Friday :: Oct 8, 2010

Open Thread

by Mary

Well, well, well. Maybe someone actually will go to jail over the housing bubble fraud.

The mortgage lending boom saw the proliferation of predatory lending and mortgage fraud, what the FBI called at the time β€˜an epidemic of mortgage fraud.’ Much of this was lender-induced.

When lenders – many of whom are now out of business – originally lent money to borrowers, they often did so knowing that the terms of the loans could not possibly be honored. They sought fees, not repayment. These lenders put people in predatory loans, they induced massive amounts of fraud, and Wall Street banks misrepresented these loans to investors when they moved through the securitization chain. They were stealing money from investors, and from homeowners.

Oh yes. Someone decided to make liar loans and it wasn't the borrowers. Someone decided to sell toxic assets to cities, states and retirees and they weren't disclosing the risk. Someone made out like bandits. And they almost destroyed the world economy. It would be nice if they were held to account for their unmitigated greed.

Mary :: 12:00 AM :: Comments (3) :: Digg It!