Mailvox: an unfortunate series of minor mistakes

From an anonymous mortgage broker: “There are blatant efforts by several of the giant mortgage-security selling institutions to intentionally “fail to find” the relevant loan documentation. We have seen multiple clients in September and October who either face foreclosure or had been foreclosed and WERE NOT EVEN LATE on their mortgage payments!”

After looking into these serious allegations, I have been reliably informed that these sorts of unfortunate accidents are bound to happen from time to time given how many millions of mortgages are outstanding.  I have no doubt these isolated incidents were mere clerical errors and that the bank(s) involved will be pleased to sort out any mistakes that were made as well as making all appropriate restitutionary actions that are required by the law.  Which, I hasten to note, the mortgage banks totally respect.

In completely unrelated news, I would like to announce that I recently decided to begin accepting blog advertising. The cost for a Sponsored Post begins at €1 million.

In which we are called out

Chateau comments upon America reaching the Crazy Cat Lady Stage:

The crazy cat lady stage of America — yep, that about sums it up. So what follows? Who knows. It’s possible the pendulum will swing back, perhaps violently. As we here at the Chateau relish provoking reminding the readers, giving women the right to vote has been a disaster for liberty-loving small-government patriots. Do any of the mainstream conservative or libertarian bloggers have anything to say about Lott’s study? Their cowardly silence speaks volumes.

I responded thusly:

Cowardly silence? On women’s suffrage? Just to just to give one conservative and one libertarian example, Ann Coulter and I have both been very clear on our opposition to women’s suffrage. I have written on the subject numerous times; here’s one example from 2007:

“What Ann understands and so many nominal conservatives do not is that women’s suffrage is completely incompatible with human liberty or a republic as described in the U.S. Constitution. The two cannot co-exist. One cannot defend freedom on the basis of emotion, as fear always runs to promises of security, however nebulous.”

Women’s suffrage has been a complete and unmitigated disaster across the West and it is doubtful that any society can survive it for long.

The fact is that it is impossible to rationally defend women’s suffrage in a system of limited democracy on ANY grounds except to assert that it is an intrinsic and self-evident societal good. One may or may not agree with that, but regardless, to simply label something an intrinsic and self-evident good is not tantamount to actually making a case for it. To even attempt to begin making a genuine argument for women’s suffrage usually requires a fundamental error in confusing “the act of legal voting” with “freedom” and/or “human liberty”. But neither voting nor democracy are synonymous with freedom or societal well-being, which is precisely why the Founding Fathers limited the franchise so strictly and why so many of supposed champions of democracy are actively opposed to further expanding democracy in America beyond the equalitarian expansion of the electorate presently permitted to select its nominal representatives.

If a single American feminist has embraced the concept of genuine democracy with a 100 percent national franchise, which I support as being vastly preferable to modern American pseudo-democracy and in which there are absolutely no anti-democratic strictures on the will of the people of either sex, I have yet to hear of it. Which should suffice to demonstrate that whatever the feminist rationale in support of women’s suffrage might be, it doesn’t appear to be based on a principled commitment to democracy.

Obama is behind the curve

His adminstration is still tap-dancing around the central issue of the mortgage frauds despite the fact that everyone who is paying attention now knows that the foreclosure fraud is only the tip of the iceberg. Notice how the PR communique from his U.S. Secretary for Housing and Urban Development completely ignores everything but the foreclosure aspect and tries to portray illegal banking actions as “a bank mistake”:

No one should lose their home as a result of a bank mistake. No one. That is why the Obama Administration has a comprehensive review of the situation underway and will respond with the full force of the law where problems are found. The Financial Fraud Enforcement Task Force that President Obama established last November has made this issue priority number one. Bringing together more than 20 federal agencies, 94 US Attorney’s Offices and dozens of state and local partners to form the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud, the Task Force is examining this issue and the Attorney General has said publicly that if it finds any wrongdoing the members of the task force will take the appropriate action. The Federal Housing Administration and Federal Housing Finance Agency have launched reviews to make sure servicers are in full compliance with the law. The Office of the Comptroller of the Currency has directed seven of the nation’s largest servicers to review their foreclosure processes, fix the processing problems and determine whether there is specific harm that has been caused in individual cases.

The message all these institutions are sending is the same: banks must follow the law — and those that haven’t should immediately fix what is wrong.

What an unsurprising and incompetent PR-driven response. But it’s informative to note that a top administration official is willing to come right out and state that banks that have broken the law will not be prosecuted, but have merely to “fix what is wrong” in order to escape punishment. As I posted yesterday, there is absolutely no Rule of Law in the United States anymore. There is not even a serious pretense of it.

If a member of the non-favored classes breaks the law, he is arrested, prosecuted, and tried if he is lucky. If he is not, (in which case he may not have even broken a law, but merely been targeted by a bureaucratic agent), he is subjected to a non-judicial procedure and asset-stripped. If, however, a bank does not “follow the law”, it is expected to merely “fix the mistake”. Moreover, it is an explicit announcement that the Obama administration fully intends for foreclosures to continue less only those that are most PR-damaging to the banks.

It certainly settles the issue regarding Obama’s political intelligence. Like McCain in 2008, he has sent a very public message that he is taking Wall Street’s side against the rest of America.

Monday column

Fixing the Mortgage Fraud

It is both extraordinary and amusing to see how fast Washington and the Wall Street lapdogs that presently pass for our financial media have been forced to turn on a dime by the exposure of pervasive criminal activity on the part of mortgage-backed security sellers. The summer-long collusion of the Republican and Democratic Parties in passing H.R.3808 on an off-the-record voice vote, which would have permitted some of the financial institutions that committed loan title fraud to retroactively hide their misdeeds, was shut down by a furious reaction across the blogosphere that sparked the Obama administration to act in a single day.

And the initial response to the fraud by the market cheerleaders that the whole story was essentially a great big “nothingburger” has rapidly subsided into desperate attempts to change the focus from the widespread fraud committed by the security-selling banks to the possibility that defaulting homeowners might inadvertently profit from this pervasive criminal activity on the part of the banks that offered them mortgages. But it’s not about the foreclosures. The foreclosures are merely the deadly tip of a four-part iceberg that involves mortgage-writing fraud, mortgage-backed security-selling fraud, title-transfer fraud and finally, in a futile attempt to cover up the preceding three frauds, the much-discussed foreclosure fraud.
The column continues at WND

ADDENDUM: As further evidence that the foreclosures are merely a consequent issue rather than the central one in the great mortgage fraud, here is a copy of a letter reportedly sent to Bank of America from the Association of Financial Guaranty Insurers asserting that BOA must repurchase as much as $20 billion in mortgages due to its fraudulent representations and warranties and that “well more than half” of the securitizations from 2005 through 2007 “qualify for repurchase by BOA.

ADDENDUM II: Just so we’re all clear, “clerical mistakes” and “the real issue is deadbeat borrowers” is Wall Street’s official propaganda line: “”Don’t you think, out of 10 million data points, there will be 500 unbelievably screwy examples? It’s a little bit so what. I don’t get it. It doesn’t feel like this is fraud. Maybe there is sloppiness, but at the end of the day, people took out mortgages they can’t pay back. Now I worry that if anything, the government is making something that is just a clerical error into something that would be nefarious or whatever.”

But the government isn’t inventing anything, in fact, all the federal government has done to date is play enabler and incompetent defense attorney. Now ask yourself one question. Does Wall Street’s interpretation of the current situation explain in any way why the GSEs, pension funds, and bond insurers are filing very large financial claims against the mortgage-securitizing banks?