Department of Housing and Urban Development's inspector general examined Bank of America. JP Morgan Chase,Wells Fargo, Citigroup,and Ally Financial. The audits accuse the big five of violating the False Claims Act, a Civil War era law created as a way to fight against firms swindling the government.
The swindling banks were found to have been deliberately presenting the Federal Housing Administration with false claims by filing for federal reimbursement on foreclosed homes that sold for less than the outstanding loan balance using crooked and phony... doctored-up documents.
Two of the banks including B of A failed to correct flawed foreclosure practices even after imposing a moratorium that lifted last October.Basically Bank of America "promised" they would stop foreclosures and correct the problems before going ahead. They did neither and lied by claiming the problems had been solved. (big surprise)
What all of this means is the banks haven't cleaned up their shoddy practices despite saying they would. During all of the hoopla and bad press from the foreclosure-gate scandal, which brought national attention to the dirty dealings being done by banks, Mers and mortgage servicers - including a series of Congressional hearings - the banks stood ground and lied through their teeth all the while crying "error and mistake" as a pathetic defense- when in fact they were committing fraud.
Bottom line is when the cost of lying is less than the cost of flying straight..the banksters involved took the sleazy way out. They cared more about profit and ass covering then the preservation of their own reputations and the banking industry as a whole.
Dig a ditch of corruption all the way to China.
Illinois is examining potentially fraudulent court filings by a unit of Lender Processing Services. Nevada and Arizona already launched lawsuits against B of A and California is close behind.
Delaware is going after Mers which is a huge part of the fraud chain - a bank created entity that effectively tried to change the title recording laws that have been in place for hundreds of years with it's own brand of scam.
Along with these tid-bits comes New York's top law enforcer, Eric Schneiderman who wants to conduct a complete investigation into all facets of mortgage banking lending from fraudulent lending to illegal home seizures, and everything crooked in between.
Hopefully with luck Mr.Schneiderman will remain alive and healthy enough to see this task through to completion without encountering an unfortunate accident or caught with a hooker, like Elliot Spitzer.
Since fraud is actionable in both civil and criminal court - every single attorney with a shred of justice left in this country better jump on board and help bring these Wall Street Banking Goliaths to their knees.
Cutting Wall Street banks to size should be a national goal not something to avoid. As long as Wall Street is about 40% of economy, we are all in trouble. Once WS is less than 10%, the country can start to recover seriously, build new industries, invest in the future, fix the infrastructure and, most importantly, get unemployment down to below 4%
With about 90% of the American people wanting to see these sociopathic bankers stripped of their wealth, bound up in chains, dressed in bright orange jump suits and marched off to prison, it seems like anybody with the guts and the ability to do that could pretty much write his or her own ticket on the American political stage.
Someone like Elliot Spitzer - or a Spitzer wanna be.
Why is your school district cutting to the bone? Mortgage fraud.
Why is your city cutting cops from the budget? Mortgage fraud.
Why are your property taxes climbing? Mortgage fraud.
Et cetera, et cetera.....
|Building resistance one bee at a time.|
Default on your charge cards if necessary.
And don't look back.