The accountants were cooking the books to the tune of billions of dollars. Investors ate up these loans in massive quantities knowing that they were junk. Then they bet against themselves and reinsured these same loans in the event of loss (how ironic).
Lenders pushed these toxic mortgage products like a drug dealers to their salesmen (brokers) who in turn flooded every neighborhood in America with these cancerous mortgages. Often looking at their best interests and not the borrowers.
Lenders in turn sold these loan pools to the investors and then would immediately wash their hands of the cancer by giving it to their collection boys, “the servicers” who’s’ job is to make everyone miserable and collect bogus fees on what are essentially fraudulent and predatory mortgages.
Why is the FDIC now so worried about this? They were sitting back until recently, when Sheila Bair, Chairman of the FDIC warned lenders to fix these loan and freeze the rates of these adjustable mortgages. Do you think it’s just because they want to save the poor little homeowner? NO! They don’t want to let the cat out of the bag.
That cat is what I am talking about right now.
This is DEFINITELY the largest ponzi scheme in the history of civilization and homeowners are the victim of the scam.
Think about this please!
I understand that it is a tough time for you and saving your home is the number one priority. But all of us need to really band together and fight back because obviously we are not winning the fight. We need to expose the real truths and the real reasons for this foreclosure epidemic.
If 2 million homeowners can unite, we can FIGHT and WIN these thugs that are snatching up homes and dreams daily.
Please take the time to think about this and read one my previous posts on “The Great American Swindle.”
“The Great American Homeowner Swindle” factoids of the day.
Investors who bought your mortgage made a bet that you would pay on your loan and it would be performing asset for them. But then they also immediately bet against themselves by reinsuring these investments in the event that they would fail. The insurance policies are setup at the face value of the loan amount when you received your loan.
This serves a dual purpose. Why? Because the investors will win either way. If you pay on your loan great, then they get their money. If you don’t pay, then that’s great too, because they still get their money through the insurance policy.
Where they don’t get paid ALL the money is if they work with you and modify your loan or cooperate in a short sale.
Everyones wondering why lenders and servicers are not working with homeowners. Well that’s simple to explain. Lenders and servicers are not in charge of most of these loans. Investors are and their calling the shots. Why would they take a big loss on modifying your loan or taking a huge loss on a short sale, when they can collect full face value for their insurance company?
Here’s a real life example for you to think about:
Lets say you get into a car accident and you have insurance to protect you for the full value of your car. Your car is just wrecked and beat up. The guys that hits you says, “Let’s take care of this without involving the insurance company because we can work on this together. I know your car was worth $30,000 and it was real nice. But hey, how about you take $15,000 cash and we’ll all forget this ever happened?
Would you take $15,000 less so you can help that guy the just hit you and totaled your car or would you report it and get the FULL VALUE of your car? I’m sure anyone would chose to take the insurance route and get full value and all their money for a new car right? Exactly.
Now multiply that by billions of dollars and you have a pretty good insurance scam going. You’ve been swindled and now the swindlers are kicking you on the street.
My question to you, “Is what are you going to do about it?”
YES YOU!
Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-271-6283 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email
Way to go, Moe. Great car insurance analogy — this makes things clearer for those who do not understand that their lenders, brokers, etc. cannot loose, only the poor homeowner.
AND taxpayers!
If these guys were doctors providing the same level of care, loyalty, and dilligence in their practice, the malpractice suits would be through the roof. THEN, their insurance companies (Doctors) would CANCEL them, and put them out of bussiness.
I guess there is a major double standard??
Anthony
Thanks Anthony! Yeah, talk about a double standard. They seem to think they are untouchable. The attorneys I work with and several that have contacted me are VERY interested in what I am writing because it ALL makes perfect sense.
Did I hear, class action?
I’m all for fixing this mess without litigation, but that seeems to be no other alternative.
YES, you are hearing class action, loud and clear!:)
This is very interesting stuff. So many legal issues come to mind. The insurance companies would have a good case for not paying out on the policies if it can be shown that the lenders were not using diligent efforts to make sure the loans were of the risk level they were represented to have. The ratings agencies would be liable for not doing their part in rating these securitized tranched investments. The lenders who sold (transferred) these exploding ARMs like they were playing hot potato with a grenade would also be on the defendant side of suits.
- Paul J. Molinaro, Esq.
http://www.fransenandmolinaro.com
Yes Paul. I am an investigative blogger on the biggest story since ummmm..well ever. Think about all we have spoken about and my various posts that makes perfect sense. Well, they can play DUMB and say, “Well we don’t rate these bonds, rating agencies do and at the time they had stellar performance ratings.”
Yes, in my eyes they are all defendants and a court of law will decide who is left holding the burning hot, over done potato. I feel like you said, they will all face the music when this is all said and done and they should due to their complete disregard to fixing this mess that we are in.
I think we have a serious LENDRON on our hands and there will be many CEO’s who might not have such a tan anymore once their locked up in a 6X9 with no sun, let alone windows.
Thanks, Paul, for a qualified opinion here. I would like to be in the middle of the opposing sides!
Lender due dili and liability may allow the insurance companies to deny claims, I suspect, if proven that the cavalier underwriting standards used were not covered under E & O.
I am going to call Marc DAnn’s office and ask for a meeting. He is the Ohio AG in the news lately, and his office when he was a practicing attorney was 10 miles from my home. He actually opened a sattelite office in the Federal Building in Youngstwon, Oh recently.
I will let you know what comes out of it.
Thanks again
Anthony
“LENDRON”
Anothe good one, Moe! And it looks like the lights will be turned out in our houses again!
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