Banks are readying a massive PR pushback on the foreclosure fraud crisis

[Robbien]

Bank Disinformation I: PR Machine in Overdrive on Foreclosure Fraud Front
http://www.roubini.com/financemarkets-monitor/259783/bank_disinformation_i__pr_machine_in_overdrive_on_foreclosure_fraud_front

A DC contact warned me last week that the banks were readying a massive pushback on the foreclosure crisis. It went into full swing over the weekend.

Obama, admittedly through his proxy, David Axelrod, threw his weight in behind the banks on Face The Nation:

Q: I guess the first question I would have is does the administration favor some kind of national moratorium on these foreclosures to get this all sorted out?

A: First of all, Bob, it is a serious problem. It’s thrown a lot of uncertainty into the housing market that as you know is already fragile. It’s bad for the housing market and it’s bad for these institutions which is why they’re scrambling now to go back through their documentation for all of this as they should. The president was concerned enough to veto a bill that came to him last Thursday that would have unintentionally made it perhaps easier to make mistakes. so we are concerned. We’re working with these institutions. I’m not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward and where the documentation and paperwork is proper. But we are working closely with these institutions to make sure that they expedite the process of going back and reconstructing these and throwing out those that don’t work.

Q: I mean, I guess people are worried about what do you think the impact this is going to have on an economy that’s pretty shaky right now?

A: Look, our hope is is that this moves rapidly and that this gets unwound very, very quickly and that if they can go back, reconstruct their paperwork and what we’ve stressed to them is that they need to expedite that process and work very, very quickly to get it done. we’re going to continue to push for that.

Yves here. The sense of priorities is astonishing. Axelrod repeatedly stresses the need to get “this” resolved quickly. Notice the refusal to use accurate and honest language: at best, these are improprieties, but the more accurate word is fraud.

The emphasis is NOT on doing things correctly but on the need for haste. . .

And this is simply a variant of the spin the banks have tried since the affidavit mess surfaced: that this is a mere “paperwork” problem. As we commented earlier in the weekend, that’s utter bunk. First, even the supposedly minor manifestation, that of “improper” affidavits, is a fraud on the court. And it hasn’t just been taking place in the 23 judicial foreclosure states; it has also taken place in non-judicial states every time a foreclosure is contested. Second, the banks and their mouthpieces are being disingenuous in implying that they merely need to find the right parties and redo the affidavits. Some states, like South Carolina, are very strict on procedures; they disbar lawyers who screw up residential real estate closings (the logic is if a lawyer can’t handle something that simple, he has no business practicing law). The lawyers involved in providing these bogus affidavits to the court ought to be subject to sanctions; some judges may require cases to be refiled. Not only is this a big operational hassle; there are judges who take the propriety of their court seriously and may not be terribly accommodating when banks try resubmitting affidavits.

much more . . . .

http://www.roubini.com/financemarkets-monitor/259783/bank_disinformation_i__pr_machine_in_overdrive_on_foreclosure_fraud_front


Banks are right now just suspending foreclosures. So far there is no push to correct the problem. Things are just frozen.

So for a while we get pure propaganda from the WH and banksters. Two months from now, the freeze will be over and the fraud business will be back in full swing.

[sabrina 1]

1. Axelrod doesn't seem to understand the magnitude of the problem

if he really thinks it's possible to 'fix things quickly' and to 'just go back and get their paperwork in order'. If they could have done that, it would have been done after the first court ruling against them in a foreclosure fraudulent papers case.

Look, our hope is is that this moves rapidly and that this gets unwound very, very quickly and that if they can go back, reconstruct their paperwork and what we’ve stressed to them is that they need to expedite that process and work very, very quickly to get it done. we’re going to continue to push for that.

In many cases this CANNOT be done. The notes were thrown away. He needs to stop trying to fool the public if that's what he's doing, and if it's just ignorance of what has really gone on, then he should stop talking until he educates himself.

They MUST stop the bleeding from Foreclosures. They may have to pass a law to create new paperwork after a lot of intense research because there IS no legitimate paperwork for who knows how many of these mortgages. That's how bad it is.

He should talk to Elizabeth Warren before they go adding to the problem, allowing the banks to try to do this without oversight. That time is past, it's clear that oversight is badly needed and while they are at it, they need to pass more regulations since these corrupt institutions cannot obviously operate without strict rules and lots of oversight not to mention some serious consequences for what they have done to this country.

[Robbien]

2. Oh, he gets it

And that is the problem.

http://www.ritholtz.com/blog/2010/10/truth-consequences/

Our system of private property has developed due to the rule of law. The ability to demonstrate ownership, pass clear title, resolve disputes has worked for 100s of years. The recent frauds we have seen from law firms, process servers, bank legal departments, even drive through RE courts has put the nation at risk of becoming a lawless banana republic. . .

If you falsified documents that where used in foreclosures, you must be prosecuted for criminal fraud. If your firm’s primary purpose was this illegal activity, it must be put down. This means loss of professional licenses, corporate death penalties and jail time for offender .

For the rule of law to be in force, those people who violate it — previously known as “criminals” — must suffer the painful consequence of their illegal actions.

And the violators are the banksters. The Golden Rule of this country of ours these days is that no harm shall fall on any member of the elite and banksters are sitting on top of that group.

[Demeter]

3. I Don't Tnihk ANY Amount of Propaganda Will Put This Genie Back in the Bottle

Their timing is way too slow and too late.

[Robbien]

4. That is what I thought about BP's Gulf oil spill

One day all the articles were about how much oil was out there and the next day every press outlet repeating the WH/BP propaganda lie of "Where's the Oil, it disappeared. The bugs ate it all up."

The next thing we know, all media goes away leaving behind them Gulf residents standing knee deep in contaminated water.

Crickets chirping is now the only sound.

[sabrina 1]

5. I agree. Lawsuits are being filed all over the country

Class action suits, and a RICO suit in NY State against one the 'law mills'. Something I am personally happy about since the lawyer, who was hired by Wells Fargo to rush these foreclosures, was the one who foreclosed on my friend. She ASKED for documentation and got something for a FEE which was not what she asked for. His name is Steven Baum and his name was in the papers foreclosing on several homes a week. My friend's attorney was shocked at how ignored even his calls.

Florida, NY, Cal. everywhere there are tens of thousands of law suits already filed. I am sure Congress will be asked by the Bankers to pass some kind of law minimizing the damage and of course, Congress will, probably capping the amounts that they have to pay out.

But you are right, this won't go away easily. Millions of people were affected by this. They thought they had no recourse as they tried to battle these 'law mills' alone. But the few who did fight back helped expose the fraud as judges began to see that many times, the banks did not actually own the notes to the mortgages they were foreclosing on.

In the NY State Rico suit, this lawyer was making a fortune, rushing people through the process, never speaking to them, never answering letters or calls. I hope he loses every dime he made. And he is just one of the many who were illegally foreclosing on homeowners.

I think the saddest thing I read throughout the past two years was the information that Realtors were advertising in China and conducting 'tours' of America's fore-closed on homes for wealthy Chinese buyers. So, while Americans were being bullied out of their homes, they had foreign customers lined up to purchase those homes at 'bargain prices' as one Chinese buyer said.

Do they hate this country so much that they were willing to destroy it just for money? I think what they did borders on treason.

[Bluenorthwest]

6. The banks are criminal enterprises which have been allowed

to pick us all to the bone.

[northernlights]

7. if the banks and the administration aren't careful

their attempts at propaganda could prove as successful as Meg Whitman's. They just keep trying to paper it over and then add fuel to the fire... and wonder why the fire doesn't go out.

Seriously. Exactly how stupid and gullible do they think we are? Do they honestly believe we cannot see the abandoned, empty homes when we walk down the street? The missing neighbors? The relatives and friends suddenly crashing in our spare rooms, attics and basements? The trucks, cars, boats, kayaks, tractors, lawn mowers etc. popping up in front yards with "for sale" signs? The people dressed in rags with signs "will work for food" standing in the driveway to Wallie's World?

Do they think we haven't noticed the "for sale" sign in our own front yard, that has stood there for 2 years and brought in exactly one prospect?

Do they think we are so math-challenged we don't notice when our grocery bill for the exact same items we buy week after week suddenly jumps 25%...35%...50%...and we don't wonder which we should choose: stop eating, stop heating our homes, stop paying property taxes or stop paying the mortgage?

Keep trying to paper it over, folks. Just keep it up. And wait for the inferno, because that's where it's headed.