Detroit Considering Reparations from the Banks for City Losses

“the banks are being paid to tear down the blight they caused by their predatory lending policies, with funds that are supposed to be dedicated to preserving homeownership.”

see Detroit Losses and Reparations

Excellent article that can be reached using the link above. The one thing that emerges from the analysis of what really did happen as opposed to what we were all arguing might happen 8 years ago, is that the banks clearly were up to no good.

The one thing that we can be sure of after watching bank behavior across the country is that they want the foreclosures and the foreclosure sales but they don’t want the property or the responsibilities that go with land ownership. If you ask yourself the question “why would the banks not to want to save homes and home ownership when the “LENDER” (whoever that is, would clearly have done far better modifying loans than foreclosing them into zombie homes,neighborhoods and cities. The way the banks handled this is that they defrauded the investors into signing their rights away leaving the banks in complete control of the entire lending and foreclosing process.

The lending and foreclosing process went hand in hand. That was the goal. Since the more loans failed the more the banks were able to cover the proceeds of their theft from investors, their efforts at modification and workouts — once the cornerstone of every recession — were only window dressing on a plan of driving loans into failure at great cost to the investors and the borrowers.

But what this article details is how much money Detroit alone lost as a direct result of mortgage crisis and the refusal of banks to employ the creative strategies for workouts the same way they used “creative” strategies for selling loan products. And now once again the cities are considering “reparations” which is ordinarily associated with war. The banks destroyed or severely injured entire towns, cities and states. After considering and apparently rejecting eminent domain to end foreclosures, people are now talking about reparations to be paid by the banks to the states, cities and towns who lost money simply because the banks, acting not as lenders but as intermediaries, decided to take us all down for their own benefit. Using the money from investors they cornered the market on money and loans.

And somehow we have seen our governmental public servants miss the obvious. The legislation passed in 1998 taking mortgage backed securities out of the realm of securities and into private contracts, was not really to blame for all this. The truth is that the paper issued by the REMIC trusts was not backed by mortgages or loans of any kind. So since they were not private contracts but instead of were securities sold under false pretenses, the bankers should have been prosecuted. But they were not and now the statute of limitations is probably running out.

I have nothing invested in seeing anyone go to jail. But if that is what it takes to send a signal to those who sit on the bench that this is not a borrower problem then so be it. I think the reparation idea is a good one. I think the eminent domain idea is still a good idea. And I also think that tobacco-like litigation against the banks is ripe now that we are coming to know the truth about their skullduggery. The great recession could have been just a blip on the historical timeline; but the real money for the banks was seeing the entire world go up in flames. I think a lot of people know what I am talking about even if they don’t fully understand the details — which Wall Street made as difficult as possible. I think that is why Bernie Sanders is getting record crowds. And I think a surprise is coming for any politician who fails to run against the banks.

12 Responses

  1. @DW – depending on how DOT is written, MERS only has the power of nominee, and not the power to elect to declare default or power to foreclose judicially or non-judicially, nor the power to retain payments against the loan. In a loan assignment, the purchaser cannot claim powers the seller does not possess.

  2. John Anderson sounds great
    You said this
    “You can get out of MERS, if they sell you to scum, outside of MERS.
    This is what happened in my case four years into it, when they knew they were going to lose.”
    Please elaborate if you have time.

  3. Congrats JA! I’m hopefully closing in 21 days just passed w letter only no lawsuit.

  4. John Anderson, on July 7, 2015 at 5:43 pm said:
    Well, I said that I would report on the outcome of my Summary Judgement hearing, set for today “07/07/2015″ @ 1.30 pm.
    I won it in a walk. My second Summary Judgment victory. I will get into the details later. I just want to say ” THANK YOU NEIL GARFIELD ”
    Keep fighting people. Its not over, till we say its over.
    JohnAndersonForPresident.com

    You can get out of MERS, if they sell you to scum, outside of MERS.
    This is what happened in my case four years into it, when they knew they were going to lose.

  5. We just need a couple of more nails!

    Well Shadow it’s all pretty basic but not simple as these bastards spun their web. If ur saying investors weren’t part of the scam I’d say some definitely were esp the whale sharks at the top. Then you had the regular man eaters that preyed on foreclosures and honest investors that tried to build a good business and were prob victimized as well. Basically, no rule of law wild west and organized crime, financial terrorism all rolled into one. Hopefully the death of most corrupt era if we get it together and come together kumbaya or bring out the hammers!

  6. JG. .. What goes in MERS never comes out.
    The Morons didn’t create an exit door….. As they never anticipated they would be caught. The only way to beat them at their own game is to look into the mirror and say to yourself….Let us join each other and Enforce the Contract!

    There is no Consummation!
    Investors got the mortgage yep…but not the note…nope
    But what do us investors know anyway…right?
    Some morons still actually believe we are in on the scam…hahahaha
    Spreading the risks…..

  7. Well stated TU and so Very True!
    Hammertime. … NAIL IT!

  8. I agree Trespass that’s where Neil, lawyers fall short. They can’t go along with legal loopholes. Just look at “title insurance ” never enforced for slander on title, damaged marketability of title, pure deception and trlckery.

  9. Neil,
    The comment, your comment
    _——-_
    So since they were not private contracts but instead of were securities sold under false pretenses, the bankers should have been prosecuted. But they were not and now the statute of limitations is probably running out.
    _——_

    You appear to de-scribe
    Unfair and Deceptive Acts and Practices (UDAAP) in addition to Contracts without full disclosure, thus RESPA / TILA violations in contacts.

    How does a statute limitation protect when the act is ongoing. Any security that exists in the market as a result of the UDAAP continues the tolling of the UDAAP, and connects the present to the past as it is One act over a long period of time.

    Each theft of property from the people, each order that forcea the real owner out to try to make each title search appear as an abandonment when we know it was no abandoned, the owner was forced to leave or die if they challenged the man with the gun who delivered notice to move out or if you don’t you agree to engage in armed conflict or physical conflict.

    the title company that clears the property for sale when they are participating in the fraud by not performing the search and allowing people to lease stolen property.

    The falsifying of IRS (government) documents using the identity of people who did not give permission, nor power if attorney, to use their identity to claim they abandoned property they did not abandon nor to file or record documents using their identity to claim they owe a tax on property that was stolen.

    The statute of limitations does not toll on federal offense.

    To file a false claims. To be paid insurance on a loss not incurred is federal when you figure the amount paid for the loss, and the one filing the claim uses the property again to create another UDAAP to get more insurance on a loss not incurred.

    There is NO STaTute of Limitations on identity theft, felony theft if property, felony false and misrepresentatiin of insurance claim, felony conspiracy against rights, felony involuntary servitude, felony barratry, felony misprision of felony, felony colluding, felony hostage taking where the bank owners and employees seized the people, where we are the government, of the people, where the people are forcing from our property, and the bank ownera and wmployees are compelling the government, or the people, to pay them more as our act to save us from more of what the bank owners and employees do.

    The bank owners and employees are criminal abductors, and their acts compel the people against our free will.

    (Peonage- why else would someone labor for something and not get it) were we not enslaved against our free will and without disclosure for them to take the fruits of our labor and leave us with no thing?)

    Trespass Unwanted, Creator, Corporeal, Life

  10. I would add local officials and others were bribed after settlements with tax payments etc after MERS was made out to be only a tax issue instead of a tool for mass fraud or WMD.

  11. Awesome post, Neil.

    Every one of us should be forcing “our” elected officials to fess up no matter party, state and from local officials, courts all the way through. Time to clean house and get rid of this cancer.

    But investors aren’t innocent victims and enablers include brokers, investors and lawyers.

  12. Neil
    The bailout – future tax dollars
    We the middle working class – the backbone of the e- conomy are way beyond “pissed off ” and so would our futures children and their children, darn right its ” ripe”

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