Pelosi calls for federal inquiry on mortgage lenders

[maddezmom]

Source: WaPo

By Brady Dennis and Ariana Eunjung Cha
Wednesday, October 6, 2010

House Speaker Nancy Pelosi called on the Justice Department on Tuesday to investigate the nation's largest mortgage lenders, and Maryland joined a growing list of states seeking to halt foreclosures while they probe claims of fraudulent filings.

In a letter to U.S. Attorney General Eric H. Holder Jr., Pelosi (Calif.) and dozens of other Democrats accused the nation's biggest banks of making it difficult for struggling borrowers to get foreclosure relief while the firms routinely evicted them with flawed court papers.

The group said that recent reports of lenders initiating hundreds of thousands of questionable foreclosures "amplify our concerns that systemic problems exist."

The request from Democrats puts pressure on the Obama administration to get more involved in a matter that it so far has said little about publicly. The move is also likely to stoke cries for a broad moratorium on foreclosures across the country.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/05/AR2010100506639.html

[Waiting For Everyman]

1. The foreclosures may as well stop because no title insurance is going to happen anyway pretty soon.

(as one title company has already stopped writing policies on foreclosed properties, but others too will not be getting title insurance before long). Not until the banks fix their mess, by coming up with the original notes (which they can't, that's why they're forging documents). The banks will have to recognize the black-letter law that they have been ignoring so far, and getting away with it. Now the cat is out of the bag, and can't be put back in. Homeowners have the proof bigtime. And guess what, it's homeowners and their advocates who dug it up. Mostly here...

www.4closurefraud.org

and here...

http://livinglies.wordpress.com

But it gets better. Even the small percentage of notes that were done "right" weren't transferred to the mortgage pools, and now it's too late because doing so now would violate the REMIC's tax status. The banks are screwed if they try to (fraudulently) fix it, and screwed if they don't.

:popcorn:

Now would be a really good time for the banks to start doing the right thing (which was all along in their own best interest but they're too stupid and arrogant to even do the right thing then).

I'm glad Pelosi is getting active on this, and very glad my governor is too. (I'm sure Rep. Cummings helped 'splain the reality of this to him.)

Btw, all the big banks did the same practices, it's industry standard. And non-judicial states need this halted even more than the judicial ones because NJ states don't even get reviewed by a court (MD being one). The banks halted on their own in the judicial states because they didn't want judges noticing catching them red-handed at fraud... and lots probably dismissing their foreclosures with prejudice, and probably criminal charges for them too. Yeah, a good time to back off. YA THINK?????

Now, we will probably (eventually) begin to get some prosecutions on the mortgage fiasco. I sure hope the Dems don't lose Congress now and enable the RW to avoid public hearings on this. That would be typical. Hopefully, it won't happen that way this time.

Note: Don't miss seeing this article, "The Shit Hit the Fan Letter to the Banks from Congress"...

http://4closurefraud.org/2010/10/05/foreclosure-fraud-the-shit-hit-the-fan-letter-to-the-banks-from-congress/

Add to that, a federal court in CA (Marques v. Wells Fargo) has determined that homeowners are 3rd party beneficiaries to the HAMP contract, which means they can sue for a mod...

http://mandelman.ml-implode.com/2010/08/federal-court-borrower-is-intended-3rd-party-beneficiary-of-hamp-contract-%E2%80%93-homeowners-can-sue-for-breach/

Copy of the order...

http://scr.bi/cVExYd