• Twitter Updates

    Error: Twitter did not respond. Please wait a few minutes and refresh this page.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 117 other followers

  • Advertisements

What? Oh, I forgot, it’s Goldman…

Unbelievable.  This only goes to show you the limitations and pitfalls of relying on (or trusting in) the mass news media at large.

So about a year ago it hits the street and T.V. screens that the banks have been performing this illegal practice of forging mortgage documents which became known as robo-signing.  This is bad, heck this is fraud, dishonest and illegal.  OK, it’s exposed so it’s got to now be stopped.  Lawsuits are flying and major bank PR reps are putting their spin on what they unknowingly have themselves now become victims of – not.  Just play dumb, point the finger at someone else, preferably someone or some company that doesn’t exist and let the short attention span public forget we got caught with our hands in the cookies.

But not so fast.  It’s not over.  Yes the Wells Fargos, Bank of America’s, Deutsch Banks, all put their tail between their legs and ran but what about Goldman Sach’s?  Nope.  Nadda.  We’re above all that law and legality stuff, we’ll just keep doing what we’re doing and let you know if and when we’re going to stop.  WTF?  How arrogant and braisen can this bank be?  Is is because they practically own all the politicians and have alumni in may key financial posts in US government and business?  I’m beside myself and don’t know what that crazy disgusted look on the guy sitting next to me means?  This is going too far and the gub’ment needs to get off their donkeys and actually do something about reforming the financial industry.  As much as I distrust the government what the heck do they exist for but exactly this purpose.  To protect and promote the public good.  Politicians continually prove themselves worthless and incompetent, except when they are self-serving.  Banks perform valuable services and they get paid handsomely.  Problem is they have lost their moral compass and due to competitive pressures like every business in the world experiences, are constantly looking for new edges and advantages over the competition and for products that generate higher margins.  Hence the whole Mortgage banking, Collateralized Debt Obligation (obfuscation?), Bond Rating Agency, Government & Public Employee Pension & Muni Bond fund, Worldwide economic catastrophy that we are now painfully experiencing.   Greedy bankers and lax, inept, unwilling and toothless government regulation.  Why is this so hard to figure out?  It’s really quite simple.  I just explained it.

Here’s the latest revelation in the news today – those sweet bankers over at Goldman Sachs have decided to stop that nasty illegal practice of robo-signing mortgage documents so they could then foreclose on the homes.

As part of the New York deal, the Goldman subsidiary said it will stop the practice of robo-signing mortgage paperwork.

How nice of them.  Why they must be the nicest guys and gals over there.  That’s just swell of them.  Matter of fact, they are so nice the government won’t use it’s own auditors and police but it’s going to let them hire their own “independent” agency to investigate those nasty illegal procedures going on over at one of their companies.

The Fed ordered Goldman to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending in 2009 and 2010.

What a joke.  This is pathetic and I don’t know why I care and this probably won’t get any more attention until maybe a year from now when they report, oh, we forgot we we’re going to stop doing illegal and unethical things and fell back into our old habits and practices of screwing others so we could get crazy rich at your expense.  Sorry.  But we did make our quarterly donations to the ranking congressional members on the Banking, Insurance and other pertinent committees and regulatory agencies.  Whew, thank God for that.

Here’s the report:

Goldman to stop controversial mortgage practices

AP          By PALLAVI GOGOI - AP Business Writer

NEW YORK (AP) — Goldman Sachs’ mortgage subsidiary agreed Thursday to stop many of its controversial mortgage-related practices in a settlement with a New York state banking regulator.

The New York’s Department of Financial Services and Banking Department said the settlement was a condition to Goldman Sachs Group Inc.’s sale of its Litton Loan Servicing subsidiary to a mortgage company Ocwen Financial Corp.

Also on Thursday the country’s chief federal banking regulator, the Federal Reserve Board, announced a formal enforcement action against Goldman to address a pattern of misconduct and negligence in how it handled mortgage loans and foreclosures via Litton.

The Fed ordered Goldman to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending in 2009 and 2010. The Fed said the review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The Fed said it also plans to announce monetary penalties.

As part of the New York deal, the Goldman subsidiary said it will stop the practice of robo-signing mortgage paperwork. Robo-signing came to light last fall when it was revealed that the largest banks had outsourced mortgage paperwork to processing companies that, in turn, hired unqualified people to sign thousands of mortgage affidavits without reviewing loan documents. The practice is illegal. Many documents were also notarized them in a way that violates state law. The findings led to a temporary halt to most mortgage foreclosures in the fall of 2010.

Benjamin Lawsky, who took over as the Superintendent of the Department of Financial Services in May, was in charge of approving Goldman’s $264 million deal in June to sell Litton to Ocwen.

Lawsky used his approval power to address shoddy mortgage practices at Litton. The agreement does not impact other large banks and mortgage companies.

Goldman, Litton and Ocwen also agreed to withdraw pending foreclosures if affidavits were robo-signed or inaccurate. The settlement requires the company to either return property that was wrongfully sold back to the original borrowers or provide compensation.

Under Thursday’s settlement, Lawsky received a commitment from Goldman Sachs to help troubled homeowners by writing down $53 million in unpaid principal of home mortgages.

The deal also prevents Litton or Ocwen from adding late fees and other servicer fees that make it more difficult for delinquent borrowers to pay back what they owe.

The agreement doesn’t preclude future investigations of past practices or release any future claims.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: