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HUFFPOST SUPER USER
William50
11:47 AM on 10/18/2010
The word institutions is perhaps wrong in this statement, they are not institutions such as Congress or a University, both of which seem to be in many ways appalled to understand what America needs, they are private, for money holdings that have harmed these United States country and people more then any war including the Civil War!
Instead of institutions to help and grow this great nation, the large banks can best be described as robber Barron's that have been set free of the leash, by both parties that run this nation, and need, will require a new master to control them before they destroy this nation for their own greed!
The American party, sees Uncle Sam on his knees before his masters because the Republicans and Democrats now do their bidding hoping for a meager scrap at election time to continue their job, understand that these wild dogs need a leash to function in society. In fact in 2011 the dogs will spend billions to discredit the American party from speaking the truth that will put you the American citizen again in control of Congress, the White-House and these mad dogs!
We are for the spirit that has built this nation, and like the governments and great leaders of the past understand the need for control on institutions that can harm, no harm the USA threw their greed.
You have the power, trite but true, to control the money men who do not care for America!
01:17 PM on 10/18/2010
"These economic royalists complain that we seek to overthrow the institutions of America. What they really complain of is that we seek to take away their power. Our allegiance to American institutions requires the overthrow of this kind of power. In vain they seek to hide behind the flag and the Constitution. In their blindness they forget what the flag and the Constitution stand for. Now, as always, they stand for democracy, not tyranny; for freedom, not subjection; and against a dictatorship by mob rule and the over-privileged alike."
~ FDR
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HUFFPOST SUPER USER
Passerineblue
Under construction
11:26 AM on 10/18/2010
He Mr. Donovan, another point, this time about HAMP.

Anyone with a modicum of knowledge of the consumer mortgage market and how consumer mortgages are services could have predicted before the program was even implemented that it would be a failure. Who reviewed this program beforehand? Seriously.

You may be shocked to learn that anyone even glancing at this HAMP program would instantly recognize that the incentives for the servicers (the front line) to make this work were woefully inadequate. It was a failure waiting to happen. Believe it or not, servicers will not spend time on workouts unless there's money in it for them and you didn't put enough money in the program to enable them to staff up to deal with the workout program. You know, the people in accounting who have to figure out what's owed and the people who collect (rather than lose) the paper work.

What's more, you know that the FHFA had the authority to penalize these servicers for their scr*w-ups and ineptitude and did NOTHING.
HUFFPOST SUPER USER
Mark A Campbell
11:23 AM on 10/18/2010
"And where foreclosure is not avoidable, having been processed legally and appropriately, banks should help families transition to sustainable housing situations with dignity."

Why? Banks are in the business of lending money--that's what they do. It is the role of people, churches, and charities to help people transition to other housing. I do not understand why people hate banks so much--if you can't pay cash for a home then a bank gets you in where you otherwise wouldn't. But a bank is not your friend or your safety net--they are your business partner, period.

Oh well, at least he is suggesting that the private sector should help and not the government for a change.
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HUFFPOST SUPER USER
Todd Kapner
12:42 PM on 10/18/2010
Business partner? It was banks that came up with negative amoritization loans where to help people buy homes they couldn''t afford. True, no one held a gun to the buyers head and forced them into the bad deal, but the banks were hardly partners in any sense of the word. You enter a partnership based on some level of trust. I trusted the banks to make sure that they were being at least somewhat careful in how much they lent to whom...aka, do these people have a reasonable chance of being able to repay the loans we're discussing. They did not do that. In their failure to uphold reasonable lending standards, they were party to a wildly inflated housing market that is crushing people, even those like myself who bought in the past 6 years and have never missed a payment. I expect the banks to be the professionals, to make sure standards are upheld. In this, they have been utter failures. They were not partners to anyone, they were snake oil salespeople in many many ways.
01:25 PM on 10/18/2010
Nearly 70% pf the riskier subprime mortgage loans went to people who were qualified for the regular prime loans, because the lenders made bigger bonuses by selling the riskier loans - and their bonuses weren't affected by whether or not people defaulted on them either. Why is it that when it comes to cars people think the "lemon law" is perfectly reasonable and expect it to protect them, but then when it comes to predatory lending for something as vital as a home the same people don't think we should have similar protections? We seriously need to bring the word USURY back into our vernacular!
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Mark A Campbell
02:33 PM on 10/18/2010
The banks had no obligation to anyone to be "at least somewhat careful in how much they lent to whom." Their obligation was to loan money according to the terms of the mortgage. This would not be any of our business if the federal government didn't bail them out with our tax dollars. If banks make bad lending decisions, let them pay the price for it, not us.

If you are so convinced banks are "snake oil salespeople," then perhaps you would advocate for people lending to one another without financial institutions?
11:20 AM on 10/18/2010
by kicking millions onto the street we will help those families not kicked onto the street. That is his argument in a nutshell. Love that he talks about how stopping foreclosures will hurt those who own homes. Forget the hurt it will cause those families made homeless.

What really stands out here is while he is busy selling orwellian speech "foreclosure is good for you" he does not discuss how the banks might be guilty of fraud, that everyone should check who owns their note, nope he does not bother to educate the public as to how this fraud was committed.
12:29 PM on 10/18/2010
Everybody has at least heard about the electronic foreclosure fraud by now, and there is a whole new kind of fraud to the tune of tens of Billions PER BANK unveiling itself as we speak!

The Devastating Report On Bank Of America That Everyone Is Talking About:
http://4closurefraud.org/2010/10/17/the-devastating-report-on-bank-of-america-that-everyone-is-talking-about/

But yes, apparently HUD and the administration is more interested in protecting the crooks than they are in helping the homeowners who have been victimized by them!
02:52 PM on 10/18/2010
Thanks for the link. everyone should check it out
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
11:08 AM on 10/18/2010
Mr. Donovan,

I've watched you on C-Span. I thought you had a pretty good grip on what was going on, but the main failure with HAMP was that you left it open-ended. It wasn't mandated. You let banks make up their own rules, and you let banks re-neg on trial modifications.

HAMP didn't address that banks could be simultaneously seeking foreclosure while giving homeowners the false sense that they were paying a trial modification (on time, and terms from the banks) in order to allow them to stay in their homes.
HUFFPOST SUPER USER
Mark A Campbell
11:25 AM on 10/18/2010
HAMP could not be mandated because it would be an unconstitutional impairment of contract. Not that this government cares as you can see from the Chrysler bailout debacle, but banks can fight whereas Chrysler with its hand out could not.
02:41 PM on 10/18/2010
Everyone knows that HAMP was designed to extract every last dime that they can out of homeowners before foreclosure. Giving people a false sense that they are going to be able to stay in their homes as the banksters knew that people would simply save their payments so that they would have some money when seeking rental oppurtunities upon eviction.
12:41 PM on 10/18/2010
As usual, the state legislatures are far ahead of the fed on this one. They recognize that there is no proper oversight of HAMP, and no real guarantee that homeowners will be given the chance they deserve and should have a right to refinance. Here in CA, there is a bill about to be signed that says no homeowner can be foreclosed upon until they have been assessed for modification. Obviously the administration doesn't want to take these simple, common sense measures, and would rather support the fraudsters. I suggest we all put pressure on our state legislatures to do the right thing instead!
11:02 AM on 10/18/2010
Quote...."Bringing together more than 20 federal agencies, 94 US Attorney's Offices and dozens of state and local partners to form the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud, the Task Force is examining this issue and the Attorney General has said publicly that if it finds any wrongdoing the members of the task force will take the appropriate action. The Federal Housing Administration and Federal Housing Finance Agency have launched reviews to make sure servicers are in full compliance with the law. "......aren't these the clowns who either created this mess and should have been watching what was going on?
So we are now going to put these same clowns to work to fix it?
12:41 PM on 10/18/2010
All this "force" has been put to task since last November, and while the press reports THOUSANDS of cases of fraud, this task force hasn't come up with even ONE indictment! If I were to be kind, I would say they are woefully behind the giant mess that is already there; so why in the hell are they allowing even MORE fraud to pile up in the meantime???
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HUFFPOST SUPER USER
salmonellae
10:53 AM on 10/18/2010
" That is why the Obama Administration has a comprehensive review of the situation underway and will respond with the full force of the law where problems are found."

I LAUGHED OUT LOUD when I read this!!! Since when has the "full force of the law" applied to anyone but the common man? The Banksters will get away, once again, with their open and notorious illegal and immoral activities because DC is bought and paid for and run by these very crooked Banksters!
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lrobb
Gold standard = four paws and a tail
10:47 AM on 10/18/2010
What would help families a great deal more than allowing them to stay in a home they cannot afford is to mandate that banks accept a deed-in-lieu of foreclosure from the homeowner for any home where the borrower only has one mortgage and no other liens or judgments of record. Foreclosure should only be used when other interests might have a claim on the property.

The second part of the equation is to regulate Equifax, Experian and Trans Union and all other credit reporting agencies to insure that any foreclosure or deed-in-lieu which is not proven to be a result of fraud on the part of the borrower will not have a negative effect on their credit score.

This will allow borrowers who involuntarily lose their homes as a result interest rates being reset higher, houses being underwater, job loss, divorce or health problems will be able to start over quickly.

Events over which a borrower has little or no control should not be considered when calculating a credit score, and there may be affordable houses out there they could buy except for the mega-hit to their credit.
HUFFPOST SUPER USER
Mark A Campbell
11:30 AM on 10/18/2010
1. HAMP could not be mandated because it would be an unconstitutional impairment of contract. Not that this government cares as you can see from the Chrysler bailout debacle, but banks can fight whereas Chrysler with its hand out could not.

2. Equifax, Experian and Trans Union are private entities that provide their own service (credit reporting). The government has no authority to tell them how or what they can report, other than what is deemed confidential information by statute.

3. "Events over which a borrower has little or no control should not be considered when calculating a credit score...." Absolutely right, but that's not our call to make. The credit reporting companies simply report and lenders have a right to know everything relevant and make their lending decisions appropriately. Even when something is beyond someone's control (like the death of a spouse), it remains relevant because someone's credit reflects their ability to pay.

Mandates simply aren't the answer because they are a heavy-handed, and often unconstitutional, solution to problems requiring surgical-smooth touch.
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lrobb
Gold standard = four paws and a tail
11:48 AM on 10/18/2010
1. Agreed. HAMP is most certainly not mandated, but there is a guideline in place.

2. The government does not have the ability to tell a credit reporting agency what to report, but it does have the ability, through Fannie Mae, Freddie Mac, HUD and the Veternas Administration to issue guidelines that state those entities will not purchase any loan from a bank which considers a foreclosure or deed-in-lieu as a negative hit to a borrower's credit score.

3. The ability to repay a loan should always be the bank's first consideration for granting one. The death of a spouse or loss of a job, however, does not usually negatively affect a borrower's ability to repay a smaller loan on a less expensive property. Making the individual ineligible for anything but a loan at usurious rates for the next ten years is tatamount to denying them the right to buy a home for no good reason. It also prolongs the housing crisis. The whole idea is to get these foreclosed homes sold as soon as possible to stop the market slide.
10:10 AM on 10/18/2010
What you really find shameful, Mr. Donovan, is that the sale of these foreclosures has been held up. Not that it erroneously sends preyed-upon families out to the street with their belongings. What I find shameful is that the Obama administration has thrown the American people under the bus, despite your lock-step protestations, in every which way due to spinelessness and an ego-stroking myth of bipartisanship with Republican thugs. The coming Republican/Tea party tsunami will not affect you and other elites very much, but it will be devastating to the middle class and the poor.
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Mark A Campbell
11:33 AM on 10/18/2010
Why is your anger directed at him? While many foreclosures have been processed with faulty paperwork, the reality is very few of them would not have been valid with the proper paperwork. Of course the ends do not justify the means, but there are no "damages," in the legal sense of the word when people would have lost their homes anyway. Why are you hating Republicans and Tea Partiers here also? What do they have to do with Donovan's position? The bill expediting foreclosure that was just vetoed by the president was passed by the Democratic-controlled Congress. Do you have any animosity for them?
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HUFFPOST SUPER USER
Todd Kapner
12:36 PM on 10/18/2010
The anger here is due to people who are losing their homes to the banks, who share a huge part of the blame in the housing mess due to their complete abandonment of lending standard in the mid 2000's. But, you're right, the people losing their homes are almost entirely people who have defaulted on their loans.

The anger is misplaced, but only slightly. The real anger is that the banks made these reckless loans in the first place. The next level is that they took government bailout money and have done almost nothing with it to mitigate the damage. What we're seeing is a boiling over of ill will that has been growing for a few years now.
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12:45 PM on 10/18/2010
Sorry but I have to step in here-- you seriously believe the "reality is" there is ONLY some minor faulty paperwork at concern here? There were high crimes and a plethora of criminal acts going back decades involving the Banksters/real estate agents/brokers/notaries/rating agency employees/gov't officials/CEO's...everyone involved in creating the bubble, shorting the market, betting a/g their own investors, lying to prop owners to coerce them into signing documents that would ultimately work against them; lying about re-fi terms ie setting up processing departments that deposited refi payments 1-3 days late so the interest kicked in and tripled; lying about ARM's, targeting "underserviced communities" NOT w/ a sound mortgage but a You Know What mortgage; the whole complex scheme from the Best & Brightest was designed to FAIL to insure WALL ST waltzed off into the sunset w/ BILLIONS; real estate agents/brokers walked away having done the criminal dirty work w/ MILLIONS, rating agency employees are STILL NOT IN JAIL.Countrywide, et al hired used car salesman & converted them overnight in a feeding frenzy violating millions of American's rights; Chris Dodd et al were complicit recv'g FRIENDS OF ANGELO deals.Blatant real estate fraud continued under the FBI's/US Attorneys watch; and you want us to believe this is just the result of some innocent mistakes that would have been justified to begin with? It was & still is a PONZI scheme. BTW: this mess includes commercial properties as well.
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10:03 AM on 10/18/2010
"Banks need to provide more help, more people, more resources to those families facing a crisis long before they ever get to a foreclosure -- so more families can keep their homes. And where foreclosure is not avoidable, having been processed legally and appropriately, banks should help families transition to sustainable housing situations with dignity."

So now the banks are supposed to be social service agencies? That sounds absurd, naive and utterly ridiculous to me. Banks are lending institutions, nothing more and nothing less.
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lrobb
Gold standard = four paws and a tail
10:56 AM on 10/18/2010
Banks are expected to obey laws just as are people. Whether or not banks like it, borrowers who are eligible under HAMP must have their mortgage modified. Banks calculate compliance costs into the fees they charge for loans across the board. That means all borrowers may pay slightly higher interest rates as a result of these modifications. That is just good business practice.

The problem is that banks are not complying. Up-staffing to actually move borrowers through the process expeditiously would not be cheap, but it certainly would not put the banks in the red.

No one expects a bank to be a social service agency. That would be why there is now a growing financial services industry, both for-profit and non-profit, geared to helping people avoid foreclosure and/or re-negotiate their mortgages.
HUFFPOST SUPER USER
Mark A Campbell
11:35 AM on 10/18/2010
"Whether or not banks like it, borrowers who are eligible under HAMP must have their mortgage modified."

NO, not true. That would be an unconstitutional impairment of contract. When the bank lent people money the terms were clear and conspicuous. HAMP modifies those terms ex post facto (after the fact) and violates the terms of the contract. Banks do NOT have to modify the terms if they do not want to. Now, the federal government can dangle a carrot if it wants to try and motivate them, but that's it. Oh, and it can vilify them in the public square, too. Our government seems to be doing a lot of that lately.
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mr d
11:25 AM on 10/18/2010
So are loan sharks !
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HUFFPOST SUPER USER
ratcityreprobate
10:03 AM on 10/18/2010
"The message all these institutions are sending is the same: banks must follow the law -- and those that haven't should immediately fix what is wrong." Wrong Shaun, the message must be "and those that haven't should immediately be criminally prosecuted." Protecting the criminals will not help the economy.
09:59 AM on 10/18/2010
Banks and Wall St. brought down the country not the tax payers! No one in DC ever came up with a plan to Bail Out the Tax payers. It's always a plan to bail out the Big Banks/Wall St. and let the tax payers move into tents if they have to or under a bridge. Washington turned their backs on Americans who were the victims but gave the Corp. perps on Wall St. a big fat check!

Right now this story is the headline on HP. It is so disgusting what these Banks get away with!

http://www.huffingtonpost.com/2010/10/18/the-new-tax-man-big-banks_n_766169.html#comments

I'm a Dem and I am appalled that these Banks and Wall St. are getting wealthier every day with help from Washington and yet they seek to foreclose on homeowners because those same Banks used risky financial instruments to get rich and destroyed the economy in the process!

How does Washington explain this to Americans? Actions speak louder than all the empty blah,blah,blah from Washington.
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10:18 AM on 10/18/2010
The reason people are in foreclosure is that they didn't pay their mortgages. And not just one time or two times, but several times. What part of that do you not get? When you default on any contract there are penalties.
10:50 AM on 10/18/2010
http://www.nytimes.com/2010/10/18/business/18advantage.html?pagewanted=1&hp

Banks have become predators they are not your friendly neighborhood Banker anymore! They are now financial bullies who's only goal is to profit at all cost and the cost is usually not to them but it comes at a high price to their own customers which is absurd.

It's not all black and white and anyone who thinks that these banks are on the side of the consumer and will do everything it takes to foreclose LEGALLY and is kidding themselves.
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12:51 PM on 10/18/2010
Thank you for adding the above link to your comment -- everyone should read your suggested link. I've been documenting the egregious acts for over 5 yrs, and following this crisis for a over a decade... we have seen first hand the human toll in the trenches... we've heard every horror story first hand-- Super User Mark A. Cambell might want to also spend some time speaking w/ millions of families to find out EXACTLY what took place along the way. It is far more complicated, deceitful and criminal than most readers can get their head around.
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Caniculus
Anything about that seem unusual to you?
09:42 AM on 10/18/2010
Why is anyone in their right mind paying their mortgage?

The fact is that most mortgages are in such legal limbo that they're not worth the paper they're written on. Many mortgages from the boom years have been sold, re-sold, packaged, re-packaged -- sliced and diced into investment packages so slick and complex that nobody even knows or can track who has a legal contract with whom. Apparently, even courts can't figure out who owns these mortgages. In other words, many (perhaps most) homeowners may be sending off their monthly mortgage checks to banks that have no legal claim to the mortgage.

This sudden "voluntary" moratorium on foreclosures has less to do with the millions of families in foreclosure than it does all those many more millions of families who are still financially healthy enough to pay their mortgages. If the banks can't prove they own the mortgage of the homes they are foreclosing on, doesn't that mean they also can't prove they own the mortgage you are paying every month?

And what happens when homeowners demand a legal review to determine who owns the mortgage on their homes? Imagine millions of cases flooding the courts, and millions refusing to pay until it's sorted out. If this happens, we'll have a crisis in the mortgage industry several orders of magnitude more chaotic than what is happening now.
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10:04 AM on 10/18/2010
"Why is anyone in their right mind paying their mortgage?"

Two reasons:

1. We signed a contract promising to do so.

2. We realize we don't get to live anywhere for free.
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
11:02 AM on 10/18/2010
You mean, you still have jobs to pay your mortgage.

Who the heck would WANT to lose their home.

The rhetoric of the right-wing/tea party media is attempting to brainwash America.
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11:03 AM on 10/18/2010
These people are being kicked out of their homes according to the law, they are not getting anything for free, however the banks are getting trillions of taxdollars for free. Where is your outrage over that? While you are certainly intitled to your opinion it doesnt mean yours is worthwhile.
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01:03 PM on 10/18/2010
You hit the nail on the head:
1. Judges do not want the burden,back up or responsibility of hearing these cases,& are quick to dismiss them, mostly in favour of banks --rep'd by UBER exp legal teams. Because our Senate/Gov't acted in tandem w/ Wall St, they stuck it to the Judges to clean up the mess (many whom are investors in real estate & blatantly pro-bank in the courtrm leaving the little guy on Main St utterly screwed again).To further complicate the UNWINDING of these fiascos, Banksters LIE AGAIN in court, via their legal teams, to retain control over the prop at the expense of the prop owner. Often home owners are instructed by bank divisions to stop paying mortgages as "the only way we can help you" while they simultaneously move 2 foreclose/evict. Sick and wrong.
2. Most home owners DON'T want to stop paying their mortgage EVEN when they see its "not worth the paper it was written on." They are instructed to do so.
3. Homeowners have 2 bear enormous legal costs, over many years 2 fight these banks, causing addit'l financial/emotional stress in their homes. It's all part of the BANKSTERS great wear them down program, that operates on the FEAR & INTIMIDATION principal.
NOT TO MENTION, the banks actually having a saying on the inside: Low Hanging Fruit -- meaning all the homeowners who give up/walk away...which they in turn use as propaganda.
nothingchanges
too soon old, too late smart
09:39 AM on 10/18/2010
Idle curiosity.

Why are big banks considered absolutely necessary to our economy (too big to fail)? While working peoples lives and livelihoods are not?

Many of those whose reckless behaviors were contributing factors to the financial meltdown are receiving millions in bonuses, while everyday working people are losing their jobs, their homes, their entire life savings over a situation they did not create, but are paying the price for.

After reading an article in HP about a lawyer that was jailed for not reciting the pledge of allegiance in the court room, I have reluctantly come to the conclusion that I can no longer (in good faith) recite it as well. In today's America that last line just won't come, it rings hollow.
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Mark A Campbell
11:48 AM on 10/18/2010
I share your frustration sometimes. However, I pledge allegiance to the nation founded in 1776 and modified in 1787 and thereafter. Of course, since Wilson instituted the income tax to fund an ever-expanding federal government, FDR gave us the New Deal, and Johnson gave us the "Great Society," I have questioned what our nation is becoming. Nevertheless, we are still free people who can reverse the trend and get back to our founding principles. That is why I pledge allegiance, but I certainly understand from where you are coming.

The government that is big enough to provide everything is big enough to take everything away (and give it to someone else even wealthier than you). Wealth redistribution in either direction is wrong and unAmerican.
09:22 AM on 10/18/2010
Homes are being foreclosed due to non payment by the borrower. The question is not whether to foreclose bur who should foreclose.

The sooner the foreclosure process can work - the sooner the housing market can return to normal
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10:06 AM on 10/18/2010
Thanks for showing me that at least one other person can still think clearly.
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
03:24 PM on 10/18/2010
Homes are being foreclosed on ILLEGALLY.

That should give EVERY American pause. Do you think Financial Institutions should be ABOVE THE LAW?