What the economists call the “macro” factors are bad.
Leading the way? Our friends, the banks!
Mortgage companies continue to lie about their books and records.
And won’t show them to the government without being forced.
Some of these issues have come up in the MERS
and robo-signing scandals.
Photo Credit They never have told the truth about their SIVs, special investment vehicles, that the regulators let them use to shelter mortgages and securities based on them.
That way, the regulators, not to mention the stockholders, never knew what the actual financial exposure of the banks was to the toxic mortgage market they created.
They continue to get bailed out by the politicians; they were savvy enough to buy both political parties.
And the government continues to try to prop up the housing market, preventing it from hitting a bottom so we could start a real recovery.
In the bankruptcy courts across the country, the U. S. Trustee has been trying to examine the books and records of the mortgage companies, in cases filed by consumers.
The U. S. Trustee is finding that many claims filed by the banks are way off in the amount they claim is owed by the consumer who filed the case.
And, that inappropriate charges are being added by mortgage servicers.
Shocked, I am shocked, to find that gambling is going on in this place.
No way these mistakes are only happening in bankruptcy court; the same mistakes are pushing people into foreclosure who are not really in default, or telling homeowners the wrong amount needed to catch up on their payments.
Of course, the wrong number is never lower than the correct amount.
Did the mortgage companies willingly provide this information, to the U. S. Trustee, a branch of the Department of Justice?
Clifford White, executive director of the U. S. Trustee office, as quoted in the N. Y. Times article:
“We have faced consistent opposition by all of the major servicers,” Mr. White said. “We are currently facing 200 motions to quash our discovery requests. We also are facing upwards of 20 appeals either in district courts or in circuit courts.”