Senator Franken wants GMAC investigation!

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Well other politicians are getting into the pressure cooker toward the banks that are defrauding people of their homes.  We are working to get our state's politicians to do anything other than spend money on the problem.  We live in the 2nd largest state for foreclosures and there is no public addressing of the robo-signatures, fraud mortgages, fraud documentation or falsely recorded documents.  Banks lie in court on a daily basis and the numbers are staggering.   Go watch court and see for yourself. 


 Do you know how many courthouses in Phoenix alone deal with this?  How many cases daily?  That is just one major city.   Multiply that by all  cities  in all 50 states. .

See the below letter by  SENATOR FRANKIN.  If more of our political leaders would get involved then we might see some progress.  Sadly,  I do not think it will do anything for those in process other than halt things for a few months.   It seems the leaders are wanting investigations but do  they have the kahunas to return properties to those cheated? 

Today WALSH announced that there will be investigations into 7 banks. I am confused as to why GMAC or Ally is not on that list of 7 institutions being investigated.

Or will they just say fix the paperwork and ignore the UNDERLYING fraud on mortgages not to mention the  violations of Tila/respa laws?   If this is addressed in a meaningful way it might mean the writing off of milllions of fraudulent toxic cases. 

Thanks to the blogs on the right for keeping up with information, Thanks to google for always having links and thanks to new to me http://www.zerohedge.com for bringing to light the letter from Franken. 

Ally Financial Letter 09292010

Mortgage Fraud from the Government Viewpoint: FBI anyone?

Please retweet this blogpost if you find it helpful in learning about government mortgage home-ownership and bank loan modifications


MANY of my friends eyes glaze over as I talk mortgage fruad. It's like a huge, circular, interlocking, labyrinth of information. It's the same way I feel when they talk FOOTBALL.
My friends and relatives might think "What is the big deal?" And I try to explain that they are giving up their homes in many cases because they were targeted and EXPECTED to default. I always think when there is FRAUD "don't give up without swinging the bat."

AS one of my friends have said - "You almost didn't stand a chance, you turned on the TV, they pushed these toxic loans and they approved them". I chime in with the thoughts that THEN they had fraud in the loan, in the process of trying to modify and in the foreclosure process itself. If that doesn't just boil your sense of injustice nothing will. I have friends that have lost homes with 60K to 100K invested as down payment. It isn't always people skipping town, people have job changes, moves, child support changes.

NOW I HAVE the ultimate answer for my friends... the ones STRUGGLING to get modified, or in process of LOSING their home. Many who are walking away saying its not right to not pay, we'll just go quietly. Well one branch of government at least, takes it seriously.

TRY THE F.B.I. oh yes, they have skin in the game. They are investigating actively the mortgage fraud. People are everyday submitting their proofs of fraud to the FBI and they are faithfully compiling information. How LONG DO YOU THINK it will be before a sting operation is started then completed?


Here are a couple of excerpts from their site and hopefully my journalistic license and bold highlights will keep me out of jail:

"The ongoing discovery of the lack of due diligence in historical subprime loans, loan modification re-defaults,⁵ increasing prime fixed-rate loan delinquencies,⁶ and the expected increases over the next three years⁷ in the interest rates on Alternative A-paper (Alt-A)^b and Option Adjustable Rate Mortgage(ARM)^c loans raise the chance for future mortgage defaults. During the next two years, a total of $80 billion of prime and Alt-A loans and a total of $50 billion subprime loans are due to recast.⁸ These factors combine to fuel a mortgage fraud climate rife with opportunity. Consequently, mortgage fraud perpetrators are continuing to take advantage of the opportunities provided in a distressed housing market.

Here is another excerpt:

Mortgage Fraud Defined - Fraud for profit, however, often involves multiple loans and elaborate schemes perpetrated to gain illicit proceeds from property sales. Gross misrepresentations concerning appraisals and loan documents are common in fraud for profit schemes, and participants are frequently paid for their participation. Although there is no centralized reporting mechanism for mortgage fraud complaints or investigations, numerous regulatory, industry, and law enforcement agencies collaborate to share information used to assess the current fraud climate.

Source: FBI Financial Crimes Section, Financial Institution Fraud Unit, Mortgage Fraud: A Guide for Investigators, 2003.

NOW INQUIRING MINDS WOULD LIKE TO KNOW WHY THERE IS NOT REPORTING MECHANISM FOR THE HUGE AMOUNT OF LOAN FRAUD WE ARE SEEING!

The seriousness of the FBI is not in doubt, however, when you see the front page for the FBI mortgage section:


From foreclosure frauds to subprime shenanigans, mortgage fraud is a growing crime threat that is hurting homeowners, businesses, and the national economy. Learn more here about the scope of the problem and our work to combat it.




http://www.fbi.gov/hq/mortgage_fraud.htm