Thursday, February 24, 2011

VA Loan Mess Exposed

It's bad enough that even the largest of banks have added to the mortgage mess. Now the word comes out that Wells Fargo, Wachovia, and SouthTrust caused problems on some VA Loans resulting in a settlement just announced for veterans:

It turns out this settlement was from a class action suit filed 2 years ago. So the veterans who have served our country get some money back, finally. That's the only good news out of this story.

But hold on. This raises some important questions:

1) How does the government, consisting of people we elected, let this happen? Why did the bank executives receive their millions of dollars in bonuses from the government "bailout" more than one year before veterans who have served received a settlement pittance?

2) Why is this story not all over the media? How come I found out about this via an article in the Army Times?

3) If this lawsuit was filed 2 years ago, how much did the law firm receive from this settlement or via other means? Sorry, but my hunch is that the amount they were paid took away from the pittance the veterans are getting.

4) Are you, the reader, outraged over the quote from Wells Fargo Home Mortgage Co-President Cara Heiden of “We hope that by settling this matter, we can demonstrate to veterans our steadfast commitment to doing right by them.”?

Some commitment. Two years later, a class action suit gets settled. If Wells Fargo was "commited to doing right", why did it take this LONG to pay out?

Time to say this still again. The next time the banks mess up the mortgage industry, let the government pay back the outstanding loans. Let the banks struggle for themselves. Please don't make the same mistake again. They penalized the mortgage holders and helped those who screwed them. Keep this in mind the next time you vote to elect someone to office.

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