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Friday, October 22, 2010

Obama punts on the foreclosure mess.

Letting the banks off the hook again.

U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that the Obama administration will attempt to protect homeowners and police the kind of paperwork fraud that led the nation's largest banks to temporarily halt foreclosures this month, but added that the administration had yet to find anything fundamentally flawed in how large banks securitized home loans or how they foreclosed on them.

He added, however, that the administration is focused on ensuring future compliance, rather than on looking back to make sure homeowners and investors weren't harmed during the reckless boom years. The administration is "committed to forcing institutions to change the way that they conduct business," Obama's top housing official said, "to make sure these problems don't happen again."

More and more evidence that there has been systemic fraud throughout the foreclosure process. The rule of law, proper legal procedures and adherence to the laws covering roperty rights don't mean much anymore.

Atrios on the Eschaton blog said it best.

We're really at the point where no sane person should get a mortgage given the kind of fraud and theft that's out there... Once we came to a point where servicers could make more money by foreclosing than not foreclosing, the game was over.

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