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| © Associated Press |
No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:
- Bankers make NINJA loans, securitize them, and sell on to government GSEs
- Bankers destroy all the loan documents and begin random
and fraudulent foreclosures, throwing millions of innocent victims out
on the street
- GSEs sue bankers and force them to take back bad mortgages
- Bankers sell servicing rights for the same bad mortgages back to GSEs, who overpay
- GSEs resell servicing rights to companies run by former GSE officials
- Bankers slapped on wrist with puny foreclosure
settlement in return for government promise it will never sue them for
past foreclosure fraud
- Government stress test claims banks are healthy
- Bankers get sweet deal, counting mortgage mods for best borrowers toward the settlement
- HUD report released demonstrating massive foreclosure fraud that reached to highest levels of banks
- Vampire Squid Executive Director fires off resignation letter decrying bankster culture
- Banksters walk away scott-free as statute of limitations runs out for criminal behavior
Beginning in the late 1990s the biggest banks and GSEs created MERS to end-run around county recorders so that they would not have to pay fees to properly register sales of mortgages that would be securitized.
They then proceeded to lose or destroy all (or virtually all) the written documents, broke the chain of title, and screwed up even the electronic records. Nobody knows who owes what to whom, so the loan servicing arms of the biggest banks decided to go on a foreclosure frenzy to seize as many homes at random before anyone found out.
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