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Will the settlement money be enough?
Will all those affected by abusive foreclosure practices get enough money to bounce back?
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Back to the numbers on this expected settlement with banks over bad foreclosures.
$26 billion is quite a figure, but it may not seem so big when you break it down.
Under the plan, about a million people will owe less on their mortgage. Beyond that, three-quarters of a million people who already lost their house will eventually get a check for about $2,000.
We checked and that does cover moving expenses, kinda, sort of. According to some online cost-of-moving calculators, two grand might just cover the cost of moving a tiny condo across my town in the East.
Moving a three-bedroom house from, say, New Jersey to Wichita costs about four times the settlement money.
The mortgage mess that people are in is going to take years to recover from, even past the settlement money that was awarded to the homeowners. The recession started in late 2007 and the deal happened in 2012 so that's five years of damage beyond the initial problems which adds on to the individual's problems.
We are hearing all media talking about the mortgage fraud settlement now that the settlement seems imminent and they are using all the government sponsored spin words they have been told to use. Sadly, even my lifelong NPR has succumbed to the pressures of de-funding by Congress to towing the government line. Make no mistake, this settlement is all about taxpayer money because the fraud that sent a trillion and more into the pockets of bankers and lawyers and is now forgiven through government 'settlement' will now come from the taxpayer. The robo-signing fraud has left the real estate titling system in shambles....it will now be the taxpayers who pay to sort out who has title to homes at what point. Homeowners buying during this sub-prime fraud may not have clear title to their homes and risk future lawsuits challenging ownership....DID YOU HEAR THAT IN THE NEWS COVERAGE? ANYWHERE? The assignment of the phrase 'robo-signing' to this settlement is propaganda in its highest form and is used ubiquitously by all press. The robo-signing fraud is the smallest part of this deal. The majority of the fraud in this settlement is the 'origination' and 'servicing' fraud that has been forgiven and protected against future private lawsuits. Again, more than a trillion in fraudulent transactions by bankers and lawyers will escape further scrutiny. This was the 'origination and settlement' fraud deal and it leaves taxpayers on the hook for the hundreds of billions in sub-prime loan mortgages passed off to the taxpayers through AIG and Freddie and Fannie. Most of these loans will go to foreclosure and will now be the responsibility of the taxpayer. TRILLIONS OF DOLLARS MOVED FROM THE MIDDLE/LOWER CLASS IN FRAUD AND THIS SETTLEMENT KEEPS IT THERE AND HAS THE TAXPAYER HOLDING FUTURE LIABILITY.
This mortgage fraud is the gift that keeps on giving to the rich. The settlement keeps bank stock from falling, indeed you will see it rise sharply soon. This settlement includes refinancing and pay-down of mortgage principle that will see most of the designated funds go to mortgage owners of $400,000 - 700,000 dollar homes.....IS THAT YOU? NO, IT IS THE UPPER-MIDDLE-CLASS. THE MIDDLE/LOWER CLASS WILL GET ABOUT $1,800 OR THREE MONTHS OF FREE GROCERIES. AFTER ALL, THEY WERE ONLY THE ONES DEFRAUDED AND RUINED, THE UPPER-MIDDLE CLASS WERE OF COURSE INCONVENIENCED BY THE BUBBLE AND UNDERWATER LOANS. This settlement sets the stage for the next mortgage bubble/fraud.....foreclosure bundling and private sale to financial institutions making these homes into rental property....THINK POTTERSVILLE IN 'IT'S A WONDERFUL LIFE.....THESE GOONS HAVE KILLED JIMMY STEWART'S SAVINGS AND LOAN!
Maryland Attorney General Gansler and Maryland Governor O'Malley who supports the settlement say this:
1) What fraud? I don't see much fraud in origination and servicing (Obama says this too). I asked Gansler about the 50 states attorney general that went to the Federal Reserve in 2005 telling them that there was a massive fraud openly operating in the mortgage origination and servicing sector of home financing. Gansler says' I didn't know that'. You see the depths of what we are dealing?
2) I will investigate the 'securitization' fraud and that will bring money, says Gansler (and by support O'Malley and Obama). Securitization is the area entailing most of the SEC settlements already conducted and a settlement reached that mostly includes.....you guessed it, no further investigation and prosecution. GANSLER IS RIGHT ON TOP OF THE FRAUD THAT HAS NO FUTURE....PLENTY OF EVIDENCE....PLENTY OF CRIME....BUT SETTLEMENT PROTECTED.
3) 85% of the money will go to homeowners with the rest hitting the state's general fund. For those people wondering why Congress increased the eligibility of Federal Housing Protection from its original mission of low income housing limits of $100,000 - 300,000 to a startling $400,000 - 700,000 in 2010, now you know why. Think about it. The majority of people with underwater homes who have been able to keep their credit in tack in this economy live in wealthy states like California, New York , and Maryland. California and New York held out longer because they have the most that fall into the $400,000 - 700,00 range. THE PEOPLE THAT WILL GET MOST OF THE MONEY FROM THIS SETTLEMENT ARE.....YOU GUESSED IT....THE UPPER-MIDDLE CLASS. THE MIDDLE/LOWER CLASS WILL GET THREE MONTHS OF FREE GROCERIES.
4) Those people in foreclosure and victims of sub-prime loan fraud were mostly taking on more house than they could afford and giving false information....they don't deserve more than the 'moving' costs they are receiving in this settlement says Gansler.....$1,800 is enough for them. NO, THAT IS NOT TRUE, THAT IS PROPAGANDA. IT WAS THE FRAUD THAT CREATED THE HOME PRICING BUBBLE MAKING ORDINARY HOME PRICES GREATLY INFLATED.....PEOPLE WERE BUYING HOMES THEY SHOULD HAVE BEEN ABLE TO AFFORD HAD FRAUD NOT GONE WILD. THEY ARE THE ONES WHO SHOULD BE MADE WHOLE. The next class of foreclosed victims are those lured into home equity loans to improve or upgrade, many of these being elderly homeowners with a lot of equity in their homes.....A LOT OF EQUITY IN THEIR HOMES....ELDERLY NEEDING HOME IMPROVEMENTS.....NOT SOPHISTICATED ENOUGH TO KNOW THAT THERE WAS A MASSIVE FRAUD THAT WOULD BRING DOWN THE ENTIRE ECONOMY, SO THINKING THEY WOULD HAVE TIME TO PAY THOSE LOANS........OBAMA AND GANSLER CALL THESE PEOPLE 'IRRESPONSIBLE' AND UNWORTHY OF THESE SETTLEMENT FUNDS.
It is truly despicable. It moves our country from the group of 'RULE OF LAW' nations because every aspect of this process is suspect and criminal. It preys upon the poor and minority groups. It co-opts our media and all consumer/public interest groups who were left in the dark throughout this process disallowing any meaningful public debate.
Here are snippets:
NO SNIPPETS NEEDED.....WE ALL KNOW AND HEAR THE FACTS.
