RollingStone: Matt Taibbi: Courts Helping Banks Screw Over Homeowners

[SD Transplant]

Great article on the banks fiasco in FL Courts but not limited. It is a long great piece, but here is what caught my attention:

” For most people, the former bit about homeowners not paying their damn bills is the important part, while the latter, about the sudden and strange inability of the world’s biggest and wealthiest banks to keep proper records, is incidental. Just a little office sloppiness, and who cares? Those deadbeat homeowners still owe the money, right? “They had it coming to them,” is how a bartender at the Jacksonville airport put it to me.

But in reality, it’s the unpaid bills that are incidental and the lost paperwork that matters. It turns out that underneath that little iceberg tip of exposed evidence lies a fraud so gigantic that it literally cannot be contemplated by our leaders, for fear of admitting that our entire financial system is corrupted to its core — with our great banks and even our government coffers backed not by real wealth but by vast landfills of deceptively generated and essentially worthless mortgage-backed assets.

You’ve heard of Too Big to Fail — the foreclosure crisis is Too Big for Fraud. Think of the Bernie Madoff scam, only replicated tens of thousands of times over, infecting every corner of the financial universe. The underlying crime is so pervasive, we simply can’t admit to it — and so we are working feverishly to rubber-stamp the problem away, in sordid little backrooms in cities like Jacksonville, behind doors that shouldn’t be, but often are, closed. ”

Source:
http://www.rollingstone.com/politics/news/17390/232611?RS_show_page=0

[jficquette]

The parties doing the real screwing were the ones that lied on their mortgage application when giving income.

[jficquette]

The parties doing the real screwing were the ones that lied on their mortgage application when giving income.

[jficquette]

The parties doing the real screwing were the ones that lied on their mortgage application when giving income.

[jficquette]

The parties doing the real screwing were the ones that lied on their mortgage application when giving income.

[jficquette]

The parties doing the real screwing were the ones that lied on their mortgage application when giving income.

[Arraya]

Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.

[Arraya]

Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.

[Arraya]

Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.

[Arraya]

Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.

[Arraya]

Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.

[bearishgurl]

[quote=Arraya]Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.[/quote]

Arraya, in many, many instances here, I think the “poor unsuspecting banks” were “tricked” by the “unscrupulous” independent MORTGAGE BROKERS they contracted with to initiate and process applications for them from “immigrants” and “poor people,” who were so ignorant they couldn’t even have filled out a mortgage loan application, let alone figure out how to “fake” their incomes and tax returns :=[

It’s amazing what these “poor” lenders (in firing all their in-house mortgage loan officers and allowing their *new* “independent mortgage brokers” to pad HUD-1’s with multiple points and garbage charges and then offer them generous back-end “yield-spread-premiums” upon closing) did for the US economy!!

This “new business model” was the perfect recipe for FRAUD, based only upon SIZE and UP-FRONT PROFITABILITY of a loan. Sustained longetivity or viability of mortgage loans were never even considered by these “poor unsuspecting banks.”

The current “foreclosure crisis” is due to unfettered GREED at all levels, starting at the TOP.

[bearishgurl]

[quote=Arraya]Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.[/quote]

Arraya, in many, many instances here, I think the “poor unsuspecting banks” were “tricked” by the “unscrupulous” independent MORTGAGE BROKERS they contracted with to initiate and process applications for them from “immigrants” and “poor people,” who were so ignorant they couldn’t even have filled out a mortgage loan application, let alone figure out how to “fake” their incomes and tax returns :=[

It’s amazing what these “poor” lenders (in firing all their in-house mortgage loan officers and allowing their *new* “independent mortgage brokers” to pad HUD-1’s with multiple points and garbage charges and then offer them generous back-end “yield-spread-premiums” upon closing) did for the US economy!!

This “new business model” was the perfect recipe for FRAUD, based only upon SIZE and UP-FRONT PROFITABILITY of a loan. Sustained longetivity or viability of mortgage loans were never even considered by these “poor unsuspecting banks.”

The current “foreclosure crisis” is due to unfettered GREED at all levels, starting at the TOP.

[bearishgurl]

[quote=Arraya]Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.[/quote]

Arraya, in many, many instances here, I think the “poor unsuspecting banks” were “tricked” by the “unscrupulous” independent MORTGAGE BROKERS they contracted with to initiate and process applications for them from “immigrants” and “poor people,” who were so ignorant they couldn’t even have filled out a mortgage loan application, let alone figure out how to “fake” their incomes and tax returns :=[

It’s amazing what these “poor” lenders (in firing all their in-house mortgage loan officers and allowing their *new* “independent mortgage brokers” to pad HUD-1’s with multiple points and garbage charges and then offer them generous back-end “yield-spread-premiums” upon closing) did for the US economy!!

This “new business model” was the perfect recipe for FRAUD, based only upon SIZE and UP-FRONT PROFITABILITY of a loan. Sustained longetivity or viability of mortgage loans were never even considered by these “poor unsuspecting banks.”

The current “foreclosure crisis” is due to unfettered GREED at all levels, starting at the TOP.

[bearishgurl]

[quote=Arraya]Indeed, the poor unsuspecting banks were tricked by unscrupulous immigrants, poor people and their enabling leftist politicians.[/quote]

Arraya, in many, many instances here, I think the “poor unsuspecting banks” were “tricked” by the “unscrupulous” independent MORTGAGE BROKERS they contracted with to initiate and process applications for them from “immigrants” and “poor people,” who were so ignorant they couldn’t even have filled out a mortgage loan application, let alone figure out how to “fake” their incomes and tax returns :=[

It’s amazing what these “poor” lenders (in firing all their in-house mortgage loan officers and allowing their *new* “independent mortgage brokers” to pad HUD-1’s with multiple points and garbage charges and then offer them generous back-end “yield-spread-premiums” upon closing) did for the US economy!!

This “new business model” was the perfect recipe for FRAUD, based only upon SIZE and UP-FRONT PROFITABILITY of a loan. Sustained longetivity or viability of mortgage loans were never even considered by these “poor unsuspecting banks.”

The current “foreclosure crisis” is due to unfettered GREED at all levels, starting at the TOP.

[Author]

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