When I was serving in the 82nd Airborne in Fort Bragg, NC, I prosecuted a Staff Sergeant for theft and fraud. The Staff Sergeant created multiple fake identities to redirect tens of thousands of dollars from the Army into personal bank accounts. He was convicted, and sentenced to jail time. He also had to pay back the money he had stolen.
That's the way the system works. When a thief is caught stealing, that thief must make his victims whole again. Of course, that ideal can be unfeasible. Sometimes the property is irreplaceable or the damage too extensive to undo. Even in those cases, or perhaps especially in those cases, it is the prosecutors job to ensure that justice be done to the fullest extent possible. The criminal must be held accountable, and the victim must be fairly compensated.
That is why I am outraged by recent accounts of a settlement between state Attorneys General, in cooperation with the Justice Department, and the banks accused of perpetrating one of the largest frauds in the history of our country. While the exact details have yet to be finalized, one thing seems certain -- this will be a fabulous deal for the banks.
After causing billions or even trillions in damages, this deal would demand little from those responsible. No jail time. Extended immunity from future prosecutions, essentially ending further investigations. And a $25 billion fine, possibly less than a penny for every dollar they stole from American homeowners.
The American people deserve better. We deserve a thorough investigation into the fraudulent, abusive lending and foreclosure practices of these banks. We deserve a settlement that takes a meaningful step toward rehabilitating the housing market. We deserve a good faith effort on behalf of the banks to make their victims, the American people, whole again. As it stands, the proposed settlement does none of these things. We must do better. We shouldn't stand for less.
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The problem is the burden is still on the Homeowner. That burden has to shift. There have been 15 million foreclosures, C'mon, it's impossible, you have to be an idiot not to realize something is going on that benefits whomever is foreclosing. That's where the burden of proof has to shift.
Someone else must also be asking: why is it so impossible to negotiate with the Banks, the House remains empty, or is torn down, or sold for pennies on the dollar. What gives? The Homeowner is begging for it, the children will all be misplaced, the shelter will cost more? What's the answer??
Sift through the Bank papers and find out. The burden of proof cannot be on the ones who have been left without confidence and resources and dreams.
It is past time for appointment of an independent prosecutor to investigate these crimes, government corruption and obstruction of justice.
America DEMANDS it law be enforced -- and the guilty to prison.
Don't be afraid to trace your Loan backwards: If you are doing a Modification, the FNMA number, if there is one, is your old Servicing Account from the Trust. More Lawyers are coming on Board, ask for help, the town of Berkley CA should be an inspiration
No way! Not unless you give us time to buy or refinance, so we can get bailed out too.
We didn't buy more house than we could afford, didn't buy at obviously inflated prices, and didn't refinance. If anybody deserves a windfall let it be the people who did the right thing. At the very least, give us time to go into debt so we can get in on the deal.
The banks know they have broken the law, otherwise they wouldn't settling for $20 Billion. They are afraid what else is going to come out if there a real investigation.
Expecting justice is noble and I fully support axing the settlement, but guilt and shame will not influence Washington.
Other states need to drop out of the talks and join California and Deleware in refusing to participate in this farce.
Only a public pressure campaign can turn the tide. A few blue state politicians still in the talks should be targeted aggressively and grilled about why they are so meek at every public appearance.
Two more states dropping out could get the ball rolling.
Not liking the outcome of a business transaction is not proof certain that a crime occurred.
I simply think it would be so much more useful to the nation if the public discourse emphasized using the legal system before imposing penalties.
Most of this crisis, however, is about greed and incompetence. Neither is or should be illegal. The correct course would have been to let the banks fail. We didn't, now people feel "entitled" to some kind of mob retribution.
Country Wide and others had overvalued homes by an average of 32% with their inhouse Property Appraisers. They could be proscuted by showing the inhouse appraisers received bonuses for their overvalued appraisals. But then you have to look at some of the loans where buyers accepted those values and were willing to fiance 95% or higher on these homes instaly going underwater. The Buyer has to know there is no way a homes value jumped $60,000 in only 2 years.
When people keep taking money out of their house to buy things I can't fill sorry for them or when they bought a house they could not pay for I can fill sorry for them.
I watched all the new houses being build and could not understand how people were paying what they were asking for them. I could tell these houses were not worth what they were asking and if you were dumb enough to buy one I can't fill sorry for you.
Why should people that did not smart things be rewarded and people like me not be rewarded for doing it right.