Home > Foreclosure Settlement > L. Randall Wray: Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

L. Randall Wray: Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

From Huffington Post:

 

No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:

    1. Bankers make NINJA loans, securitize them, and sell on to government GSEs
    1. Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street
    1. GSEs sue bankers and force them to take back bad mortgages
    1. Bankers sell servicing rights for the same bad mortgages back to GSEs, who overpay
    1. GSEs resell servicing rights to companies run by former GSE officials
    1. Bankers slapped on wrist with puny foreclosure settlement in return for government promise it will never sue them for past foreclosure fraud
    1. Government stress test claims banks are healthy
    1. Bankers get sweet deal, counting mortgage mods for best borrowers toward the settlement
    1. HUD report released demonstrating massive foreclosure fraud that reached to highest levels of banks
    1. Vampire Squid Executive Director fires off resignation letter decrying bankster culture
  1. Banksters walk away scott-free as statute of limitations runs out for criminal behavior

 

L. Randall Wray

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Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

Posted: 03/15/2012 10:53 am

No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:

    1. Bankers make NINJA loans, securitize them, and sell on to government GSEs
    1. Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street
    1. GSEs sue bankers and force them to take back bad mortgages
    1. Bankers sell servicing rights for the same bad mortgages back to GSEs, who overpay
    1. GSEs resell servicing rights to companies run by former GSE officials
    1. Bankers slapped on wrist with puny foreclosure settlement in return for government promise it will never sue them for past foreclosure fraud
    1. Government stress test claims banks are healthy
    1. Bankers get sweet deal, counting mortgage mods for best borrowers toward the settlement
    1. HUD report released demonstrating massive foreclosure fraud that reached to highest levels of banks
    1. Vampire Squid Executive Director fires off resignation letter decrying bankster culture
    1. Banksters walk away scott-free as statute of limitations runs out for criminal behavior

This would have to be a fantasy because no one would ever believe it could have been true.

and

A detailed review of 36 of Chase’s foreclosures found that the bank was unable to find any documents related to how much the borrowers owed in 32 of them; there were documents in 4 cases, but docs for 3 of those were wrong. In other words, Chase actually had correct documents needed for foreclosure in only one case out of 36. And these were foreclosures it had successfully completed. In 35 out of 36 cases Chase had simply stolen the home — it had no documents showing what the homeowners supposedly owed. Maybe they owed nothing. We will never know. That is the state of home mortgages in America — thanks to Wall Street and MERS.

 

L. Randall Wray: Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers.

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