'Robo-Signer' Foreclosure Scandal May Threaten Fundamental Financial Stability, Government Watchdog Warns

'Robo-Signer' Foreclosure Scandal May Threaten Fundamental Financial Stability, Government Watchdog Warns

I've mentioned this before, in the biggest financial and real estate crisis since the depression why isn't anyone being held accountable. No criminal charges have been brought against any of the involved institutions or their executives. This is highly unusual. In the 1990 S & L crisis which was very bad, although not as bad as the current crisis, industry people were investigated for their role in the crisis and several went to jail. The same thing happened during the Enron affair. People went to jail. Now it appears that criminal activity has occurred again by the very banks that created the crisis. The use of robo-signers who had no idea what they were doing and did not and were not qualified to review the documents is just another manifestation of these same institutions flaunting their disdane for the government and the American people who are the ultimate victims. Clearly the banks and servicers have crossed the line in a big way. While I don't have any faith in federal regulators and overseers doing much to mitigate the problem, I do have faith in the attorney's general of all 50 states to investigate these activities and to prosecute any and all guilty parties. No institution or individual executive should be allowed to feel that they are above the law. The fact that they have the resources to corrupt the system does not mean that they can get away with it. Just look at Andrew Cuomo for example. As New York's attorney general he went after Fannie Mae and Freddy Mac to resolve issues which partially contributed to the current crisis. By threatening criminal prosecution he was able to get them to agree to stop these practices and sign the HVCC agreement. Since Fannie and Freddie are national corporations this effectively became a national law. A couple of weeks ago Mr. Cuomo was elected governor of New York and we expect better state governance to ensue.
This foreclosure documentation crisis is very serious and threatens to undermine a fragile housing market which has not really started to rebound. It also undermines the very chain of title documentation we rely on to determine ownership. We cannot continue to rot out the financial foundation which has made America an icon of stability. It is necessary to contact your elected officials and let them know we expect them to do the job they were elected to do or they will not have a job come their next election.