the Fox in Charge, Elephants hiding in Plain Sight, and Victims
Mortgage lenders cannot be trusted to correct foreclosure wrongs, no more than an addict can be trusted to self-reform; and lenders are not required to know laws –attorneys are!
Also, people who scowl at "deadbeats" don't know everyone's situation. NOT all defaulted owners obtained ill-affordable mortgages. Scores of defaults arose from divorce, medical bills, 'outsourced' jobs, etc. And some elderly people were tricked into usurious "home repair" refinancing.
Understandably, it seems that defaulted owners seek to ‘beat the system’ –a small amount of them do. But people I relate to aren't seeking to get a 'free' home, they're willing to pay rent.
Still, why / how should owners be blamed for refusing to cooperate with erroneous and fraudulent confiscation of their homes? Who can blame people for not wanting to be homeless if there is a LAWFUL method to avoid it?
Also, compare blighted neighborhoods and foreclosure deed conveyances to non-existent mortgage lenders; bankruptcy "Lift Stay" motions that "lack standing," and names on "proof of claims" different from 'lift stays' "movers"; and illegal property deeds. If homeowners 'move out', scoffers will welcome void and blight –and rats and vagrants eventually will come and go. [AND foreclosure "white collar" elephants hide in plain sight] *Foreclosure Frauds, Wells Fargo -the Fox in Charge, and Victimization @ http://newsblaze.com/story/20101028181052lawg...
If any of you think this is the first time the Banks have done this you are sleping. This shit has gone on for the past 30 to 40 years. They lie set people up to make sure they will "NEVER" be able to pay off there home. I know this because these assholes tried to steal my home in 2008. I bought my home in 2007, the paper work said my payment was $1245. You know "FIXED". One thing they don't tell you is that your house payment "is" fixed for 30 years. What they do not tell you is your escrow can be what ever they can get away with and they can get up to 6 months Escrow from you. tell me just how they did this. house was complet Jan of 2007, taxes complet May 1,2007. So every thing "should" be right, right. Nooo, in July of 2008 I get a "NEW" house payment, it went from $1,245 to ""$1,865.00. Yes that right, they (citi) jumped my Escrow $620.00. in one month. Just how many people could pay THAT. These assholes did not know we had no other payments going out,Just the reg bills. When I called them (citi) to talk to there TAX dept. they told me they did not have a phone number to "there" TAX dept. How convenite!!! They told me I did not have the escrow to pay my TAXES. What I found out is "they" hade my taxes @ $5,120 and my insurance @ $947. After some phone calls, the insurance was right but the taxes were about $2020 over what the county told me. this shit went on for 5 months. I finaley had to get my right taxes from the county send them to these assholes signed for and then they fixes my payment, Guess what, they could not find the extra money I payed for 5 months. 3 more months they sent me about $750 over payment, I called as told them I payed more than $750 in over payments and I wanted my money back. Here it is Nov 2010 and they still have "NOT" payed me back, mater of fact,they telling me there is "NO" over payment at all. Its a JOKE when these asshole banks can just try to steal your house and get away with it. Where is MYgoverment when shit like this goes on all over the US. Its just not the repugs, its dems also.
Any one see that congress has set up Elections so "we thepeople"CAN'T put in ALL new people in, in ONE election. This way there are lots of assholes still there to keep the shit going.
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