If Voluntary Moratoria Mean Banks Are Solving the Problem, What about Wells Fargo?
Elizabeth Warren, presumably laying the foundation for an Administration deal with banks to not unwind the entire securitization paperwork problem in exchange for loan modifications, points to banks’ voluntary foreclosure moratoria as proof the banksters are trying to solve this problem (presumably meaning the foreclosure fraud, but not the larger problems).
She additionally stated that major servicers’ voluntary foreclosure freezes mean two things. First, this problem “is big, and it is serious,” and second, the voluntary moratoria represent evidence that “the issuers themselves are trying to get this problem solved,” she said.
But only three of the top five servicers have issued moratoria of any sort (and some of those are limited to judicial states). Citi (with 6.3% of the market) and Wells Fargo (with 16.9%) have not issued moratoria at all.
And yesterday, an FT story reported that contrary to Wells’ claims, it too engages in foreclosure fraud.
In a sworn deposition on March 9 seen by the FT, Xee Moua, identified in court documents as a vice-president of loan documentation for Wells, said she signed as many as 500 foreclosure-related papers a day on behalf of the bank.
Ms Moua, who was deposed as part of a foreclosure lawsuit in Palm Beach County, Florida, said that the only information she verified was whether her name and title appeared correctly, according to the document.
Asked whether she checked the accuracy of the principal and interest that Wells claimed the borrower owed – a crucial step in banks’ legal actions to repossess homes – Ms Moua said: “I do not.”
Now, I’m all in favor of loan modifications. But Administration talk about deals for loan mods is far too early, not least because all the banks haven’t issued moratoria (not to mention the fact that banks with moratoria seem to be continuing the foreclosures).The banks aren’t yet ready to solve the problem.
One of Obama’s signature traits is conceding on the most critical issues at the start of any negotiation, thereby preventing him from crafting a really useful deal. I fear the Administration is about to do the same with foreclosure fraud, too.
I hope Obama realizes – how can he not? – that he’s dealing with an issue that can, by itself, insure that he’ll be a one-term president.
I also agree that he’s one of the greatest campaigners of all time, and also one of the worst negotiators ever. From a position of strength, he starts by crippling his leverage with an appeasing compromise offer that makes it look like he’s ready to collude with the ‘bad guys’ – just ridiculous!
Obama’s biggest problem right now, imvho, is that he appears to be Too Weak to do the Right Thing. If ever there was an issue he could demonstrate strength and resolve to do the right thing on – foreclosure fraud, and the Banksters in general, is it.
It will be Too Late when he finally realizes that the Banksters he’s covered for, have anonymously contributed millions and millions to the GOP in order to sink him.
Yes, he realizes. I’ll take your word for it that he’s a great campaigner. He never appealed to me, altho at the time it was just a general dislike After two years in office, my dislike is forming very particular impressions. He does get what he wants, but he has no community of interest with any of us.
His negotiating habits are leading me to think that he was the household peacemaker when he was younger, and has never learned (and maybe hasn’t had to deal with until now) to handle actual, serious opposition. (Especially of the ‘we’d prefer to see you dead’ type that the wingnuts are practicing.)
It makes me want him to get out of the WH sooner rather than later, even if it makes him a half-term president.
Knowing this president’s history of covering up problems and “not looking back” it seems very unlikely that he will do anything to uncover the systematic underlying problem of fraud and the tenacles linked to the GOP.It could happen, but right now we have no evidence of this behavior in Obama. It’s much more likely that he will look for “short term surface” solutions instead of remedying the underlying long term issues.
“The Largest Financial Swindle in World History”; lambert; Corrente; 10/14/10
Dr. James K. Galbraith at CEP Convention 2010; 10/8/10
http://rabble.ca/rabbletv/program-guide/2010/10/features/dr-james-k-galbraith-cep-convention-2010
What do the banks want?
That’s what Obama will do.
Also?
Team Obama’s goal is to get this problem past the midterms, then blame the next economic collapse resulting from foreclosure fraud on the GOP’s policies and patrons.
They know the entire housing market is about to seize; they just want not to happen until after 11/3/10.
Sounds about right to me, Teddy.
That oughta fix it.
Oh goody that means I can buy that bridge I always wanted.
Let me know, I’ll take part of that action.
I also want to point out that, even more than other banks, Wells has a history of having done no wrong, in their view. So I’m not surprised to see them take longer to wake up to their problem.
Or, Wells Fargp alone might have done everything right all along! I’ve never seen their optimism justified in errors I’ve caught them in, though. The error is always theirs.
I’m planning on paying off my Wells Fargo mortgage in the next couple weeks. I will not be surprised if there are 1) certain undisclosed add-on fees for an early payoff and 2) an inability to produce the note and mark it paid in full.
I notice though that my mortgage is not listed on the MERS website, so maybe I’m in luck with the note.
he’s one of the greatest campaigners of all time
Frankly I’m sick to death of this trope.
How hard is it to look attractive after eight years of Bush and lie your ass off?
Thank you, Sharkbabe. He never struck me as that great a campaigner.
But I don’t easily fall under pols’ spells. I look at what they do and what they promise to do.
In Obama’s case, the promises didn’t match his early legislative history (or his FISA vote during the campaign!) and he also made comments and did other things during the campaign (his Harry and Louise ads, his comments to the Pittsburgh editorial board about Repubs having the best ideas the preceding 10-15 years-which included BushBoy!!, the WORMing of his promise to Ohio voters to renegotiate NAFTA, his remarks to PRIVATE fundraiser audiences, etc.) which conflicted with his stump speech oration.
I am, however, gobsmacked at just how obivously Corporatist he has been as president. I didn’t expect much, but he sure has governed far worse than I anticipated. Wow.
This goes beyond mortgage servicers. Most of those five large mortgage servicers don’t hold the mortgage themselves. The MERS system was an end run around state mortgage recording requirements in order to accelerate the rate at which mortgages were sold to the bigger fool.
The fact is that on a lot of properties the situation is so confused that it will take time to sort it out. The banks’ losses are paper losses. The homeowner’s loss is real and material.
If the banks get what they want, there will be another cycle of foreclosures and bank losses, which will spiral down into another Great Depression. Unless there is strong government intervention, which is looking more unlikely right before an election. Obama might turn out to be the Herbert Hoover of the Democratic Party, with no FDR on the horizon and the folks Dick Armey stirred up drifting toward fascism. In a national security garrison state.
Dicey. Real dicey.
The Banks are not the only players here. The other large corporate players are the holders of the RMBSs.
Yep. One of the problems is that no one is clear who all the players with interests in a particular house are.
The free market is self regulating.
If they treat you bad people will just stop doing business with
the local bank, well when they figure out who owns your loan, them. /sThe Warren quote suggests that the phrase “consumer financial protection” will not prove to be an accurate job title.
The mortgage/foreclosure/refinancing mess is so great that only decisive action will……oh forget it.
You speak for me.
“One of Obama’s signature traits is conceding on the most critical issues at the start of any negotiation, thereby preventing him from crafting a really useful deal.”
I’d say that’s his plan, he really can’t be that dumb (GW got to play that card). He doesn’t want to do the right thing, he doesn’t want to help working class people in the least. He’s always going to show the corporations deference while he shows us his ass.
I think the plan was to destroy the democratic party, remake it as a true competitor for corporate funding to the republicans (the people, who gives a shit, we make a ton of $ this way).
I don’t understand why we keep forgetting things like this (both parties are beyond redemption).
We had long and painful threads about the consequences of Warren taking a job in the WH and I don’t want to revisit them. But this is just the first of Warren’s pro-bank, anti-consumer statements she will make.
She’s not on “our side” anymore.
I smell subsumption. Kind of predictable, tho. Obama probably said the right things, seemed oh, so sincere. Hallmark of a sociopath. Boy, hate to say it, too, because it really bodes ill. You can’t believe a word he says.
Absolutely right.
You expect a politician–any politician–to lie and obfuscate on occasion, but Obama seems to be the type who’s not happy in making a deal unless he’s able to screw the other person on some aspect, big or small, even if the screwing has no relationship politically or otherwise to the deal made.
No conscience, no scruples. Sociopaths know right from wrong but they don’t care. Other people are simply useful, or not, in getting what they want. Scary.
Well, after Bush, it seems the American people like sociopaths just fine. People seem to believe that is the president say it, it’s true…….
People have always been that way, I think. We’re an emotionally primitive species and the god king is immensely, instinctively, appealing.
We are now seeing the consequences of putting the consumer protection “bureau” under Timmeh first, then under Bernanke. The crooks in the Senate — particularly Dodd — took real independence off the table right at the beginning. At the direction of the banks and Obama — but I repeat myself.
I’m certainly not denying that Dodd et al. are crooks in the pockets of the banks. But one reason for this [in addition to the massive campaign contributions] is ACCESS: these weasels get in to see the Capitol Hill weasels on a regular basis.
I’d like to see everyday consumers “manufacture” some access. Dodd et al. should be out in their districts campaigning. Who knows, maybe there’s an occasional “town meeting” being held.
Why not take a page from the Tea Baggers and start showing up at these meetings, rotten mortgage papers/foreclosure notice in hand, and make a big stink?
There are certainly enough people out there who are being screwed by these guys. Start yelling and demanding relief.
As long as “consumers” and “home-owners” and “folks getting foreclosed upon” are nameless, faceless entities, there’s no story and no empathy. Create the press coverage — loudly, if necessary — and demand action, even knowing Dodd et al. aren’t going to provide it.
Get news coverage to send the message of how far-reaching this story is, how many are affected, how angry & frightened people are.
He really can’t be that dumb.
Its a feature, not a bug.
He’s smart enough to keep his family from harm by doing his masters’ bidding. Cheney, Rove and The Bush Crime Family and the CIA are murderers.
Unfortunately, we’re all screwed in the process because Obama’s hands are tied. Not to say he isn’t a malleable and opportunistic, unprincipled “leader”.
Obama’s speeches contrasted with his actions are beyond ridiculous.
Never underestimate the stupidity of the American Electorate.
Or the corruption of its “leaders.”
Foreclosure moratorium = Top Kill
Or bottom kill, seeing as fresh oil continues washing ashore the Gulf coast. But the media has stopped covering the ongoing oil spew started by BP.
It’s the same PR ploy: Create the meme that the banks have stopped foreclosing (<a href="http://www.news-press.com/article/20101013/RE/101012064/1075/Lee-County-foreclosures-continue"when they haven't), so that the people will forget about it, and the media has their cue to phase out the reporting on foreclosure fraud.
America has returned to those “wondrous days of yesteryear” – from the 50’s Lone Ranger series.
Here pretty soon, I suppose people will be shot if we don’t give up our homes.
I wonder just WHO wants them so bad?
The Mortgage Morass – Krugman
Ol Paul seems to be getting pretty sick of Obama…the comments are good as well.
Thanks so much for the Krugman reminder, I had a late start today didn’t get over to his column yet.
When Krugman says this, is it now officially true?
Obama continually pretends to negotiate because people treat him as if he is some naif who does not understand negotiation rather than as a bad faith actor who is not actually negotiating anything.
I recently got a call from BofA regarding a loan I got from them earlier this year. I had to buy a car and needed a few thousand dollars. I went to my local bank, where I do my banking, and they would not give me a loan, took them over a week to deny it. I had already called BofA and they approved a loan over the phone instantly. I told my bank I had a loan offer in hand but preferred to borrow from them, if they could do it.
The call was being “recorded for training purposes” or whatever is the current line that is used. I told them I was likely to tell other people to use BofA and that I would use them again, because I could not get a loan from a local bank. Do I like them or think of them favorably? No. and No. The woman on the other end of the line told me they would report all the feedback they got. Like that means anything. TBTF.
President Obama was elected and with lightening speed his administration became part of the problem.
> One of Obama’s signature traits is conceding on the most critical issues at the start of any negotiation, thereby preventing him from crafting a really useful deal
That’s because he’s beholden to the financial sector and almost always acts in their interests and against the rest of us.
What radiofreewill said at comment #1.
Foreclosuregate is proving to be a very clear test of whether Obama will take an almost perfect opportunity to reverse the course of his presidency and fight for his ideals and his voters. As EW and others suggest, there is no evidence to suggest he will pass this test any more than he’s passed multiple ones before it.
But what a test it is! There are so many ways a progressive president could capitalize on this second chance to hold the large, TBTF banks accountable for the fraud they perpetuated and continue to perpetuate on the American public. One angle that excites me is the opportunity to work with states attorneys general and state and county courts across the nation to enforce the laws against the fraud. An astute progressive in Obama’s shoes would turn the tea party’s angst against big government on its head by encouraging enforcement of laws against fraud at the state and county level. The idea of the big banks having to do legal battle separately in every county in the country causes me to salivate at the leverage Obama could exercise against these guys. And he could do this from the bully pulpit before the election. The possibilities are endless. Like most others here, I’m quite confident he will use this opportunity once again to prove how weak and compromised his presidency has become.
And, now, in his comments for the NYTimes review of his first year and three quarters, Obama says he wasn’t Republican enough! Not enough tax cuts in the stimulus (dude, you warped its stimulus effect by making 40% of it tax cuts!!).
I don’t think he’s reality-based. Or, his reality depends on staying in favor with Wall Street, corporate leaders, and, alas, Repubs….
Folks remember Valerie Jarret’s “gaffe” about being gay is a lifestyle choice just a few days ago.
Well seems to me it was so egregious…that it was intentional to draw scrutiny away from the WH’s role in the foreclosure crisis.Let’s not pretend that this jerk in the WH is any better than Bush.
Why does it seem that every time fraud is “found” (it seems pretty obvious to most of us but the media always portray it as a surprise) nobody EVER is held accountable? Not one person will go to jail? But if you or I committed fraud we would be thrown in jail asap? This is what makes me angriest about ALL of Obama’s wheelings and dealings. He seems to let crooks and liars off scott free (Gulf disaster etc.)
Well, Mozilo cut a deal with the SEC. He loses 50 million dollars and any future chance of a job, including board member, in finance (like that was going to happen), and they don’t charge him with anything. And the DoJ won’t have enough evidence to prosecute him, because of that deal.
What is needed now is a sorta “book for Dummies” but by a fairly well known author, who could lay the Historical Predicate for what has happened beginning with deregulation in the 1970’s and forward. SHOULD NOT BE TECHNICAL, BUT IN SHORT NARRATIVE, AND DESCRIPTION, The point iz to design something that will confirm that the story will be told broadly, and then with references, people will be able to look over more detail.
Clearly this has been a huge huge fraud, mainly directed at the Middle Class and their assets and equities. That needs saying very strongly.
You have all those State Attorney Generals out there demanding an investigation. They should be the drivers of this because keeping real property files or Ownership of Assets is There Traditional Authority, as they supervise the County Level Offices where such are recorded. It is an ancient task, and they must defend that turf. We need to defend them when they take it on. UP UP WITH STATE ATTORNEY GENERALS.
We also need to defend the County Records Systems, with all information on Deeds, Ownership, and all the rest, located in the County Records Offices and systems. It is almost a sacred thing — Remember George Washington was a land surveyor, before he became a General, Ben Franklin made his money printing the forms for recording such records before he went on to Politics, Jefferson invented better ways to survey accurately, It is all there, the founding Fathers were total advocates of the records in the County Systems.
The Huge Fraud is all about destroying this system with chaotic ideas that have led people to fail to understand how that ancient system protected their interests, Allowing all the bastards in with their Casino thinking into which so many bought in. A hell of a lot of people bought in, in some measure because they did not understand the Traditional Systems. Not understanding, they were willing to buy expensive Tulip Bulbs.
Obviously, the whole mess has to be unwound, Everything needs to be returned to a level where a person who comprehends the System, can look at the details, and make sense of them. That is how people will figure out where they happen to be right now.
But the key thing people need to know is that in the early 30’s something very similar happened, and with a lot of solid work, the problems were fixed, and resulted in a stable Housing Market that lasted from the mid 30’s till the Bastards got back in the doors in the late 70’s. No History, No Knowledge of how the systems functioned, well that results in a whole lot of people willing to believe those who flap Jowels on the Pundit Shows, in the name of the Bastards.
I should add that there are probably many Houses in the “For Sale” piles that could quickly be reviewed for any evidence of Fraud, and could rather quickly be moved to Sale. Criteria would need to be established, and made quite public, and a fairly standard form of Mortgage would need to be put in place. Essentially you seperate the wheat from the chaff, and focus on selling the wheat, and properly recording everything in the proper place.
Then the individual investivative process can begin, and some sort of process of reconnecting borrower with lender can be put in place, bringing more stock of housing into the potential market. Securitized Loans need to be reconnected in order to balance the true owner interested in selling, with the interested and willing buyer. It will take time, but I am sure if they train investigators properly, they will find lots of inventory that can be made ready to sell. But both Buyer and Seller need to be the class that is protected, and good regulatory law needs to serve that interest.
Clearly Obama has a role to play in this, but so does Congress. The Department of Justice needs to be on deck to prosecute and to lay fines. But ultimately it is at the State and County Level where in the end we have to strongly support the restoration of the System.
Sara wrote @ 44,
Thomas Jefferson created a very grass-roots form of governance that he originally wrote as an idealized idea of how Virginia ought to be governed. Those ideas were soon turned into laws governing the new “Northwest Territories” (what is now the Midwest, east of the Mississippi) and the Louisiana Purchase. At its base was the Township system, with its neat one mile grid born in Jefferson’s surveyor mind, and its systematic nomenclature for uniquely identifying private property parcels. The fruit of this system can be seen in the County Platt Books that are, in essence, a map of properties, which of course have to be periodically updated.
To the banksters, this was all a cumbersome archaic nuisance. But it is the legal basis of all real estate property in the United States. This is a monumental conflict that will take years to sort out. There are many people with whole packs of dogs in this fight.
As with many past bubbles, this was created by people who proclaimed a New Age in which the rules of the past were irrelevant. Remember all the cant about the “New Economy”?
Bob in AZ
“As with many past bubbles, this was created by people who proclaimed a New Age in which the rules of the past were irrelevant. Remember all the cant about the “New Economy”?
Bob in AZ”
Absolutely, and of course one should “Get in on the Ground Floor” HA HA
Just think for a time on the way the Modern Technology was used to abet all this? I have no problem with making County Records Digital, and making it possible to use Search Engines to locate data — not a Luddite here, but instead they were put in service to the “New Economy” and the Bastard’s games. What shit people bought into? Not only did they do dishonest Robo reviews of dishonest paper work, They used the power of the Digital systems to slice and dice up the Assets and Equities, and stuffed it all into black boxes no one can comprehend. It all will have to be reconstructed along careful criteria, and then the whole function needs to be returned to that plain little office, The County Recorder of Deeds.
As to Wells-Fargo, they have a little better PR, but essentially have been playing a very similar game. They have already lost one very large case in the State Courts here quite relevant to the game they have been playing and lots of lawyers are looking at the possibility of others. Stan Kaplan, who is now an Ambassador in North Africa won the case. Of course it is on appeal.
Mark Dayton fully understands the problem. He is now DFL Candidate for Governor. Both Horner the Independent, and Tom Emmer, the Republican who seems to refinance his house every few months, are part of the problem.
There is no Personal Responsibility in all this. It is all part of the System, and people’s interface with the system. Yes, people fell for more house than they could afford, or they lost jobs, and could not act in their best interests. A lot of people bought into the Casino — but all those ads for refinancing, for home equity loans, and using your equity to finance your kids Education, was all part of the Casino Game. A whole lot of people bought into the advertising, and we need to help them see what it was all really about. Destroying the System for the benefit of the Bastards.
Very few people who bet against the “house” ever win.
Those lavish casinos are built on loser bets,for the most part . My area is loaded with casinos. I know that the only sure bet is the one I don’t place.
Sara, A week or so ago you were relating some info about the Vatican, and their failure to meet the criteria for the EU “white list”,which if I recall is a financial screening and procedure to verify that money isn’t being laundered.
Think there’s any connection to these fraud disclosure?I don’t mean the Vatican is involved,but the transparency required for an international banking bill of health. (I know that Wachovia had “laundry “issues before being purchased by Wells Fargo.I posted some info on the EW ‘stress test” threadabout this,earlier in the week.)
I’d like to pick your considerable brain on that one.
BTW, hope you’re feeling better.
“Think there’s any connection to these fraud disclosure?I don’t mean the Vatican is involved,but the transparency required for an international banking bill of health. (I know that Wachovia had “laundry “issues before being purchased by Wells Fargo.I posted some info on the EW ’stress test” threadabout this,earlier in the week.)
I’d like to pick your considerable brain on that one.”
Absolutly getting connected with a means to move cash and/or securities is critical to any organization, so yea, they are connected. Point is whether you intend the connection as PR, or symbolic, or really intend to comply with the rules.
Thank you for your reply,Sara.
And not to get off on a tangent, but a couple of months ago, Wells Fargo and JPMChase were selected as advisors by BAE Systems for the sell off of some of their US platforms.Carlyle was reportedly one of the interested bidders. Seems BAE is going more into intel and info systems ,now..They just got a five year gov’t contract for a PBGC call center,handling pension info for numerous corporations.
(You may recall BAE as being front and center with the “Al Yamamah” arms deal kerfuffle that was ongoing for many years…and reported on at great length in the British media.)
My point is that there is no doubt that Wells Fargo and Chase have very good friends in very high places…jus’ sayin’.
What can Obama do even if he want’s to sell us out?
These are state laws on title transfers.
I’ve read RICO laws could be used to address the interstate conspiracy nature of these actions.
The banks are under federal law. By their own wishes.
Letter to Wells Fargo Spokeswpman Vickee Adams,
Dear Ms. Vickee Adams,
In your recent Wells Fargo’s press release, you declared that “”Our records show that Wells Fargo’s foreclosure affidavits are accurate, When the company finds employees that don’t follow procedure, it takes “corrective action.”
That’s a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud.
Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.
Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.
Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.
Wells Fargo chose to violate the law and chose to defraud us.
Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.
Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!