By William Hudson

http://www.wsj.com/articles/appeals-court-throws-out-1-27-billion-penalty-against-bank-of-america-1464018896

The big banks have demonstrated to the world that they own everything including the courts, law enforcement and government officials. They have demonstrated this fact by rigging currency and economies, obtaining bailouts when they had no losses, foreclosing on loans they can’t prove they own, playing both sides of the market and by purchasing government representatives with “deals” they just can’t turn down. Meanwhile 318 million Americans have had their lives impacted or decimated by illegal banking practices.

In late May,  a federal appeals court ruled it will not hold Bank of America accountable for the sale of worthless mortgages, overturning a paltry $1.27 billion penalty they had been ordered to pay. A panel of three judges ruled that federal prosecutors had failed to prove that Bank of American’s Countrywide Mortgage division had defrauded Fannie Mae and Freddie Mac by selling them fatally flawed loans. Seriously…

It seems apparent to me that the banks are sidestepping the statute of limitations issue by getting homeowners to renew payments after the statute has run. Given the confusion in Florida courts it is difficult to determine with certainty how the statute will be applied. But the execution of a modification agreement would, in my opinion, almost certainly waive the statute of limitations, particularly since it refers to the part of the alleged debt that was previously barred by the statute. It would also, in my opinion, reaffirm a discharged debt in bankruptcy.

There are several reasons why servicers are offering modifications and several other reasons why they don’t.

My perception is that the main reason for offering the modification is that the servicer is converting the ownership of…