Foreclosure Prevention Bill Shields Mortgage Lenders From Fraud

[RodISHI]

More of your tax dollars going to banksters. This time they are even going to get protection clauses for their fraud.

A must read article and comments if you are interested in what congress is giving to these banksters.

Foreclosure Prevention Bill Shields Mortgage Lenders From Fraud Inquiring minds are investigating provisions of a foreclosure prevention plan working its way through Congress. The plan throws away more taxpayer money while shielding servicers from misconduct.

Under the new plan, lenders would receive $500 for modifying the second mortgage, plus $250 a year for three years if the loan remains current. The borrower would be eligible for $250 a year for five years to lower their principal balance. The borrower could have the interest rate lowered to 1 percent, depending on the type of loan, with the government sharing the cost of the rate reduction.

Now, lenders will receive $2,500 to refinance a borrower into Hope for Homeowners and $1,000 a year for up to three years as long as the borrower stays current.

"Worse yet, the Safe Harbor Provision goes one step further and shields servicers if they do commit such fraud."

Meanwhile, a coalition of mortgage investors is fighting a provision in a housing bill that would shield lenders from lawsuits. Lenders have said they are unable to change some mortgages because they fear being sued for breaking their contracts with investors who own pools of mortgages. The safe harbor provision was included in the House version of the housing bill without much controversy. But in recent weeks, investors have begun organizing against it, including a coalition that hired lobbying firm Patton Boggs. "

 

[editec]

Damn!

The government ought to be taking over mortgages and cutting the banks out of the loop, entirely.

This gets the toxic assets off the banks, thus stabilizing their cap rates, and it helps the American families at the same time.

The USA ought to have a national REAL ESTATE trust, folks.

A retail bank where average citizens can invest their savings. And THAT BANK should be the ONLY bank which offers FDIC protection.

And that bank ought to be THE bank where citizens come to get low interest mortgages to buy their (only) home which offers TAX advantages for paying interest, too.

That way, as the American pay down their mortgages, they're investing back in AMERICA.

Private banks ought to be limited to commercial loans and the government should NOT be in the business of insuring them from loss.

I believe that we are bailing out the banks because the alternative was to let thousands of them go down thus making it necessary for FDIC to cover all their deposits

 

[driveby]

Damn!

The government ought to be taking over mortgages and cutting the banks out of the loop, entirely.

This gets the toxic assets off the banks, thus stabilizing their cap rates, and it helps the American families at the same time.

The USA ought to have a national REAL ESTATE trust, folks.

A retail bank where average citizens can invest their savings. And THAT BANK should be the ONLY bank which offers FDIC protection.

And that bank ought to be THE bank where citizens come to get low interest mortgages to buy their (only) home which offers TAX advantages for paying interest, too.

That way, as the American pay down their mortgages, they're investing back in AMERICA.

Private banks ought to be limited to commercial loans and the government should NOT be in the business of insuring them from loss.

I believe that we are bailing out the banks because the alternative was to let thousands of them go down thus making it necessary for FDIC to cover all their deposits

I don't totally disagree, but the government does happily accept the FDIC insurance premium that banks have to pay. Now some of the banks that were fiscally responsible and didn't need bailout money get rewarded by having their FDIC premiums QUADUPLED. So you think Wall Street is rigged ? Heh, they ain't got shit on the government.

 

[mash107]

Damn!

The government ought to be taking over mortgages and cutting the banks out of the loop, entirely.

This gets the toxic assets off the banks, thus stabilizing their cap rates, and it helps the American families at the same time.

The USA ought to have a national REAL ESTATE trust, folks.

A retail bank where average citizens can invest their savings. And THAT BANK should be the ONLY bank which offers FDIC protection.

And that bank ought to be THE bank where citizens come to get low interest mortgages to buy their (only) home which offers TAX advantages for paying interest, too.

That way, as the American pay down their mortgages, they're investing back in AMERICA.

Private banks ought to be limited to commercial loans and the government should NOT be in the business of insuring them from loss.

I believe that we are bailing out the banks because the alternative was to let thousands of them go down thus making it necessary for FDIC to cover all their deposits

We have that plan now, with the Federal Reserve, and it's worked out horribly.

 

[editec]

Damn!

The government ought to be taking over mortgages and cutting the banks out of the loop, entirely.

This gets the toxic assets off the banks, thus stabilizing their cap rates, and it helps the American families at the same time.

The USA ought to have a national REAL ESTATE trust, folks.

A retail bank where average citizens can invest their savings. And THAT BANK should be the ONLY bank which offers FDIC protection.

And that bank ought to be THE bank where citizens come to get low interest mortgages to buy their (only) home which offers TAX advantages for paying interest, too.

That way, as the American pay down their mortgages, they're investing back in AMERICA.

Private banks ought to be limited to commercial loans and the government should NOT be in the business of insuring them from loss.

I believe that we are bailing out the banks because the alternative was to let thousands of them go down thus making it necessary for FDIC to cover all their deposits

I don't totally disagree, but the government does happily accept the FDIC insurance premium that banks have to pay. Now some of the banks that were fiscally responsible and didn't need bailout money get rewarded by having their FDIC premiums QUADUPLED. So you think Wall Street is rigged ? Heh, they ain't got shit on the government.

Who do you think RIGS Washington, DB, welfare mothers?

 

[driveby]

Damn!

The government ought to be taking over mortgages and cutting the banks out of the loop, entirely.

This gets the toxic assets off the banks, thus stabilizing their cap rates, and it helps the American families at the same time.

The USA ought to have a national REAL ESTATE trust, folks.

A retail bank where average citizens can invest their savings. And THAT BANK should be the ONLY bank which offers FDIC protection.

And that bank ought to be THE bank where citizens come to get low interest mortgages to buy their (only) home which offers TAX advantages for paying interest, too.

That way, as the American pay down their mortgages, they're investing back in AMERICA.

Private banks ought to be limited to commercial loans and the government should NOT be in the business of insuring them from loss.

I believe that we are bailing out the banks because the alternative was to let thousands of them go down thus making it necessary for FDIC to cover all their deposits

I don't totally disagree, but the government does happily accept the FDIC insurance premium that banks have to pay. Now some of the banks that were fiscally responsible and didn't need bailout money get rewarded by having their FDIC premiums QUADUPLED. So you think Wall Street is rigged ? Heh, they ain't got shit on the government.

Who do you think RIGS Washington, DB, welfare mothers?

Nope, its the politicians that lie to the welfare mothers, convincing the welfare mothers to vote for them ........

 

[RodISHI]

This is one of the dumbest moves yet by congress. Mortgage backed securities should be one of the best and safe investments out there. Instead banks, mortgage servicers and real estate brokers have turned it into one of the worst. The part at the very least that everyone should be screaming about is the "Safe Harbor Provision" they are wanting to give to fraudsters.

Since when did America start believing that cut and paste, or altering of any contract documents was fine and dandy and should come with a safety net for the criminals? It should hold no penalty for the perpetrators of such crimes and the banks that asist in these crimes?

This is one more lead-in to a communism style country where corporate leaders take hold of the control of the masses, the government and the money.

Who is going to want to invest their savings into something when fraud is already prevailing and congress is going to now give the fraudsters a free pass? There is so much fraud out there now these guys have already perpetrated that the feds can't keep up with it all.

Cut and paste and altering of documents is a standard practice in the banking and loan industry.

I provided a few links here but there are hundreds of them if anyone takes the time to look. You have companies that own both the banking industry and the insurance industry. Now they want a free pass to pillage the finances of both borrowers and the investors.

Loan Officer Indicted for $25M Missouri Fraud Scheme

Prosperan Bank - Washington County Bank Forged and altered documents

The attorney general said that compared to 2008, foreclosures in Kansas are up 98 percent.


D.C.-based company took investors for $70M in mortgage scheme, prosecutors say

Lender Says Salesman Altered Loan Data

States order mortgage broker to stop processing loans
"The Mortgage Specialists, saying it violated state and federal laws against unfair and deceptive business practices by knowlingly inflating borrower income and falsifying documents."

Foreclosure Offense: Watch Out For Loan Modification Scams Using Forged Documents Simulating The Letterhead Of Lenders, Government Agencies
March 16, 2009

From the Office of the California Attorney General:


FRAUDULENT LOAN DOCUMENTS CONTINUE TO SURFACE IN CONNECTION WITH FORECLOSURES; “LENDER” ARROGANCE MOVES INTO THE COURTS
January 29, 2009

Recently, FDN has been deluged with a rash of cases where the borrowers were not provided with copies of their executed loan documents following closing and which they were provided with only after repeated demand and after a foreclosure issue arose. A disturbing pattern of conduct is emerging in these cases involving what appears to be the creation of fraudulent or altered loan documents with forged borrower initials and forged borrower signatures.

In several cases from California and other western states, the “income” page of the loan application has been altered, including such forms as closing the loops on a number “3” so that the borrowers’ income which was put down as $3,000.00 per month was changed to $8,000.00 per month. Another situation has occurred where a number “1” placed in front of the income figure so that for example $4,000.00 per month becomes $14,000.00 per month. The borrower’s initials on these altered pages have been forged, and forged signatures have come up on Prepayment Riders, Adjustable Rate Riders, and Option ARM Riders. In more than one case, the box which the borrower marked on the loan application for “fixed rate” was “whited out”, and the “Adjustable” or “ARM” box was checked. All of these alterations were done post-closing without prior knowledge or consent of the borrower, and in situations where the loan was sold as part of the securitization process.