The $25 Billion Sellout is so worthless that consumers should be raging in the streets. Â Oh, it’s coming but it’s apparently going to take people a long, long time before they wake up.
According to the terms of the deal…and it really is a deal for the banks…they get credit for walking away from the vastly unsecured portions of the fraudulent loans they made. Â This is so worthless because the dedicated attorneys that are not afraid to battle the banks know that when we push them hard enough, back them into a tight corner, pound away on them with discovery, pleadings and hearings, we can often negotiate a way out for our clients. Â Here’s how it works:
Hello Bank of Amerika, I look forward to litigating with you for the next three years! Â What? Â You will consider negotiating a settlement with my client rather than fighting me in court for the next three years? Â OK!
It happens all day, every day but we don’t make headlines. Â The AGs from all across the country are acting like this is some sort of great deal. Â It’s not……it’s treason. Â Treason because this is financial terrorism that will lead to domestic instability. Â At some point in time people will wake up, people will start paying attention.
Announcing the settlement, getting all the press having all the big release was brilliant propaganda. Â All the national press cut and pasted the bank’s press releases right onto the newspapers and Brian Williams and the national anchors and local news just read it all. Â But now that the terms are public, no one is bothering to read any of the details…
Americans really have become stupid, lazy, compliant and soft. Â The banks raped and robbed us and they continue to do it. Â With this agreement, they do it with the support of our government.
I beg of everyone….read the agreement, read the OIG Audit Reports…it’s really most discouraging that not a single mainstream reporter has picked up on this…but great work by Abigail Field and of course Naked Capitalism and Firedog Lake…turn off all other sources, they’re polluting your brain….
I did not realize how bad the FL AG deal was until I read the FL AG’s side deal.
(A) The Banks don’t have to pay any fines at all. They get credit for the losses they have already made.
(B) High interest speculative second mortgages, mostly wiped out by the fall in property value, will be made whole by the full face value of the worthless second mortgage being applied against what they should have paid in settlement. This is giving money to cover their losses, not levying a fine.
(C) A home owner offered a refinance counts, based on a formula of total principle x drop in interest rate x 30. So if the loan amount is 100,000.00 and the bank refinances down by 2%, to come into alignment with current market rates, the Bank is credited with 100,000.00 x 2 x 30 = 60,000.00
Which seems very strange since we are not talking about a principle reduction, therefore home owner still has to pay of the 100,000.00, but at today’s market rates.
(D) It seams the credits can be taken across the ENTIRE banks portfolio. Therefore all refinances by the Bank count as credits against their fine, not just the people in foreclosure.
(E) Not only are the banks are getting full value credits for the amount of second loans which are currently worthless, but if there is a deficiency after the court sale, the bank gets full credit for that, even though such a deficiencies are commonly uncollectable and so the value of a foreclosure deficiency normally valued at a steep discount.
(F) The extra credit of 125% for any activity in the first year was probably put in by LPS as something they could drop in negotiation, I am sure they were surprised when they got it.
(G) Here is the kicker: The settlement supplement is for the Banks. I would argue in most cases they are still not the real parties in interest and so a principle reduction is made by the investors, not the bank, and a deficiency judgement does not belong to them, and so cannot be used as credit.
While I do think the Banks are the real parties in criminal and civil fraud, I don’t think they are the real parties in interest in the loans, loan mods or deficiency judgements. They will be using other peoples losses as credits to pay their fine. The legal and tax implications on that are mind-boggling.
freaking scary…huh? great analyis…but no reporter will cover this…much less actually read the agreements…..
Matt, also note that the “persons” signing for the “servicers” are not even identified by name, nor by title or capacity to represent the “servicer.” (Looks like Cheryl Samons perhaps could have signed these…) I guess it’s fitting that the FL AG got a robo-signed agreement to settle the robo-signing “servicers” that she steadfastly refused to investigate…