Can our nation’s state attorney generals intervene in the markets based on the simple fact that from Wall Street to Main Street, the credit, mortgage and housing bubbles were built on nothing but unfair and deceptive business practices?”

Massachusetts Courts: In roundly rejecting these contentions, the Court stated that Option One and H&R Mortgage “cannot credibly contend that they did not have fair notice that it was unfair to issue home mortgage loans in Massachusetts with reckless disregard of the risk of foreclosure” and cited the “abundant fair warning” previously given to mortgage lenders by state and federal regulators.

Bingo! The Massachusetts courts could not have said it any better.

These lenders such as Option One and H&R block cannot contend that they do not know that many of these foreclosures are the end result of predatory lending and they have had more than fair warning to do something about it. Yet, the illegal foreclosure wheels keep turning and grinding out victims in every city and state in America daily.

One of my long standing points of view on the mortgage and housing crisis is that, these creative loans that were invented, sold and sliced and diced over the last 5-10 years were incredibly unfair and deceptive.

Defective credit instruments that were made to fail and are essentially “lemon loans.”

More from Mass: The Court further stated that, “[a]nyone with any understanding of home foreclosure recognizes how much injury it causes to the families who resided in foreclosed homes. Consequently, any lender with even a modicum of business morality should recognize that it is immoral, unethical, and unscrupulous to issue a home loan with reckless disregard of the risk of foreclosure.” The Court also rejected the defendants’ attempt to make the Attorney General arbitrate these claims under federal arbitration law.

Bottom line America, predatory lending begets predatory mortgage servicing and predatory serving begets predatory foreclosures. You can’t have one without the other. The chain of crime and criminal conspiracy passes from one entity and person to the next.

Much like a stolen car, fake money or illegal drugs.

Simply selling the stolen item, trading or passing the buck does not mean the original seller is off the legal hook and not convicted for selling the stolen or fraudulent illegal goods. When the investigations are done and the arrest warrants issued, the law comes down on everyone in the scheme/crime and each is implicated for their part and will have their days in court.

The two recent huge victories for homeowners from two of our states busiest attorney generals, California AG, Jerry Brown and Massachusetts AG, Martha Coakely has sent shock waves through the lending and mortgage serving industries. Their landmark settlements provide, “true” relief for some of their states consumers who have been victimized by these lenders and mortgage servicers.

First we had the 11 state mammoth predatory lending lawsuit initiated by Cali’s AG Brown in which Countrywide’s new owner, Bank of America settled with the states in an $8.4 billion dollar loan modification plan of predatory home mortgages.

“With this settlement, homeowners will receive direct relief from the catastrophic damage caused by Countrywide,” said Attorney General Brown. “Countrywide’s lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn’t understand and ultimately couldn’t afford.”

“Unlike last week’s congressional bailout, this loan modification program provides real relief for borrowers at risk of losing their homes. Tragically, California and the other states have had to step in because federal authorities shamelessly failed to even minimally regulate mortgage lending.”

BofA did not admit any wrong doing in the settlement, but when you read the initial lawsuit and the subsequent settlement, it’s as if these AG’s are taking billion dollar candies from fat banker babies as Washington thinks milking tax payers is the solution for the banks and Wall Street’s mistakes.

Personally, I am no lawyer or law enforcer, but it is obvious that these predatory lending cases are as damn slam dunk as they get in the legal world and they are based simply on a principle that I have been advocating here on LoanWorkout.org for the past year. 

Many of these home mortgages that were sold over the last 5 years were incredibly unfair and terribly deceptive.

Loan Workout research for law enforcement, bloggers of the truth and media by Moe Bedard (951) 531-0148:

Bank of America Settlement /Attorney General Settlement

BofA – Countrywide AG Complaint Document

Mass AG Obtains Preliminary Injunction Against Option One and H&R Block

Countrywide Named in Foreclosure Probe November 2007

Fast & Sleazy – Schumer is on Mozilo’s A$$ Big Time November 2007

It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility as a used car salesman December 2007

Borrowers who negotiate loan terms with a mortgage broker in Spanish, must receive their loan documents in Spanish January 2008

Countrywide Sued Over ‘Excessive’ Fees on Defaults February 2008

Should Lenders be Allowed to Participate in the Mortgage Clean Up Process? February 2008

Schumer decried the lenders’ tactics as amounting to “death by a thousand fees.” May 2008

Congress Calls for the FTC to Step in and Stop Predatory Advertising by Lenders May 2008

Your Loan Documents May be the Secret Key to Obtaining a Loan Modification May/2008

Countrywide CEO Steps Down, Cashes In and Leaves a Trail of Destruction June 30, 2008

Brown Sues Countrywide For Mortgage Deception June/2008

Section 5 of the FTC Act – Unfair and Deceptive Mortgages? June/2008

Illinois attorney general advises homeowners to review Countrywide loans July/2008

CA Attorney General Urged to Seek Injunction Halting Foreclosure on Deceptive Countrywide Mortgages August 2008

Lender cuts Mass. deal over subprime mortgages August 2008

7 lawsuits against mortgage lender Countrywide to the Southern District of California October/ 2008

The “loan modifications,” Coakley said, would have kept homeowners in their homes under affordable, “sustainable” terms. September 2008