HuffPO
I can no longer say that not a single senior executive of one of the major nonprime lenders whose frauds hyper-inflated the housing bubble and caused the Great Recession has been convicted of his frauds. A single senior executive of one of the hundreds of fraudulent nonprime lenders was convicted yesterday, April 19, 2011. A jury found Lee Farkas, Chairman of the Board of Taylor, Bean & Whitaker (TBW), guilty of fraud. TBW was a large mortgage banking firm that made many nonprime loans, but the prosecution does not address the fraudulent nonprime lending.
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Third, note that while a Colonial Bank officer pleaded guilty for assisting these frauds against Colonial Bank, no one has pleaded guilty at Freddie Mac. The critical question is whether TBW actually delivered the key loan documents to Freddie Mac. Did Freddie Mac obtain an enforceable security interest or was it defrauded by TBW? Was Colonial Bank the only victim of the double sale/pledge?
Great article…
With regards to lack of prosecutions – many in law enforcement believe AG Holder is running the clock on 5-year statute of limitations.
Holder should resign. Before joining Obama WH, Holder was partner at Covington Burling, the white shoe law firm that authored legal opinion on validity of MERS.
MERS, of course, was the energizer bunny for control fraud.
Mary,
You hit the nail on the head and what is missing to this piece as well… MERS.
To John McCormick and I vent
I want to go back to the issue of “Ultra Vires” that I was discussing with John McCormick on the open letter to Sheila
Bair and I will post this on a few pages so that no one misses this
A BANK CANNOT LEND ITS CREDIT BUT CAN ONLY LEND THEIR mONEY AND
ALL LOANS OF CREDIT ARE ULTRA VIRES
seems like that should apply to almost every mortgage issued
below two cases I found:
when a contract is once delared ultra vires the fact that it is executed does not validate it, nor can it be ratified, so as to make it a basis of suit or actionmm nor doesthe doctrine of estoppel apply F & PR Richmondd 133 Se 888; 144 SE 501 m 151 Va 195
…Act is ultra vires when corporation is without authority to perform it under any circummstances or for any purpose. By doctrine of ultra vires a contract made by a corporation beyond the scope of its corporate powers is unlawful
Community Fed. S & L v Field 128 F 2nd 705
This is exactly what I vent is speaking about