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View Diary: Citibank fails to prove Mortgage Ownership, in Foreclosure Suit (48 comments)

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  •  Lots of people agreed to loans (3+ / 0-)
    Recommended by:
    ExStr8, dharmafarmer, jamess

    they shouldn't have but were told when they signed on the bottom line that they could just refinance before the rate got hiked, etc.  Now...that doesn't make them blameless, but I do believe they weren't treated honestly and shouldn't bear the entire brunt of the state of real estate mess today.  I would love it if rulings like this evened the playing field a bit.  I bet most people would just like a fair shake and an opportunity to stay in their house and make payments they can afford in a timely manner.

    •  they should be civil cases, perhaps (7+ / 0-)

      where both parties "split the difference"

      of the Mortgage collapse.

      The Senate has found that a large percentage of issued Loans, were fraudulently made:

      Was Bernie Madoff the Exception or the Rule?
      Robert L. Bororsage -- Apr 14, 2010

      The Levin hearings show that WaMu systematically peddled loans to people it knew could not pay them back. This wasn't an accident.
      [...]
      According to the FBI, 80% of mortgage fraud is committed by the lender. We're not talking about stupid loan officers allowing borrowers to get away with something crazy that is bad for the bank. We're talking about clever loan officers pushing fraudulent documents in order to score bigger paychecks, and bank executives looking the other way so that they can keep getting big paychecks from the securitization machine.

      This isn't a problem unique to WaMu. This is how the U.S. mortgage system operated for half a decade. WaMu particularly pushed predatory option-ARM loans, loans with an initial monthly payment so low that it often didn't even pay off the interest on the loan. Then after a couple of years, the monthly payment explodes -- and the loan becomes unaffordable.

      The press is impotent when it abandons itself to falsehood. --Thomas Jefferson to Thomas Seymour, 1807

      by jamess on Fri Oct 01, 2010 at 05:29:20 PM PDT

      [ Parent ]

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