State Attorneys General Fighting Foreclosures Have Backing of Voters
November 2, 2010 • 10:11AM

A majority of Americans surveyed in recent polls want President Obama to impose a national foreclosure moratorium — which he opposes in his continuing defense of the bailed-out banking fraud known as Wall Street.

Now it is becoming clear that those state attorneys general who are leading the national investigation of the big banks "foreclosuregate" fraud, have the backing of the voters as a result — even if they are Democrats in states which are otherwise turning against Obama's party.

The leading example is Ohio Attorney General Richard Cordray, the most aggressive of the AGs against GMAC, Bank of America, and the rest. Cordray has filed suit to compel huge damages from GMAC — $25,000 per fraudulent foreclosure — and has thrown out an investigative net which has stopped many foreclosures in the state. Running for re-election, Cordray was trailing Republican former U.S. Senator Mike DeWine in independent polls one month ago, but now leads 50-44, according to the Columbus Dispatch. Cordray could be the only statewide Ohio Democrat to be elected.

Iowa AG Michael Miller has been the national spokesman for the 50-state AGs' investigation of the banks. Tied in his re-election race one month ago, Miller now appears to be pulling away from Republican Brenna Findley, with a 45-34 lead in the latest Iowa poll. This while Republicans at the top of the state ticket have wide leads.

This is crucial for the possibility that the state AGs' investigation of the banks will put on pressure for Lyndon LaRouche's HBPA and national foreclosure moratorium right after the election. The AGs' strategy now seems to be to try to use the investigation to compel the banks to agree to a "mass cramdown" of mortgages, dramatically reducing their principal amounts to protect households "under water" from foreclosure.

In October, "Foreclosuregate" cut foreclosures by about 40% in California, Nevada, and Arizona, and 20% in Florida.

The Florida State 4th District Court of Appeals on Oct. 30 stopped a foreclosure due inability of Deutsche Bank to produce the note, overruling a district court decision and setting at least a statewide precedent. This, although Deutsche Bank belatedly "produced the note," months after trying to foreclose. Cordray on Oct. 30 warned the banks, "Don't try to fix the fraud now" by manufacturing documents after they are caught in the fraud. "It is not acceptable for a party who believes they submitted false court documents to merely replace those documents," Cordray said, and asked Ohio judges to notify him when banks file substitute affidavits.