Elizabeth Warren Blasts FHFA's Mel Watt: "You Haven't Helped a Single Family"
Elizabeth Warren tore into FHFA director Mel Watt over his failure to develop a program for Fannie and Freddie to provide principal modifications to underwater borrowers at risk of foreclosure. She also got in a dig for his failure to stop the agencies from pursuing deficiency judgments. That means going after former homeowners when the sale of the house they lost didn’t recoup enough to cover the mortgage balance. In the stone ages, when banks kept the mortgage loans they made, they never pursued deficiency judgements. They knew there was no point in trying to get blood from a turnip. Not surprisingly, the sadistic Fannie/Freddie policy has also proven to be spectacularly unproductive in financial terms. An FHFA inspector general study found that recoveries were less than 1/4 of 1% of the amount sought. Moreover, since those mortgage balances were often inflated by junk fees and other dubious costs, and mortgage servicers have done a poor job of maintain properties (they are too often stripped of copper and appliances, or get mold), any deficiency might be significantly or entirely the servicer’s fault. ....................(more)
The complete piece is at: http://truth-out.org/news/item/27771-elizabeth-warren-blasts-fhfa-s-mel-watt-you-haven-t-helped-a-single-family
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Thank you Ms. Warren hold the next congress's feet to the fire, because we know in the future hearings we are going to hear on the mortgage holder (home owner) should have known better.
This hemming and hawing we just witnessed is disgraceful.
There is a system in place to correct what has been going on since 2001 and before, and when the crash occurred in 2006-2008 the outright greed, derivatives, and the issue of who owns the paper on the mortgage actives kicked in based on lies, shows that the greed is still in place, and not one firm on wall street has been indicted, not one, all we have is fines, wahoo.
I remember Matt Tiabbi's recent article in Rolling Stone where one Elizabeth Payne (whistleblower) showed that the fix was and has been in for quite some time and all we have been getting is empty words from suits
...but they can't be shamed. They have none. You're stating of the obvious here, won't amount to a hill of beans. The rot is systemic and complete to the core.
When we reached this point with the oppression of the monarchy in the 1770s we concluded that a new form of government was needed. It's needed again against the oligarchy.
- We have no other choice. You don't put new wine into old skins.....
K&R
There is no such thing as 'rights' - as the reference can be altered at will. The fourth amendment is an attempt to protect against state power abuse, that is clear. But it avoids the real issue, and that is: Why would the state have an interest to search and seize to begin with? How do you remove the mechanisms that generate such behavior? We need to focus on the real cause.
We have to understand that government as we know it today, is not in place for the well being of the public, but rather for the perpetuation of their establishment and their power. Just like every other institution within a monetary system. Government is a monetary invention for the sake of economic and social control and its methods are based upon self-preservation, first and foremost.
All a government can really do is to create laws to compensate for an inherent lack of integrity within the social order. In society today the public is essentially kept distracted and uninformed. This is the way that governments maintain control. If you review history, power is maintained through ignorance.
~Peter Joseph
