The government ought to go after ALL the banks and mortgage lenders. Get the GREEDY bastards!

I'd stay way away from mortgage lenders and financial institutions until more is known, probably in mid-2008.

Who wants to try and catch a falling knife??!

So when the government pressures the lenders to make loans to applicants to meet demographic quotas, and when these applicants default, why can't the lenders go back to the government to be made whole. If the loans would never have been made in the first place, the government would have the lenders in court for discriminition charges and the lenders would be paying fines in class action suits.
Gimme a break!

Right on, John. There are people with good credit and people with poor credit. The proven ability and willingness to pay should be the criteria. The "sub prime issue was a "disaster waiting to happen" and it did! "Duh" That's why we have credit ratings. However, as you point out, the government wants it both ways and disappears when it fails.

subject: FORECLOSURE FRAUD and Impediments to Judicial Remedies (www.lawgrace.org)
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The most critical component of the Nationwide FORECLOSURE Crisis is the problem of FORECLOSURE FRAUD. In almost all instances of foreclosure fraud, MORTGAGE LENDERS become enabled to ILLEGALLY FLIP properties.

In Louisiana, it is HIGHLY COMMON for a DEBT COLLECTOR attorney to file a foreclosure: (i) in the name of a DEFUNCT mortgage company;(ii) in the name of a mortgage company which is NO LONGER holder of the security interest (the promissory note); or (iii) file a foreclosure and AFFIX a 'ransom' amount (the collector’s fee) far exceeding what the promissory note "Acceleration Clause" authorizes.

Despite a property owner's entitlement to CHALLENGE CONTRARY-TO-LAW loss of his / her home, most property owners LACK consumer and legal knowledge; the Court System is REFRACTORY; and there is a SHORTAGE of attorneys with acumen to pursue this area of Consumer Law!

Also, when borrowers like myself sue for “Unfair Debt Collection Practices” and other damages, the collector gets to make more $$ through prolonged litigation, and reaping added billable hourly fees. As such, it is NOT HARD to conceive that $$ which should have been paid to Wall Street INVESTORS went to collectors and to association-in-fact" members of real estate fraud schemes who got a slice of the foreclosure pie.

Judicial Corruption is the underlying factor of New Orleans Apartheid conditions that became exposed due to Hurricane Katrina floods. The court systems as well as the Louisiana division of the U.S. Justice Department FACILITATES real estate and mortgage fraud here!!

As continuing reports of the massive outcomes due to the Mortgage Mess and Foreclosures, EVERY SECTOR OF THE ECONOMY IS AFFECTED BY THE FORECLOSURE CRISIS (businesses are shutting down, people losing jobs, property values decrease, as well as unlawful victimization & cheating of distressed property owners, and so on).

EXAMPLE: In my absence, a debt collector attorney conducted a simulated auction of my residence on May 19, 2005 by use of non-existent mortgagor GE Capital Mortgage Services’ identity. Although GE Capital Mortgage Services ceased to exist on October 25, 2002, documents were created to portray the successful auction bidder as defunct GE Capital, and the property deed was transferred out of my name and registered in the name of GE Capital. Months, later, 3 days before Katrina hit New Orleans, my family and I was evicted by a different attorney on behalf of mortgage giant FREDDIE MAC. According to falsified documents, Freddie is recorded as having purchased my residence from GE Capital in July 2005. To the contrary, as shown on the Louisiana Secretary of State website, GE Capital Mortgage Services became DEFUNCT on October 25, 2002, when it merged into GE Mortgage Services, LLC.! Therefore, it is impossible for Freddie Mac to have lawfully bought my house.

Default on my part, stemming from an abusive marriage, is a fact -and I was trying to negotiate, but the UNREASONABLE RANSOM and other extortion tactics by the debt collector hindered me. (Ransom-type repossessions / foreclosures in New Orleans have caused several pre-Katrina lawsuits by various homeowners.) Yet, illegalities pertaining to real estate fraud, as well as judicial corruption is common in Louisiana --and SEVERE REPRISALS become INFLICTED on people who do not cooperate with property extortion. Everything I have written here is verifiable in court records and transcripts; and overwhelming evidence is posted on my www.lawgrace.org website.