No. of Recommendations: 37
It would be good if the folks who are demanding that people are arrested and sent to prison ... have one significant charge or scenario based in reality of which "these people" should be charged and convicted.

Well, the robo-signing is a perfect case in point. Tens of thousands of mortgages were robosigned, where "an official" of the bank (usually some low level grunt in a back room) signed that he had personally inspected and vetted the foreclosure notice, compared it against assessment, declared that the homeowner is in default, declared that the bank actually owns the mortgage, and more. If you've ever bought a house, you know there is a ton of paperwork involved in each one.

And we have testimentary and documentary evidence that signers were handling hundreds of these every day, which is obviously an impossibility. It cannot be, for simple common sense tells you that a clerk cannot process hundreds of court-bound documents in a single day, every day for weeks and months, and that dozens of such clerks in the same office could not be doing so without the knowledge and approval of their superiors. We have the testimony of people saying they were elevated to "Vice President" status for the job, yet received no commensurate pay or reward, and have since been jettisoned as the scandal came out.

This would not seem to be a difficult case to bring to court - and yet it has not happened. Why? Because the regulators have allowed the banks to skip with a tiny fractional monetary penalty - less than they achieved by their illegal actions.

These banks defrauded homeowners out of their legal rights. They defrauded the court by submitting perjured documents. They defrauded the Congress by breaking the laws that Congress wrote to cover these specific situations. And they defrauded the public - again and again - by their flagrant conspiracy to continue the practice for months, if not years, and across many more than just one bank.

Is that clear enough for you? Or should I go into the false and misleading promises made to homeowners about how they wouldn't have to worry about mortgage interest rate resets, about how reverse-mortgages could actually lose them their homes, about collusion and rate rigging (Libor and other), or about the issuance of insurance without any reserves to pay off in case of claims (or is that legal, too?)
 
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement