These quotes are here today AFTER several lawmakers have requested invetigations into the "foreclosure process".
Update Ohio Attorney General Richard Cordray stated on Bloomberg, that the DOJ is investigating and criminal indictments may take place way IF certain parties KNOWINGLY submitted false documents to the courts.
At most, said Rick Sharga, chief economist of the foreclosure-tracking firm RealtyTrac, the snafus will probably delay foreclosures for the next 60 to 90 days. Servicers will review the documents in question and implement internal procedures to comply with regulators.
"Once that's done, we'll probably see an escalation of foreclosure activity," he said.
If the reviews turn up major mistakes, or if a court orders review of tens of thousands of other records on prior foreclosures, "things could get very messy very quickly," Sharga said.
Especially if the banks have sold these foreclosed houses.
"If the bank or its subsidiary obtained title by virtue of a final judgment improperly obtained, then the sheriff sold the property based on that same improper judgment," Garrabrant said. A sheriff's deed can be challenged in court, as can the final judgment authorizing a sheriff's sale and the resulting bank deed.
It's equally possible, RadarLogic's Feder said, that delaying foreclosures will only push the economic reckoning for some homeowners farther into the future.
Read more: http://www.philly.com/inquirer/business/20101006_Probe_into__blind_stamping__of_documents_prompts_halt_in_foreclosures.html?nlid=3266889#ixzz11bo5aFyI Watch sports videos you won't find anywhere else
AND AS BEFORE - we ask - what are the implications for holders of MBS and related derivatives like the Fed (courtesy of US taxpayer cash exchanged for so called AAA rated MBS, et al paper)? As well as ratings of same. What if the ratings agencies DECIDE to lower ratings?
What then? Can the Fed put them back to the banks? Is the Fed obligated to put them back?
What impact would such put back have upon certain banks? Are we coming full circle? BACK to the CAUSE of the so - called financial crisis? Namely certain banks' failure to understand and evaluate the BASIC underlying credit-worthiness of collateral as posted here in July 2007 http://www.fiduciaryexpert.com/page3.html
Excerpt here -Capital, currency and commodities are globally connected. Settlement of trades is nearly immediate, disruption could unsettle all markets. Cash infusions by the operators or sponsors, market rescues, liquidity by Federal Reserve Bank through discount rate cuts, extended rollover provisions, open market operations band aid liquidity only; Fed action does not cure the credit (creditworthiness) and or valuation issues of these "securities".
And again we ask - what will Global creditors of the USD think and more importantly DO?
Now AND in the FUTURE?
And we pay for this? LET ME COUNT THE WAYS.
Not once but now twice for current taxpayers.
Future generations will effectively pay 7 ways for the-from-the-start-ill-advised-certain-bank-MBS -leveraged-speculative-prop-trading-margin-call-bailout. The additional 5 ways are result of 1) higher future relative interest rates, 2) lower growth, 3) lower employment 4) HIGHER taxes that will be necessary to satisfy domestic and foreign creditors demands 5) lower currency value. The above does NOT count the higher taxes, lower growth at the state, county and city / local level. In combination ALL pointing to a LOWER not higher standard of living compared to the rest of the world. But NOT for the recipients of the Fed's bailout - oh no they're special.
Rather more like home-grown FINANCIAL TERRORISTS.
ALL THE RESULT OF THE OH SO FINELY TUNED "JUST IN TIME" FINANCIAL ENGINEERING - OH EXCUSE ME FINANCIAL INNOVATION. The result of massively leveraged spread trades between long term asset vs short term borrowings in the 2(a)7 money markets . INVENTED AND PROMOTED BY? YOUR FRIENDLY NEIGHBORHOOD WALL ST BANKERS & TRADERS. Watched over by your friends at the NY Fed and the Fed Reserve Board. CAUSED MORE DAMAGE TO THE ECONOMY THAN 9/11 BUT ONLY AFTER CASH BONUS PAYDAYS. Caused what looks to be a multi-generational long damage to trust.
NOW they (BB & TG) are claiming and getting credit for "healing and rescuing" the economy!
Come on gimme a break.
Ending the siesta on the Taxpayer's dime - one easy to read blog at a time.
Not my first rodeo.
Since 2004, my office issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.
McFid, since 2003, BFD expert. (BFD means breach of fiduciary duty)
Copyright © Chris McConnell & Associates 2003 to 2010 All rights reserved
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