The New Mortgage Fraud

If you missed 60 Minutes last night, you missed a story that, if it weren’t so typical, it would be the most shocking scandal since the recession began:

Story: http://www.cbsnews.com/stories/2011/04/01/60minutes/main20049646.shtml?tag=contentMain;cbsCarousel

Video: http://www.cbsnews.com/video/watch/?id=7361572n&tag=contentMain;cbsCarousel

sorry folks.  As ridiculous as this sounds, this one ain’t no April Fools joke.  Turns out that those big banks were in such a hurry to screw us on our mortgages that they forgot to file some very important paperwork.  As a result, in order to satisfy the courts and repossess the foreclosed houses, they contracted with forgery firms to recreate the notes.  The cat’s out of the bag now, the courts are not accepting the forged evidence, and every Attorney General across the country is pressing charges.  Isn’t this just one more big fat reason to increase regulation?

Advertisements

2 thoughts on “The New Mortgage Fraud

  1. Yes, I’ve been reading about this in the WSJ for quite some time now. It was just a few AG’s filing at first, but now I see it’s all 50. That’s great! I think they should arrest everyone of the executives at that LPS SERVICES or what ever it was called. They new exactly what DOCx was set up for and why everyone there was hired. their funds shojuld be frozen and applied towards the mortgage superfund that FDIC was talking about. As far as regulation is concerned,that’s what Barny Franks and that clown from Connecticut were supposed to be doing. I hope these AG’s investigations lead all the way back to them and they go to prison too. It has already come out that they took special favors from FANNY AND FREDDY. They played the old Patomic Two Step and dodged that one. Dodd and Franks are now pushing for more Wall Street, banking, and financial institution regulations, probably to cover their tracks and make them look like the good guys. Tipical. The fraud always tries to cover his tracks and make people look the other way. More regulation, I don’t know. I think the AG’s should PUNNISH EM BIGTIME, because if you’ve been reading lately, the high risk loans are making a comeback, kind of under the radar. It’s got to stop and, “THE ONLY WAY-IS TO MAKE EM PAY.”
    That’s my view and I’m stickin to it.
    Whatchewsay?

    1. It’s not surprising to me that high risk loans are making a comeback. The stockmarket is back to roughly where it was when the exotic mortgages began, which has a lot to do with the psychology of investors and mortgage companies. Besides that, independent mortgage companies are still unregulated and not covered by the Community Reinvestment Act, which provided a lot of incentives for the major banks not to get caught up on the mortgage game in the first place. We didn’t learn.
      I don’t know what to think about Dodd and Franks. Obviously, they are not the only two legislators in control of what happened, and they are certainly not the only ones to receive kickbacks. In fact, it may not have been a kickback at all. Employees of many large organizations can get deals on mortgages just because they work for those organizations. It’s an economic development strategy for both the organization and the lender. If the organization wants to keep their employees long-term, they will enter into an agreement with the lender to offer incentives; it’s a win-win for both and a very good private market strategy. For better or worse, the Federal government (as well as states and city governments and large private businesses) want to keep their employees, so they look for these types of relationships with lenders and other types of businesses. In fact, because of who my wife works for, we can get some pretty good discounts on a mortgage someday. Is that considered a kickback? I don’t want to give a pass for sleazy politicians, but I also don’t want to assume something without knowing what’s really going on.

Comments are closed.