BANKS STEP UP LOBBYING IN ALL STATE CAPITALS

Jan 28, 2011

ONE ON ONE WITH NEIL GARFIELD

COMBO ANALYSIS TITLE AND SECURITIZATION

EDITOR’S COMMENT: Not surprisingly, the Banks are trying to undo the damage by getting legislation passed that pushes the reset button and gives them a safe harbor to finish their foreclosure scam. And the lobbyists are in it for the long haul. Downtown state capitals, normally a bit sleepy when it comes to real estate action, are virtually sold out of condominiums and other housing near the capital buildings. Tallahassee is a prime example. Prices have gotten hit hard there lately and the market is glutted — except in high rise buildings near the state capital. The buyers are corporations who are lobbying for a variety of special interests, mostly banks.

Don’t take your eye for Congress. But the likelihood that Congress can do anything about property law from State to State is extremely low. The place for the action to happen is on the state legislative level where legislators are being made offers that are sending cash registers ringing loud enough to be heard throughout neighboring counties. Best you write to your State Senator and State Representative and let them know you are watching. Better yet, start looking closely at bills coming up which mention MERS, nominees, assignments, indorsements, delivery or notes and mortgages.

With the judicial forum essentially turning into a nightmare for the banks, their last line of defense is to make legal what was illegal — a task that can only be done by the State legislatures. Even if illegal or unconstitutional, the new bogus laws will buy the banks enough time to get the scam completed.

Late To The Party As Always? More Foreclosure Legislation Filed In Massachusetts

Today, January 28, 2011, 2 hours ago | Rich Vetstein

You knew this was coming. The politicians smell a big political opportunity with the foreclosure mess in Massachusetts, and are filing legislation left and right.

The latest is legislation filed by State Senator Karen Spilka and Attorney General Martha Coakley mandating loan modifications in certain circumstances. Specifically, the loan modification legislation requires creditors to take “commercially reasonable efforts” to avoid foreclosure upon certain sub-prime loans. The legislation also provides a safe harbor for creditors to comply with this requirement of commercial reasonableness.

The legislation also addresses problems with foreclosures highlighted in the recent decision by the Massachusetts SJC, U.S. Bank v. Ibanez by prohibiting foreclosures where creditors lack the documents supporting their purported right to foreclose, and prohibits passing on certain fees and costs to homeowners. Specifically, this legislation:

Codifies the recent SJC decision in Ibanez by requiring a creditor commencing foreclosure to show it is the current legal holder of record of the mortgage. The bill also forbids misrepresentations to courts concerning holder status;
Prohibits passing on to third parties the costs of remedying prior improper foreclosures or absence of recorded assignments;
Prohibits “junk fees” (for goods or services not performed) tacked on during foreclosure and prohibits bribes, referral and similar fees for foreclosure business; and
Requires recording of assignment establishing the creditor as present holder of the mortgage before it can foreclose on the property.

A violation of this legislation would constitute a violation of the Massachusetts Consumer Protection Act, Chapter 93A which carries triple damages and attorneys fees.

For more information, here is the announcement from Sen. Spilka’s office.

Posted in bubble, Corruption, Eviction, securities fraud |