This doesn't fill me with trust that the article's other examples of misconduct are reported honestly.
This doesn't fill me with trust that the article's other examples of misconduct are reported honestly.
>>> Warren has been fighting Wells Fargo’s misdeeds for more than a decade, as she reminded Nevadans at the Democratic primary debate on Feb. 19, harking back to a 2008 meeting with Las Vegans who’d lost their houses in the mortgage crisis.
https://www.investopedia.com/terms/r/robo-signer.asp
https://www.marketwatch.com/story/us-breaks-down-93-bln-robo...
For those not familiar with this scandal, the banks signed false legal documents attesting to reviewing documents which in fact they had not. Real reviews would have revealed errors in some cases. Accordingly, hundreds of thousands of foreclosures were unjust. However, without adequate legal funds, homeowners could not fight the foreclosures and ended up losing homes w/o cause in many cases.
You can read more about the fraud here[1] but in short Wells Fargo (and others) wrongfully foreclosed on homes that were owned by someone who:
- was not in default. i.e., They were, in fact, paying their mortgage or in some cases had even completely paid it off.
- was entitled to protection under the Servicemembers Civil Relief Act. Most often, active duty military personnel stationed overseas.
- was entitled to foreclosure protection under federal bankruptcy laws.
- had entered into a written modification agreement with the bank and had been abiding by the terms of that agreement.
- was wrongfully denied a mortgage modification or requested a mortgage modification and received no response.
In addition, there were many cases where the institution had an obligation to engage in loss mitigation efforts with the borrower (modification, short-sale, cash-for-keys, etc.) and failed to do so.
[1] https://www.federalreserve.gov/consumerscommunities/independ...
2) Play by the rules. If the rules say you have to have a documented chain of title and transfers of ownership of deeds of trust, do it. You and I would be laughed out of court at best, arrested and charged with fraud at worst, for doing what these people did. But they, because they did it at the behest of a large bank and “who could really know any better?”, got almost completely away with document fraud. Even if someone didn’t pay, the bank had no right to foreclose if Wells couldn’t prove it owned or had the right to enforce the loans. Everybody playing by the same rules and being rewarded or punished under them is just.
The point of the robosigning scandal was that Wells Fargo (and a bunch of other banks) were often swearing in a court of law that a) Fargo owned the mortgage and b) the homeowner was in default on the mortgage when one or both of these things was not, in fact, true.
It continues today:
https://theintercept.com/2016/05/18/foreclosure-fraud-is-sup...
There is a process that is to be followed that gives the home owner a chance to explore options or simply to get through a temporary financial crisis.
In some cases they actually foreclosed on houses that did not actually have mortgages. Bet a review would have caught THAT.
Don't want to lose billions of dollars? Don't give out fraudulent loans. Is it tough to avoid incentivising your employees to commit fraud? Aw, you might need to spend some money on combating that, or be less greedy.
Foreclosure gives the value of the house to someone else. It's entirely reasonable that, before confiscating someone's life savings and throwing them on the street, a document is presented to a court that isn't a forgery.
It's not their fault that the loan got sold into a complicated system of securitisation. In fact, some of the victims didn't owe money and were foreclosed anyway!
I'd be curious how folks are getting a $12B profit from these account openings which were low / no balance in many cases
> In any case, you read with exasperation or amusement the multiple errors in a story, and then turn the page to national or international affairs, and read as if the rest of the newspaper was somehow more accurate about Palestine than the baloney you just read. You turn the page, and forget what you know.”
– Michael Crichton (1942-2008)
Why? Because it makes the false assumption that the person who wrote a flawed story also wrote every other story in the newspaper, which is both untrue and impossible. It presumes that because someone underqualified was interviewed in one article that every person interviewed in the rest of the paper was also underqualified. Again, untrue.
Worse, it doesn't understand that the editorial section is not the international section is not the comics section is not the classified ads.
It's perfectly reasonable to start each new story you read in a newspaper with a bit of amnesia. It was written by a different person in a different place in a different time. Just like if I buy a crappy video game in Target, that doesn't mean that every single video game in Target is crap.
The proposition isn't that one bad article means everything will be false forever, but that you should approach all articles with some skepticism that the author/editor knows what they're talking about. Especially when you know from past evidence that they will publish things that you know to be wrong or misinformed.
It's not much different than how folks are getting concerned about counterfeit things on Amazon. I don't think that every product on Amazon is fake, and I don't think the fakes are evenly distributed across all categories. That doesn't mean I shouldn't check most things I buy to make sure they're safe when I know that Amazon doesn't seem to care if they ship me defective or counterfeit products.
You're making a straw-man of what the Effect is trying to get at. It's not saying one bad article means every single article is fully false, or that you shouldn't trust the sports scores, or Cathy is giving you bad life advice. It's just stating that we tend to not realize that one bad article may be a sign of more intrinsic bad editorial practices at a publisher.
It's possible that reporters only get things wrong in the areas that I know and understand but it seems much more likely to me that falsehoods in articles are much more common than people realize.
At most, you should trust specific journalists who are covering topics germane to their expertise.
> Just like if I buy a crappy video game in Target, that doesn't mean that every single video game in Target is crap.
Consider video game "journalism" instead and you'll have a fair comparison.
https://en.wikipedia.org/wiki/Wachovia#Acquisition_by_Wells_...
>The acquisition of Wachovia by Wells Fargo was completed on December 31, 2008, after a government-forced sale to avoid Wachovia's failure