RollingStone: Matt Taibbi: Courts Helping Banks Screw Over Homeowners

[CA renter]

[quote=permabear]You guys can’t be apologizing for the banks, can you? It’s so obvious that fraud has been perpetrated at every single level. There’s evidence that no-doc loans were very much desired by banks explicitly because then there was no paper trail if/when the whole securitization process was found to be a complete sham. A get out of jail free card, if you will.[/quote]

Guys, do realize that BG did not let the banks off the hook at all. Here’s an important quote from BG’s post:

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!!

The way I read it, she’s also blaming the banks when referring to the “poor lenders who fired all their in-house loan officers.”

Also, IMHO, when she refers to greed “at the top” that would include the big-time executives at the banks and large financial firms, and I would add that it includes the government officials and representatives who were supposed to regulate the financial industry but failed miserably. Some say it’s because “they didn’t know or understand what the consequences of their actions would be,” but I think they are totally guilty of intentionally bringing down our financial system for their own benefit. Funny how a guy can go to jail for stealing a car, but when people cause trillions of dollars worth of damage, none of them are brought to justice. How many big-time CEOs and/or regulators have been put in jail and had all of their assets stipped? Oh, that’s right…none of them.

Crime pays, but you’ve got to be rich and powerful in order to avoid prosecution, apparently.

[patb]

[quote=sdrealtor]Here here, Permabear!! It was not just independent mortgage brokers it was the direct banks also. When I took out my HELOC I went to my WF branch bank and they asked me how much I wanted. I said that I wanted the maximum to have as an open line (I knew what was coming and wanted one open just in case there were opportunites I wanted to take advantage of). I asked how much I needed to earn to get it. They calculated the number and just put it in without asking me for any documentation. The banks lending their own money were just as complicite as anyone.[/quote]

The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.

[patb]

[quote=sdrealtor]Here here, Permabear!! It was not just independent mortgage brokers it was the direct banks also. When I took out my HELOC I went to my WF branch bank and they asked me how much I wanted. I said that I wanted the maximum to have as an open line (I knew what was coming and wanted one open just in case there were opportunites I wanted to take advantage of). I asked how much I needed to earn to get it. They calculated the number and just put it in without asking me for any documentation. The banks lending their own money were just as complicite as anyone.[/quote]

The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.

[patb]

[quote=sdrealtor]Here here, Permabear!! It was not just independent mortgage brokers it was the direct banks also. When I took out my HELOC I went to my WF branch bank and they asked me how much I wanted. I said that I wanted the maximum to have as an open line (I knew what was coming and wanted one open just in case there were opportunites I wanted to take advantage of). I asked how much I needed to earn to get it. They calculated the number and just put it in without asking me for any documentation. The banks lending their own money were just as complicite as anyone.[/quote]

The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.

[patb]

[quote=sdrealtor]Here here, Permabear!! It was not just independent mortgage brokers it was the direct banks also. When I took out my HELOC I went to my WF branch bank and they asked me how much I wanted. I said that I wanted the maximum to have as an open line (I knew what was coming and wanted one open just in case there were opportunites I wanted to take advantage of). I asked how much I needed to earn to get it. They calculated the number and just put it in without asking me for any documentation. The banks lending their own money were just as complicite as anyone.[/quote]

The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.

[patb]

[quote=sdrealtor]Here here, Permabear!! It was not just independent mortgage brokers it was the direct banks also. When I took out my HELOC I went to my WF branch bank and they asked me how much I wanted. I said that I wanted the maximum to have as an open line (I knew what was coming and wanted one open just in case there were opportunites I wanted to take advantage of). I asked how much I needed to earn to get it. They calculated the number and just put it in without asking me for any documentation. The banks lending their own money were just as complicite as anyone.[/quote]

The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.

[bearishgurl]

[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.[/quote]

Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.

By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.

[bearishgurl]

[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.[/quote]

Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.

By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.

[bearishgurl]

[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.[/quote]

Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.

By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.

[bearishgurl]

[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.[/quote]

Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.

By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.

[bearishgurl]

[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…

when the REMICs collapsed they cancelled HELOCs like mad.[/quote]

Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.

By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.

[jficquette]

[quote=briansd1]I hear that Jacksonville is the San Diego of Florida. The Navy is there.[/quote]

San Diego with 98 degree days starting in May with the inevitable hurricane waiting for its turn to strike.

[jficquette]

[quote=briansd1]I hear that Jacksonville is the San Diego of Florida. The Navy is there.[/quote]

San Diego with 98 degree days starting in May with the inevitable hurricane waiting for its turn to strike.

[jficquette]

[quote=briansd1]I hear that Jacksonville is the San Diego of Florida. The Navy is there.[/quote]

San Diego with 98 degree days starting in May with the inevitable hurricane waiting for its turn to strike.

[jficquette]

[quote=briansd1]I hear that Jacksonville is the San Diego of Florida. The Navy is there.[/quote]

San Diego with 98 degree days starting in May with the inevitable hurricane waiting for its turn to strike.

[Author]

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