"Fraud Upon the Courts?" Insurance Crisis Result of False Swearing.

   Third in a series:

This post continues from posts which began on Sunday, October 31, 2010  and continued on Monday, November 1, 2010.

   Some people have a right to swear falsely and submit false Affidavits, if we let them.  But they have no right to call their False Swearing the Truth.

   There are so many Foreclosure Lawsuits that the sheer number of them overwhelmed the abilities of the people and organizations responsible for filing them.  There is a current Crisis in False Swearing as a result.  Affidavits have apparently been filed in many Foreclosure Lawsuits in an effort to obtain Summary Judgments without Trial, because many Plaintiffs cannot prove their Foreclosure Cases if they have to go to Trial.  "The foreclosure machinery that has forced millions of Americans out of their homes is beginning to seize up as some lenders and their lawyers are accused of cutting corners in their pursuit of rapid home repossessions."  David Streitfeld, "Document Flaws Have Put Brakes on Foreclosures/Focus on Cut Corners" p. A1, col. 6 (New York Times Nat'l ed., Friday, October 1, 2010).

   The effects have been felt by Title Insurance Companies, for example, which have refused to issue Title Insurance to cover title to properties foreclosed on by certain mortgage servicers and lenders who are suspected of filing false Affidavits in Foreclosure Lawsuits.  See id.  As one report put it:

   The missteps stemmed from the affidavits the lenders file as they seek a quick or summary judgment in thousands of foreclosure cases.  The affidavits state certain facts about the case, including the amount owed, which the signer indicates [actually, testifies] he has personal knowledge of.  Without the affidavit, the lender would have to prove the facts at trial.

Id.

REMEDIES FOR THE FALSE FORECLOSURE AFFIDAVITS "CRISIS".

   First, there is no "crisis" at all. There are apparently some litigious Foreclosure Plaintiffs who are willing to lie under oath in order to make money.

   So what is new?  "'The whole essence of this crisis is fraud and unless we restore the rule of law and transparency of disclosure, we are not going to fix this.'"  Professor Laurence J. Kotlikoff, quoted by Gretchen Morgenson, "Fair Game/One Mess That Can't Be Papered Over" p. 1, col. 2 (New York Times Nat'l ed., "SundayBusiness" Section, Sunday, October 24, 2010).

   This is not the first time that people may have lied under oath.  If it can be proved that they did, they are subject to the same consequences as any other person previously proven to have lied under oath.  See Gretchen Morgenson, "Banks' Flawed Paperwork Throws Some Foreclosures Into Chaos" p. A1, col. 3 (New York Times Nat'l ed., Monday, October 4, 2010), quoting Linda M. Tirelli, Esquire:  "'This is not about getting a free house for my client.  It's about getting a level playing field.  If I submitted false documents like this to the court, I'd have my license handed to me.'"

   Fifty (50) State Attorneys General are jointly investigating whether the False-Swearing-Affidavits-in-Foreclosures procedure is an unfair and deceptive trade practice by Lenders and Mortgage Servicers in their States' Courts.  If this business practice exists of backing up Foreclosure Cases with false testimony, they vow to take appropriate action to prevent it.  See National Association of Attorneys General Press Release, "50 States Sign Mortgage Foreclosure Joint Statement," October 13, 2010.  Parenthetically, the Federal-State prosecutor relationship is reportedly frayed past the point of forbearance due to the Feds favoring the Banks.  See Joe Nocera, "Talking Business/The States Take on Foreclosures" (New York Times Online Friday, October 29, 2010).

PREVIOUS FEDERAL RESPONSES TO FORGIVE THE FRAUD; DEAD ON ARRIVAL. 

   A Congressman from Texas has reportedly introduced a bill in  many past Sessions of Congress, without success until this year, which would require all States and the District of Columbia to accept Affidavits at the lowest common denominator favored by any one State, which could theoretically include no oath, no personal knowledge, no notary, and so on.  The Bill, as noted, passed Congress this year.  President Obama vetoed it by refusing to sign it while Congress was in recess, a process called a "pocket veto".  See Jackie Calmes and David Streitfeld, "Obama Will Veto Notary Bill That Could Speed Foreclosures" p. B1, col. 1 (New York Times Nat'l ed., "Business Day" Section, Friday, October 8, 2010).

More About Suggestions for a "Fix" For Foreclosure False Swearing "Crisis" to Come, and More to Come on the Insurance Crisis that REALLY is the result of the False Foreclosure Swearing ....

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Comments

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When will the media and prosecutors start STOMPING on this stuff?