Confidential Federal Audits Accuse Five Biggest Mortgage Firms of Defrauding Taxpayers

So Where Are The Cops Again?

Gee, what have I been talking about for a couple of years now?

WASHINGTON — A set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans, four officials briefed on the findings told The Huffington Post.

No, really?

And if you remember, I and others have talked about FHA guaranteed loan performance not being exactly honestly reported either…..

The resulting reports read like veritable indictments of major lenders, the sources said. State officials are now wielding the documents as leverage in their ongoing talks with mortgage companies aimed at forcing the firms to agree to pay fines to resolve allegations of routine violations in their handling of foreclosures.

Oh yeah, fines.  Rip people off, pay a fine.  We’re just going to continue what we’ve been doing, right?  Make it perfectly ok – a business practice.  Commit 100 felonies, get caught committing 10 of them and say “Oh gee, I’m sorry, here have that back.”

But you get to keep the fruits of the other ninety!

Justice officials will soon meet with the largest servicers and walk them through the allegations and potential liability each of them face, the sources said.

I’ll believe it when I see filed charges.

Rather than punishing banks for misdeeds, the administration is now focused on helping troubled borrowers in the hope that it will stanch the flood of foreclosures and increase consumer confidence, officials involved in the negotiations said.

Right – breaking the law is just fine if you’re a bankster.

You know damn well the government isn’t going to do jack about this, and you also know damn well that the State AGs will kneel before the banskters rather than sue or prosecute as well.

It’s all they’d done thus far.

We’re all rendered nothing more than maids servicing these jackasses – by force – in their expensive hotel suites.

The Market-Ticker