Ideology Blocks the Truth
Posted on April 1, 2013 by Neil Garfield
Here is what she said: “Did the bank honor the terms of the original loan agreement? Did you? You call it a predatory loan which is an excuse for not reading the agreement. Unless the bank committed fraud, the situation is entirely your fault. Millions of people buy houses that are modest, maybe a bit smaller than they wish, because they know they cannot afford anything more. Perhaps you should have done the same. I have no sympathy for people that did not read the terms of their original loan agreement.”
Ignorance and ideology are what is stopping the correction needed for housing and thence the economy which depends upon consumer spending, housing being a major component of that spending. So let’s look at her self-righteous email, line by line and then see what she would say.
1. “Did the bank honor the terms of the original loan agreement?” Actually the answer is that in most cases there was no bank disclosed to the borrower. “Originators” referred to in the business plans of the banks as filed with the SEC clearly show that they relied heavily on “bankruptcy remote” non-bank thinly capitalized vehicles, which is to say straw-men in sham transactions leaving the borrower with no information on the identity of his creditor or how to contact them or pay them.
The whole idea here was to create the illusion of a transaction and then use paperwork that assumed the validity and reality of the transaction when there was no transaction. The originator was not permitted to take control of the money even for a minute, nor were they allowed to retain ownership of the loan on or off record. These companies were started for the sole purpose of originating loans, not brokering them and not lending the money to the borrower ...
http://livinglies.wordpress.com/2013/04/01/ideology-blocks-the-truth/
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