Saturday, October 2, 2010

From Mortgage Fraud To Foreclosure Fraud

Uncle Sam with empty treasury, 1920, by James ...Image via WikipediaBank of America, the nations largest bank, on Friday became the latest lender to put foreclosures on hold in 23 states because of concerns that court documents it submitted were prepared incorrectly. 
 
A Bank of America executive, Renee Hertzler, said in a February deposition in Massachusetts that she signed as many as 8,000 foreclosure documents a month without reviewing them. Here's the problem with this: an executive of a major lending company, who is responsible for 8,000 foreclosures a month blindly signs legal documents without checking for accuracy. This is only one of the many banks operating in this way. Maybe the documents are accurate, time will tell. 
 
At OneWest in Austin Texas, Erica Johnson-Seck a vice-president and her team sign off on 6,000 documents a week and about 24,000 a month. OneWest is the successors to defunct IndyMac of California. 
 
What's the problem with all this? The banks really don't care if the documents are correct. They don't care because these foreclosures are a big drain on the resources of the bank. The costs of foreclosure and the money lost in the lending is eating away at the companies. They have had to hire additional staff and the light at the end of the tunnel cannot even be seen. 
 
It's not revealed but I believe the people who are really upset about this fiasco is the Judges that have to sign off on the foreclosure. They look like fools taking for granted the documents are correct. 
 
The banks in today's world have really let the industry go to pot. Banks are rated at the bottom in customer service. Just try to get a short sale to progress in a timely manner. The lending that was supposed to loosen up with the TARP bailout has not happen and if it did only in the slightest way. Banks are not lending like they should. The lending they do is in such a way as to be totally useless. 
 
Banks have become a massive, bloated, fat behemoth of in efficiency. They can't even get out of their own way. The time will come when they will have to be broken up like AT&T was. They are unresponsive to the needs of the public in the extreme. The credit system of this country in integral with the health of the economy. If these banks can't get it together Uncle Sam may have to step. Under normal circumstances I'm apposed to government regulation but not in this case. 


       Sorry about the Rant but banks misbehavior is a sore subject with me.
                                                                                                  ,Dave


1 comment:

  1. Local banks are almost an anachronism these days. I couldn't even imagine have a personal relationship with a banker.

    ReplyDelete

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics