Strawman Buys A House

Mark Hamblett/NYLJ: Three Plead Guilty in Multimillion-Dollar Subprime Scheme:

Accused of using false documents and straw buyers to obtain loans fraudulently, the three were among 26 people indicted in the subprime scheme.

Some little piggies went to market, more little piggies stole homes, and these little piggies cry "wee, wee, wee" all the way to the federal joint.
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Image © 2002 by Center for Understanding the Built Environment (CUBE)

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I had someone comment on my Blog that fraud by buyers was a part of the mortgage meltdown. I haven't seen any studies that said that buyers, en masse, were perpetrating frauds. OTOH, even if there were frauds that the mortgage companies were noticing I think they would have turned a blind eye to it considering they were hiring companies specifically to ignore credit check red flags, giving out references to lawyers they knew would skip explaining the entire deal to the customers and, generally, rigging the entire process for their own short term benefits in commissions on sales of mortgages.

They turned mortgages into the "puppy mills" of the banking industry. Just sell sell sell regardless of the what it was doing the client, market and product.

And NO! I don't mean that I condone that kind of fraud in the story... lol

Everyone involved in the money chain gets a piece of the blame, but having seen this type of "aggressive" selling before, the buyers percentage is likely very small. As the regulators and State and Federal prosecutors begin the untangling process, the true lies will out.

The newly wrought BofA settlement is estimated to reach 400,000, 120,000 in CA alone. They are following the Bair Essential: freeze foreclosures, like the FDIC did @ IndyMac. Slowly they turn, step-by-step, inch-by-inch . . .