Friday, October 1, 2010

Massive amounts of mortgage related fraud, where's the guy in the white hat?

This article in the New York Times that chronicles the other side of mortgage related fraud got me so pissed off that I almost fell of the toilet this morning.  From the Times...

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.” 
The root of the problem is massive amounts of fraudulent and forged documents that the banks are producing to speed up the foreclosure process.  The Times tiptoes around the problem by calling the alarming amount of fraud committed by the lenders and their lawyers "missteps".  Again, from the Times article...
Defense lawyers say the disclosures are symptomatic of the carelessness, if not outright fraud, that lenders have been exhibiting for years in their rush to file cases. Many necessary documents have disappeared, with defense lawyers saying the lenders often do not even have standing to foreclose.

Documents disappearing?  Doesn't that sound familiar Detective Baluja?  Could all these missing documents be sitting next to all your missing documents relating to the Barrera fraud that mysteriously walked out of your case file?  More...
In a number of pending cases in Florida, defense lawyers there said, GMAC has already withdrawn affidavits. The lawyers said they would try to have the cases thrown out for possible fraud, although they acknowledged that might be difficult. 
Oh no shit?  So how do all these lenders and their fine attorneys explain what's going on?  You'll be shocked...
In depositions taken by lawyers for homeowners, executives at GMAC and Chase said they or their teams signed 10,000 or more affidavits and related documents a month. That did not give them time to review the cases. 
No kidding?  How about that ASA Kostrzewski?  They didn't have the time to read the documents or their boilerplate content?  Are you going to be staying up till four in the morning to prepare an arrest affidavit for these instances of fraud like you did the Barrera Mortgage Fraud case?  Yeah right.  The chances of our favorite veteran economic crimes prosecutor Bill Kostrzewski doing anything against these types of fraud are slim to none.

I got to get away from the computer for now, this story got me so worked up that I'm about to throw the monitor out the window.  We'll discuss next week.

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