Thursday, February 24, 2011

Obama Busy Selling Out Troubled Homeowners to the Foreclosing Banks

Obama is pushing hard for a $20 billion "settlement" with the TBTF US banks so that these banks will be able to foreclose without inconvenient encumbrances like having to prove the ownership of the notes properly and timely endorsed and transferred. Never mind that almost all mortgages securitized in the last 10 years or so have been improperly transferred or not at all, and foreclosures have been done by entities with no standing to foreclose. Never mind that every single foreclosure-related documents may have been signed by so-called "robo-signers" who simultaneously work for all servicers in all states. And never mind that states and counties have been missing a significant chunk of revenues in recording fees (and it's not just MERS).

From Business Insider (2/23/2011):

The Obama administration wants to push through a massive settlement over mortgage-servicing breakdowns that could force the nation's biggest lenders to shell out more than $20 billion in fines, or to at least fund the same amount in loan modifications for troubled borrowers, the WSJ reports.

According to Reuters, the terms of the proposal, which would obviously require a commitment from the mortgage servicers themselves, have not yet been presented to the banks.

The White House hopes such a deal would allow the foreclosure process to start ramping up again.

Yeah Barry, good job, you've shown your true colors. Always help your biggest supporters. Just don't pretend it is for "working-class homeowners".


Post a Comment