How is the American tradition, one of the hallmarks of our culture and an activity that the majority of the population participates in at one time or another, as soon as the housing bubble, the trials began. Sued the owners of real estate loans and authors sued the investment firm owners under repurchase agreements, and all others demanded that more people could. After all, everyone has the right to use the courts, right?
The number of claims against the parties themselves by various aspects of mortgage fraud, along with the already high rates of exclusion, has put pressure on the judicial systems of government throughout the country. Even in the best of times, the judicial system in the United States has been more concerned with preserving the myths of state power and the award of the rich with more judgments against the poor.
With the explosion of the housing bubble, however, a number of parties involved in the fraud by inflation have entered the courts in an attempt to seek "justice", also known as trying to avoid the consequences of their bad financial decisions in the past decade. Complicated by the mortgage and real estate contracts and documents of the securitization, and repurchase agreements, these lawsuits will bring even greater burden on local courts.
For example, investors in toxic mortgage securities have begun to sue companies for origination of loans and lenders. Investors are saying that the authors should have made it known that these subprime mortgages were more likely to default. Lenders, agrees to these demands, not to disclose the true risk of assets. The problem with these suits is that many authors have left the company for now.
Another demand has increased in popularity since the collapse of the housing bubble has been securitized debt to investors in the Wall Street investment firms that bought the loans and then turned them into mortgage-backed securities. Wall Street knows, tell investors that the mortgage is garbage and this should have been.
Investment firms also had the highest interest rate of tranches of securities. In essence, investors who sold the payments based on lower interest rates and maintained the highest rates of them. However, low rates are part of the perception that the investments were actually safer which has proven over time as the loans were bad.
Local governments have also begun to initiate lawsuits in the courts of the local government (conflict of interest?) Against mortgage companies. Governments are claiming to have been damaged by the pumping and dumping in their communities. Clearly, relying on the pumping of real estate loans to continue to fund higher tax rates, and declining home prices have created huge problems for program financing.
These few examples of trials even begin to consider the many homeowners suits involving them being sued by banks and sue for fraud, predatory lending, or the commencement of class action suits. But the government courts have become the arena in which many players in the housing bubble has become to avoid losing even more as a result of the collapse.