Add the FBI to the growing list of law enforcement officials probing the subprime mortgage scandal. The New York Times is reporting that the agency is "looking into possible accounting fraud, insider trading or other violations in connection with loans made to borrowers with weak, or subprime, credit." The FBI wouldn't disclose to The Times the names of any of the companies involved but it shouldn't be that hard to guess.
New York Attorney General Andrew Cuomo and attorneys general from in Ohio, Massachusetts, Illinois and Connecticut are also investigating the industry as is the Securities & Exchange Commission. Mortgage fraud is a serious and growing problem that deserves the attention.
You can bet that in an election year some huge settlements and perhaps even indictments are in the works. The Gucci-loafer wearing Wall Street bankers who made millions selling CDOs are no doubt ringing up their lawyers as we speak.
It couldn't happen to a nicer bunch of people.
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Reader Comments (Page 1 of 1)
1-30-2008 @ 1:26PM
Barbara Ann Jackson said...
Despite the many probes into factors of the mortgage crisis, there has been almost no investigation of the most lethal mortgage mess
component: DEBT COLLECTION ABUSE and JUDICIAL COLLUSION. The Feds need to seek the whereabouts of perhaps billions of dollars and
massive amounts of real estate that winds up in the collector attorneys' possession -as well as examine the scores of attorney bankruptcy court frauds.
These Debt Collector Attorneys deliberately file foreclosures naming defunct mortgage companies, or companies which no longer hold the notes; or affix collectors' fees exceeding "Acceleration Clauses." If homeowners sue or "Unfair Debt Collection Practices," collectors make more $$ through protracted litigations. Additionally, some collectors file in Bankruptcy Court falsified motions to "Lift Stay" pleadings for purposes of accomplishing SIMULATED AUCTIONS of real estate properties.
Additionally, some collectors file in Bankruptcy Court falsified motions to "Lift Stay" pleadings for purposes of accomplishing SIMULATED AUCTIONS of real estate properties. Also, as an added
measure to heighten chances of judicial favor, collector attorneys propagate that defaulted property owners are costing their clients a
lot of money, while the true culprit is collectors' fraud and racketeering. Exploiting distressed property owners for purposes of making money from their predicaments and then lying on them to the courts has to be the cruelest exploitation and maligning against people faced with becoming homeless!
Real estate foreclosures are bonanzas of deceptive lending because foreclosures enable PROPERTY FLIPPING, and flipping enables misleading investors concerning housing market profits! Debt collection fraud is the prime method for accomplishing fraudulent flipping. In fact,
because of FRAUDULENT FORECLOSURE PROCEEDINGS, SCORES OF PEOPLE HAVE
NOT LAWFULLY LOST OWNERSHIP OF THEIR PROPERTIES, AND LEGALLY ARE STILL THE OWNERS, but they do not know it! Even worse, some homeowners are being sued under "DEFICIENCY" judgments although the foreclosure itself is null.
In States like Louisiana, because Wells Fargo and Freddie Mac greatly benefit from fraudulent foreclosures ANY representation about $$$
billion dollar losses due to people defaulting on mortgages should be weighed against needless payments of legal fees to law firms which
outmaneuver -and even persecute people who file court proceedings in opposition to fraudulent foreclosures and repossessions.
In August 2005,Freddie Mac evicted Louisiana property owners because Freddie Mac falsely claims to have purchased their property in year
2005, from a mortgage company which has been defunct since year 2002. **See Proof at:
www.lawgrace.org/2008/01/05/united-states-chief-justice-robert%e2%80%99s-aim-to-raise-to-raise-federal-judges-pay-is-revolting-new-orleans-federal-judiciary-call-to-impeach-judge-g-thomas-porteous/ *Also posted on the lawgrace.org site is the "successor in interest"
Affidavit for that defunct mortgage company.
Lastly, for a purported debt of $86,000.00, through use of a non-existent mortgage company, attorneys racked up more than a quarter
of a million dollars in litigation fees. Later, the property was sold to a 3rd party for $37,000.00. Investors got nothing, nothing practical was accomplished by evicting the homeowners, and
neighborhood property values declined.
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Here's a few more links:
*Mortgage Mess, Foreclosure Fraud and Impediments to Justice
http://newsblaze.com/story/20071203130614tsop.nb/newsblaze/TOPSTORY/Top-Stories.
*Comment on the Foreclosure of Judge Reginald Badeaux's Home
http://www.lawgrace.org/2007/12/08/my-december-7-2007-comment-posted-to-the-times-picayune-blog-about-the-news-article-entitled-%e2%80%9cjudge-gets-debt-reprieve-badeaux-has-skipped-mortgage-payments%e2%80%9d-the-foreclosure-of-this-lo/
*Federal Judges' Pay Raise; New Orleans Federal Judiciary Call To Impeach
http://newsblaze.com/story/20080101084831tsop.nb/newsblaze/TOPSTORY/Top-Stories.html
______________________
Barbara Ann Jackson