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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  Yes, the wronged homeowner can still take on the (5+ / 0-)

    banking entities that the government just rolled over for and sue them on their own if they really want an equitable compensation for the crimes they were subjected to.

    Yes, you are right, that is still an option.

    They and their now government funded Legal Aid attorney can take on the industry and attempt to do a better job than the entire Justice Department and all the State AGs.

    Very comforting.

    “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

    by Phoebe Loosinhouse on Fri Feb 10, 2012 at 05:12:21 AM PST

    [ Parent ]

    •  But the AGs (6+ / 0-)

      will still be investigating wrongdoing, which could be used in a criminal case or in a class action suit.
      This isn't the end of this for homeowners by a long shot.

      If you can separate sex from procreation, you have given women the ability to participate in society on an equal basis with men. -Gloria Feldt

      by skohayes on Fri Feb 10, 2012 at 05:21:53 AM PST

      [ Parent ]

      •  Yes, but THIS was the signature 16 month long (3+ / 0-)
        Recommended by:
        mightymouse, cslewis, semiot

        investigation that wasn't an investigation that was supposed to definitively address the issues of robosigning and foreclosure fraud.

        THIS was the where the combined force and weight of the Justice Department and all the AGs together were supposed to prove to the banks and the homeowners and the taxpayers that yes, justice would prevail and the miscreants would be punished.

        Only it didn't and they weren't.

        So why is a stand alone state investigation supposed to yield better results?

        “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

        by Phoebe Loosinhouse on Fri Feb 10, 2012 at 05:35:19 AM PST

        [ Parent ]

        •  There were about 6 or 7 states (2+ / 0-)
          Recommended by:
          etherealfire, PsychoSavannah

          that had their own investigations going on. Now there will be a federal task force with several states AG and the power of the federal government behind them.
          There will also be criminal investigations going on, and one bank has already been criminally prosecuted:

          The criminal prosecution was one of the first to target those who sold complex investments called collateralized debt obligations that were based on the valuations of mortgages. The securities - baskets of mortgage bonds - have been blamed by some for contributing to the housing bubble and its spectacular collapse.
          The probe - which focuses on activities in 2007 and 2008 - centers on exaggerations that brokers made about the value of subprime mortgage securities. Authorities say brokers enticed investors to pour money into the securities market for subprime mortgages by making the market sound healthy.

          Read more here: http://www.sanluisobispo.com/...

          If you can separate sex from procreation, you have given women the ability to participate in society on an equal basis with men. -Gloria Feldt

          by skohayes on Fri Feb 10, 2012 at 06:46:32 AM PST

          [ Parent ]

    •  But isn't that the difference btwn indiv and class (0+ / 0-)

      I'm not a lawyer, but I thought that was part of it too.  There will be individuals who have strong cases but there were many others that did not, that probably, sadly, would have gone into foreclosure anyway.

      Am I wrong on that? Really am trying to understand.

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