Big Banks Being Sued Over Foreclosures By NY
I’ve been waiting for this one to come. Last week the Attorney General for New York, Eric Schneiderman, finally sued Bank of America, J.P. Morgan Chase and Wells Fargo basically for fraud in the foreclosure mess from both 2010 and last year where many people were being foreclosed upon without the proper documentation or even evidence that they were behind on payments. What was known as robo-signing, where those tasked with verifying information decided to just sign foreclosure notices instead of doing their job, took place all across the country and caused a lot of headache to people, including displacements.
Probably the only reason those 3 banks are being sued is because overall New York didn’t suffer as much on loans as other states did because it’s highly regulated and thus doesn’t allow the kind of loans that destroyed countless families and lives in other states. Still, there were a high enough number of foreclosures because the state economy was suffering so foreclosures were occurring.
In my opinion this should have resulted in criminal prosecution for someone, whomever thought that they could get away with something like this. That a couple of the banks on this list got government support in 2009 so that they wouldn’t crash and burn is even more troubling because I had thought that the government was watching these banks to see what they were doing while they were waiting to get paid back for those loans although, to be fair, Bank of America did pay the government back in December 2009, although they really weren’t in a cash position to do so.
Still, with the housing crisis moving into year 5 and people still wondering if we’re going to pull out of it, even as it’s starting to show some signs of recovery, it seems like something criminal took place and that the banking powers that be got away with something.
Who’s with me on this one?