Most of you are probably astonished at the amount of mortgage fraud related settlements that have been in the news recently. Ocwen is getting banned from the state of California. Standard and Poor’s finally had charges leveled against them by the Securities and Exchange Commission for fraudulent ratings misconduct and their role in the mortgage crisis. The Consumer Financial Protection Bureau is going after Wells Fargo and JP Morgan for kickback payments to mortgage brokers. The list continues, but this is nothing new for these mega companies that completely broke the law and harmed our economy.
The one thing that is missing every time a tree falls in the Wall Street forest is disbursement accountability. So, someone is going to pay for misdeeds. We know no one is going to prison, but the next best thing a mega criminal corporation can do is to cough up money to make the problem go away. Really? Does that money go to homeowners to get them back above water? Does that money go to investors that were lied to about the viability of their investments? Surely it goes to the families that lost their homes to fraudulent foreclosure practices. If you believe that then go ahead and pop your head back in the sand now.
Some of us, who have spent the last 5 years jumping up and down on our moral high ground fighting mega banks and mortgage servicers have given up. I totally understand this. The pendulum is swinging back now and it’s time for all the mistakes to be repeated with one new element. Better covert application of secondary mortgage market products. Yes, I know. The truth is hard to swallow, but even the government has accepted this fact and jumped on the securitization money train in an epic way.
At what point do we scan the horizon and see our real estate disappearing? The amount of bank owned, foreign owned and investor owned properties created by this last crisis is staggering. Keeping the family homestead actually in the family is a thing of the past. Can you imaging what your Grandparents would have thought about a reverse mortgage?
As 2015 charges on I vow to continue to expose mortgage fraud, that’s the easy part. I also promise to take on the hard part, which is to make sure the homeowners that were wronged get the justice they are due.