I think the camel’s back will break as straw after straw gets added.
Yesterday, Wells Fargo – after fiercely denying problems – admits there are 55,000 lapses in documentation of current foreclosures. Now, Wells Fargo only has a couple hundred thousand active proceedings in any given month. So what this implies is that 25% of Wells Fargo’s foreclosure filings have errors.
I will grant that many of them are minor, either truly or just legally so. That is still far too many errors for what is supposed to be a carefully vetted process — a process which was loudly defended as having zero errors just a couple of months ago.
At this point I think the hammer is going to hit the banks, the only questions being when and how hard. One of these straws is going to be too much.
When it happens it will be ugly for everyone. Lancing a boil is always painful, and the longer it’s been allowed to fester the worse it is. If unlanced, however, it’s going to kill us.