As an attorney who defends consumers in mortgage foreclosure cases and who is helping consumers with mortgage modifications, I sometimes hear opponents or other parties argue that the people who ar in foreclosure should just be thrown out of their homes…who cares about any other issues about what the banks did wrong. One consumer who gets the problem and is doing something about it is Paul Muckle, who filed a federal lawsuit, Muckle v. USA. In this lawsuit, he sues Bush, Obama, Geithner, Paulson and the governors of all fifty states….but more on that later.
Widespread and Systemic Fraud
Problem is the individual foreclosures are just the tip of the iceberg. The real issue is the systemic fraud that went from the top to the bottom of the entire world economic system. Banks, mortgage companies, Wall Street, Washington DC and world financial centers all conspired to take billions of dollars in shift it from the general population and concentrate those billions in the hands of a few. If the initial fraud and scheme wasn’t bad enough, the bailout and billions that are being poured right back into the system represent a second bajillion dollar heist.
It’s difficult to explain the intricacies of such a wide ranging systemic fraud, but here are the basics.
1.Mortgage brokers begin the fraud when they concocted information about income/assets and value of property on the individual loan applications. (Brokers pocket thousands on the individual loans.)
2. Mortgage lenders pool thousands of the fraudulent loans into packages then sell them to brokers on Wall Street. (Lenders pocket millions on the packages.)
3. Wall Street brokers sell the packages of mortgage loans to retirement funds and investment groups around the world. (Brokers pocket billions on the packages.)
4. The investors who purchased the packages discover the pools of loans are fraudulent. (Investors demand millions in refunds and some are made whole with US taxpayer dollars.)
5. The institutions and individuals that started and perpetuated the fraud are paid millions (billions?) allegedly to help correct the problems they created. (They shove millions in their pockets.)
MUCKLE V. USA
The link that appears here will take you to a 106 lawsuit that a private consumer filed that lays out in painstaking detail exactly how the fraud worked and explains a bit of the long term consequences. It also makes a compelling argument against the continued pursuit of foreclosures that are part of the problems as explained above. Give it a read, then contact me if you have any questions.
