JPMorgan, Bank of America Face ‘Hydra’ of Foreclosure Probes

Oct. 6 (Bloomberg) -- JPMorgan Chase & Co., Bank of America Corp. and Ally Financial Inc., defending allegations of fraudulent home foreclosures from customers and Congress, may face the most financial peril from investigations by state attorneys general.

Authorities in at least seven states are probing whether lenders used false documents and signatures to justify hundreds of thousands of foreclosures, and the number of these inquiries will grow, according to state officials and legal experts.

“You’re going to see a tremendous amount of activity with all the AGs in the U.S.,” Ohio Attorney General Richard Cordray said in an interview. “We have a high degree of skepticism that the corners that were cut are truly legal.”

JPMorgan, Bank of America and Ally have curtailed foreclosures or evictions in 23 states where courts have jurisdiction over home seizures.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=anWPlsOsuc78&pos=4

 

It's a wet dream for the legal profession.
Write a good law -make money.
Write a bad law -double your money.

 

Out of Control LISTEN TO THIS TERRIFYING 911 CALL of Thugs Hired by JPMorgan Chase Breaking Down a Door

http://www.zerohedge.com/article/ou...edium=feed&utm_campaign=Feed:+zerohedge/feed+(zero+hedge+-+on+a+long+enough+timeline,+the+survival+rate+for+everyone+drops+to+zero)

 

Bunch of bs, some lender breaks into my home they are getting blasted with my shotgun.

 

He would have been shot dead in my place. Thank god that we have the Castle Doctrine.

 

It looks interesting and has to potential to be big deal (and is imo), although I'm skeptical of how much this will affect prices.

My question would be how do you play this - does JPM become a short or do you just avoid going long. If it's a short do you play it against the financial sector, another bank, the SP as a whole? Over what period of time does it take to fully incorporate this info?

The other factors to consider are how intent the gov. is on pursuing sanctions - Ally for one is essentially a gov. institution. Does that help or hurt JPM?

In the end I think this ends up as a slap on the wrist and has a negligible effect on these institutions.

 

See how fucked our system is....

False documents to push more foreclosures into the system, this story has more breaking news ahead of it.


Authorities in at least seven states are probing whether lenders used false documents and signatures to justify hundreds of thousands of foreclosures, and the number of these inquiries will grow, according to state officials and legal experts.

 

Why is it so difficult to foreclose? If you have not paid your home mortgage for a year, the bank should have the right to instantly take possession of the home.

Technically the home does not belong to you until your obligations are complete.

 

I agree.

The banks whom I am no fan of, apparently have committed fraud here...actually the real fraud was in the setting up of the various invetsment vehicles based upon fraudulent mortgages.

That notwithstandng, why should someone who knowingly bought a house he/she can't afford now enjoy possession of the house due to technicalities?

 

What is going to be interesting is how many years will people live rent free.

This mess could easily turn the foreclosure process into a 10 year process with millions of Americans living rent free for 10 years.

Think Bleak House (Dickens novel) and the whole Jarndyce and Jarndyce going on for years and years and years.





"Jarndyce and Jarndyce drones on. This scarecrow of a suit has, in course of time, become so complicated that no man alive knows what it means. The parties to it understand it least, but it has been observed that no two Chancery lawyers can talk about it for five minutes without coming to a total disagreement as to all the premises. Innumerable children have been born into the cause; innumerable old people have died out of it. Scores of persons have deliriously found themselves made parties in Jarndyce and Jarndyce without knowing how or why; whole families have inherited legendary hatreds with the suit. The little plaintiff or defendant who was promised a new rocking-horse when Jarndyce and Jarndyce should be settled has grown up, possessed himself of a real horse, and trotted away into the other world. Fair wards of court have faded into mothers and grandmothers; a long procession of Chancellors has come in and gone out; the legion of bills in the suit have been transformed into mere bills of mortality; there are not three Jarndyces left upon the earth perhaps since old Tom Jarndyce in despair blew his brains out at a coffee-house in Chancery Lane; but Jarndyce and Jarndyce still drags its dreary length before the court, perennially hopeless."