This is a fantastic, eight minute overview on how the foreclosure crisis works. In it, Rep. Alan Grayson walks through from the beginning of the crisis with the mortgage buying and selling free for all through the problem today, when the multiple sales of paper, poor record keeping and basic not giving a damn on the part of lenders have led to people being fraudulently foreclosed upon. Grayson gives four real examples.
Grayson has been shining a light on the fraudulent foreclosure crisis, including Fannie Mae's "use of powerful law firms—some of which have been accused of breaking the law—to handle foreclosures," and his request to the Florida Supreme Court to halt mortgage foreclosure cases handled by firms already under investigation.
In part because of Grayson's efforts, the issue is getting national attention.
The foreclosure machinery that has forced millions of Americans out of their homes is beginning to seize up as some lenders and their lawyers are accused of cutting corners in their pursuit of rapid home repossessions.
Evictions are expected to slow sharply, housing analysts said, as state and national law enforcement officials shine a light on questionable foreclosure methods revealed by two of the country’s biggest home lenders in the last two weeks.
Even lenders with no known problems are expected to approach defaulting homeowners more cautiously and look more aggressively for resolutions short of outright eviction....
GMAC has acknowledged legal missteps in processing mortgages, and JPMorgan Chase has acknowledged the possibility of missteps, and both have suspended all foreclosures in the 23 states where they need a court’s approval. That’s 56,000 in the case of Chase alone; GMAC declined to provide a number.
Attorneys general in half a dozen states are demanding action or opening investigations. The Treasury Department said Thursday it was asking regulators to look into “these troubling developments.”
It's a start, and finally it looks like the homeowners might actually catch a break in this crisis. But I'm with Atrios, it's time to start arresting these guys.
In the meantime, let's keep Grayson in Congress.