Can you really call it a loan when the money came from a thief?
livinglies.wordpress.org | February 8, 2017
The banks were not taking risks. They were making risks and profiting from them. Or another way of looking at it is that with their superior knowledge they were neither taking nor making risks; instead they were creating the illusion of risk when the outcome was virtually certain.
Trump’s Treasury pick says his bank didn’t ‘robo-sign.’ These court papers say it did.
thinkprogress.org | February 8, 2017
Before he was picked by President Trump to lead the Treasury Department, Steve Mnuchin ran a bank named OneWest, which foreclosed on tens of thousands of homeowners under his leadership. After his Senate hearing, he was asked specifically about the practice of robo-signing, which entails mortgage officials rapidly signing off on hundreds or thousands of foreclosure documents without verifying that the information is accurate or giving it a thorough review as required by law. Thus a bank can speed up the foreclosure process and, in some cases, get courts to let it take possession of a property with a full trial.
THE BIGGER PICTURE: Foreclosure fight
fltimes.com | February 8, 2017
In 1998, Leanne Labadee bought a three-unit home on Ogden Street in Penn Yan for $75,000. The 50-year-old faithfully paid her mortgage every month, the majority of the time with money orders. She never missed a payment.
RESCISSION: It’s time for another slap on the wrist for state and federal judges
livinglies.wordpress.org | February 6, 2017
50 years ago Congress decided to slap punitive measures on lenders who ignore or attempt to go around (table-funded loans) existing laws on required disclosures --- instead of creating a super agency that would review every loan closing before it could be consummated. So it made the punishment so severe that only the stupidest lenders would attempt to violate Federal law. That worked for a while --- until the era of securitization fail. (Adam Levitin's term for illusion under the cloak of false securitization).
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