Remember how, when AG’s from across this nation announced they had reached a settlement with the big banks and I wasn’t happy about it? I screamed…SELLOUT….and….FASCISM…and…..WE’VE ALL BEEN CHEATED AND CONNED AND SOLD OUT BY OUR OWN GOVERNMENT?
Well, it’s actually much, much worse than even I screamed about then. My arguments after it was released were that the $25 billion settlement number was way too low given all the wrong that was done. Keep in mind, the settlement was not really about robo signing…no, the settlement came because the banks engaged in MASSIVE INSURANCE FRAUD…they cheated the federal government by submitting billions of dollars in false insurance claims….the loans are insured by the federal government and when they went bad, the banks got paid the insurance proceeds….They collected billions that they should not have.
They pocketed billions of dollars in false insurance claims, paid for by you and I, the American Sucker/Taxpayer.
Well, not only was the settlement itself a ridiculously small number to begin with….the banksters gamed the settlement from the beginning and are not paying anywhere near the fictionalized numbers that were on all the press releases.
GREAT STUFF…THE AMERICAN TAXPAYER GETS SCREWED (HARD) AGAIN.
Now, I have to wonder….did the Attorneys General from states all across this country know just how bad this deal was? Did they get played on this settlement or were they in on it and did they know how bad it was from the beginning? It doesn’t matter because either way, the American taxpayer gets pounded into the ground, the banks come out the big winner and government has proven once again to be completely captive and doing the bidding of the banks.
From Firedog Lake:
The more I look at this foreclosure fraud settlement report, and the reliance on short sales for the allegedly positive results, the angrier I get.
Let’s first understand what the numbers refer to when the Office of Mortgage Settlement Oversight lists $8.67 billion in short sales. That number does not refer to the sale price of the home, but the difference between the sale price and the amount owed on the mortgage. This unpaid principal balance is then forgiven by the bank.
According to the OMSO, 74,614 borrowers took advantage of a short sale that qualified under the settlement, with an average of around $116,200 per borrower. This includes first and second lien remaining balances, on both short sales or ” deeds-in-lieu,” where the borrower deeds the residents to the servicer or investor instead of a foreclosure (basically the same thing, only the ” buyer” is the servicer or investor, instead of an outside third party).