Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
Honest Help
Did Clinton cause the banking crisis?
A trio of regulatory changes and missteps on the former president's watch let the banks run wild and encouraged the housing bubble. But he had help, of course.

By David Weidner, MarketWatch
On Wall Street and Main Street they call William Jefferson Clinton the "Comeback Kid," but it's not because of some Election Day surprise.
It's because almost everything he did regarding financial-services regulation has come back to haunt us.
If it wasn't apparent before, the former president's handiwork became clear when President Barack Obama announced his plans for sweeping financial-services reforms. Obama's efforts to bring fair dealing to the mortgage markets, rules to the derivatives marketplace and restraint to big financial companies underscore the missteps of Clinton's second term.
We had weakly regulated markets when Clinton took office, but by the time he left, they were an invitation to lawless dealing. For the ease of it, Willie Sutton would have traded his gun and mask for a briefcase and necktie.
Clinton created a fertile environment for home-lending charlatans and hiding places for Wall Street swindlers, and upset a regulatory structure that had served the financial marketplace so well for more than six decades.
Clinton bashing -- like Bush bashing -- is often a cop-out, but Clinton made critical mistakes when it came to dealing with the financial industry. Three poor decisions stand out.
The first, in 1997, was a change to the amount of taxes a homeowner had to pay on the sale of his or her home, up to $500,000. That change effectively made buying and selling a home for profit the most compelling investment in America by tax standards. It shifted our housing market from one of supply and demand to one of rampant speculation.
The second mistake was one of inaction. In 1998, Long-Term Capital Management's use of derivatives and leverage required a massive $3.6 billion hedge fund bailout organized by the New York Federal Reserve Bank. After the fiasco rocked the markets, the administration was on the spot. Would it push for tighter regulation of this new form of investment vehicle? Would it rein in the derivatives markets?
Alan Greenspan and Arthur Levitt, then the chairmen of the Federal Reserve and the Securities and Exchange Commission, respectively, and Clinton's Treasury secretary, Robert Rubin, all counseled against it to varying degrees. No action was taken.

                            The Repeal of Glass-Steagall
But perhaps the biggest mistake of the Clinton years regarding Wall Street and the one that rings loudest today was the 1999 repeal of the Glass-Steagall Act of 1933, which effectively had split investment banking and brokerages from commercial banks.
In the years leading up to the repeal, Wall Street had been grumbling that the law had become an anachronism. Financial technology was sophisticated. We were so much smarter than they were back in 1929 that there was no way a financial-services conglomerate could pose a threat to the system, Wall Street experts said. Besides, they argued, it was a good idea for banks to handle customers' investments and savings as a hedge in the bad times.
The Clinton administration effectively had its hand forced by the merger of Citicorp and Travelers Group in 1998. The creation of Citigroup required a lot of chutzpah by its CEO, Sandy Weill, because it was effectively prohibited under Glass-Steagall.
The biggest argument critics have against bringing back Glass-Steagall is that it would be too chaotic. Whole companies would have to be cleaved. Relationships would have to be unwound.
Well, back in 1933, the law effectively split J.P. Morgan, the bank, from what would become Morgan Stanley, the brokerage. Both seem to have come through the disruption fairly well.
Greenspan, the virtually universally loved Fed chairman, gave everyone bad advice in regard to interest rates, home ownership and derivatives. Under Levitt at the SEC, Wall Street accounting reached its nadir, only to reveal itself with the WorldCom and Enron scandals after he left office.

Ultimately, however, the big bang -- the wall torn down between brokers and banks -- happened on Clinton's watch. It's largely the problem that's being tackled in the current administration's 85-page white paper on reform.

Quote 0 0

That question was put to rest long ago.  Brokers, realtors and appraisers and all the other parasites who have fabricated jobs out of thin air.

Quote 0 0
O -

It was BUSH...

Quote 0 0

ROOT CAUSE - Mortgage fraud.  Bush was not a loan originator.

Quote 0 0
Honest Help

Stephen wrote:

That question was put to rest long ago.  Brokers, realtors and appraisers and all the other parasites who have fabricated jobs out of thin air.

Stephen you are correct. It was indeed corrupt bankers who victimized the elderly, minorities, young couples looking for the American dream then lied to potential borrowers and helped & encouraged false data on loans. (Let's not forget many irresponsible buyers themselves were to blame as well.)

     Also give credit to the dishonest appraisers, rating firms, lying realtors, etc. Then came the overly aggressive foreign banks and greedy hedge fund investors hoping to make 16% and up. Congress can take a bow as well.. Both Democrats and Republicans failed to have the foresight and perception to see it coming. The smartest minds in the world from Alan Greenspan on down were fooled; almost everybody was. There were many causes but the opportunity for misdeeds came on Clinton's watch when he repealed the Glass-Steagall Act.


That opened the door after 66 years.     


Excerpt from Mortgage Blues site:

Clinton repeal of Glass-Steagall faulty as seen today


“. . .This issue now goes far beyond the mortgage blues of some lenders. There is no way that crazy wild-eyed mortgage brokers with lax standards could cause worldwide problems like this. President Bill Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal is it allowed commercial and investment banks to consolidate. Economists have criticized the action.

Of course economists criticized the way in which the Bush administration manufactured money by allowing anybody and everybody the opportunity to buy or refinance homes. Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.”

Quote 0 0
O -

Stephen wrote:

ROOT CAUSE - Mortgage fraud.  Bush was not a loan originator.

You are right, it was the Predators, but Bush did nothing to stop them. He was ''good friends'' with lots of them. Look at Ameriquest and the Texas Rangers. Bush had the King of Predatory Lending Roland Arnall in his pocket.

Bush spent more $$MONEY$$ than ALL 42 presidents put together. How is he not to blame?

I'm not saying it was all caused by Bush.

Quote 0 0
Honest Help

"The seed was planted with President Bill Clinton’s misguided eagerness to increase home ownership."

Smoking Gun of the Housing Crisis

At yesterday’s Bloggers Briefing at Heritage, Rep. Darrell Issa (R-CA), ranking member on the House Oversight and Government Reform Committee, touted a 26-page report that holds the government accountable for the housing crisis through its unsustainable drive to increase homeownership.

The report sheds light on the unnecessary interference of government in the housing market. It singles out Fannie Mae and Freddie Mac to show how the U.S. entered an economic downturn that rippled around the world. (Heritage has long argued for reforming Fannie and Freddie by breaking up their stronghold on the mortgage market.)

According to Issa, the potential for a crisis in the housing market is not a new phenomenon. The seed was planted with President Bill Clinton’s misguided eagerness to increase home ownership. Issa referenced a Clinton administration document from 1995, “The National Homeownership Strategy: Partners in the American Dream.”

The document states, “The Clinton administration should support efforts to increase local lender awareness and use of flexible underwriting criteria established by secondary market investors such as Fannie Mae and Freddie Mac. Many households may qualify (for mortgage lending) if local lenders are encouraged to more flexibly interpret secondary market requirements.”

Issa called this the smoking gun. He said the situation we now find ourselves in came from the humble beginnings that everyone should have the opportunity to own a home. The Bush administration, too, must shoulder some of the blame, Issa said. Bush continued these practices through its own programs.

“The housing bubble that burst in 2007 and led to a financial crisis can be traced back to the federal government intervention in the U.S. housing market intended to help provide home ownership opportunities for more Americans,” declares Issa’s report.

Quote 0 0
   Repeal of Glass-Steagle had a small part in it, but the real cause was the
conversion to a fiat money system in 1968, in order to finance the Vietnam
War. Also, the issuance of currency was turned over 100% to the privately
owned Federal ?Reserve member banks. (Read the Credit River decision of 1968 whereby Jerome Daly proved that member banks were being allowed to
monetize the perceived value of real estate without having the cash on deposit in the bank.) These loans created out of nothing could then be sold
to third parties for real cash. This eventually led to securitization, which is
really a Ponzi scheme, which could only last as long as new buyers could
be induced into buying these phony loans.
    Also, when FDR's tripartite currency system of non interest bearing US Notes and Silver Certificates as well as interest bearing Fed Notes ended in 1968,only the principal of the loans was created, but not the interest. This could only lead to a deflationary bust because the loans could never be paid back along with the interest.This issue was widely debated back in the 1930's
as being a cause of the Deflation back then. It's the same today, until the
debts are liquidated, the economy can not recover.
Quote 0 0
Those who contributed to the conditions conducive to mortgage fraud are definitely complicit, BUT those who conned millions into bogus mortgages committed fraud, a felony, and they ARE the ROOT cause.

Too many confuse amplifiers with root cause.  Contributions to the malady can be rated by degree of contribution, but the sleazy mortgage/RE industry lit the match and burned the forest down. 

Don't blame the trees for the forest fire.
Quote 0 0
4 Justice Now
Stephen is right once again!


Too many confuse amplifiers with root cause.  Contributions to the malady can be rated by degree of contribution, but the sleazy mortgage/RE industry lit the match and burned the forest down. 

Don't blame the trees for the forest fire.

There are relatively few people out there who actually took any part in the planning and/or execution of this historic fraud, and thankfully, many here do know their family names.

The vast majority of those who did participate, only did so after they discovered that they were able to take advantage of the lawless environment, which was created by the extreme few who called all the shots.

Those which were obviously the least responsible for any part of this most sophisticated, historic, fraud were quite generously and intentionally given nearly all of the credit, which was only possible because those calling the shots, also happen to control nearly all the media in this nation. A very clear and concise attempt to lay blame on those who would be the least able to defend themselves in court, as well as the court of public opinion, The late great American Home Owner(s).

There's absolutely no doubt at all, we must all assure that credit is given to those who truly deserve it most. 


4 Justice Now & Always
Quote 0 0
The economic meltdown was a top down fraud. It's impossible to say anyone got caught off guard, there has been a massive effort to cover up the massive fraud in all states from the beginning.

Allen Greenspan wrote the book about the Bank of England and the Fed which it is patterned off of as being a Ponzi scheme designed to transfer a massive amount of wealth from the middle and upper middle class to the lower class and trap everyone into socialism/Communism/Feudalism. The whole point is to create unsustainable economic growth and artificial government supported wealth creation and redistribution and then pull the rug out from under the scheme.

The repeal of Glass Stegal is indeed the stimulus for the current crises but the root cause is fractional reserve lending especially the current system we have where private banking insiders are allowed to use our money as theirs and have a huge incentive to create boom bust cycles and create as many loans that cannot be repaid as possible.

Few in upper levels of the government were tricked, duped or caught unaware. The Clinton's profited greatly both personally and politically from the repeal of Glass Stegal and Bushes 2004 election was illegally funded though 53 shell corporations set up to fund the election outside campaign donation limits by Roland Arnall. Ameriquest put both their top lobbyists and Phil Gramm in charge of John McCain campaign himself one of the original Keating five Senators indicted for S+L fraud. So Ameriquest the largest sub-prime lender supported two so-called Republican Presidential candidates in a row. It's impossible for Bush not to have known he received 12 million in donations from a single person outside of donation laws on top of giving him 5 million for the 2004 inaugural ball. Roland Arnalls company of which he was sole owner was found guilty by 49 states A.G.s of 750,000 cases of fraud and Bush had his nomination rigged to get him out of the country to evade investigation, prosecution, and restitution by simply  having the Democrat votes against his nomination just plain thrown out in violation of over two hundred years of Senate voting.

The realtor's appraisers etc, as criminal and responsible as they may be are just the street thugs in a nationwide mortgage Mafia. Did the realtor's light the fire sure but the Government and Bankers spread the fuel and profited greatly from the fire much, much more so than the realtor's.

The Whole bailout Unconstitutionally transferred trillions in U.S. citizens assets under the authority of the Secretary treasury and is having the taxpayers pay off trillions in bad debts created through fraud, Trillions not billions to cover up the largest financial scam in the history of the earth.

There are no Republicans there are no Democrats just a bunch of crooks telling a different set of lies to hook a different group of suckers.

As long as we have fractional reserve money there will always be a built in incentive to bankrupt the economy to get property and businesses for cheap and to create leveraged wealth using the peoples wealth.

Makes no difference to the banks whether a politician convinces the public that everyone with their hair parted on the left side is a terrorist or a school lunch program to feed Johnny's homeless hamster will return much more to society than it costs, any scam or lie a politician can sell in order to boost public spending is more profit for them. War and welfare are cash cows for fractional reserve lenders and so are recessions and depressions.

NO matter who knew what when there is no excuse whatsoever for the government using the bailout to cover up the fraud at the expense of economically nuking the taxpayers and our countries economy, it's just flat out the installation of a banking dictatorship run by the same crooks that looted our country in the first place.

Quote 0 0
   The "blame game" reminds me of the New Testament story of the encounter of Jesus with Mary Magdalene. The pharacees and sadducees
wanted to make Him look bad because he was making Them look bad, so
they arrested a known "prostitute" and dragged her before Jesus to see
what he would do. Instead of condemning her, he told her persecuters,
"Let he who is without sin, be the first to cast a stone." One by one, they
all slinked off, realizing they were all guilty of sin to some degree. When
they were all gone, he turned to Her and told her to go and sin no more!
   The "prostitutes" of the real estate business are guilty but it was the
hippocrits who allowed a system to develop whereby they were encouraged to break the law to survive , who were the real guilty parties.
    Those Congressman and Presidents who allowed an unconstitutional
monetary system to be foisted on the American people and who turned
over the issuance of currency to a private entity are the ones to blame
for all the financial "prostitution" we see around us.This money created out
of nothing, with no way to ever pay the interest charge, has reduced the
American population to serfdom and it's time the "serfs" were freed once and
for all of these "fraudulant debts", so the Nation can heal itself and return
to a lawful monetary system like the one FDR set up in 1934. Then, interest
on debts can eventually be repaid in a fair way to legitimate lenders and savers by qualified borrowers. Government must issue "interest free currency"
so that debts can be paid back in lawful money as specified in the US Constitution. End the Fraud Now! End the Usury Now! Restore the Constitution!
Quote 0 0
The whole point of the Constitution is freedom from feudalism, everyone is supposed to have a fair and equal chance to gain property and have it protected by the rule of law.

The cornerstone of life, liberty and the pursuit of property as the original saying went is sound and stable money. If the people have no stability of money then they have no power. This scam and the greater scam of trapping our nation into debt slavery is due to the monopolistic power granted (many say Illegally) to the private banks to rule our economy and not only use our money as theirs but to plant it as a magic money tree for themselves that keeps growing at the expense of sucking the life out of us.
Quote 0 0
4 Justice Now
Great posts! Thank-You!

How can we unite and provide some manner of public notice regarding our common intent/goal to restore the constitutional rights, which, have thus far been so obviously denied to us all?


Quote 0 0
The Equitable One

I was at a local meeting a week or so ago, for pro se litiigants, where a woman in attendance gave a brief presentation about a new "continental congress" being formed.

It is an interesting idea.

Her hope, their hope, is to bring many of the fringe patriot groups together, to speak with one voice, find representatives from all states, and convene the congress in the midwest sometime in the fall.

Beyond hearing her brief presentation and what I've said above I have no other knowledge. She passed out some fliers, which admittedly I haven't read. There is a web page at the following address and I would assume more information can be found there:

Quote 0 0
4 Justice Now
The Equitable One:
Thank-you very much for the information. Sounds as though it could be promising. I'll take a look at what they have to say.

Quote 0 0
Write a reply...