$5M Jury Award for One Foreclosure Fraud Makes U.S. Punishment Look Trivial
by David Dayen
Posted December 20, 2015
A Texas jury’s recent decision to award over $5 million in damages and fees for the fraudulent foreclosure of a single home suggests that the big banks could have been on the hook for as much as $32 trillion — before the Justice Department and state attorneys general settled for $25 billion, or less than one-tenth of a penny on the dollar.
With the jury award in the Wolf family case, we can now assess the true financial exposure on these banks and mortgage companies. There have been roughly 6 million foreclosures since the beginning of the financial crisis in 2008, and virtually all of them were completed with robo-signed, fabricated or fraudulent documents in one form or another. If we apply the $5.38 million jury award to all of those loans, you have a potential cost from the foreclosure fraud scandal of $32.28 trillion. More…
We can all thank Eric Holder, who as Attorney General of the United States decided to protect the big banks from lawsuits for mortgage fraud, while millions of families were thrown into the streets