Delhi I may be walking at dawn with the elderly Indians in the M-Block welfare association park as they do their yoga, clap, laugh, and ommm or I can watch the bamboo frame for a puja tent going up for a coming celebration, but when I look at my email, it’s all still about foreclosures as the banks once again prevent any recovery. The foreclosure crisis has taken a bad turn though, and despite the spin that this problem is all about some paperwork and filing problems, I think most people would call this fraud.
Thus far GMAC, Chase, and Bank of America have had to suspend foreclosures in the 23 states that require judicial review of foreclosures because a judge in one of them finally said he wasn’t satisfied with the signatures on the paperwork. It has now become clear that there was “robo-signing” of huge numbers of documents and complete fabrication of many files and records connected to foreclosures. Banks have argued over who had the correct paperwork and the right to foreclose. The mystery behind the true ownership of properties between the banks and the investors in the securitization pools has finally shown all of these Wall Street emperors to be totally without clothes. The irresponsible fabrications of the banks have not only collapsed the foreclosure and modification side of the market, but reports today indicate that the banks have also had to alert Fannie Mae and Freddie Mac