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Ear to the Ground

Banks Push to Appease Regulators With Low-Ball Damage Compensation

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Posted on May 15, 2011
Flickr / respres Some rights reserved

Investigators at the United States Trustee Program, which oversees U.S. bankruptcy cases, are collecting mountains of evidence that show that banks industrywide are hurrying huge numbers of borrowers out of their homes prematurely, based on false loan repayment claims.

The false claims made by lending banks, which include Bank of America, Citigroup, GMAC, JPMorgan Chase and Wells Fargo, rarely favor borrowers. The $5 billion mentioned below, which lending institutions have offered in order to settle allegations of shady practices, probably represents just a fraction of the total damages incurred. Consequently, banks are fighting to thwart and delay trustee investigations by offering data on a case-by-case basis that they can tailor to hide abuses inherent in overall policies and procedures.

Such broad knowledge would probably give prosecutors the evidence needed to make more damning indictments of the kind that led last week to the conviction of hedge fund manager Raj Rajaratnam. —ARK

The New York Times:

As the Rajaratnam verdict captivated many on Wall Street last week, the institutions that service about two-thirds of the mortgages in this country offered to pay $5 billion to settle allegations about robo-signing and other shady practices that quick-step troubled borrowers out of their homes.

... Because evidence of extensive and abusive servicing practices does in fact exist. It is piling up at the offices of the United States Trustee Program, the arm of the Justice Department that monitors the bankruptcy system. Over the past six months, the trustee has drawn material from 95 field offices covering 88 judicial districts. The findings should dispel any notion that toxic servicing practices were atypical or have done no harm.

... Mistakes happen, of course. And loan servicers like to contend that if errors occur, they are rare and honestly made. But after sifting through the data produced by this investigation, Mr. White disagreed that problems are rare. “In Senate testimony, an executive from Countrywide said its error rate was 1 percent,” Mr. White recalled. “The mortgage servicer industry error rate might be 10 times higher, based on the number of cases we are looking at.”

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MarthaA's avatar

By MarthaA, May 16, 2011 at 10:23 am Link to this comment

“The sound you hear is residential real estate values going down
the drain.

The price of real estate is dependent on finance.

The ability to sell real estate is dependent on finance.

The real estate marketplace depends on clear title. If you don’t
know or can’t trust who owns what the market will come grinding
to a halt and taking values with it.

The US used to have a pretty workable title law system. Then Wall
Street came along and entered the marketplace.

If you were caught perpetrating just one of the frauds described in
this video, you’d be looking at a long stay in the Gray Bar Hotel.

The top tier banks in the US not only engaged in forgery and fraud
tens of thousands of times, they used fraudulent documents to
deprive people of their property.

And so far, not one person has gone to jail over this.

Short Film About Banks Gone Wild:
http://www.realecontv.com/videos/real-estate/banks-gone-wild.html

Report this
MarthaA's avatar

By MarthaA, May 16, 2011 at 10:15 am Link to this comment

A short film about real estate banks going wild:

http://www.realecontv.com/videos/real-estate/banks-gone-wild.html

“The sound you hear is residential real estate values going down
the drain

The price of real estate is dependent on finance.

The ability to sell real estate is dependent on finance.

The real estate marketplace depends on clear title. If you don’t
know or can’t trust who owns what the market will come grinding
to a halt and taking values with it.

The US used to have a pretty workable title law system. Then Wall
Street came along and entered the marketplace.

If you were caught perpetrating just one of the frauds described in
this video, you’d be looking at a long stay in the Gray Bar Hotel.

The top tier banks in the US not only engaged in forgery and fraud
tens of thousands of times, they used fraudulent documents to
deprive people of their property.

And so far, not one person has gone to jail over this.

Report this
MarthaA's avatar

By MarthaA, May 15, 2011 at 8:29 pm Link to this comment

Populous and populace do not mean the same thing, the words are specifically different, as populous refers to many inhabitants; while populace refers specifically to the common people, the masses; the majority common population, the American Populace or Back Street America that is being attacked, apart from the minority populations of Wall Street and Main Street who are the attackers and have been the attackers ever since the Conservative Revolution began in the 1980’s, which is why I use the word populace, instead of the Right-Wing’s most preferred populous

It is more important than ever that the populace of the United
States, the Left, the Majority Populace all over the United States
be represented by a political party, because the cumulative voting
strength and contributions of the 70% Majority Common
Population of the United States as a united class and culture are
all that stands a chance to counter balance the fascist leanings of
the current Right-Wing Supreme Court led by Roberts and his
Right-Wing Cronies and the corporate interests of Wall Street and
Main Street.

Wall Street has the Republican Party;  Main Street has the
Democratic Party; and the American Populace have no political
party
and are unrepresented in the making and enforcing of
legislated law and order in the United States of America, which is
why the American Populace is being tyrannized.

Even though it appears to be Main Street being attacked, it is
more specifically a Back Street attack upon the American Populace
and the infrastructure for the American Populace that is causing
and has caused the destruction of small town Main Streets across
the USA and imprisonment of a large majority of America’s
populace because of oppressive and tyrannical laws made by Wall
Street and supported by Main Street to oppress the populace and
destroy the populace’s public school system.

If the 70% majority American Populace as a class and culture, do
not choose to be ruled by Wall Street supported by Main Street,
then Back Street, the 70% Majority Populace of the United States
must always forgo backlash votes between the
Democratic Party and the Republican Party and secure a political
party of their own with representatives for America’s populace in
government of the United States by whatever expedient means
necessary in order that the American Populace as a class and
culture will be able to have an equal part in the making and
enforcing of legislated law and order in the best interest of the
70% majority American Populace as a class and culture in the
United States that is currently being assaulted by oppressive and
tyrannical laws.

It is not necessary for the American Populace to take over the
Republican Party that represents Wall Street’s American
Aristocracy, as the Tea Party did to help the Right; but the
American Populace, who are the Left, do have to take over the
Democratic Party of Main Street America’s Middle Class, because
the Democratic Party is the only political party of the two that can
be secured for the 70% majority populace of the United States,
because it can be made to represent the entire American Populace
and form a balance, at least until more political parties that are
equal with the Democratic Party and the Republican Party can be
formed through legislation to represent the New Middle Class. 

Awareness in the 70% majority populace must emerge and when
awareness is sufficient to establish a new order that will represent
the 70% majority populace in the making and enforcing of
legislated law and order in the best interest of the Majority
Populace in the United States it must be done to counter the
Fascist tyranny of the Corporate Right.

Report this
MarthaA's avatar

By MarthaA, May 15, 2011 at 8:25 pm Link to this comment

Populous and populace do not
mean the same thing, the words are specifically
different, as populous refers to many
inhabitants; while populace refers
specifically to the common people, the
masses; the majority common population, the
American Populace or Back Street America that is
being attacked, apart from the minority
populations of Wall Street and Main Street who
are the attackers
and have been the
attackers ever since the Conservative Revolution
began in the 1980’s, which is why I use the word
populace, instead of the Right-Wing’s
most preferred populous

It is more important than ever that the populace of the United
States, the Left, the Majority Populace all over the United States
be represented by a political party, because the cumulative voting
strength and contributions of the 70% Majority Common
Population of the United States as a united class and culture are
all that stands a chance to counter balance the fascist leanings of
the current Right-Wing Supreme Court led by Roberts and his
Right-Wing Cronies and the corporate interests of Wall Street and
Main Street.

Wall Street has the Republican Party;  Main Street has the
Democratic Party; and the American Populace have no political
party
and are unrepresented in the making and enforcing of
legislated law and order in the United States of America, which is
why the American Populace is being tyrannized.

Even though it appears to be Main Street being attacked, it is
more specifically a Back Street attack upon the American Populace
and the infrastructure for the American Populace that is causing
and has caused the destruction of small town Main Streets across
the USA and imprisonment of a large majority of America’s
populace because of oppressive and tyrannical laws made by Wall
Street and supported by Main Street to oppress the populace and
destroy the populace’s public school system.

If the 70% majority American Populace as a class and culture, do
not choose to be ruled by Wall Street supported by Main Street,
then Back Street, the 70% Majority Populace of the United States
must always forgo backlash votes between the
Democratic Party and the Republican Party and secure a political
party of their own with representatives for America’s populace in
government of the United States by whatever expedient means
necessary in order that the American Populace as a class and
culture will be able to have an equal part in the making and
enforcing of legislated law and order in the best interest of the
70% majority American Populace as a class and culture in the
United States that is currently being assaulted by oppressive and
tyrannical laws.

It is not necessary for the American Populace to take over the
Republican Party that represents Wall Street’s American
Aristocracy, as the Tea Party did to help the Right; but the
American Populace, who are the Left, do have to take over the
Democratic Party of Main Street America’s Middle Class, because
the Democratic Party is the only political party of the two that can
be secured for the 70% majority populace of the United States,
because it can be made to represent the entire American Populace
and form a balance, at least until more political parties that are
equal with the Democratic Party and the Republican Party can be
formed through legislation to represent the New Middle Class. 

Awareness in the 70% majority populace must emerge and when
awareness is sufficient to establish a new order that will represent
the 70% majority populace in the making and enforcing of
legislated law and order in the best interest of the Majority
Populace in the United States it must be done to counter the
Fascist tyranny of the Corporate Right.

Report this

By Morpheus, May 15, 2011 at 4:24 pm Link to this comment

We are all suckers.

”If you’re tired of being treated like a sucker, stop acting like a lolli-pop.”
~ Dan Thomas

FIGHT THE CAUSE - NOT THE SYMPTOM
Wake up America. It’s time…
 
“THE REVOLUTION HAS STARTED”
Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )
 
“Spread the News”

Report this
 
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