Mortgage Bankers Association Stands Against Successful Foreclosure Prevention Efforts

Discussion in 'Soap Box' started by Bob26003, Jan 1, 2011.

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  1. Bob26003

    Bob26003 Well-Known Member

    So what do all of you think about the massive mortgage fraud that has taken place with MERS and the robo signers etc? This is a good starter on what happened and still is happening: Dude, Where's My Mortgage? How an Obscure Outfit Called MERS Is Subverting Our Entire System of Property Rights
    Banks have scrambled America's system of private property ownership to the point that no one knows who owns what.


    Mortgage Bankers Association Stands Against Successful Foreclosure Prevention Efforts

    In April 2009, the Mortgage Bankers Association — with the help of Congressional Republicans and the rest of the banking industry — successfully lobbied against the adoption of mortgage cram-down legislation, which would have allowed judges to modify mortgages for troubled borrowers in bankruptcy court. That legislation’s defeat, and the MBA’s subsequent celebrations, led Sen. Dick Durbin (D-IL) to say that when it comes to the Senate, the banks, “frankly, own the place.” And with 2010 coming to a close, the MBA is once again standing in opposition to programs aimed at keeping families in their homes — this time by taking aim at what are known as mortgage mediation programs, which push banks to negotiate with borrowers before finalizing a foreclosure:

    John Mechem, a spokesman for the Mortgage Bankers Association, which represents the largest mortgage lenders, said the group is opposed to both mandatory and voluntary mediation programs. He argued that the programs are expensive and are often used by borrowers as a tactic to stall foreclosure.

    As The Wonk Room explained, with foreclosures on pace to top one million this year and federal foreclosure prevention programs falling woefully short of their goals, mediation has been incredibly successful, as the sessions require lenders to actively negotiate, instead of giving borrowers the run-around. As Christopher Brecciano, a Connecticut attorney who represents borrowers, explained, mediation “requires the borrower to sit eye to eye with the bank’s attorney and means there is someone to hold accountable rather than just some service person on the telephone.” Sixty-two percent of those entering Connecticut’s mediation program received a permanent loan modification, while in Nevada seventy-four percent received one.
    Last edited by a moderator: Jan 1, 2011
  2. Bob26003

    Bob26003 Well-Known Member

    Re: Mortgage Bankers Association Stands Against Successful Foreclosure Prevention Eff

    Major lenders reveal massive mortgage fraud
    By Jerry Goldberg
    Published Oct 7, 2010 10:30 PM

    The recent revelations of massive fraud in the processing of foreclosures by major banks demonstrate the urgent necessity for activists to press the demand for an immediate declaration of a two-year moratorium to halt all foreclosures and evictions in the U.S.

    On Sept. 22 it was reported that GMAC announced it was suspending the evictions of homeowners in the 23 states governed by judicial foreclosures. This was followed by similar announcements by JPMorgan Chase and Bank of America.

    The states affected by this suspension of foreclosure activity are Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.

    The basis for these announcements was the uncovering of massive fraud by the banks in the processing of foreclosures. In states covered by judicial foreclosure — where the banks have to take borrowers to court to seize their homes — the lenders were filing motions for summary judgment to speed the process, accompanied by affidavits stating that the signers had personal knowledge that the loans were in fact owned by the bank and were in default.

    During legal depositions in several cases, it was revealed that the signers of the affidavits had, in fact, no personal knowledge of the facts being sworn to. They were working for foreclosure mills.

    A Sept. 22 New York Times article noted that Jeffery Stephens, working on behalf of GMAC (now Ally Bank), was signing 10,000 affidavits a month over the past last five years despite not having reviewed the files to determine whether banks were entitled to enforce their liens.

    The New York Times on Oct. 4 went even further, pointing out that many signatures on the affidavits appeared to be forged and the notarizations improper.

    The foreclosure suspensions by GMAC, JPMorgan Chase and Bank of America were to give them time to clean up their acts. But the revelations of this massive fraud by some of the country’s largest financial institutions are symptomatic of the overall foreclosure crisis devastating the working class.

    What can stop the crisis?

    Virtually every government program announced to help homeowners with modifications is collapsing. The programs are based on the premise that the same banks that will not even take the time to properly carry out foreclosure activity, which is their primary concern, will treat borrowers who seek loan modifications in a fair manner.

    The programs are all based on the borrower calling the lender to request the mandated modification. However, borrowers are stymied by the fact that the lenders either have no one to answer the call, or when they do, the banks routinely deny the modifications in violation of their agreements with the federal government to carry them out.

    For example, on Aug. 20 the New York Times reported the collapse of President Barack Obama’s Making Home Affordable modification program. It said that of the 3 million households that were intended to benefit from the program, only one-sixth had actually had their loans modified. In July, some 96,000 individuals were denied permanent modifications, while only 17,000 were placed into new trial modifications, signaling the program’s demise.

    In July, the state of Michigan announced it had received $184 million from the federal government for the Helping Hardest Hit Homeowners program, a program geared to keeping unemployed workers in their homes. While the funding for this program has increased to $500 million, the program has been a dismal failure thus far, with only 230 homeowners being helped out of the 30,000 that were expected to qualify.

    According to an August report by the Center for Responsible Lending, the home equity wealth lost in the U.S. due to nearby foreclosures for 2009-2012 is projected to be $1.9 trillion. Nine million homes are expected to be lost to foreclosure during the same period.

    The immediate necessity is for the federal government to declare a national two-year moratorium on all forel
    closures and evictions. With the majority of home loans now either owned or backed up by the federal government through Fannie Mae, Freddie Mac or the Federal Housing Authority, President Obama has the authority to declare such a moratorium by executive order.
  3. Mikeintx

    Mikeintx Well-Known Member

    Re: Mortgage Bankers Association Stands Against Successful Foreclosure Prevention Eff

    The foreclosure mills are sketchy. Loan modification definitely isn't an easy process but if you are deligent it is being done right now. A family member went through it last year and a close friend is going through the process now(through Bank of america and I believe chase). The key thing is to be quick with the turn around of documents and being proactive with phone calls. I read through the treasury department's PDF last year when this family member was starting to go through it. It is pretty thorough and I suggest anyone thinking about doing a loan modification reads it and understands the process before beginning.

    And while I am happy it is working out for both of them I do not really understand why our tax dollars need to go to lowering people's interest rate that they agreed upon at signing. Not only that but if you make your payments on time the government pays one thousand dollars towards your home's principle each year for the first five years of the modification. Foreclosures suck, but the housing market needs to find its natural bottom and we have to stop messing with it for that to happen.
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