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The MODIFICATION joke programs
~The “joke” modification program and more
under the secretary of treasury – Geithner
under the OCC – John Dugan
under the FDIC
on and on
The bank bailouts went well, especially for Citigroup and their backers – billions and billions, no strings attached really. But, let’s take a look at homeowners modification offers. Remember, who got the homeowners in this mess? Who is responsible for the corruption, lies, deceptions and tricks. The servicer, Ocwen Loan Servicing, LLC comes to mind but back to the simple plan of modification under Tim Geithner’s and his gang of merry men, regulators. The program was an albatross. The homeowners had already qualified for these loans. They had already bought the homes. No money was given to these homeowners – the work was to be with the loans they already had. So, what does these government know it alls do? The ones that couldn’t oversee the banks and do their jobs as regulators to protect the taxpayers in the first place, were they on vacations when this was all coming apart for these homeowners? They sure didn’t have any trouble pushing for a big Citigroup bailout. John Dugan- no problem, administration – no problem- but when it came time for the homeowners that Congress had intentions of helping – the old bait and switch game came into play. Geithner and his pal, Rubin that had put him where he was, wanted the trillions for special interest groups. So, the so-called modification programs became a joke. Before these homeowners group qualify for any help they would have to fill out documents, reports, information regarding their income, what were their expenses, their monthly bills, credit card reports, what else did they owe – if they were good little boys and girls and did their homework – they would get a “trial modification”. If they fail to do all this starting over craft, they would be foreclosed on – even if they were making their payments. Then, we have the sick Hamp program. As you will recall, Geithner – said, that didn’t work and he blamed the “servicers”. The servicers were given 12 billion to start with- to make it work. The main “regulator” for the servicers was none other than John Dugan from the OCC – but, guess what – Geithner blames the servicers – Dugan is responsible for the servicers- for their screw ups but none of the servicers were held responsible or punished for their actions – why?
This went on for two years – the Hamp program wasn’t to help this housing mess but to shut the press up when they wanted to know what the government was going to help homeowners besides blaming them. So, it looks like the big banks and the AIG bailout bonuses were the priorities of Geithner and Larry Summers when it came to him and modification of anything. The “stress test” was another joke on taxpayers and homeowners. The Financial Times quoted Warren Buffett as saying this about stress test for banks – they were “wrong and unnecessary”. Most of the banks were okay – nothing that couldn’t be handled with good management but not Citigroup. They were in trouble because of greed and poor management and knowing they would get big Government bailouts. The fix was in for Citi – Citigroup’s big problems had muddied the waters of the whole banking industry to bat. Finally, John Walsh replaced John Dugan at OCC and Walsh became Tim Geithner’s mouthpiece. The government groups, the Secretary of Treasury, the OCC, FDIC, OTC – all heads, advisers, financial specialists, economists, and legal advisors and they couldn’t figure out how to keep from pouring money down a rat hole in selling out the homeowners in the country. So much for the legal financial minds to Roundtable. Let’s take for examples, someone like Hank Paulson, who said that if Citi failed it would be our fault – his words – “if they go down, it’s our fault”. He must have been speaking of his special interest group or else what would someone in his position make such an asinine remark? All these alleged legal minds and none could see any way to help the homeowners or the country that the greedy CEOs, executives, regulators put the country in homeowners in this crisis. Was the crisis created as a bailout for Citigroup by these masterminds to feather their nest but none could come up with a plan to undo the horrendous evil acts done to homeowners. Maybe the problem facing the country should have been given to a six-year-old. Remember the story about the semi truck that got stuck going to a tunnel? How to get it out? Professionals, engineers all standing by trying to figure out how to get this problem solved – traffic backed up – mass confusion when a little girl came up with the idea of letting the air out of the tires. It works. Maybe someone should have thought about letting the hot air out of all those through the homeowners under the bus to guard their special interests, Citigroup. Looks like Robert Rubin – a very wealthy individual had his ducks in a row for city. Hank Paulson, secretary-treasurer with a tarp was passed – Timothy Geithner, president of the Federal Reserve – John Dugan, head of OCC – only a few of the players but nonetheless – big players in the scheme to save Citigroup at any cost. The borrowers and homeowners were screwed.
The Treasury, you could say, backstabbed the borrowers, homeowners, investors while the FDIC looked on it offered busy work that did not stand firm. The FDIC could’ve went more public. Put the facts before the people instead of offering to appease the treasury and administration. Foreclosures were running rampant while the treasury and the FDIC were running circles around themselves. Paulson was getting ready to leave the secretary of treasury – so guess where his mind was? The FDIC caved in too often to the big boys game saving Citi – none seemed to know or care what securitization meant – as far as the public, the homeowners – pooling and servicing was ignored – they played ignorant or they did not understand the meaning of the pooling and servicing agreement. Pooling and servicing was very well detailed and laid out and very strict by New York trust law. But even today the pooling and servicing agreement seems foreign to most judges or even lawyers. A few judges do understand the meaning of the PSA but have not enforced this very strict global, part of securitization – why? Securitization of people’s loans was an open door for fraud and criminal misconduct, but where were the government officials that were supposed to be guarding the door – digging a tunnel for themselves? Too many compromises were being made against the homeowners to bailout the big banks who created this disastrous crisis. Who lied to the people, put them in overpriced homes according to their income? Even when they could afford the payments that was agreed upon – who started adding on illegal fees every month to up their payments, maintenance fees for homeowners added onto their payments for nonperformance of anything? No explanations of any maintenance performed because there wasn’t. Drive-by fees added on the payments every month? Being charged for insurance when the homeowners had insurance and provided proof whenever asked for – interest rates continually escalating? All of the extra charges added on the homeowners monthly payments soon doubled their payments or tripled their payments – well the answer was- to refinance.
As Tim Geithner has said, in his opinion, these people were consenting adults. Look at the true story of homeowners. Take for example – Ocwen Loan Servicing LLC-homeowners have shown documented evidence that Ocwen has added on illegal fees. Remember, the over 2 billion settlement Ocwen had made – just because they didn’t want to litigate the charges against them – why? Each charge launched against them, has been proven by homeowners across the nation. The settlement they agreed upon is mere change to them. A complete joke. Let’s take for example – maintenance fees. Ocwen adds on maintenance fees to a homeowner’s statement each month – Who does the maintenance – NOT Ocwen. The homeowner does each and everything. This is fraud and illegal by Ocwen but Ocwen is dealt with gently and as you know, they were able to take the settlement deal instead of litigating the isssues which they knew would sink their ship. Ocwen knows exactly the fraudulent illegal documents they have launched on homeowners and yet, there are people out there- saying these homeowners were consenting adults. They didn’t consent to the crooked, manipulative conduct of these banks and servicers. Even before the illegal add on fees, they did not disclose to the homeowners that their mortgage would be securitized. They put on homeowners- the notion – they would be receiving a conventional loan – Not the case. Homeowners across the board have shown evidence of these illegal add on fees by these banks and servicers which escalated their payments- Why do you think these settlements were brought about – because homeowners started to make public what these banks were doing to them – The litany of charges against these banks, take for example-Ocwen, were true. That’s why Ocwen started screaming – they wanted to settle. They knew, without doubt, if they had to litigate – there would be thousands of documents showing the atrocities they had carried out against homeowners.
There are Judges across the country who get it and stand up for the American taxpayers but then, you have the other Judges- who are what? Too dumb, allegedly too paid off – the truth is rarely popular and is dangerous – Look at what happened to the insiders when the banks and their lawyers allegedly wanted them to shut up? Ka-Splat!
The contributor is not an attorney and this article is not intended to give advice.
