What happens when 50-million people learn they defrauded by the banks creating illegal loans - defrauded by the courts by allowing the corrupt banks to illegally foreclose a loan no-longer secured by the property - betrayed by their courts & gov who KNEW this was happening and simply looked the other-way while these families are tossed to the street...
As it stands - it is literally impossible for the courts to know if those families were sold legal loans. These families do not yet realize they were lied to & misrepresented by the banks.
Nightmare On Wall-Street - L. Randall Wray wrote
"Returning to the question -- why would the banks do this? To understand why, you've got to think like a criminal -- that is, like what my colleague Bill Black calls a "control fraud". That leads to a rephrasing of the question: Why would those who control a bank engage in risky and fraudulent activity that is sure to destroy the bank?
The answer, then, is obvious: Because those running the control fraud have no interest in the bank as a going concern -- they are simply looting the institution, running it to maximize their own individual take. They get their bonuses and then jump a sinking ship -- and with luck they move directly into Treasury to arrange bail-outs to let the other rats on their Titanic suck whatever blood remains after the transfusions."
In a major ruling Friday, a coalition of nonprofit defense lawyers and consumer protection advocates in Maryland successfully got over 10,000 foreclosure cases managed by GMAC Mortgage tossed out, because affidavits in the cases were signed by Jeffrey Stephan, the infamous GMAC “robo-signer” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.
The University of Maryland Consumer Protection Clinic and Civil Justice, Inc., a nonprofit, filed the class action lawsuit, arguing that any case using Jeffrey Stephan as a signer was illegitimate and must be dismissed. In court Friday, GMAC agreed to dismiss every case in Maryland relying on a Stephan affidavit. They can refile foreclosure actions on the close to 10,000 homes, but only at their own expense, and subject to new Maryland regulations which require mandatory mediation between borrower and lender before moving to foreclosure. Civil Justice and the Consumer Protection Clinic also want any cases with affidavits from Xee Moua of Wells Fargo, who has also admitted to robo-signing, thrown out, but that case has not yet been settled.
This was not the plan of GMAC and other banks caught using robo-signers last year. They hoped to undergo a pause in proceedings, run a quick “double-check” and then issue substitute documents in the same cases. That would have been a much more rapid solution for the banks and would have resulted in many more foreclosures. Now GMAC has to go back and basically file the entire case all over again, meaning they have to give notice of foreclosure to the borrower, engage the borrower in modification options, and basically run through the whole process from the beginning. They cannot use the shortcut solution, thanks to the class action suit filed. GMAC’s dismissal of every foreclosure in Maryland shows their doubts they would have won the class action.
The Consumer Protection Clinic at the U. of Maryland is a class taught by Peter Holland. Rather than just read and lecture about foreclosure fraud and consumer protection law, Holland has the class join motions, prepare cross-examinations and legitimately get involved in the cases. It reminds me of the class of Alan Dershowitz depicted in the film Reversal of Fortune, or the Medill Innocence Project investigating wrongful convictions at Northwestern. Given the national scope of foreclosure fraud, you can imagine classes like this springing up all over the country.
As I said, this doesn’t mean that GMAC cannot refile foreclosures in these cases. But they have to spend a lot of time and money to go back to the beginning and redo every case, and must adhere to Maryland law of allowing mediation. Maryland is a judicial foreclosure state which has produced some of the better rulings during this crisis. But we’re starting to see challenges even in non-judicial foreclosure states, like Massachusetts, where the Ibanez case has thrown every foreclosure in the state into turmoil. The rates of moving properties through foreclosure have dropped dramatically, in all 50 states, by an average of 50%. It just seems inevitable that lawyers in other states will follow the Maryland action and attempt to get everything which used a robo-signer thrown out.
And if the Ibanez case, which questions the right for banks to foreclose at all, can be broadly applied, those rates will drop even further. And Georgetown Law Professor Adam Levitin thinks may be the case.
Darth Vader's other son from another mother [via GeekTyrant]-- A simple post on the official Tumblr for Rian Johnson's time travel movie 'Looper'
epic fail photos - Probably Bad News: Feline Jury Duty.
[Updated at 4:05 p.m.] A suspect in an apparently accidental shooting at Gardena High School in California has been caught and handcuffed by police, according to footage aired by CNN affiliate KTLA shortly before noon PT.