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Posted at 11:43 AM ET, 11/18/2010

Congressional hearing on foreclosures: When did feds learn of problems?

By Ariana Eunjung Cha

bachus.jpg

(Photo Credit: AP Photo/Pablo Martinez Monsivais)

Rep. Spencer Bachus (R-Ala.), who is likely to be tapped as the next chairman of the House Financial Services Committee, grilled federal regulators about when they learned of the "robo-signing" and other issues related to foreclosures.

After officials from the Treasury Department and the Office of the Comptroller of the Currency admitted they did not know of the problems until they read about them in media reports, Bachus said did not understand how that was possible.

"Regulators were in some of those banks looking. I wonder why [the problems] were not visible," he said, adding, "I'm glad you read the newspapers."

Rep. Randy Neugebauer (R -Tex.) also criticized the regulators, calling it frustrating to have "the people we put in charge" come before Congress again as they did during the financial crisis and say, "We didn't know."

"The American people have a greater expectation that you know it before it happens than reacting after it happens," Neugebauer said.

Rep. Maxine Waters (D-Calif.) said she felt it was clear after hearing from the regulators that "you can't show us in this length of time that you've done anything... or that you're serious about assisting the homeowner."

"Why regulators are not able to identify these weaknesses...What takes so long.... Why is it you don't know how these systems work that you regulate? That's the big question among members on both sides of the aisle," Waters said.

The hearing being held Thursday before the House subcommittee on housing is the second of two on this topic on Capitol Hill this week. The first hearing was held Tuesday before the Senate Banking Committee chaired by Sen. Christopher J. Dodd (D-Conn.).


More on Thursday's hearing on foreclosures before the House Financial Services Committee subcommittee on housing:

Frank: Homeowners should not have 'false hopes' in foreclosure mess
Bank of America outlines reform measures
CitiMortgage admits to foreclosure mistakes

By Ariana Eunjung Cha  | November 18, 2010; 11:43 AM ET
Categories:  Congress, Housing  
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Comments

The current Congressional hearings on Hearing on Mortgage Services and Foreclosure Practices is an exercise in futility without including a THOROUGH probe of the LETHAL role of lawyers regarding mortgage and real estate repossessions! It alarms me that the 'Elephant in the Room' (hiding in plain sight) continues to not undergo investigation! Foreclosure fraud is IMPOSSIBLE WITHOUT an Officer-of-the-Court (a lawyer) filing civil, as well as bankruptcy judicial pleadings!

Investigations exclusive of the very lawyers who file court pleadings seems like a dog and pony show. Lawyers are required to prosecute legal claims by means of law, rather than predilections! Even if / when mortgage lenders instruct lawyers to file inappropriate or unlawful documents, a LAWYER is obligated to advise what can and cannot be lawfully done!

For a very LONG time people such as Professor Elizabeth Warren, Professor Katherine Porter, and Gretchen Morgenson-NY Times (and even me!) have sounded alarms about PREDATORY, sometimes irreparable outcomes from UNREGULATED, IGNORED debt collection ILLEGALITIES.

Our nation’s mortgage crisis has finally caused serious pondering of factors that indicate a mammoth creature (I am certain it is the judicial elephant!) might be the driving force for this incredible Banking debacle!

For myself, and people who ask me to help, I HOPE a graphic TRUE STORY, spelling out methods that judicial systems are utilized to accomplish fraudulent real estate conveyances, and unlawful collections, is a catalyst for needed CHANGE. The epitomizing foreclosure story is found here:

Foreclosure Fraud Assault - A Cry For Help @ http://newsblaze.com/story/20101116120222nnnn.nb/topstory.html

“A foreclosure that entails savagery, fraud, corruption, greed, intrusion, peril, trauma, desolation, shocking deviation from established law and court rules and procedures, and reprisals. . .

The victim's painful story comes with a plea for humanity to rise to a duty of raising awareness, and not merely for the sake of aiding this one victim. It is for the sake of calling attention - and hopefully "making a difference" by requiring lawmakers to make changes in what appears to be third-world judicial systems of shocking perversion and inequality, harmful to the entire economy.

Wells Fargo turned over the modified loan debt to a foreclosure mill debt collection lawyer who used a defunct lender's identity to foreclose, as well as demand unfair fees. At some point after foreclosure had been filed, the victim discovered that the modification consisted of a contract between the homeowner and a fictitious lender. . .”

Posted by: lawgrace | November 18, 2010 1:04 PM | Report abuse

The Justice Department KNEW about the robo-signing, perjury, forgery and fraud in 2008! This is READILY APPARENT from publicly available Court documents. I also have e-mail messages which PROVE THIS.

Since President Obama took office, the Justice Dept. under AG Eric HOLDER has actively WITHHELD and CONCEALED this information from both Congress and the American people!

The public should DEMAND Eric HOLDER's resignation!

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Posted by: Anonymous | November 18, 2010 8:14 PM | Report abuse

The OCC did not know about robosigners! HA!!! Just the 100's of thousands of letters sent to the OCC complaining was not enough to figure out there was something wrong eh! I say line'em all up and assasinate them with a firing squad! When are the people going to take matters into their own hands?

Posted by: Anonymous | November 19, 2010 1:56 PM | Report abuse

Just another reason how BIG GOVERNMENT fails us!!! bullshizzz!!!

Posted by: Anonymous | November 19, 2010 1:57 PM | Report abuse

Barney Frank, Obama and all the rest of these bums need to be kick out of office. How first does this crisis happen, and now two years after it had erupted in the face of the entire federal government, both sides, and now the regulators once again don't realize what the freak was & is going on?

Yes boss, I know it my job to regulate the banks but i don't know what it is that they do. So me and the other agencies chiefs were watching Mr. Drysdale on a old episode of the Beverly Hillbillies to give us clues as to what banks really do!

Are you freaking me about this I did not know about the biggest thing dragging on the economy. Maybe we should have the Washington Post regulate the bank because it seem at if that is where after 2 years the OCC is getting there news.

Posted by: Anonymous | November 19, 2010 3:52 PM | Report abuse

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