Screw Sam! Reconstruct the Mortgages with their Rightful Owners (via Deadly Clear)


There is a lot of anger in this article. But I too share disgust with this government’s willingness to help out every kind of financial institution while ignoring the needs of the Middle Class. These people no longer have a defender in the government just a facilitator of the predation

James Pilant

Screw Sam! Reconstruct the Mortgages with their Rightful Owners U.S.Seeks Ideas on Renting Out Foreclosed Property By EDWARD WYATT Published: August 10, 2011 WASHINGTON— Uncle Sam wants you — to rent a house from Uncle Sam. The Obama administration said on Wednesday that it was soliciting ideas on how to turn the federal government’s inventory of foreclosed houses into rental properties that could be managed by private enterprises or sold in bulk. The goal, the administration said, is to stabilize neighborhoo … Read More

via Deadly Clear

Decision Not to File Charges Against Countrywide Excec Mozilo Upsets Blogosphere!


From the New York Times article by Gretchen Morgenson.

Mozilo (From the LA Times)

Federal prosecutors in Los Angeles have dropped their criminal investigation into Angelo R. Mozilo, the former chief executive of Countrywide Financial, once the nation’s largest mortgage lender, according to a person with direct knowledge of the investigation.

The closure of the case after two years of inquiry follows last October’s settlement by Mr. Mozilo of insider trading allegations made by the Securities and Exchange Commission. Regulators had contended that Mr. Mozilo sold $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering. Countrywide and Bank of Americapaid $45 million of Mr. Mozilo’s $67.5 million settlement, and he was responsible for the rest.
I was very unhappy about this, finding it difficult to believe there was no criminal conduct on his part.
But I am not the only one upset.

“All of these senior people got huge payouts and left behind the carnage, which has hurt many hundreds of thousands.”

From 4closureFraud.

Hundreds of billions of dollars have been lost by investors while millions of borrowers have lost their homes. Few of the people who ran the institutions that contributed to the disaster have been found liable.

Women Born Transsexual

Is it not clear to anyone by now that it is men like this who, even with the penalties levied against them, are still sitting pretty with large bank accounts as American’s are still losing their homes? Tell me it was the American people’s fault for signing into hefty monthly payments….go ahead, I dare you.

The Tumultuous Times

Mozilo’s settlement with the S.E.C. was for a bit over 10% of his estimated net worth of $600 million. It was surely a good deal for him if he could avoid admitting guilt and, especially, escape being criminally prosecuted for fraud.

House of Bread

Last week, California’s new AG fined Mozilo roght around $6 million, if I recall, and I opined that were he to have forgotten his checkbook, he could likely pay the amount using change found in his car.

Foreclosureblues

Un-fucking-believable. It looks like the rich and corrupt can get away as long as they pay. Since this comes from the Eric Holder-led DOJ, I wouldn’t be surprised this was done to keep all those Democrats, who received sweet-heart deals, out of court records.

Scotty Starnes’s Blog

Countrywide Exec walks away with your money and no criminal charges

Your Daddy’s Politics

 

Bank of America Sued Over Countrywide Mortgage Related Investments


I’m surprised this hasn’t already happened. When you buy securities you expect that they be “secure.” These are not supposed to be the equivalent of penny stocks. Countrywide packaged securities that it knew were risky and packaged securities that it knew had serious ownership issues.

This is hard legal question. What is the first warranty guarantee that a seller gives automatically (implied)? Answer, that they own the product they are selling. That is the first thing you are supposed to do. And Countrywide sold a product that it knew it didn’t have a clear title to.

Is this going to be hard lawsuit to win? If it can be proved that Countrywide knew that its title to these properties was not secure, Bank of America which now owns Countrywide is going to be pay out more. I have heard estimates of up to 40 billion dollars in possible paybacks over these bad securities.

From CBS Money Watch

A lawsuit alleges Countrywide Financial Corp. and two of its former executives misled institutional investors who were stuck with huge losses from mortgage-related investments that they say were portrayed as low-risk.

The lawsuit was filed Monday in New York State Supreme Court by investors who bought hundreds of millions of dollars in Countrywide’s mortgage-backed securities from 2005 to 2007, before the housing market went bust. The list of a dozen plaintiffs includes New York Life Insurance Co., TIAA-CREF Life Insurance Co. and Dexia Holdings Inc.

The complaint names Countrywide, various subsidiaries that issued the securities, two former company executives including ex-CEO Anthony Mozilo, and Bank of America, which bought Countrywide in 2008.

The big guns are out on this one. Read a little more –

The plaintiffs allege they wanted conservative investments that Countrywide portrayed as being backed by low-risk mortgages written according to strict underwriting criteria.

Materials that Countrywide subsidiaries circulated to potential investors indicated all the mortgage-backed securities had been assigned investment-grade ratings, and most had top-rung “AAA” ratings, according to the lawsuit.

But as of last month, more than 31 percent of the mortgage loans underlying those securities were over 30 days delinquent, in foreclosure, bankruptcy or repossession, the lawsuit says. The securities “are no longer marketable at or near the prices the plaintiffs paid for them,” leaving them with “significant losses,” the complaint says.

The lawsuit seeks unspecified damages for alleged securities fraud.

These investments were marketed as conservative (solidly secure), given a triple AAA rating (higher than any paper you ever wrote could get) and are now sinking in value daily.

The American mortgage crisis just keeps rockin’ on.

James Pilant