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Franken to Justice, Treasury: Investigate foreclosure irregularities

franken.JPG

Senator Al Franken at a Senate Judiciary Committee in June.

(Photo Credit: Melina Mara/The Washington Post)

Sen. Al Franken (D-Minn.) called on the departments of Justice and Treasury and other relevant U.S. agencies to investigate foreclosure actions by Ally Financial and to ensure that homeowners who were wronged receive "proper restitution and compensation."

Franken said the company's filing of false affidavits in support of foreclosures "may have resulted in numerous illegitimate foreclosures across the country." He said the probes should include looking into possible criminal misconduct by Ally and its employees.

In a letter sent Wednesday to Attorney General Eric Holder, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, among others, Franken also asked administration officials to explain what actions the federal government is taking in its oversight role.

Here's the letter.

By Washington Post staff  | September 29, 2010; 6:00 PM ET
Categories:  Housing, U.S. Treasury  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: J.P. Morgan Chase freezes 56,000 foreclosures
Next: Illinois becomes fourth state to suspend Ally Financial foreclosures

Comments

When will "they" become interested in the fraud that caused much of the problem?

Posted by: Anonymous | September 29, 2010 6:55 PM | Report abuse

Any investigations into foreclosure irregularities should go beyond foreclosures. Maybe the correct word is "backtrack." Why is the success rate of so-called foreclosure prevention programs/loan modifications so low? Why are there hundreds of thousands of homeowners complaining about lenders and servicers giving them the runaround, claiming they have not received required documentation when there's proof that they have (certified mail signatures, for example.) And now we read these reports about banks/lenders rushing to foreclosure. If we connect the dots, would it be logical to conclude that the lenders/servicers would rather foreclose homes than modify loans? Apparently they make more money by foreclosing. Although they pretend to participate in the government's loan modification programs, they are aggressively pursuing foreclosure avenues. Why is the Obama Administration even surprised that its loan modification programs have failed miserably. Is there anyone monitoring how the loan modification and foreclosure prevention programs are being implemented? Are they really making a "good-faith" effort to modify loans? The revelations about GMAC's foreclosure irregularities are even more appalling, considering that it recently received an additional $17 billion in bailout money -- taxpayers' money, perhaps some coming from the same people they have screwed and continue to try to screw! (Or is this all about politics - because banks are the biggest election campaign donors? Is it something more sinister and insiduous?) An investigation into the implementation of loan modification programs and the foreclosure irregularities is long overdue! And homeowners who have been affected should speak up!

Posted by: Anonymous | September 29, 2010 7:20 PM | Report abuse

oh, come on. This is going to hold a fraction of the water of the cases of those who claim that the police engage in racial-profiling.

a) is your mortgage up to date or are you months behind on it. Yes or no. If yes, and a bank tries to take your house back, all you have to do is show up at the foreclosure hearing with your payment records. End of story.

assuming that a) is not the problem, you're dealing with a bureaucratic problem induced by the millions of foreclosures that the banking industry has to deal with. I doubt that the federal government really needs to get involved with this, now you're talking about court hearings on top of court hearings. Let the states sort it out.

Posted by: tokenwhitemale | September 29, 2010 7:27 PM | Report abuse

Franken is correct and for once a honest politician. The foreclosure mills need to be investigated and prosecuted. It's past time for calls for criminal indictments. This is a society with a foundation based on laws and principals. If we choose to allow our rights to be subverted for money then we really don't have much left do we?

Posted by: Desertdiva1 | September 29, 2010 7:34 PM | Report abuse

Who's going to do the investigating? The Republicans want to lower the pay of federal workers. They also want to fire others. Then they want to outsource the rest of the government jobs.

If the Republicans get their way it's very possible that there could be a greater "Redistribution of Wealth." Something the Republicans say they are against. In reality it is just a case of WHO GETS the WEALTH!!!!!

Posted by: doughboy96 | September 29, 2010 7:41 PM | Report abuse

this is the pre election ploy to fool the voters into voting for them...

Posted by: DwightCollins | September 29, 2010 8:29 PM | Report abuse

It was recently suggested on the news that banks are holding back on credit and presumably on modifying loans until at least the midterm is over in order to attempt to discredit the Obama administration and the laws put through by the Democrats. The evidence seems to uphold this. What disgrace the Republicans and Tea Partiers and the banks have fallen to.

Posted by: Anonymous | September 29, 2010 9:27 PM | Report abuse

Wonder how many 'smaller government' Tea Party dupes got their house snatched by Ally? This is what happens when you avoid 'strangulating' by regulating.

Posted by: ctenwith | September 29, 2010 9:44 PM | Report abuse

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Posted by: Anonymous | September 29, 2010 9:59 PM | Report abuse

Al is just another comedian the Dems trot out to "explain" failure. Personal responsibility does not matter to a Democrat.

Hold on, after November things will change. Now that is change you can count on!

Posted by: Anonymous | September 29, 2010 10:51 PM | Report abuse

Are you looking to file for bankruptcy? Compare your bankruptcy options and information http://bit.ly/avB0jI

Posted by: joeaken30 | September 30, 2010 3:07 AM | Report abuse

Commercial and residential foreclosures via deceptive and fraudulent proceedings enable lenders to repeatedly, illegally flip properties, and enables falsified IRS form 1099-A’s. Foreclosure fraud is the best means by which unscrupulous FORECLOSURE MILL LAWYERS deceptively auction and bid (or insiders bid) and acquire those properties; and some neighborhoods blighted.

Two particular companies “which benefit from fraudulent foreclosures are Wells Fargo and Freddie Mac. Another foreclosure fraud factor is fabricated pleadings (such as false ‘lift stay motions’ and false ‘proof of claims’) that mill lawyers file in Bankruptcy courts. Foreclosure fraud has far reaching effects on people; for example: UNJUSTIFIABLE HOMELESSNESS, UNFAIRLY answerable for IRS tax bills, and undue “deficiency judgments.” *more @ http://www.lawgrace.org/2010/09/30/important-facts-about-foreclosure-and-mortgage-fraud/

Posted by: lawgrace | September 30, 2010 11:54 PM | Report abuse

Same problem with forged notaries with these lenders. Anyone needing some investigative information regarding the following lenders, brokers, servicers, notaries ...

Goldman Sachs
Litton Loan Servicing
HSBC
Fremont Investment and Loan
Marti Noriega
John Crandall
Brenda Mckinzy
Leigh Blackwell


Go to the link below

https://fdaaccount.box.net/shared/a1pjz9sz5c

Posted by: Anonymous | October 1, 2010 7:44 AM | Report abuse

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