Support: National Consumer Financial Protection
- by: Kokopelli Community Workshop Corp.
- recipient: Congress
Millions of American consumers are truly innocent victims who have lost their homes due to predatory sub-prime loans with multiple lending law violations.
The American homeowner in foreclosure may be a confused victim of illegal predatory lending tactics in too many cases later becomes a victim of fraud on the part of the crooked Loan Servicing Agency who siphons off the last the family's assets by starting a foreclosure proceeding and then offering the now desperate family a phony loan modification to save their home, in a negotiation that often requires a single substantial payment of the last of the family money and then foreclosing on the hapless victims home anyway.
The government recently raised the debt limits to 9 trillion plus. Most of the financial disasters of the world have occurred, throughout history, due to excessive use of debt, and excessive use of leverage (people borrowing more than they'll ever be able to pay back.) The thinking of our government, as influenced by the Greenspan Economy, was to control the business cycle by artificially manipulating the interest rate in order to stimulate spending and therefore the economy. The flawed rational was that giving people freer access to increased debt would stimulate spending and increase the health of our economy. Motivated by potential profit making our major American financial and lending institutions had no incentive to play up the risks of borrowing to the consumer.
In the name of stimulating the American Economy our government facilitated anybody who wanted to borrow, by lowering interest rates, and lowering lending standards. This in turn facilitated a growing crop of greedy banks and sub-prime lenders who were willing to bend the rules and entice a multitude of American loan consumers into assuming more debt than they could ever possibly repay to meet their financial needs.
The immediate result of this facilitation was that in 2008 2.3 million families faced foreclosure proceedings, the highest number since the Great Depression. Though the cost to individual families is hard to measure, the cost to our economy is staggering: using the Joint Economic Committee estimate of $78,000 per foreclosure, the cost to the US economy was at least $156 billion in 2008
In the past bankers had to bear the consequences of any bad credit granting decision, but with the rise of securitization - came the introduction of what you might call a banking moral hazard. Lenders were longer being incentivized to produce responsible loans, but instead were focused on increasing the quantity of loans. The lender received a fee upfront, and then sold off the loan off to somebody else.
Bulk loans buyers repackaged the mortgage loans, which were then sliced and diced into securities. This allowed the lenders to concentrate on selling more mortgage loans. This entire process allowed our Financial Institutions to progressively abandon their financial responsibilities to the loan consumer. The final abandonment of fiduciary responsibility to the loan consumer usually includes transferring of the mortgage loan relationship with the loan client from the bank to a company called a loan service provider .
http://www.myfoxla.com/dpp/news/investigative/Homeowners_Warned_about_Loan_Modifications_20090317
Dear Member of Congress,
We the petition signers want you take action to support the creation of :
The National Consumer Financial Protection Agency. The agency would set up some common-sense rules to protect consumers.
If Americans cannot implement sanctions and offer methods for consumers to take any action, Credit Suisse predicts that there will be between 8 and 9 million foreclosures in the next four years, at a potential cost to the economy of $702 billion. Addressing the foreclosure crisis must be at the heart of any economic recovery plan. The mortgage foreclosure crisis touches all aspects of our economic meltdown and as such requires a comprehensive solution.
The creation of : The National Consumer Financial Protection Agency.
The agency would be able to set up some common-sense rules to protect consumers.
Consumers usually have no choice as to what company services their home loan or how many times fiduciary responsibility for their loan might be transferred.
Select Portfolio Loan Service, Litton Loan Service, HomEq of Barclays, Fairbanks Capital, OneWest, American Home Mortgage Servicing Inc, are a few of the major mortgage service companies who have refused to sign on to President Obama's program to stop foreclosures.
The above named Loan Service Agencies are notorious for passing the responsibility for the consumer's questionable sub-prime loan, from servicing company to servicing company, and thereby stonewalling any action by the loan consumer to exercise their rights under RESPA. The servicing agency commonly stonewalls the consumer by preventing legal interaction between the consumer the true owner of the consumers mortgage, needed for the purpose of seeking their legal rights and remedies and protections under RESPA.
Millions of American consumers are truly innocent victims who have lost their homes due to illegal predatory sub-prime loans with multiple lending law violations.
The victim of illegal predatory lending tactics in too many cases later has become a victim of the Loan Servicing Agency who first prevents the loan consumer from obtaining any legal rights remedy against existing loan violations, when they refuse to provide the consumer/client with any information as to the identity true owner of their mortgage, often followed by an unfair foreclosure proceeding, finally the loan servicing agency offers the by then desperate family a phony loan modification to save their home from foreclosure, a negotiation which all too often seems to require a single substantial payment of the last of the family's available assets after which the loan service provider shamelessly forecloses on the hapless loan consumer's home anyway.
please support the creation of The National Consumer Protection Agency and put a stop all these shameful practices.
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