Posts tagged mortgage
New House Bill Wipes Mortgage Fraud Clean For Banksters
The House Financial Services Committee (HFSC), headed by chair Jeb Hensarling, has approved proposed bill entitled, “Protecting American Taxpayers and Homeowners Act” (PATH) that is being sold to the American public as a way “to create a sustainable housing finance system.”
Hensarling explained : “Our plan helps taxpayers and homeowners. It gives power and control back to consumers. Under the current broken system, unaccountable Washington elites have more of a say over who gets a mortgage than your local bank. The current system is a government monopoly run by the same types of Washington bureaucrats who run the IRS. America can do better. Americans deserve better.”
Buried in PATH is the creation of the National Mortgage Data Repository (NMDR) which is the brainchild of the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB).
The NMDR would be “the first comprehensive repository of detailed mortgage loan information. The database will primarily be used to support the agencies’ policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.”
Richard Corday, director of the CFPB asserts that “in order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data. This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work.”
The NMDB would be utilized in conjunction with agencies to:
• Monitor the relative health of mortgage markets and consumers.
• Provide new insight on consumer decision making.
• Monitor new and emerging products in the mortgage market.
• View both first and second lien mortgages for a given borrower.
• Understand the impact of consumers’ debt burden.
The problem that justifies the NMDB is the Mortgage Electronic Registration Systems (MERS) that is a database that was incorporated in 1995 and privately held.
MERS board of directors is filled with vested interest from technocrats such as:
• Freddie Mac
• Wells Fargo
• JP Morgan & Chase Co
• Fannie Mae
• Bank of America
Those financially invested in MERS include:
• Bank of America
• Sun Trust
• Wells Fargo
• Fannie Mae
• Freddie Mac
Hensarling took a ski-trip last April and met with powerful members of the financial Elite who have also made campaign contributions to him through the SuperPAC Jobs, Economy and Budget (JEB) Fund just before PATH was announced by the HFSC.
The “weekend getaway” was attended by:
• A representative from the American Securitization Forum (ASF)
• Len Wolfson, lobbyist for the Mortgage Bankers Association (MBA)
• And other members of the retail industry and finance corporations
Those who have contributed to the JEB Fund around the time of the ski-trip weekend are:
• Capital One
• Credit Suisse
• US Bank
• National Association of Federal Credit Unions
• Koch Industries
• Cash America International
• CheckSmart Financial
• Regions Financial
• JP Morgan & Chase Co
Considering the implications of PATH for the banksters, it may be that those technocrats who contributed to the JEB Fund would be the first to take advantage of the bill should it pass through to become a law.
Supporting PATH, the American Bankers Association (ABA) released a statement saying: “We commend Chairman Hensarling for this thoughtful measure to begin the essential work of reforming our nation’s housing finance system and protecting taxpayers, which includes reforming Fannie Mae and Freddie Mac and refocusing the Federal Housing Administration.”
The ABA went on to say: “We strongly support provisions of the Chairman’s bill that would delay implementation of pending mortgage rules, including Qualified Mortgage, and provide some important and needed changes to that rule. More time is needed to ensure that banks can comply with these complex new rules to avoid unintended effects on credit availability. Clarifications to the rules are also necessary, both those still to be proposed by regulators and others included in this legislation.”
The NMDR would wipe the slate clean with regard to the mortgage fraud that has become apparent with cases being filed in courts all across the nation. Homeowners and attorneys have realized that with the use of MERS, the banks have been able to robosign their way into mortgage debt that was foreclosable.
However, MERS has proven to be a bit of a thorn for the banksters when it comes to proving they hold title to the property they are in the process of seizing. In fact, it appears that the financial Elite did not consider the clogging of the courts and losing their right to foreclose on home based on the lack of evidence that they hold title of the property because of MERS.
Instead, the technocrats have devised a way to take the homes from ALL homeowners regardless of whether or not they have previously won during foreclosure litigation, are in the process of litigation and would file a complaint with the courts at a future date.
One of the outcomes of PATH would be the right of the technocrats to stop current legal standing of the homeowners in court with regard to foreclosure litigation.
Without this provision, the homeowner cannot sue to stop the foreclosure, nor can new complaints be filed with the courts.
But one of the biggest advantages of PATH would be for the technocrats to reopen foreclosure litigation that was ruled on in favor of the homeowner.
Just as with criminal law, the right of protection from being retried for a “crime” is protected under Jeopardy clause.
The civil version of the Jeopardy clause works much the same of the criminal counterpart. Jeopardy can terminate “in four instances: after acquittal; after dismissal; after a mistrial; and on appeal after conviction.”
What this means for PATH and the NMDR is that a homeowner who previously won a suit against the bank and kept their home, would now be under threat of having the case reopened under the new evidence argument.
The bank could simply open a new case in light of PATH that would empower them bring this law in as evidence (should the law be passed). This would also allow the banks to circumvent the Ex Post Facto clause .
By using PATH as the reason to bring old litigation to new light, this scheme would serve to give the banks a way to acquire those properties anyway.
It is a three-fold win for the technocrats thanks to Henserling and the HFSC.
• Future foreclosure litigation is halted because of lack of legal standing for the homeowner
• Current foreclosure litigation would be halted because of lack of legal standing for the homeowner
• Past litigation could be reopened and tried in court for the purpose of taking the property from the homeowner and possibly suing for damages and interests incurred by the original suit
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By Ben Protess
Federal prosecutors in New York sued Bank of America on Wednesday, accusing it of carrying out a mortgage scheme that defrauded the government during the depths of the financial crisis.
In a civil complaint that seeks to collect $1 billion from the bank, the Justice Department took aim at a home loan program known as the “hustle,” a venture that has become emblematic of the risk-fueled mortgage bubble. The complaint adds to a flurry of federal and private lawsuits facing Bank of America’s beleaguered mortgage business.
Bank of America inherited the “hustle” home loan program with its purchase of Countrywide Financial in 2008. Prosecutors say the effort, kept alive by Bank of America through 2009, was intended to churn out mortgages at a rapid pace without proper checks on wrongdoing. The bank then sold the “defective” loans without warning to Fannie Mae and Freddie Mac, the government-controlled housing giants, which were stuck with heavy losses and a glut of foreclosed properties.
By Pedro da Costa and Alister Bull
(Reuters) – The Federal Reserve is likely to deliver another round of monetary stimulus “fairly soon” unless the economy improves considerably, minutes from the U.S. central bank’s latest meeting suggested.
While the July 31-August 1 meeting occurred before some encouraging economic data, including a stronger-than-expected rise in July payrolls, policymakers were pretty categorical about their dissatisfaction with the outlook, according to the minutes released on Wednesday.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” the Fed said.
Wall Street stocks erased most losses after the Fed released the minutes. Treasury bond prices, which have been under pressure from stronger economic figures, extended gains. The dollar fell and the euro surged to a seven-week high against the greenback at the prospect of the Fed providing more stimulus.
Iceland Forgives Mortgage Debt for the Population. Putting Bankers and Politicians on “Bench of Accused”
This is awesome. It shows when the people DO STAND UP they have more power and win against the corrupt bankers and politicians of a country. Iceland is forgiving and erasing the mortgage debt of the population. They are putting the bankers and politicians on the “Bench of the Accused.” Which means I assume they are putting them on trial for corruption.
Now the rest of people of the world need to start doing the same thing. We all need to stand up and against all the corruption and fraud of the banks and politicians that are puppets of the banks and corporations.
By Steve Dibert
Sweetheart Mortgage Deals and Mortgage Assignments Don’t Add Up.
Bobbi Bowman and Zandy Dudiak, Patch.com
A search of land records for the $2 million Great Falls, VA, home of Republican presidential candidate and former Pennsylvania Senator Richard Santorum turns up a series of mortgages that at times equaled and exceeded the sales price of the property.
The industry guideline is usually mortgages should not exceed 75 percent of the appraised value of a property, according to mortgage experts. The assessed value of the Great Falls home, which is set by Fairfax County, has fallen since Santorum bought it in 2007.
Property values have fallen throughout the county—even in the wealthiest communities of McLean and Great Falls—because of the recession.
It’s a fascinating story to follow the real estate transactions of this presidential aspirant who is also a neighbor. All the transactions are found in the Fairfax County land records. We’re going to walk you through Santorum’s life as a Fairfax County homeowner.
In September 1995, as a newly elected senator from Pennsylvania, Santorum and his wife bought a house in Herndon, VA, for $292,000, according to the Fairfax County deed.
As a Congressman, Santorum had lived in Mt. Lebanon, but sold that house in 1995, the same year he bought the one in Herndon. He then bought a house in Penn Hills in 1997.
In November 1998, the couple took out a mortgage of $244,000 on the Herndon home, according to the mortgage filed in the Fairfax County courthouse.
In November 2001, the Santorums sold the home for $429,900. They moved to Leesburg in Loudoun County.
Usually mortgages are paid off when homes are sold. Not in this case. The Santorums paid off the mortgage in October 2003, according to county documents.
In 2006, Santorum ran for a third term in the U.S. Senate and lost, due in part to the controversy over whether he actually lived in Pennsylvania, and after he enrolled five of his children in an online cyber school paid for by the Penn Hills (PA) School District, despite the fact that all the children lived in Virginia.
The family returned to Fairfax County in August 2007. They bought a house with five acres in Great Falls with a high-ranking official of a major development and mortgage company.
Santorum formed the Creamcup Trust with James Sack, the secretary and general counsel of NVR, a major single-family developer and mortgage finance company in northern Virginia and 15 states. Creamcup Trust bought a house and five acres of land on Creamcup Lane in Great Falls for $2 milllion in August 2007, according to the deed.
When most people think about America’s debt problem, they think of the debt of the federal government. But that is only part of the story. The sad truth is that debt slavery has become a way of life for tens of millions of American families. Over the past several decades, most Americans have willingly allowed themselves to become enslaved to debt. These days, most of us are busy either going into even more debt or paying off the debt that we have accumulated in the past. When your finances are dominated by debt, it makes it really hard to ever get ahead. Incredibly, 43 percent of all American families spend more than they earn each year. Even while median household income continues to decline (now less than $50,000 a year), median household debt continues to go up. According to the Federal Reserve, median household debt in America has risen to $75,600. Many Americans spend decades caught in the trap of debt slavery. Large numbers of them never even escape at all and die in debt. It can be a lot of fun to spend lots of money and go into lots of debt, but it can be absolutely soul crushing to toil and labor for years paying off those debts while making others wealthy in the process. Hopefully this article will inspire many people to try to escape the chains of debt slavery once and for all.
Because the truth is that the American people need a wake up call. Consumer borrowing rose by another $19.3 billion in December. Right now it is sitting at a grand total of $2.5 trillion according to the Federal Reserve.
Overall, consumer debt in America has increased by a whopping 1700% since 1971.
We always criticize the federal government for going into so much debt, but we rarely criticize ourselves for our own addiction to debt.
Debt slavery is destroying millions of lives all across this country, and it is imperative that we educate the American people about the dangers of all this debt.
The following are 30 facts about debt in America that will absolutely blow your mind….
Credit Card Debt
#1 Today, 46% of all Americans carry a credit card balance from month to month.
#2 Overall, Americans are carrying a grand total of $798 billion in credit card debt.
#3 If you were alive when Jesus was born and you spent a million dollars every single day since then, you still would not have spent $798 billion by now.
#4 Right now, there are more than 600 million active credit cards in the United States.
#5 For households that have credit card debt, the average amount of credit card debt is an astounding $15,799.
#6 If you can believe it, one out of every seven Americans has at least 10 credit cards.
#7 The average interest rate on a credit card that is carrying a balance is now up to 13.10 percent.
#8 According to the credit card calculator on the Federal Reserve website, if you have a $10,000 credit card balance and you are being charged a rate of 13.10 percent and you only make the minimum payment each time, it will take you 27 years to pay it off and you will end up paying back a total of $21,271.
#9 There is one credit card company out there, First Premier, that charges interest rates of up to 49.9 percent. Amazingly, First Premier has 2.6 million customers.
Auto Loan Debt
#10 The length of auto loans in America just keeps getting longer and longer. If you can believe it, 45 percent of all new car loans being made today are for more than 6 years.
#11 Approximately 70 percent of all car purchases in the United States involve an auto loan.
#12 A subprime auto loan bubble is steadily building. Today, 45 percent of all auto loans are made to subprime borrowers. At some point that is going to be a massive problem.
#13 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#14 Mortgage debt as a percentage of GDP has more than tripled since 1955.
#15 According to the Mortgage Bankers Association, approximately 8 million Americans are at least one month behind on their mortgage payments.
#16 Historically, the percentage of residential mortgages in foreclosure in the United States has tended to hover between 1 and 1.5 percent. Today, it is up around 4.5 percent.
#17 According to Dylan Ratigan, 46 percent of all mortgaged properties in Florida are underwater, 50 percent of all mortgaged properties in Arizona are underwater and 63 percent of all mortgaged properties in Nevada are underwater.
#18 Overall, nearly 29 percent of all homes with a mortgage in the United States are underwater.
#19 If you can believe it, the mortgage lenders now have more equity in U.S. homes than the American people do.
(CNSNews.com) – In a speech delivered at Osawatomie High School in Osawatomie, Kansas, on Tuesday, President Barack Obama argued that while a limited government that preserves free markets “speaks to our rugged individualism” as Americans, such a system “doesn’t work” and “has never worked” and that Americans must look to a more activist government that taxes more, spends more and regulates more if they want to preserve the middle class.
“‘[T]here is a certain crowd in Washington who, for the last few decades, have said, let’s respond to this economic challenge with the same old tune. ‘The market will take care of everything,’ they tell us,” said Obama. “If we just cut more regulations and cut more taxes–especially for the wealthy–our economy will grow stronger.
“Sure, they say, there will be winners and losers,” Obama continued. “But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty.
“Now, it’s a simple theory,” said Obama. “And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. But here’s the problem: It doesn’t work. It has never worked.
“It didn’t work when it was tried in the decade before the Great Depression,” said Obama. “It’s not what led to the incredible postwar booms of the ‘50s and ‘60s. And it didn’t work when we tried it during the last decade. I mean, understand, it’s not as if we haven’t tried this theory.
“Remember in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history,” said Obama. “And what did it get us? The slowest job growth in half a century. Massive deficits that have made it much harder to pay for the investments that built this country and provided the basic security that helped millions of Americans reach and stay in the middle class==things like education and infrastructure, science and technology, Medicare and Social Security.
“Remember that in those same years, thanks to some of the same folks who are now running Congress, we had weak regulation, we had little oversight, and what did it get us?” said Obama. “Insurance companies that jacked up people’s premiums with impunity and denied care to patients who were sick, mortgage lenders that tricked families into buying homes they couldn’t afford, a financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy.
“We simply cannot return to this brand of ‘you’re on your own’ economics if we’re serious about rebuilding the middle class in this country,” said Obama.
To read the full speech as transcribed by the White House click here.
[CIM Comment: I won't waste my time ranting about this Socialism loving scum bag, as the people pulling this puppets stings need to be cast into the light as well. With the well announced, repeatedly, plan they have for taking this country down, is this not the right time to make a challenge with the only Champion of the Constitution? We have a choice, follow the staus quo of Obama or the "Liberal Right" such as Romney and Gingrich and become another fallen empire in the history books, or turn this countries direction and fate around by supporting the Constitution and supporting Ron Paul. Your choice, serfdom and servitude or individual freedom and peace. Which will serve the next generation a better life? Time to think and decide.]
Please visit Ron Paul’s official campaign site and donate today!