Coming up on July 11th is the national Uniform Law Committee conference in Seattle at the Westin Hotel.
Whether or not you are in foreclosure, if you own a home and have a mortgage or intend some day to own a home, this national ULC conference affects you. For hundreds of years states have owned and recorded their own lands – and now it appears the United States federal government would like that to change.
Over a slow process, banks and big business have lobbied to change the rules that protected average citizens. At one time, not too very long ago, you could (and did) only bank with the bank in your state or town. Banks lobbied Congress to allow them to move interstate and began to gobble up the hometown institutions. All of a sudden, Mr. Bailey, President of the local Savings & Loan and local Rotarian could no longer make decisions because the local bank was now owned by Bank of America and “potterized”. This is just a hypothetical example – but you begin to get the gist. Small hometown banks that were once accessible are no longer operating on a first name basis.
Does this hurt you? Sure, it does. Because if you have a family tragedy or run into health or financial problems – you can’t turn to Mr. Bailey for help. You become a number and your profile is stored in a data storage system where the computer makes all the decisions based on an unsympathetic computer software program. And don’t think this systems treats every one equally. It knows if you are black, white, male, female, married, single, like porn or buy energy drinks, Coke or Pepsi and all of your habits are factored into an invasive system that makes the decisions on whether or not you get a loan or the help you might need.
Why is the ULC conference so important? The hand selected chums on the ULC committee are trying to decide how they can best push through a national (federalized) mortgage loan registry system, like MERS – that hasn’t worked so well over the past 15 years. What they’d like to do is white-wash all of the fraudulent land records – and forgive the crooks for their bad acts. And by doing so the national land registry becomes just that – a federally owned system making it easier to grab land and take away state’s rights.
Why aren’t state and federal legislators worried? The corporations that this committee is representing (and it’s NOT you Joe America) spend a lot of money on political campaigns and expect the legislators to support them. Money in politics – it’s the old mantra – “Get the money out of politics” and you’ll get real people-oriented legislators.
We’re trying to educate the committee members – but just take a look at an email from the ULC Chair, William Breetz to Honolulu foreclosure defense attorney, Gary Dubin:
Sorry – damned computer hiccups at me. As I was saying, several understand it, and we are trying to deal with the issues of securitization. Without a doubt, the electronic note registry if implemented, would be an enormous step forward- for everyone.
However, the greatest single challenge confronting you and me, the Drafting Committee and all legislators, is how best to address the borrower’s inability to pay back what she borrowed, even on modified terms.- when tragedy strikes. That, and the negative equity. Your answer is to essentially give them more time. But hell, in states like CT, they already get more than 2 years and its longer than that is some states.
Sure, the mortgage originators were horrible people – Countrywide was just the most obvious and the worst – and so were the appraisers and the lawyers that did the bonds and the real estate brokers. And everyone else who was crooked. And yes, many lenders should be in jail and they aren’t. and yes, Congress is corrupt for amending the bankruptcy laws to prevent a cram down on personal residences [but it’s ok for vacation homes?]
But here we are. And – what do we do? I believe, and I know the Committee believes, that if the lenders/investors don’t have some comfort that they will be ultimately repaid following a borrower’s default, it will affect their willingness to lend. Who is to repay the lenders for the carrying costs during your MIA delays? [emphasis added – DC Ed.]
Well, Mr. Breetz – you are right. There were banking crooks that didn’t go to jail [yet], and you are right – Congress has made some pretty bad legislation… or failed to legislate altogether. But where “we” are – is faced with the big banks’ problems – either securitize the loans in order to get a mortgage – or punt. And you know, Mr. Breetz – when these banksters have patented every angle strangling even a [less evil] local banker who might have loaned before the system was entirely computerized. Your benefactors have severely limited the playing field.
And let’s face it – investors aren’t going to come back to the table until decent regulation is in place. Investors (other than the big boys that hold the top tier tranches – like Goldman Sachs) don’t want to force average Americans into foreclosure in order to generate liquidity – they don’t want the negative press this causes. And let’s face it, Mr. Breetz – decent 30-year mortgages are not liquid – which every pension fund investor must consider before dropping his funds into the trading hands of investment bankers. These NTMs are not the answer.
Your (our) real problem is not solved by constructing a national registry against the betterment of the “United” States. The real problem, if you are honest, is the lingering corruption of the Wall Street stock market. Pension fund investors would be better off establishing Bailey Savings & Loans throughout America and letting folks know they are investing in Americans… rather than this Wall Street den of greed where workers are looking to rip people off on a daily basis and are rewarded with massive bonuses and parties where prostitutes, cocaine and dwarf-throwing competitions are provided as entertainment.
Mr. Breetz – have you not seen Wolf of Wall Street? Jordan Belfort stated that as bad as he was – the big investments banks were a lot worse.
Mr. Breetz – Do us all a favor – if you and your committee have not seen this movie and/or read the book – watch Wolf of Wall Street BEFORE the July 11th meeting – because this describes your benefactors and the bankers that want this new Uniform Foreclosure Law. These are the guys you are working for – and against the average American homeowner – to take that “enormous step forward- for everyone” – in the Wall Street and banking industry, that is.
Don’t justify the Wall Street immoral behavior, corruption and greed as a necessity to stabilize the economy – because that’s just a facade. The truth is you are being paid to represent very bad people and it will ultimately hurt America. You said so yourself.
Here’s a link to another Wolf of Wall Street trailer – watch only where no children are present. And then think about what you and your committee are subjecting your children and grandchildren to and your legacy working on behalf of these Wall Street banks. This is a true story – and the book is even more informative. http://youtu.be/7tX40xe2cnw