HAMP: Using Taxpayer Money to Extend, Pretend, and Defend

For those of us that have been following this cyclone of destruction (the foreclosure epidemic), this comes as no surprise but here is a new article on how HAMP does not work, real modifications are not happening, and the program merely helps the banks (not the true owners of the debt in most cases, but merely the servicers)  “extend and pretend” while Americans  (the same taxpayers who bailed them out) lose their homes, jobs, and life savings.  The servicers claim false numbers of “success,” in the face of bald facts that show otherwise. 

Meanwhile, Treasury acts as though it is doing something.  As Elizabeth Warren states in this article:

 “Treasury’s response continues to lag well behind the pace of the crisis…its programs still are not keeping pace with the foreclosure crisis.” Just 168,708 people helped in the first 12 months of the program, as Elizabeth Warren put it, when the rate of monthly foreclosures was nearer to 200,000! Why? For Elizabeth Warren at least, because the administration’s plans seem ‘targeted at the housing crisis as it existed six months ago, rather than as it exists now.”

And nobody addresses the fundamental problem of the servicers pretending to be authorized to modify when the securitization trusts where the note was pooled are actually dissolved, and the “collection rights” sold to vulture debt buyers (in some cases US governtment sponsored buyers).  This also ignores the fact that the security interest may have been impaired in the note’s merry path to destinations unknown (but almost surely not disclosed by the banks, or not even known to the banks’ own lawyers). These lawyers–on behalf of their numerous claimed clients, many with conflicts between them— vociferously claim that the note was not securitized (when the facts show that it was) or try to claim that it’s okay if the note went through several entitites but the deed of trust was assigned years later from a defunct originator to a dissolved trust and ask the judiciary to rubber stamp their non-judicial foreclosures when called to the carpet.  We won’t discuss the fraud in the recorded documents (expired notary stamps, timelines that are impossible, unacknowledged signatures, forged signatures, triple hearsay affidavits) because that is a subject for another day.

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