On Saturday, I noted the first reactions to the proposed Fraudclosure Fiasco (More Mortgage Madness . . .)

I have been working on a longer response to the state AGs — in April, I am a keynote speaker at annual Attorneys General conference in North Carolina, where all 50 State AGs + the US Attorney General  gather — so I should have quite an audio/video extravaganza  for them.

In the mean time, I wanted to keep you up to speed on the reactions to Iowa’s AG, Tom Miller, and his proposed bank settlement:

Bank Analyst Josh Rosner believes the proposed settlement is a not so subtle lobbying attempt by Iowa AG Tom Miller to get appointed Chair of the Bureau of Consumer Financial Protection (Graham Rosner PDF)

Bailout as Reward for Institutionalized Fraud (naked capitalism)

• Karl Denninger states” the only substantive change is that is prohibits “dual-track”  — foreclosure while attempting modification HAMP Flush The AGs: 27 Pages Of Fluff (Market-ticker)

• Protesters rally in D.C. for harsher sanctions on mortgage servicers (Washington Post)

• New CoreLogic Data Shows 23% of Borrowers Underwater with $750 Billion Dollars of Negative Equity (CoreLogic)

• The well-intentioned but doomed mortgage settlement (Felix)

These are less specific criticisms or generally related to Residential RE:

• Diana Olick: More Borrowers Underwater: Why We Should Care (CNBC)

• Mortgage Industry Faces Proposed Changes Under Regulators’ Plan; (HuffPo)

Not a penalty, but “a complete and desperately needed overhaul of the mortgage servicing industry” Foreclosure-Gate Settlement? (Credit Slips)

Category: Credit, Legal, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “Even More Mortgage Madness”

  1. louis says:

    I hope you can post video BR from your speech in April, The response you get will be priceless I’m sure.

  2. jjay says:

    ZIRP and rigged, orchestrated Fed Treasury auctions are the only thing standing between our housing market and total collapse.
    If the one year T bill went to 5%, and a 30 year mortgage went to 9%, this sham economy would collapse and the government could barely cover the interest on the National Debt.
    Other supports:
    Credit card debt about one trillion dollars
    Student loan debt about another trillion dollars
    UI, Section 8 housing, food stamps, medicare, welfare, another trillion or so.
    Huge MIC run on credit another trillion.
    All in all, the most insane debt financed empire in world history.

  3. rip says:

    Same old, same old.

    Show me the money… Me. Not us.

  4. curbyourrisk says:

    Barry……when you go to that meeting…. rip into their asses like no one ever has. Let them know what the rest of America thinks and don’t let them bully you. You should invite some friends with you. Mr Denninger would be more than happy to go to such a seminar and speak truth with you. I can send him an e-mail if you like.

  5. ashpelham2 says:

    I’d be willing to bet that meeting won’t be in Charlotte, home to a big chunk of the mortgage criminals in existence still. Probably in Raleigh, where the AG actually resides…

    Aside from that, I’d in FAVOR of bank help in the foreclosure mess. I’d be willing to let the perps walk, scot-free, if they forgive some percentage of homeowner’s mortgage indebtedness. That’s right. Eat it. And they get to walk.

    If there is no plan for mortgage write-downs en masse, then prepare to be prosecuted.

  6. DeDude says:

    Here are a few questions you might want to throw at those AGs

    Should an act be considered less criminal when it is done by a corporation, and the benefit to those within the corporation directing the crime are more indirect (increased bonuses, stock options, promotions)?

    What are the long-term moral hazard implications if we allow criminal acts by corporations to be punished much less, and let the responsible individuals within the corporation go free?

    If nobody suffers substantial punishment, can we expect them to take it serious when we tell them that it is wrong and should not be done again?

  7. Raleighwood says:

    You could mention how unfair their kid glove treatment of the corporations is to we the (little) people.

    Or you could tell them to do their fucking job.

    Either way works for me.

  8. BennyProfane says:

    I’m convinced that Spitzer was taken down so that he wouldn’t be the lone voice out there.

  9. ottnott says:

    BR giving a presentation to whom? On what?

    Holy cow, I’m dreaming.

    I hope the word cloud has some great big terms in it, like CRIME, THEFT, FRAUD, CRIME VICTIMS, etc.

  10. rfullem says:

    my first question is always ” when did you buy your first house?” this way you know who you are talking to. Second question is about what happens to the 20% down , fixed rate, first time home buyers that bought in early 2007. where is the money?

  11. lalaland says:

    So now we can say you told them so and they just didn’t listen, as opposed to assuming they just didn’t know better. Great.

  12. klhoughton says:

    Check out Credit Slips, where Levitan has been pointing out why some of those “duh”things are needed–never assume a court system.