This page has been archived and commenting is disabled.

Congressman Grayson: "Breaking and Entering Does Not Become Legal Just Because a Big Bank Does It. The Rule of Law Must Apply Equally to Everyone"

George Washington's picture




 

Washington’s Blog

Congressman Alan Grayson's office sent me the following statement by the Congressman on the rampant foreclosure fraud, and the unlawful breaking and entering into people's homes by the banks:

First
we see systemic fraud in the foreclosure process. Now we're literally
seeing banks breaking into people’s homes and terrifying homeowners.
The big banks claim these confrontations are a result of innocent
errors. Come on! How many times are we going to force a woman to cower
in her bathroom for fifteen minutes and dial 911 while a man breaks
into a home, before we do something about it?

Breaking and
entering does not become legal just because a big bank does it. The
rule of law must apply equally to everyone. It's long past time to halt
this blatantly illegal activity. We need investigation and law
enforcement, not coddling of failed institutions. We need justice for
all.

In releated news, Conyers and Kilpatrick Demand Lenders Extend Housing Foreclosure Moratorium to Michigan; No More Foreclosures Until Fraudulent Paperwork is Resolved:

Sent to me by a friend on the Hill.

From the office of: Fourteenth District, Michigan
Congressman John Conyers, Jr.
Chairman, House Judiciary Committee
Dean, Congressional Black Caucus

Press Release

Conyers
and Kilpatrick Demand Lenders Extend Housing Foreclosure Moratorium to
Michigan; No More Foreclosures Until Fraudulent Paperwork is Resolved

Contact: Nicole Triplett
202-226-5543

Washington,
DC- Today, Congressman John Conyers, Jr. (MI-14) and Congresswoman
Carolyn C. Kilpatrick (MI-13) called on lenders to extend their
foreclosure moratorium to Michigan and other states and to cease
administering foreclosures until the problem of fraudulent paperwork is
resolved.

The revelation that large mortgage lenders may have
been evicting families from their homes based on flawed and erroneous
documentation is no small matter. These lenders may have presented
false affidavits - that is, sworn legal testimony - in thousands of
cases fraudulently stating that a homeowner was in default or that the
lender had the legal right to foreclose on the property, without the
proper verification of the facts asserted in those affidavits.
Moreover, the admission by these lenders of inaccurate documentation
raises broader questions about whether they are proceeding with
foreclosures in non-judicial foreclosure states based on faulty
documentation or information. It is crucial that these lenders are held
accountable.

Michigan is among the hardest-hit foreclosure
states in the Nation. In August 2010, the state’s foreclosure rate
increased 128% over August 2009 and it remains among the top five states
in the Nation in foreclosure totals. Michigan's foreclosure rate rose
29% in the first half of 2010 over the first half of 2009. Metropolitan
Detroit showed an increase of 35% during that same time period, rising
to the highest level since 2007. In July 2010 alone, 1 in 241 housing
units in Michigan received a foreclosure filing. In Wayne County, the
number was 1 in every 158.

In response to numerous recent reports
of false foreclosure affidavits and other apparently fraudulent
activities by home mortgage lenders, Reps. Conyers and Kilpatrick,
today, sought the following actions:

· Lenders
should extend moratoriums on home foreclosures to all states, including
Michigan, rather than just those states with judicially supervised
foreclosures.

· Lenders that have initiated moratoriums
should insure that they actually prevent foreclosures rather than just
evictions subsequent to foreclosures.

· The Federal
Housing Finance Agency, which oversees Fannie Mae and Freddie Mac,
thereby controlling a major portion of mortgages subject to foreclosure
in the U.S., should review its procedures for proper compliance and
also consider initiating a foreclosure moratorium

At the
same time, Conyers announced plans to investigate mortgage lenders to
learn more about their foreclosure practices, including paperwork
violations and false affidavits, and ascertain what can be done to
protect homeowners from possible abuses. As part of this effort,
Conyers is asking the Federal Housing Finance Agency – the federal
agency charged with overseeing Fannie Mae and Freddie Mac – to ensure
that they abide by the law, to consider initiating a moratorium, and to
conduct an audit of their actions. In addition, Conyers will be calling
upon the DOJ’s Executive Office for U.S. Trustees to investigate the
extent to which false affidavits have been filed in bankruptcy cases by
lenders seeking to foreclose on debtor’s homes.

Thus far, only
three lenders – Ally Financial (parent of GMAC Mortgage), Bank of
America, and JP Morgan Chase – have ceased post-foreclosure enforcement
actions in 23 states that have court- controlled foreclosure
proceedings: Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico,
New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania,
South Carolina, South Dakota, Vermont, and Wisconsin. Even those
lenders appear to have only ceased evictions, while they continue to
engage in foreclosures, which take title from homeowners.

At this
point Michigan and 26 other states are not on the moratorium list for
these lenders, purportedly because they have a non-judicial foreclosure
process. However, without judicial oversight, the possibility of abuse
can be even greater in these states. As a result, elected state
officials in non-judicial foreclosure states such as California,
Colorado, Texas, Massachusetts, and Maryland have recently asked lenders
to suspend their foreclosures.

Widespread concern about
documentation abuses in the mortgage industry is not limited to state
officials. Yesterday, House Speaker Nancy Pelosi and other members of
the California congressional delegation called on the Justice
Department, the Treasury Department, and the Federal Reserve to
investigate large mortgage lenders’ handling of delinquent mortgages,
mortgage modifications, and foreclosures. Additionally, Senators Robert
Menendez (NJ) and Al Franken (MN) called on the Government
Accountability Office to investigate the role of federal government
entities charged with overseeing the mortgage lending industry to
determine how they allowed lenders’ misconduct to occur without
detection for so long. Also, Members of Congress from Maryland and
Arizona – two non-judicial foreclosure states - called on large lenders
to halt foreclosures in their states.

“It makes little sense to
limit the moratoriums to judicial foreclosure states when many of the
same errors and paperwork flaws likely plague non-foreclosure states,”
said Conyers. “When the very same lenders that ignored the rules which
helped get us into the real estate bubble are placed in charge of the
foreclosures that are exacerbating the problem, locking millions of
Americans in a financial trap they cannot escape from, we have a
situation that is spiraling out of control and cries out for
intervention.”

“Given the depth of the financial calamity in
Michigan and other states, the huge number of foreclosures, and the
chain reaction of problems involving foreclosures that has impacted
communities and individuals, I would urge home mortgage lenders to cease
their foreclosure activities,” said Conyers. “Rather than spending
their time running mass production foreclosure mills, the lenders should
be working with individuals to keep families in their homes and
restructure their loans.”

“Home foreclosures affect individual
families and devastate entire communities,” said Congresswoman
Kilpatrick. “For home foreclosures to proceed under false pretenses is
patently unwarranted and unfair. I am proud to join one of the founders
of the CBC and Chairman of the House Judiciary Committee in this
clarion call for justice, fairness, and equality to Michiganders and all
Americans.”

###

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 10/07/2010 - 07:14 | 631716 williambanzai7
williambanzai7's picture

Did he vote for the notary law?

Just wondering.

Thu, 10/07/2010 - 06:26 | 631685 GFORCE
GFORCE's picture

Same old rhetoric and empty threats. Nobody gets charged, nothing gets done.

Thu, 10/07/2010 - 01:21 | 631398 caconhma
caconhma's picture

The ZeroHedge and its bloggers are pathetic:  is it OK to live in houses indefinitely rent-free?

There are two totally different issues:

  1. If "homeowners" do not pay their mortgages then their houses must go into speedy foreclosures.
  2. The rules of Law  must be followed and enforced. These rules must be applied to EVERYBODY.

Shit, you people speak from both sides of your mouth simulteniously. WOW!

Thu, 10/07/2010 - 05:08 | 631540 OldTrooper
OldTrooper's picture

The ZeroHedge and its bloggers are pathetic

So go somewhere else.

But if you really want to discuss Rule of Law perhaps you can tell me where perjury on the part of lenders fits in with that.

Your precious "speedy foreclosures" have become an excuse for sloppy legal work and perpetrating fraud on the courts.

Thu, 10/07/2010 - 03:30 | 631509 williambanzai7
williambanzai7's picture

I think you mean "Rule of Law" but we are discussing "Their Rule of Law" which is above the traditional Rule of Law as we were taught in law school.

I detest a fat bailout pig who makes a mockery of my Constitution exponentially more than the deadbeat pikey fighting with the foreclosure burglars.

Pardon the lawyer talk.

Thu, 10/07/2010 - 00:09 | 631309 Augustus
Augustus's picture

The more it costs to foreclose, the larger the deficiency judgement against the original borrowers.  Hold it off for a while longer and then owe more later.  Wise move Grayson, very Wise.

Grayson is the fraud.  It makes him feel good to tell a lie.  He feels good every time his lips move.

The rule of law will apply to the lenders, just apply it and quit jacking your jaws for propaganda, Grayson.  If lenders have damaged property then they will owe for the damages.

 

Wed, 10/06/2010 - 23:17 | 631218 Paul Bogdanich
Paul Bogdanich's picture

And this is the major SIN of Obama the miserable jug eared fuck.  No prosections.  None, Zero, Zip, Nada.  While he is looking forward the statute of limitations on the financial crimes are expiring.  Under his administration the people that were in charge of home loan fraud are now in charge of forclosure without any prosecutions.  Get it yet you assholes?  Freaking prosecute the assholes.      

Wed, 10/06/2010 - 23:09 | 631200 DTCC 1999
DTCC 1999's picture

 

Could some financial institutions want a lot of failure to consolidate ownership of assets and then be bailed out?  

The FHA has taken over guaranteeing mortgages, at as low as 3% down, with capital reserves that don’t come close to covering.  Between that fannie and freddie the taxpayer is covering almost half of the 11 trillion housing market.  Mean while, under water home owners can’t refinance to current interest rates.    

I think there is something to the following:  

"In their seminal work, A Monetary History of the United States, Milton Friedman and Anna Schwartz reported that mark-to-market accounting rules caused banks to fail in the Great Depression, not from bad loans, but from writing down bond values at the behest of regulators. And as William Isaac, former head of the FDIC, tells us in his submission, FDR eventually called together a panel in 1938 that suspended those rules. By then the Depression had lasted eight years. We hope our current government leadership understands this history. -- R. Emmett Tyrrell, Jr." http://spectator.org/archives/2008/12/11/market-value-accounting-crippl

 

Wed, 10/06/2010 - 23:01 | 631187 trav7777
trav7777's picture

did Grayson vote against the notary immunization bill?

The only recourse we're gonna have is civil disobedience at the local court and then State level.

Gonna provoke some kind of supremacy clause crisis if the WHOLLY OWNED Federal government isn't reclaimed

Wed, 10/06/2010 - 22:49 | 631162 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Speaking of building collapses, breaking news on 9/11 truth.  Firefighters say there were bombs in the buildings.

Video @ 1:02:

http://www.youtube.com/user/fairinfowar#p/c/A087E8167E35AC16/4/yh_vL0A4W7w

Wed, 10/06/2010 - 23:53 | 631281 RockyRacoon
RockyRacoon's picture

Lousy segue there, Mr. Hendrix.   Definitely off topic.

Thu, 10/07/2010 - 01:41 | 631432 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

What's wrong Rocky?  Did your girl run off with another guy?

Thu, 10/07/2010 - 00:26 | 631335 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Excuse me.

Thu, 10/07/2010 - 01:08 | 631375 i-dog
i-dog's picture

This is Fight Club: Don't apologise. Better to have it slip in OT than not to slip in at all!

There are still waaaay too many tax livestock who think the big bad wolf (muslims) did it rather than the psychopathic shepherd (oligarchs and their captive government organs).

It was that single piece of staged theatre that simultaneously enabled the oligarchs to gain another $400 billion a year in tax-free income (from revived Afghani opium/heroin) and to implement a compliant police state -- with no more constitutional rights -- in the US and UK to better control the tax livestock during the "financial troubles" ahead.

Thu, 10/07/2010 - 01:48 | 631439 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The majority of the families of the victims want a new investigation; the majority of the commission itself said they did not have enough credible evidence to form a proper conclusion.  So we continue to search; it may be through clouds of smoke, and dust, but this journey will not go unknown.

Thu, 10/07/2010 - 06:26 | 631684 Bringin It
Bringin It's picture

Thanks LH.  People are so in denial about this monster-topic that it is never off topic.  It's like going into a crowded theater and yelling it's on fire ... when it really is on fire! 

Hell, the patron's clothes are even on fire, there's smoke everywhere ... and the cattle are still saying "Fire? What fire? I don't see any fire.  Do you see a fire?"

 

Wed, 10/06/2010 - 21:36 | 630994 mynhair
mynhair's picture

Grayson is still a certifiable moron.

Wed, 10/06/2010 - 23:52 | 631279 RockyRacoon
RockyRacoon's picture

The Congress folk who say nothing are the morons.

I hereby deny your junking.

Wed, 10/06/2010 - 21:48 | 631013 Kelly
Kelly's picture

A useful tool?

Wed, 10/06/2010 - 22:20 | 631075 Orly
Orly's picture

Please see above...

Wed, 10/06/2010 - 21:33 | 630988 DavidC
DavidC's picture

Yup, which is why the stock market continues to GRIND its way higher...

DavidC

Wed, 10/06/2010 - 20:52 | 630922 Orly
Orly's picture

Does no one else get the sinking impression that all of this hulla-baloo involving the banks is just a bit orchestrated?  I mean, how else can you "ease" out of an extremely overbought crisis than to have some "systemic" events that will allow the Fed to ramp down the mo'POMO action, while convincing the home-gamer to buy the dips?  "Welp.  Gotta stop foreclosures..."

Man, these people are the true masters of mass hypnosis; the greatest propaganda machine of all time, bar none.

Friggin' scary because most people will believe the sideshow and fall for their Jedi mind tricks hook, line and sinker- including people who should know much better.

Something's up with this.  Watch the charts for deliberate reversals.  My spidey-sense is tingling...

"?

Thu, 10/07/2010 - 04:50 | 631533 OldTrooper
OldTrooper's picture

Watch what the other hand is doing - always good advice with these guys.  I too sense a great disturbance in the Force.

Wed, 10/06/2010 - 20:41 | 630899 f16hoser
f16hoser's picture

Then start throwing these people in jail! Politicians talk tuff but in the end they do nothing! I'm wondering how much BAC gave Grayson for campaign funds last time around???? Once politicians accepy money, they're impotent to do anything against big banks/business. After the elections this Fall, we won't hear a peep from politicians as they quietly pass meaningless laws and raise their salaries/pensions........better hurry, FIAT dollars are crashing. Better just take Gold directly from the Treasury. Would not surprise me if they already have!

 

Hoser

Wed, 10/06/2010 - 20:36 | 630889 Kina
Kina's picture

Each neighbourhood should form a home protection squad who when altered to a 'home breaking' can come to the rescue - to ensure proper warrants / legal requirements have been met.

 

People are using the authority of a Big Bank to simply break and enter without reference to law. These people should also be targetted for prosecution.

Thu, 10/07/2010 - 00:51 | 631365 i-dog
i-dog's picture

That is one of the best practical suggestions I have seen in a while!

Small groups of citizens banding together to protect their legal and constitutional rights (as long as there are many such groups) will eventually defeat the hydra.

Wed, 10/06/2010 - 20:32 | 630881 floydian slip
floydian slip's picture

Send Lawyers, Pitchforks and Money

TSHHTF

Wed, 10/06/2010 - 20:45 | 630909 TheMerryPrankster
TheMerryPrankster's picture

+10

obtuse & obscure Warren Zevon reference

Wed, 10/06/2010 - 19:53 | 630803 detersbb
detersbb's picture

Ohio Attorney General Sues GMAC, Seeks $25,000 Per False Affidavit

"The Attorney General is treating every single false affidavit filed in an Ohio court as a separate violation, with a fine of up to $25,000, plus additional restitution for the homeowner of an unspecified amount."

http://news.firedoglake.com/2010/10/06/ohio-attorney-general-sues-gmac-s...

This Attorney General has sent out letters requesting a meeting with the other major lenders in Ohio.  The article estimates that this lawsuit will exceed a $10 BILLION settlement, and that is only for GMAC/Ally, and only in the State of Ohio.  The other lenders to follow, and other states will likewise file suit.

The point that I am interested in is what you think about a RICO case brought by individual states against the Federal Government who stands behind Freddie/Fannie that stand behind so many foreclosed mortgages, that has at best been complicit in this Racket, at worst active participants through the Federal Reserve, Treasury Department, SEC, etc...

The way that I see this 28 USC 3002 15(a) defines in judicial proceedings and banking matter the United States as a "Federal Corporation."  The RICO suit, which will be rather easy to prove from the evidence I have read myself, would allow the States to legally dissolve the union through asset forfeiture, and hence, no need for the headache of succession, dealing with the national debt, feral law supremacy, etc...

Just interested in seeing what you all thought.

Thu, 10/07/2010 - 07:58 | 631754 groucho_marxist
groucho_marxist's picture

This sounds like a great idea...right up until the next bailout happens to be needed to pay these fines.

How about jail time instead? This should be RICO, and national, not state-by-state. It's a systemic conspiracy to defraud.

Wed, 10/06/2010 - 20:56 | 630927 Milestones
Milestones's picture

 

|This was posted on the Daily Bell today. We apparantly have a new pretender to the throne in play.

  • |
  • IMF Article Predicts New World Order
10/06/10
Reply  ?

 

http://gfx2.hotmail.com/mail/uxp/w4/m3/pr16/ic/iciconmap24w4.png);" src="http://gfx2.hotmail.com/mail/uxp/w4/m3/pr16/is/invis.gif" alt="" /> Editor@TheDailyBell.com Add to contacts
To TDB Subscriber From: Editor@TheDailyBell.com (Editor@TheDailyBell.com) Sent: Wed 10/06/10 8:50 PM To: TDB Subscriber (carlrite@hotmail.com)
Wed, 10/06/2010 - 20:45 | 630912 Milestones
Milestones's picture

Man, that would really be a load--but avery interesting concept. I would think a RICO suit against the Federal Reserve and the large banks might be a better shot. The discovery would have to be out of this world and would probably have to be enforced by the 3rd Armored Division. Interesting post.  Milestones

Wed, 10/06/2010 - 19:52 | 630794 MarketTruth
MarketTruth's picture

“For home foreclosures to proceed under false pretenses is patently unwarranted and unfair."

 

WTF???  How about saying it is ILLEGAL!!!!!! GROW A PAIR!!!!!!!!!! In a sense, this is proof no bankster will EVER go to jail for their illegal activities. And that is total bullshit!!!!!!!!!!!!!!

Wed, 10/06/2010 - 21:31 | 630986 Cistercian
Cistercian's picture

 On the upside, if they break into your house, shoot them.

  Just shoot them...they obviously intend harm...

Thu, 10/07/2010 - 01:25 | 631402 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Garlic?  Crucifix maybe?

Thu, 10/07/2010 - 06:59 | 631591 MarketTruth
MarketTruth's picture

You make a good point, as killing them is totally legal so the choice is in what manner to do so. There are so many choices available and how much and how long does one choose for the offender to suffer in pain before their ultimate demise? Please remind me, how long have Americans suffered due to the fradulent financial system?

Perhaps my above post is a type of warning to those types who want to conduct illegal activities within my home.

Wed, 10/06/2010 - 19:40 | 630765 Cistercian
Cistercian's picture

 What can I say George...your work is excellent.

  Thank you.

 PS: BP is evil.

Wed, 10/06/2010 - 19:38 | 630763 weinerdog43
weinerdog43's picture

Where the hell are the rest of those gutless, bought off Congressional cowards?  Are they that in the tank? 

Wed, 10/06/2010 - 22:02 | 631043 BobWatNorCal
BobWatNorCal's picture

"The rule of law must apply equally to everyone."
Can you really write this and have Conyers in the same article?
How about Turbo Tax Timmy?

Wed, 10/06/2010 - 21:57 | 631024 earnyermoney
earnyermoney's picture

Where were these 3 clowns months ago? Only reason they express intrest in this at the moment is Nov. 2nd. Just a cynical side show.

 

Everyone else is kissing arse.

Thu, 10/07/2010 - 04:39 | 631528 OldTrooper
OldTrooper's picture

My thoughts exactly.

Wed, 10/06/2010 - 19:26 | 630734 Lndmvr
Lndmvr's picture

Crap, the ONLY room in the house without a fully loaded, ready to rock and roll weapon was my bathroom. Good thing the gun show is in a week. Somehow I just can't believe uninvited guests actually can get inside a home in this day and age.

Wed, 10/06/2010 - 19:59 | 630816 LeBalance
LeBalance's picture

may i suggest a speargun, that would be properly themed for your unarmed room.

Wed, 10/06/2010 - 19:58 | 630815 Henry Chinaski
Henry Chinaski's picture

Hah!  The master bath in our house is the "safe room" and fully loaded and ready to rock.  I have children and prefer not to leave loaded firearms about the house. 

If that locksmith did his magic here he might not have been shot, but would have left with a full load in his drawers.

Wed, 10/06/2010 - 19:19 | 630725 truont
truont's picture

The thugs who really rule this country are starting to flex their muscle...

...they are getting deperate, indeed...

Thu, 10/07/2010 - 00:36 | 631353 Miles Kendig
Miles Kendig's picture

All out in the open without dressing or anything.

Wed, 10/06/2010 - 19:04 | 630699 Miles Kendig
Miles Kendig's picture

Judicial Exclusion has been the policy of the government of the United States for some years.  After all, who would serve at the pleasure of the president, or on behalf of the office if there weren't some protections.  Too bad the concept of legal profolaxysis for the whole of society breaks down over this and related concepts. 

Prosecuting government officials risks a “cycle” of criminalizing public service, [Sunstein] argued, and Democrats should avoid replicating retributive efforts like the impeachment of President Clinton — or even the “slight appearance” of it.

- Cass Sunstein

http://jonathanturley.org/2008/07/21/obama-adviser-cass-sunstein-rejects-prosecution-of-possible-bush-crimes/

http://www.youtube.com/watch?v=S4v2Z8RF_Dc

Wed, 10/06/2010 - 19:44 | 630780 Careless Whisper
Careless Whisper's picture

meet the new boss, same as the old boss

http://www.youtube.com/watch?v=Rp6-wG5LLqE

 

Thu, 10/07/2010 - 02:28 | 631336 Miles Kendig
Miles Kendig's picture

Yep, they're called boss for a reason.  Boss as in Sorry Sons Of Bitchez ass backwards.

Nice classic ref.   

Wed, 10/06/2010 - 19:02 | 630687 kurt_cagle
kurt_cagle's picture

This process is not just going on with foreclosures. I've had a couple of instances in the last few months of debt collection agencies calling me to try to coerce payment of debts that were paid off five to seven years before.  Fortunately in both cases I was able to provide adequate documentation to show that they were "a wee bit confused" but I suspect it is a growing trend. My guess is that banks that ended up with zombie accounts when they merged with other banks sold these accounts to debt collectors for pennies on the dollar, getting the write off in the process. The agencies then sift through these accounts to pick up potentially delinquent accounts, and spend less than fifty dollars for agent time in order to get payments of thousands of dollars - with the original holders of the bank loans long gone, your chance of striking someone who may be unable to prove that their debt hasn't been paid is high - and then it's just a matter of shaking their victims down.

This is also one of these reasons I tend to doubt statements like "the banks are well funded". The banks are still broke - their liabilities are far more than any TARP or QE can eradicate - and they're now moving into a mode where they are just trying to get enough money to get the key shareholders cashed out before they can be quietly folded into the Friday night bank death-watch list.

Do NOT follow this link or you will be banned from the site!