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Congressman Alan Grayson explains what went wrong with the foreclosure process

Confused about all the news regarding problems with foreclosures and how home mortgages are related to Wall Street? Check out this YouTube video by Florida Congressman Alan Grayson.

By Ariana Eunjung Cha  | October 8, 2010; 4:28 PM ET
Categories:  Congress, Housing  
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Will the voters in this buffoons district do the right thing and un-elect him? I'm not holding my breath.

Posted by: ddnfla | October 8, 2010 5:56 PM | Report abuse

I agreed with much of Congressman Grayson's comments but I think he let the mortgage holders off too lightly. I hold myself responsible for signing a legal document that could even remotely put me in a position to lose my home because of inability to pay.I think these people made grievous mistakes that now the taxpayers are being asked to resolve ultimately. I do not like Alan Grayson and I hope he loses his position Nov. 2nd. People like him made me and my family leave the Democratic party and become Independents. Rep.Grayson is an embarassment that should just go away.

Posted by: sayitlikeitis | October 8, 2010 6:01 PM | Report abuse

glad people are finally seeing another side to the foreclosure crisis. the bank criminals have had long and in-depth public relations campaigns deriding their mtg. customers as too stupid to fill out forms, liars, cheats and speculators.
actually, those terms and worse apply to the bank criminals.
where is the Treasury, with its huge array of six-figure employees paid by us taxpayers to protect us from this kind of felony?
dozing at the switch while blandly praising themselves as 'helping' homeowners.
thanks Phyllis Caldwell for standing by idle while banks ripped thru millions of foreclosures, the vast majority of which were frauds. we appreciate your dead silence as the HAMP program failed, unsupervised and without penalty to the banks.
and good on ya for offering absolutely no leadership, authority or accountability as banks make off with some three million homes.
is this change we can believe in??

Posted by: FloridaChick | October 8, 2010 6:26 PM | Report abuse

What Congressman Grayson says in this video is completely in line with what has been reported about MERS and many of the court decisions regarding mortgage foreclosures. There are numerous reports of incidents similar to what the congressman discussed in the video.

The Justice Department needs to convene a Federal grand jury and prosecute all the fraud mills, robo-signers, and executives of all the law firms and companies involved in this. The cases should be brought under the racketeering laws, because this seems to be as big as organized crime was during Prohibition. We are just now beginning to understand the scope of fraud and other illegality that was created by the arrogance, greed, and slipshod operation of a significant part of the mortgage business and their Wall Street allies.

Posted by: Anonymous | October 8, 2010 6:42 PM | Report abuse

Congressman Alan weird dude.

Posted by: Anonymous | October 8, 2010 8:43 PM | Report abuse

Grayson for President!

The banks have screwed us for long enought.

Everyone who "owns" a home should keep it.

There should be no more foreclosures until the billion dollar bonus bankers lose theirs, as well as all the congresscritters.

Posted by: paulinlodi | October 8, 2010 9:26 PM | Report abuse

This is pretty sad.

Over 5 years, he could only come up with 4 examples? Tens of thousands of foreclosures are happening in Florida, and it takes an average of 546 days to foreclose on a house there.

This is a gross distortion of the reality of foreclosures.

While the problems need to get fixed, most of the problem of foreclosure rests in the hands of the borrowers who aren't paying their mortgages.

Posted by: Benson | October 8, 2010 11:30 PM | Report abuse

We are all victims, victims I tell ya...

I guess self-accountability is a thing of the past.

What a vitriolic retard.

Posted by: Anonymous | October 8, 2010 11:59 PM | Report abuse

Grayson's video is a serious, amazingly well-researched expose of huge financial crimes. But don't expect him to get pats on the back by the Wall Street good ol' boys or their cheering section in the mainstream media. No wonder that he and Rep. Ron Paul, the libertarian Republican from Texas, are close allies on financial issues (although not much else). Neither is an Establishment player, but neither could care less. Grayson should be listened to carefully.

Posted by: rcollier1 | October 9, 2010 1:03 AM | Report abuse

This guy is simply a joke.


Posted by: Anonymous | October 9, 2010 2:06 AM | Report abuse

Grayson is the most fearless member of Congress -- a lone pit bull defender of the middle class in a swarm of Establishment lap dogs. (Grayson, Coburn, Feingold and Paul are the only honest MCs we have; maybe that's why they all seem a bit eccentric.)

What a mess! Count on government to look the other way while these fraud mills churn on. The banks will buy its silence.

Posted by: Anonymous | October 9, 2010 3:16 AM | Report abuse

It's interesting, but not entirely surprising that none of the anti-Grayson commentators are actually attacking the substance of Grayson's remarks.

With respect to the borrower's responsibilities, a borrower is not responsible for registering a sale with the local jurisdiction. This is the responsibility of the lender. So it makes no sense to suggest that the borrowers are somehow responsible for this particular issue. The borrower has no responsibility for filing valid, non-fraudulent documents with the court. This is the responsibility of the person bringing suit. As pointed out in a number of the anecdotes, in some cases banks are foreclosing on properties that they not only don't have clear title to, but for which no mortgage was even issued. That's a major problem.

As far as Grayson the person goes, he's thin-skinned and a bit of a grand-standing camera-hound. However, in this instance he is absolutely right. His explanation was also clear and to the point. This is what he does best. He's a strong advocate for his constituents. Of course, being a strong advocate for constituents doesn't always result in re-election. People don't always vote their economic interests. Some allow themselves to be played for suckers. I suspect some of the negative commentators have bought the equivalent of the Brooklyn Bridge many times over in their political lives.

Posted by: JPRS | October 9, 2010 4:51 AM | Report abuse

Grayson is mentally ill.

Posted by: Anonymous | October 9, 2010 6:14 AM | Report abuse

Anon 6:14 AM.

Yes, anyone who questions the ethics of mortgage bankers who push through foreclosures using fraudulent documents is "clearly" is mentally ill.

The GOP standard seems to be that "if it's illegal and pays, do it because . . . well, just because. Personal responsibility, or something".

Posted by: JPRS | October 9, 2010 6:29 AM | Report abuse

THANK YOU Rep. Grayson for clearly exposing the financial fraud and the blatant violation of contract law.

Posted by: Anonymous | October 9, 2010 7:32 AM | Report abuse

Grayson is your typicial classless liberal/progressive Democrat.....

He manulated a campaign ad to smear his GOP opponent.......

That smearing lying ad will probably cost him his seat.

Washington POST you shouldn't be promoted dirty dishonest liberal/progressive Democrats, like Grayson.........

But We The People know why you are......sad

Posted by: Anonymous | October 9, 2010 8:16 AM | Report abuse

I have no problem with Mr Grayson. He is what he is...a pig. My problem is with the voters in Florida, who actually pulled the level for a pig. in my mind, these people should have their voting rights taken away, because they have absolutely no clue as to the damage they have inflicted on the state of Florida.

Posted by: Anonymous | October 9, 2010 8:21 AM | Report abuse

Grayson is a hero in politics. He fights for middle class and poor people, for fairness, against frauds and I am speechless as to why anyone would NOT support the person in there fighting for the little guy! Yeah he is dramatic, but you know, he HAS too, since he is one of a few who will beat the podium for YOUR rights against corrupt banks who are the financial vampires in this country. They caused this mess! Grayson is just trying to help people who deserve and need help. I want him to PASSIONATELY represent the little guy. His explanation here is clear, concise, and unless you are a tunnel visioned Republican, it's the truth. Why do you people snear at those who would want to support the voiceless? Cripes it makes me want to leave the US and go live on a deserted island because this country has gone insane and people have no critical thinking skills anymore! I guess Stupid is the new hot skill.

Posted by: Anonymous | October 9, 2010 8:53 AM | Report abuse

This goes way beyond just some notery stuff. These guys really do not know who owns what. Whether you pay off your note or get foreclosed on there is not guarantee that you will get a valid title because the IDIOTS were to CHEAP to pay the fees or make the effort to properly register the notes. THAT and the buyers of the MBS's..say like your pension fund..actually bought EMPTY investments. They NEVER transfered the notes to the trust prior to closing the MBS. Now the status of the MBS as a legal entity is in question. POOF goes your investment. Even if that were not the case..the MBS will lose its tax status and OWE BILLIONS to the states and IRS.

Posted by: Anonymous | October 9, 2010 9:01 AM | Report abuse

more and more data is being made accessible that proves the new republican party is more about money than anything else....get over your prejudices and fears of progression people...the vote you cast for republicans in november may well signal the beginning of the Dickensian chapter of The United States...much like at the beginning of the 20th century...

Posted by: kiler616 | October 9, 2010 10:12 AM | Report abuse

Grayson is telling the cold hard truth here. Those who can't handle it don't really deserve opinions. Which, it occurs now, probably describes most Republicans today, except for those lyin' and denyin'.

Posted by: vspaldingsr | October 9, 2010 11:04 AM | Report abuse

I thought this jerk was put in a padded cell. How can anyone take what this guy says seriously. He has a mental problem. Hey alan, how about the ethics of Barney Frank and Chris Dodd. You forgot to mention them. You also forgot about Chris' little cottage (so he calls it) in Ireland, which turns out to be a mansion. Why did he get this special discount mortgage? Granted banks have their problems, however, our government has a bigger problem forcing banks to give mortgages to people who can't afford to pay the money back. What say you screwball Grayson?

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Posted by: Anonymous | October 9, 2010 11:40 AM | Report abuse

Given Wall Street's lamentable record these past several years, none of this should come as much of a surprise. The entire financial services industry is like a giant parasite feeding off the nation's misery. The government has taken some steps to curb this abuse but, obviously, there's still much work to be done.

Posted by: Anonymous | October 9, 2010 12:34 PM | Report abuse

Grayson has it exactly right.

The whole mortgage mess started with fraud perpetrated by Wall Street in cahoots with the mortgage companies. In their arrogance and greed they tried to ignore laws related to real estate and liens (mortgages or other claims) against that real estate. Liens have to be recorded by the holder and if changed the changes have to be recorded. The recordation involves paperwork and fees. The recordation fees are part of the revenue of state and local governments.

The mortgage companies lied to the borrowers about their affordability to sucker them into predatory loans. The loan officers were given bonuses to issue predatory loans. Many of the people qualified for prudent mortgages and could afford them, but Wall Street made more money by screwing borrowers than by making boring, prudent loans.

Wall Street's desire for predatory loans was driven by the possibility of selling the loans as sliced and diced securities and selling investors insurance on the securitized loans in the form of credit default swaps. That was where the big bucks and big bonuses came from.

The whole thing was a monstrous fraud. The chickens are now coming home to roost, because they are trying to cover up the fraud by more fraud and perjury. However, they are running into hundreds of years of real estate law and recordkeeping that they thought they could ignore.

MERS is the same kind of book entry recordkeeping structure that Wall Street uses for stocks and bonds. But real estate law requires careful paperwork and recording fees and a lot of things that Wall Street found inconvenient and that cut into their fees, profits, and bonuses. So they thought they could just ignore the laws. Well, it turns out they can't and that they had to pile on more fraud and perjury to try to get around the laws. Well, now they are caught and the true dimensions of the mess are becoming clear.

Grayson has it exactly right. I'm sure his Republican opponent is being supported by the fraud perpetrators through secret channels like the Chamber of Commerce. The fraudsters want to get rid of people like Grayson who understand the dimensions and causes of the problem.

Posted by: StanKlein | October 9, 2010 12:40 PM | Report abuse

Reading these anti-Grayson comments:I ask myself; "How can people be so stupid not to see the truth"? I've worked for several major banks, even as a vice president. Most non-banking people are clueless of what REALLY goes on in the banking world! It's worse than YOU can ever imagine! Banks try to make people feel guilty when customers cannot pay-they often use words like "responsible" and "obligation"-then they milk people for whatever people are willing to pay! Yet, major banking players will unhesitatingly walk away from a distressed property whenever it's in their favor! All without a second thought of "responsibility".

One thing I am absolutely certain of; America has "dumbed down". Personally I'm thankful for my banking employment experience; I'll never go broke! I've also learned that banks hate litigation when YOU initiate it! Esp in small claims court! So the next time they try to charge an unwarranted "fee"; no matter how small-take the time and file a "small claims" against them in court!

Wake up and Wise up America! The good ol TRUSTING days are over! Put on your Gordon Gekko hat and get busy!

Posted by: jstone | October 9, 2010 12:51 PM | Report abuse

Excellent and factual presentation. We need more Alan Graysons in Congress.

Posted by: Anonymous | October 10, 2010 11:53 PM | Report abuse

Grayson is full of s____ and will lose his seat in November, Thank God

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