Banks have misled homeowners

Nancy Pelosi is currently playing the role of Captain Renault (right).

The following story really does bring back memories of this famous scene in Casablanca:

Rick: How can you close me up? On what grounds?
Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money]
Croupier: Your winnings, sir.
Captain Renault: [sotto voce] Oh, thank you very much.
Captain Renault: Everybody out at once!

Inquiring minds don’t know whether to laugh or cry. In yet another “Rick’s Cafe American” moment America’s Eva Peron, aka Nancy Pelosi, is upset that banks have misled homeowners:

In a letter to Attorney General Eric Holder, Federal Reserve Board Chairman Ben Bernanke and U.S. Comptroller John Dugan, the lawmakers state: “it appears that banks have repeatedly misled and obstructed homeowners from receiving the help Congress and the Administration have sought to provide … It is time that banks are held accountable for their practices that have left too many homeowners without real help.”

From the letter:

“Over the last few years, thousands of our constituents have reported that many financial institutions, despite good faith efforts on the part of most homeowners to work out reasonable loan modifications or simply seek forbearance of foreclosure, routinely fail to respond in a timely manner, misplace requested documents, and send mixed signals about the requirements that need to be met to avoid foreclosures. We are particularly perplexed by this apparent pattern in light of the many incentives Congress and the Obama Administration have offered to servicers and lenders to avoid foreclosures where financially viable, including subsidies and loan guarantees from taxpayers. Avoidable foreclosures end up being unnecessarily costly for homeowners, lenders and servicers, and our housing market, whose health is essential to our economic recovery.”

Truly amazing that Congressman Barney Frank nor US Senator Chris Dodd are not mentioned anywhere. Maybe Rep. Frank was too busy fixing parking tickets for his boyfriend’s ‘customers’.


One Response


    On August 20, 2010, representative Barney Frank (D-MA) sent a letter to Barack Obama, urging the President to appoint a permanent head of the Federal Housing Finance Agency (FHFA) who would aggressively pursue legal claims against the private companies that caused Fannie Mae and Freddie Mac (and thus, taxpayers) to suffer losses, namely, the lenders who originated subprime and Alt-A mortgages during the boom years (roughly 2005 to early 2008).

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