Friday, September 9, 2011

Michael David White on Housing Fraud

Michael David White throws his weight behind the call for prosecution of control fraud at Housing Story, Bring Criminal Charges Against Chief Executives of Leading Originators And Securitizers of Stated-Income Mortgages.
There is no question about what these mortgages are. Individuals borrowing money fabricated the amount of their income. The banks required no verification of the statements about income. By that action banks encouraged the fraud. If this failure to verify factual statements is acted out on a grand scale, then the bank is the leader and creator of the fraud. If stated-income mortgages were created by bank policy overseen and approved by top management, then those managers and overseers are the leading criminals in the conspiracy.


Ryan Harris said...

If they would prosecute the bankers, then maybe they could go after the real criminals like Barney Frank, Richard Shelby and Tim Johnson. These guys designed the system, monitored it, and created the regulations. It was their responsibility within the government to keep the banking system working. They were at the pinnacle of power in our system of government and should be held accountable.

googleheim said...

these guys might have designed the access to loans for homes, but they did not design the vortex machines which resold the debt from banks which traditionally sat on mortgages so as to sell it globally via cdo/cds amplifiers.

the liar loaner foreclosure market would have only been a $400 billion problem, HOWEVER the amplification by wall streeting quantification made it a $40 trillion issue or something.