The past week has seen a pronounced evolution in the writing of Dana Milbank. Earlier in the week he severely criticized the incestuous relationship between the political and media culture in Washington – including engaging in a healthy dose of self-criticism – revealed by the Kurt Bardella email scandal. Where did this newfound self-awareness come from? Perhaps that can be explained by his latest piece. See, Milbank discovered that, regardless of his prominence in the DC journalism community or access to power, to the banks he was still nothing but a mark.
Last fall, my wife and I refinanced our mortgage with Citibank. Sixty days later, we received a “cancellation notice” from our homeowners insurance company “for non-payment of premium.”
Turns out Citibank, which had been collecting hundreds of dollars a month from us to pay the insurer, hadn’t made the payments. It was, I later learned, one of the usual tricks mortgage servicers use to squeeze more cash out of their customers. About a month later, I learned of another trick: Citibank informed us that it was increasing our monthly payment by nearly $300.
Along the way, a simple refi became a months-long odyssey: rates misquoted, interest charged on a phantom account, legal documents issued in wrong names, a mortgage officer who disappeared for days at a time (first it was his birthday, then his laptop was in the shop), a bounced check from Citibank’s own title company, and the freezing of our bank accounts.
Sometimes it takes only a little shared experience to recognize the major problems in our society. For Milbank to understand the mortgage crisis, he needed to experience it first-hand. And he recognizes that he’s one of the relatively luckier ones; borrowers without his income stream or resources are being forced into foreclosure when they confront these situations.
Now, I don’t totally agree with one of his premises, that House Republicans are about to make this worse by attempting to repeal HAMP. In fact, these routine stories of servicer abuse happen inside HAMP every day, because of a program that is entirely discretionary and a Treasury Department that has to this day offered no sanctions for abusive servicer conduct or violations of program guidelines. Milbank recognizes this but can’t tear himself away from the position of many consumer advocates, that HAMP is bad but better than nothing. This relies on a pipe dream that you could actually fix HAMP and make it work for consumers; I think we’re beyond that stage.
But Milbank gets quite a bit right in this piece. He realizes that servicers have no concern over foreclosures and in fact have the financial incentive to foreclose over a modification. He understands the illegal fee laddering and the forced-place insurance scandal and robo-signing and all the other illegal activities which have become endemic to the servicers. He sees that the Consumer Financial Protection Bureau would be in a position to rein in the worst of these abuses if they don’t have their funding and responsibilities stripped away by House Republicans and handed over to the Office of Bank Advocacy Office of Comptroller of the Currency. And this is a fine conclusion:
My wife and I are reasonably savvy consumers – she has a brand-name MBA, and I began my career as a business reporter for the Wall Street Journal – but we were no match for a bungling bank. After five months of trying, we still haven’t been able to resolve all of Citibank’s mistakes – nearly all of them, curiously, in the bank’s favor [...]
That so much can go wrong with such a simple refinance doesn’t bode well for the 5.5 million homeowners in default (on top of the 3 million already foreclosed). It’s impossible to know for sure, but by some estimates, half of them are victims of some form of servicers’ errors.
“What happened to you,” Ira Rheingold of the National Association of Consumer Advocates told me, “happens to people every single day.” And it will continue, with its resulting drag on the economy, unless and until the big banks can be brought to heel.
If Dana Milbank didn’t come face to face with what homeowners see every day, I don’t believe this piece gets written. That’s often what it takes sometimes; the notion that it can happen to anyone doesn’t register until it happens to them. Now that there’s at least one person in the DC establishment who has had this experience, maybe he’ll pass this along to his colleagues, and keep writing about it. And maybe someday we’ll have an establishment which recognizes the depths to which our financial sector has stooped in search of profit.




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Hehehehe.
I may have something coherent to say when my “poetic justice” bone stops twanging.
*”Poetic justice bone” is similar to the funny bone, but instead of discomfort, it just triggers uncontrollable laughter in me.
This is one important feature of the winner take all society – people like Milbank may believe they are on the top, but there is a profound divide between the top .5% and everyone else, and those above are engaged in predation. He will not be the last to learn this lesson the hard way.
Now if Milbank were to be fired from the War Criminal Post for this heresy, he might finally approach understanding. (See Froomkin, Dan.)
~
So… “reporters” can’t report other people’s experience it has to be their own?
Bingo. I have learned over time that with few exceptions, Americans simply will not “get it” unless they take an arrow in the neck. How many times have you tried to explain to a mid- management boss about some problem in your division or shift and get nothing but words until WHAM!- they get the memo or lawsuit or whipping from above. THEN things start happening.
That is why I largely gave up on America politically and say just wait until the cookie really starts to crumble and vast numbers are out of work or can receive no health care without bankruptcy. The #’s may seem vast, but they’re not yet vast enough.
Ad this to the recent NYT article by Donna Dubinski about how hard it is, even for the well-off, to get health insurance in the USA. Dubinski is a co-founder of Palm and Handspring, and was famous (to me anyway) for her comments years ago on selling your first company in order to get f*-you money, that is, sufficient resources to be able to do what you want for a living and if something gets in your way you can just play the Cee Lo Green song and move on. Yet she found that despite being financially comfortable she could not find a company to sell her and her family health insurance because of really minor pre-existing conditions (if i remember correctly, minor skin condition). And if you pay for medical procedures yourself you pay 10x what insurers have negotiated.
So maybe even the wealthy are beginning to realize that what goes around comes around to all of us, and that health care and affordable housing and public education is not something that “they” take advantage of, its something we all need. Like a basic human right, like.
Reminds of the Sen. Trent Lott episode where State Farm (i believe) was gonna screw him on damage his house received in Katrina(?) or one of the other hurricanes. I’ll search for link.
He planned on doing nothing for his fellow Mississipians until he found out HE (and his brother-in-law) were getting the same treatment as the little people……. http://www.consumeraffairs.com/news04/2005/katrina_lott.html
Brief schadenfreude followed by a heavy sigh. His problem will be quickly solved and he’ll be writing a column praising the efficient bank staff for taking care of it…
*shakes head*
they bought off the entire journalistic community.
The incentives for Milbank make it impossible for him to retain skepticism of major institutional power. If he does he is out of a job. He cannot and will not allow this story to be written large, nor will his editors. It must be written small. He will be licking the boots of every Citi flack and executive on a personal and professional level tomorrow if the occasion or need arises. That is the price of success. Or rather it is not ever becoming aware one is paying any price at all which insures success.
Dana Milbank without a WP byline is nothing.
or screwed by a health insurance company.
Unfortunately, Milbank’s article will trigger a letter of apology from Citibank along with all the problems going away. A letter of apology from the head of Citicorp. He might even get a little sweetener. Then, things will just go back to being the way they were before, with Milbank wondering what all the fuss was about since Citibank got all the problems solved.
If you write for a major newspaper, I bet you can get a lot of life’s little annoyances straightened out. If you don’t, you’re sunk. This is what Milbank will probably never learn. I mean, if he hasn’t learned anything in his time in Washington, do you think something that will ultimately just be a bump in his privileged road is going to suddenly make him see some light?
Especially since – as you and others point out – this is all going ti go away (for Milbank.) This will reinforce that smug insiders viewpoint that all is fine with the banks as far as the “decent” folks are concerned. The “little people” who got the shaft were just too lazy to fix it.
Yeah. Milbank’s memory will last only until Citibank fixes everything they screwed up.
http://www.nytimes.com/2011/02/20/opinion/20Dubinsky.html
deleted
The banks own the politicians and justices.
EMPATHY is dead in Merika,therefore teachers should give up their pensions and grin and bear it….Dana will now do a total expose on the banksters……….right /chuckle
http://www.salon.com/news/opinion/glenn_greenwald/2009/04/30/ownership
yup
Well let’s hope that he and his wife lose their jobs and therefore healthcare and need to go on unemployment. Just think of the articles he’ll write then.
My experience: I had a hefty charge on my credit card bill once that was a mistake. It truly was an honest mistake, that’s not my gripe. It took me 6 months of phone calls and letters to clear it up and meanwhile the interest and penalties for non-pymnt were adding up. Fortunately, it was the only charge on my card so I knew all interest etc. were a result of that one erroneous charge.
I finally had it removed but they still wanted me to pay 6mos. of interest and penalties. My husband’s face was nearly purple with rage and frustration talking to them on the phone.
It finally worked out but…wtf..a year of dealing with these people when it could have been cleared up with the first phone call.
or medical malpractice
http://www.santorumexposed.com/pages/issues/issues-malpractice.php
Maybe he wrote the article for the purpose of getting action from Citibank-power of the pen. Is that view too cynical?
And even darker behind that is that once purchased the quality of that care is problematic. Medicine suffers from the same corruptions and ignorance as the remainder of the culture that we have seen evolving over the past 30-40 years.
Couldn’t happen to a nicer guy.
What’s amazing about this story is not that Citibank is crooked and greedy, but that they are so stupid that they screwed a Wash Post reporter. You’re right, they’ll fix it all with a 3%, 30-year loan with no points — and eat the closing costs. And Milbank’s tongue will find their ass again.
yup
squeeze every penny out of every living breathing,or dead peep
ye he thought he was an insider
hahahahahahahaha
must go ,have a good chuckle mes amis
long slumbering peeps ,awakening
Saw a story within past couple of months (link lost to history) that the only households to experience an increase in income in 2010 were those earning over $52 million, or some gigantic number like that.
Yeppers, everyone except the super super rich are getting screwed in the U.S. They just don’t know it yet.
Whaddya know! That ugly shoe that has been zooming across America fits his foot too!
I wonder if he has realized yet that while he was waiting for the refi to go thru, the refi company was waiting fot the present mortgage company to send another FICO report to damage his credit more. This allows the refi company to come back and say to him, oh hey look, your score is not what you thought it was so we can’t honor that quoted extra low interest rate!
BOOM!
They’re indeed Tigers prowling among us eating the weak, the young, the old the confused etc. Let the Buyer beware is the law of the jungle out here today and with it two other axioms of the market, WC Field’s immortal quote “Never give a sucker an even break” and PT Barnum’s smug observation about humanity “There’s a sucker born every minute.” The cons, hucksters, swindlers and pirates are everywhere these days. They populated every niche of our society and they all have crooked lawyers writing these ever evolving scams in the tiny sub readable print they specialize in. Our so called Gov’t has been captured by these legions and the rest of us are now being forced daily to navigate through their endless scams and schemes. This is what post Industrial America has evolved into and it appears its only going to get worse as we go forward.
Like I once told a client who was bitching about how he was going to sue and how wrong and un-American it was, the police searching his house pursuant to a search warrant:
Amazing what a little up close and personal experience can do to a person, isn’t it?
When even those who consider themselves “elites” find they are just marks the proverbial poo will hit the fan.
But they will never consider themselves part of the tragedy being visited upon the “rabble”.
Obviously, being “savvy consumers” is no protection against fraud.
The incident shows that the little jerks in the system treat accounts like numbers and not personalities. Now the Dana has published an account of the all too common disgusting practices and he is WP blabber mouth his problem will likely we solved and he will probably shut up.
But the alternative is he makes a point of hammering this and then his job is likely threatened and so it might be a one shot shout which simply gets shoved down the memory hole.
It also exposes what an asshole he is and how these people simple don’t report news and are largely “stenographers” for the elite. His very act of publishing the account shows him for being the shill he is / has been and so perhaps he needs to do some mea cupla ering and go back and re report the REAL story about his work over the years. I suspect he will find that he was nothing but a stenographer all that time and wouldn’t be able to look himself in the mirror if he had a moral compass or sense of guilt in his complicity with a very oppressive system.
jeebus, the Village discovers NACA a full six months after Dayen ?!?! say it aint so
oh, and . . .
Chris Hayes drives home this point wrt Unemployment here: Why Washington Doesn’t Care About Jobs
Yeah my brother took out a full mortgage on his paid off mini mansion so he could “make more $$$ in the stock market” because he’s so “savvy in it’s ways”
I hope they don’t need to move in with me! I don’t have room.
This is what happens when you think you’re above it all
I often get positively profiled bc I’m a senior white woman. I know perfectly well, if I get positively profiled (treated better than others by authority figures & institutions, but not by my employer which discriminated against me), there are whole classes of people who get negatively profiled.
Too bad Milbank didn’t have the self-awareness to recognize that.
OMG! Is there any talking him out of putting that money in the system, or has he already done it?
Nobody but the elities are making profits now. Small, individual investors are not getting dividends. Well, WalMart is finally paying some, but that is a very rare and troubling sign for that company. All of their P/E ratios are posted wrong. It would be a bad, bad, bad time for him to do this.
I actually knew someone who did that, but back in the 80s. I think his timing was right & he made money. I still thought, & still think, he was nuts.
Your home is NOT an investment. It is where you live.
Oh well…
Shutter Citibank before they can shred any evidence.
In the 80′s they had not finished completely re-rigging the system and didn’t have as many daytraders or shorters out there.
Now, it is a different age and different rules apply.
Kassandra,
Does he know how to manually figure P/E ratio and not take what is printed on the screen?
Dana discovers the entire system is corrupt… well banking… but what will he do about it other than get his stolen money back?
Nothing. Because the bank and the Chamber of Commerce will send military warfare spy teams after him.
The old saying is that “a conservative is a liberal who’s been mugged.” But it depends on who does the mugging.
If Milbank had really been a savvy consumer he wouldn’t have gone to Citibank. With all that’s been in the news about problems with the banking giant a smart consumer would have gone to a local savings and loan for a re-fi. Shame on Milbank for failing to see what many of us have been studying since the mortgage fiasco began — that if there’s a way for the big guys to screw their customers, the customer will be scrod!
welcome to the party Dana let us know how it feels..better yet tell your snob bought buddies in the media how it feels to be screwed over by the banks,,maybe you guys will wake up,,,
Yep.
For nearly a decade, from 9/11 until 2008, I paid no attention to financial markets as I was learning about Islam, foreign policy, terrorism, etc.
Then the financial collapse occurred. I was amazed at how much had changed for the worse in those years compared to when I worked in the industry. And I didn’t have much respect the industry when I worked there either.
His colleagues are just like him. They won’t believe it could happen to them until it does. They’ll just think that Milbank is a WATB. Blame the victim is their mantra.
From what I can see P/E ratio etc, don’t seem to matter in the market. Cramer pointed out hedge funds can buy/sell the whole market every day if they want.Just one big rigged casino. That guy that sets the sports spread is Vegas says he’ll never touch stocks again.
When refinancing last year, I insisted on no escrow. I’m paying for that, because they tack on an additional .25 percent on the mortgage. It doesn’t matter. I used to go to the county treasurer’s office fairly often and it was not unusual to see a couple talking to the staff because their taxes weren’t paid from the escrow account. I know I’ll pay taxes and insurance on time.
Well, let’s see if he carries the “I got screwed” banner forward. He has an opportunity to use his “media standing” to give guys like Matt Taibbi a hand in exposing the banksters.
Citibank will probably make nice with him and you will never he from him and his brand name MBA wife again on the subject.
Dana Milbank was ALWAYS a liberal, and his experience, recounted with his usual smug arrogance, isn’t the spark you think it is for a change of heart. Personally, I think you’d have to be a moron to go to Citibank for a mortgage re-fi or anything else in this world. And, why didn’t he point the finger at the real culprit behind the incompetence, cronyism and corruption: Tim Geithner and Ben Bernanke? Geithner & Bernanke have made it their singular focus to save the big banks, no matter how corrupt the means to do it. Crickets from Dana. He got what he deserved, a spanking. He’s never been as smart as he thinks he is.
I say let’s force some empathy into that dark Beltway bubble of iniquity.
No more taxpayer funded healthcare and pensions for elected officials, starting with the CongressWhores.
Let their corporate sugar daddies buy them further, or make THEM pay for it out of their overcompensated, unproductive asses.
Hell, they’re at war with us. About time for a counterstrike?
Maybe he wrote an article they didn’t like?
The best way to fix HAMP isn’t to shut HAMP down. The best way to fix HAMP would be to shut down the banks.
Should we even be calling them banks anymore? They behave more like mafia outfits. CitiMob, Mob of America, Wells Mob, Goldman Mob.
Moral dilemma: do I scamper over to Milbank’s article to give him the “traffic of approval,” or do I just ignore the creep, as usual?
No whine before it’s time:
This saved your crack Countdown staff an increasingly difficult decision.
For nearly a week we’d been waiting for him to offer a correction or an explanation for his column from last week in which he apparently reported an Obama quote without a full context turned the meaning of the quote inside-out.
Then he called criticisms of his column “whines” even though the dispute was over whether Obama said the self-deprecating: “It has become increasingly clear in my travel, the campaign — that the crowds, the enthusiasm, 200,000 people in Berlin, is not about me at all. It’s about America. I have just become a symbol of the possibility of America returning to our best traditions” — or only the part about “I have just become a symbol…”
We had decided not to have Dana on this news-hour again until this was cleared up, and, sadly after some very happy years, he’s apparently chosen to make that cloud permanent.
From courtier to serf, and as others have already pointed out, likely back to court again.
Don’t know if Dana reads FDL, but if he does, I am sure that he was not expecting the responses about him personally and professionally.
Nobody actually gives a shit about his Citibank screwing either.
Brother Froomkin! One whose name will be inscribed in gold on marble once the revolution comes. As opposed to the representatives of the Sirius Cybernetics Corporation.
With the undercurrent of utter terror that they might become screwed like him. So they’ll treat him as if he has leprosy until he starts “talking right” once again.
Maybe Gov. Walker and all his Republican followers who daily demonize those public sector workers for their incompetence should take note that the Citibank incompetents so angrily exposed by Milbank are private sector workers. Incompetence, sloth, and arrogance, as we have seen in so many cases, is just as common, and possibly more common, in the private sector. Coal mines? banks? wall street traders? pharmaceuticals? The list is long. Maybe next Milbank should try teaching school for a week, if he could last that long.
Private sector banks, banks that would not exist without public financial assistance, are run incompetently.
Private sector health insurance costs twice as much as in other developed countries while at the same time providing less desirable outcomes.
Maybe this private sector is as efficient as conservatives tell us.
Frightening stuff. Suddenly your credit rating is going south, your employer is reviewing it on a routine basis as to whether or not you get to keep your job despite the fact that this isn’t even legal, and then you figure out the banksters are playing games with your money and not holding up their end of the bargain at best. Your legal records are getting damaged, you are the last one to know and they stay damaged in the system floating about the US and other countries never to be repaired because the folks running the system refuse to be accountable and just.do.their.job. Of course these Scarlett Letter society shenanigans are a setup for the prey to enter and wander the lower hells of “credit repair”– a whole other massive predation. Another acquaintance just recently at an interview said the HR person had a file of stuff from a background check that was related to someone else with that name or for stuff decades ago for which there was absolutely no legal proof (hello, a legal document) at all. This blackmail system needs to be ended pronto. Also say Audit the Federal Reserve and the banksters.
“Saw a story within past couple of months (link lost to history) that the only households to experience an increase in income in 2010 were those earning over $52 million, or some gigantic number like that.
Yeppers, everyone except the super super rich are getting screwed in the U.S. They just don’t know it yet.”
You know ecahn, there is something decidedly repulsive about an independently wealthy person continually remarking that the rich are screwing the middle class in this country, and usually implying that there is nothing to be done about it. You do this a lot.
Agree – the arrogance of the conservative elite is hard to accept – and since any family can generate a smart kid, the conservative elite’s smart kid progeny are the ones getting those “high pay” jobs with various job titles that are supposed to convey achievement – while trailer trash/lower middle class smart kids get the shaft. It is good to have good family mentors. Meanwhile America exhibits the characteristics of a small village where everyone is more concerned that the rest of the 90% not rich in the village do not get “unjust” rewards than they are with the 10% that are ripping them off.
Health “insurance” needs health services price setting – as in Japan and elsewhere – or our economy is doomed. There is no market solution other than die young as Grayson pointed out.
five’ll get you ten that Citibank is right now organizing a “make Millbank happy” task force and his anxieties will quickly be a memory.
I doubt that is likely – they only respond to law suits. My daughter took one pro-bono against BofA – and won – for over a thousand dollars of coins for a lady that went into the bank with many years worth of saved quarters, rolled them, and deposited the rolled quarters to her account.
As in my own case, BofA lost track of the cash deposit – and claimed it had not been made. (my case was for 400 – and a 200 filing fee stops me – daughter is not licensed in Mass).
“Yeah my brother took out a full mortgage on his paid off mini mansion so he could “make more $$$ in the stock market” because he’s so “savvy in it’s ways”
sigh – change the above to “two bedroom” 1856 servants house and your brother and I had the same silly, devastating thought.
One of my favorite reporters in SF was David Lazarus. He left after the SF business section decided they didn’t want a reporter who exposed stuff that helped the readers, not the advertisers. He went to LA. But before he left he did a story about how his identity was stolen, it was a great story and because it was personal he dug deeper. Maybe this event will make Dana a better reporter on the issue.
For everyone who says, “Well Citi will just clear it up because he is a reporter.” I agree, but there is something we can do about that. We can write in and ask him what happens next. This is the place where if we wanted to we could do some follow up. Our very own David Dayen could call him up in a few weeks and ask, “So how as Citi responded. Do you think that if you hadn’t printed this story in the New York Times they would have fixed your problem? Could you do an interview with the people who fixed your problems so that other non-famous people can get help?
The power of the New York press on the people who care about money and image/brand is very big. And if Dana wanted to push it for others he could, but this of course would risk the famous “objective” stance.
When you learn the truth and experience it personally you are actually NOT being objective if you keep pretending like the banks aren’t out to screw people on mortgages. Yet I can guarentee you that the PR and brand people will keep pounding on Dana for not being “objective” anymore and they will probably go to his publisher and demand he not write on the topic anymore since his views are tainted. Let’s help keep Dana out there using this hard won information. I suggest Dday follow up with Dana if he doesn’t write about it.
I think rich is a relative term. Someone making $52 million a year is more than independently wealthy, wouldn’t you say? A million dollars a week? You could probably support a family on the interest alone.
It isn’t the independently wealthy with a social conscience I tend to worry about. It’s the trickle down true believers who haven’t the intelligence to read economics reports closely enough to see that all that trickle down shit was a myth.
And what exactly do you think is possible to do about what’s going on here? You saw, I presume, how all the crimes that fed the financial meltdown were ignored and no one was prosecuted for the insurance fraud that was the AIG bailout? Short of picking up arms and storming Wall Street brokerage houses and the New York Federal Reserve building all that can be done is to continually point out how completely everyone except the obscenely wealthy oligarchs is getting the shaft here. I don’t begrudge anyone a comfortable life unless they’ve become comfortable by looting the treasury or doing a Mafia-style bustout of a bank.
There is more to this State Farm and Mississippi Katrina policy holders story.
Trent Lott’s brother in law is Dickie Scruggs.
Dickie Scruggs son is Zach Scruggs.
Trent Lott announced his resignation the day before the FBI executed a search warrant at Scruggs Law office. Indictments followed the next day.
I object to the repitition and reinforcment of the idea that nothing can be done to correct the imbalances, because ‘we’re’ all so very, very, helpless, even though we are 90% of the population. The rich need to mind their manners while their stock prices are subsidised by the rest of us, imo.
Perhaps you feel differently?
Well, before we lynch this guy…I would like to add, that I have been sharing my nightmare with GMAC (who rarely gets mentioned as one of the big banks involved and I can’t figure out why…but google it and you will see the horror)…for about 5 years. In my five years, I took a lot of hits, right here on this blog and also over at kos. Very few people believed me when I said that the balances are bogus…that they are forcing foreclosures using illegal means. Right here…my diaries often included comments from well meaning folks who just did not understand the scope of this problem.
Live and let live…let’s just unite around this…I want to save my home.
Schadenfreude Schadenfreude oh how miserable I would be if I didn’t see free marketeers get what they deserved to give me a healthy dose of Schadenfreude!