NYT: Obama's regulators to let banks off easy for massive foreclosure fraud

[brentspeak]

http://www.nytimes.com/2013/01/06/business/bank-settlement-may-leave-tiny-slices-of-a-smaller-pie.html?_r=0

Fair Game
Surprise, Surprise: The Banks Win
By GRETCHEN MORGENSON
Published: January 5, 2013

IF you were hoping that things might be different in 2013 — you know, that bankers would be held responsible for bad behavior or that the government might actually assist troubled homeowners — you can forget it. A settlement reportedly in the works with big banks will soon end a review into foreclosure abuses, and it means more of the same: no accountability for financial institutions and little help for borrowers.

Last week, The New York Times reported that regulators were close to settling with 14 banks whose foreclosure practices had ridden roughshod over borrowers and the rule of law. Although the deal has not been made official and its terms are as yet unknown, the initial report said borrowers who had lost their homes because of improprieties would receive a total of $3.75 billion in cash. An additional $6.25 billion would be put toward principal reduction for homeowners in distress.

Some back-of-the-envelope arithmetic on this deal is your first clue that it is another gift to the banks. It’s not clear which borrowers will receive what money, but divvying up $3.75 billion among millions of people doesn’t amount to much per person. If, say, half of the 4.4 million borrowers were subject to foreclosure abuses, they would each receive less than $2,000, on average. If 10 percent of the 4.4 million were harmed, each would get roughly $8,500...
This is a far cry from the possible penalties outlined last year by the federal regulators requiring these reviews. For instance, regulators said that if a bank had foreclosed while a borrower was making payments under a loan modification, it might have to pay $15,000 and rescind the foreclosure. And if it couldn’t be rescinded because the house had been sold, the bank could have had to pay the borrower $125,000 and any accrued equity.

“We think if the reviews were done right, the payouts would have been significantly higher than they appear to be under this settlement,” said Alys Cohen, staff attorney at the National Consumer Law Center. “The regulators will have abdicated their responsibility if the banks end up getting off the hook easily and cheaply.”

Final confirmation that earlier reports of Obama/Geithner-brokered deals to let the banks get away with murder were true after all.

[Angry Dragon]

1. They deserve Prison and fines

[MotherPetrie]

2. Well, of course, gotta keep that revolving door well-oiled

[MannyGoldstein]

3. I'm shocked!

Well, not really.

[amandabeech]

10. I'm shocked, shocked! n/t

[sakabatou]

22. Your winnings, sir.

[amandabeech]

23. I can't remember the next line!!!!! Argh!!! n/t

[sakabatou]

24. "Oh, thank you very much."

[amandabeech]

29. And thank you for the clip! n/t

[Riley18]

4. My local paper has a full page of new Foreclosures

listed for this week - and they are only doing 4 days of Foreclosures. I just spent the past couple of days emptying our house out, and expect to see it in paper soon. I tried the modification route, but it was too high an amount of money for my income. The bank did not get anywhere near the 31% of my income. I gave them $8,000 before coming to my senses. It is hard to lose, but the banks are determined and hold all the cards.

[No Compromise]

5. Please don't give up and Don't leave your house!

Marcy Kaptor: Facing Forclosure-Don't leave your house- Squat

http://www.kaptur.house.gov/index.php?option=com_content&task=view&id=355&Itemid=1

Call local media and tell them your story.

Blame it on Obama if you have to, right wing media will cover it.

This is unacceptable.

[Riley18]

14. Thanks for your kind concern, but the bank

finally offered a "modification" after we fought for over 3 years. We even went to 2 different all day affairs which were complete torture in order to get a modification. Once we got the modification, we knew it was a bad deal, but we paid it for our kids basically. Unfortunately, it was just such a horrible "deal" that we had to make the choice to live our lives away from the whole horrible experience. If we could have sacrificed in order to pay the mod, in 40 years we would have a balloon payment of $40,000 when we would be in our 90s.
I am a Grandmom now, and don't want every memory with him to be clouded with worry about trying to keep our house from a greedy bank. I am not strong enough to publicly fight with Bank of America. It really takes special people for that type of action.

[closeupready]

16. I'll never forget seeing that - she's a real hero, in my book.

I'd just love to see her run for national office. Thanks for posting that.

[No Compromise]

7. the HAMP modification was designed to give the bankers more money for the modifications

The banks collected most of the money in fees for trying to help. The more people they tried to help, the more money they made. But the banks never really wanted to help, so the vast majority failed. They got the HAMP money and everyone's homes.

A huge amount of HAMP money went to the corporate media. I saw ads all over the net, on Democratic Underground and everywhere. I heard ads on the radio, on Rush Limbaugh and Glenn Beck.

This bullshit needs to be exposed

[truedelphi]

12. And even people who didn't get into the HAMP Program, as

They heard from the nieghbors what a struggle they would face, those people went out and fund buyers for their homes. Then they called the banks up and said, "We have a buyer for our house, as a short sale."

And the banks said "NO. We don't want no stinkin' short sale." One neighbor presented four different short sales to the bank - and allwere refused, so the bnank could go into foreclosure!

So now every other home that is up for sale in my neighborhood is just sitting there. Often the yards fall into disrepair, as once the banks own the houses, they do NOTHING! And if the yards are not watered over the dry months of the summer, the yards become fire hazards. And rumor has it the banks are keeping these houses off the markets until the rental rates are exorbitant.

But banks, Under The Paulson/Geithenr/Bernanke trio, are allowed to do as they please. After all, if they fail, we taxpayers MUST pay them back, on account of the New Bush/Obama Doctrines: Main Street Wealth will Stealthily Go to Wall Street.

[2pooped2pop]

28. same here

they won't work with you. All the info they want from you is not to help you get help but to help them stop you from getting help.

I hope they all die the most horrible death possible. One in poverty. The one they have created for so many of us.


The people have NOT been helped.
The people have NOT been satisfied.
The people have NOT been treated anywhere near as well as the corporations. I expect a new citizens united type ruling that says Corporations are not JUST people, but they are GODS. We will simply have to tithe to them. No house, no loan, just give them all of the mother fucking money.

[xchrom]

6. Du rec. Nt

[WillyT]

8. So What Else Is New ???

[JDPriestly]

9. Meanwhile, bank depositors are getting maybe 1% or if lucky slightly more interest.

Where is the money going?

This is not justice. The rich are taking, taking, taking and taking again. Sorry. But this stinks. And then they want to go after Medicare and Social Security.

What can we do to end this greed?

[pa28]

11. Hamp "foamed the runway" and banks walked away from the crash.

Lots of homeowners were strung along by banks and then foreclosed on anyway. They were the foam.

[AgingAmerican]

13. When bankers in Iceland collapsed the economy

they JAILED them along with their politician ENABLERS.

Throw them in prison and be done with it already Mr President, jeeze.

[woo me with science]

15. Hope and Change! Hope and Change!

Many Americans are hoping to find enough change to feed their children tonight.

[Jefferson23]

17. It is so sad, but come on, there is someone left around who is surprised? n/t

[Skittles]

18. only the little people pay

[KG]

19. gee, who didn't see this coming?

[Marr]

20. That clicking sound you hear is the Fan Club looking up Gretchen Morgenson.

They'll be back in a moment to tell you how SHE'S the problem, and is actually a GOP undercover superduper superspy and should be ignored really really hard.

[vi5]

26. Ha! Well played. And accurate (N/T)

[KoKo]

27. how true....

blue line specials with snips taken out of context distorting content will be up soon.

[Wilms]

21. ^

[Nye Bevan]

25. Surely Sen. Warren won't allow them to get away with this?

Or have they got to her already?

[AnotherMcIntosh]

30. They've already gotten away with this.

She was only recently elected to be a Senator. She is not and never has been the U.S. Attorney General.

[xiamiam]

31. this, like the loan mod process is a joke

designed to wear down an already worn out and shocked homeowner facing an everyday nightmare of moving their family and things into the street. The banks are not as diabolical in their methods today but they're still taking millions of houses. I'm an expert but for none of the right reasons. 4 million people have to fit their situation into the little boxes provided on the application. To this day, there is no way to prove you sent something to the banks..via fax.The banks refuse to communicate via email. In the early days, the days in which this money is addressing, 2009-2010, Chase had a system where one person worked with the homeowner for one month. At the end of the month, a new rep took over the file who requested the same documents and often provided different info, and by the time the file inched forward a little, a new rep took their place. They can say one thing and then do another. They send countless letters with inaccurate information. Then, you have to spend time explaining why they are wrong. The banks are criminals and the folks who work at those pitiful sinister jobs are as well..just by nature of association.

More than ten million have lost their homes since this began. The stimulus package could have been given to every American and much of this could have just stopped then. Obamas Hamp program is a failure...from day one. Someday, when a democrat is not in office, democrats are going to lead the charge to put a lot of these people behind bars. Geithner is the devil incarnate imo and I never thought I could dislike anyone more than I disliked Cheney.

There are countless documentaries and evidence re the wrong..there are none explaining how it has been righted.

[Jakes Progress]

32. You mean the bankers in Obama's cabinet went easy on the banks.

Who would have guessed that would happen.

The republican party has been taken over by the tea party.
The Democratic party has been taken over by the republicans. (reagan democrats)

[brentspeak]

33. NYTimes editorial: Another Slap on the Wrist

http://www.nytimes.com/2013/01/09/opinion/another-slap-on-the-wrist-for-big-banks.html?hp&_r=0