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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  Banks learned a long time ago to (22+ / 0-)

    keep their records secret.  Without documentary evidence, it's very hard to make a case.  
    The way I discovered land speculators were flipping lots via multiple bogus sales to each other so they could then get a mortgage for the inflated amount was quite by chance in flipping through deed books at random and seeing that the same people were "selling" the same parcel within a couple of pages.  I sent the information to the supervisory agency (don't remember which--it was in about 1980) and an investigator showed up at my house to collect the data and a couple of years later an S&L was closed down.
    I never heard another word until a banker from another institution asked me why I'd "gone after" the S&L.  I told him it was because they were refusing to make loans to home owners in the inner city and giving money to land speculators. Some malfeasance got nipped in the bud, but it was just a matter of chance and one person liking to look through deed books.
    I suspect that one of the reasons for setting up MERS was to avoid the kind of snooping I did.  All the electronic records are inaccessible and so easily "lost." The counties getting their recording fees back is going to be a big success, if they ever manage it.
    Nobody likes paper-work because a written record is hard to falsify.  The robosigners demonstrated that.  But, it took some judges actually looking at the paperwork.

    People to Wall Street: "LET OUR MONEY GO"

    by hannah on Fri Feb 10, 2012 at 06:02:19 AM PST

    [ Parent ]

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