(Taibbi 2010) Invasion of the home snatchers


Taibbi, Matt. Invasion of the home snatchers: how the courts are helping bankers screw over homeowners and get away with fraud. Rolling Stone. 2010 Nov 25; 1118:66–73. Internet version: 2010 Nov 10. Available from: http://www.rollingstone.com/politics/news/17390/232611.

Taibbi reports on his observation of a “rocket docket” court instituted in Florida for very rapid disposition of foreclosure cases. Judge A. C. Soud had stated that he aimed for a resolution rate of 25 cases per hour. Taibbi documents outrageous bias in favor of the foreclosing plaintiffs, as well as flagrant violations of due process, including harassment of defendants and their attorneys by Judge Soud for communicating with Taibbi and bringing him into the courtroom to observe the proceedings. Taibbi also explains why missing or fraudulent paperwork has been so common in recent foreclosure cases. It is not a matter of carelessness. Instead, the foreclosed mortgages have been packaged into mortgage-backed securities (and larger units such as REMICs) and misrepresented to buyers, with the connivance of securities rating agencies, as far less risky than they actually were. In order to cover up this fraud, accurate records were almost never kept, and in some cases mortgage notes were deliberately shredded.

 


REMIC   Real Estate Mortgage Investment Conduit

 

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Last revision: April 5, 2013