Fraud by Mortgage companies key cause of Foreclosures

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investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Fraud by Mortgage companies key cause of Foreclosures

video. What a racket.....

http://www.consumerwarningnetwork.com/2009/05/11/fraud-by-mortgage-compa...

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1443
Re: Fraud by Mortgage companies key cause of Foreclosures

Interesting video.

A few things though.

Sub prime loans didn't cause this problem.  Easy money via the Fed caused this problem as well as the development of derivatives.  Yes, the fraudulent actions of the companies involved in sub prime had a part in this issue, they didn't cause the BIG problem.  They were just using what was made available via the Fed/Wall Street.

Also, there were specific companies that were the primary culprits to fraud in the Sub Prime arena.  Countrywide comes to mind immediately.  The underwriting practices of banks such as Wells Fargo and Bank of America were fairly stringent throughout the boom.  BofA's problems came from bundling and playing in the derivatives market as well as the purchase of Countrywide a few years back.

Good video though!  Thanks for sharing.

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