Occupy Wall Street has planned a march tomorrow from Zuccotti Park to the US Court House Building at Foley Square, specifically in protest of the looming foreclosure fraud settlement between state and federal regulators and big banks. The goal of the march is to “expose the looming cash-for-immunity deal,” where banks are poised to get a broad release from prosecution in exchange for a pittance sum for troubled borrowers, a loan modification promise on which the banks historically have not followed through.
This is from the press release:
President Obama is on the brink of cutting a backroom deal that would give bankers broad immunity for illegally throwing tens of thousands of Americans out of their homes. The Administration is pressuring state attorneys general to abandon an ongoing investigation into the massive “robo-signing” fraud, in exchange for a relatively small payoff by the banks.
Numerous investigations by state and federal authorities have demonstrated that banks used illegal procedures to make tens of thousands of foreclosures over the past decade. Rushing to a settlement before the full extent of the fraud is known would be a grave injustice to those who were illegally foreclosed upon and those still struggling to stay in their homes.
“This is a clear, moral issue that cuts to the core of why we occupy,” said Max Berger, an Occupy Wall Street participant helping to plan the event. “Instead of throwing corrupt bankers in jail, the administration is pushing to give them a get-out-of jail-free card.”
It’s actually worse than all this. As Yves Smith thoroughly documents today, the banks continue to robo-sign. We’ve known this since the results of two media investigations back in July. Immunity in this case is immunity for ongoing crimes. We also know that the banks are still robo-signing because, in Nevada, where the statute has been changed to criminalize the practice, no banks are foreclosing anymore.
The Nevada attorney general, Catherine Cortez Masto, was instumental in getting legislation passed that makes it a crime (a felony) to fine improper paperwork with the courts, subject to 10 years in jail and fines of $10,000 per violation. Note that this legislation did not change the legal requirement for foreclosure; it simply criminalized failure to comply.
What happened when the law became effective? Foreclosures stopped. In other words, no one who had been filing foreclosures was confident that their procedures complied with the law. Moreover, Masto says in this segment today on Dylan Ratigan, “There’s no doubt that there’s robosigning occurring.”
There’s a possibility that the law will change in New Jerey to affirm that only the “established holder” of a mortgage – the party identified in records at the county recording office – has the right to foreclose on the property. Foreclosures will stop in New Jersey then, too. Yves adds that in New York, where attorneys have to certify that they have verified the accuracy of the documents they submit to the court, foreclosures have also slowed to a trickle. Without robo-signing or fabricating documents, the banks simply can’t foreclose.
Occupy Wall Street is right to highlight this, especially when a settlement between most states and the banks could come any day now. As OWS says, “President Obama and the attorneys general have a choice: do they stand with Wall Street, or do they stand with the 99%?” There is no greater example of this circumstance than foreclosure fraud.




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I think “makes it a crime (a felony) to fine improper paperwork” is supposed to be “…FILE improper paperwork…”. I thought Masto’d invented her own immunity policy until I read it a couple of times. Helluva place for a typo.
…and is this the first time there’s been a “press release” from OWS@Zucotti?
I thought the lack of central communication was what was confused the short-bus riders over at FOX.
“There’s a possibility that the law will change in New Jerey to affirm that only the “established holder” of a mortgage – the party identified in records at the county recording office – has the right to foreclose on the property.”
I’m not sure that will stop foreclosures. Here in Illinois, it’s easy to affirm the “established holder” of a mortgage by having one of the local foreclosure mills sign off on an assignment from MERS to whichever bank is foreclosing and file it with the county recorder. Plus some judges are still accepting documents signed by known robo-signer names like Linda Green! Banks can produce those documents in court and some judges are forcing defense attorneys to review them on the spot while refusing to continue the case for discovery. Then they hand the house over to the bank even though the defense attorney is protesting it.
Shorter Obama- The banks did nothing illegal. They just exploited loopholes.
It’s not just robo signing. They are also illegally assigning fees to these loans. This continues. This forces foreclosure. My accounting is all screwed up, they will not give me a history of my payments. This is a respa violation. They are continuing to do all kinds of illegal behavior in servicing these loans! This hasn’t been addressed at ALL!!!
I’m actually curious to see how Obama’s 11th dimensional chess Jedi mind tricks are going to co-opt the legitimate anger of OWS and turn them into harder clapping O-Bots. Even Big Zero can’t be so self-deluded to think OWS and anyone who’s actually thought about their message is going to forget his many betrayals of us 99%’ers and vote for his worthless ass in 2012?
Enjoy what little time you have left in 1600 Pennsylvania Ave, Obama. Come Nov 2012 the nation will be serving you an eviction notice.
President Obama is an idiot. If he started throwing banksters in jail he would win reelection in a landslide.
One doesn’t throw “savvy businessmen” in jail.
Where will the jobs come from? /s
If Big Zero signs this, he is saying “don’t elect me, my job of shilling for the elites is just about wrapped up here.” Then he’ll mind-warp the population with millions of commercials during American Idol, and they will line up and robo-sign for Big Zero again. Such is America, who owns the sheeple owns the country.
Zing!
Sort of like this?
The Banksters are on Wall Street, the center of the movement is nearby Zacotti Park. We need to keep that site open whatever it takes. This is a great on point demonstration to keep people in their homes. If the foreclosures continue rentals will skyrocket.
I bet the wheels are spinning so hard the gears are stripping as they try and figure out how to co-opt this turn of events.
Time for another slogan!!!
That picture is terrifying.
I like it. heh…
Obama’s actions supporting the banksters at the expense (sorry for the pun) of the future and present former homeowners was the last straw for me. I’m mad as hell and I won;t take it any more. I’m going to my county democratic party meeting for the first time in two weeks and I’m gonna raise some hell.
So frustrating.
Can you get the group to discuss the question whether we are a nation of laws? Pro & con. I would love to see the arguements. It looks like this has been Obama’s cause, agenda, since the bank failure before the election; he has certainly stayed on it….So sad.
I am a former “community leader”….been sorta retired for about 16 years. MY goal is to be a precinct chair and then perhaps even a delegsate to the convention.
If I am successful, you will be able to recognize me at the convention. I’l be the mouthy, good looking guy in the TExas delegsation wearing the NASCAR hat being arrested on the floor of the conveniton Tuesday night.
Good for OWS. They are all heroes. As for the continuing robo-signing, etc. maybe we are being too polite. Where exactly are these crimes being committed. What city, what building, what room?
I’ll certainly be watching…;) If you do not mind saying, where in TX are you? So surprised you’re not supporting our GoodHair for Pres…/s
RIght now there are rumors circulating of a police crack-down (again), imminently.
Good article David.
I came across this and wanted to share. It would look good on a poster.
From an article by amymacpherson “The Occupy Movement” A detailed explanation
http://amymacpherson.wordpress.com/2011/10/11/the-occupy-movement-a-detailed-explanation/
Obama won’t sign it because the deal isn’t with the admin, it’s between the banksters and the state Attorneys General. Clever, that. His minions are applying all kinds of pressure on the AG’s to settle but his fingerprints won’t actually be on the document.
There should, no doubt, be losses, perhaps including jail time, for finance people. However, government also has the Welfare of the nation to protect. That will require speeding up what has been a painfully slow process of foreclosures, refinancing and other problems to fix mortgages, fix the MERS problem, punish robo-signers and avoid bankrupting too many banks or people. It’s a difficult task as you can imagine.
Which is more important for the country, more jail time for a few hundred/thousand people or quickly fixing the mortgage problem, so the economy can get back up to speed and employ more people? I think Obama will stick to the latter and let the DoJ figure out the former at it’s own pace.