On July 29 and 30th 2009, The New York Times posted very interesting stories about how the banks are making huge money on foreclosures,. They garner a slew of fees and they’re draining the homeowners for all they have and then selling their homes and charging past late fees on the sale price. It’s a disgusting abuse.
The banks, in turn, are supporting the FTC that did not control them in the first place. This is what got us into this massive financial crisis and now the FTC is going after attorneys and mortgage refinancing firms that are fighting the banks for the homeowners.
The banks absolutely DO NOT want to modify mortgages because they’re earning way more money by running their no-refinancing scams. These tactics are carried out by ALL banks, including OneWest Bank/IndyMac, the subject of several stories at this website.
Our government officials have failed us, and now they are making it so the middle class will ultimately disappear, and the home-market will disappear along with them. The banking industry is perpetrating ongoing fraud on the American People.
NY TIMES ARTICLES: (please note, these are the current links to the articles; if the links expire do a search at nytimes.com for the author name; you may have to register at the site if the article link expires)
For Mortgage Servicers, An Incentive not to Help Homeowners (Lucrative Fees May Deter Efforts to Alter Loans) – by Peter S. Goodman — July 29, 2009
Gist of Article: This week, the Obama administration summoned mortgage company executives to Washington to demand they move faster to lower payments for homeowners sliding toward foreclosure. But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans. Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services. Read More by Clicking the Article Title Link.
Kept Near Foreclosure, House in Limbo Benefits Only The Bank (Homeowners and Investors May Lose, but the Bank Wins) – by Peter S. Goodman
Gist of Article: (in discussing a particular Los Angeles property — here’s a short except of the article) But the basic facts about 322 Crane Boulevard mask a more complex accounting. Twice this year, Bank of America has ordered appraisals of the property as part of Mr. Crawford’s request for a short sale. Both times, the bank gave the order for the appraisal to its wholly owned subsidiary, LandSafe, paying the company a total of $900. When Mr. Crawford stopped paying the insurance policy on his home, Bank of America took out its own policy, securing it from another subsidiary, Balboa. Bank of America stands to collect reimbursement for these fees whenever the property sells.“Bank of America is making out like a bandit,†said Mr. Crawford’s real estate agent, Brian Moore of Prudential California Realty. “They are doing everything in their power to push this down the road so they make more fees.†Read the full article by clicking on the Article Title Link.
Report Shows Bonuses Paid by Bailed-Out Banks – Eric Dash — July 30, 2009
Gist of Article: At least 4,793 bankers and traders were paid more than $1 million in bonuses last year even as profits at the biggest banks dwindled and they accepted tens of billions of dollars of taxpayer money, according to a report released on Thursday by the New York Attorney General’s Office. The New York Attorney General’s report came a day the House of Representatives is scheduled to vote on a compensation reform bill ahead of its August recess. Read the full article by clicking on the Article Title Link.