"This is a problem for the banks & servicers to fix. They can fix it as fast as they feel like it."

[Amerigo Vespucci]

Obama Team On Furor Over Foreclosures: 'Problem For The Banks and Servicers To Fix'

http://www.huffingtonpost.com/2010/10/20/obama-foreclosures-donovan-whose-problem_n_770591.html

U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that the Obama administration will attempt to protect homeowners and police the kind of paperwork fraud that led the nation's largest banks to temporarily halt foreclosures this month, but added that the administration had yet to find anything fundamentally flawed in how large banks securitized home loans or how they foreclosed on them.

***

Treasury has no procedures in place for sanctioning servicers under the program. To date, not a single fine has been levied.

When pressed how much longer the government's review would take, Donovan estimated another nine weeks, placing its completion the week before Christmas. Barr had a less committal answer.

"This is not a problem for Secretary Donovan to fix," Barr said. "This is a problem for the banks and servicers to fix. They can fix it as fast as they feel like it."

[Sanity Claws]

1. "Fix it?" How do you fix perjury? and securities fraud?

That's what went on.

The mortgages were securitized and the banks represented that they had supporting materials for the loans, i.e. that the loans were good risks. That's securities fraud.

The banks foreclosed when they didn't have the promissory note and didn't know whether they even had an interest in the property anymore. The documents they submitted in support of the foreclosure were under oath. Perjury is a crime.