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Elizabeth Warren Tears Into Federal Regulators For Shielding Big Banks

Posted by on Apr. 12, 2013 at 12:58 AM
  • 72 Replies
1 mom liked this



Sen. Elizabeth Warren (D-MA) embarrassed government regulators during a Senate Banking Committee hearing on Thursday morning as she demanded to know why they won’t reveal how frequently big banks illegally foreclosed on homeowners. In January, regulators abandoned a case-by-case review of foreclosure fraud conducted by some of the nation’s largest banks in favor of a $9.3 billion settlement. Under the deal, most of the 4.4 million homeowners who were foreclosed on in 2009 or 2010 received less than $1,000 each.

Fair housing advocates and Democratic lawmakers panned the agreement, claiming that it short-circuited a more detailed review process (known as Independent Foreclosure Review) and let banks off the hook for illegally foreclosing on millions of homeowners. Regulators had initially claimed banks broke the law or made errors in 6.5 percent of all the loans reviewed, though the number has since been revised upward.

During the hearing, Warren pressed officials from the Office of the Comptroller of the Currency and The Federal Reserve for answers about how frequently banks broke the law, only to discover that regulators didn’t know the exact number before reaching their settlement and were now unwilling to publicize the error rate. “You’re saying that the [you] did not have an estimate in mind of how many banks had broken the law and how many home owners were the victims of illegal activities?” Warren asked in disbelief. She pressed for public disclosure, but was told that the information about banks’ illegal activities is proprietary and may not ever be released:

WARREN: So you have made a decision to protect the banks but not a decision tell the families who have been illegally foreclosed against?

RICHARD ASHTON (FEDERAL RESERVE): We haven’t made a decision about what information we would provide to individuals. [...]

WARREN: So I just want to make sure I get this straight. Families get pennies on the dollar in the settlement for having been the victims of illegal activities or mistakes in the banks’ activities. You now know individual cases where the banks violated the law and you’re not going to tell the homeowners or at least it’s not clear if you’re going to do that?


Last week, the Government Accountability Office issued a report of the reviews and concluded that regulators at the Fed and OCC gave banks “too much leeway” in how the reviews were conducted, implying that the shoddy review process led to a hastened settlement instead of a complete review process. “On Tuesday, regulators released new information suggesting that banks may have made errors in as many as 30 percent of all loans that qualified for a review,” the Huffington Post reported.

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If they enforced bank regulations like they do park rules, we wouldn't be in this mess

by on Apr. 12, 2013 at 12:58 AM
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Replies (1-10):
brookiecookie87
by Platinum Member on Apr. 12, 2013 at 1:02 AM

Wow. The way she rails against these guys.

It's crazy to know that these people have proof of illegal foreclosures and when she ask them if they are going to tell the people who were victims of these illegal foreclosures all they can do is say, "We have not made a decision on what we will tell them yet".


Healthystart30
by Silver Member on Apr. 12, 2013 at 2:08 AM
Aaaaaaaaaaaa!!!!!!!!! That's me screaming at my computer because I feel so helpless! Why are people so shady? Don't they have any compassion for other people? Aren't they supposed to be working for us?
mehamil1
by Platinum Member on Apr. 12, 2013 at 2:15 AM
3 moms liked this

I love her. This is amazing. 

mehamil1
by Platinum Member on Apr. 12, 2013 at 2:16 AM

99% of us don't have the funds to buy these people off. That's it in a nut shell. Our government is bought and paid for. 

Quoting Healthystart30:
Aaaaaaaaaaaa!!!!!!!!! That's me screaming at my computer because I feel so helpless! Why are people so shady? Don't they have any compassion for other people? Aren't they supposed to be working for us?
DestinyHLewis
by Destiny on Apr. 12, 2013 at 2:32 AM

What exactly denotes an illegal foreclosure? 

brookiecookie87
by Platinum Member on Apr. 12, 2013 at 2:37 AM



Quoting DestinyHLewis:

What exactly denotes an illegal foreclosure? 

It can be lots of things really. Banking error. Not having the proper paper work. Not following the proper procedure. Telling people they owe money when they don't. "Accidently" increasing the amount they owe.

Automated foreclosures. Those are the ones off the top of my head. There are probably a lot more.


Join us on the 99% Moms group!
The Ninety-Nine Percent Moms   

If they enforced bank regulations like they do park rules, we wouldn't be in this mess

DestinyHLewis
by Destiny on Apr. 12, 2013 at 2:41 AM
2 moms liked this


Gotcha. So they are not talking about the idiots who were approved for a ton more than they knowingly could afford to begin with, took the loan anyway, and then acted surprised when they couldn't pay and were foreclosed on? 

Quoting brookiecookie87:



Quoting DestinyHLewis:

What exactly denotes an illegal foreclosure? 

It can be lots of things really. Banking error. Not having the proper paper work. Not following the proper procedure. Telling people they owe money when they don't. "Accidently" increasing the amount they owe.

Automated foreclosures. Those are the ones off the top of my head. There are probably a lot more.




brookiecookie87
by Platinum Member on Apr. 12, 2013 at 2:45 AM
2 moms liked this

That sounds like predatory loaning. Which is a shameful tactic. I don't believe that is considered an illegal foreclosure though.

But unless conning people is legal, someone should be punished for doing it.


Quoting DestinyHLewis:


Gotcha. So they are not talking about the idiots who were approved for a ton more than they knowingly could afford to begin with, took the loan anyway, and then acted surprised when they couldn't pay and were foreclosed on? 

Quoting brookiecookie87:



Quoting DestinyHLewis:

What exactly denotes an illegal foreclosure? 

It can be lots of things really. Banking error. Not having the proper paper work. Not following the proper procedure. Telling people they owe money when they don't. "Accidently" increasing the amount they owe.

Automated foreclosures. Those are the ones off the top of my head. There are probably a lot more.






Join us on the 99% Moms group!
The Ninety-Nine Percent Moms   

If they enforced bank regulations like they do park rules, we wouldn't be in this mess

DestinyHLewis
by Destiny on Apr. 12, 2013 at 2:55 AM
2 moms liked this


I don't really believe in predatory loaning. My DH and I were "approved" back on 08 for a 650,000 loan on a house. We both laughed and knew we couldn't afford it. It was unreal to me the bank approved it and we are VA. We knew what we could afford, and so should anyone else buying a home, car, etc. just because someone said you can have it doesn't mean you can afford it. That goes back to personal responsibility. In my opinion, the people that claim predatory lending, are full to the brim with crap. You know what you can afford. Unfortunately like a lot of things in our society, people are convinced they "deserve" it and took the loans anyway. I don't think those people deserved any help. They made their own beds. Deal. 

I don't know much about what your post featured. I'll have to read up on it. 

Quoting brookiecookie87:

That sounds like predatory loaning. Which is a shameful tactic. I don't believe that is considered an illegal foreclosure though.

But unless conning people is legal, someone should be punished for doing it.


Quoting DestinyHLewis:


Gotcha. So they are not talking about the idiots who were approved for a ton more than they knowingly could afford to begin with, took the loan anyway, and then acted surprised when they couldn't pay and were foreclosed on? 

Quoting brookiecookie87:



Quoting DestinyHLewis:

What exactly denotes an illegal foreclosure? 

It can be lots of things really. Banking error. Not having the proper paper work. Not following the proper procedure. Telling people they owe money when they don't. "Accidently" increasing the amount they owe.

Automated foreclosures. Those are the ones off the top of my head. There are probably a lot more.








brookiecookie87
by Platinum Member on Apr. 12, 2013 at 3:00 AM
2 moms liked this

Do you know what a con job is? Do you believe it should be legal for someone to con someone else?

Because predatory loaning is the exact same thing as a con job. You build someones confidence by making them believe they are approved for a loan (Thinking they would get rejected if they couldn't), and then exploiting that naiveness to make a profit.

It fits a con to the T.

Is it a bad move? Of course. Getting conned is never a good move. Does that make it okay? Absolutely not. Especially from a bank. But we are getting off topic here. If you like I would gladly create a topic on this if you want me to.


Quoting DestinyHLewis:


I don't really believe in predatory loaning. My DH and I were "approved" back on 08 for a 650,000 loan on a house. We both laughed and knew we couldn't afford it. It was unreal to me the bank approved it and we are VA. We knew what we could afford, and so should anyone else buying a home, car, etc. just because someone said you can have it doesn't mean you can afford it. That goes back to personal responsibility. In my opinion, the people that claim predatory lending, are full to the brim with crap. You know what you can afford. Unfortunately like a lot of things in our society, people are convinced they "deserve" it and took the loans anyway. I don't think those people deserved any help. They made their own beds. Deal. 

I don't know much about what your post featured. I'll have to read up on it. 

Quoting brookiecookie87:

That sounds like predatory loaning. Which is a shameful tactic. I don't believe that is considered an illegal foreclosure though.

But unless conning people is legal, someone should be punished for doing it.


Quoting DestinyHLewis:


Gotcha. So they are not talking about the idiots who were approved for a ton more than they knowingly could afford to begin with, took the loan anyway, and then acted surprised when they couldn't pay and were foreclosed on? 

Quoting brookiecookie87:



Quoting DestinyHLewis:

What exactly denotes an illegal foreclosure? 

It can be lots of things really. Banking error. Not having the proper paper work. Not following the proper procedure. Telling people they owe money when they don't. "Accidently" increasing the amount they owe.

Automated foreclosures. Those are the ones off the top of my head. There are probably a lot more.










Join us on the 99% Moms group!
The Ninety-Nine Percent Moms   

If they enforced bank regulations like they do park rules, we wouldn't be in this mess

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