Bank Abuses

Mortgage Fraud

March 24, 2014

Statement  of Argument: Abuses by the banking industry are not a priority of the U.S. government and abuses continue even after judgements have been awarded. As Wells Fargo is Accused of Fabricating Foreclosure Papers, Will Banks Keep Escaping Prosecution?


Argument:

The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. This comes as a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans.

Basically, to put—as I understand Mr. Schneiderman’s (New York Attorney General) point, Wells Fargo was signing off on the national mortgage settlement agreement out of one side of its mouth. Out of Wells Fargo morgage fraudthe other side, they were republishing their manual to say, "Hey, we’re going to continue business as usual. All right? Throw some money at it. It’s done. Quiet down the homeowners. We’ll just continue business as usual." And that’s what we’re seeing. That’s exactly what we’re seeing.

We’ll just continue business as usual

Fake Documentation:

". . . You also, one of your cases, came across a document which was purportedly from an official of Washington Mutual Bank in 2010, but Washington Mutual didn’t exist in 2010, because it had collapsed back in 2008."

". . . A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. In one instance, Attorney General Eric Holder claimed to have filed lawsuits on behalf of homeowner victims for losses totaling more than $1 billion, but the actual amount was 91 percent less, around $95 million."