Friday, August 05, 2011

Making Sense of the Bank of America Mortgage Fraud and Negotiations

Susan Brannon
5 August 2011

Shahien Nasiripour reported in the Huffington Post that a side deal is being made during the Bank of America Fraud Negotiations with Federal and state prosecutors.  The article states that “in pursuit of a settlement that would forgive the bank for a broad range of past mortgage abuses in exchange for fines that would finance a significantly expanded relief program for struggling homeowners, according to three people with direct knowledge of the matter.”  The situation outraged me, even though; I have not been affected in the banks fraud disaster that affected millions of American’s leaving a ripple effect on our economy. The act of “forgiveness” for this crime should not even be a thought in any persons mind, it should not be a consideration, and it should not even be in print.

Do we really think that they “would finance a significantly expanded relief program for struggling homeowners?” What about the 6.8 million foreclosed homes and another estimated 7.4 million homes that are estimated to be foreclosed in the near future,? Of which 85% has been processed illegally with forged or fraudulent documents.

What about the new homeless; the middle class homeless? Reports state that there has been a 32% increase in homelessness since the foreclosures leaving 3.5 million Americans homeless either living in the streets or in shelters, 50% of those are children. 
A director of a shelter in California stated that two-thirds of the people that walk in his doors are homeless for the first time. 

There are separate negotiations going on with J.P. Morgan Chase, Bank of America, Wells Fargo, Citigroup, and Ally Financial (formerly known as GMAC.  The fund is “The National Compensation Fund” for bank foreclosure victims to compensate homeowners who may have been illegally foreclosed upon by banks and other lenders.  Would I trust another “fund” for this process?  My answer is clearly no, considering the lack of responsible filing of paperwork and corporate organization that created this mess.

The fund is designed “to help the lenders to avoid lengthy and costly court cases and help stabilize the housing industry by removing the current foreclosure freeze.”  How would that stabilize the housing industry?  Removing the freeze would only create more foreclosures and more money to put into investors pockets, more homeless without a pillow under their head.

Moreover, it’s supposed to help clear up the congestion of court cases “clogging the judicial system in all 50 states and downscale any future lawsuits involving foreclosure fraud.  The current judicial system isn’t set up to properly adjudicate the massive amount of foreclosures that are occurring nationwide.”  The Housing Forum  This seems like the “Fund” is more concerned about reducing the cost for the lenders and the judicial system.  The banks quickly agree to a fund, because it will deter lawsuits from the homeowners.  How did the BP gulf oil spill fund work out, was anything really taken care of, has anyone been helped?

The Washington Post  states that “the people” are having settlement negotiations with “some” states over the foreclosures away from a larger group of state and federal officials.  However, “the people” do not want to be identified because the talks are not public.  This is another way to avoid mass protests on their doorstep and avoid the mainstream media from interfering with the settlement process. In fact, not making the negotiation process public and not including any of the millions of men, women and children in the process is simply telling the citizens of America, that they are not clients but an easy target to scam and make profits from.
Recent Articles:
Tainted Water
Debt Plan Fact Sheet
Our Tax Dollars at Work
Satellite View of Foreclosures
American Struggling Middle Class (Video)
Global Confidence in Economy Collapses 
Crime Against Humanity
Which Countries Have the Most Days Off?

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