Brad Miller was interviewed by Ezra Klein the other day. In the interview Miller came down on the side of Big Banks and against the people of this nation once again. First there was the $13 trillion financial bailout (PBS), now Miller is choosing to ignore law to the benefit of the banks...
-- A simplification of an earlier post...
1) The "big banks", aka securitizers, packaged home loans in groups and sold them to investors with a "warranty" embedded within the agreed upon contract.
2) With a weakening economy it became obvious that the Big Banks' product was faulty-- that there was a higher degree of risk than guaranteed to the invstors by the banks.
3) The "Big Banks" were aware that much of the needed documentation required to foreclose is AWOL. (This is the genesis of the current bank forging of foreclosure documents issue.)
4) The "Big Banks" don't want to make good on their warranty (contract) as they don't want properties that they may not be able to foreclose on. As Brad Miller said, the liabilities would be enormous.
5) The Big Banks would rather stick us with houses that we will have difficulty selling due to a poor chain of title and inability to get title insurance. Also, the banks had hoped that HR-3808 would get enacted as law and save them, but unfortunately for them, Obama vetoed the bill Friday. (It is nice to write something positive about Obama.)
Miller's response to this? "If the private investors can break through that defense and require the mortgages that don’t meet the requirements to be bought back, the liabilities for the biggest banks will be enormous."
This is not a ringing endorsement for abiding by the law as spelled out in the contract between the investors and the Big Banks. In fact, it sounds a lot like he's looking for excuses. Not forcing the banks to live up to their contract will force the problems they created onto the people of this country.
All Miller had to do was say that the Big Banks need to abide by their contract. He didn't.
Brad Miller -- Putting banks before people.
Brad Miller -- Not your parent's democrat.