Homeowners Get FUCKED While Banks Get BILLIONS

[Big Bill Jefferson]

Homeowners Get The Boot For Bad Paperwork While Banks Get Millions For Same
by Shahien Nasiripour

Mortgage companies enrolled in the Obama administration's signature foreclosure-prevention initiative may be receiving taxpayer funds despite not having a legal right to the home or to the mortgage, a top Treasury Department official revealed Wednesday. But despite faulty or missing paperwork, the Obama administration allows mortgage companies to boot homeowners from the program, sticking the borrowers with massive bills that often leave them worse off.

During an oversight hearing, Phyllis Caldwell, Treasury's housing rescue chief, acknowledged during questioning that Treasury doesn't know whether mortgage companies and the owners of mortgages are receiving public money under "false pretenses." Treasury is investigating, she said.

The contradiction highlights what many critics of the past two administrations' policies have claimed for some time: they exert overwhelming force when it comes to saving financial institutions, but merely modest assistance when it comes to distressed homeowners.

More than $535 billion in taxpayer money went to firms and toxic assets as part of the Troubled Asset Relief Program and the bailout of Fannie Mae and Freddie Mac, according to the latest quarterly figures from two federal auditors. About $992 million has gone to homeowners, the same data show.

...

http://www.commondreams.org/headline/2010/10/30-0

[dkf]

1. But what if the banks don't pay for this...what if it is you and me.

The entity at the other end of the loan is probably a pension fund...not the bank. The banks were just the middle men in that they set up the loan then sold it to your retirement fund if you have one.

So the question to the public is are you willing to decrease your benefits and your retirement to help out homeowners. In the end we the people back everything in one way or the other.

Earlier this week all the large holders of mortgage backed securities got together to talk about forcing the banks to take back the crappy loans. What they were told is that the banks have huge resources to fight this and that In the past suits like this took years in court to resolve. Moreover the banks are not releasing the underlying loan information which shows what loans are in there.

[Irritable Liberal]

4. The inviolate concept of property rigths

used to be a core Republican value Not any more unless the mortgage may or may not belong to a bank. The individual who nominally lives in the house has no rights any longer. The legal niceties of the law no longer matter. How dare they quibble about such legal requirements. Corporations get to decide what's legal in today' America.

[librechik]

2. There's a lot of work to do after the election. Let's give Obama more Dems

to help him do it

[Big Bill Jefferson]

3. Didn't Obama receive

more money from Wall St. than any other candidate? They are all in on the take.

We lose.

[librechik]

7. So don't vote. I'm urging everyone else here to vote dem and make their influence felt.

[Nite Owl]

6. You forgot your sarcasm thingy

right?
I mean we already did that, Obama had one of the largest majorities in recent history and they blew it.

[librechik]

9. No, he never had a voting majority. Blue dogs voted no while Pukkkes

stayed obstructionist. It really sucks that some dems abandon the cause just when we need their help becasue they have no concept of patience and process.

[northernlights]

8. Obama already explained there is no evidence of systematic fraud

Case closed. Now move right along. Nothing to see here but a bunch of deadbeat, ne'er do wells under that bridge. :sarcasm:

[Better Believe It]

5. K & R

[BlueIris]

10. Ugly. nt