Foreclosure Freeze

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Federal officials including the House Speaker, Nancy Pelosi, are demanding a freezing on all foreclosures, and an investigation on the questionable foreclosures.  But, is Congress to blame for this wave of foreclosure fraud? Congress recently passed a bill sponsored by Representative Robert B. Aderholt, which would require one state to accept another state’s notarization rules, and the Ohio Secretary of State, Jennifer Brunner, suggested that this bill could increase foreclosure fraud.  GMAC Mortgage, JP Morgan Chase, and Bank of America are being scrutinized for possible improper foreclosures and evictions.   

Since the beginning of the economic crisis, the government has been pointing fingers at Wall Street for causing turmoil.  But, is the government to blame? The government has set up numerous agencies to supervise financial intermediaries such the OCC, the SEC, and the list goes on and on, and maybe these agencies have not been performing adequately.  Therefore, one must consider the possibility that when something goes wrong in the market, it may be a lack of government oversight and not just an excessive amount of Wall Street greed.