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.
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Financial wizard

You Ain’t Seen Nothing, Yet


 

Steve Pearlstein provides a view into the new reality now rising across our nation’s collective consciousness: that we’re in for a rough ride in the quarters ahead. His column doesn’t provide any new insight — for readers of HW, at least, who have known about the risks portended by the mortgage crisis for the better part of 2007 — but it does provide some concise analysis:

… let me assure you, you ain’t seen nothing, yet.

What’s important to understand is that, contrary to what you heard from President Bush yesterday, this isn’t just a mortgage or housing crisis. The financial giants that originated, packaged, rated and insured all those subprime mortgages were the same ones, run by the same executives, with the same fee incentives, using the same financial technologies and risk-management systems, who originated, packaged, rated and insured home-equity loans, commercial real estate loans, credit card loans and loans to finance corporate buyouts.

It is highly unlikely that these organizations did a significantly better job with those other lines of business than they did with mortgages. But the extent of those misjudgments will be revealed only once the economy has slowed, as it surely will.

Of course, the problem goes far deeper than reaching across lines of business; it extends into just how far out the securitization process has gone, even within one line of business (like mortgages). I’m talking about CDOs, CDO-squared deals, and the like here — there was so much money generated off of one dollar of secured cash flow that it literally pumped up balance sheets for anyone issuing and investing in the secondary markets to historic highs.

Now that the great unwinding is here, the losses will be every bit as real as the income generated by the wind up — and that’s where our focus should be. Who takes the losses?

I bring this up because, contrary to U.S. Treasury Secretary Henry Paulson’s assertions, the mortgage bailout plan now being considered most certainly involves taxpayer liability (say it with me: municipal bonds).

Asking taxpayers to shoulder the cost of a bad bets made by investors and borrowers alike doesn’t just set a bad precendent; in some ways, it undermines the soul of the American economy itself. A free economy means just that — individuals are free to make choices and own the responsibility for their own choices, whether that means becoming astronomically rich or finding yourself in the poorhouse.

That’s the very heart of the pursuit of life, liberty and happiness — warts and all.

Asking taxpayers to bail out troubled borrowers isn’t the same thing as coming to the aid of our fellow man when a natural disaster strikes — when a hurricane hits, for example, the American ethic is that we help our brothers in need. When a tsumami decimates another country, we take the lead in providing the help that is so desperately needed.

But when a free market leads those on the buy-side and those on the sell-side to play fast and loose with risk — or to decide that they have no responsibility for understanding the risks associated with their own voluntary decisions — we MUST allow those individuals to shoulder the cost of their choices.

Any discussion of how to save our financial markets and prevent recession frames the issues completely wrong. A recession may be exactly what’s needed; and in these instances, the job of our fiscal and monetary policy should be to ensure that a recession doesn’t become a Depression, and to help prepare the economy for its next upward swing.

Getting there means having tolerance for the idea that people are, in fact, responsible for the financial choices they make. Especially when it comes to property rights — nothing is more American than that.

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I agree with this article on loans that were made voluntarily with the understanding of the borrower.

As far as ms fraud that is outright theft and a radical violation of property rights as the government has a responsibility to protect our property rights.

The only lawful and responsible thing to do is to shut the criminal lenders down and reestablish a sound lending system. The if we try to cure economic cancer with band aids then we may find we have avoided dealing with the cancer until it's terminal.

The problem is the lenders are some of the biggest such as Bank of America, Citi, JP Morgan etc. but learning to live with them is like learning with the Mafia sooner of later it must be dealt with.

As far as I can tell the only realistic solution is some sort of parallel economy based on coins,  sophisticated barter or anything other than the current fractional reserve system.

The Dollar is getting beat up all over the world anyways so it is not just a case of the domestic economy it's a case of international trade and security as we will fall to 3rd world status with an unstable monetary system.

Bailing out the S+L's and merging the FSLIC with the essentially bogus FDIC to avoid political fallout and investigations leading to prosecutions was the worst thing we could have done. Repealing Glass-Steagal on what is essentially a government private hybrid monopoly created a situation where the dot com collapse resulted in artificially boosting the economy again to avoid the political fallout and legal liability.

We are still paying for not resolving the S+L crises and now the government wants to do the same thing again.

It's not really possible to bail out a debt based economy anyways you can only add more debt it may avoid a free fall into depression, a crash of the dollar, or hyperinflation but in the end it's just cushioning the fall at best and quite likely because of the huge amount of uncollaterized and unbacked money a situation that could be much much worse that the great depression which would then be renamed the economic speed bump of the 1930's.

If our homes were stolen though ms fraud or forged, switched or missing paperwork then the responsible parties must replace or homes otherwise we do not live in a country which protects our property rights.

I just watched the police chase a bank robber and the car crashed head on and killed people not sure of the details if it's so important to stop a bank robber why is it not even more important to stop a bank from robbing.

Robbing though a servicer as a proxy is still property theft regardless whether it's complicated or not.

I would be really irresponsible to cover this up and make future generations pay for the failure of 300 million people to stand up to a handful of financial services criminals.




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~beenawhile

greg collins wrote:


As far as ms fraud that is outright theft and a radical violation of property rights as the government has a responsibility to protect our property rights.

The only lawful and responsible thing to do is to shut the criminal lenders down and reestablish a sound lending system.

RIGHT ON GREG!

I would be really irresponsible to cover this up and make future generations pay for the failure of 300 million people to stand up to a handful of financial services criminals. 

But that's what they do Greg, (Politicians, Pres. Candidates, PRES.)  they turn a blind eye to this, without realizing the impact, of the entire AMERICAN ECONOMY, and CIVILIZATION. 
 
They allow all theft to continue to REAP THE REWARDS from only a couple million employees employed by these servicers....... THAT's what they do GREG!..... THE PRESIDENTS, AND PRESIDENTIAL CANDIDATES, TURN A BLIND EYE, TO REAP THE REWARDS OF Financial donations, from these crooks.
 
What has BUSH done? He is buddies with the Crooks! I cannot fathom how a TRUE AMERICAN, elected as President, could possibly EVER begin to think, that Supporting the SERVICERs and allowing them to continue the THEFT OF HOMES & ALL THE FRAUD WITHIN, against AMERICA, would turn such a BLIND EYE. OR.......... be so financially motivated to PERSONAL GAIN, RATHER THAN UPHOLDING HIS DUTY, TO PROTECT THE AMERICAN PEOPLE FROM TERRORISTS WHO ARE CREATING HOMELESSNESS IN AMERICA.
 
THE SUFFERING,
 
1. The days, months, years we have spent on the phone, with the SERVICERS, trying to get our money back, trying to keep our homes.
 
2. Same as # 1 with letter writing to the SERVICERS.
 
3. Tears EVERYONE has cried out of DAILY FEAR..... They were going to lose their homes............ THE AMERICAN FREAKIN DREAM!
 
4. The tears out of the irritation, anger, & worry of how they are going to keep electricity on, FOOD on the table.
 
5. Oops there is no more money, we have to file bankruptcy, our "AVAILABLE" credit lives are ruined! FOR YEARS AND YEARS! (less money for the banks to make)
 
6. OOPS! THEY STOLE OUR HOUSE THROUGH THE BANKRUPTCY COURTS, CLAIMING WE WERE IN DEFAULT, AND WE WEREN'T.
 
7. NOW WE SUFFER EVEN GREATER, THERE ARE TWO ADULTS, AND TWO CHILDREN, WHO ARE NOW HOMELESS, AND HAVE NO WHERE TO GO.
 
8. THESE CHILDREN, OUR FUTURE GENERATION, SURROUNDED BY FILTH, DIRT, DISEASE, CRIME, & DESPAIR, OF A COMMUNITY SHELTER (if they are lucky enough to be sheltered)
 
9. Babies sleeping on the street with their Mothers and fathers, in the back seat of cars, or cardboard boxes, under bridges.
 
10. Children not in school, learning, and living childhood lives like they should be.
 
11. Children not having pride in "AMERICA" because they have seen what "AMERICA" has done to their families.
 
12. The insanity, that develops, from the stress, and worries.
 
13. The crimes committed so a Man or woman may feed her hungry children.
 
SO YOU JUST GO RIGHT ON AHEAD, MR. PRESIDENT, OR YOU PRESIDENTIAL CANDIDATES, AND BE SO VAIN, AS TO PROTECT YOUR OWN INTERESTS, ~VS~ THOSE OF THE AMERICANS IN NEED OF RELIEF FROM THESE SERVICERS....   YOU GO RIGHT ON AHEAD, AND "LET THEM DONATE" TO YOUR CANDIDACY CAMPAIGN.
 
 
So they may think the economy is bad because of the "ARMS" loans.
Yeah that was one sure stupidly fired call, of ALAN GREENSPAN to make when he told AMERICAN's  "RE-FI NOW GET AN ARM LOAN, OR A CREATIVE LOAN" HOW MUCH DID THE SERVICERS PAY ALAN FOR MAKING THAT STUPID STATEMENT?
 
BUT WHO CARES ABOUT ARMS, Hey! if a home owner got into a bad deal, cause they were all gas happy bout a ARM, it's their fault they should have known better. FOR GOD'S SAKES, EVEN I KNEW BETTER, AND I KNEW NOTHING ABOUT MORTGAGES!!!!!!!!!
 
AND ON TOP OF THIS ALL I'M HAVING SEVERE "VICTIMOLOGY" ISSUES,
WE WERE HERE FIRST!!!! WE WERE HERE TELLING YOU POLITICIANS, WE NEEDED HELP, LONG, LONG, BEFORE THE PEOPLE WITH THE "ARMS"
LOANS CRIED FOR YOUR MERCY.
We all saw this coming, how couldn't the President see it too?

 

 







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~beenawhile
Right on GREG!

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