Posts Tagged ‘mortgage fraud’
Posted by Larry Doyle on February 12th, 2012 5:34 PM |
In a nation now all too familiar with a “too big to fail” banking system, a heavily manipulated and high frequency dominated equity market, and an incestuous financial regulatory system, we should not be surprised with a mortgage settlement that does little more than ‘piss into the wind’.
Pardon my cynicism, but one does not need to look too deeply into the recently announced mortgage settlement to understand there is little in the way of meaningful justice embedded in this contrivance. (more…)
Tags: Ally Financial, American Banker, Bank of America, Citigroup, details of mortgage settlement, high frequency trading, JP Morgan Chase, justice within mortgage settlement, Missing Settlement Documents Raise Doubts About $25B Deal, mortgage abuse, Mortgage Crisis, mortgage fraud, mortgage servicers, mortgage settlement, Mortgages, piss into the wind, pissing into the wind, regulatory capture, RICO Act, robo-signing, the regulators work for us, too big to fail banking system, Wall Street conspiracy, Wall Street-Washington incest, Wells Fargo
Posted in General, Mortgage Cram-Down, Mortgage Crisis, Mortgages | 3 Comments »
Posted by Larry Doyle on May 4th, 2011 11:50 AM |
A month ago I questioned whether there was sufficient evidence of abusive and fraudulent practices in the mortgage business on Wall Street (underwriting, servicing, securitizations, etc) to make a case that the industry as a whole violated the Racketeering Act? I would not expect that our ‘leaders’ in Washington would ever think about making that case; that said, I think there is plenty of reason to believe that a very real case could be made.
What will we likely see? Perhaps a number of individual cases. We witness just such a situation today with news that the Department of Justice yesterday filed a lawsuit against Deutsche Bank for lying about the quality of loans made by a mortgage subsidiary of the German bank. (more…)
Tags: 60 Minutes April 3 2011, 60 Minutes piece on mortgage foreclosure problem, 60 Minutes Scott Pelley, banks forging mortgage documents, Deutsche Bank, did Wall Street violate RICO Act, Federal Housing Administration, FHA, forgery in mortgages, forging mortgage docs, fraud and lying at Mortgage IT, fraud in mortgage business at, fraud in mortgage business at Bank of America a, fraud in mortgage business at Citigroup, fraud in mortgage business at Countrywide, fraud in mortgage business at JP Morgan, fraud in mortgage business at Washington Mutual, fraud in mortgage business at Wells Fargo, fraud in mortgage business on Wall Street, lying about loans, lying about quality of loans, mortgage foreclosure fraud 60 Minutes, mortgage fraud, mortgage fraud 60 Minutes, mortgage fraud on Wall Street, Mortgage IT, mortgage securitization fraud, mortgage securitization process, mortgage servicing fraud, mortgage underwriting fraud, racketeering on Wall Street, RICO Act, robo-signing, violation of racketeering act, violation of RICO Act, Wall Street, Wall Street and RICO Act, Wall street fraud, who authorized mortgage robo-signing, who is Lisa Green, who is Mortgage IT, you never find just one mouse, you never find just one rat, you never find just one rodent
Posted in General, Mortgage Crisis, Mortgages | 54 Comments »
Posted by Larry Doyle on April 14th, 2011 10:16 AM |
I have long believed and written extensively that I thought our nation experienced extensive fraud in the mortgage origination industry in the first decade of this century. That fraud was then conveyed throughout our markets and economy via the securitization process on Wall Street. Many people, divisions, departments and firms profited along the way while regulators were negligent, incompetent, or both.
While only a select few individuals in the mortgage origination industry have paid any type of price for engaging and promoting this fraud, our nation as a whole has paid a very heavy and steep price. I find this reality to be reprehensible and hold our nation’s banking regulators in contempt for allowing this gross injustice to transpire. Even to this day the banks and mortgage servicers involved in the initial fraud and having engaged in ongoing abusive business practices are poised to get a slap on the wrist and little more for their practices. (more…)
Tags: bank settlements, Barry Kaplan and Kerry Killinger, FDIC and WAMU, Kerry Killinger, loan fraud, mortgage fraud, mortgage servicers, Office of Thrift Supervision, OTS negligence with WAMU, Wall Street racketeering, Wall Street securitization process, WAMU Hawaii Trips Drove Risk as Regulator Failed, WAMU loan fraud, Washington Mutual mortgage fraud
Posted in General | 8 Comments »
Posted by Larry Doyle on June 18th, 2010 9:20 AM |
Financial distress leaves people increasingly vulnerable to financial predators and resulting financial scams and fraud. With homeowners increasingly underwater on their mortgages, the scum in our society are diligently pursuing and perpetrating their vile works. Homeowners looking to modify their mortgages or otherwise investigating avenues of financial assistance need to be exceptionally careful at this point in time.
What should homeowners do? I would highlight two recommended paths. In my local paper this morning were rules of the road to Avoid Becoming a Victim of Fraud:
According to an FBI advisory, these are steps to take to avoid becoming the victim of mortgage fraud: (more…)
Tags: Avoid Becoming a Victim of Fraud, FBI advisory to avoid mortgage fraud, Federal Reserve stopfraud.gov Sr, financial scams and frauds, foreclosure counseling, foreclosure fraud and scams, Housing and Urban Development, how to prevent mortgage fraud, how to protect against mortgage fraud, HUD, low cost mortgage counseling, modifying mortgages and fraud, mortgage counseling, mortgage fraud, mortgage modification frauds, tips on spotting mortgage scams and frauds, where can I get low cost mortgage counseling
Posted in financial frauds, General, Mortgage Crisis, Mortgages | No Comments »
Posted by Larry Doyle on April 21st, 2010 12:04 PM |
High five to 12th Street Capital for pointing out the quarterly release of the Special Inspector General for the Troubled Asset Relief Program. While this report covers a wealth of topics, let’s zero in on the SIGTARP’s summation of the Treasury’s HAMP (Home Affordable Modification Program).
As our friends at 12th Street write:
Ultimately, the report goes on to focus on HAMP and I would say this sums it up best:
“In sum, until Treasury fulfills its commitment to provide a thoughtfully designed consistently administered, and fully transparent program, HAMP risks being remembered not for catalyzing a recovery from our current housing crisis, but rather for bold announcements, modest goals, and meager results.”
(more…)
Tags: 12th Street Capital, big hat no cattle, failed financial regulation, fraud in mortgage modifications, government support for housing, HAMP April 2010, Home Affordable Modification Program, mortgage fraud, Neil Barofsky April 20 2010, SIGTARP report april 20 2010, TARP, Tim geithner on HAMP, U.S. Treasury on HAMP
Posted in General, SIGTARP | 1 Comment »
Posted by Larry Doyle on April 7th, 2010 3:41 PM |
Does anybody have any doubt that massive fraud within our mortgage industry played a large part in our current economic crisis? America continues to suffer from the fakers and phonies within our financial regulatory structure (including Alan Greenspan) who fail to accept responsibility for their shortcomings and the resultant frauds.
The mortgage fraud grew over time in order to feed the Wall Street machine the collateral it needed to execute a wide array of structured transactions. This need for increasing volume of mortgage originations was a critical point in one of my earliest blog posts written in November 2008, “The Wall Street Model is Broken… and Won’t Soon be Fixed!!” I wrote: (more…)
Tags: Alan Greenspan, Citigroup, Citigroup consumer lending, Citigroup Underwriter Warned of Mortgage Lapses, David Bushnell, Fannie Mae, FCIC, Financial Crisis Inquiry Commission April 7 2010, financial frauds, financial regulators, Freddie Mac, Gary Crittenden, Mortgage Crisis, mortgage fraud, mortgage originations, Mortgages, originate to distribute, private profit social loss, Richard Bowen, Richard Bowen testimony April 7 2010, Robert Rubin
Posted in Citigroup, General, Mortgage Crisis | 5 Comments »
Posted by Larry Doyle on January 27th, 2010 9:54 AM |
When people lose a lot of money, it’s no surprise that they find a lot of lawyers and a lot of reasons to start bringing lawsuits.
Talking about losses, I first introduced readers to the expected red ink within the Federal Home Loan Bank (FHLB) system last May. I wrote “FHLBs: Red Sea, Dead Sea or Both?” and “Freddie Mac, Fannie Mae Deja Vu?” to highlight the embedded losses within the FHLB system. The losses are centered in the massive mortgage portfolios within the system. The toxic waste within a lot of these mortgages is now being realized in terms of actual losses as an ever increasing percentage of the mortgages default. What’s the result? Let’s go to court.
Thank you to a loyal Sense on Cents supporter for highlighting a developing lawsuit. The FHLB-Seattle is effectively suing all of Wall Street. This suit and its underlying roots deserve significant broad based coverage. Why? (more…)
Tags: 3.9 Billion in mortgage suits filed by FHLB-Seattle, credit not flowing into economy, Federal Home Loan Bank Seeks to Recoup Securities Investment, Federal Home Loan Banks, FHLB mortgage portfolios, FHLB Seattle sues Countrywide Bear Stearns, FHLB Seattle sues Goldman JPM Morgan Stanley Barclays, FHLB Seattle sues RBS UBS Deutsche Bank Credit Suisse Bankof America Merrill Lynch, FHLB-Seattle losses, FHLB-Seattle sues Wall Street, FHLBs, fraud on Wall Street, fraud with sale of mortgage securities, fraud within mortgage underwriting, fraud within securitization of mortgages, lack of credit, mortgage fraud, mortgage losses in Federal Home Loan Banks, suits against Wall Street, The Pittsburgh Business Times, toxic waste within mortgage securities of FHLB system, why isn't credit flowing into economy
Posted in Federal Home Loan Banks, General | 5 Comments »
Posted by Larry Doyle on January 16th, 2010 12:53 PM |
The bailing out of our largest financial institutions was a violation of moral hazard of the greatest magnitude. With that violation well in place, America is now facing violations of other moral hazards. What do I mean?
The mortgage modification program is a joke because the banks holding the mortgages have no incentive in modifying them. Why? Because, to a very large extent, if the bank modifies the primary mortgage then it has to write off the value of a second lien, if in fact a second lien exists. Given the amount of equity borrowers took out of their homes, there are a lot of second liens outstanding.
How are the banks handling these second liens? Violating a moral hazard and committing fraud in the process. A report from CNBC, Big Banks Accused of Short Sale Fraud, highlights this reality. The report outlines: (more…)
Tags: bank fraud, Bank of America secon dlien fraud, Bank of America second lien fraud, Big Banks Accused of Short Sale Fraud, Citigroup second lien fraud, crony capitalism, HUD statement on second lien fraud, JP Morgan second lien fraud, moral hazards, Mortgage Crisis, mortgage fraud, mortgage problems, negative equity in mortgages, problems with second mortgages, second lien holders, second lien holders committing fraud, second liens, second mortgages, short sales, taking out equity in mortgages, violation of moral hazards, Wall Street oligopoly, writing off second mortgages and second liens
Posted in General, Mortgage Crisis, Mortgages | 3 Comments »
Posted by Larry Doyle on January 12th, 2010 3:33 PM |
Last August, our friends at 12th Street Capital highlighted the strong likelihood of increased mortgage fraud by brokers originating loans with FHA insurance. In my piece “Fair and Fraudulent Mortgage Lending,” I referenced the stellar work and perspectives provided by KD and his 12th Street team. I wrote:
Where can one go to receive a fair deal in the process of getting mortgage financing? What parts of the mortgage market may represent the next wave of fraud? Which firms may currently be involved in these frauds?
Major “high five” to KD and our friends at 12th Street Capital for providing tremendous perspectives on these topics this morning. KD writes:
From the Fair Mortgage Collaborative website . . .
The Fair Mortgage Collaborative is a nonprofit membership organization whose members are individually and collectively committed to providing low and moderate income and minority homeowners and homebuyers access to mortgages with the consumers’ best interests at its core, at a fair rate of compensation. Our approaches and standards work for all homeowners and homebuyers.
KD’s comment: “While I certainly applaud their effort, I would make the friendly suggestion they should be looking at FHA lenders and Reverse Mortgage lenders in particular . . . for those are the bastions of future (and current) abuses.”
What do we learn today, five months later? The Wall Street Journal reports on a number of mortgage firms being subpoenaed for the very activities highlighted by 12th Street last August. (more…)
Tags: 1st Advantage Mortgage mortgage fraud, Alacrity Financial services mortgage fraud, Alethese LLC mortgage fraud, American Investment group mortgage fraud, American Sterling bank mortgage fraud, Assurity financial services mortgage fraud, Birmingham bancorp mortgage fraud, D and R Mortgage mortgage fraud, default rates on FHA loans m, Dell Franklin mortgage fraud, Fair Mortgage Collaborative, Federal Housing Commissioner David Stevens, FHA defaults, FHA insurance and fraud, FHA lenders and mortgage fraud, First tennesse Bank mortgage fraud, First Tennessee Bank, HUD Inspector general Kenneth Donahue, HUD subpoenas 15 mortgage firms, mac-clair Mortgage mortgage fraud, mortgage financing fraud, mortgage fraud, mortgage fraud in FHA lending, Pine State Mortgage mortgage fraud, Security Atlantic Mortgage mortgage fraud, Sterling national mortgage fraud, Webster bank mortgage fraud
Posted in 12th Street Capital, General, Mortgage Crisis, Mortgages | 4 Comments »
Posted by Larry Doyle on November 3rd, 2009 10:34 AM |
Fraudulent actions must have consequences.
How is it that with trillions in financial losses and a variety of financial frauds readily apparent, very few individuals have been held accountable? FL, a loyal reader of Sense on Cents, has banged this drum repeatedly.
Why hasn’t this fraud been more aggressively combated? The influence of the banking lobby, primarily over the federal regulatory oversight of the financial industry.
What a shame. Are there some new sheriffs, those being state attorneys general, getting ready to ride into this mess? It would appear they are. I immediately thought of our friend FL upon reading The New York Times report, States Are Pondering Fraud Suits Against Banks.
The banking industry at large has worked in concert with its lobbyists and trade associations to keep regulators and law enforcement at bay. At the federal level, the banks have largely been successful. That success begs the question as to how deeply embedded the lobbyists are in the regulatory community. (more…)
Tags: Andrew Cuomo, attorneys general fighting mortgage fraud, Eliot Spitzer, fraud, mortgage fraud, OCC, office of the Comptroller of the Currency, power of banking lobby, States are pondering fraud suits against banks
Posted in Banking Institutions, General, regulation, Wall Street | 5 Comments »
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