Andrew Leonard writing in Slate makes fun of the White House’s claims of there not being any serious problem with the foreclosure system. (But he doesn’t have anywhere near as much fun as I did.)
But in the same press conference he (HUD Secretary Shaun Donovan) also asserted that “we have not found any evidence at this point of systemic issues in the underlying legal or other documents that have been reviewed.”
That is simply nonsense. The widespread use of robo-signers, the epidemic of lost paperwork, the proliferation of lawsuits, the potential invalidation of mortgage-backed securities — everything points to a systemic problem. The only real question is how big the mess will get. The White House should be far more out in front. Right before an election, the administration couldn’t have asked for a development that better illustrates the necessity for tight government supervision of the financial sector and industrial-strength consumer protection.