Pelosi, 30 CA DEM lawmakers call for Foreclosure Investigation one month before Nov elections!

It’s a TARP! Pelosi, California Lawmakers Call for Foreclosure Investigation - By Daniel Foster - The Corner - National Review Online

"California Democrats in the U.S. House of Representatives are calling for federal investigations into whether financial institutions broke any laws in their handling of foreclosures in the midst of the U.S. housing crisis."

"Reports from thousands of homeowners in their congressional districts( (predominantly Dem districts i add ) show an “apparent pattern” of practices that led to foreclosures that could have been avoided, the lawmakers wrote in an October 4 letter to U.S. Attorney General Eric Holder, Federal Reserve Chairman Ben Bernanke and the U.S. Treasury Department."
(Pelosi and CA Dem legislators pitch this letter one month before Nov election day, to show their constituents that they are looking out for them, and should therefore be re-elected. Nothing will get done on loan mods but appearance is more important than reality)

"The letter was signed by House Speaker Nancy Pelosi and 30 California lawmakers."( All Dems).

“The excuses we have heard from financial institutions are simply not credible three years into this crisis. People in our districts are hurting,” the letter said. “It is time that banks are held accountable for their practices that have left too many homeowners without real help.”
( big lie: No one one put a gun to their heads and forced them to sign those RE contracts: realters and brokers are scumbags, and RE purchasers should have been more financially savvy)


"The lawmakers said thousands of people have reported that despite efforts to seek loan modifications or other relief many financial institutions “routinely fail to respond in a timely manner, misplace requested documents, and send mixed signals” about what is required to avoid foreclosures."
( This sounds fishy to me,like attempts by those about to be foreclosed to scam banks into loan forgiveness, or twist contract law on it's head)

"Of course, any minimally even-handed investigation could embarrass the Obama administration, by further laying bare the many deficiencies of its mortgage modification program. That program — HAMP — was blasted in great detail in a July report by the Special Inspector General in charge of administering TARP. The picture painted was of an opaque, unaccountable, and aimless program that put no real dent in foreclosures and subsidize economic activity that would have occurred anyway."
(Obama and his economic team are bribed and compromised by the big banks and wall street, so no accounting possible)

COMMENT; High Foreclosure rates and the attendant blight it leaves in neighborhoods is a big, big problem In California but it is almost 100% due to CA meteoric rise in housing prices in 2003-2007, and folks financial stupidity in paying housing bubble prices without doing due diligence. You sign a RE contract and stupidly overpay for housing, that's your problem. I am against Fed doing mortgage modifications in principal, because it basically rewards financial stupidity and even scamming homebuyers, who may have taken out big helocs for fancy vacations and then turn around and bitch over banks reluctance to grant loan mods.