"When I pay it off, what will I have, [is] the most famous broken chain of title in the country."--Lynn Szymoniak.
"The millions facing foreclosure [are] not facing foreclosure just because of individual actions."--Malcolm Chu
This was a Netroots Nation panel held "in a room with no streaming, and President Obama is holding a press conference to conflict with it." Marci Wheeler's rush transcript (liveblog) shows possibly the best overview of the homeownership disaster I've seen.
David Dayen kicked off the panel with a catalog of types of housing fraud:
- Origination fraud (liar loans, discriminatory, paper fraud)
- Appraisal fraud. Then
- Securitization fraud, failure to convey the mortgages to the trust properly.
- Investor fraud, putting bad mortgages into packages willingly, and not telling the investors.
- MERS, which is a giant tax avoidance scheme.
- Servicer fraud—fee pyramiding. HUD did test of 35 loans from, of the 35 actual price of mortgage could not be verified on 34.
- Force place insurance fraud. Servicer buys at a huge price and make mortgage holder pay for it.
- Foreclosure mill.
- Breaking and entering.