The World’s Worst Ever Sellout – Is Your State In?

Over 40 states have already signed on to the sellout deal the corrupt politicians negotiated, so they could run for office beating their chests bragging about their tremendous accomplishment, with their mortgage company liege lords, who should have already started their prison terms, to get them off the hook for the greatest financial crimes in our history.

Just in case you wonder where I stand.

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The Monday, February 6 deadline passed with some states still on the fence, including the big one, California.

There are holdouts to the sellout:  New York Attorney General Eric Schneiderman chief among those opposing the foreclosure settlement.

Though his resolve could be weakening:

“Schneiderman said Jan. 27 that the liability releases in the draft settlement had become narrow enough so that a full investigation by a new mortgage crisis unit that he will help lead could move forward.” (from the Hufifngton Post article linked to above)

Schneiderman was appointed to the Residential Mortgage-Backed Securities Working Group by the White House, which continued the pattern of our prior President in appointing the mortgage crooks (one of them pictured below)

Image by: Dreamstime

to government office, instead of prosecuting them.

Some of us think the commission is toothless, an election year ploy to make it look like something will happen; a commission with more mortgage industry representatives than consumer advocates.

I and others have written about the real solution to the foreclosure crisis, judicial mortgage cramdown in Chapter 13 cases, allowing the courts to cram-down the amount of the mortgage to the value of the home, and to change the interest rate and length of the loan.

But the bad guys seem to have purchased both political parties, so that died was killed by the Senate.

That is how to deal with the mess on the ground.  It is equally essential to punish the wrongdoers, or we just set ourselves up again for another disaster down the road.