Enjoy the perfect clip for this fiasco!~
Subprime Shakeout-
This famous postgame rant from former Arizona Cardinals coach Denny Green after his team’s epic meltdown on Monday Night Football against the Bears could just as easily apply to my reaction to reading the official terms of the Attorney General Foreclosure Settlement (the “AGFS”), filed today. The nation’s largest banks get off with a relatively small penalty (much of it paid by investors or in “credits” for things the banks should already be doing) in return for releases across a broad spectrum of misconduct that pervades just about every dark corner of mortgage servicing. The categories of servicer misconduct are laid out in detail in the complaint filed today in D.C. Federal Court, and include the following:
- Providing false or misleading information to borrowers,
- Overcharging borrowers and investors for services of dubious value,
- Denying relief to eligible borrowers,
- Foreclosing on borrowers who were pursuing loan mods in good faith,
- Submitting forged or fraudulent documents and making false statements in foreclosure and bankruptcy proceedings
- Losing or destroying promissory notes and deeds of trust,
- Lying to borrowers about the reasons for denying their loan mods,
- Signing affidavits without personal knowledge and under false identities,
- Improperly charging excessive fees related to foreclosures,
- Foreclosing on servicemembers on active duty,
- Making false claims to the government for insurance coverage, and
- Being unorganized, understaffed, and generally slower than molasses to respond to borrowers desperately in need of relief, while servicing fees continue to accrue.
The list goes on and on…
[SUBPRIME SHAKEOUT]
