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UncleNasty -> RE: Countrywide and Politicians (10/24/2009 8:28:10 AM)
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quote:
ORIGINAL: DarkSteven
The granddaddy of all populist revolts oughta be happening about now...
DarkSteven,
Well... That would be tough to manage.
The people most effected by, and most knowledgeable about, the many reasons a populist revolt would seem like a good idea and undertaking have been so weakened and enfeebled there is little chance they'll be able to launch one. Funny thing but when you have your home taken away, by whatever means and for whatever reasons, mounting anything like a fight typically plays second fiddle to putting another roof over your head and trying to find food for the table.
Specifically to the OP the issue of VIP and preferential loans is one of some limited import. Was any favor by those in power (Dodd, et. al.) curried as a result of this special treatment? Yes, the answer matters. But in the overall investigating that issue is like picking gnat shit out of pepper. How many of these preferential loans may have been made? 100? 1000? And the difficulty in actually PROVING that a loan of this nature had influence on the decisions and actions of Dodd is going to be very high.
Compare the above numbers to this one: 4,000,000. That is the number of foreclosures we're expecting this year.
Expending time, energy, money and other resources in the investigation and/or prosecution of Dodd, and others, will do little or nothing of positive impact for those 4 million, their spouses, their children, all of which are directly impacted, and the rest of the network of their relatives and friends that are impacted indirectly.
A better way to have positive effect on the banking and foreclosure issue would be to educate the courts on the law, on the deficiencies of foreclosing plaintiffs pleadings, and on the ways to rule in accordance with the facts and the law. The overall belief and assumption of the courts at this time is that if an entity files a foreclosure action they DO have a right to do so, to enforce the instruments that are the subject matter of the suit, and to take away an individuals property. Because of this foreclosing plaintiffs rarely if ever have to actually prove they have that right.
In so many cases (yes, the VAST majority of cases) they do not have the rights to do the above. These rights are covered in detail in both federal and state law.
The entirety of the foreclosure and housing problems could be greatly reduced with only a few "tests" being applied in the courts. And courts do have the authority to act on their own initiative, or sua sponte.
1) Were/are the loan/s in question in compliance with federal and state lending laws?
2) Was/is there any fraud or misrepresentaion involved in the making of the loan/s?
3) Does the foreclosing plaintiff have demonstrable and strict proof, in accordance with federal law or laws of the local jurisdiction in which the action is being brought, that it is the lawful holder and owner of the instruments (P-note and mortgage[or deed of trust])?
My experience in this area leads me to the belief that between 70 and 80% of the foreclosures that have occurred in the past 5 years, and of the ones yet to occur in the next several, did not, cannot, and will not be able to adequately pass those simple tests.
Number 1 is covered, generally, by Truth in Lending Act, Homeowners Equity Protection Act, Real Estate Settlement Procedures Act, Fair Debt Collection Practices Act.
Number 2 is covered by states laws of contracts and their respective statutes of fraud.
Number 3 is covered, in the case of the P-note, by the federal Uniform Commercial Code(UCC), and by each states adoption of such, typically in Article 3. In the case of the mortgage it is covered by the states laws of contracts, statute of frauds, real estate recording statutes, and again by the UCC in Article 9.
It is easy to look at Dodd, and a few others, as being the only culprits and guilty parties. Easier and quicker to wrap up the issue and find an ineffective solution that we merely feel good about. But in truth it is literally thousands of people that are complicit in this. I place judges at the head of the line. All foreclosures, whether judicial or non-judicial, do go through a process and are in front of a judge (or other person authorized to decide) that must make a decision and a ruling. Repeatedly and consistently these judges act more in the interests of mere expediency than in the interests of justice.
Even when present with accurate information, and raising the legitimate questions and arguments, most judges are simply refusing to rule in accordance with the facts and the law.
Uncle Nasty
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