David Dayen on the ‘Fraudclosure’ Crisis

After the Bush administration presided over the worst financial collapse since the Great Depression, American households lost about $16.4 trillion of net worth. The value of real estate alone dropped by $6 trillion.

Instead of making the big banks eat these losses, our government decided to let the middle class pay for Wall Street’s mistakes – even if it meant circumventing the law. “Rocket dockets” (up to 1,000 cases per day) and “robo-signing” (the mass production of false affidavits) enabled the biggest robbery of all time. Some homeowners faced court-ordered foreclosure even though they never took out a mortgage!

David Dayen has laid it all out in a new book, Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud

Example of “robo-signing”

Sorry you lost your home: Americans deserve more than an apology for the foreclosure fraud epidemic (Emphasis added)

Political analysts still manage to wonder why people are angry in a time of economic recovery, without ever even hinting recognition of the scarring impact of the foreclosure disaster. More than 9.3 million American families gave up their home between 2006 and 2014, either in a foreclosure or a short sale or some other transaction. That translates to about 14 million people, all of whom have family and friends and colleagues who at least know of the pain caused by the foreclosure crisis. There have been more since then.

It didn’t have to turn out that way. All of the losses didn’t have to be placed upon homeowners. Somebody could have been held responsible. We could have enforced the simple rule that you can’t take a person’s home with false evidence. This bare minimum would have engendered some faith that the system works, that justice still burns somewhere in America.

“Somebody could have been held responsible.” Instead, the Obama administration looked the other way during the “fraudclosure” crisis. They did the same thing on U.S. war crimes, on CIA torture, and on widespread warrantless surveillance of Americans. Only the truth-tellers went to federal prison, never the criminals.

  1. #1 by Larry Bergan on August 9, 2016 - 7:04 pm

    They should put every Linda Green in the country in jail as a person of interest until they nail the bitch.

  2. #2 by Richard Warnick on August 10, 2016 - 8:45 am


  3. #3 by Larry Bergan on August 10, 2016 - 2:57 pm

    I’m pretty sure Bill Moyers reported on the Linda Green scam, when he still had his great PBS program. Moyers hasn’t been replaced yet, which is understandable in today’s media. Journalists need not apply.

    I wonder if anybody even tried to go after these, or this forger.

    • #4 by Richard Warnick on August 10, 2016 - 3:16 pm

      Except for putting some truth-tellers behind bars the Obama administration is “looking forward, not backward” and pressuring state attorneys general to do the same.

      If you apply the logic of “looking forward, not backward” universally, no crimes would ever be prosecuted.

      • #5 by Larry Bergan on August 10, 2016 - 3:43 pm

        Except for when you’re giving “retroactive immunity” to your corporate friends, of course. Then, looking backward is a necessity if you want to stay in with the in crowd.

  4. #6 by Richard Warnick on August 10, 2016 - 3:28 pm

    Other economic news: Remember back in February when President Obama took credit for raising wages?

    Well, the revised numbers have been released by the Bureau of Labor Statistics. Instead of going up by 4.2%, nonfarm real hourly compensation declined by 0.4%.

    Maybe Hillary is going to win this election as the status quo candidate by talking about OMG Trump. OTOH if voters are paying attention, they are going to want things to change. A lot.

  5. #7 by Larry Bergan on September 2, 2016 - 11:28 pm

    You’re not going to believe this Richard, but when Linda Green let all those people forge her name, she was making 12 bucks and hour.

    • #8 by Richard Warnick on September 4, 2016 - 3:53 pm

      I never meant to imply that her “Vice President” title was other than honorary. Other instances of robo-signing all featured employees signing stacks of documents while posing as responsible executives. Judges went along with the charade and threw Americans out of their homes.

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