FBI to "arrest hundreds of people" for mortgage fr

[momopi]

http://www.calculatedriskblog.com/2010/ ... eople.html

Report: FBI to "arrest hundreds of people" next week for Mortgage Fraud
by CalculatedRisk on 6/11/2010 01:20:00 PM
From the Financial Times: FBI to target mortgage fraud

The FBI is preparing to arrest hundreds of people across the US as early as next week for offences including encouraging borrowers to falsify income on mortgage applications, misleading home owners about foreclosure rescue programmes, and inflating home appraisals ... The FBI is scheduled to release its 2009 mortgage report on June 17.
excerpt with permission

The FBI usually only arrests people engaged in fraud for profit and not fraud for housing - they typically don't arrest borrowers who misrepresented their income - they arrest mortgage brokers who encouraged people to falsify their income. Although the distinction was blurred during the bubble ...

[Think Different]

It's a good start. Home ownership is NOT a right; it is a privilege, but making it super easy for people with bad jobs, no income, poor credit, etc. to get their piece of the American pie, too was just too tempting. Now we're all paying the piper. Next, I hope they go after the friggin crooks on Wall Street and the thieving corporate execs, who get astronomically high salaries. Compare them with Japanese execs, for example, who get paid much less and have more of a perspective on what's good for the company as a whole, not just for themselves.

[globetrotter]

This needs to be TENS OF THOUSANDS OF PEOPLE.

Half the population of California that bought a home from 2001 to 2009 lied at some point.

Get the Brokers, Realtors, consumers, bankers and other liars in jail and fine them all $250,000.

Of course it is too late now and the damage to the global economy is already terminal.

Better late than never, I suppose...

I know people who pointed this out and knew of it 8 years ago. No one listened for a decade.