“The robo-signing, the forged signatures are outrageous, but I’m not going to be able to generate a lot of sympathy for people who are, in effect, living in their homes for years, rent-free. When you trace back the losses to lenders - all the way to their final resting place in our financial system, there is a pretty good chance that taxpayers dollars are involved. It’s a mess all the way around.”
The wheels of justice turn slowly sometimes but since we are supposed to be a nation of laws unless we want to go the banana republic route ordinary people have just as much right to use the court system no matter how long it takes.
I have more sympathy for those people who according to the article tried to have their loans modified and then were taken advantage of by this guy.
And I have more sympathy for the people who tried to keep their homes with modifications then I do for the banks that stopped using prudent lending standards and developed these toxic loans then infected the financial system. Who should know better a Banker who has knowledge of what all those lending terms mean or a Borrower?
The Bankers didn’t care they were slicing them up and then selling them to unwary investors as AAA. The Borrower’s were being told they could refinance or sell when they reset by lenders, brokers, the media. It was the thing to do buy before they couldn’t. The loan officer tried to talk my daughter into one of those loans I advised her against it but they pushed hard.
Another reason this is so important is the title. People have a right to have a clean title when they finish paying off their loans. Even if people are buying a foreclosed home they could otherwise end up a victim of the banks who developed and used MERS.
You are right about taxpayer dollars being involved not only from the bail out but the banks are dumping the loans unto the taxpayers through the GSE’s and even the one’s sued for put back’s by the GSE’s because of the banks practices we are only getting a lousy penny on the dollar. The people who were foreclosed on they get to help pay for the banks bad deeds not only with the loss of their homes but their taxes.
Unlimited credit for GSEs seen as backdoor bailout
http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105
Banks accepted and bundled ‘deficient’ loans
Mortgages rejected by due-diligence firm were lumped in, crisis panel says
Lousy penny on the dollar to taxpayers
http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/
Nobody held the banks at gunpoint to make subprime loans.
If they don’t like it that foreclosures are difficult, then they should have more stringent lending standards.
The banks made a bad business decision to invest in these people. Hence, they pay the consequences.
Cutting corners by committing fraud? Bad decision.