we gotta crack down on the crooked banks.
These should be criminal violations w/ serious jail time. I see this as worse than being mugged on the street.

The online foreclosure database company reports this morning that 635,159 foreclosure filings were served on 446,726 actual properties during those three months when the mortgage meltdown really kicked off.

For the same period last year, 223,363 homes received a foreclosure notice.

Wait, 223,363 * 2 = 446,726. The number of homes is exactly double? Is there a link to that RealtyTrac info?

What is going on in our country! Its all about greed anymore and money..money..money. The american people are getting screwed every day by big business. When is this going to stop. Its time the american people open their eyes to what is happening in America! The rich are getting richer and the middle class is shrinking to the point where you will have two classes of people AND this is what the republicans want, the rich and the poor!This is not the country I grew up in this is a disgrace to America!

Relax....the economy is booming !! [sarcasm]

This story does NOT surprise me. I worked as a senior credit risk officer at Washington Mutual from 2003--2006. I turned in a negative audit report on a sub-prime lender the Bank was financing, and wes fired for doing so.

So much for the the govt watchdog agency that watch over banks or is it the Federal Reserve's responsibility. This administration is willing to overlook anything that the powerful banks do. So what if it makes some people poorer. Somebody is asleep at the helm - but nothing new since Bush's cabinet are all asleep when it comes to helping Americans. Lots of tumbleweed rollin down Main Street these days.

I used to work for a tiny division of First American -- one that creates mortgage processing IT for lenders. When we considered going after WaMU's business, our CEO warned us away from it because, "They'll ask you to promise them stuff that's borderline illegal." I guess he was right, except for the "borderline" part!

I am also so sick and tired of big business sucking the middle class and the poor dry. To get an actual person on the phone to tell you your bank balance (First Convenience of Texas), costs you $3. To pay your wireless AT&T bill at a facility not having a kiosk, the charge (to pay your bill mind you) costs $4 extra. If you pay your electric or water bill a day late (mind you, not at the point of disconnection) costs and EXTRA $5. When is all this going to end? This is rediculous! Everytime I turn around, some fat cat has his hand clamped around my wallet. At the same time, these two faced, lying Republicans allow industry after industry screw us while asking us to spend our disposable income on luxuries to keep the economy going. It makes me want to seek the office of the presidency to help put an end to all this madness. We citizens need to step up and make it fair for all of us who have to work everyday just to keep the lights on. Oh don't forget the toll money you need to get to that job. That's also going up!

Nice - my house was one of those that got hit with foreclosure. I spent my time going to court to fight it - especially because WaMu went against the arrangement we made so I could keep my house. I ended up having to sell it. And to make it even worse - even tho I sold my house and paid off the load IN FULL - it is now on my credit record where it will stay for 10 years - continuing to cost me $ due to hurting my credit rating. Thanks - thanks alot! So what is the Govt going to do about it?

Good catch Dave, it really seems odd that the number of foreclosures is double what is was a year ago. Not close to being double, but double to the last digit. I would like to see a link on that too.

I see a lot of comments about the Republicans but in one of the recent articles concerning this, it was mentioned that the "sleep at the helm" was mostly during Clintons reign.

What is the payoff of these lenders to actually foreclose on a customer? They get the house back - to auction at lesser value than the loan - the comple satisfaction of ruining a family's morale and credit - WHAT is the dollar incentive for them? Just because a loan CAN readjust, does not mean it MUST adjust higher. My lender won't even speak to me until I miss 2 payments; I have missed none so I can't arrange to keep from heading into this mess before it happenes. Greedy and stupid on thier part and totally demoralizing and crushing fur us, the concumer.

I applaud Cuomo. However he has a lot more work to do. This type of fraud was not unique to subprime mortgages. They did it on all mortgages when the needed a higher valuation on the subject propety.

I do not blame the appraisers. They are just a cog in the wheel. Andrew Cuomo needs to clean up the entire mortgage industry and mortgage process. It is riddled with fraud.

When it comes to all the many foreclosures going on in this country, why is it that everyone is talking just about the corrupt banks and loan companies? It seems that no one is addressing the real issue. Aren't the people who bought the homes responsible for making poor decisions as well? Why did they borrow more money than what they could afford? Did they take their time to do a good market comparison to find out that the homes they were buying were overpriced for the area? Could it be that these buyers were greedy too, and possibly coveting what their friends or relatives have? Were the lenders standing there twisting their arms forcing them to borrow that much money? Maybe they should have saved up for a larger downpayment first, and chose less expensive & smaller homes? Then they wouldn't be "upside down" in their mortgages. Does anyone ever guarantee that the stock market will never drop? Why would home buyers assume that the real estate market is immune to such a decline? I don't work for any bank or loan company, but common sense tells me the buyers need to be more responsible for their bad decision making as well! Let's quit acting like all the "poor" homebuyers are the victims and are so innocent! This is not an excuse for the corrupt lending institution's procedures, but a truthful analysis of the overwhelming problem in our country.

WAMU vs USBank, they both are sucking a lot of money out of Americans earmings.

We left U.S. Bank partly because of exhorbant fees on a personal checking account. We cancelled a U.S. Bank Visa with average monthly charges over a thousand a month of which their take is three percent, that is a very big amount of money going to banks for using their plastic, its in the billions. We canceled two US Bank business accounts and had to park a sum of money somewhere else from a sale of investment properties. We went to a daily account from a brokerage, so far that was a veryn good decision.

The final straw with USBank was when they refused to deposit a third party check into a rental account from a tenent.

USBank lost quite a bit of business because of the change in third party check policy. I tell every one I can.

WAMU claimed they would take third party checks from tenents. They did not. We went to a bank with all those accounts that toes take third party checks, this without the screw the customer fees and stupid rules.

I have one of those WAMU mortgages - and this thing surprised me - thankfully I can still afford my mortgage and home equity line loan, but I think I better sell the house before it gets worse. I feel sorry for those people who have had their equity inflated to the point that they can't pay back the loans. The Republicans "tickle down" theory doesn't work - Big Business will not take care of the little guy they just rape those that can least afford to pay. Bush will have to be out of office before things get any better for the middle class.

Never knew a Bank that didn't try and screw their customers everytime the got a chance. Thirty dollars for a bounced check fee, outrageous, even if you are 10 cents short! But they take their fee out first.

Your house got hit with foreclosure? Like a giant foreclosure storm occured and due to bad luck your house got wacked? Houses do not get foreclosed. People get foreclosed. Obviously something happened to your ability to pay monthly. I'm assuming your mortgage reset at a higher interest rate. Now about interest rates. We just came off of a period of record low mortgage rates. I refinanced awhile back at 4.5% fixed. Why in the name of all that's holy would a person get an adjustable rate mortgage? Could it be they were trying to get the absolute highest mortgage on the absolute biggest, most expensive home they could swing? And then possibly set back and watch it appreciate and flip it for a windfall? Your home is not a poker table at Vegas. Successful people hedge their liabilities and do not take them to the limit. OK so you took this adjustable rate mortgage and do not feel the bank has a moral right to raise the interest rate. Where do you think the teaser rate comes from? Why would anyone loan at less that the standard interest rate? You should expect that it will be made up during the higher rate. So your credit is ruined. Duck your head down and push forward and you'll recover. As to what will the government do about it? Just what the H3LL do you expect the government to do about it? I'm assuming you're old enough to enter into a contract and able to read. I'd respect you much more if you just ran around yelling Help me, Help me, I'm stupid. Put on your big girl panties and act like an adult.

It is always about money, it will always be about money...

Until...

"The Grapes Of Wrath" comes around again...

Then let's see who's left standing

I said this very same thing over a year ago. That homes were being appraised at inflated values. That buying a home today is like buying a new car. The moment you sign your name on the dotted line and drive the car off the lot, the car has already depreciated in value.

Come on now it's not like WAMU forced people to buy houses for more than market value they simply provided the loans for stupid people that wanted to pay to much for a house. The buyers of these houses were and are just as greedy as any bank and now both are being punished in the marketpplace, as they should.

The real fraud here is the selling of these knowingly bad loans to investors...

Contrary to Colleen - I do blame the appraisers and I have been one for over 20 years. WAMU would not assign me any business because I would not "push" their values ... too many appraisers are corupt and greedy just like banks, mortgage brokers, and, the buyers themselves as appropriately noted by Mike.

I bought a house before the crash - and now am stuck with an over valued house with a bunch of foreclosures hanging around keeping house rates low. The home inspector didnt find many things that we are now dealing with and should be held accountable - as well as these other companies. Likely I will lose money - the banks will keep the money they made and the government will slap them on the wrist - and the machine will continue to take it out on hard working Americans

It seems like America has become a nation of greed. There is nothing wrong with gaining wealth but how about accomplishing it by doing something useful. Sitting on your butts while your house appreciates to unsustainable levels and then crying and blaming others when reality sets shouldn't garner any sympathy from anyone.

Congress could do more on this but they seem to be too busy in planning their four day work week next year and the fifth workday partying with Lobbists from the Banking Industry. Everyone should know that if they vote in an incumbent chances are that person has some Lobbists they are affiliated with. Many promises are made by these Politicians behind the publics back.

If you have a WAMU mortgage from 2005-2007, pull out your appraisal. If you feel it was over-valued contact an attorney. They should be circling about now from this sub-prime fall out. Not reading the small print and being mislead by a fraudulent appraisal that the bank coerced are two different things. STand up and Fight back.

Enough with trying to blame this all on Republicans. I've been a real estate appraiser for 17 years, and can tell you that pressure from lenders to inflate values so that they can make their loans goes back way before the current administration. The practice of finding and using only appraisers who will "hit the number" that will allow the loan to close, regardless of actual value is rampant. It's so bad that it's difficult for many honest appraisers to stay in business, because if they fail to "hit the number", they won't get any more business from many mortgage brokers. It's a matter of greed from the mortgage broker/lender side, and a matter of survival for many appraisers who cave in to the pressure in order to keep food on the table.

I was a real estate agent for three years and fought to no avail to stop these fraudulent appraisals. Homeowners need to pull out those appraisals and contact an attorney. These appraisers need to be held responsible--they are just as bad as the banks pushing the ARMs! And if you're buying, demand the appraiser not see the price on the purchase agreement. They are there to do an independent appraisal, not hit a number. If they can't do an appraisal without a pre-set number, they shouldn't be doing appraisals in the first place.

Some of you people really amaze me! This has nothing to do with Republicians or Democrats! It has to do with GREEDY AMERICANS! YES, GREEDY! Greedy people who don't have proper credit, and the good sense to buy within their budget, go to Greedy WAMU and apply for a loan and get QUALIFIED for an price-inflated house that Greedy e-AppraiseIT pumped up in value, and Greedy First American Title gets to charge over-inflated prices on title and escrow! It's not about Bush or Clinton it's about Greed Monsters from all sides wanting MORE! Now the truth is coming out about how these Greed Monsters broke the law and caused this real estate mess!

Don't gamble what you can't afford to lose, don't bite off more than you can chew, and do not borrow more then you can pay back. Know the rules of the game before you play, and then expect all parties to follow them.

To Sherry's comment above that it's all the homebuyers fault, there's one big difference that she overlooks. Overextending themselves was not illegal. What the bank, title company, and appraisal company are alleged to have done probably is illegal.

I find it hard to believe that a company doing 50,000 apprsaisals a month would need to cave in to anybody.Washington Mutual forced Anthony Merlo to risk his entire national company to commit bank fraud and he said yes? He has to be very greedy and shouldn't have been in the position to make decisions. I can't even believe his excuse. It is absolutely ridiculous.
I am a loan consultant at Washington Mutual. We have no contact with the appraiser at all. We don't order the appraisal and we don't pick the appraisal company. An opener orders the appraisal. The opener is a person in another state that the loan consultant doesn't have contact with. Why would a clerk in a bank ask an appraisal company to inflate an appraisal. They don't even understand that part of the loan process, the opener would for sure lose their job if they did that.The only person who has immediate contact with the appraiser is the homeowner It would be not in Washington Mutual's best interest to inflate an appriasal. They need to have collateral to lend mortgage money. Inflated colllateral(home appraisals) would hurt Washington Mutual. Prior to working with Washington Mutual I worked in other mortgage banks. I did order my own appraisal. I worked with small appraisal companies. There is no way these small companies would inflate an appraisal.Risk losing there licenses for one loan consultant for one appraisal order. These are companies that maybe do 20 appraisals a month. I found it hard to believe that Anthony Merlo can even say he caved to the pressure of Wamu. I don't believe Wamu ever forced him to do anything. Doesn't he have any morals. What about ethics. He would risk his entire company and everyone who works for him. Inflating an appraisal, is bank fraud. I am very tired of the media and government officials for always trying to blame a big company. Is Andrew Cuomo kidding? Is Chase paying him? Where is the proof. Wamu's statement about this accusation was way too polite. There are bad people in every industry. When a Police Officer takes a bribe do we blacken the entire department? When a priest is accused of molesting a paritioner, does everyone stop going to church. There is a real need for mortgage banks.Don't blacken an entire industry and a large lender like Washington Mutual because eappraiseit decided to do bad appraisals. I personally hated using eappriaseit,if you read the loan consultant blog at Washington mutual you will see how the loan officers felt about eappraisit. We hated using them. I thought Wamu was using them becuase they were cheaper. The appriasals I have gotten from them aren't inflated. The appraisals are sloppy, they use appraisers for areas that don't know the area, they take forever to schedule the appraisal and get them back to us. They are the worst appraisal company ever. I am glad we won't be using them. They do horrible work. I do loans for people that take them out of high rate adjustables, save them 100's of dollars per month and help them keep their homes. What is up with this nonsence.

Although most banks will try their best to suck every last dollar out of you, its the middle and lower class who end up paying the most. Don't trust them! But I also bought a house I knew I could afford being a single mom, got with a great mortgage broker, and have no problems. I refinanced when the rates went even lower and am now very happy with my mortgage broker. I actually have payments lower than when I first bought my house. I finance for a lower home rate, I did not include all my bills and being paying those for 30 yrs. It's not a $300,000 home, but it's mine.

People need to think about the consequences before they jump at an unrealistic "deal".

Shame on WAMU. But also shame on the government auditors and others in charge of tracking compliacne issues for allowing the appraisal process to continue the way it did. Shame on an industry that allowed a bank doing mortgage loans to own its own appraisal company.

This credit crisis has been a long time in the making and there will be no easy fix. Back in the 80's I was selling real estate and even then there was pressure on appraisers/lenders/listing agents to inflate the price of homes. The good ones stood firm, said "no" and lost business to unethical people who would do anything to get the transaction. Also, the criteria for purchasing a home used to be that the payment could not be more than 33.3% of your gross monthly wage, and you needed to have good credit. Now the qualifying factors have changed and even if you don't have good credit, you can still get a loan, just with higher interest.......Now does it make sense that an individual who did not handle money in the first place (at normal interest rates) and acquired a bad credit rating....is now going to magically going to pay their bills on time....with a much higher interest rate??? People should buy what they can afford, but everyone now thinks that because they exist they are entitled to everything they want....instant gratification.

There are many good appraisers providing valuation services in a professional manner. It is unfortunate that numerous lenders and mortgage bankers utilize appraisal management companies which do not consider quality of the appraisal report top priority but rather select appraisers by the lowest fee and fastest delivery time.The quality of the appraisal report appears to be inconsequential.

When Enron, the power company, price gouged and cost California billions in extra payments for electricity and it came out later that the employees were laughing on tape about burning people...I see the same pattern here and with the oil ocmpanies and with a lot of industries and with the government wasting money and with the War in Iraq: blatant price gouging and no conscience on the part of those doing it. Yes, borrowers oculd be more prudent, but the American public is over a barrel in many cases to take what is offered them. We have a government and a business structure that maximizes personal greed and minimizes personal responsibility. Now we have a Congress that is in league with a corrupt White House and we are getting the shaft coming from every direction: from banks to Blackwater to you name it.

The Government and big coorperations are clearly in bed together the American Citizens are being victimized by fee after fee after fee, bogas inflation,and tax increases with a ton of bologny excuses They don't give a damn about our troops over in Iraq They didn't give a damn about our troops in Vietnam either, And they don't give a damn about the vertrans either! All they care about is Money And the American Citizens are sitting in a warm pot of water getting ready to boil over. I think we need to stand up and do something about it! It's everywhere. For every nine dollars you make in an hour you make your company just think what they make thousands! It's nothing short of slavery, you just get nine bucks instead of slop on a plate which ends up being the same thing and if you make more you just give it right back to them in fees and taxes and instead of being locked up physically your locked up financially and you can't even go out and enjoy yourself cause its to expensive. Maybe we should call for a Strike Nation wide evryone stay at home for a day a week and stage a protest and demand that this crap be stopped! We need another civil rights movement except with peoople of all races from Middle Class down to the homeless or we will all end up homeless slaves Its only going to get worse. I mean my God they now want to make pumpkins to be considered a food so they can add taxes to that! Whats next Water oh yeah they already got that too.The Air we breath? I'm shure their working on that too. And do you really think you own your house or land? You got to pay taxes on that forever and where do you think thats going to? It's going to the big corperations in Iraq who are charging 50 dollars for a six pack of coke and giving diseases to our troops. If we stop working stop buying what ever would they do? We are being held captive by our own greed.

CAPITALISM = The rich screw the poor

Shades of "Atlas Shrugged". Just because you exist does not mean you are ENTITLED to have everything you want. "Big Business does not exist to give you a job....the individual who started that company did so to make money!!! If the company does not make money, why shoud they open their doors??

Disgusted has it all wrong: "In capitalism, man exploits man. In communism, its the other way around".

Most people have credit card max's that they can't afford to pay off. Most people use their available credit in a smart way and avoid fiscal trouble. A mortgage is not so different. 99% of the folks that are getting burned in the sub-prime mess is due to their own lack of judgement and sound decision making. Stop playing the victim and grow up. I live in a house I can afford and didn't gamble on teaser rates. I have zero pity for spec home buyers or people that bought champagne homes with beer wallets!

Suing these people is the answer. NOT.
They get sued, pay a lot of money out, then turn around and figure out a way to screw everyone to make back the money they paid out. Its a game they have played for years. Suing these banks isn't going to make them stop ripping people off.

the problems with foreclosures lies with
the greedy homeowner that signs the mortage.Idiot is the word for someone
who signs a interest only or progressive interest loan. Try buying a house you can afford.

yah go washington mutual

Bush should tried for selling out the american people for profit. What I don't understand is how he is getting away with destroying America and no one seems to care.