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"Wells Fargo & Company is paying $24 million to end an investigation by eight states into whether lenders acquired by the bank made risky mortgages to consumers without disclosing their perils.
The agreement includes no admission of wrongdoing by Wells Fargo."
"Wells Fargo & Company is paying $24 million to end an investigation by eight states into whether lenders acquired by the bank made risky mortgages to consumers without disclosing their perils.
The agreement includes no admission of wrongdoing by Wells Fargo."
Yep. Many banks involved in this mess, as well as the GSEs. Fannie Mae even had a special program set up with Countrywide to make loans based on 'nontraditional credit.'
Quote:
Underwriting Standards
Countrywide tends to follow the most flexible underwriting criteria permitted under GSE and FHA guidelines. Because Fannie Mae and Freddie Mac tend to give their best lenders access to the most flexible underwriting criteria, Countrywide benefits from its status as one of the largest originators of mortgage loans and one of the largest participants in the GSE programs. When necessary—in cases where applicants have no established credit history, for example—Countrywide uses nontraditional credit, a practice now accepted by the GSEs.
The GSEs then proceeded to falsely claim the loans were prime when they securitized them and sold them off to investors such as 401k and pension funds, and foreign investors. Origins of an American Kleptocracy | zero hedge
The level of fraud is colossal... trillions of dollars worth. And make no mistake, those at the highest levels of our financial system, the Federal Reserve, and the U.S. Government knew about it. Remember Sherman telling us the original panicked bailout was going to foreign investors to make them whole?
And then once elected, instead of taking steps to clean up the mess, Obama names one of those at the very heart of the scam as Treasury Secretary where he immediately proceeds to try to continue to hide the scam from the American public.
Quote:
President-elect Barack Obama has selected New York Federal Reserve Bank President Timothy F. Geithner as Treasury secretary, handing the post to a primary architect of the Bush administration's response to the financial crisis, according to Democratic and industry officials yesterday.
As long as i can remember back when i did real estate. There were so many bad loans given out even at that time, some were conisdred risky. But still yet, the damn banks went ahead and approved these high risk loans. To me the dumb ones, are the people who signed these loans, you know what it is that you can afford, and what you cannot afford. High credit risk couples were getting loans, i knew back then, there were so many shady dealings going on. But you cannot stop them. When a couple that filed bankruptcy got a loan, that astonishes you. There were a lot of bad loans given out, but in part also, those who sign on that dotted line, are also partly responsible.
Informed, if you remember from our previous conversations, I'm no defender of Larry the Fat Guy, Tiny Tim or any of the Rubinistas.
Those cats had a hand in creating the mess, so even though, in theory, they probably have the insider knowledge to pull us out of this mess, they haven't demonstrated the will.
Our systems are in dire need of reform, inadequate paradigms have to be replaced, a purging and/or retraining of personnel is in order, and our press has to very vigilante, skeptical, critical and in your face, if we are to get through this in one piece.
Informed, if you remember from our previous conversations, I'm no defender of Larry the Fat Guy, Tiny Tim or any of the Rubinistas.
Those cats had a hand in creating the mess, so even though, in theory, they probably have the insider knowledge to pull us out of this mess, they haven't demonstrated the will.
Exactly. So why did Obama keep them in powerful positions?
Quote:
Our systems are in dire need of reform, inadequate paradigms have to be replaced, a purging and/or retraining of personnel is in order, and our press has to very vigilante, skeptical, critical and in your face, if we are to get through this in one piece.
The MSM has dropped the ball on this, big time! IMHO, they're complicit in maintaining the scam. I wouldn't look to the MSM to champion any sort of reform. They've been too busy doing all they could to make Obama look good, 24/7. This scam gives MANY politicians on both sides a big black eye, and I'm not so sure the MSM is willing to throw Obama under the bus along with all the others. They'd have to admit they've been played for fools along with the majority of the American public. I doubt they'll go along with that.
The corruption is so deep and so wide that I don't think it can be fixed.
Just look at how quick and quietly HR3808 made it to Obama's desk for signature.
Not a peep from the MSM. Nothing from Congress..not a peep, not a mention.
Not a single voting record from either the House or the Senate.
That's some clout the banks have to get that bill to Obama's desk.
Thanks to the independents (Zero Hedge, Financial Sense as some examples) this came out in the open and got traction.
I think if it hadn't Obama would have signed that bill into law.
Exactly. So why did Obama keep them in powerful positions?
The MSM has dropped the ball on this, big time! IMHO, they're complicit in maintaining the scam. I wouldn't look to the MSM to champion any sort of reform. They've been too busy doing all they could to make Obama look good, 24/7. This scam gives MANY politicians on both sides a big black eye, and I'm not so sure the MSM is willing to throw Obama under the bus along with all the others. They'd have to admit they've been played for fools along with the majority of the American public. I doubt they'll go along with that.
Well I'm just glad he put Liz Warren in an influential position and Dummers is gone.
And you have to remember the media now includes blogs such as those that appear on sites like HuffPo and many of them were not too happy about this.
Quote:
Originally Posted by HappyTexan
The corruption is so deep and so wide that I don't think it can be fixed.
Just look at how quick and quietly HR3808 made it to Obama's desk for signature.
Not a peep from the MSM. Nothing from Congress..not a peep, not a mention.
Not a single voting record from either the House or the Senate.
That's some clout the banks have to get that bill to Obama's desk.
Thanks to the independents (Zero Hedge, Financial Sense as some examples) this came out in the open and got traction.
I think if it hadn't Obama would have signed that bill into law.
Jefferson knew the power of the press in staving of tyranny.
The real problem tho is that the cases are likely to never endup in copurt . That is because that would require that mnay buyers be part of the fraud if they signed false disclosures. Plus the fact that it would tek years and be very hard to prove especially on RICO laws.Your more likely to see individual civil suits IMO.On Fanneie ands freddie its even les likely except aginst indivdauls with in it brought by the feds but there isn't much appitite for that really.I can remmeber when the TARP was proposed;it was sold to congress as having the second 350 billion to go to solving the housing crisis.not 50 billion; which is chump change considering the problem.
Aside from the fraudulent loans...the banks are foreclosing on millions of homes without even looking at the modification paperwork. I work for a good hearted mortgage broker who insists on helping people put together their paperwork after hours (at no charge). I cant tell you how many times we have to send the same paperwork to the banks that claim they never received it. These poor people are strung along for a year or two submitting the same papers over and over while each bank representative tells them something different. It's so stressful for them. So far we haven't let anyone get foreclosed on but for many that may have tried doing this on their own, the end result was devastating. We've also had a few clients come to the office after they were scammed for two or three thousand by some sleazy mortgage people. The entire housing industry seems to be corrupt.
And you have to remember the media now includes blogs such as those that appear on sites like HuffPo and many of them were not too happy about this.
There's still too much political posturing getting in the way of real calls for reform on many of those sites.
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