Attorneys General in 40 States Said to Join on Foreclosures

[dixiegrrrrl]

40 states !!!!!!

The game of musical chairs has begun.
WHO will be left owing how much on gazillions of dollars of fraudulent Mortgage bonds?

Attorneys general in about 40 states may announce a joint investigation into foreclosures at the largest banks and mortgage firms, according to a person with direct knowledge of the matter.

State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who declined to be identified because a final agreement hasn’t been reached. The number of states may change because several are still deciding whether to join the investigation, the person said. New Mexico Attorney General Gary King said today in a statement that his state will join a multi-state effort.

Lawyers representing the banks are expecting a more widespread investigation, according to Patrick McManemin, a partner at Patton Boggs LLP, a Washington-based law firm that represents banks, loan servicers and financial institutions. Bank of America Corp., the biggest U.S. lender, today extended a freeze on foreclosures to all 50 states.

http://www.bloomberg.com/news/2010-10-08/attorneys-general-in-40-states-said-to-join-on-foreclosures.html?cmpid=yhoo

And why this rush by everybody to investigate?

Perhaps this:

'This is the biggest fraud in the history of the capital markets'

Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago.

http://voices.washingtonpost.com/ezra-klein/2010/10/this_is_the_biggest_fraud_in_t.html

added on edit,. the most important part:
Class-action lawsuits from every pension fund, mutual fund, SWF, foreign central banks, perhaps our own central bank, ad nauseum against the TBTFs. Everything will be liquidated.

[dkf]

1. Makes one wonder if there will be availability of mortgages if you can't sell them.

Could this be another real estate collapse? Look out below!

[dixiegrrrrl]

2. Precisely.

And, btw....commercial real estate was also securitized the same way, which means THOSE loans have the same deadly flaws.

As were student and car loans, and credit card loans.

Gee, I wonder if all of THOSE have a paper trail flaw?

[DJ13]

4. They can sell them, but they shouldnt slice and dice 'em into 100's of pieces

Why they didnt bundle whole mortgages together in making the original derivatives I'll never understand.

[dixiegrrrrl]

5. I am not sure but...

it seems to me that 10 slices of a Triple AAA rated mortgage would = 10 bonds with good mortgage,
multiplied by god knows how many mortgages were in each bond.
Then as mortgages rose and fell in value, and bonds got paid off, they were re-shuffled into other bundles of bonds.

Of course that presents the now known problem of: if MY mortgage got sold and then sliced and diced into a number of bonds, who owns the mortgage note that I am paying on?
Not to mention who is legally able to foreclose?

[truedelphi]

7. But here is one other question - can it be that all this mayhem

Is very profitable to some people?

In other words, since derivative and Credit Default Swap type stuff is stil going on, can it be that the Upper One Percent Circle of people is betting that the value of homes in the USA will be nominal soon?

It seems to me that no one should be able to make a fortune not only betting against a nation's economy, but also buying up the Congress people and others to help them draft laws and have that come to pass.

And boy that HR 3808 passed by UNANIMOUS consent, so one does get the feeling that nobody elected to office is really looking out for our nation.

[dkf]

9. It seems innocuous enough...recognition of another state's notary.

A notary is only as good as their conscience. If their job is on the line, they may sign anything.

[CanonRay]

14. Did you read the post about the teams of people

using the same notary stamp? So much for the conscience of THAT notary.

[dkf]

16. Exactly!

[dixiegrrrrl]

10. Not sure what you mean by "mayhem"..

The messed up mortgage trail is/was profitable, since apparently pieces of the same mortgage
were in different bonds, thus the requirement that the actual mortgage itself be in each bond trust could not be met.
That is how I understand it from what I have read.
The exposure of all this is of great concern to the banks, because now the legality and tax status of the bond trusts are under scrutiny.
This is going to be very very expensive to straighten out, since the "value" of the http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.htmlbonds is much much greater than the value of the underlying mortgages now.
Reduced housing prices was not the plan. A fall in housing prices is the opposite of the plan.
That is why the housing bubble popping in the first place put the mortgage bonds in doubt,
thus Bernanke was trotted out to soothe everyone by saying
"the sub-prime problem in contained and will not spread" back in 2008.

4closurefraud dot org is a great site which contains the most information about this subject, I highly recommend it.

btw...did i mention that derivatives have also been created from student loans, car loans, credit card debt???
So bankruptcies are playing hell with those, too.

HR3808 was passed by unrecorded voice vote, so I have no idea how unanimous it was.
However, the fact the House and the Senate both passed it and got it to the President's desk very quickly
does say something.
It is worthy of note that the bill was introduced in April, which tells us the banks had reason to worry about the paper mess back then.

You are of course correct that "no one should" be able to buy up Congress.
There is "shoulda-woulda-coulda" and then there is....reality.

[DirkGently]

12. To disguise risk, most likely.

[rocktivity]

3. Wasn't Michael Moore just talking about a national moratorium on foreclosures?

(Gets off shiftless lazy ass and does her own research):
http://www.michaelmoore.com/words/must-read/banks-should-follow-chase-and-declare-moratorium-foreclosures

:headbang:
rocktivity

[1776Forever]

6. Check this post out on author of "The Monster" Foreclosure Mills -

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9280546

[BigBearJohn]

8. Ruh-oh. Why do I get the feeling this will be MONSTER huge?

[randomelement]

11. It's about fucking time!

Warning: what follows is an expletive filled rant that, in my mind, is long overdue (blame it on the caffeine)

To say I’m seething at the moment is an epic understatement. This group action by the attorneys general is loooong overdue, but I suppose “better late than never” is better than the “oh fuck” that has been prevalent for far too long.

In my mind this whole thing needs to be handled the same way the S&L crisis was handled back in the 80’s: set up a resolution trust corporation, seize and sift through what assets these “too big to fail” financial houses have (starting with the past and present managers of Goldman Sachs and JP Morgan) and liquidate every fucking penny these greedy sorry fucks have. Those “bonuses”? Yep, we’re taking those back. Those mansions and fleets of luxury cars, yachts and planes? Oopsie! Looks like we got our priorities a little fucked up - we’re no longer rewarding willful and wanton malfeasance so we’ll be taking those back too. I’d recommend replacing those with a large cardboard box and a tricycle or two (yes, we’ll have the corrugated industry gen up some large boxes for them so the transition won’t be so drastic). But, they shouldn’t have to worry about where they’re going to live just yet. You see, they’ll need to first be frog marched to one of those run of the mill prisons that every other criminal has to go to and spend a little time thinking over their past transgressions (assuming these sorry fucks have a conscience that would cause them to think they’ve transgressed). I want to see monthly updates of those baseball sized calluses that have formed on their fat fucking coddled hands while working on the roads and fields on a daily basis - no “country club” institutions for these fucks - only maximum security, clench the asshole tight abodes will do.

And I don’t want to hear anything about not knowing where the money went. If we have the time and money to track an American born student of mideast descent with GPS and also monitor each and every electronic transaction originated in this country in the name of “freedom”, then we most certainly must know where the money went. If not, well there’s that tried and true method of extracting information that I believe is now legal in this country - waterboarding (kidding here). But I’d bet my last worthless buck these sorry fucks would be spewing account information out their blubbering, too much steak and lobster lips the first second the water drops starting hitting .....

And I also don’t want to hear anything about the repercussions of these derivatives being unknown. Warren Buffett warned about these “financial weapons of mass-destruction” years and years ago - so I don’t want to hear any excuses along the lines of “no one could have anticipated” bullshit so common to these “accountability” fucks. They knew - they knew all along.

In short, make them a fucking example.

And then move on to the group that signed off and certified these “A triple plus, bet the bank and children” financial instruments.

We can make more cardboard boxes .....

[BigBearJohn]

13. Now THAT is a rant I can get behind!

[CanonRay]

15. Why haven't the markets reacted yet?

Does anybody have an handle,or even a theory, on how this is going to affect the recovery? It's like a bottle of soda that's been shaken for hours and now you're taking off the cap. Way too long overdue.