To: Doug Gansler, Attorney General of Maryland
Attorney General Gansler: Lead a full investigation of mortgage fraud in Maryland
Dear AG Gansler:
We are petitioning you regarding the ongoing settlement talks between state attorneys general, federal regulators, and mortgage servicers. We urge you to:
1) Reject any settlement that gives banks, mortgage servicers, or individuals immunity from investigation, appropriate prosecution, or civil liability.
2) Lead a vigorous independent investigation of wrongdoing in the banking, mortgage, and financial sectors here in Maryland.
3) Ensure that victims of mortgage fraud receive compensation based on the real harm they have suffered.
Why is this important?
The WSJ reports that a final settlement could be reached as early as the week of Dec. 18! Along with sharing this petition, please contact AG Gansler directly:
(410) 576-6300 or 1 (888) 743-0023 toll-free in Maryland
TDD: (410) 576-6372
email: [email protected]
The size and scope of the proposed "settlement":
Fraud and illegality lie at the heart of the mortgage and financial crisis. The list of questionable practices by banks and mortgage servicers is long: Risky subprime loans were issued without proper documentation or underwriting; subprime loans were "bundled" and sold to institutions in securities designed to conceal their high risk; land registry records were manipulated to avoid paying taxes.
After the crash, many mortgage servicers failed to help homeowners receive government mandated loan modifications. There have been widespread cases of fraudulent foreclosure, using unverified mortgage documents (so-called "robo-signing").
The FBI found that ‘mortgage fraud is a growing crime threat that is hurting homeowners, businesses, and the national economy.’ The FBI and other law enforcers have increased resources to address these crimes, focusing on fraud related to loan origination, mortgage loan securitization, and mortgage servicing. Multiple Federal and State investigations and lawsuits are just now beginning to connect the dots in the mortgage fraud picture.
Unfortunately, this drive for justice may be thwarted. A proposed settlement between the State attorneys general, the Federal Government, and mortgage servicers may put a halt to State investigations and prosecution in this area. It could also hinder individuals and institutions hurt by fraud from uncovering the truth and getting their day in court.
Current reports mention a $20 billion settlement pool for compensating fraud victims. If true, the amount is laughably inadequate- victims of such widespread fraud have surely lost much more than this. And, while compensation is important, so is accountability. As Representative Tammy Baldwin (WI) puts it:
"This entire tragedy reinforces the perception for average Americans that they play by one set of rules and everyone on Wall Street plays by another. While banks and other financial institutions were deemed too big to fail, they are now seen as too big to prosecute. If blanket immunity is granted to mortgage servicers their appalling behavior goes unpunished and they will continue to behave as if they are above the law. The American principle of equal justice under the law must apply to all, not just to some."
Our petition to Attorney General Gansler is simple: Investigate fully, prosecute where appropriate, and do what is possible to see that victims are compensated fairly. Any settlement that hinders these goals is no settlement at all, and should be rejected. Thanks for signing!