New Mortgage Crisis in a Nutshell – Presented by John Campbell



In this one-hour video, Attorney John E. Campbell explains the main aspects of the mortgage crisis that has devastated the U.S. housing market and the economy.

This video was produced by John Campbell and Erich Vieth, who are both attorneys (along with Alicia Campbell) at Campbell Law, LLC in St. Louis, Missouri. http://campbelllawllc.com/ John is also on the faculty of Sturm College of Law at the University of Denver. A substantial part of their law practice concerns issues pertaining to mortgage fraud and unlawful foreclosures. The attorneys of Campbell Law have filed numerous individual and class action lawsuits on behalf of behalf of homeowners.

This video is divided into the following sections:

I. The Big Picture and its Many Parts (:55)
II. Banks Flood the Market with Subprime Mortgages (3:54)
III. Banks, Securitize their Mortgages (10:05)
IV. Banks Cry for a Bailout (13:57)
V. Wall Street Malfeasance (16:54)
VI. Foreclosures, Robo-Signing, Trustees and Conflicts of Interest (18:20)
VII. MERS (“Mortgage Electronic Registration System) (33:45)
VIII. The Mortgage System Used to Work (43:42)
IX. Credits and Further Readings (52:43)

Erich Vieth
John Campbell
CAMPBELL LAW, LLC
1500 Washington Avenue
Suite 100
St. Louis, MO 63103
Office: 314.588.8101
Fax: 314.588.9188

It is their intent to offer a video for both lawyers and non-lawyers that presents an overall picture of an area of law that has, especially over the past decade, become intimidating in its complexity. If this video inspires you learn more about the mortgage industry, including bank misconduct, securitization and foreclosures, you are invited to explore the websites of these three excellent organizations:

Center for Responsible Lending http://www.responsiblelending.org/ (start with the “Mortgage Lending” tab on the home page.

National Consumer Law Center. http://www.nclc.org/

National Association of Consumer Advocates. http://www.nclc.org/

Wikipedia also offers many articles to get you started, including the following:

http://en.wikipedia.org/wiki/Mortgage_law
http://en.wikipedia.org/wiki/Mortgage_fraud
http://en.wikipedia.org/wiki/Recorder_of_deeds
http://en.wikipedia.org/wiki/Trust_deed_%28real_estate%29
http://en.wikipedia.org/wiki/Foreclosure
http://en.wikipedia.org/wiki/Mortgage_securities
http://en.wikipedia.org/wiki/Mers

For an especially good explanation of MERS (“Mortgage Electronic Registration Systems, Inc.”), see “Two Faces: Demystifying the Mortgage Electronic Registration System’s Land Title Theory,” (2011) by Law Professor Christopher Peterson. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1684729

source

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39 comments

  1. James anonymous

    Thank you John Campbell for this public service. You're a real pro !. These banks and "fraud" institutions deserve all the "HATE
    that can be leveled upon them by the American "Main street, John & Jane Doe ! What does the Government, govern ??????????

  2. crispus muriithi

    Big up yourself!

  3. Never knew about the MERS or foreclosure procedure. Thank you for explaining that

  4. Get ready..love it <3 excellent , thankyou

  5. Great explanation! One of the better ones about the crisis

  6. Regulation from the bottom up. You to the Jury. http://www.weputthelimeinthecoconut.weebly.com

  7. sclSolitarium

    I didn’t appreciate that after 18 months my loan was sold to another bank… salty to this day

  8. Patrick Lovell

    Nice job. Love the sentiment and clarity about the basics. There's so much more but really appreciate your effort.

  9. i'm seeking help what is this guy's contact information? there's forged fake paper works and there's MERS Signing on my mortgage contract, bank of America has alot of frauds, violations, and illegal practice on my home loan, bank of America also breach my loan contract by stopping me from making my monthly mortgage payments, there illegal policy, that the homeowners can't make their mortgage payments when they are under modifications but this. how these fraud banks steal people's home please somebody help me to sue this fraud bank of America

  10. john i forgot to mention to you about looking up another big fraud that banks illegal scam homeowners about it's call warehouse lender with these banks create confusions from the start using 2 different social security numbers the actual homeowners social security number and the other one they create within subpenaed documents please look this up and please contact me help me to stop this wrongful foreclosure sale bank of america set on my home next month September 11th 2017 please i only have 2weeks left before they sell my house my phone number is 925-521-4899 thank you

  11. you also advertised in this video that you're an attorney, please i am looking for an attorney that charge lower than $950 for a retainer fee with between $950 to $1,100. a month fee while her or his firm are working on audit, securitized, litigation, and investigation of all bank frauds, violations and scam illegal practice, i know in my heart if any lawyer in whole nation and america go down on their retainer fee and monthly fees while they're litigate and investigate mortgage loan frauds violations and all these illegal practice by those fraud banks im sure the whole america will go to that lawyer for lawsuits and litigation so it's too many to tell you about my own loan, but it seems to me that you know and experience already about the MERS Robot signing fraud on mortgage loan like mine and right now bank of america is still wrongful foreclose on my home with the set sale day on next month September 11th this year 2017 i really need help of the lawyer right now to file an injunction claim in court to stop this wrongful foreclosure sale next month if you already won bank fraud MERS Robot signing and breaching of mortgage loan contract by banks by stopping homeowner from making their monthly payments because of their illegal fraud scam modifications then please contact me by phone or email and my telephone is 925-521-4899 or e-mail at suecozza64 @gmail.com i prefer by phone, i'm disabled senior lady and i'm on wheelchair and my care-giver only works 3 days a week for 3 hours a day and we have to go use our city library computer because i don't have one except this phone i'm texting you from right now please let me if you can help me to stop this wrongful foreclosure sale thank you

  12. coreycox2345

    Who in their right mind would take out an interest only mortgage? It sounds like something as simple as putting a sheet disclosing the terms of a loan in large print as the front page of the mortgage documents would have been useful to people who did not understand these mortgages well. Also, information on the foreclosure process in the buyer's state would be useful.This could be achieved for the future with better disclosure laws.

  13. if the subprime loans we're never written in the first place and they would have verified income like they're supposed to and the FICO score would have been an average of 720 instead of below 600 a financial collapse 2008 would of never happen

  14. technologysimple

    Wow…. i am listening to you at 1 in the morning in Germany and it is the BEST explanation of the subprime mortgage ever !! You have amazing explanation skills . I believe you should make small animation videos that break all these things explaining all such concepts that are a fun and oriented for everyone !! You explain really really well. bRAVO !

  15. Very well explained.

  16. in a nutshell capitalism is the crisis

  17. Portfolio Loan | Mortgage Guide

    Very well put. The best improvement in the industry since the meltdown was probably the need to prove: the ability to repay.

  18. Freethinking Влади́мир

    "In a nutshell"… then I noticed it's a 52 minute video. That's not "in a nutshell" 🙂

  19. Here is a head scratcher, Banks do not lend "money". Chicago Federal Reserve Modern Money Mechanics.

  20. thank you

  21. Alain Loussaint

    can I sued the federal government of over this. for not have been doing their jobs. can I sued the federal government? because I lost 2 house over this bullshit; something unless somebody is in the financial industry one would not be able to understand what was happening in 2003 through 2008 when I lost my house to foreclosure

  22. bernie mckenna

    congratulations. That was a brilliant presentation .

  23. So far, the best explanation I've had but it's still confusing.
    And I think that's the point. If it's easy to understand, the consumers won't get cheated so easily.

  24. First time I applied for the mortgage, I was scared to death (it was way before subprime, and everything was under control).
    My worry wasn't not so unfounded.
    I'll never apply for another mortgage.

    I'll pay off the loan and keep the house forever.

  25. man he is too gud!!!

  26. All of it – every penny, in-and-out, was propagated by lies. The borrower lied to the lender. The lender called the appraiser, who lied on the appraisal. The lender took the false appraisal and used it to lie to various banks. The banks lied to get the loan into the approval mill, and then the banks lied again when they sold the mortgage immediately after the borrower made 1-2 payments, calling the loan "good". A Federally appointed judge lied when he established the precedent that the loan – once sold – was no longer considered a "legal" mortgage, allowing the borrower to simply walk away from a house they couldn't afford in the first place without suffering the full penalty of mortgage default. After everything crumbled, the Federal Government lied to everyone, telling us that the institutions who lied and committed fraud were "too big to fail", thus endorsing their behavior, and giving them taxpayer money as bail-out. Next, the banks lied again, saying how grateful they were, and how they would overhaul their lending processes. Lies chasing lies, justified by lies, and sponsored by the public through more lies. When EESA (Emergency Economic Stabilization Act) was passed, it was voted on thusly: US Senate passed it 74-25 (Ted Kennedy didn't vote due to illness). The partisan breakdown was as follows: R: 34Y-14N, D: 41Y-11N. In the House, the vote passed 263-171. The partisan breakdown was as follows: R: 91Y – 101N, D: 172Y – 63N. President Bush signed the bill into law.

    The lies continue? They sure do. Hillary Clinton, who voted YES, was – by FAR – the most heavily influenced, financially, by entities that supported the bailout. See for yourself: http://maplight.org/us-congress/bill/110-hr-1424/352600/contributions-by-vote

    And now, the people who support Occupy are supporting Hillary. It's a vicious cycle, and nobody ever really follows the dog all the way back home. We are doomed to repeat this, because we doom ourselves by regurgitation of political criminals who design these schemes for personal gain.

  27. Stephen Butterworth

    Not long watched the big short and it was really complicated even thou I kinda understood it alittle. this video has completely explained the full thing in a very simple way. I applaud you for this video thank you.

  28. Airbloom Amplifiers

    M.E.R./S still going on? Mar 2016

  29. Stephen Johnson

    The next time the crash happens (because the banks have not changed) lets be prepared for action.

  30. thank you very helpful

  31. how about the FACT the bank never lent you anything to begin with.

  32. Erico Shimatta

    This video was really helpful and explained the mortgage crisis in a very good way.
    I want to see more videos with this man and I'd even want him as my teacher in economics!

  33. Steven B Harkness

    Very good explanation but there was allot left out or not gone into deep enough. We should of broken up the to big to fail banks when we had a chance but our bought and paid for Congress (by the very same banks) missed the chance to set things straight. Instead we now have what Congress is calling a rogue agency in the Consumer Finance Protection Agency. If it was named after what it really does it would be called the: Business as usual for the Mega-banks and the tax payers are on the hook like never before Agency. Part of the Wealth Extraction that has taken place in this country for the past two and a half decades now.

  34. Ann Grigoryan

    amazing lecture…. very simplified for the regular joe

  35. Andrew Dianiska

    pretty good analysis– a couple of quick notes from a loan portfolio trader who was in the room– the Street conduits [aggregators & securitizers of loan pools- Lehman's Aurora, Goldman's Littman] actually created a market Demand for exotic loans [SISA/ NINA piggyback Pay-Option ARMs] by offering up to 108% face value over 103% for traditional A paper– Bill Dallas/ OwnIT mortgage noted that he finally caved to their Demand bc he couldn't keep declining 5 points on his BILLION a month production [5%/1Bn= $50Mn].
    Street firms would then take out CDS to improve risk profile to get AAA/aaa+ [not to mention inherent Conflicts of Interest in Sell side ratings] and then repackage the "B pieces" into CDOs [w/ CDS] until they got the holy grail- AAA/ double digit ROI security okay for sale to Pension Funds, the ultimate target market all along.

  36. Thanks for showing one of the many faces of this complex system. Others sides are the "Trustees" with Goldman, the insurance from AIG. Even the building material suppliers were making a quick dollar (Chinese dry wall). My a/c handler when out a couple of days ago, and the repair said that this was a common problem with units built around the same time period. They couldn't keep up with demand so they started building them on the cheap. Moral of the story – Only so many hands can fit into a cookie jar, until you have to break the jar. 

  37. gohappypanda1

    Wonderful video.  Interested to know what his thoughts are with the present day housing market – overpriced homes v. slow salary increases.  Even though the banks have tighten up their ability to give out loans, hardworking, honest home buyers still suffers because now they cannot compete against cash buyers, usually ones from outside of the U.S.  And of course, as a seller, why lower the price if there is cash to be had?  These cash buyers purchase these properties just to resell them or increases rent to recover the high costs plus profits.

  38. Great Job!

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