City of Oakland Sues Wells Fargo for Discriminatory/Predatory Lending

see http://www.housingwire.com/articles/35126-oakland-sues-wells-fargo-for-mortgage-discrimination

My first suggestion was in 2007 that governmental units sue the big banks for what they were doing to their constituents and government budgets. Nobody was interested. They were all listening to Greenspan and Paulson saying that this was nothing and that it was contained. How do you warn people about the tidal wave when they have turned their back to it?

Had the lawsuits began then, the number of foreclosures would have dropped sharply as the predatory practices and fraudulent practices were revealed — the servicers and trustees would have been revealed as emperors without clothes, and governmental agencies would have taken over the process of cleanup instead of allowing the “servicers” and “trustees” to walk off with the money and the property.

But I now renew my OTHER question: Why would anyone spend hundreds of millions of dollars promoting loans that were guaranteed to fail? And the corollary question: Why would anyone spend hundreds of millions of dollars (remember DiTech and Quicken and the Lending Tree?) promoting loans that carried an interest rate of 2.5%???? At that rate, there is a guaranteed loss from inflation even if the borrower pays!!!

The answer is obvious but few people have really drilled down on this stuff and fewer still have done anything about it.

The answer is that no sane person would want those loans much less promote them through surrogate “originators”.

So the next question is if nobody would do that, how did it get done?

And the answer to that is also obvious,  and we all know about it now — other people’s money (OPM). The big banks were making a fortune buying and selling mortgages they didn’t own with mortgage bonds they didn’t own that were sold as guaranteed, insured, high-rated mortgage backed securities, when they were neither securities nor backed by mortgages.

AND THAT is the beginning of why eminent domain is completely appropriate to seize the loans, share the benefit with investors and kick the servicers and trustees out of the picture. Since the Trusts have zero assets anyway, the Trustee and servicer are legally empowered to do NOTHING. None of them have standing to challenge eminent domain.

14 Responses

  1. That’s jyst part of the derivative casino economy the American people are blind to while tgey cry about big government deficit. The same crooks at AIG are making deals shorting everything else probably with same crooks that shorted them to take one for the team. How else do “bad loans” turn into hundreds of trillions of dollars. Probably hundreds of times our whole economy. Scam doesn’t even begin to describe the greed were seeing.

  2. JG, I agree with your statement about shorting AIG. My question has always been, why have the big insurance companies that got nailed in this Ponzi Scheme not sued & sued & sued the banksters & the servicers? What is the other part of the same we can’t see or only see part of? The taxpayers bailed out AIG, too. Was this a scam within a scam?

  3. NG: “But I now renew my OTHER question: Why would anyone spend hundreds of millions of dollars promoting loans that were guaranteed to fail?”

    To short AIG.

  4. hey guys – please come over and toss-in on https://livinglies.wordpress.com/2015/09/29/the-real-problem-in-the-wall-street-crisis/
    i really need your help to shut this down (you’ll be glad you helped)
    greg

  5. EX-10.8 9 dex108.htm CUSTODIAL AGREEMENT
    Exhibit 10.8

    EXECUTION COPY

    CUSTODIAL AGREEMENT

    among

    RESIDENTIAL FUNDING COMPANY, LLC, and

    GMAC MORTGAGE, LLC,

    as Sellers

    GMAC LLC,

    as Financing Party

    and

    ALLY BANK,

    as Custodian

    Dated as of May 19, 2009

  6. a problem is governments sue on behalf of the people and win a settlement then NEVER share the booty with the people they serve…

  7. Case No. 3:2015cv04321

  8. Request for a copy of the operative complaint filed by Oakland, kindly?
    Email to sncr.defenders@yahoo.com
    Thanks

  9. Bobhurt- i agree that housing is a risky investment. But it is far riskier due to the fraud, the lying by counsel, the phony secuitized trusts, the rampant appraisal fraud to “do the deal”,
    The rigging of the Libor benchmark upon which all the subprime amd Alt-A mortgages were based, the kickbacks to builders, and 101 other things. Yep, they sure made things risky. And have dragged the entire global economy down into the ashes.

  10. http://www.legalyou.com For Florididans. Attorney Ice of Florida has a great website. Neil I hope you dont mind.

    LONG LIVE NEIL GARFIELD AND CO. MAY HA’SHEM The G-d Almighty GIVE YOU STRENGTH AND HEALTH.

    NEVER AGAIN.

  11. No invisible hand fantasy, cheaters get their legs broken. Problem is cities won’t acknowledge corrupt land records so part of the scam as w LA.

  12. Hopefully they rule the way they should….

  13. Look for more suits of this nature. Looking forward to the Supreme Court’s decision as to trusts. I hope it does not take until next June.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: