Have any owners of mortgage companies been proscecuted for fraud. i went to see a house today where the house had an fha loan against it for $270k yet the house has never been worth more than $195k. the mortgage co. Went bankrupcyt after the owner became rich off the tax payers backs. now the owner is starting a new mortgage company. why not?
he never got in trouble for having a pattern of doing loans that appears to be fraud. have any owners been punished or are they all closing their companies, going bankrupct, open new companies and starting the pattern all over again.
it is easy to figure out if there is a problem. all you have to do to start with companies that have a pattern of mortgage that are going into foreclosure. some companies are over 55% deliquent. These are the companies that need to be looked at. taxpayers are paying for the lack of supervision of this problem. what is fha doing about it? what are fnma and fre doing about it? i don't hear a thing about it. i hear people having a problem with cfc but fha is never put on the hook for this significant problem. this problem is much bigger than cfc because the tax payers are going to have to pay for the fha mistake without question
It was all in the name of deregulation and free market. NOBODY was going to kill the goose that kept laying golden eggs. The big banks (JPM, C, Wamu, Countrywide, etc) were all complicit in the scheme. Mortgage brokers were just that...middle men who matched the fool with the lender to seal the deal. Yes, they closed up shop and moved on.
You know, its all relative. The wealthy and elite got fleeced by Madoff, the middle class got screwed by Wall Street, and the poor got their services slashed.
We are all in the same boat, and The Titanic hit an iceberg.