mortgage crisis and the law

mortgage crisis and the law

John	3/26/2008 7:15:09 AM
It seems to me that the lenders must have broken laws, more than just ethics, in loaning money to those that they knew could not pay the loan back. I hear story after story about the lenders even helping the victims falsify or simply falsifying their incomes or circumstances so they could get the mortgages at all. Knowing full well that they would most likely default. In the medical world this would at a minimum be called malpractice, which is legally actionable. So why don't we hear about foreclosed home owners singling out companies, or even the individuals who did this for law suits? I'd like to see those individuals go to jail. And juries all across America would no doubt agree. Corporations and individuals can't be protected when they break laws, or can they? It sure sounds like a bunch of lawyers could get together on class action lawsuits on this. (and I suppose they'd get richer and the homeowner would get $600 :-( ). If there wasn't proper oversight as it was happening, there should be oversight and accountability now. Accountability to the unfortunate homeowner. All I see is the bail out of the perpetrators of the criminal act in the first place. The lesson we learn over and over is that big business is immune to the law and immune to ethics and immune to accountability, and rewarded for illegal activities. And if they can escape prosecution for this, I think there should be web sites that post the facts, including company names, persons involved, and dates, etc. of people who did this to borrowers. As long as only the truth is posted, that surely would be legal. And some accountability could be had by potential borrowers scanning these web sites to find names and companies they might not want to use. Or has this been done? [Let me say that the only skin I have in this game is the dropping value of my stock portfolio. But that is enough! But if it did happen to me, I'd try every way possible to put as much of their skin in the game as I could!] John



sethb@panix.com (Seth)	3/28/2008 7:21:00 AM
In article <mrbku3t3urn8i84hm2nuk5kk5opahu8e68@4ax.com>, John <jhy001@earthlink.net> wrote: So why don't we hear about foreclosed home owners singling out companies, or even the individuals who did this for law suits? Probably because the loan contracts they signed would allow estoppel as a sufficient defense. I'd like to see those individuals go to jail. The ones who committed (or aided and abetted) fraud should. Not all did; there were plenty of sub-prime loans that just didn't ask about the borrower's income. Additionally, what are the damages to somebody who shouldn't have been able to buy a house and now doesn't have one? If there wasn't proper oversight as it was happening, there should be oversight and accountability now. Accountability to the unfortunate homeowner. You mean, the person who can't afford the house? All I see is the bail out of the perpetrators of the criminal act in the first place. Most of them are long gone from that industry. It's the investors (suckers) who bought the mortgages, and the companies that securitized them, who are in trouble. And if they can escape prosecution for this, I think there should be web sites that post the facts, including company names, persons involved, and dates, etc. of people who did this to borrowers. Feel free to start one. Web sites are quite inexpensive. [Let me say that the only skin I have in this game is the dropping value of my stock portfolio. I saw it coming a year ago (after being told about it a lot) and made money on puts. Seth

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