Legal Commentary

A Moratorium On Due Process, Cont'd

By Big Tent Democrat

Via Atrios, who cares about the rule of law?

It’s actually a bit sickening to hear defaulted borrowers describing the misdeeds of banks as “mortgage fraud.” What some banks have done might well be fraud—but the fact of that fraud doesn’t erase the other fact that the borrower agreed to make payments or face the penalty of losing her home.

"These companies that are too big to fail apparently also think they're also too big to comply with the law of the land and it's beyond outrageous," D’Amelio’s lawyer tells CNNMoney. Maybe I’ve missed something here. Can someone please explain why banks being ‘too big to fail’ should mean that D’Amelio should get to live in a house she hasn’t paid for?

Citi does not own the note on the house. Fannie Mae does. Foreclosure is a process by which the actual creditor gets to try and recover monies owed to it. Citi does not own the debt. Fannie Mae does. Citi has no right to seek to recover monies that are not owed to it. How hard is it to understand this basic point?

Speaking for me only

Full post as published by TalkLeft on October 13, 2010 (boomark / email).