The NYTimes is reporting that NY and California have agreed to sign on the 50 state deal and that is will immunize robo signing. If that is true, it’s over folks. The housing market is not going to recover any time soon and the court system will be permanently corrupted by forged and perjurious documents.
This settlement is an incredible breach of the social contract between the government and the governed.
On top of everything else, nobody seems to think it’s going to be helpful to the recovery of the housing market, help the economy, or do anything except bail out the banks, again. From the Times:
“I wouldn’t say it’s a panacea for the housing industry but it is good for the banks to get this behind them,” said Jason Goldberg, an analyst with Barclays.
Christopher J. Mayer, a housing expert at Columbia Business School, said the accord could give banks more certainty that they can clear their large backloads of seized homes, restoring the flow of those homes into the market.
Yeah, because it’s not like there are a shortage of homes for sale already?
About one in five Americans with mortgages are underwater, which means they owe more than their home is worth. Collectively, their negative equity is almost $700 billion. On average, these homeowners are underwater by $50,000 each.
A recent estimate from the settlement negotiations put the average aid for homeowners at $20,000.
“I just don’t think it’s going to be a life-changing event for borrowers,” said Gus Altuzarra, whose company, the Vertical Capital Markets Group, buys loans from banks at a discount.
He’s right, homeowners will continue to be sacrificed like so many lambs.
On the other hand, the banks are evidently bribing the AG’s with money to use to pay for their investigations of—the banks. And useless consumer credit education, to perpetuate the myth that this is the fault of greedy or stupid homeowners who bought more house then they could afford; rather than the reality that they were fraud victims of predatory lenders.
Call your AG’s office, beg him or her not to sign. And remember this at re-election time. Read the Times article – there’s lots more in there.