The Potential Impact of 60 Million Fatally Flawed Mortgages/Not what Paulson Said!!

[KoKo]

The Potential Impact of 60 Million Fatally Flawed Mortgages

The banks arranging these mortgage-backed securities have typically served as trustees for the investors. When the trustees could not present timely written proof of ownership entitling them to foreclose, they would in the past file “lost-note affidavits” with the court; and judges usually let these foreclosures proceed without objection. But in October 2007, an intrepid federal judge in Cleveland put a halt to the practice. U.S. District Court Judge Christopher Boyko ruled that Deutsche Bank had not filed the proper paperwork to establish its right to foreclose on fourteen homes it was suing to repossess as trustee. Judges in many other states then came out with similar rulings.
Following the Boyko decision, in December 2007 attorney Sean Olender suggested in an article in The San Francisco Chronicle that the real reason for the bailout schemes being proposed by then-Treasury Secretary Henry Paulson was not to keep strapped borrowers in their homes so much as to stave off a spate of lawsuits against the banks. Olender wrote:

“The sole goal of the is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value – right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

“. . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .

“What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.”

Needless to say, however, the banks did not buy back their toxic waste, and no bank officials went to jail. As Olender predicted, in the fall of 2008, massive taxpayer-funded bailouts of Fannie and Freddie were pushed through by Henry Paulson, whose former firm Goldman Sachs was an active player in creating CDOs when he was at its helm as CEO. Paulson also hastily engineered the $85 billion bailout of insurer American International Group (AIG), a major counterparty to Goldmans' massive holdings of

CDOs. The insolvency of AIG was a huge crisis for Goldman, a principal beneficiary of the AIG bailout.

More at...........
http://www.opednews.com/articles/LANDMARK-DECISION-PROMISES-by-Ellen-Brown-090921-894.html

[indepat]

1. So much fraud on its face perpetrated by so many who have been granted enormous bonuses for their

zeal/effectiveness in peddling these seemingly purloined securities and only Bernie is in jail. While Bernie's fraud was monstrous, it was mere child's play, albeit a prodigious child, in comparison. :P

[mike_c]

2. why are those rat bastards still walking free...?

This is crazy. The truth about the mortgage securities fraud is slowly coming out. Torches and pitchforks, anyone?

[KoKo]

4. Even meany left on Wall St. are starting to ask the same question...WHY?

and "HOW?" are they not behind BARS...hanging from the Lamp Post? :shrug:

[EmeraldCityGrl]

3. My fear is that the average American

mortgage holder will never comprehend what's taken place. If they fully understood they would be in the streets
demanding prosecution.

[KoKo]

5. What you said is important. What about those who didn't know they could stay in their homes?

Why is this news just filtering out? It's one thing for folks with "high credit rating" to default because they know they can do it and another thing for those "on the edge" with huge credit card dept who were swindled to go "against the system." Most of the "poor folks who thought they had a chance and are "maxed out on their credit card" maybe never fought back. In the end...it's the "rich who know how to work the system" who will default...because they are smart enough to know to do it...and they get off "FREE!" They got the bailout after the bailout!

Is this not a CRAP GOVERNMENT CORRUPTION SCHEME? It's sickening.

[EmeraldCityGrl]

8. There's a bill sitting in Barney Franks House

Services Committee that would force the lender to provide the proper documentation before they could
foreclose. If we could get that bill passed, what a difference it would make for so many.

[KoKo]

9. I know...fax...phone...e-mail and go to his DC office and "sit in."

[EmeraldCityGrl]

10. Barney Franks can be contacted at [phone] n/t

[Bluenorthwest]

12. Be sure to use his correct name Barney Frank

[bemildred]

6. Well, you have to find out if MERS is the holder of your note.

Then, if it is, you can stop paying.

A massive transfer of wealth from the banks to the middle class. Who could have predicted this?

[KoKo]

7. Here's link to if MERS holds your Mortgage...

Hat Tip to DU'er "Me." who posted this on another thread in DU. I checked and sure enough Bank of America is on the list along with hundreds of scum. BOA held my Mortgage...

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Me. Donating Member (1000+ posts) Journal
Scroll Down The Page

MERS MEMBERSHIP INFORMATION

http://livinglies.wordpress.com/2009/01/27/mers-members... /

[OffWithTheirHeads]

11. If this Massive transfer to the middle class actually happens

I may have to re think my Atheism.