Yet you are guilty as well. I blame the bankers, yet you prefer to lay full blame upon consumers, many whom are only generally unsuspecting and
Laughable. Have you read what the FBI had to say at the time about rampant mortgage fraud by organized rings of criminal mortgage brokers, borrowers,
title companies, and appraisers?
Let's take a close look at what the FBI stated as early as 2008:
"Mortgage fraud is a material misstatement, misrepresentation, or omissions relied upon by an underwriter or lender to fund, purchase, or insure a
loan." The lender - in this case, a bank - is the patsy that gets swindled by the borrower, not the other way around.
Banks lost big time:
"SARs (Suspicious Activity Reports filed by banks) reported in Fiscal Year 2008 revealed losses of more than $1.4 billion, an increase of 83.4
percent from Fiscal Year 2007."
Read that again. In 2008, banks reportedly lost $1.4 Billion on frauds perpetrated by borrowers, and mortgage brokers.
Heck, these same criminals even dipped into the Reverse Mortgage fraud arena:
"Unscrupulous loan officers, mortgage companies, investors, loan counselors, appraisers, builders, developers, and real estate agents are exploiting
Home Equity Conversion Mortgages (HECMs)—also known as reverse mortgages—to defraud senior citizens. They recruit seniors through local churches,
investment seminars, television, radio, billboard, and mailer advertisements, to commit the fraud primarily through equity theft, foreclosure rescue,
and investment schemes."
These same criminals will even go so far as to burn the house to the ground to avoid foreclosure:
"Homeowners, property flippers, and investors are committing arson to avoid real estate foreclosure."
So, take a close read of the FBI reports from 2007 through the present. The FBI squarely places the blame for the current crisis on criminal
borrowers and their cohorts -- all of whom colluded to defraud banks. Many of these mortgage fraud rings were orchestrated by organized crime. These
rings used highly sophisticated techniques to deceitfully defraud the banks:
"Street gangs such as the Conservative Vice Lords, Black P. Stone Nation, New Breeds, Four Corner Hustlers, Bloods, and Outlaw Motorcycle Gang are
also involved in various forms of mortgage loan origination fraud as a means to launder money from illicit drug proceeds. Additionally, African,
Asian, Balkan, and Eurasian organized crime groups have also been linked to various mortgage fraud schemes."
Per the FBI's report on Mortgage Fraud in 2009, banks were the losers:
"According to the Federal Deposit Insurance Corporation (FDIC), 140 banks failed in 2009, costing the nation’s Deposit Insurance Fund $37.4
Why do you think more than 300 banks failed in the past few years? Because of mortgage fraud perpetrated by borrowers. Good grief:
"Loan origination fraud schemes involve falsifying a borrower’s financial information—such as income, assets, liabilities, employment, rent, and
occupancy status—to qualify the buyer, who otherwise would be ineligible, for a mortgage loan. This is done by supplying fictitious bank statements,
W-2 forms, and tax return documents to the borrower’s favor. Perpetrators also employ the use of stolen identities."
The truth is, none had been jailed for their fraud.
Not true. The former CEO of ex-mammoth mortgage giant Taylor, Bean & Whitaker was convicted and sent to jail for crimes perpetrated against Colonial
Bank. His crimes resulted in the 6th largest bank failure in U.S. history.
Even at small community banks, such as FirstCity Bank in Stockbridge, Georgia, have resulted in successful prosecutions. FirstCity's CEO and SVP
Lending Officer are in jail for their financial crimes.
can any govt constitutionally direct a banker on what to do, or had any govt official pressed a gun barrel to a banker or bankers head to tell him to
Yes, they can and did. In fact, the banks were threatened intensely by politicians if they didn't start aggressively lending to sub-prime borrowers,
especially in lower class neighborhoods. They were threatened with further regulation, fines, and stiff penalties if they didn't loosen lending
standards. It was government interference at its worst.