As the foreclosure mess continues to lead headlines around the country, some Wall Street bankers are playing an offensive defense, blaming homeowners for their problems:
The building furor over whether the largest U.S. mortgage lenders used so-called robo-signers and incomplete paperwork to force delinquent borrowers from their homes has mushroomed into a probe by the attorneys general in all 50 states, with U.S. Congressional hearings not far behind.
Those on Wall Street, however, are largely unsympathetic, insisting that possible errors in the foreclosure process are beside the point, that the process begins only when a borrower starts missing mortgage payments.
“If you didn’t pay your mortgage, you shouldn’t be in your house. Period. People are getting upset about something that’s just procedural.” said Walter Todd, portfolio manager at Greenwood Capital Associates.
Some said the issue is one of personal responsibility for one’s own debts.
“Everyone’s responsible for following the law. If we all don’t have to pay our mortgage, should we just stop paying taxes, too?” said Anton Schutz, president of Mendon Capital Advisers. “Your mortgage didn’t get to a robo-signer by accident, it’s because you’re not paying.”
Source: Reuters
While banks make a strong point about home buyers holding up their end of the deal because of contractual obligations to which they agreed, it seems that both parties involved have failed to uphold the law. The banks have failed to follow guidelines set forth in how mortgages should be transferred, as well as procedural and legal due process during the eviction process.
The home buyer may have failed to pay their mortgage, but two wrongs don’t make a right. The home buyer’s failure to meet their contractual obligation does not give a bank or mortgage service company the right to fraudulently sign paperwork using “robosigners” and, in some cases, actually forging documents and notes.
