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Mortgage Fraud jumps 36% last year, and still growing....

Discussion in 'Political Discussion' started by Fogbuster, Jul 8, 2009.

  1. Fogbuster

    Fogbuster Pro Bowl Player

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    .

    .... but it has NUTHIN' to do with the failed Community Re-investment Act (CRA) legislation which effectively destroyed almost all personal responsibility in mortgage lending, almost all honesty, almost all honor. Nah. Not a thing. .....


    [size=+3]U.S. mortgage fraud 'rampant' and growing-FBI[/size]

    SAN FRANCISCO, July 7 (Reuters) - U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and industry professionals tried to maintain their standard of living from the boom years, the FBI said on Tuesday.

    Suspicious activity reports rose to 63,713 in fiscal year 2008, which ended last September, from 46,717 the year before. California and Florida, centers of the housing bust, had the highest numbers of suspicious reports as foreclosures jumped, the stock market dropped and credit dried up.

    "These combined factors uncovered and fueled a rampant mortgage fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living," the Federal Bureau of Investigation said in its report.

    "Industry employees sought to maintain the high standard of living they enjoyed during the boom years of the real estate market and overextended mortgage holders were often desperate to reduce or eliminate their bloated mortgage payments," it said.

    U.S. mortgage fraud 'rampant' and growing-FBI | Markets | Bonds News | Reuters


    Fake mortgages, fake living, fake commitments, fake promises. Fake life.

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  2. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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  3. Fogbuster

    Fogbuster Pro Bowl Player

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    Link to the CRA??? The CRA effectively destroyed the mortgage lending rules, most prominently the rule of "10 to 20% down"; thus people with zero means to pay for mortgages were getting them. "Pulse loans" was the name; anyone with a pulse could get one. From there it was all down hill, as the scamsters arrived off the boat to devise ways to get mortgage upon mortgage, forcing up the cost of real estate while tying up properties.

    The CRA and its authors are to blame for this.


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  4. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    This short article is non committal about the reasons for the jump, except for the greed of the mortgage brokers who want to maintain their lifestyle.. there is no link to CRA, those folks now having to apply for regular mortgages have so do so with higher credit score numbers than previously.. the reality is that in much of the Northeast there is not a lot of property moving in the cities...

    Here is what the article says.. it is more about the brokers who desire to maintaing their lifestyle, than about the people borrowing..

     
  5. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Fog, if you are a religious man, which you claim to be, and understand what the CRA was all about, I don't think you'd oppose it. Prior to the CRA, banks were denying the working poor opportunities to invest in their own communities, but giving those opportunities to rich people who wanted to gentrify neighborhoods. The abuse of the CRA came from banks that chose to exploit the working poor who sometimes had little understanding of what they could afford. There was never a requirement for banks to lend money to people who could not afford it, and frankly no one ever expected they would. But, a problem with our system is that a corporation's responsibility is to the shareholder, so the opportunity for short-term gain at the risk of long-term loss was often chosen by banks. It's also worth noting that the primary culprits in the mortgage mess, from a lending point of view, are nonbank lenders, who were not subject to the CRA.
     
  6. Fogbuster

    Fogbuster Pro Bowl Player

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    Of course I don't oppose the intention of the CRA -- to enable people to own their property instead of just renting it -- but it was fundamentally flawed in its implementation. By removing all personal responsibility from the borrower, and putting everything into a "guarantee" underwritten by Fannie and Freddie (which is in reality the U.S. tax-payers), the door was swung WIDE open for wholesale cheating, lying, and overall scamming of the entire mortgage system. Which is [highlight] exactly and precisely[/highlight] what has happened.

    The road to hell is paved with good intentions, and this legislation proves it as clearly as the sun rising in the east each day.


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  7. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    If you choose to do the "hard work" here is the whole report from the FBI.. not much about the CRA, a whole lot about greed...the report lists three "schemes" that have little to do with the person obtaining the funds, but a whole bunch about the lenders and orther perps who are stealing people blind...

    Federal Bureau of Investigation - 2008 Mortgage Fraud Report “Year in Review”

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  8. Fogbuster

    Fogbuster Pro Bowl Player

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    Never said the FBI emphasized the damage done by the CRA, et.al. .... in fact, never said it even mentioned it. What, you cannot add 2 + 2??? You cannot connect the dots??? Can't read between the lines??

    Some people seem to need to see all the results printed out in long form, posted to the web (by a site *they* approve of :rolleyes: ) before they will even put their minds into gear. Can we all say "child-like" or "immature" or "not ready for adult responsibility"???

    The underlying message of the CRA is: "the US government is now going to guarantee mortgages to any and all who sign up for them; we don't care who you are, what your income status is ('cause you can lie about that, anyway, and we'll never check to find out the truth), or what you plan to do with the property you get from our guaranteed (with TAX-PAYERS' monies), and YET all this will make America better."

    And I say: hoss manure. Bull-crap. (Just for PressCover and any other natural bodily function prudes). For everyone else I say: no damned way is that good for America (or any other country that tries it,..... which they DON'T!!! Hmmm, guess some people can smell the coffee in this world after all. Too bad a lot of today's Americans are not reading those memos.)

    Anybody who thinks the sharks and scam artists, grifters and 3-card monte players were NOT attracted to that totally screwed up CRA legislation like hyenas to a fresh kill are simply fooling themselves, no one else. The CRA was a carte blanche open invitation for any and all types of lying, cheating, and fraud to hit Wall Street and every bank in America because, as Bill Clinton said: "Why did I do it (Monica)?? Because I could."

    Someone wise once said: "You can fool some of the people all of the time, and all of the people some of the time, but you CANNOT fool all of the people all of the time."

    Have a nice day, and don't forget my offer: if the CRA is still in existence in 20 years, you can have my entire estate; if it ain't, I get yours.

    The CRA is the poison pill to end all poison pills.


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  9. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    This thread is about mortgage fraud reported by the FBI, you ranted and raved about the fraud having to do with the CRA but the fraud in question has to do with the greed of the mortgage brokers.. that is all.. no need for exhaustive sermons on the CRA, you have made your point.
     
  10. Fogbuster

    Fogbuster Pro Bowl Player

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    Good. And don't forget it!! :D




    "It ain't over 'til it's over." -- the Yog

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