H.R. 3808: Obama Prepares to 'Legalize' Foreclosure Fraud

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machinehead's picture
machinehead
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H.R. 3808: Obama Prepares to 'Legalize' Foreclosure Fraud

You've heard of the problems with fraudulent foreclosure affidavits, which have allowed houses to be seized without notification to the borrower, without valid custody of the note, and so forth? This is a HUGE problem deriving from screwed-up documentation produced during the mid-decade mortgage bubble. Now class actions and RICO racketeering charges are starting to be filed, and JP Morgan don't like it. So JP told Congress to fix it -- and they did. 

(Reuters) - A bill that homeowners advocates warn will make it more difficult to challenge improper foreclosure attempts by big mortgage processors is awaiting President Barack Obama's signature after it quietly zoomed through the Senate last week.

The bill, passed without public debate in a way that even surprised its main sponsor, Republican Representative Robert Aderholt, requires courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents.

The timing raised eyebrows, coming during a rising furor over improper affidavits and other filings in foreclosure actions by large mortgage processors such as GMAC, JPMorgan and Bank of America.

Questions about improper notarizations have figured prominently in challenges to the validity of these court documents, and led to widespread halts of foreclosure proceedings.

The legislation could protect bank and mortgage processors from liability for false or improperly prepared documents. The White House said it is reviewing the legislation.

http://www.reuters.com/article/idUSTRE6955YX20101006?pageNumber=1

This scandalous post facto legalization of foreclosure fraud was passed by voice vote in the House (meaning no one objected), and by unanimous consent in the Senate (ditto). The Reuters article explains the legislative sleight-of-hand needed to pull off this remarkable three-card monte swindle:

After languishing for months in the Senate Judiciary Committee, the bill passed the Senate with lightning speed and with hardly any public awareness of the bill's existence on September 27, the day before the Senate recessed for midterm election campaign.

The bill's approval involved invocation of a special procedure. Democratic Senator Robert Casey, shepherding last-minute legislation on behalf of the Senate leadership, had the bill taken away from the Senate Judiciary committee, which hadn't acted on it.

The full Senate then immediately passed the bill without debate, by unanimous consent.

Make no mistake: this is the biggest corporate larceny since the TARP LooterFests. The corpgov racketeers are pulling it off right in front of our eyes, four weeks before an election. Owing to unanimous passage in both houses of Congress, EVERY SINGLE INCUMBENT IS RESPONSIBLE FOR THIS OUTRAGE.

Sad to say, I am 99% certain that our malleable president will sign this stinker of a bill on behalf of his bankster buddies. In for a penny, in for pound, eh?

If there were ever a case for ejecting every single member of our failed, kleptocratic Congress -- and even stripping them of parliamentary immunity to facilitate criminal prosecution -- this is it.

HR 3808 = DESCENT INTO A GANGSTER STATE

 

 

machinehead's picture
machinehead
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

Karl Denninger provides some piquant background on the bankster-gangster mortgage scam:

http://market-ticker.org/akcs-www?post=168499

If Obama signs HR 3808, the rule of law is gone for good. The banksters can screw you into the ground, with the full approval of their servants in Congress, and you will have no legal recourse whatsoever. 

See you in the FEMA camps! Smile

Davos's picture
Davos
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...
machinehead wrote:

Karl Denninger provides some piquant background on the bankster-gangster mortgage scam:

http://market-ticker.org/akcs-www?post=168499

If Obama signs HR 3808, the rule of law is gone for good. The banksters can screw you into the ground, with the full approval of their servants in Congress, and you will have no legal recourse whatsoever. 

See you in the FEMA camps! Smile

Banks will be able to send out a postcard to the "owner" with a move out date. "Pack your bags, we took your house". UFB.

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pinecarr
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re HR 3808 = DESCENT INTO A GANGSTER STATE

Holy sh#@, Machinehead! 

I just saw ZH's article on Karl Denninger and the foreclosure mess "Karl Denninger Explains Foreclosure-Gate On The Ratigan Show", at http://www.zerohedge.com/article/karl-denninger-explains-foreclosure-gate-dylan-ratigan.  So I  did a search here at CM to see if anyone had already posted it, and found your post here.

machinehead wrote:

If Obama signs HR 3808, the rule of law is gone for good. The banksters can screw you into the ground, with the full approval of their servants in Congress, and you will have no legal recourse whatsoever. 

machinehead wrote:

HR 3808 = DESCENT INTO A GANGSTER STATE

After reading the info you posted, I feel sick to my stomach.  I mean, I "knew" the corruption was that bad.  But now here it is, right in our faces;  it really is this bad!

It is hard to believe something isn't going to give with this latest stunt.  Unless all we can muster from the herd is a couple of "baaa"s!

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Nate
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Re: re HR 3808 = DESCENT INTO A GANGSTER STATE

Did Ron Paul suport this bill?

machinehead's picture
machinehead
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Re: re HR 3808 = DESCENT INTO A GANGSTER STATE
Nate wrote:

Did Ron Paul suport this bill?

It was passed by voice vote, meaning no one objected.

All 435 of them just went ARROOOHHHHHHHHHHHHH!!! like the jackals they are.

'Citizen roadkill! Let's chomp!!'Surprised

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jhelge
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

A little bit of google goes a long way.

http://www.whitehouse.gov/blog/2010/10/07/why-president-obama-not-signin...

Still worth watching, but it's not getting signed as it is... Or so Obama's blog says.

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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

can someone explain to me why they think this legislation would allow banks to foreclose with a postcard notice?  Or, in what way this will allow banks to commit foreclosure fraud?

 

I can't find the full language of the bill yet, but what I've seen doesn't equate to this in my eyes.

 

Help me understand.

Davos's picture
Davos
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...
JustinChase wrote:

can someone explain to me why they think this legislation would allow banks to foreclose with a postcard notice?  Or, in what way this will allow banks to commit foreclosure fraud?

 

I can't find the full language of the bill yet, but what I've seen doesn't equate to this in my eyes.

 

Help me understand.

Watch the video on the page. 

that1guy's picture
that1guy
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

Note to self...........dont even consider buying a house in the states period, unless i come into money and can buy outright, LOL.............even then, I dont think i would spend it there.....

Davos's picture
Davos
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...
that1guy wrote:

Note to self...........dont even consider buying a house in the states period, unless i come into money and can buy outright, LOL.............even then, I dont think i would spend it there.....

+1 Cardoso paid cash, money was wired into BOA, and they foreclosed on his home.

I can just imagine the litigation that will follow those like this guy that didn't pay cash, that also bought a home that was foreclosed, a home that an attorney forged documents to get a non payer out of.

This is, without a doubt the single biggest unmitigated disaster of our time. These effing morons who created these derivatives should be sent to Saudi Arabia and lashed or stoned. 

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jhart5
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

It will be very interesting to see what happens next!!

jhart5's picture
jhart5
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

Rats!!!

Mr. Fri's picture
Mr. Fri
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

What I don't understand is why the rating companies are still in buisness. They obviously gave higher ratings where they shouldn't. If they put out bad ratings on purpose, they should be shut down for fraud.  If they did their honest best and were still waaaay off, no one should use them because they're incompident.  Either way they should be shut down by now, right?

JustinChase's picture
JustinChase
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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...
Mr. Fri wrote:

What I don't understand is why the rating companies are still in buisness. They obviously gave higher ratings where they shouldn't. If they put out bad ratings on purpose, they should be shut down for fraud.  If they did their honest best and were still waaaay off, no one should use them because they're incompident.  Either way they should be shut down by now, right?

Yes, they should be held accountable.  I've read that in the "financial reform bill" that they are now allowed to be sued by individuals for putting bad ratings on products, but I've not seen that anyone has taken advantage of this yet.  perhaps it was removed as it would actually have a positive effect; and we sure don't want that happening.Tongue out

it's not just the ratings companies either, the brokerage houses gave good ratings to companies that gave them business.  I actually asked a VP of research at Morgan Stanley Dean Witter one day, "why did you have a 5 star rating on Einstein Bagels, right up until they filed for Bankruptcy?" and he answered, "pfft, a bagel company?!?  You should have known better!!"  that was his full answer.

I lost all faith at that moment.

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Re: H.R. 3808: Obama Prepares to 'Legalize' Foreclosure ...

About MERS. Department of Law, University of Cincinnati.

Abstract:     
At the roots of the worst recession since the Great Depression were unaffordable home mortgages packaged into securities, sold to investors, and used as capital assets by financial institutions. The process of securitization, as well as financial institution over-leveraging associated with it, has been well documented and explored. However, there is one company that was a party to more questionable loans and foreclosures than any other and yet has received virtually no attention in the academic literature. Mortgage Electronic Registration Systems, Inc., commonly referred to as “MERS,” is the recorded owner of over half of the nation’s residential mortgages. MERS operates a computer database designed to track servicing and ownership rights of mortgage loans anywhere in the United States. But, it also acts as a proxy for the real parties in interest in county land title records. Most importantly, MERS is also filing foreclosure lawsuits on behalf of financiers against hundreds of thousands of American families. This Article explores the legal and public policy foundations of this odd, but extremely powerful, company that is so attached to America’s financial destiny. It begins with a brief explanation of the origins of the county real property recording systems and the law governing real property liens. Then, it explains how MERS works, why mortgage bankers created the company, and what MERS has done to transform the underlying assumptions of state real property recording law. Next, it explores controversial doctrinal issues confronting MERS and the companies that have relied on it, including (1) whether MERS actually has standing to bring foreclosure actions; (2) whether MERS should be considered a debt collector under the federal Fair Debt Collection Practices Act; and (3) whether loans recorded in MERS’ name should have priority in various collateral competitions under state law and the federal bankruptcy code. The article culminates in a discussion of MERS’ culpability in fostering the mortgage foreclosure crisis and what the long term effects of privatized land title records will have on our public information infrastructure. The Article concludes by considers whether the mortgage banking industry, in creating and embracing MERS, has subverted the democratic governance of the nation’s real property recording system.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1469749

50+ page PDF for download at link.

 

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