Debunking Banks’ “Procedural Problems” Defense on the Foreclosure Crisis

The banks are doing their best to spin the news. They’d like you to think that all of their problems are “procedural and technical.” If that was the case, Max and his boot camp graduates wouldn’t be having the kind of success they’ve been having in fighting for homeowners.

Yves Smith at Naked Capitalism does another fine job of dispelling this myth the banks are trying to perpetuate.

Although we have chronicled the affidavit improprieties, we’ve kept our focus on the fact that these abuses are symptoms of much bigger, and we believe pervasive, problems with the securitizations. But in trying to give the big picture, we may have played into the bank narrative of minimizing the importance of the affidavit issue. Reader ella in comments provided a reminder:

If a witness lies in court or in an affidavit then they could be charged with perjury. Perjury is lying to the court.

The affidavit issue is being portrayed in the MSM at a paperwork problem. Lying to the court is not a paperwork problem. Attorneys are prohibited from making a material misrepresentation to the court of fact or law. Further, attorneys in most jurisdictions have an affirmative duty to report known perjury by their clients to the court. …