HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Retired » Retired Forums » 2016 Postmortem (Forum) » TAIBBI: Bernie or no Bern... » Reply #22

Response to kpete (Original post)

Sat Apr 9, 2016, 09:45 PM

22. "wide-ranging foreclosure abuses" -- there's more to the story


Companies like Bank of America, Citi, Wells Fargo and Chase ended up being stuck with an additional $25 billion settlement just for the tawdry document-fudging "robosigning" scheme that helped accelerate the foreclosure crisis.


I am glad Taibbi included this, but there is more to the story than the mortgage fraud and abuses that got so much press.

One aspect that we hear almost nothing about is that fact that the banks that served as securitization trustees for those giant investment trusts refused to engage in the most basic loss mitigation procedures -- procedures that were previously standard practice throughout the mortgage industry. Had they done so, I have no doubt that a countless number of the foreclosures would never had occurred.

I have learned this from personal experience. My partner and were pro se litigants in a case involving Citibank that stretched from 2008 to 2014. It's a long story, but suffice it to say, in the course of the case we became experts of sorts on the unlawful, negligent, and bad faith conduct that permeated the system. (Much of which continues.)

By failing to engage in the most basic loss mitigation steps, the banks displayed a mystifying level of negligence and bad faith. They exhibited absolutely no interest in protecting the interests of the investors. Because they were selling the bonds to each other, their failure is a truly bizarre display of acting against their own interests.

Another thing we learned is the extent to which the state courts enabled the unlawful conduct. From beginning to end in our case, the law was clearly on our side. Nevertheless, we lost in superior court and the appellate division. It was truly mystifying.

Ultimately, the Center for Social Justice at Seton Hall took up the case and petitioned the Supreme Court of NJ on our behalf. Although we lost there too, the fact that the the center took up the case was vindication that we weren't "crazy."

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 38 replies Author Time Post
kpete Apr 2016 OP
Segami Apr 2016 #1
think Apr 2016 #2
thesquanderer Apr 2016 #3
Snotcicles Apr 2016 #17
tokenlib Apr 2016 #4
Yurovsky Apr 2016 #6
vintx Apr 2016 #7
Octafish Apr 2016 #5
Hydra Apr 2016 #8
Octafish Apr 2016 #10
2banon Apr 2016 #13
99Forever Apr 2016 #9
Cheese Sandwich Apr 2016 #24
99Forever Apr 2016 #27
frylock Apr 2016 #38
mmonk Apr 2016 #11
BernieforPres2016 Apr 2016 #12
BernieforPres2016 Apr 2016 #14
2banon Apr 2016 #15
Waiting For Everyman Apr 2016 #16
dawg Apr 2016 #18
Jim Lane Apr 2016 #23
dawg Apr 2016 #25
Jim Lane Apr 2016 #32
rogerashton Apr 2016 #26
Lucinda Apr 2016 #28
Cowpunk Apr 2016 #19
pat_k Apr 2016 #20
WhaTHellsgoingonhere Apr 2016 #21
LineReply "wide-ranging foreclosure abuses" -- there's more to the story
pat_k Apr 2016 #22
Cowpunk Apr 2016 #33
pat_k Apr 2016 #35
dr60omg Apr 2016 #29
Vinca Apr 2016 #30
lumberjack_jeff Apr 2016 #31
Freddie Stubbs Apr 2016 #34
pdsimdars Apr 2016 #36
frylock Apr 2016 #37
Please login to view edit histories.