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Thread: Obama kills foreclosure bill as fury mounts

  1. #1
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    Obama kills foreclosure bill as fury mounts

    Obama would of signed this if it didn't get leaked, just my opinion.

    Obama kills foreclosure bill as fury mounts
    By Caren Bohan and Scot J. Paltrow Caren Bohan And Scot J. Paltrow
    7 mins ago

    WASHINGTON (Reuters) – President Barack Obama killed proposed legislation on Thursday that struck at the heart of growing political rage over how banks have moved to evict struggling borrowers from their homes.

    The bill, which would have made it more difficult for homeowners to challenge foreclosures, came under the spotlight this week as the furor grew over disclosures that some of the biggest U.S. mortgage processors filed false affidavits in thousands of foreclosure cases.

    Obama sent the bill back to the House of Representatives for further discussion on how it would affect the foreclosure crisis, one of the most visible signs of the deep economic problems gripping the country.

    The chorus of calls from political leaders for a suspension of foreclosures grew on Thursday, with Senate Majority Leader Harry Reid and Representative Ed Towns, the Democratic chairman of the House Committee on Oversight and Government Reform, adding their voices.

    The bill, the Interstate Recognition of Notarizations Act, cruised through the Senate last week with no public debate and could have shielded bank and mortgage processors from liability for foreclosure documents that were prepared improperly.

    "We believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized," the White House communications director, Dan Pfeiffer, said in a blog posting.

    In a development first reported by Reuters, the bill would have required courts to accept all out-of-state notarizations, including those stamped en masse by computers in a practice that critics say has been improperly used to expedite foreclosure orders.

    Senate Majority Leader Harry Reid, who is fighting a tough bid for reelection in Nevada, where foreclosure rates have been the highest in the nation, on Thursday called for the largest mortgage servicers to suspend foreclosures in Nevada.

    And Towns, a New York Democrat, called for top mortgage lenders and banks to voluntarily halt all foreclosures in the country and asked New York Attorney General Andrew Cuomo to investigate allegations of fraud and other possible criminal activity.

    "Losing a home can be one of the most traumatic experiences faced by an American family. Anyone forced to go through this process should be treated fairly. Sadly, it appears this may not have been the case for some borrowers," Towns said in a statement.

    So far, Ally Financial Inc's GMAC Mortgage, JPMorgan Chase & Co and Bank of America have all announced that they are suspending some of their foreclosures to review whether they have been conducting them properly.

    Wells Fargo has said that it is "confident" in its foreclosure paperwork, and Citigroup has also not announced plans to halt foreclosures despite increased pressure from state attorneys general and lawmakers in Washington.

    Banks are expected to take over a record 1.2 million homes this year, up from about 1 million last year, according to real estate data company RealtyTrac Inc.

    False notarizations figured in disclosures that GMAC, JPMorgan and other big mortgage processors filed false affidavits in thousands of cases, part of the wave of foreclosures that erupted in the wake of the financial and economic crisis.

    The U.S. Justice Department said Wednesday it was probing reports the nation's top mortgage lenders improperly evicted struggling borrowers as growing numbers of lawmakers on both sides of the aisle demanded investigations.

    The debate over foreclosure procedures comes just weeks before the November congressional elections with Obama's fellow Democrats braced for potentially big losses from voters frustrated by the slow economic recovery and punishingly high unemployment rates.

    But while many householders may cheer efforts to get tough with banks, some experts say any blanket halt to foreclosures could risk further hobbling the economy as banks wonder whether they will ever claw back losses and the housing market grapples with by a mounting inventory of homes still likely to face foreclosure in future.

    Billionaire investor Wilbur Ross said on Thursday the foreclosure debacle could slow the lending process, seen as key to pumping life back into the U.S. economy.

    "I think it's more of a clogging of the system and introducing another note of uncertainty," Ross said at a Reuters summit on restructuring in New York.

    MYSTERIOUS BILL

    Obama's decision not to sign the bill capped a week which saw the legislation, passed by the House in April, suddenly pushed through the Senate Judiciary Committee and approved by the full Senate on September 27, the day before the Senate recessed for the midterm election campaign.

    Passage of the bill caught homeowners' advocates, including lawyers and some state officials, by surprise with some saying the timing seemed peculiar.

    The bill had received almost no public attention but stirred controversy once the Senate's rapid passage of bill became public.

    Congressional staffers said many lawmakers and White House officials initially didn't realize that the bill, which nominally deals only with notarizations, could have big impact on foreclosure cases.

    (Additional reporting by Ross Colvin; writing by Andrew Quinn; editing by Leslie Adler)
    http://news.yahoo.com/s/nm/20101007/...l0ZWhvdXNlb2I-

  2. #2
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    it's a good move. there's no upside for citizens in speeding these things up. there's upside for corporations.

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    Why should we all pay for the bad choices of a few?

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    1- if anyone is filing false affadavits it should be investigated and if evidence is found, prosecuted...

    2- if mortgage brokers falsified income information on mortgage applications in order to secure a mortgage for anyone it should be investigated and if there's cause prospecute...

    3- the books at Fannie/Freddie must be audited to see if anyone cooked the books- if there's cause prosecute...

    4- if someone cannot afford mortgage payments the house should be foreclosed on if nothing can be worked out with a bank....sorry, sad as it is homeownership is not a right, its' something people work long and hard to acquire and maintain....

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    Quote Originally Posted by bitonti View Post
    it's a good move. there's no upside for citizens in speeding these things up. there's upside for corporations.
    yeh; because corporations want to own homes that are worth less then what they are owed on said home versus having a warm body in the house pay the mortgage...lol

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    Quote Originally Posted by bitonti View Post
    it's a good move. there's no upside for citizens in speeding these things up. there's upside for corporations.
    Banks with good balance sheets able to loan money to people who might want to buy a home or build a business are good things for citizens. Neighboorhoods with people who have a stake in their home and community is good for citizens. Healthy Corporations are also good for citizens. People who are in over their head don't do much for citizens.

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    Quote Originally Posted by Winstonbiggs View Post
    Banks with good balance sheets able to loan money to people who might want to buy a home or build a business are good things for citizens. Neighboorhoods with people who have a stake in their home and community is good for citizens. Healthy Corporations are also good for citizens. People who are in over their head don't do much for citizens.
    Who benefited from the system?

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    Quote Originally Posted by cr726 View Post
    Who benefited from the system?
    Definitely the people who are having their houses foreclosed on. They had a cool house for a few years and now get to move! Kinda like renting...but more expensive

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    Quote Originally Posted by HDCentStOhio View Post
    Why should we all pay for the bad choices of a few?
    why should a citizen get foreclosed upon by a robot? foreclosures do not help the economy or the price or real estate. they only help banks.

    if the banks had a human being actually looking at these files, it wouldn't be an issue. they tried to process 1000's at a time, across state lines.

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    Quote Originally Posted by bitonti View Post
    why should a citizen get foreclosed upon by a robot? foreclosures do not help the economy or the price or real estate. they only help banks.

    if the banks had a human being actually looking at these files, it wouldn't be an issue. they tried to process 1000's at a time, across state lines.
    It seems all the big banks conspired to overun the little guy with no respect for the law.

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    Quote Originally Posted by cr726 View Post
    Who benefited from the system?
    People who understand reasonable risk and what they are investing in and why.

    I can't tell you the reasons people buy assetts at high price personally signing for it with huge amounts of leverage. I also don't understand why people sell assetts at low prices when they are deleveraged. Maybe human nature trumps knowledge?
    Last edited by Winstonbiggs; 10-07-2010 at 08:10 PM.

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    Quote Originally Posted by PlumberKhan View Post
    Definitely the people who are having their houses foreclosed on. They had a cool house for a few years and now get to move! Kinda like renting...but more expensive
    I personally held guns to the heads of 50,000 of "those" people to sign zee papers!

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    Quote Originally Posted by Winstonbiggs View Post
    People who understand reasonable risk and what they are investing in and why.
    Really?

    "With numerous state attorneys general investigating systemic illegal foreclosure filings and misrepresentations, it is entirely appropriate" to veto the legislation, said Ed Mierzwinski, the consumer program director for the U.S. Public Interest Research Group.

    Ira Rheingold, the executive director of the National Association of Consumer Advocates, said that most consumer advocates weren't tracking the legislation earlier this year and that he doesn't think the legislation was crafted to hurt homeowners. Still, he said, "There is a danger the courts will say, 'Well, this is a notarized document and therefore I'm going to let it into evidence' and allow a home to be foreclosed, even though the underlying facts aren't true."

    Read more: http://www.mcclatchydc.com/2010/10/0...#ixzz11ip2kd3N

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    Quote Originally Posted by acepepe View Post
    I personally held guns to the heads of 50,000 of "those" people to sign zee papers!
    Follow the money

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    Quote Originally Posted by cr726 View Post
    It seems all the big banks conspired to overun the little guy with no respect for the law.
    yep; one big conspiracy- probably a right wing conspiracy at that...because most of these foreclosed houses never would've been foreclosed on in the first place, right???? lmao...

    as anyone who's ever owned real estate which is rented to others will tell you, the law is always on your side when trying to remove deliquent tenants from a property...

    Quote Originally Posted by cr726 View Post
    Who benefited from the system?
    the big banks who conspired against the little guy obviously....the mortgage system which seemingly has worked so well for so many in this nation for so long has obviously been exposed for the fraud it is....
    Last edited by Come Back to NY; 10-07-2010 at 08:42 PM.

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    Quote Originally Posted by bitonti View Post
    why should a citizen get foreclosed upon by a robot? foreclosures do not help the economy or the price or real estate. they only help banks.

    if the banks had a human being actually looking at these files, it wouldn't be an issue. they tried to process 1000's at a time, across state lines.
    foreclosures help banks??? its' obvious you're a real estate mogul....lol

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    Quote Originally Posted by Come Back to NY View Post
    yep; one big conspiracy- probably a right wing conspiracy at that...

    because most of these foreclosed houses never would've been foreclosed on in the first place, right???? lmao...

    because anyone who's ever owned real estate which is rented to others will tell you the law is always on your side when trying to remove deliquent tenants from a property...
    Who created MERS?

    Citigroup, Inc (NYSE: C) and Ally Financial Inc. have been accused falsifying foreclosures on loans by conspiring with Mortgage Electronic Registration Systems Inc. in a lawsuit brought forth by a group of Kentucky homeowners.

    The suit, which was filed as a civil-racketeering class action in federal court, accuses banks of foreclosing on homes when they did not hold the title to the properties by colluding with Mortgage Electronic Registration Systems (MERS).

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    Quote Originally Posted by cr726 View Post
    Who created MERS?
    hence accused in a class action suit = guilty????

    you do understand what the issue is here, don't you?? ...the paragraph you forgot to copy and paste...

    Three large national banks have recently halted foreclosures in 23 states in light of evidence of flawed documents or improper procedures. In that context, Obama is asking Congress to go back to the drawing board on H.R. 3808, the "Interstate Recognition of Notarizations (IRON) Act of 2010."
    so these banks stopped foreclosures before this bill was voted on- but they conspired against the little guy...lol

    little education- what's legal in one state is not necessarily legal in another state....if a house is being foreclosed on in michigan and the former owner of the lives in NY, the NY paperwork is not automatically accepted in the state of Michigan....

    granted- if they were falsifying affadavits that's another ball of wax all together....

    as far as MERS and the lawsuit- who held the mortgage on the property???
    Last edited by Come Back to NY; 10-07-2010 at 09:12 PM.

  19. #19
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    google the term "robo-signers" there's about 2000 news articles that explain why what President Obama did today was the right call.

    It might be that every single last one of those foreclosures are legitimate but you can't have a rubber stamp notarize something. a human is supposed to look at it. it's a friggin foreclosure. huge terrible thing for alot of people. how could anyone be pro "robo-signing" ?? anyone?

    i work with computers, i wouldn't trust them to robo-decide. that's some skynet John Conner s--t

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    Quote Originally Posted by Come Back to NY View Post
    hence accused in a class action suit = guilty????

    you do understand what the issue is here, don't you?? ...the paragraph you forgot to copy and paste...



    so these banks stopped foreclosures before this bill was voted on- but they conspired against the little guy...lol

    little education- what's legal in one state is not necessarily legal in another state....if a house is being foreclosed on in michigan and the former owner of the lives in NY, the NY paperwork is not automatically accepted in the state of Michigan....

    granted- if they were falsifying affadavits that's another ball of wax all together....

    as far as MERS and the lawsuit- who held the mortgage on the property???
    Notarized documents are required to transfer a property from one institution to another. But typically banks do not produce paperwork proving they have “standing” or the legal right to foreclose. Instead they supply affidavits that have been signed by a legal services firm hired by the bank or loan servicer. These signatures are, in theory, to be administered by a neutral, third party notary public, who is legally required to read and review the documents.

    What has emerged, however, is that the notarization system was pervasively abused by major financial institutions. Among other practices, it has been revealed that notarizations took place at an impossible rate of thousands per month per reviewer, that they occurred even before the attested documents were actually prepared, that signatures ostensibly representing the same individual bank employee were clearly produced by more than one person, and that notarizations took place in offices far away from where documents were signed.
    Additionally, courts are finding it difficult to determine what banks actually own mortgages. This uncertainty is owed to the securitization of mortgage debt, which is routinely bundled, sold, divided, and then rebundled and resold again. The result is often that multiple banks make claims on the same properties.
    As a result of the scandal, foreclosures have been temporarily halted in several states. Lawyers representing homeowners are now much more likely to pursue legal redress. And judges may well reopen cases of previously foreclosed homes.
    The banks got caught and knew they better stop. Pretty simple.

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