Only 84% of foreclosures around the US are illegal...

Foreclosure abuse rampant across U.S., experts say

The audit of almost 400 foreclosures in San Francisco found that 84 percent of them appeared to be illegal, according to the study released by the California city on Wednesday.

So now you'll say... but it's only in San Francisco... oh REALLY??

"The audit in San Francisco is the most detailed and comprehensive that has been done - but it's likely those numbers are comparable nationally," Diane Thompson, an attorney at the National Consumer Law Center, told Reuters.

Of course.

Don't believe the experts?? Well then, what about people who were in the business at the top of it all??

Remember Mr. Richard Bowen, former senior vice-president and business chief underwriter with CitiMortgage Inc (part of Citibank) before the Financial Crisis Inquiry Commission Hearing on Subprime Lending and Securitization and Government Sponsored Enterprises back in 2010...

Richard Bowen

These mortgages were sold to Fannie Mae, Freddie Mac and other investors. Although we did not underwrite these mortgages, Citi did rep and warrant to the investors that the mortgages were underwritten to Citi credit guidelines.

In mid-2006 I discovered that over 60% of these mortgages purchased and sold were defective. Because Citi had given reps and warrants to the investors that the mortgages were not defective, the investors could force Citi to repurchase many billions of dollars of these defective assets. This situation represented a large potential risk to the shareholders of Citigroup.

I started issuing warnings in June of 2006 and attempted to get management to address these critical risk issues. These warnings continued through 2007 and went to all levels of the Consumer Lending Group.

We continued to purchase and sell to investors even larger volumes of mortgages through 2007. And defective mortgages increased during 2007 to over 80% of production.

So the top guy at one of the biggest bank in America in charge of mortgages ADMITTED to congress that the bank was committing fraud at a 60% rate in mid-2006 and by 2007, it was at a rate of 80%!

But eh, don't worry, Obama and the states attorneys general made a deal with the banks to make it all legal... so no problem.

reply to post by Vitchilo


I am jack's complete lack of surprise. It makes me sick that these guys go before congress, admit they were breaking the law, have a light lunch afterward and then go back to breaking more laws with no repercussions.

80% is no small number and I am sure the hard cash they earned from this little exploit is no small number either.

#ing bankers...

Yea... but it's not rally that bad... I mean they're all going to get $2,000, right?