It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

FBI Opens Subprime Inquiry

page: 1
1

log in

join
share:

posted on Jan, 31 2008 @ 12:32 PM
link   

FBI Opens Subprime Inquiry


www.iht.com

The FBI said it was looking into possible accounting fraud, insider trading or other violations in connection with loans made to borrowers with weak, or subprime, credit.

The agency declined to identify the companies under investigation but said the inquiry, which began last spring, involves companies across the financial industry, including mortgage lenders, loan brokers and Wall Street banks that packaged home loans into securities. It is unclear when charges, if any, might be filed.
(visit the link for the full news article)


Related News Links:
www.nytimes.com




posted on Jan, 31 2008 @ 12:32 PM
link   
Well, it's about they are looking into this!

Loaners, I believe, were giving people the impression that they would be able to afford their mortgages, even though deep down they knew by looking at the persons yearly income and credit card debt and any other financial burdens that there was no way they could afford the payments.

According to the article,



The FBI has been warning for years that mortgage fraud is a significant and growing problem. In the 2006 fiscal year, it documented 35,600 suspicious-activity reports related to mortgage fraud, up from 22,000 the year before and as few as 7,000 in 2003.



Living in Florida, we watched our town get overwhelmed by developers that just marched north from south Florida just building development after development. The housing industry bottom fell out AFTER they were building here. Now they can't even sell these homes, most are up for rent now.

Florida got hit hard when the bottom dropped out, these developers were building houses in price ranges that were above the norm in this area and the mortgage companies were letting people get loans for them, even if they couldn't really afford it!

Even though the person who signed the papers to buy a home is also at fault, for over extending their financial capabilities, I feel the lenders are really at fault more. They are the "FINANCIAL EXPERTS", it is up to them to ensure that the person they are giving a loan to can AFFORD the payments.

Most everybody wants to own their own home, these lenders were telling people who couldn't afford to that they could!

www.iht.com
(visit the link for the full news article)



posted on Jan, 31 2008 @ 01:17 PM
link   
ongoing Breaking Alternative News item here:

www.abovetopsecret.com...

please continue the discussion there.



 
1

log in

join