New York Governor, Mr. Spitzer has called on the financial services industry to create a fund to help borrowers modify loans and keep them in their homes.
“The state can’t do it alone,” Mr. Spitzer said at a news conference with New York’s attorney general, Mr. Lender Head Hunter, Andrew Cuomo. If private companies “are willing to take writedowns by putting together this fund, they can stabilize entire classes of mortgages.”
Right on guys! Now, that’s using our thinking caps. Make these guys clean up the massive mess they created.
Spitzer says, “The goal is to require more in-depth evaluation of borrowers ability to repay, prohibit certain loan practices, clarify mortgage brokers’ duties to borrowers, and strengthen state enforcement tools.
Mr. Cuomo yesterday announced plans to subpoena Fannie Mae and Freddie Mac as he expanded his investigation into “widespread” collusion between real estate appraisers and lenders including good ole Washington Mutual. The king of the Option ARM loan.
On November 1st Mr. Cuomo sued First American Corp., the biggest American title insurer, for illegally boosting home appraisals under pressure from Washington Mutual.
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RE: “The attorney general estimated that more than 25 percent of subprime foreclosure cases involve some fraud by lenders.”
One in four… the only ones who did better was the energy crooks… they got every one of us… well except for that one guy in West Virginia who “don’t need no ‘lectricity.”
It’s truly nice to see the investigations starting. This means facts get uncovered and we’ll see what was going on. The first step in deciding how to help borrowers is to see what went wrong and who’s to blame, then quickly make the “guilty” ones take responsibility for their wrongdoing and pay to clean up the mess.
- Paul
If you think about it. Everyone got scammed and will pay in the end.
We will see many more before this is all said and done.
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