ocuupy wall street

Be it resolved: Robo-signing foreclosures is the real scandal

I can see specific, concrete broken laws in the way foreclosures have been handled since 2007. Property lawyers, experts in their field, running foreclosure mills? Throw those fuckers in jail.

I’ll credit the OWS folks for getting a step closer to the heart of the matter. And it raises again one of the central mysteries of our reaction to the sub-prime collapse. How coem so few homes were saved from foreclosure? Immense amounts of talk and time in Washington went into rate-adjustment plans, and so on, and all the while the machine ground on foreclosing homes. 

You hear it all the time - the bank wouldn’t talk to me. It didn’t know there were Federal programs, and I couldn’t get anyone to tell me about them. They wouldn’t adjust my rate even though I could pay for the house. They adjusted my rate, and then they foreclosed anway. And so on.

If there is any one thing that supports the thesis that the Obama administration was beholden to and staffed by the same banks that caused the disaster, this one thing is it.

I recall a libertarian friend of mine, back in 2009, furiously denouncing the people who would receive loan adjustments, because he had “followed the rules” (and also not undergone an unexpected financial catastrophe or illness, but hey). I told him “I doubt you’d want to trade places.” I had no idea how right I was.