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CORPORATE CRIME: Mortgage Paperwork Mess: The Next Housing Shock?


Business  (tags: corporate crime, dishonesty, housing crisis, foreclosures, housing market, corruption, investments, ethics, economy, business, corporate, cover-up, usa, politics, society, money )

AWAY AWHI
- 3025 days ago - cbsnews.com
Scott Pelley explains a bizarre aftershock of the U.S. financial collapse: An epidemic of forged and missing mortgage documents.



   

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Comments

Past Member (0)
Monday April 4, 2011, 12:03 am
Tired of being slaves to the Corporatist/Fascist New World Order???
Begging for Freedom??? Stop it!!!
 

Alexandra Rodda (180)
Monday April 4, 2011, 5:12 am
This is outrageous. Add this to the banks causing the economic collapse and the total effect is heinous. Yet the Republicans still want to deregulate the banks again.
 

Kit B (276)
Monday April 4, 2011, 7:49 am

They can't fine the paper work? These jerks are being paid millions of dollars in just the bonus money, and they can't find the needed information to validate ownership? Just who is minding the store? I can remember when wealth was correlated with competence - that was then and certainly is no longer true.
 

Bibi Sarangabataanan (0)
Monday April 4, 2011, 9:43 am
The article does not even touch the most far reaching aspect of all of this. These outfits originated the loans with no money down, no qualification and no income and then sold them off (a few thousand bucks in profit for each one they generated) to Fannie Mae and Freddie MAC (quasi government corporations) who bundled them into Collateral Mortgage Backed Securities (packages of 100 + loans) These Securities known as CMBS were then rated by Standard and Poors and Moodys (bond rating agencies) as A++ meaning that the chance of default was very low. Then Wall Street went out and sold these CMBS securities all over the world ($trillions) and to pension funds and national governments etc. The securities were never A++ to begin with and they defaulted. Now all those pension funds and National governments are hoping to be repaid.

The Homeowner, such as you when we make our monthly payments or sell our home is who is actually paying the principal and interest back to these foreign governments and pension funds. As things are and will remain payments and principal payoffs by homeowners are paid to a servicing company who has no idea, because of the paperwork mess to which pension fund or national government the payment is due. Great right? The homeowner's (borrowers) payment is not even paid to the actual lender because nobody knows who it is. Wall Street is now trying to buy the CMSB back from the pension funds and national governments at discounts so low even when Bank Of America or whoever its forecloses, holds and liquidates the properties that Wall Street will make money as the CMBS pay off. Anything above the CMSB value that is paid to Wall Street will accrue to Bank of America. The homeowner is on the street. The actual lenders (pension funds etc) get back 20 cents on the dollar while Wall Street and Bank America make the money. All in the name of "too big to fail".



 

Joanne M (22)
Monday April 4, 2011, 9:52 am
This is the result of corporate greed. The same greedy companies have been fighting reforms that would address this as well as reforms in the banking and finance. Banks have already started to resell the bundled mortgages like they did before.

We need to go back to the days when bank made a mortgage and then held on to that mortgage. If the bank has to keep the mortgage, it is in their best interest to only make mortgages to those who can afford to pay.
 

William Y (54)
Monday April 4, 2011, 1:01 pm
Is it that they can't find them or did they intentionally "misplace" them?
 

Ray M (0)
Monday April 4, 2011, 1:27 pm
Wall street/bankers need to be prosecuted asap. They're all corporate crooks on same level as Bernie Madoff.
 

Elvira S (82)
Monday April 4, 2011, 1:50 pm
This just blows your mind, if it didn't hurt so many people, I would say: Hilariously insane!
 

Arielle S (313)
Monday April 4, 2011, 1:58 pm
Definition of forgery: "the creation of a false written document or alteration of a genuine one, with the intent to defraud. Forgery consists of filling in blanks on a document...." And is forgery not a crime? And so how many are being charged??? Yeah, that's what I thought....
 

Mary Donnelly (47)
Monday April 4, 2011, 3:13 pm
Thanks Cal--good post.

There usually are administrative problems with products that boom, then bust. Given that sub prime mortgages were so popular so quickly, the backup support probably might not have caught up with its demand; given that those mortgages and the securities based upon them were junk, such back up should have been available.

If financiers were lending mortgage money to customers who were unable/unwilling to repay it, a boom in foreclosures was almost bound to occur, so the lenders should have prepared for it.

Kit

I suspect much of the paperwork could not be found because it was not done, or not done correctly
 

Judy C (91)
Monday April 4, 2011, 3:48 pm
People need to go to prison for this!!! Will they pay somehow? I'm not holding my breath.
 

Audrey L (37)
Monday April 4, 2011, 7:44 pm
What crooks, they knew what they were doing and didn't think it would come back to haunt them. Well it came back, so throw them in jail and take their money. We have to start treating these white collar crimes seriously. These people are the worst criminals and should be treated as such, if the consequences were more harsh maybe these crimes would not be so prevalent.
 

Charlene Rush (2)
Monday April 4, 2011, 8:17 pm
Corporate crime has existed, since the beginning of our days, but never has it reached such hugh proportions. They got away with it for so long, it became a 'natural behavior'.

We the public, sat back and accepted our fate. Thank heavens, finally, we are getting tired of being abused by Big Business.
They may have the money, but we have the NUMBERS and there is _power_ in NUMBERS.

When conservatives are in power, we lose; we all lose.
If you allow corporations to run your country, you are stuck. At least, when government has more power than corporations, you can change politicians. You can't change the people, running Big Business.

With the re-election of President Obama, we will see changes, to make the middle and lower classes come back to life.
President Obama is quite humble, in not proclaiming his many achievements. I didn't realize, myself, all that he has accomplished, until the carefully checked the record.

Go to _FactCheck.org_ and _PolitiFact.com_ and click on the 'Obameter'.
 

Douglas K (134)
Tuesday April 5, 2011, 10:43 am
Are those responsible being prosecuted for their fraud?
 

Ria T (6)
Tuesday April 5, 2011, 1:48 pm
So, a guy in Montana gets 5 years for sharing his medical marijuana with friends and corporations "lose" (!) (I lose papers; I have ADHD.) Corporations lose papers, take out the world economy, evict people from their homes, cause whole neighborhoods to go down, and they get, subsidies...? It's class warfare. We the people lose.
 

Sheila D (28)
Tuesday April 5, 2011, 6:12 pm
All these crooks should be thrown in jail, for many, many years. The banks should be held accountable, and the only thing they understand is money. So making them pay into a fund would be a great idea. I have yet to understand how and why corporations can lose these documents, having no backup to what they've given out, and still come out ahead. It's just not right.
 

jane richmond (10)
Tuesday June 14, 2011, 8:06 am
Take my home . No paperwork required!
 
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