Task force probing whether banks broke federal laws during home seizures

[cynatnite]

Source: Washington Post

Federal law enforcement officials are investigating possible criminal violations in connection with the national foreclosure crisis, examining whether financial firms broke federal laws when they filed fraudulent court documents to seize people's homes, according to people familiar with the matter.

The Obama administration's Financial Fraud Enforcement Task Force is in the early stages of an investigation into whether banks and other companies that submitted flawed paperwork in state foreclosure proceedings may also have misled federal housing agencies, which now own or insure a majority of home loans, according to these sources.

The task force, which includes investigators from the Justice Department, Department of Housing and Urban Development and other agencies, is also looking into whether the submission of flawed paperwork during the foreclosure process violated mail or wire fraud laws. Financial fraud cases often involve these statutes.

The probe is unfolding as the administration seeks to send a public message that banks or other companies that broke the law would be held accountable. After freezing foreclosures in many states amid reports of improper foreclosures, banks are now preparing to submit new paperwork and resume the process of seizing homes. The task force is holding a wide-ranging meeting Wednesday to discuss the issue at HUD, which will be followed by a White House briefing by HUD Secretary Shaun Donovan and the task force executive director, Robb Adkins, an administration official said.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101904845.html?hpid=topnews

[dixiegrrrrl]

1. Department of Housing and Urban Development has been one of the fraudsters!

Wonder who " and other agencies" are?

[sabrina 1]

3. Yes, HUD secretary announced yesterday that he is against

a moratorium on Foreclosures, because it would interfere with profits. Too bad their priorities are not the American people and justice and the rule of law.

I won't be surprised if they find that the Banks had no idea that this was going on. Then we will all move on as Congress passes legislation decriminalizing, retroactively of course, everything that happened 'for the benefit of the country'.

In Iceland, the people have taken matters into their own hands. They nationalized their banks, fired their government who were deeply involved in the 'neo-liberal' policies that brought down the economy. They are prosecuting their leaders, and are planning to force the Banks to forgive debts to homeowners who were forced into foreclosure.

But this is America and the people have no power. I wish I had more faith in these institutions, but many of them were aware of what was going on and did nothing to stop it.

[DJ13]

2. examining whether financial firms broke federal laws when they filed fraudulent court documents

If they know they filed fraudulent court documents what more investigating is needed?

[mzmolly]

4. Vote Democratic, if you wish to see an investigation of banks vs. the administration.

Simple.

[Politicalboi]

5. One would think it was that simple

Bush is still walking the streets today. But yes I would HOPE the Dem's would do the job, because I KNOW the Repukes won't.

[mzmolly]

6. Pelosi did take him off the proverbial table

though. She was upfront about it all along. On the other hand, I expect to see the banks investigated but only if we maintain the house.