The Banksters Strike Again

Collarspace Discussion Forums

Home Login Search

The Banksters Strike Again

View related threads: (in this forum | in all forums)

Logged in as: Guest

All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> The Banksters Strike Again

Page: [1]

Message

<< Older Topic Newer Topic >>

The Banksters Strike Again - 8/24/2010 11:51:35 PM

Brain

Posts: 3792
Joined: 2/14/2007
Status: offline

The advice from the IMF is to treat it the same as crony capitalism in third world countries is treated: nationalize the banks, bust them up, sell them off at smaller sizes, AND prosecute and bar from further activity in the sector all those responsible for the scams.

From Chase's website: "No matter what your individual situation is, you may have options. Whether your want to stay in your home or sell it, we may be able to help."

Key word: "May." Translation: "May" = "Won't."

The Banksters Strike Again
Chase Bank and Obama's "Make Home Affordable" Scam

SOMEWHERE IN AFGHANISTAN--It isn't surprising, what with the world falling apart and all, that the world scarcely noticed that I lost my job as an editor in April 2009. Why should it? I was one of millions of Americans who lost their job that month....The bills, of course, kept coming. Including my home mortgage. Unlike many people, I was conservative. When I bought, in 2004, I put down more than 50 percent of the purchase price. Refusing an adjustable-rate mortgage, I took out a vanilla 30-year fixed-rate mortgage from Chase Home Finance LLC.

...So I asked Chase for help...

In reality, it exists solely to give banks like Chase political cover. They deliberately give homeowners the runaround, dragging out the process so they can foreclose. As of the end of 2009, only four percent of applicants received any help. By June 2010 the vast majority of that "lucky" four percent had lost their homes anyway--because the amount of relief they got was too small. About a month later, Chase sent me a letter asking for the same exact documents I had already sent them. I was perplexed. The application was in the same package as the supporting papers. How could they know I wanted to apply for HFA, yet not have that stuff? They also asked for another bank statement--for the month that had passed between their receipt of my application and the date of their letter.

They did it over and over. They'd confirm receipt of an item, then demand it again. They asked for one particular month's bank record three times--after telling me that they'd gotten it twice.

"The foreclosure-prevention program has had minimal impact," says John Taylor, chief executive of the National Community Reinvestment Coalition. "It's sad that they didn't put the same amount of resources into helping families avoid foreclosure as they did helping banks." I would also like to volunteer for the firing squad if and when these scumbags get what they deserve.

http://www.informationclearinghouse.info/article26208.htm

Ted Rall Online: www.rall.com

Ted Rall, 2008-09 President of the Association of American Editorial Cartoonists, is an award-winning cartoonist and columnist for Universal Press Syndicate. He is the author of 15 books, including graphic novels, political polemics and travelogues about Central and South Asia.

Profile

Post #: 1

RE: The Banksters Strike Again - 8/25/2010 7:05:06 AM

pahunkboy

Posts: 33061
Joined: 2/26/2006
From: Central Pennsylvania
Status: offline

I am sure it will blow over.

(in reply to Brain)

Profile

Post #: 2

RE: The Banksters Strike Again - 8/25/2010 9:00:20 AM

brokedickdog

Posts: 114
Joined: 8/13/2010
Status: offline

Loan servicers profit more by dragging out the process of applying for a loan modification than they do by actually modifying the loans. In other words they have a financial disincentive to modify loans.

Most pooling and servicing agreements (PSA) DO NOT give loan servicers the authority to modify so they cannot modify loans anyway.

Loan servicers also profit more through foreclosure than modification. This is usually done by adding bogus and trash fees to the foreclosure. Because it comes at a time when the homeowners are without any resources left to fight with it is rarely brought to the attention of the court, goes unchallenged and is not adjudicated.

There are suits being filed by investors/shareholders in the pools of mortgages - largely for fraud and misrepresentation - but I think the bad behavior on the part of servicers (endless delays through consistent loss of the applicants paperwork being just one) will be brought out in some of these private suits. In a foreclosure it is the trusteee (through PMI policies AND CDS) and servicer (through trash fees) that profits while the investors absorb the losses. In foreclosures it is almost always either the trustee or the servicer that files the suit as plaintiff. The PSA, on the other hand, usually mandates that a foreclosure can only be initiated if a certain percentage (commonly 25%) of the shareholders vote in favor of such. I have read no foreclosure cases, none, in which that requisite vote has taken place.

From a purely practical perspective modifying loans is in the best interest of the investor. To maintain something of an income stream, even if it is reduced, is better than huge losses. Yet trustees and servicers are breaching contracts and cutting the investors out of the loop, forging ahead with foreclosures that are only in their own interests and are foisting the losses on investors. These investors are typically: pension funds, school boards, insurance companies, unions, county/city/state governments, foreign investors and foreign governments.

Both HOPE, under Bush, and HAMP, under Obama, have missed the mark completely and both have been dismal failures. Neither administration has accurately diagnosed the root of the problem and without doing that there is no real chance of applying a proper or effective solution. It won't get any better until people with integrity are given authority to diagnose and correct the problem. Unfortunately I don't see that happening anytime soon.

And Brain, it is good to see someone else on this board contributing source information regarding this issue in the ways you have. I can tell you the story related above is not the exception it is in fact the standard operating procedure.

(in reply to pahunkboy)

Profile

Post #: 3