Yesterday a hearing was held and during JP Morgan Chase Home Lending CEO Mr. David Lowman's testimony, a protester yelled out the Chase Bank representative was committing perjury.
This happened during a Senate Banking Committee Hearing on foreclosure fraud. The Banksters proclaim they are doing everything in their power to keep people in their homes, yet the stories and evidence say otherwise. Below is a paragraph of written testimony from Diane Thompson:
At every stage of the process, from modification evaluation through foreclosure, servicers have failed to serve either the interests of investors or to treat homeowners fairly and honestly. As the robo-signing scandal illustrates, servicers hold themselves above the law in ways large and small.
Bank of America recently refused to process a Chicago-area homeowner for a loan modification, saying that the investors forbid modification, but refused to provide the name of the holder of the loan—despite the fact that federal law requires servicers to provide the name of the holder upon request. In communicating with a California attorney, Bank of America representatives similarly represented that a pooling and servicing agreement forbade all modifications, when, in fact, the Pooling and Servicing Agreement specifically provided for modifications in the event of the borrower’s default. The Bank of America representative in that case went so far as to provide the homeowner’s attorney with an electronic copy of the relevant sections of the PSA from which the clause permitting modifications in default had been excised, and a comma replaced with a period. Tens of thousands of homeowners have languished in trial modifications—facing growing loan principals and increasingly damaged credit—although they have met all requirements to obtain a permanent deal. The errors by servicers are systematic and widespread. In the aggregate, they cannot be explained as good faith mistakes.
Remember Rube Goldberg? Crazy, over complex machines? Zero Hedge posted the below graph by Dan Edstrom that is a flow chart of finding who owns his mortgage. In other words, the Rube Goldberg of residential loans. This is what homeowners are dealing with. Can you follow this?
Meanwhile the Congressional Oversight Panel has come out with a damning report on mortgage and foreclosure irregularities. Here are some dire consequence warnings from the COP press release:
If documentation problems prove to be pervasive and throw into doubt the ownership of pooled mortgages, the consequences could be severe. Borrowers may be unable to determine whether they are sending their monthly payments to the right people. Judges may block any effort to foreclose, even in cases where borrowers have failed to make regular payments. Multiple banks may attempt to foreclose upon the same property. Borrowers who have already suffered foreclosure may seek to regain title to their homes and force any new owners to move out. Would-be buyers and sellers could find themselves in limbo, unable to know with any certainty whether they can safely buy or sell a home.
Further wide-scale disruptions in the housing market, if they arose, could cause significant harm to financial institutions. For example, if a Wall Street bank were to discover that, due to shoddily executed paperwork, it still owns millions of defaulted mortgages that it thought it sold off years ago, it could face billions of dollars in unexpected losses. To put in perspective the potential problem, the mortgage-backed securities market totals approximately $7.6 trillion, so irregularities that affect even a small percentage of this market could have dramatic effects on bank balance sheets - potentially posing risks to the very financial stability that the Troubled Asset Relief Program was designed to protect. The Panel urges Treasury and bank regulators to undertake new "stress tests" to gauge the ability of major financial institutions to cope with a potential documentation-related crisis.
Documentation irregularities could also disrupt Treasury's foreclosure prevention efforts. Some servicers dealing with Treasury may not be able to document a legal right to initiate foreclosures, which may call into question their ability to grant modifications or to demand payments from homeowners. The servicers' use of "robo-signing" may also have affected determinations about individual loans; servicers may have been more willing to foreclose if they were not bearing the full costs of a properly executed foreclosure. The Panel recommends that Treasury immediately undertake more active efforts to monitor the impact of documentation irregularities on its foreclosure mitigation programs.
Documentation irregularities could compound other threats to the mortgage market. In particular, allegations have surfaced that banks may have misrepresented the quality of many loans sold for securitization. Banks found to have provided misrepresentations could be required to repurchase any affected mortgages. Because millions of these mortgages are in default or foreclosure, the result could be extensive capital losses if such repurchase risk is not adequately reserved.
Now look at the Rube Goldberg who owns my mortgage road map above and see what's probable in terms of best case/worst case scenarios. Below is Senator Kaufman's video overview of the COP report, Examining the Consequences of Mortgage Irregularities for Financial Stability and Foreclosure Mitigation.
In the midst of this, foreclosure class action lawsuits are piling up against the Banksters with all 50 state attorney generals starting probes and actions.
Bank executives are swarming Capitol Hill this week to defend themselves against multiple foreclosure-related investigations, including one by all 50 state attorneys general.
Believe this or not, CNN put the protester video front and center on their site. That's a first. Letting the real people speak.