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White House: Administration will 'get to the bottom' of foreclosure problem

White House spokesman Robert Gibbs said Tuesday that the administration supports a multi-state investigation into the mortgage lenders about foreclosures, even though it is against a national moratorium.

"We want to take the just and necessary steps to ensure that the process is being followed legally," he said.

A number of prominent members of Congress have called for a national moratorium on foreclosures, but Gibbs said the administration is wary of "unintended consequences to a broader moratorium" and "does not want to see "broader harm done to the housing market and to the housing recovery."

Up to 40 state attorneys general are preparing to announce on Wednesday a joint probe into mortgage servicers. The banks have said they are cooperating with law enforcement officials' requests but that they believe that their foreclosure filings were accurate and that any mistakes were only technical.

By Ariana Eunjung Cha  | October 12, 2010; 3:40 PM ET
 
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Comments

We've already seen the substance of this administration's 'get to the bottom of the problem.' As always it's George Bush's fault. Then create a huge debt burden to 'help.' The whole lot of them just need to go...the sooner the bettter.

Posted by: Anonymous | October 12, 2010 4:49 PM | Report abuse

They must be tuning up the paper shredders and working on the computers at the White House and in Congress.

Fannie and Freddie along with the current administration, there advisor's and Pelosi, Reid, Dodd, Shummer, Frank and the list goes on and on.

When the whole truth about the scam finally comes out the above will be hurting.

Posted by: jace1 | October 12, 2010 4:51 PM | Report abuse

I bet it's the liberal base that caused the problem.

Posted by: xtopher | October 12, 2010 4:57 PM | Report abuse

NOW, THAT IS SCARY!! If Gibbs & Co, assisted by his tax cheating side kick Geithner are going to get to the "bottom of it", watch your back and your pocket book!!

Everyone of these scoundrels should be run out of Washington on a rail -- starting with Obama!

Posted by: wheeljc | October 12, 2010 5:09 PM | Report abuse

Regardless of wose fault this is--the fall of the economy; lack of jobs; foreclosures, etc., the face still remains THERE IS NO ACCOUNTABILITY IN GOVERNMENT, NOR IN THE PRIVATE SECTOR.

Officials are permitted to do whatever they need to do to cover their mistakes, and it's the American taxpayer who will reap the burden in the end.

Are we, as American taxpayers, really concerned about who are electing to office? If not, you need to be! If you elected someone to office and they are not working for the American people, SHAME ON YOU!

As taxpayers, we need to DEMAND accountability from every politician holding office.

Posted by: Anonymous | October 12, 2010 5:15 PM | Report abuse

Get to the "bottom" of the problem? LOL.

Here's the problem: unfettered corporate greed. Why couldn't these banks have sufficient staff on hand to do things right in the first place? It isn't rocket science, after all.

In any event, the taxpayers are about to be raped once again, when all the "too big to fail" banks have to take back all the defective mortgages and then need Bailout II.

Posted by: John991 | October 12, 2010 5:24 PM | Report abuse

Get to the bottom of it? How about you let the free market work itself out so we can get to the bottom of the housing market.

Posted by: Anonymous | October 12, 2010 5:41 PM | Report abuse

Sounds as if this calls for another new government agency...

Posted by: Anonymous | October 12, 2010 5:44 PM | Report abuse

The problem is that Wall Street decided that 200+ years of law on recording deeds and mortgages wasn't good enough for them and they would replace it with a private computer system called MERS. They did it so they could slice and dice mortgages into crazy securities, sell credit default swaps, and make lots of fees and bonuses. MERS let them trade sliced and diced mortgages without filing the changes in state and local land records and paying the applicable fees.

Just one problem. It was illegal. The illegality didn't show up until they needed to foreclose on the predatory mortgages that were pushed on unsuspecting borrowers and likely deliberately designed to go into default and foreclosure. (You can't qualify a borrower at a low "teaser rate" and then keep pushing the rate up without hitting a point where the borrower can't pay.)

To foreclose they needed the paperwork that would have been recorded in the state and local land records. So they fraudulently forged the paperwork. They were also supposed to review the paperwork and be sure it was in order, and they perjured themselves and lied that they had looked at it.

One other problem. In states where judges have to look at the paperwork they threw the foreclosures out of court. In other states borrowers took the cases to court and started showing the fraud and perjury.

Fixing the problem starts with prosecuting and convicting the fraudsters and perjurers. Then, to minimize their jail terms, make them disgorge their ill-gotten fees and bonuses and pay the state and local governments for the documents that were never filed. Replace the mortgages with non-predatory mortgages at the current values of the houses.

Posted by: Anonymous | October 12, 2010 5:49 PM | Report abuse

Uh, huh, yeah, right! Sure you will. This White House is a joke.

Posted by: georges2 | October 12, 2010 6:01 PM | Report abuse

Flip flop flip flop flip flop. Can this administration get any more bizarre? Today we say one thing. Tomorrow we say the total opposite. The next day we contradict the first day. Does anyone at the White House know WTH is going on?

Posted by: Desertdiva1 | October 12, 2010 6:07 PM | Report abuse

But, Why is The Anti-Christ Obama Destroying America. If you truly want to know what is going on; Then you will have to accept these things as the TRUTH. Once you understand the following things; All things will be understood. So I tell you Obama is Satan on Earth, Lawless One, or what ever else you want to call this Demonic Figure. His words describe him, He is a False Hope, If you listen to him you will love him. He carries a Bow without an Arrow. He will conquer all through his speech, his false hoods will capture all who sit and listen to him.
2 Thessalonians 2:11-12
11And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness.

Posted by: makom | October 12, 2010 6:23 PM | Report abuse

Given the Administration's track record my money is on the option where they cancel all on-going foreclosures, give the people their houses and bill the taxpayers!! -)

Posted by: thornegp2626 | October 12, 2010 6:51 PM | Report abuse

Sounds like the banks are about to get another bailout with love and kisses from Obama and Geithner.

Posted by: solsticebelle | October 12, 2010 7:01 PM | Report abuse

Get to the bottom? LOL,
Here is the f#@&!n bottom line.
The banks are fraudsters, they are also insolvent.
You want an end to this?
Remember the last time the neo-cons deregulated the S&L's?
Can you say Resolution Trust Corp?

Posted by: sirstevedom | October 12, 2010 7:03 PM | Report abuse

If you think the Obama administration gives a d*mn about people getting thrown out of their homes because of the fraud of the banks, then I have a bridge to sell you.

Posted by: geezjan | October 12, 2010 8:18 PM | Report abuse

who cares?

Posted by: Anonymous | October 12, 2010 8:29 PM | Report abuse

Why is it that the most obvious and simple answer to this problem is not used? Every current first mortgage in America should be AUTOMATICALLY refinanced by Fanny and Freddy to a level which will allow ALL Americans to keep their homes and applied to everyone. If this is 4 percent fine, if it is 3 percent fine, if it is 1/2 percent fine. DO IT! It will instantly give America a financial recovery! AND it will not cost the Government or taxpayers a dime!

Posted by: Anonymous | October 12, 2010 8:32 PM | Report abuse

Imagine the Keystone Cops or the Three Stooges investigating the banking industry.

Pretty much all the news that comes out of the White House these days is hilarious. It's endlessly entertaining, especially when Biden sticks his fingers in Geithner's eyeballs. That never gets old.

Posted by: Anonymous | October 12, 2010 9:57 PM | Report abuse

Gee Gibbs get a mirror and have the Oval office occupants take a peek, it saves time in getting to the bottom of the problem.

Posted by: Anonymous | October 12, 2010 10:15 PM | Report abuse

Greed!! that is the best way to put it. The sad thing is people brought $500,000 homes that were really worth $250,000. But since the banks gave a discount if you used their title company, their attorney and their appraisal company they were all in on it together and puffed the numbers. Flipping properties that they already owned as a bank. I road through one neighborhood in 2003 and it said prices from $300,000 - $599,000 in 2007 same neighborhood said starting from $600,000 - $900,000. I said honey lets rent. I think mortgages are worst than payday loans, cause you borrow $300,000 and pay $1,000,000. I hope things change...

Posted by: Post | October 12, 2010 10:29 PM | Report abuse

The White House won't get to the bottom of anything.

Think of the BP Oil Rig Disaster. A rig *BLEW UP*. Killed a bunch of people, it pumped millions of gallons of oil into the water for almost 2 months before Obama noticed there was a problem.

Obama couldn't discover America if he had a map and the diary of his father explaining why he should hate the white man who lives there.

Posted by: Ombudsman1 | October 12, 2010 10:30 PM | Report abuse

Mr. Gibbs, with all due respect, either you are totally clueless or in bed with the banks. "Get to the bottom of this?" Are you kidding? The White House, Congress, DOJ, SEC, Fannie and Freddie don't have time to play around with this. This is mortgage and securities fraud scandal at the level, if not greater, than the Madoff scandal and yall know this. It will be shame on Obama, if he let the people down that voted him in when they need in the most. This is more important than his healthcare agenda. 100's of thousands are homeowners are about to put out in the street when the government has already paid the banks for the mortgages. The banks added fees and charges that put homeowners waitig for their trail modifications to be approved in the hole. The mortgage companies even refused to take payments, before fake modifications were offered and are holding that against homeowners. These US citizens have been in their homes paying mortgages and are not deadbeats. They are just people that got a little behind, then the banks started swindling them. The White House, Congress, DOJ and SEC must mandate a National Foreclosure Moratorium today, in order to conduct a complete and thorough investigation of this fraud. Obama, we voted you in, because you made us believe that you were different and you would not let Americans get taken advantage of like this. The banks are intentional sitting on the money given to them by the government and not modifying as many loans as they can. Why is the government allowing them to foreclosure on loans that homeowners have been paying on faithfully and timely during the so-called trial modification periods? This problem can be handle withou throwing 100's of thousands of Americans into the streets.

Posted by: awesomelm | October 12, 2010 11:19 PM | Report abuse

If they want to get to the bottom of the foreclosure problem, look no further than the S&Ls that scammed homebuyers out of their money every which way they could. For them to blame the homebuyer for buying houses to expensive for their incomes doesn't wash at all, considering that they were so happy to make the loans.

Posted by: Anonymous | October 12, 2010 11:38 PM | Report abuse

Kick banking executives to the curb. Take away all their property. Ensure they never work again. Hire forensic accountants and ethical real estate lawyers to sort out whose mortgage went where and certify, upon pain of Death, that foreclosure documents are correct. At the same time, undo all the damage the U.S. Government did to the banking laws at the demand of bankers. Restore banking laws to the state they were in back around 1970. Those financial institutions that benefited from TARP, even though they are doing very well for themselves now, should be forced through orderly liquidation. There is something very wrong when those who make fabulous money do so through opaque, mysterious, and paper shuffling means.

Posted by: BlueTwo1 | October 13, 2010 12:21 AM | Report abuse

Poor homeowners great for the bank. And the one manupalting the mortgage industry. It will never end the lack of work and people will continue to suffer the pain of dying in hardship,stress. GOD BLESS AMERICA!!!!!!

Posted by: Anonymous | October 13, 2010 12:34 AM | Report abuse

"Gibbs: White House will get to bottom of problem"

What this really means is that Obama is about to screw the pooch again as Dick Cheney would say BIG TIME!

Posted by: gun313 | October 13, 2010 12:42 AM | Report abuse

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