Time to Write to Obama, Senators and Congressman

Many Thanks to Ron Ryan, Esq. representing the Tucson Bankruptcy Bar for the submission below:

Editor’s Note: Obama wasn’t kidding when he he said the thing that humbled or frustrated him the most was how slow Washington is to “get on board.” Dick Durbin had the class and guts to say it outright. The banks own the city — and we the taxpayers gave them the money. WHERE IS YOUR OUTRAGE AND WHY ARE YOU NOT EXPRESSING IT?

The Troubled Asset Relief Program money went to bank holding companies that were (a) not holding any troubled assets and (b) not lenders.  While we can and should cut Obama some slack because this was Bush-Paulson policy, to quote his own words back to him “We Can’t Wait!” The vote on amending the bankruptcy showed just how much of a strangleghold the banks have on Washington. The oligopoly that controls our government is driving us into another ditch, this time worse than the one we just visited at the end of the Bush term.

The code was amended by Republican majority with the aid of Democrats to basically say that you can reduce the principal on,loans on 2nd, third, fourth, fifth and sixth residences but not on your first and only residence.  So the wealthy, the speculators and other people who essentially DON’T need the relief have it while 20 million homeowners are eating crow. This crisis was spawned and promoted by appraisal fraud at both ends of the spectrum — lying to the borrower about the value of the house and lying to the investor about the value of his investment. We are helping the liars.The recipients of taxpayer lenders are neither lenders nor holders of toxic assets.

Federal Policy and Federal Money should be first aimed at stabilizing the free fall of people who have lost all their wealth in the middle and lower “classes” and second at making some sort of restitution to the investors who lost all their money. (MBS securities are said to be trading thinly at 3 cents on the dollar). Current policy and programs continue the MYTH that the intermediaries who are foreclosing, collecting, or modifying loans have any legal right to do so. They don’t. And if the reality doesn’t sink in, then  the eventual remedy is going to be that 20 million homeowners are going to be sitting in homes that have no mortgage or note and the investors are left eating crow. It is inevitable that the judicial outcome is the elimination of virtually all securitized mortgages and the reversal of virtually all foreclosures of securitized debt.

From Ron Ryan and Tucson BKR Bar:

Log on to the National Association of Consumer Bankruptcy Lawyer to read more and with one click send a letter to your Senators and the President. NACBA has been a major lobbyist in favor of this amendment for over two years. When you write Obama, you might want to add a little bit about how he needs to use his muscle and insist on the Senators passing measures he is in favor of. It doesn’t seem that he has done much arm twisting, and it will be necessary if he wants to get anything done. http://www.nacba.com/. Also, here is the mailing address and fax number for the President:

President Barack Obama
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
via fax 202-456-2461

Tags: bankruptcy, borrower, Chapter 13, disclosure, foreclosure defense, foreclosure offense, fraud, Lender Liability, mortgage meltdown, predatory lending, rescission, securitization, trustee
Posted in Corruption, Eviction, Modification, securities fraud, Servicer |