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Create A BlogPunishing the Banks and Those Who Abetted Them |
Posted at Keepin' it real by George Mantor
Oct. 20, 2009
Over the past few weeks, I have written a number of articles demonstrating how Wall Street and the Banks illegally stripped Americans of their prosperity and converted it to their obscene bonuses.
And, that they have also been engaging in the theft of people’s homes through unchallenged but unlawful foreclosures, liquidating the asset, and keeping the money for themselves, even though their money was repaid when the security was sold.
There is an age old, cynical joke in the financial services industry, “My objective is to take your net worth and turn it in to my commissions.”
Only, it turns out to be not a joke but a business plan. Some things never change.
Debt Securitization is so complicated that even the people doing this cannot explain it so people can understand it. I don’t mean the schmucks they duped, I mean people who are bona fide experts on money and finance.
Take Warren Buffett. He’s supposed to know a little about money and finance, and has a pretty good track record of making responsible decisions with other people’s money. Right?
“Similarly, even experienced investors and analysts encounter major problems in analyzing the financial condition of firms that are heavily involved with derivatives contracts. When Charlie and I finish reading the long footnotes detailing the derivatives activities of major banks, the only thing we understand is that we don’t understand how much risk the institution is running.” Berkshire Hathaway Annual Report 2002
Now, we understand that it was complicated for a reason….fraud.
In response to that series of articles, I have been inundated with email seeking more specific information. Most, in one way or another, seemed to be addressing the question of what their rights are regarding foreclosure, and seeking clarity on the ramifications of the MERS situation. Many want to know how to determine if they are in a MERS pool and what do if they are.
The volume of email has become too great, and so I will try to answer those questions here.
First, I have seen little to convince me that loan modifications or any government directed response will be a viable solution. They offer little hope to those who need them most. If you have no job, you don’t qualify.
It’s a band-aid on the San Andreas Fault.
Last week, Treasury announced that half a million homeowners had enrolled in three-month trial loan modifications. The key words here are “had enrolled in.”
Foreclosure filings are on a pace to hit about 3.5 million this year, up from more than 2.3 million last year, according to a Thursday report by RealtyTrac.
Those that have enrolled are getting the run around. Note this from an Associated Press report…“Government officials can't say how many people have been turned down because of a typo, lost fax or an oversight by a poorly trained bank employee. But the Treasury Department acknowledges that far too many applicants have wrongly been rejected.”
The banks are doing it deliberately. They are at a huge financial disincentive, and the banks wouldn’t be the bonus paying banks if they didn’t seize this golden opportunity.
Consider this observation by Kevin Stein, associate director of the California Reinvestment Coalition in San Francisco. "Most important, there are no consequences to the banks for failure to do what they have promised to do."
Here’s what everyone is missing; the banks have no intention of modifying these loans and, in most cases, lack the legal authority to tinker with someone else’s investment.
Remember, they sold the note and got their money back. Why would they settle for a couple of thousand dollars from the government when they can foreclose on houses, resell them and bank hundreds of thousands in profit and, by reselling them, they keep filling their securitization pools?
According to the Government Accountability Office, as of last month, the government had provided some $1 million to banks in investor subsidies and incentive payments through its Home Affordable Modification Program. That wouldn’t even be a respectable bonus for an entry level data wonk.
Second, it now appears that as many as sixty million mortgages might be bullet proof to foreclosure. Raising the question of why these borrowers would continue making their mortgage payments if they were not legally obligated? Would you?
Considering the collusion involved in the loss of middle class prosperity and the accompanying loss of jobs and future prospects, many people who would never have considered defaulting on an obligation are facing the toughest choices of their lives. The institutions we trusted took $14.2 trillion of Americans’ net worth and then, shamelessly, tried to blame it on us.
But, now the truth is unfolding and more and more people want to know if there is any way to get back their share or to punish those responsible.
Even more of a slap in the face is the realization that we will have to pay even higher taxes for bailing out the institutions that did this, continue to do it, and continue to give themselves staggering bonuses.
Obviously, our elected officials haven’t the will to stop it, and so, the only way things will change is when we all ban together and hit them where it hurts--the pocket book.
Sure, we talk revolution, but what do we do? Toss a few tea bags at them? They are laughing at us, and counting on us to be splintered and powerless.
The one thing they need to keep doing what they are doing is our money.
So, here’s what we can do.
Join your local Credit Union and close your bank accounts.
Credit unions offer pretty much the same menu of financial services available at banks, but without the attitude. Instead of being a pawn in their scheme, you are a member. No obscene bonuses or profits going to the boys at the top.
It’s perfectly legal, only marginally inconvenient to move your accounts, and would send a clear message to those who hi-jacked our future that we aren’t stupid and we aren’t going to take it anymore.
This alone, if enough people participated, would bring most banks to their knees in a few weeks, maybe less. Once people realized what was happening, everyone would want to get their money out and there really would be a “run on the banks.”
If you ever really wanted to “stick it to the Man”, this would do it.
Barter
Consider opportunities to barter rather than circulate money. Apparently, the banks have figured out how to make money just on its movement. There are web sites that match people with different products or services, so whatever you have or can do has a ready market, and it is a great way to build your business and use any excess capacity.
Want to kick it up a notch and become a full-fledged Fino-warrior?
Stop paying your student loan.
They can’t repossess your education. There may be consequences so how much you want to do will depend on your situation and your mindset, but imagine if everyone stopped making their mortgage payment, car payment, credit cards and other loan payments to banks. What could they possibly do about it?
Foreclosure Relief
For those who are facing foreclosure, you have real skin in the game, and you need to assess your situation to determine if you have grounds to challenge and win. For those who have already lost their homes, many of you have standing to get them back.
Do you have a MERS loan? (See 60 Million Mortgages May Have Fatal Flaws.)
This will require a visit to your County Recorders Office to see if MERS is recorded on your deed. Depending on where you live, this information may be available on line. If your loan has been assigned through MERS, they may have separated the note and the trust deed, or not be able to produce the note at all.
In a judicial foreclosure state, such as Florida or Illinois, they will be suing you. During the discovery process, you will demand to see the original note, not a copy.
In a non judicial foreclosure state, like California, you will have to sue to stop the foreclosure. Either way, I strongly suggest that you retain counsel to assist you in determining your legal position and establishing a strategy.
Are there RESPA and/or TILA violations in your loan documents?
Loan paperwork is pretty sloppy and banks are greedy. In all likelihood, your loan will contain one or more violations of the Real Estate Settlement Procedures Act or Truth In Lending Act.
You will need a legitimate Forensic Loan Audit to determine the existence of these violations and their potential legal remedies which may include rescission of the contract and damages.
In order to find competent legal representation experienced in foreclosure litigation or a bona fide forensic auditor, see this excellent web site: http://livinglies.wordpress.com/
Our politicians aren’t going to help us. The banks and Wall Street haven’t changed a thing and continue to create bonuses with accounting tricks.
If we want a different future, it is up to us to force the change. Sure, these actions will overwhelmingly benefit the middle class, but let us not forget that it is upon their backs that the cost of this ongoing fraud will be born.
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1. RE: Punishing the Banks and Those Who Abetted Them
Thanks for the wealth of info. Need to digest all your writings. What a web has been woven. I knew there was something evil here, just couldn't grasp this reality. wow!! shock & awe!!! We've been had!!
I need to have a conversation with God, clear my mind, then I'll get back to see what's new & what to do.