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Is it the right step to halt foreclosures?

Connecticut Attorney General Richard Blumenthal has ordered a moratorium on all foreclosures by all banks for 60 days. It is the latest and most radical action in a series of foreclosure freezes set in motion by the revelation that thousands of mortgage documents serviced by Ally Financial were mishandled.

By Jodi Westrick  |  October 1, 2010; 4:41 PM ET  | Category:  National Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati  
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Absolutely!

Many mortgage originators were just inside the legal limits in pushing their predatory mortgages.

I also learned recently that in many cases where mortgages were covered by insurance that the insurance companies are finding fraud in the mortgage origination and are forcing the originators to take back the mortgages.

The mortgage origination process was slipshod in many cases with fraud and other shenanigans on the part of the originators. Many of the borrowers could have qualified for prudent, safe mortgages but were pushed into predatory mortgages by bonus-incentivized salespeople.

We are now seeing that the forclosure process is just as slipshod as the origination process was, with fraud, perjury, misrepresentation, and other shenanigans happening. Allowing home mortgages to be included in personal bankruptcy was blocked in Congress by lobbying from the mortgage industry. Forcing the mortgage servicers to strictly comply with the law in processing foreclosures begins to give the mortgage industry predators some of the justice they deserve.

Posted by: StanKlein | October 1, 2010 9:26 PM

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