Citing recent reports of “robo-signers” at some of the nation’s biggest lenders, Maxine Waters, a California representative (D), called for a nationwide moratorium on foreclosures for the duration of a federally run investigation[1]. To supplement her request, Representative Waters wrote letters to Timothy Geithner (Treasury Secretary), Edward DeMarco (Federal Housing Agency Acting Director) and David H. Stevens (FHA Commissioner). In the letters, she requested that “their agencies fully use their authority to investigate the mortgage servicing companies, enforce regulations and take steps to monitor compliance. She also wrote to many CEOs of major financial institutions asking that they voluntarily suspend foreclosures and “thoroughly review their procedures.”
Waters wrote these letters in addition to being part of the California delegation headed by House Speaker Nancy Pelosi that requested earlier this week that the federal government formally investigate loan servicers’ foreclosure practices. The delegation hopes that a federal probe will stall foreclosures in California long enough to prevent homeowners who may be losing their homes in error from losing them.
To further advance her self-described “legislation that helps homeowners,” Waters also introduced and is a proponent of the 2009 Foreclosure Prevention and Sound Mortgage Servicing Act. This proposed bill would make it illegal for mortgage servicers to foreclose on properties without first offering the delinquent borrowers the option of a loan modification. She believes that “it is likely that many families wrongly lost their homes as a result [of the robo-signers]. This should not happen, and we must not tolerate such actions,” Waters said in her letters and in reference to her legislative and letter-writing campaigns.
[1]http://nationalmortgageprofessional.com/news20976/rep-waters-calls-nationwide-foreclosure-suspension-and-investigation
And what if you were you losing your home wronglfully. Would she be so economically illiterate then?
Yes – because there is already a legal system in place to handle such things. — Bryan Ellis
Yeah, many guilty parties all around. But the bottom line is that lots of people are getting freebies at the expense of the more responsible among us.
Lenders get huge bailouts
Vulture funds get “loss sharing agreements”
Servicers get to milk the modification merry-go-round, cut corners to make a few more clams, and create a mess that begs for outside intervention (MERS, chain of title issues, false affidavits)
And lots and lots of irresponsible borrowers get to live rent free for 1,2,3 years (or skim rent) whilst not paying taxes, ins, or HOA, then strip the appliances and sell them on CraigsList on the way out, AND get cash4keys or “relocation assistance” of anywhere from $1500-$5000.
Nice gig if you can get it. “Poor, victimized homeowners” my @ss.
So many people on the take for their own greedy objectives being subsidized for those of us who chose not to commit fraud. Amazing.
Feel like a complete fool for being ethical and following the law because it obviously does NOT pay!
Unfortunately I read to many ignorant comments like the one posted here. People so worried that their neighbor might get few bucks that they cant get while the banks have just destroyed an entire industry and most of the economy along with it. Folks…your neighbor is not the enemy! The enemy has already robbed us of Trillions of dollars. It was done almost over night by a government that is bought and paid for by a very small minority. The media will distract you with minor issues while your banks have become the welfare we cant afford. If preserving capitalism was the mission then they should have let them go. Now we have Goverbanks. They have effectively eliminated all of their competition.We have done everything possible to make this crisis worse. This is not a democrat or republican statement they are both bought and paid for by small groups. This country is headed for a long long economic dead spot. Unless we get campaign finance reform and the lobiests out of Washington all the other issues are just fodder for the news shows or should I say entertainment shows. So if you think the issue is your neighbor getting a few months rent free I would encourage you to look up instead of down. As Billy Joel said in one of his famous songs….”I didnt start the fire” Look at who started the fire not at who luted an old worthless television after the fire was over.
Seems odd that some of the people at the bottom of much of the economic problems we currently have are the ones looking to further mire things down and extend the housing mess, among others, with one more ineffective investigation!
She is as Bryan stated in the lead, economically illiterate, maybe worse! Hard to tell as the congress does not seem to have much heart for investigating her corruption!
It’s about time more people here are saying what I have been saying all along: We are no longer a FREE country. We are managed by bought and paid for politicians and corporate greed is out of control.
Until there is a MASS EXODUS from banks to Credit Unions the banking industry will continue to get away with “Bank Robbery”.
Justice is NOT prevailing in (many) Florida foreclosure suits.(Banks) must follow the letter of the law when foreclosing.
Do you really think banks have the ability to police themselves?
Of course, now you are hearing just how negligent courts (in) Florida have been in pushing through final judgment. It’s taken a yeoman effort by many attorneys (esp. ICE Legal on Florida’s east coast) to demand judges STOP signing off on judgments.
I don’t know what experience any of you have with foreclosures, foreclosure defense, short sales, etc. I sit with attorneys every week. I work the front lines. At no time do I pretend to know WHY every homeowner falls into foreclosure.
Of course, some people bought beyond their means.
Of course, some people took out a bazillion dollars against their (inflated equity) and blew it on toys.
Of course, some people signed off on subprimes and didn’t read the paperwork.
In my little world, 90% of the “normal” property owners I meet every week are not sponges, deadbeats, losers, squatters or any other name used to paint ALL people facing foreclosure.
Unless you are (IN) Florida or one of hardest hit areas, do you REALLY know what’s going on…or does your insight come from news reports?
Title issues have not hit the fan…yet. Landmark Title is pretty concerned, aren’t they?
I choose not to politicize this national tragedy. In my mind, BOTH sides of the aisle are culpable for what’s happened & what is happening. Every move politicians make is controlled by the polls – with intent on re-election.
Maxine Waters and EVERY other politician is nothing but NOISE, blowing her/his own horn…each with an ulterior motive.