more government and bank scham with occ foreclosure review

 From Naked Capitalism.
Interesting story about the continued bank friendly government programs that are really just ways to help the bank image and for politicians to look as though they are doing something.  The reality is that the banks and servicers are screwing homeowners and over charging while not applying funds to payments to make people fall further behind.  THE BANKS STOP APPLYING FUND TO MORTGAGE IF YOU FALL BEHIND SO THEY CAN SEND YOU NOTICES SAYING YOU ARE FARTHER BEHIND THAN YOU ARE AS THEY HOLD FUNDS IN SUSPENSE EVEN IF IT IS A FULL MONTHS PAYMENT. THEN THEY WILL NOT ACCEPT ANY FUNDS AT THEIR BANKS AND EXPECT IT TO BE SENT OVER NIGHT TO THEIR SERVICE CENTER.  CASH IS NOT ACCEPTED AT BANK LOCATIONS.
IS THAT HOW TO HELP HOMEOWNERS OR TO IMPROVE THE SYSTEM. NO IT IS JUST A SCAM TO MAKE MORE MONEY FOR BANKS AND FOR POLITICIANS TO SIT ON THEIR ASS DOING NOTHING. 

Morgenson on the Sham of the OCC’s Foreclosure Reviews

Given that the Office of Bank Boosterism Office of the Comptroller of the Currency is the clear first among the highly competitive ranks of bank-friendly regulators, the fact that the OCC launched a program for borrowers to obtain restitution for financial harm suffered due to foreclosures seemed more than a bit sus.
Gretchen Morgenson does an admirable job of exposing the multiple shortcomings of this OCC program. She quotes Alys Cohen of the National Consumer Law Center, who nails it: “Not only will it not help people, it could easily harm them.”
This is yet another Obama Administration “pretend we are helping ordinary citizens when we are in fact helping the banks” scheme. The most damning tidbit comes late in the article, that borrowers may (I’d assume will) be asked to sign releases that are far broader than the matters under examination. In other words, to get whatever relief the OCC provides, borrowers may unwittingly give up rights worth far more:

For example, participants in line to get remuneration may be asked to give up their rights to defend themselves if they get into financial trouble again.
“This process is not meant to fix the original lending practices, so people need to hang on to their right to challenge the original loan later,” she [Cohen] said.

Morgenson’s account depicts several shortcomings. The banks hire “independent” auditors of their practices, and Morgenson identifies two that look compromised (including one flagged by Michael Olenick on this site). And why, pray tell, isn’t the OCC conducting these reviews? Similarly, the review covers only 2009 and 2010, when many subprime borrowers hit the wall earlier. It’s pretty clear that this process, like the bogus Foreclosure Task Force (which reviewed 2800 loan files and did no validation of the data in those files) is designed to give servicers a clean bill of health, with only some problems that will be deemed to be minor and on their way to being remedied.

What is more than a little frustrating is that this regulatory-initiative-as-coverup is SO predictable, yet so few journalists treat these programs with the skepticism and derision they deserve. We can only hope that one of the perverse benefits of the protracted housing recession will be that media and public complacency erodes.

Corrupt White House? Surprise Surprise

It is of little surprise that the Obama administration is taking sides with the bank in order to wash away all the sins committed in the mortgage fraud scandal.  Yves Smith called the Obama Administration "corrupt" today on her blog Naked Capitalism.  I agree with her 100% but I would add a question to her statement. 
Who isn't corrupt in Washington or in any branch of the state governments today?  I think getting into power either bring out the criminal in all those who are elected or it corrupts even the honest people.  I don't know the answer but there is no shortage of criminals in government today. 
What we have seen in the past few years has been a travesty.  The freedom to life, work and prosper in the United States of America has been pillage by the politicians who are in bed with the banks.  It is a disgusting time in politics for everyone and we will see that nothing will change the way of politics.  The new parties will bet  the same as the old parties and the gap between the haves and the have nots will continue to widen until we are living in a world of rich and poor. 
Those who have sought bower have taken it with the intention of confiscating as much of it as necessary to make the country fall apart.  It blows me away that people are not more outraged at what has happened to our financial system.  We have witnessed the most brazen and egregious transfer of wealth in the history of the world and our PRESIDENT, thinks it is OK.  He is not in jeopardy of ever having to work for a living and his book deals made him an instant millionaire after doing absolutely nothing extraordinary in micro biologyhis life until he become president.  Of course it is now clear that he was no more qualified to be president than a college student studying micro biology.  

The fat cats on Wall Street and the politicians have rolled a giant snowball to the side of the hill and it is ready to go over the edge.  Once it starts it will be too late for anything to be done.  This wrecking ball will get bigger and bigger until it is unstoppable.  The banks will have re-written the books on how to get away with the crime of the century and the biggest chapter will be on properly screwing as many citizens as you can because the government elites will always go where they think the money for their next election will be most abundant.  Of course that is with the to big to fail banks and the Washington power brokers. 

What have we been hearing the past 4 years or so?   That therecession is contained, it is over, we are growing again, jobs are picking up, the economy is coming back, never count out the American economy etc etc....
what has happened?  Banks have held the country hostage waiting for the government to give them another get out of jail free card for their hand in the mortgage crisis.  The government is giving free money to the banks so they can sit on all of their capital and make millions of dollars risk free by investing in treasury bonds.   They pay O percent to the government so any return they get is complete profit.  We are stuck with putting money in  savings or checking account to ensure liquidity.   It is a stroke of luck if we make 2% on either account and of course real estate is still declining and the stock market is again becoming an elitist game that is dictated by high frequency trading as the removal of the uptick law has taken stock trading off the list of jobs were the common man could make it big in America.  Now that real estate is gone from that list there isn't much left for the individual. Real estate and stocks were available to everyone even if they had very little money to start.  Now they are off the table which leaves anyone who want to create a wealthy lifestyle searching for a starting place. 





Make big money in penny stocks today

NYT: Banks poised for dividends after 3-year gap - Business - The New York Times - msnbc.com

Banks on a role. Amazing what trillions of dollars in bailout money will do to get you through a recession. Our government and citizens do not have the will to hold the banks accountable for their law breaking activity, regardless of the damage they have inflicted on the country.

New York Times Story paying dividends again. 
NYT: Banks poised for dividends after 3-year gap - Business - The New York Times - msnbc.com:
 "Investors in bank stocks are about to get a big cut of the profits again. Financial analysts say the nation’s largest banks are ready to begin restoring their dividends in the first half of the year, after a three-year pause to repair their damaged balance sheets. The reversal could put billions of dollars in the pockets of pension funds and retirees who had viewed bank shares as dependable sources of income. Clues to how big a payout is in store could come as early as Friday, when JPMorgan Chase announces its 2010 financial performance, the first of many earnings reports to come over the next week from the likes of Bank of America, Citigroup, Goldman Sachs and Wells Fargo."

Massachusetts Supreme Court voids foreclosures - Jan. 7, 2011

Massachusetts Supreme Court voids foreclosures - Jan. 7, 2011 Mass. Supreme court will not allow bank to foreclose without proper evidence of title. The Foreclosure fiasco is exactly right. It is hard to believe the only reason this ended up in court was because the banks could not re sell the property after they took it back without the legal right to do so. They were trying to establish the chain of title by asking the court allow it even though they didn't do it before they brought the foreclosure proceedings. It appears that as long as the banks can get title insurance or sell property for cash after a foreclosure, they will not be required to prove ownership. This is likely to have happened millions of times in the United States already with nary a peep from the banks, Congress or the Administration. The White House has hopped back in bed with Wall Street after realizing the likelihood of losing too many votes to those done wrong by the banks was very slim. Moral of the story is after years of a devastating financial crisis caused by Wall Street the Too Big to Fail Banks has done nothing to change the truth that banks get their way.

Judges allowing foreclosures without verification of ownership by the banks

Everyday we are seeing more and more stories about how the banks are just rolling along with the foreclosures with little regard for the law.  They are often getting away with improper filings because most homeowners do not have show up in court.  This could be for financial reason or many other things but it gives the banks the upper hand. 

One way to have your rights trampled is to not show up in court. Judges have little patients for cases where only one of the parties is there. The banks take advantage of this everyday. If no one is there to represent the homeowner the judge is not going to do anything but rubber stamp the bank request. They won't even give the file a second look.
The case may be changing in some areas as Yves mentioned but the vast majority of cases where the defendant fails to appear are wins for the bank. It won't matter if they have the right to foreclose or not.
The judges I have seen have had large or fragile egos of course and consider their time extremely valuable. It always seemed to me that the judges considered no shows as disrespectful to the judge and the court.
ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism
I don't think there is a solution that will help homeowners other than the judges being skeptical of the banks. I don't anticipate a great number of judges bending over backwards to stand up for homeowners that fail to appear.
Yes the law is the law but reality is reality. Judges can get away with just about anything and if they can move through cases more quickly I am sure they will do it.

The fact that tarp money was not allowed to be used for legal aid etc, could still prove to a major set back that will keep thousands of homeowners from showing up in court.

Related Story at Naked Capitalism.com