I mentioned previously this meeting between homeowners and the lead Attorney General in the 50-state investigation, Iowa’s Tom Miller. The activist groups who coordinated the meeting have reported back, and according to National People’s Action, Miller agreed to all of the terms they were seeking to resolve the foreclosure fraud crisis. Specifically, he agreed with the three-pronged approach of: loan modifications with principal reductions; compensation for foreclosure victims cheated out of their homes; and most important, criminal prosecutions for those who caused this hardship. This is from the NPA release:
“We will put people in jail,” Miller said, in response to questioning. “One of the main tools needs to be principal reductions, just like in the farm crisis in the 1980s…There should be some kind of compensation system for people who have been harmed…And the foreclosure process should stop while loan modifications begin. To have a race between foreclosures and modifications to see which happens first is insane.”
We don’t know who would be going to jail in this scenario, of course. Miller could be talking about Jeffrey Stephan and the other robo-signers whose names are attached to the fraudulent documents. They are the Lynndie Englands of this scandal. They were the dupes who did the work, not the bigwigs who designed and authorized the scheme. The AGs need to go up the ladder and take out the heads of these servicers; they’re the ones whose judgments are leading to the fraud.
Still, it is very refreshing – and unusual – to hear about criminal prosecutions in this context. I don’t think I’ve heard as strong a line as “we will put people in jail” from anyone in a position to do it since the discovery of foreclosure fraud. Too often the focus is on getting the banks to listen to reason, or preventing this from happening again. That just eliminates the rule of law as a governing concern in the United States. Crimes were committed – are still being committed – and law enforcement must enter the picture. That’s how you prevent an eternal recurrence of these crimes. So good for Tom Miller.
Overall, Miller met with 100 homeowners, foreclosure victims, and representatives from faith, community and labor groups today. Deacon Mike McCarthy, member of a faith group called Iowa Citizens for Community Improvement, said afterwards, “We are very pleased with how this meeting turned out and now our expectations are higher than ever.” The message was clear; you cannot make these promises and expect not to be watched. Other meetings with additional AGs have been scheduled for the future.
Afterwards, the participants protested in front of Wells Fargo Home Mortgage and a Bank of America branch in Des Moines. Other protests are scheduled by community groups this week in California and New York. You get a sense that at least some activists are taking matters into their own hands.
High expectations are often made to be diminished. But the potential certainly exists in the AG investigation for a strong settlement.
…More at Showdown in America.





7 Comments

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I am not surprised. Miller is a real lawyer, he’s smart, he went to Harvard, was an early Obama supporter in Iowa, and he’s been AG for twenty years. He has a reputation for taking people on where merited, and got reelected despite oodles of cash being spent against him. (His opponent had formerly worked for Steve King and never practiced law a day in her life, as Tom Harkin noted. But she has the qualifications to be Gov. Branstad’s chief counsel, so it’s all good. For her.)
Hey Holder, put Assange and the anti-war protesters on hold and give Miller a hand would you? No, you don’t need to ask Mr. “Look Forward And Not Back” for permission.
I have an uneasy feeling about Counselor Miller’s and Julian Assange’s futures. I hope I’m wrong.
Can he include Tim Geithner in his candidates for jail? Just over from ew’s thread on Geithner’s letter to Cong. re investigations.
Grrrrrrr.
Certain FORECLOSURE MILL LAW FIRMS are prime jail candidates. It is well past time to fully investigate them. http://chn.ge/eU2zAm
Lawyers who intentionally execute fraudulent, defective, or questionable foreclosures causes useless property deeds; impediments to title insurance for newly-sold homes; mortgage default insurance disputes –and more! Knowledge of laws & civil procedure is not required from lenders, nor loan servicers, but from FORECLOSURE LAWYERS. Sample illegalities:
–Deliberately use defunct lenders,lenders without “standing” for false civil and bankruptcy foreclosure proceedings.
– Create and conceal malpractice foreclosure delays and engineer billable litigation.
– Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’
– Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits
– Some are self-dealing foreclosures which certain lawyers themselves obtain foreclosed properties for flipping.
–Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities.
– Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar.
– Intentionally false BANKRUPTCY COURT “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of “NON-SECURED” mortgage debt.
–Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance.
–Fraudulent foreclosures abet loss of property taxes to city revenue, rodents, vagrants
– Thousands of families made unlawfully homeless from null foreclosure proceedings.
*SEE: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#
David, I’m sure you covered this in your HAMP series, but I would like to see it emphasized in every story about foreclosures: the vast majority of underwater mortgages need to take a haircut, be written down, but this is not only for practical reasons (i.e. an affordable monthly payment); it is for moral reasons as well, because these home prices and original valuations were inflated by FRAUD IN THE SYSTEM!
The bubble was inflated by mortgage mills and phony appraisals: the vast majority of purchasers were cheated in the original sale, because the market was fraudulent from top to bottom. As we can now see, these houses were not worth what they were appraised at; we need to restore the house prices/valuations to a just price–which, not coincidentally, most purchasers would be able to afford.
This can’t be emphasized enough, in my opinion: there is still enormous resistance among other taxpayers to “bailing out” the reckless purchasers; we hear of moral hazard, and on and on. That’s the impulse that founded the Tea Party! But people were encouraged to buy homes, it’s the American Dream, and Uncle Allan and the President said to do it; little did they know they were buying at the Company Store, where all the prices had been artificially inflated.
Underwater mortgages need to be written down to reflect a “non-fraudulent market true price”: economists actually have ways to figure that price out, so we should settle for nothing less! As long as the purchasers did not lie in their application (very easy to determine), THERE IS NO MORAL HAZARD INVOLVED IN WRITEDOWNS!
Please, everyone, spread the word! No moral hazard… just restoration to a fair price in a non-fraudulent market.
URGENT need for Lawmakers to take action! Scores of HOMEOWNERS DO NOT CONTEST FORECLOSURES BECAUSE:
1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.
2. And even those who identify wrongdoing lack funds to pay for attorneys to represent them.
3. Homeowners are told to come to foreclosure auctions with $$$$$$$ that they do not have, SO THEY STAY AWAY from foreclosure auctions.
These homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtains ILLEGAL ownership of people’s homes; and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are null! For these very reasons, there needs to be a probe of lawyers who file foreclosures. http://chn.ge/eU2zAm
Also, the average lay person doesn’t know about legal REQUIREMENTS of “standing” that prevents their homes from being repossessed via non-existent lenders or via lenders which have no ownership of promissory notes.
Yet, COURTS ARE SUPPOSED TO ENFORCE STANDING and compliance with established laws! Illegal, defective, fraudulent foreclosures are the cause of useless property deeds for real estate sales; title insurance companies refuse coverage on foreclosed properties –and more!
Further, after certain foreclosure auctions (via simulation) result in fraudulent –NOT LENDER ACQUISITIONS, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on! *MORE info: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#