Thursday, October 7, 2010

Prez Obama Slaps Down Big Banks For Shady Home Foreclosure Bill

Obama catches last minute sleaze Republicans and Big Banks tacked on into new bill to cheat homeowners of their consumer protection rights while in foreclosure.

From Denny:  Leave it up to the Republicans to sleaze the public and try and slide yet another scumbag piece of legislation past the public and the President.  Fortunately, the White House caught it in time.  As it was, none of the Democrats in the House or the Senate realized they had been sleazed by the Republicans with a last minute tacked amendment they didn't know they were about to vote into law.  They thought the law stood as agreed with no changes yet they got snookered by the Republicans and their handlers yet again.

Basically, the Big Banks, their lobbyists and their Republican politicians they have in pocket decided they wanted the Big Banks and mortage companies and other related entities to escape being held legally accountable for any mistakes or wrongdoing on their part in the home foreclosure mess.

The whole point of stopping this shady bill from becoming law is because it would make it difficult for homeowners to challenge foreclosure documents that were prepared in other states.  Thank President Obama for refusing to sign this idiot bill, looking out for the middle class homeowners who are getting their rights trampled.

The Big Banks are trying to get excused from legal responsibility across state lines so they can hurry up the home foreclosures.  It's no surprise the Big Banks want everything to their advantage for their convenience. As it is they have been guilty of mindless "robo-signing" as many as 10, 000 cases per month without even looking at the documents to see if they are correct.  See yesterday's post:   Obama Investigates: Big Banks Screw Up Home Foreclosures.  Clearly, there is collusion among America's banks for corruption of the foreclosure process and cavalier denial of consumer protection rights.

Speaker Pelosi and another 30 members of Congress are demanding investigations from federal regulators into finding out if mortgage companies broke the law while they used error prone paperwork.  Speaker Pelosi and other Democratic lawmakers are also suggesting  the Justice Department probe whether mortgage companies also violated any laws when they handled foreclosures and, especially, borrowers' requests for federal loan assistance.

I've heard a lot of rumblings in my state of Louisiana about how the banks are not sending in HUD application forms for homeowner assistance and just arbitrarily deciding homeowners don't qualify. As of the August report, 60 percent of distressed homeowners nationwide are getting no help from their lenders in this process.

It sure looks like the banks are rushing up the foreclosure process. Then the next thing you wonder is if they have a group of people ready to buy foreclosed properties at the sheriff auctions for pennies on the dollar as the final part of their scam.

President Obama and Congress put out homeowner assistance monies to banks to draw upon when homeowners needed assistance in paying their loans.  Now it's being questioned as to whether the banks are keeping those monies, refusing to draw upon those accounts for distressed homeowners - and instead using those funds to draw and pay interest to the banks. Does it get any scummier than that?

“It appears that we aren't dealing with isolated incidents and that a pattern of misconduct and obstruction is present,” Rep. Lofgren said.

Related Articles

Obama Won't Sign Foreclosure Docs Bill

Pelosi Calls for Foreclosure Investigation

Foreclosures: Help for Homeowners Means Hurt for Banks

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