Some people are just coming to the realization that the credit industry has been sloppy and taking shortcuts in their zeal to make as much as money as quickly as they can. Max discovered this years ago and has been teaching consumer lawyers about mortgage securitization and servicing process in his boot camps and his recently concluded special session. In response to a recent discussion between consumer lawyers regarding the recently exposed problem of GMAC/Ally affidavits, Max had the following to say:
“It has always been my hope that we can expose enough problems with the business models created by the mortgage creditors that eventually they will have to go to the Congress for some type of legislative fix. This will give our side the political leverage to get something back in exchange for the fix that really and truly allows consumers to permanently modify mortgage loans to sustainable levels. And, I am not talking about just a change in Chapter 13 to allow for the modification of first mortgage loans. I think such a change in Chapter 134 would create more legal leverage to force voluntary modifications but it would only be part of the solution.
The truth of the matter is just as it was during the Great Depression that Congress must enact some major remedial national legislation to fix these massive and seeming unsolvable problems. If Congress fails to act, then we will all lose and the next recessission will make this one look like a walk in the park. I have been engaged in litigation with mortgage servicers for more than 30 years in the bankuptcy courts and over all these years I have seen no real change in the way they do business. In fact, the more legal pressure we apply the more egregious practices we see. I have trained over 1,000 lawyers and they in turn have trained thousands more but at the end of the day we are but small road bumps on the mortgage servicer’s Interstate 88. We are going to have to take out a few of the major interchanges on this highway in order to get a political solution in Washington. The courts will never be able to solve these systemic problems and at times I feel like we are the last tribe of true American Indians fighting those computerized birds in the sky knows as ‘the drones.’ Now, don’t read this wrong, because I have no intention of giving in or giving up. Nonethless, we must all come to the conclusion that the problems are bigger than we can fix alone, together, in class actions or otherwise. We need a real leader in Washington who will take charge and remove all of the money changers from our Capital up on the hill.”