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All right well may -- We wouldn't be in the mortgage and that's -- if we've got after the folks writing those mortgages might soon in my next stats say that lenders knew full well they were duping their customers and having them sign on the loans.
They could -- hope today and not Republican Florida attorney general Bill McCollum.
And democratic Massachusetts Attorney General Martha Coakley are cracking the legal legal with.
General's good to have both of you -- thank you very much for coming.
Thank you ms.
Coakley the -- were welcome but does have -- bear any responsibility here he might have been -- by and it's scrupulously under.
On but you know he signs in the bottom line.
Well there's that issue but in the scheme of this whole thing and I emphasize scheme.
They're too many instances we've seen where.
-- is encouraged.
Conspired with overlooked in just absolutely failed to monitor that.
You know incomes were inflated or that I'm properties warm -- properly and so.
I'm sure we've all acknowledge there are people who got loans they shouldn't have but it seems that it's not a useful place to focus on right now at least in terms of getting at this problem and there are you know we're we're not looking at people who intentionally or otherwise.
Tried to get.
Loans that somebody up the line the lenders days does the attorneys -- -- at the closing told -- they were entitled to.
-- -- well you know the reason why -- suited gentlemen comments that you know now we have a situation where a lot of folks we found in retrospect.
Did sign on to mortgages.
And purchasing homes they knew full well they could never afford.
And it was part of this real estate was increasing.
-- down the road I can refinance or sell my home or keep moving the bubble.
And you have the lenders should have known it probably did now it but the borrowers knew it and probably -- -- -- We'll -- there are obviously a lot of them did know what should've known better on their own.
And if they did it intentionally put in the wrong amount of income or whatever then and that particular case they they committed fraud but country -- a perfect example of that.
Florida's one of three states we sued countrywide which of course was acquired by bank of American and ultimately settle -- The reason we sued -- was because we found a pattern of practice in Florida and across the country overwhelmingly.
There are putting people in the mortgages they knew they should have been putting them into.
They did not verify that kind of -- comes to these people were alleging they were making they were trying to get them in there and a mill in order to put them in the package.
Is as though they were just Roger got -- assistants like just what I'm asking.
That's right -- -- and and and -- -- -- -- -- you can help -- with us.
But what are you trying to get out of these companies have that the country wedding would try to look.
Where where is this going are we trying to drive them out of business.
Your counterpart just said you know obviously country -- scooped up by Bank of America will wedding what he wanted to do to these scum well there's it.
-- a couple of things we're trying to accomplish for instance we have suits against two companies now.
In Massachusetts and one of the things are trying to do is freeze those mortgages to see if they can be modified key people in their homes keep that.
You know get the loans so that it's affordable.
And we in fact have a judge in Massachusetts who found that those loans were destined to fail they were sold knowing that.
The individuals couldn't make the loans while they told individuals they could.
But isn't it well now that a judge potentially man could be in the position of reworking contracts.
That were made by a green party's.
Well except that the lowlands were unfair and deceptive that is they were.
A boy weighed against public policy they were invalid that's the theory in which we have looked at these.
That they were structured in a way that the lender -- -- had to know that it was not a fair contract.
Here's what I -- -- Ed Ed and I admire what you both tried to do to try to clear that -- -- -- we don't have this but.
It's a slippery slope right Ed -- those -- comments I wanna raise review I mean it in aren't you afraid here.
That other people who didn't.
Take out these type -- loans and go the sub prime route or sign on some mortgages they knew they could ill afford.
Are in up that going to be subsidizing or helping or legally allowing.
Friends and neighbors who did just that.
To do just that.
Not in the case of what we've done with country -- that settlement was designed to help the people who were involved countrywide and Bank of America now is paying out quite a bit.
To make some of those folks whole order renegotiate their their loans were we could.
Even notice or even you know I I know I pound is even now those folks are not totally.
Well that's correct but there -- private enterprises doing this -- let me tell you what else those -- have our focus now -- -- -- a country right most of our -- our efforts right now -- mortgage fraud task force.
Our state -- prosecution of mortgage fraud is focused on mortgage rescue fraud scams that are going on out there.
That are running out our ears and for -- over 35 cases under investigation a bunch of lawsuits.
On people who are doing things right now not just the people in the past to scam people in debt.
All kinds of stuff -- results of this so we have our hands full doing this -- and I'm not very worried right now that we're making any.
-- hole we shouldn't be making -- -- we did our real vertically up the mess I apologize to ms.
Coakley real -- running out of time.
Are you afraid then.
With the best of intentions what you could be doing is putting -- -- on future lending because.
Any lender is going to say the better part of valor is not to lend at all.
No I think we've set new regulations in Massachusetts that are commercially reasonable.
This is such a mess that we have no playbook for this I think we have to get out of that and going forward I think we'll look at ways to prevent it in the future but.
We need to solve the mortgage mess general Coakley and don't -- thank you both server thank you thank you.
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