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Mortgage by Rev Dan Catt
Another day, another lawsuit for the big banks – in this case JPMorgan Chase and the Royal Bank of Scotland – over their mortgage and securitization practices. Only this one comes from the National Credit Union Administration, a federal agency.
The National Credit Union Administration Board, or NCUA, accused the institutions of packaging and selling mortgage bonds with loans that didn’t meet underwriting guidelines. The bonds, sold to federally chartered credit unions, were rated AAA when issued, according to the agency.
A material percentage amount of the loans included in the bonds “were all but certain to become delinquent or default shortly after origination,” the regulator said in two complaints filed in federal court in Kansas City, Kansas. It didn’t specify the amount of money sought.
JPMorgan sold credit unions almost $213 million of mortgage bonds using sale documents that contained untrue statements or lacked important information, according to one complaint. RBS used documents with the same flaws to sell credit unions about $138 million of bonds, the NCUA said in the other complaint.
Essentially, NCUA wants the put back the illegal mortgage backed securities on the banks in question. And they reportedly plan similar lawsuits against a host of other banks shortly. What’s more, the complaint specifically references the Senate Permanent Subcommittee investigation showing malfeasance toward MBS investors by Goldman Sachs.
And that’s not all. In Fulton County, Georgia, homeowners have filed claims with the clerk of court over fake notarizations. Michigan Attorney General Bill Schuette, a Republican, filed subpoenas last week in a criminal probe of the banks over forged documents. This gets added to the nearly dozen ongoing investigations in AG offices across the country, in New York, in Illinois, in Nevada, in Arizona, in Washington, in California, in Connecticut, in Utah. And you have the HUD IG report and the lawsuits under the False Claims Act. And somewhere, private and institutional investors are lurking, seeing all these lawsuits about how the banks don’t have standing to foreclose and wondering what it is they actually own, and whether they should sue to give it back.
This is still in the formative stages. The wheels of justice are still turning, as long as they have an engine.
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It’s gonna be interesting to see how all this gets quashed. The snowball effect is in play here, gathering size and momentum.
Problem is that any solution that follows the …uh… you know … law, will leave every major banking institution completely bankrupt. This, the PTB cannot allow to happen. Of course, the taxpayers will be on the hook for the deficiencies – because every TBTF institution in the country is essentially insolvent.
There were about 90 trillion in derivatives written on about ten trillion in mortgages. That’s six or seven years of our entire GDP. It appears to me that this and the previous administration have cleverly arranged it so that the US taxpayer is eventually liable for all of it.
Maybe that’s what it will take to get us into the streets.
Couple of related items:
Banks tap fund to repay TARP
US program has fewer restrictions; critics call switch another bailout
“Most of the 627 banks that still hold money from the controversial Troubled Asset Relief Program, or TARP, have filed applications to roll the obligations into the government’s new Small Business Lending Fund, according to Treasury officials and the banks.”
LINK.
Bank of America apologizes for mistakenly accusing 5,000 Oregonians of being late on property taxes LINK.
Well, people are being dumped out of their houses and onto the streets, so you’d think the incentive would be there, huh?
Yep looks like doj holder will have to send someone over there to explain how they aren’t suppose to say anything until the wh and 0 have given their ok otherwise they end up like other whistle blowers
Add this one from the GOS’s diarist, Muskegon Critic.
Staring out with the good news here…based on a recent court order by Muskegon County judges, foreclosures in Muskegon County have dropped from about 75 per week to about 2 per week.
Early last month (May 2011) the Michigan Appellate Court ruled that the Mortgage Electronic Registration System (MERS) was a bunch of asshat jerks who needed to get their butts kicked soundly and sent to bed without their billion dollar bonuses.
Also they ruled that MERS could no longer foreclose on peoples’ homes by publishing the foreclosure in the papers. Oh no…not MERS. No More. Now they need to actually show up in court and prove they have the authority to foreclose on a house.
That’s a problem for MERS because they generally can’t. It’s a problem of their own making. Some clever scheme to buy and sell and divvy up mortgages and bank notes to make a lot of extra money by selling air. Wait. No. That’s not quite right…by selling the concept of air.
Muskegon County Judges, however, have taken it a step further. They’re now halting ALL foreclosures from ALL entities by advertisement, requiring everybody actually show up in court and present the bank note. They actually want a foreclosing party to prove they have the right to foreclose. I know, what a drag, right?
http://www.dailykos.com/story/2011/06/19/986873/-Muskegon-Foreclosures-Drop-97-after-Court-Order?via=blog_787740
Yes, but in the pit, the pendulum is still cutting: both on the pump swing and on the dump swing: “swish, swish,” goes the scythe of austerity psychosis.
My big question is, are the wheels of justice going to continue spinning and spinning right up to and thru the point when the statute of limitations has expired? My other question is, when will the PTB realize that the big banks really need to be broken up because, if you read any of these state cases, you get an understanding that they are too large to be effective, that the banks have reached a measure of incompetence that is hard to believe, in addition to the corruption. However, if that bank continues with the same level of ineffectiveness and incompetence, profitability cannot be sustained and there will be further incidences of near bank failures and requests for bailouts in order to “keep essential staff” by giving bonuses big enough to pay the national debt of some countries! Then they’ll tell the taxpayer they can’t afford to pay for schools or police or fire depts. No money left for social security so that granny isn’t living her golden years as a homeless person, no medical care for the indigent no matter how the patient got that way. Let his individual bank account be the judge of his character! Yeah, that’s the Christian way.
I used to be an active Notary, before I retired from a big bank. I don’t think there is any statute of limitation on Notary fraud. Maybe not on many of the other issues, either.
If there is not a valid notarization where required, the loan document was not legitimate from the gitgo. It would not magically become valid merely with the passage of time.
They really need to go after the notaries whenever there is a dispute. Demand the Notary’s log book which the borrower signed, and which lists the borrower’s identification taken at that time.
That’s a show stopper in my mind, unless it was done properly.
BTW, mindful of the culture which spawned this, I’m not surprised by any of the consequences nowadays.
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