"Foreclosuregate," as it's been dubbed, is a complex mess of a problem. You've got "robo signers," the mortgage servicing employees who scrawled their signatures on hundreds of thousands of crucial legal filings without knowing what they said (violating federal rules), and "foreclosure mills," the full-steam-ahead law firms that cut corners and allegedly broke the law in foreclosing on homeowners quick and dirty (and are now facing multiple investigations). There's trusts and mortgage-backed securities and securitization itself. The list goes on and on.
But if you're looking for a quick, 30-second take on why Foreclosuregate matters, want to know what's at stake with this deception of the legal process and the questions surrounding millions of foreclosures nationwide, watch the clip below. It features Damon Silvers, policy director at the AFL-CIO and member of the Congressional Oversight Panel, a bailout watchdog, giving as succinct a take on the foreclosure mess as I've heard.
(H/T Karl Denninger)