Mortgage Fraud And Flipping Schemes

[Eli Weiss]

Not long after 09/11 the banks started lowering rates and introducing loans we have never seen before in history, in response we saw mortgage fraud and flipping schemes like never before, we actually had one of our renowned members Pamela Crowley creating her website the Mortgage Fraud Watch List to combed mortgage fraud and doing her part for the mortgage industry that the banks turned a blind eye on....
Now we all know what happened the past year, but the banks are acting as if they were the victims and never saw it coming ....

But there is one report I came across by accident, prepared by the Minority Staff of the Permanent Subcommittee on Investigations by the US senate and released on 09/25/2001 that saw it all coming, now the question is why didn't they act?

Read this report its like a crystal ball....
http://bulk.resource.org/gpo.gov/prints/107/s_75382.pdf

Is this another example of our government at its best, would they have acted on this report, our economy would not have been where we are now...

 

[Zero]

And, as the 9-11 investigation indicates, they saw an attack coming, but did not act. Perhaps if our government acted on any of the intelligence and information collected, the towers would still be standing and our tax dollars wouldn't be bailing out banks. Perhaps.

 

[Dennis J. Black ASA IFAS]

The report deals with FHA. FHA loan origination lagged far behind the new (at that time)sub-prime products. Lenders stopped prudent underwriting because the belief was that up front fees will offset any risk. Understanding the CMO's and MBS market is what this is all about. Mark to Market versus Mark to Model. These financial instruments were trading with the belief that they would always be liquid. Problem is, these things are not Treasuries.

My only comment on the 9-11 commission is that Jamie Gerelic should have been sitting in a different chair.

 

[Eli Weiss]

Although it address HUD, it gives you a picture of the general market conditions at that time. It seems that the following market just played in perfectly into these fraudsters hands.

 

[Mztk1]

The problems at HUD started long before that. The goal from '89 to '97 was to run it into the ground as it was just another government waste program that private industry could do better. The collapse of HUD was predicted due to the policies and lack of oversight by Jack Kemp, who took the helm in 1989 and remained there until Cuomo came in in 1997. Cuomo made a lot of strong oversight changes. I am not saying it was all for the better, but it certainly was an improvement to Kemp.

http://www.questia.com/googleSchola...5zmsyQ8gFlyjPYst7GJ!65800976?docId=5000171377

http://goliath.ecnext.com/coms2/summary_0199-2153209_ITM