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Remote Processing of Assignments and Other Evidence of Continuing Fraud in the Banking Sector

30 Nov

In a piece posted up at Naked Capitalism, Michael Olenick asks the question:

Are Remotely Processed Assignments Another Smoking Gun?

It’s an important question, and one which has not, until now, been raised anywhere else we have seen.

In his final few paragraphs Mr. Olenick lays it out fairly plainly,, however, we would go one step further to say that banks have clearly violated the trust of all parties, and have done so to a purpose.  We would also suggest that Michael Hudson’s suggestion, as noted in his recent piece on reforming the US financial and tax system addresses a nice clean solution:

...by applying what’s been New York State law since before the Revolution, going back to when New York was still a colony. I’m referring to the law of fraudulent conveyance. This law says that if a creditor lends to a borrower without having any idea how the debtor can pay in the normal course of business, without losing property, the loan is deemed to be fraudulent and declared null and void.

Now, on to the final few paragraphs of Mr. Olenicks piece.  We do suggest you read the entire article over at Naked Cap.

 

…Robosigning is not a victimless crime. The reason we have careful, document-intensive processes for handling real property is that it is the foundation of a nation’s wealth. A home is most families’ biggest asset. The practice of having independent parties verify the validity of signatures dates back to the 1677 Statute of Frauds. It was implemented because the lax evidentiary standards of the early 1600s allowed rich people to hire experts who would swear falsely in court about the ownership of property. The result was court-sanctioned theft and rising disorder.

There are plenty of legal, ethical, economic, and financial problems with document abuses and fraud. But more than any single problem, robos rob trust. Banks are using faceless robos in rural California, Louisiana, and Nebraska to rob the people of Palm Beach County of the protection of the law and in many cases, their homes. This irrevocably destroys trust, not only with the banks that employ the robos but with everybody else too. Since banks are realistically a commodity but-for trust, you’d think that banks, especially brand-aware consumer banks, would have moved long ago to stem these practices.

Indeed, many banks now claim that they have changed or are in the process of changing. As the new documents roll in to public records we’ll find out. But while banks may have “moved on” plenty of families who lost their homes to these documents have moved out. Parents shelter their children with family, friends, in motels that rent rooms by the night, or in cars. These banks — who have received trillions of dollars of bailout money — can’t simply decry, again, “whoops – our bad,” then expect yet another Get Out of Jail Free card.

The federal government has obviously decided not to bother investigating the extent of the fraud, so I’ll continue my studies, hoping from help from the public and publishing results as the datasets expand. But hopefully, one day, law enforcement and regulators — government employees funded by taxpayer who are trained and tasked to do this type of work — will pick up the burden on their own.

We would suggest this hope that someday government employees would take up their work and regulate the banking overlords assumes that the government will operate free of its current oligarchic controllers; this is not something we see happening in the near future; and have serious doubts about for the longer outlook.

Surely the current actions of Congress, specifically in the last 24 hours, make that seem even less likely.

 

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