Posted by Keith Jurow 04/27/10 8:00 AM EST
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CSC | 04/27/10 3:26 PM | Reply
The FBI found that the mortgage industry does 80% of mortgage fraud: (fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm). Attorney Rachel Dollar who I believe works to help lenders spot and avoid fraud, and who runs a blog on the topic, (mortgagefraudblog.com), co-authored a book a few years ago about mortgage fraud and in it said it can't really be pulled off without industry participation. I am in agreement with those findings. There is no way consumers could've pulled it off on their own, because they didn't create, promote, and approve, millions of toxic loan products. The industry did. Even if every buyer was lying, the industry had the means and training to say no...but in reality many of these buyers didn't lie, they were duped into loans the industry assured them were safe, when they were not safe. Just like Goldman Sachs and the ratings agencies, etc, told investors that the repackaged loans were safe investments when they were not. Consumers also took no part in reselling the loans or rating them as good investments, etc. At most, flippers were a problem and many buyers were duped, but they were not the cause. The industry can look in the mirror for that answer. Many of these industry insiders should be going to jail. Wouldn't you or I be in jail if we took out the economy?
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