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Elijah Cummings Asks Darrell Issa Why It Is Taking So Long To Subpoena The Big Banks On Fraudclosure

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Describing new evidence of illegal foreclosures, inflated fees, and other widespread abuses, Ranking Member Elijah E. Cummings wrote to Chairman Darrell Issa today to request that the Committee issue subpoenas to require mortgage servicing companies to produce previously-requested documents. “You have not hesitated—in other investigations—to issue subpoenas in a matter of days when your deadlines were missed, so it is unclear why a different standard applies to this investigation,” Cummings wrote.  “This same sense of urgency should apply even when the targets of the Committee’s investigation are banks.” On February 10, 2011, the Committee voted unanimously to investigate “the foreclosure crisis including wrongful foreclosures and other abuses by mortgage servicing companies.” “If mortgage servicing companies are allowed to disregard requests for documents that are integral to this investigation, the Committee’s integrity will be called into question and, more importantly, abuses may continue,” Cummings wrote. Today’s letter from Cummings marks the fourth in a series of letters he has sent to Issa over the past six months urging the Committee to take action on wrongful foreclosures and other egregious abuses by mortgage servicing companies. On May 24, Cummings sent a letter to Issa requesting that the Committee issue subpoenas to six mortgage servicing companies that have refused to provide documents relating to foreclosure abuses. “The best long-term solution that our Committee can offer in response to illegal acts committed by mortgage servicing companies is vigorous investigation, oversight, and reform,” Cummings added.  “Inaction will tacitly reward abuse and signal tolerance for major corporate wrongdoing.” So... what's wrong with that exactly?

Below is the letter.

June 21, 2010

The Honorable Darrell E. Issa
Chairman
Committee on Oversight and Government Reform
U.S. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

Today marks the six-month anniversary of my first letter to you requesting that the Committee investigate widespread and systemic abuses by mortgage servicing companies, including illegal foreclosures, inflated fees, and fraud against American homeowners.  This is now my fourth letter to you on this subject.[1]

In my previous letter on May 24, 2011, I requested that you issue subpoenas to six mortgage servicing companies that are refusing to provide relevant documents to the Committee.  My previous letters set forth in great detail the specific allegations of abuse committed by mortgage servicing companies and the specific steps I have taken to obtain the information voluntarily.  I have also provided you with copies of the written correspondence from the mortgage servicing companies stating in clear terms that they will not provide the necessary information unless duly authorized subpoenas are issued. 

Given this background, I was surprised when your spokesman stated that, although this is “an issue of clear bipartisan concern,” you needed “additional information” to decide on “the most appropriate next step.”[2]  You have been copied on every letter sent to the mortgage servicing companies and every letter they have sent back to the Committee.  You have not hesitated—in other investigations—to issue subpoenas in a matter of days when your deadlines were missed, so it is unclear why a different standard applies to this investigation.

As you know, Members of our Committee voted unanimously on February 10, 2011, to adopt the Committee’s oversight plan for this Congress pursuant to House Rule X, Clause 2(d).  The oversight plan states explicitly that the Committee will “examine the foreclosure crisis including wrongful foreclosures and other abuses by mortgage servicing companies.”[3]  If mortgage servicing companies are allowed to disregard requests for documents that are integral to this investigation, the Committee’s integrity will be called into question and, more importantly, abuses may continue.

Last week, in the context of a different investigation, you made a strong statement about the need for prompt action by the Committee.  You stated:  “[O]versight delayed is often oversight denied.  I believe that path would be unacceptable to the American public.”[4]

This same sense of urgency should apply even when the targets of the Committee’s investigation are banks.  The foreclosure crisis is affecting millions of Americans across the country, devastating communities, and impairing our nation’s economic recovery.  I am also particularly alarmed by increasing reports that U.S. servicemembers and their families have been illegally evicted from their homes and charged millions of dollars in unwarranted fees.[5]  For all of these reasons, I am writing again to reiterate my request for subpoenas and to provide additional information that has come to light since my last letter to you on this subject.[6]

 
New Data from SIGTARP

During our Committee’s first hearing on January 26, 2011, Neil Barofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), testified that the performance of mortgage servicing companies has been “abysmal” and that “stories of servicer negligence and misconduct are legion.”[7]

On February 25, 2011, I wrote to SIGTARP to request “a survey of the various complaints SIGTARP has received or is aware of relating to mortgage servicers” and “a categorization of the specific allegations of wrongdoing.”[8]  On May 31, 2011, SIGTARP officials responded by providing a breakdown of approximately 2,683 complaints they had received relating to the performance of mortgage servicing companies.[9]

According to SIGTARP, more than 27 percent of these complaints reported that mortgage servicing companies improperly foreclosed on homeowners who were enrolled in government modification programs.  According to SIGTARP, these homeowners reported that “they were victims of premature default or foreclosure proceedings.”[10]

In addition, more than 14 percent of these complaints reported that mortgage servicing companies improperly reported homeowners to credit bureaus, despite the fact that they were enrolled in government modification programs, “with the effect that their credit score decreased and their ability to secure credit was reduced.”[11]

SIGTARP officials also reported that more than 46 percent of these complaints reported that mortgage servicing companies lost or misplaced homeowner documents, “resulting in multiple documentation submissions or rejection or disqualification” from government programs intended to help families modify their mortgage loans to avoid foreclosures.[12]

Based on its review of these complaints, SIGTARP officials also reported that, “[t]o the extent that the complaints raise issues within SIGTARP’s jurisdiction, we have pursued criminal or civil investigations.”[13]

Regulators’ Findings of Improper Foreclosures and Other Abuses

On May 31, 2011, I wrote to the Office of the Comptroller of the Currency, the Federal Reserve, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation to request additional information on their recent “interagency reviews” of widespread foreclosure abuses by 14 mortgage servicing companies.[14]  Their public summary of these reviews, which was issued on April 13, 2011, made this finding:
 
[T]he weaknesses at each servicer, individually or collectively, resulted in unsafe and unsound practices and violations of applicable federal and state law and requirements.  The results elevated the agencies’ concern that widespread risks may be presented—to consumers, communities, various market participants, and the overall mortgage market. The servicers included in this review represent more than two-thirds of the servicing market.  Thus, the agencies consider problems cited within this report to have widespread consequences for the national housing market and borrowers.[15]

The summary also identified specific cases of improper foreclosures that violated federal law.  It stated:

 
[E]xaminers did note cases in which foreclosures should not have proceeded due to an intervening event or condition, such as the borrower (a) was covered by the Servicemembers Civil Relief Act, (b) filed for bankruptcy shortly before the foreclosure action, or (c) qualified for or was paying in accordance with a trial modification.[16]

To address these major systemic deficiencies, the regulating agencies issued “consent orders” that required these 14 mortgage servicing companies to hire private consultants to conduct a more thorough review of the files of affected homeowners.  More comprehensive reviews were necessary because the regulatory reviews covered a “relatively small number of files.”[17]  The regulating agencies directed the mortgage servicing companies to “determine any financial injury to borrowers caused by errors, misrepresentations, or other deficiencies identified in the review, and to remediate, as appropriate, those deficiencies.”[18]  They also directed the mortgage servicing companies to submit for their approval “engagement letters” establishing the terms of the review and the methodologies to be used.[19]  These engagement letters were due within 45 days of the date of the consent orders.[20]

Despite this deadline, none of the 14 mortgage servicing companies met this requirement.  On June 10, 2011, the Comptroller of the Currency and the Office of Thrift Supervision wrote to me to confirm that “final engagement letters do not exist.”[21]  On June 13, 2011, the Office of the Comptroller of the Currency announced that it was extending the deadline for mortgage servicing companies to comply with this requirement.[22]

 
Additional Information

In addition to the information above, there have been other troubling developments.  On June 13, 2011, for example, it was reported that the Office of Inspector General for the Department of Housing and Urban Development filed a sworn declaration stating that its review of foreclosures was “significantly hindered by Bank of America’s reluctance to allow us to interview employees or provide data and information in a timely manner.” [23]

A week earlier, on June 9, 2011, the Department of the Treasury for the first time withheld servicer incentive payments from Bank of America, Wells Fargo, and J.P. Morgan Chase for errors in calculating borrower income—a key determinant of eligibility under the Making Home Affordable program.[24]

On May 26, 2011, the Government Accountability Office issued a survey of problems reported by housing counselors who work for a network of approximately 130 non-profit housing agencies that receive funding through the National Foreclosure Mitigation Counseling Program.[25]  GAO reported that “over 78 percent of the counselors ranked ‘servicer lost the borrower’s documentation’ as one of the three highest challenges,” and that 53 percent of counselors accused mortgage servicing companies of “[s]traightforward miscalculations of annual income (e.g., confusing biweekly, semi-monthly, and weekly pay).”[26]

Conclusion

Like my home state of Maryland, your home state of California also appears to have been severely affected by the foreclosure crisis.  By the end of 2010, California ranked fourth in the number of mortgages that were 90 or more days delinquent or already in foreclosure.[27]  A survey of California housing counselors conducted by the California Reinvestment Coalition (CRC) in 2010 found that more than 60 percent of counselors “had clients who suffered foreclosure while negotiating with their loan servicer,” and nearly 80 percent reported that it is “very common for servicers to deny loan modifications because they claim not to have received all borrower documents.”[28]

In February, you were asked by San Diego Union-Tribune how you planned to address the foreclosure crisis in San Diego County.  In response, you said that the “best, long-term solution for relief of struggling homeowners is to find more and better jobs.”[29]

We fully support measures to promote job creation, but we cannot ignore illegal and abusive acts by mortgage servicing companies—which are precisely the subject of my request for subpoenas.  The best long-term solution that our Committee can offer in response to illegal acts committed by mortgage servicing companies is vigorous investigation, oversight, and reform.  Inaction will tacitly reward abuse and signal tolerance for major corporate wrongdoing.

To fulfill the Committee’s unanimously-approved oversight agenda, and to adequately investigate abuses against our constituents, we must obtain responsive documents from these mortgage servicing companies.  For these reasons, I request again that you authorize and issue subpoenas to compel the production of the previously-requested documents.  I appreciate your interest in these issues and look forward to working with you.

                                                            Sincerely,

           
                                                                        Elijah E. Cummings
                                                                        Ranking Member

 

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Tue, 06/21/2011 - 23:35 | 1390925 Trifecta Man
Trifecta Man's picture

Dylan Ratigan reported that 40% of campaign contributions have come from bankers.

Tue, 06/21/2011 - 23:37 | 1390931 I am Jobe
I am Jobe's picture

Yeap, all bought and paid for. Go vote and be heard they say while the bankers own the USA and the Politicians.

Tue, 06/21/2011 - 23:41 | 1390937 alien-IQ
alien-IQ's picture

Voting is hamster wheel.

Wed, 06/22/2011 - 00:09 | 1390958 I am Jobe
I am Jobe's picture

Imagine a campaign 365 days a year for 4 years and how would that be. As is they are already started 2 years ahead. Knowing well the Bankers have already bought the Politicians what difference does it make anymore?

Wed, 06/22/2011 - 01:36 | 1391048 eureka
eureka's picture

... and knowing Issa Is A Millionaire X 80 -what difference does it make...?

Well, to begin with, we can vote with our money - like Max Keiser's advices: 

Crash JPM - Buy Silver, don't use big banks, don't buy goods from large corporations, don't support US empire in any way whatsoever - and educate fundamentalists, neocons and nationalist and consumers all around us non-stop to do likewise.

Like rings in water our efforts will pay off; the empire will wither.

Wed, 06/22/2011 - 02:00 | 1391064 scaleindependent
scaleindependent's picture

They are waiting for the statute of limitations to run out on fraud.

They only have 1-2 years to wait. THEN, they will let the whole thing crash.

Wed, 06/22/2011 - 08:46 | 1391304 msamour
msamour's picture

There is no statute of limitation on Guillotines, boiled ropes, tar and feathers.

Wed, 06/22/2011 - 08:55 | 1391308 msamour
msamour's picture

Double post (for some odd reason website crashed).

Wed, 06/22/2011 - 00:22 | 1390975 Spirit Of Truth
Spirit Of Truth's picture

 Amsel (Amschel) Bauer Mayer Rothschild, 1838: "Let me issue and control a Nation's money and I care not who makes its laws"


Wed, 06/22/2011 - 01:12 | 1391020 TruthInSunshine
TruthInSunshine's picture

And boy, was he spot on, or what?

Say what you/I/we will about him and his litter, but that idea of controlling a nation's money supply and the other one about loaning money to governments (essentially securitizing her people as guarantee for repayment)...

...strokes of genius.

They both led to incredibly wicked events, where a handful of people profited mightily off of incredible human suffering...

...so I should have said strokes of evil genius.

Wed, 06/22/2011 - 01:50 | 1391054 Yes_Questions
Yes_Questions's picture

And boy, was he spot on, or what?

Indeed: they figured out how to grow a money tree and feed it terminally with the blood of Labor.

Wed, 06/22/2011 - 01:13 | 1391027 Freddie
Freddie's picture

Odd that none of you remember Obama's CRA lawsuits with ACORN back in Chicago to force banks to lend to people who could never repay the mtg.  Or the Dems, particularly the congressional black caucas with Barney Frank, blocking ANY oversight of Fanny and Freddie circa 2006-2007.  Fanny & Freddie giving out mtgs to anyone.  Both organizations are run like the post office with govt employees who are useless.

Wed, 06/22/2011 - 01:34 | 1391037 TruthInSunshine
TruthInSunshine's picture

Oh, you are correct.

Each of our political parties in this republic, operating in what's allegedly supposed to be something of a democracy under what's supposed to be a constitutional framework, are equally worthless - strike that - equally harmful.

Maybe that's because both of our parties/choices/poisons that are called political parties work for the exact same people, with those people definitely not being voters or constituents, and maybe it's because deep capture has turned them into rhetoric spewing dime store whores, available for a toss in the sack and good screwing of the citizens they allegedly represent, for the right bid.

And of course, much of this has to do with the fact that our incredibly honest Supreme Court, in the depths of its infinite and just wisdom, has declared that corporate-oligarch campaign cash enjoys equal footing as does "free speech" under the 1st Amendment to our Constitution -  brilliant!  /sarc/

Wed, 06/22/2011 - 11:00 | 1391792 ibjamming
ibjamming's picture

The SCOTUS is hand picked by the bought and paid for politicians...how else are they going to vote? 

It's like the wolves hand choosing the shepard/sheep dog team.

The basketball players hiring the referee.

Wed, 06/22/2011 - 01:35 | 1391047 TheMerryPrankster
TheMerryPrankster's picture

Without the post office I couldn't get silver delivered from Ebay.

The post office actually does accomplish what it was entrusted to do when it was established. You'd be better off comparing Fanny Mae and Freddy Mac to mustant zombie step children of a bastard marriage between the banks and the government.

 

Wed, 06/22/2011 - 02:20 | 1391090 Dugald
Dugald's picture

As an outside regular user of USPS, I think they do an outstanding job, considering they are operating in a country that is morally and financially bankrupt.

Wed, 06/22/2011 - 02:26 | 1391092 HungrySeagull
HungrySeagull's picture

The mail will get through one way or another. Have done since Pony Express.

 

That silver arrives registered mail. That is why they do such a good job. No "Mice" allowed digging in the pallets behind the dock.

Wed, 06/22/2011 - 10:41 | 1391686 Dental Floss Tycoon
Dental Floss Tycoon's picture

 

"Without the post office I couldn't get silver delivered from Ebay."

Actually even that is becomming problematic.  My daughters last silver purchase from Ebay was neatly slit open and the silver gone.  The package was contained in plastic bag with some gibberish about it being caught in the processing equipment.


Wed, 06/22/2011 - 02:02 | 1391063 eureka
eureka's picture

Dear Freddie, RE"force banks to lend to people who could never repay the mtg.  Or the Dems, particularly the congressional black caucas with Barney Frank, blocking ANY oversight of Fanny and Freddie circa 2006-2007.  Fanny & Freddie giving out mtgs to anyone."

Correct you are, however, keep in mind that the "force" you you refer to, is ordered by the elite, not for the sake of the loan recipients, but for the sake of blowing financial bubbles through the banking system, in order to sustain US empire, which the elite built and treassures as it supreme instrument of globalization; without US military might there would be no USD reserve currency and thus no US empire - which, like all empires, need bubbles, because they don't produce but only extract wealth and blow bubbles.

Cheap "liar loans" is a soundbyte designed to encriminate borrowers, but ask yourself "who has more power, borrower or lender?" The answer is not blowing in the wind, it is self evident.

And so, borrowers and their character, are not in any way EVER the relevant issue - rather the diligence or lack thereof - and the motivations - of the lender are PARAMOUNT to determining the moral standing of the contract.

The Tech Bubble and the Housing Bubble both burst - NEXT our current bond and stock bubbles will burst. The prefixes are incidental, the common denominators are crucial.

Remember: empires blow bubbles through banks/leveraged fantasy assets.

Blame empire - the common denominator of rot - not, borrowers, prefixes, incidentals.

See cause and effect clearly. See where power flows from - THAT is the source of all rot.

For the Buck Stops At The Top - Not The Bottom.

Wed, 06/22/2011 - 10:45 | 1391708 Dental Floss Tycoon
Dental Floss Tycoon's picture

 

+1

Nailed it!

 

Wed, 06/22/2011 - 05:20 | 1391134 sunnydays
sunnydays's picture

You said it correctly.  the banks actually run the U.S.  just like the AG investigation, it went no where.  the only thing that was coming out of it was the fact the banks were creating the settlement they wanted with the states.  Even though laws were blatantly ignored, not one single prosecution has happened against a banker.  Look how the big ones have constantly done illegal trades and so on.  Those are always glazed over, but if you or I even did one 1/100th of what the banks have done against the people, we would be thrown in jail.

 

 

Wed, 06/22/2011 - 10:47 | 1391734 Dental Floss Tycoon
Dental Floss Tycoon's picture

 

Governments and the power elite have a monopoly on crime and violence.  They prosecute anyone encroaching on their territory.


Wed, 06/22/2011 - 02:07 | 1391073 TheMerryPrankster
TheMerryPrankster's picture

The federal agency overseeing Fannie Mae and Freddie Mac, the taxpayer-owned mortgage finance giants, failed to refer to criminal investigators and other authorities almost 100 complaints about possible foreclosure abuse and mortgage fraud at the companies over a recent two-year period, according to a report issued late Tuesday by the inspector general of the Federal Housing Finance Agency.

http://www.nytimes.com/2011/06/22/business/22housing.html

Oversight Group Did Not Refer Housing Complaints By Published: June 21, 2011

While the report did not determine whether these and other complaints had merit, it said that the agency’s unresponsiveness to them was problematic.

“Failure to recognize and quickly provide law enforcement authorities with information about allegations of fraud and other potential criminal conduct presents a significant risk for the agency,” the report said.

The inspector general’s report is the third to assess the agency that acts as conservator for Fannie and Freddie, which have cost the taxpayer roughly $154 billion since they nearly collapsed in September 2008.

The assessment covers the agency’s responses to complaints raised by consumers as well as current and former employees of Fannie and Freddie. It covers a period from July 30, 2008, when the finance agency was created, to Oct. 31, 2010, when the inspector general began its operations.

“Millions of Americans have been touched by the housing crisis,” Steve A. Linick, the inspector general, said in a statement. “Increasingly, they have filed complaints about fraud, waste or abuse, including allegations of improper foreclosures and possible criminal activity. Those complaints deserve timely and responsible action by F.H.F.A.”

Meg Burns, senior associate director in the office of Congressional Affairs and Communications, said that the agency had a limited mandate to deal with consumer issues but that it agreed with the recommendations and would follow them.

Wed, 06/22/2011 - 06:38 | 1391154 Landotfree
Landotfree's picture

Nothing is going to happen to the bankers, why?  Because if we stopped the fraud of the system, there would be no system.  The system will collapse, then everyone will build the new system just like the old system.

Wed, 06/22/2011 - 10:53 | 1391744 Dental Floss Tycoon
Dental Floss Tycoon's picture

 

+1

To offset the junk.

 

Wed, 06/22/2011 - 07:27 | 1391197 tarsubil
tarsubil's picture

That leaves a mob funded dem from Baltimore as our only hope? I like our chances!

Wed, 06/22/2011 - 08:24 | 1391265 gwar5
gwar5's picture

Banks are the only ones left with any money. Financial services now make up almost 30 % of the entire economy.  Obama's biggest contributors 2008 were GS, JPM, and Citi; 2nd only to the UC system employees looking for a CA bailout.  

Tue, 06/21/2011 - 23:40 | 1390929 I am Jobe
I am Jobe's picture

Why ask such questions? Darrlyl Isa stands to benefit from the Big Banks. All bought and paid for.

Wed, 06/22/2011 - 01:35 | 1391042 Perseid.Rocks
Perseid.Rocks's picture

Not only that but he stands to be quickly assassinated if he goes up against his financial masters. Such are the wages of allowing a small group of financial superiors to infiltrate and completely control our government. These politicians know who the masters are, and they know the wages for disrespecting them.

Logically we know that a sovereign government doesn't need to borrow money from anybody to issue currency, but try to change the system now and you will quickly find your accounts drained and your home in accelerated foreclosure with the locks already changed.

Tue, 06/21/2011 - 23:40 | 1390930 Josh Randall
Josh Randall's picture

Issa the wealthiest man in the US House I believe, he is on the take like 90% of the rest of them - piss on him and his Tough Guy rhetoric 

Tue, 06/21/2011 - 23:39 | 1390933 alien-IQ
alien-IQ's picture

Welcome to another episode of "Who's Your Daddy?"...where banks get to show America, in no uncertain terms, who really runs this country and who the laws really do and do not apply to.

Get the laugh track ready...this one promises to be a screamer.

Tue, 06/21/2011 - 23:40 | 1390935 theopco
theopco's picture

Who knew that E.E. Cummings could write?

Wed, 06/22/2011 - 01:47 | 1391053 TheMerryPrankster
TheMerryPrankster's picture

nobody loses all the time

i had an uncle named Sol

who was a born failure and nearly everybody said he should have gone into vaudeville perhaps because my Uncle Sol

could sing McCann He Was A Diver on Xmas Eve like Hell Itself which may or may not account for the fact that

my Uncle Sol indulged in that possibly most inexcusable of all to use a highfalootin phrase luxuries that is or to wit farming

and be it needlessly added my Uncle Sol's farm failed because the chickens ate the vegetables

so my Uncle Sol had a chicken farm till the skunks ate the chickens

when my Uncle Sol had a skunk farm but the skunks caught cold and died

so my Uncle Sol imitated the skunks in a subtle manner or by drowning himself in the watertank

but somebody who'd given my Unde Sol a Victor Victrola and records while he lived presented to him upon the auspicious occasion of his decease a scrumptious not to mention splendiferous funeral with tall boys in black gloves and flowers and everything and

i remember we all cried like the Missouri when my Uncle Sol's coffin lurched because somebody pressed a button

(and down went my Uncle Sol and started a worm farm)

 

e.e. cummings - nobody loses all the time

http://www.americanpoems.com/poets/eecummings/314

Wed, 06/22/2011 - 01:48 | 1391056 Freddie
Freddie's picture

+1

Wed, 06/22/2011 - 05:07 | 1391132 scatterbrains
scatterbrains's picture

At first I thought this Cummings letter was just to turn the screws on the masters to get them to scold Issa and crew for going after Eric place holder for the gun running operation down in Mexico but if this is Cumming's 4th letter then it sounds as though he is trying to shine some light on these crooks.

Tue, 06/21/2011 - 23:42 | 1390939 Temporalist
Temporalist's picture

Like Nouriel Roubini said, the reason why they aren't investigated and prosecuted is because then you'll find the culprits.

 

Wed, 06/22/2011 - 00:13 | 1390957 Bay of Pigs
Bay of Pigs's picture

Exactly why Issa stalls and stonewalls any real investigation. It would lead right to his wealthy banker donors feet.

What a useless prick he is. 

Wed, 06/22/2011 - 01:59 | 1391071 scaleindependent
scaleindependent's picture

They are waiting for the statute of limitations to run out on fraud.

They only have 1-2 years to wait. THEN, they will let the whole thing crash.

Wed, 06/22/2011 - 01:59 | 1391072 scaleindependent
scaleindependent's picture

They are waiting for the statute of limitations to run out on fraud.

They only have 1-2 years to wait. THEN, they will let the whole thing crash.

Wed, 06/22/2011 - 00:07 | 1390941 G-R-U-N-T
G-R-U-N-T's picture

"Elijah Cummings Asks Darrell Issa Why It Is Taking So Long To Subpoena The Big Banks On Fraudclosure"

 

http://www.youtube.com/watch?v=QnDn_iMdVGo&NR=1

 

The usual half measures residue from our elected political pussies. Always seem to start out strong but in the end fail to achieve what is right and just.

 

Tue, 06/21/2011 - 23:52 | 1390945 Fred Hayek
Fred Hayek's picture

Isn't it amazing how congressmen who are utterly useless rump swabs for power when they're in the majority suddenly discover some value in truth when they're voted into the minority? And how the opposite also holds true?

Lord Acton was soooooo right about power.

Tue, 06/21/2011 - 23:53 | 1390947 user2011
user2011's picture

I can see there is a red laser dot on Elijah's forehead.   How dare anyone dare to bring our bankers to justice. 

Wed, 06/22/2011 - 07:34 | 1391201 tarsubil
tarsubil's picture

Right. This is what the bankers probably like to call a "controlled burn."

Tue, 06/21/2011 - 23:58 | 1390949 TruthInSunshine
TruthInSunshine's picture

I just want to say these are my waters that I swim in, and that, yes, I really am tied in with what's happening, and without getting into elaborate detail, the shit is going to hit the fan on the whole MERS fraud (it is and always was a legal fraud and artifice, built to circumvent strict liability recording statutes and title laws of the individual states).

There have been a lot of legal rulings as of late very adverse to MERS and any legal action to pursue or even maintain standing in foreclosure proceedings where a MERS assignment (at any point) has infected the chain of title.

This will be a crisis that takes a decade or more to resolve, and will cost many entities purporting to hold title to real properties (think the big banks still claiming they hold title), as well as GSEs (think Freddie & Fannie) and the Federal Reserve & FDIC, hundreds of billions, if not trillions, of dollars.

On top of that, the put backs from investors are going to be staggering.

There's going to be some sort of grand scale governmental intervention soon, which will only complicate matters, as we have a very conservative SCOTUS on issues of states' rights (which title and property law revolve around), and the federal government will struggle to cobble a solution together that will alleviate or 'fix' what's already been broken, without running afoul of the SCOTUS.

It's going to be epic.

On an unrelated note:

PIMCO Head Predicts Greece, Others Will Default

 

 

Wed, 06/22/2011 - 00:39 | 1390985 Boxed Merlot
Boxed Merlot's picture

..the whole MERS fraud (it is and always was a legal fraud and artifice,...)

 

The term used in the NY ruling recently is "Bifurcation".  Any institution guilty of bifurcation has essentially killed the deal at that point in time.  All agreements are to be considered invalid from then and to be unwound in favor of the victim(s) of the institution's criminal conduct.

 

Any servicing of a bifurcated mortgage has essentially been a voluntary act on the part of the payee and by all rights should be refunded or applied as principle only at the choice of the payee, due to the note being no longer available for possession even if / when the promissory note is serviced in full.

 

If a physical deed of trust is seperated, it cannot stand on it's own and must then revert back to the issuing agent, i.e. local jurisdiction that collects tax revenue for it.  Assignment can then be made as a legal proceedure taking into account the victim / aggreived party that suffered loss as a result of the institution having bifurcated the mortgage in the first place. 

 

Legal wrangling will undoubtedly occur, but unwinding the deal to the point of bifurcation is the key, and not when payments stopped being paid.  imho.

Wed, 06/22/2011 - 00:55 | 1390997 SilverIsKing
SilverIsKing's picture

"This will be a crisis that takes a decade or more to resolve..." Should I pencil in 2060-2070 as this decade you refer to?

Wed, 06/22/2011 - 01:04 | 1391005 Yes_Questions
Yes_Questions's picture

I really am tied in with what's happening, and without getting into elaborate detail, the shit is going to hit the fan on the whole MERS fraud

Like a monkey ready to throw poo, I was poised to shout GOOD!!!

But, your post makes me want to hide instead.

Or hand over $700bil.

Wed, 06/22/2011 - 02:02 | 1391075 scaleindependent
scaleindependent's picture

 

 

You are right, but THAT decade you speak of will occur well after any statute of limitations on fraud and theft have run out. Then, and only after they have pillaged the WORLD will they allow it to crash.

Wed, 06/22/2011 - 06:21 | 1391149 Ace Ventura
Ace Ventura's picture

"...as we have a very conservative SCOTUS on issues of states' rights (which title and property law revolve around), and the federal government will struggle to cobble a solution together that will alleviate or 'fix' what's already been broken, without running afoul of the SCOTUS."

You mean the same SCOTUS which ruled in the Kelo decision? The same one which decided corporations are 'people' too, and thus allowed to stuff political campaign coffers ad infinitum? The same SCOTUS that continually refuses to hear the Obama legitimacy case, and which likewise has decreed that the government has no obligation to answer petitions for grievances (go pound sand, peasant)?

I agree with your post, but I find the SCOTUS to be nothing more than an equally corrupt gaggle of elitist enablers, just as bought-and-paid for as the parasites in Con-gress. They will rule as they are told to rule.

Wed, 06/22/2011 - 00:05 | 1390954 I am Jobe
I am Jobe's picture

Nothing new. This is just a nother dog and pony show and as usual a hearing, and a report and then it will be shoved in the bottom of the pile. No wonder USA is in such a mess.

Wed, 06/22/2011 - 00:13 | 1390959 AlaricBalth
AlaricBalth's picture

Mr. Issa has received well over $500,000 in campaign and PAC contributions from the financial sector since being elected to the House. That amount is quite enough to thwart a proper investigation.

Wed, 06/22/2011 - 00:16 | 1390963 I am Jobe
I am Jobe's picture

Yeap this should pretty much twart anything. I am sure he is concerned about America and putting Americ's interest first by raping every US Citizen thru the bankers.

Wed, 06/22/2011 - 00:19 | 1390964 karzai_luver
karzai_luver's picture

One of the other useless eaters up there said the following:

 

"We are here to service the banks"

 

I think that is nuff said.

 

Wed, 06/22/2011 - 06:33 | 1391151 Mr Kurtz
Mr Kurtz's picture

+1, "nuff said".

Wed, 06/22/2011 - 00:19 | 1390970 Lionhead
Lionhead's picture

"“The best long-term solution that our Committee can offer in response to illegal acts committed by mortgage servicing companies is vigorous investigation, oversight, and reform,” Cummings added.""

Translation: The best long-term solution that our Committee can offer in response to these questionable acts committed by mortgage servicing companies is a quick & dirty investigation, extend and pretend legislative effort, and a vigorous lobbying effort to suppress any regulation of said questionable acts. Cummings added. 

In other words, the rule of law in the USA is now gone & don't expect anything from us in weinerville. This expose is only for re-election purposes & not to be construed with anything of any substance.

Wed, 06/22/2011 - 00:37 | 1390984 azusgm
azusgm's picture

Extend and pretend until the statute of limitations has run out.

Wed, 06/22/2011 - 00:44 | 1390989 Yes_Questions
Yes_Questions's picture

Extend and Pretend til the next election season. 

Then just pretend.

These cretins don't care about you, they don't fucking care, they don't give a shit about you and i.  We don't belong to their club.

Or whatever profit Carlin said.

Wed, 06/22/2011 - 01:56 | 1391060 TheMerryPrankster
TheMerryPrankster's picture

http://www.youtube.com/watch?v=i5dBZDSSky0

It's a big club and we aren't in it,

but we get to pay for it.

Wed, 06/22/2011 - 00:20 | 1390973 snowball777
snowball777's picture

Darrell Issa career FIRE Sector contribs: $524,439

...for a song, bitchez.

Wed, 06/22/2011 - 00:44 | 1390986 Yes_Questions
Yes_Questions's picture

Darrell Issa is a career human impersonator.

Wed, 06/22/2011 - 00:58 | 1391000 snowball777
snowball777's picture

Totally gives it away when he licks his own eyeballs.

Wed, 06/22/2011 - 01:11 | 1391022 Yes_Questions
Yes_Questions's picture

..but the sudden lack of flies has others gleeful the BS may finally be gone.

+reptarium dwellers.

Wed, 06/22/2011 - 00:37 | 1390982 Yes_Questions
Yes_Questions's picture

"STEP AWAY FROM THE SUBPOENAS"

Nice show Mr. Cummings.

Wed, 06/22/2011 - 00:46 | 1390988 BlackholeDivestment
BlackholeDivestment's picture

If you have been asked to speak with a Legislator on Capitol Hill and you are not a political slush fund in a suite, just remember the 11th of September.

Put it to you another way http://www.youtube.com/watch?v=HgSSaENMuGA

If you are a bit slow, do to lack of experience, or you do not trust the fact that the system is a murderous failure, I refer you to this. http://www.youtube.com/watch?v=y_7z5eUK7F0

http://www.youtube.com/watch?v=5F1Y6cGRXEs

Don't waste your time. The Legislative Body is corrupt and it hates everything that is not corrupt. A letter to a dipshit means nothing and it never will at this point. The body is too far gone not to self destruct and die.

Wed, 06/22/2011 - 01:02 | 1391002 HungrySeagull
HungrySeagull's picture

Great mountains of paper has been consumed in this mess.

A flap of a few dollars landing into the right wallets on certain behinds with sufficient quanitiy has served to keep this thing going like a Hamster Wheel.

The People are not happy.

They will be even less happy after 2012 when they finally see nothing has changed.

Wed, 06/22/2011 - 01:06 | 1391007 Yes_Questions
Yes_Questions's picture

Who's this we shit, non-Mayan?

Wed, 06/22/2011 - 01:15 | 1391026 HungrySeagull
HungrySeagull's picture

"We shit" how interesting.

I am happy I don't need to spend enormous funds and waste resources hauling my obese and pampered family all the way up the Temple Steps only to see thier Hearts cut out.

There are many parts of the USA that is divided. It will have to reach a critical mass before it has a impact. Until then there is no "We"

Congress is "We" the People are the "Slaves"

Wed, 06/22/2011 - 01:33 | 1391041 Yes_Questions
Yes_Questions's picture

I'd have a joke about obese people climbing temple steps, but I'm not that funny.  Or cruel.

The divided in the US I think are recombining a little lately though in advance of an eclipsed moon.  Slaves though the people are, WE are too extended to keep the slave quarters up so, just one more storm and the walls come down. 

And the barometer is falling.

Wed, 06/22/2011 - 02:38 | 1391096 HungrySeagull
HungrySeagull's picture

Extended as in debt to something that is "Unsecured" like a bank credit line?

Bank goes Poof, no issue. Customer declares bankruptcy and is soon buried in new credit card offers through our failing Post Office.

Your Barometer has been falling hard. Prepartions are useful. However there is a significant portion of our neighbors who simply got tired and quit. They got crushed by the stone that they constantly tried to push over the hill. Now they sit and drug themselves to dull the pain.

The best we can do is lose weight, lose the blindness and open our eyes to see what is coming and get ready.

That is all; the large majority are sheep and they will get sheared first and then served warm for dinner and that would be that.

 

What if a Nation like ours goes Poof. As far as I am concerned I know where we need to go to be with other Americans of like mind to retain our values from Colonial times. The rest will be left to fend as best they can, after all this IS the land of Oppertunity.

Wed, 06/22/2011 - 01:04 | 1391009 snowball777
snowball777's picture

Recognizing his sheer instincts as a blind watchdog, Darrell was quickly hustled into a position of much vanity and little actual importance in which he squandered the majority of his time beating the bush for snipe while brink trucks drove day and night behind him.

A real "American success story"(tm)

 

Wed, 06/22/2011 - 03:38 | 1391114 Yen Cross
Yen Cross's picture

 Well stated 777! ISSA was a blind Watch Dog before last November. The house of reps. was Pelosized.

Wed, 06/22/2011 - 01:08 | 1391011 dcb
dcb's picture

At times I have liked Issa, but how he chooses to do things show how really corrupt he is. When deealing with Obama or the dems it is always send out teh dogs, but not with the banks. At one time I would have supported him for higher office. But not now.

Wed, 06/22/2011 - 01:57 | 1391065 TheMerryPrankster
TheMerryPrankster's picture

There is no higher office than to be a lapdog for the bankers and the ruling class.

Wed, 06/22/2011 - 01:06 | 1391016 dcb
dcb's picture

Oh, but lets not just get upset at him, it's not like I have seen hoder or the justice dept doing anything. So the reality it is the elite of both parties that are so corrupt.

Wed, 06/22/2011 - 01:13 | 1391021 Bansters-in-my-...
Bansters-in-my- feces's picture

Fucking Puppet.....

All of them...

Wed, 06/22/2011 - 01:17 | 1391029 tony bonn
tony bonn's picture

mr cummings is making good noises but this too is a distraction to fool the sheeple that anything will happen....someone needs to tar and feather these sluggards who reward malfeasance, criminality, and evil....

fuck the banksters and criminal enterprises....

Wed, 06/22/2011 - 01:34 | 1391045 Yen Cross
Yen Cross's picture

 Issa represents the Great default State of California! I can't wait for a rebuttal on this Letter.

Wed, 06/22/2011 - 01:41 | 1391051 cranky-old-geezer
cranky-old-geezer's picture

Congress is owned by bankers.

Nothing to see here, worthless waste of ZH bandwidth, move along.

Wed, 06/22/2011 - 01:49 | 1391058 Hook Line and S...
Hook Line and Sphincter's picture

I'm driving through his district on bus tomorrow and fully intend to drop on by his office (right off I-78 in Vista/San Marcos border) to ask him or his assistants the same. Know a few who know him personally as well. I will ask them to call. Yes ZH'r, politicians have a job that not many of us have the nuts to grapple with, as it means we would have to be strong enough to choose the lesser horned dwarf of two satans, and put up with donkeys that kick the lion when they are down. That said, for being a politician through this particular lens, he's usually quite right on, and one of the better public servants we have (note: that I am not contradicting or arguing against anything that was stated in the above thread).

Wed, 06/22/2011 - 01:52 | 1391059 Yen Cross
Yen Cross's picture

 He, (Issa) will probably show up on KUSI news, tomorrow morning! That's his mantra.

Wed, 06/22/2011 - 02:00 | 1391066 Hook Line and S...
Hook Line and Sphincter's picture

k UUUUU s i !

Wed, 06/22/2011 - 02:02 | 1391067 Yen Cross
Yen Cross's picture

+1

Wed, 06/22/2011 - 01:59 | 1391070 Hook Line and S...
Hook Line and Sphincter's picture

Yen, I believe I just said too much ; )

Wed, 06/22/2011 - 02:19 | 1391087 Yen Cross
Yen Cross's picture

 You're good! This is ZH.

Wed, 06/22/2011 - 01:58 | 1391062 anonnn
anonnn's picture

Key question to our misleaders...

Did you thwart? 

Wed, 06/22/2011 - 02:11 | 1391081 TheMerryPrankster
TheMerryPrankster's picture
Three State Attorneys General in Serious
Investigations Against Mortgage Fraud

June 14, 2011 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee.

In separate actions, investigations were announced in recent days against Bank of America, Bank of New York Mellon and Deutsche Bank, for violations in the mortgage securitization fraud. In what could be a significant development, the Attorneys General of New York, Eric Schneiderman, has teamed up with his counterpart in Delaware, Joseph "Beau" Biden III. Between the two states, they account for 100% of the "trust law" (New York 80%) applicable to banks, who acted as "trustees" in the multibillion-dollar mortgage securitization theft. The two, acting together, have requested documents from Bank of New York Mellon and Deutsche Bank. Separately, Schneiderman has expanded his probe to include Bank of America.

These means a total of three states' Attorneys General, those of New York, California and Delaware, are conducting parallel investigations into mortgage fraud by Wall Street.

The two AGs are looking into the paper trail when the mortgages were transferred under the "securitization" process. The rules for property transfer under "trust" law are detailed and explicit; a failure under any aspect of the transfer process would result in the invalidation of the entire "collateralized" security, leaving the banks on the hook for the billions they thought they "sold." As described by Georgetown University bankruptcy expert Adam Levitin, in testimony to subcommittee of the House Financial Services Committee, "If mortgages were not properly transferred in the securitization process, then mortgage-backed securities would in fact not be backed by any mortgages whatsoever, [and] could cloud title to nearly every property in the United States." It would also raise the question of the legality of the resulting millions of foreclosures on American homeowners, since the banks cannot prove "ownership" of the foreclosed property.

In reality, the entire process needs to be "frozen;" the derivatives declared null and void; the mortgages are examined in their original condition, to keep people in their houses, while we find out who owns what. Glass-Steagall would help this process.

http://www.larouchepub.com/pr_lar/2011/lar_pac/110614investigate_mortgag...

 

also see:

http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=mortg...



Wed, 06/22/2011 - 04:39 | 1391125 dcb
dcb's picture

duh, why do you think the fed bought MBS. If they are junk and the fed owns it, then we are on the hook. simple wealth transfer.

Wed, 06/22/2011 - 02:16 | 1391083 slewie the pi-rat
slewie the pi-rat's picture

LOL---issa?  who could have imagined such a thing happening?

Wed, 06/22/2011 - 02:47 | 1391099 Yen Cross
Yen Cross's picture

 I wonder if Issa talks with ( Randall "DUKE" Cunningham) @ Camp Snoopy?

Wed, 06/22/2011 - 02:28 | 1391093 agNau
agNau's picture

Hang em high!....... And......Probably best to parboil first, then with light breading, fry to a golden brown. Yummy! Dibs on those tender little toes!

Wed, 06/22/2011 - 02:41 | 1391098 HungrySeagull
HungrySeagull's picture

Waste of a good tree to keep warm on the coming cold night.

Best to simply sugar him down and stake him to the ground. Let the insects take care of it, it will take a while.

Wait a month and you have dozens of pounds of beef jerky.

Wed, 06/22/2011 - 05:45 | 1391139 zen0
zen0's picture

It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new burden of debt -- and that government of the banks, by the banks, for the banks, shall not perish from the earth.

Wed, 06/22/2011 - 05:56 | 1391143 dir
dir's picture

Gee, Elijah:

Since the Democrats controlled Congress (and your House of Representatives) from 2006 to 2010, the question is:

Why didn't you do anything, schmuck?

 

Wed, 06/22/2011 - 08:15 | 1391254 gwar5
gwar5's picture

Exactly. Elijah "The Truth" Cummings and the rest of the Socialist Democrats of America (70 house Dems are card carrying members) set up Fraudclosure by giving the banks a blank check. Think: Barney Frank & Charlie Rangel.

Spencer Baucus (R-AL) is now Chair of House Committee on Financial Services, Barney Frank's old job -- which is where these inquiries actually belong which show how stupid and disingenuous Cummings is. 

Issa on the Government Oversight Committee would oversee Fraudclosure if members of congress or government employees break the law or enrich themselves or others from Fraudclosure.

Wed, 06/22/2011 - 06:07 | 1391145 Yen Cross
Yen Cross's picture

left handed

Wed, 06/22/2011 - 07:09 | 1391174 topcallingtroll
topcallingtroll's picture

I can only rarely decipher the great YC.

Wed, 06/22/2011 - 06:39 | 1391155 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

12 Things That the Mainstream Media Is Being Strangely Quiet About...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/06/12-things-tha...

Wed, 06/22/2011 - 06:55 | 1391164 Ted K
Ted K's picture

Darrell Issa is no different than Dickhead Shelby of Alabama.  A Republican piece of shit who multiple times daily goes to lick the American Bankers Association's anus to make it clean.  Representative Issa: "lublublub lublublub, you hard yet Mr. Keating??? If your organ isn't engorged enough yet, tell me where you need it baby."

Wed, 06/22/2011 - 07:03 | 1391172 topcallingtroll
topcallingtroll's picture

There are plenty of pieces of shit on both sides who are helping sabotage useful investigations.

Wed, 06/22/2011 - 07:42 | 1391218 gwar5
gwar5's picture

Issa is Chair of the House Government Oversight Committee.

And his legs are already tired from running around after Eric Holder's stonewallling and coverup of Obama giving AK-47s to the Mexican drug cartels.  

Wed, 06/22/2011 - 07:54 | 1391236 Laughinggrizzley
Laughinggrizzley's picture

What a third world country calls "bribery", we in the good ole US call lobbying/canpaign contributions/access. But then again, what respectable third world country has a middle class. 

Wed, 06/22/2011 - 07:57 | 1391237 gwar5
gwar5's picture

Issa is Chair of the Government Oversight Committee, tasked with rooting out government corruption, not overseeing banking activities. So, is this even the right venue for Fraudclosure?

Issa's legs must be getting tired chasing after this fascist administration --- they ignore his first three requests for documents and force him to issue subpoenas -- each. and. every. time.

Elijah "The Truth" Cummings is just a fraud and hypocrite, looking to deflect from the efffective job Issa is doing against Holder and Obama on such things as, eg., giving guns to Mexican cartels and Holder protecting Black Panthers from civil rights violations. 

 

Wed, 06/22/2011 - 08:22 | 1391269 rufusbird
rufusbird's picture

call out the U.S. Department of Education S.W.A.T. team and arrest them for contempt...

Wed, 06/22/2011 - 10:52 | 1391720 AlaricBalth
AlaricBalth's picture

And look who owns the Chairman of the Senate Banking Committee, Tim Johnson. Top total contributors are JPM and Citi.

 

Citigroup Inc $104,610 $75,410 $29,200 JPMorgan Chase & Co $79,835 $52,335 $27,500 Teamsters Union $62,500 $0 $62,500 United Auto Workers $60,000 $0 $60,000 American Bankers Assn $58,700 $3,700 $55,000 Machinists/Aerospace Workers Union $54,000 $0 $54,000 Intl Brotherhood of Electrical Workers $51,750 $250 $51,500 National Education Assn $51,750 $250 $51,500 United Transportation Union $50,700 $0 $50,700 National Assn of Letter Carriers $50,000 $0 $50,000 United Steelworkers $49,500 $0 $49,500 AFL-CIO $49,100 $750 $48,350 American Assn for Justice $49,000 $0 $49,000 Carpenters & Joiners Union $45,700 $200 $45,500 American Postal Workers Union $45,500 $0 $45,500 SLM Corp $43,872 $24,372 $19,500 American Fedn of St/Cnty/Munic Employees $43,500 $0 $43,500 National Assn of Realtors $43,149 $500 $42,649 AT&T Inc $42,500 $2,000 $40,500 Fannie Mae $41,500 $31,500 $10,000
Wed, 06/22/2011 - 11:10 | 1391822 ZeroPoint
ZeroPoint's picture

Too big to fail means to too big to prosecute as well.

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