Topic: Foreclosures

Wells Fargo admitted in a regulatory filing that a "computer glitch" resulted in 625 homeowners being denied mortgage modifications, leading to 400 foreclosures. The bank set aside $8 million for compensation. The hosts expressed skepticism that the issue was a simple software bug, suggesting it may have been a convenient excuse for systemic misconduct.

Pastor James David Manning of the ATLH church in Harlem is facing the foreclosure and auction of his church property. Manning released a highly controversial and offensive video directed at potential buyers, claiming divine intervention would prevent the sale. The segment also includes a brief, disputed discussion on the etymology of a common homophobic slur.

A discussion of regional banking highlights Umpqua Bank as a superior alternative to Mechanics Bank in the Pacific Northwest. The segment includes anecdotes about the difficulty of obtaining loans despite having high equity and a story about Bank of America attempting to foreclose on a property that had no outstanding debt.

President Obama's weekly YouTube address highlights a perceived recovery in the American housing market, citing the fastest pace of new home construction in four years. The President claims that home values are rising and foreclosure filings have reached a five-year low. Critics argue these statistics are "bogus" and do not reflect the reality of families still affected by the housing bubble's collapse.

Kevin Kautzman promotes his new off-Broadway play, "If You Start a Fire Be Prepared To Burn," an internet sex comedy about the recession. Another donor from Kentucky shares a story of family hardship, including job loss and foreclosure, and requests "chemtrail job karma." The hosts offer support and plan to visit the play in New York.

John C. Dvorak reveals that his family is currently under attack by Bank of America, which is attempting to foreclose on a mortgage that has never missed a payment in 18 years. He is working with Washington state banking regulators to fight the bank, which he claims is using the fraudulent MERS system to seize property.

A former employee of MERS (Mortgage Electronic Registration Systems) describes the company's database as a primary cause of the foreclosure crisis due to inaccurate record-keeping. In a separate discussion, a telecommunications expert explains that the government keeps cell tower power low to maximize license fees from a higher number of individual cells.

The $26 billion National Mortgage Settlement is examined, with the hosts noting that most of the money goes to state attorney generals rather than homeowners. They highlight that the settlement actually provides a 328-page rulebook for banks to resume foreclosures, including a 5% allowed margin of error for mistakes.

The $26 billion "Big Bank" foreclosure settlement announced in February is scrutinized for delays in filing official paperwork. Claims are made that banks used the two-month delay to transfer mortgages to Fannie Mae and Freddie Mac, which are exempt from the principal reduction requirements. The hosts criticize the mainstream media for failing to investigate the loophole.

The Obama administration's $26 billion mortgage settlement is analyzed as a potential scam. The hosts point out that no deal has actually been signed and that the requirements for relief—such as never having missed a payment—exclude the vast majority of struggling homeowners.

The hosts argue that the $2.5 billion in settlement funds paid to states is essentially a campaign war chest for President Obama. They suggest that California Attorney General Kamala Harris will use the discretionary funds to support the administration in exchange for granting banks immunity from prosecution.

Tracy Lawrence, a notary public involved in a massive "robo-signing" foreclosure fraud scheme in Las Vegas, was found dead in her home shortly before her sentencing hearing. While authorities ruled out homicide, the hosts suggest her death was a "suicide" intended to prevent her from testifying against higher-level banking executives. Lawrence had recently pleaded guilty to one count of notary fraud.

An analysis of President Obama's Jobs Bill suggests the 165-page document focuses more on FCC regulations and high-speed rail than actual job creation. A significant concern is raised regarding banks that have foreclosed on homes but are allegedly not paying property taxes to local municipalities. There is a call for citizens to demand tax sales on these bank-owned properties to recoup lost local revenue.

Local news coverage highlights a cross-section of protesters, including Iraq War veterans struggling with unemployment and homeowners facing foreclosure. While the media portrays these individuals as demanding more government assistance, the hosts argue this reinforces a cycle of state dependency. A 2009 clip from Reverend Manning is featured, predicting that Americans will eventually reach a breaking point and riot against political leadership.

Section 261 of the American Jobs Act, titled Project Rebuild, allocates $15 billion annually to purchase and rehabilitate abandoned or foreclosed properties. The program provides 100% federal coverage for entities to sell, rent, or redevelop these properties without requiring matching funds. Concerns are raised that the lack of a completion deadline could allow developers to stall projects indefinitely to avoid repayment.

CNBC's Aaron Burnett and analysts from Deutsche Bank discuss a proposal to tear down abandoned or foreclosed homes to reduce excess supply. Burnett suggests that even newly built homes should be demolished because their "fixtures and Wi-Fi" will not be "stylish" by the time the market recovers. The hosts react with disbelief to the idea of destroying functional housing based on aesthetic trends and "Keynesian" ditch-digging logic.

Mainstream morning shows are heavily promoting the purchase of foreclosed homes, creating a "foreclosure mania" meme. Experts on these programs warn that interest rates will skyrocket once Fannie Mae and Freddie Mac are phased out. The hosts suggest this coordinated media push is intended to artificially jumpstart the real estate market.

A student donor asks for "karma" to deal with incompetent administrators at Utica College. The discussion moves to the national mortgage crisis, where the hosts suggest that lost paperwork in the loan packaging process might allow homeowners to reclaim ownership through legal loopholes.

JP Morgan Chase is scrutinized for overcharging thousands of military families on mortgages and improperly foreclosing on active-duty troops. Despite the bank admitting fault in cases like that of Marine Captain Jonathan Rolls, the hosts question why legal proceedings remain pending.

A report from the PBS NewsHour details predatory foreclosure practices by Bank of America, where homeowners were allegedly misled about loan modifications. The bank reportedly charged fees for advertising the auction of homes while they were still "under review." The hosts note that Bank of America is a major underwriter for PBS, suggesting the story may have been softened.