Sense on Cents

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…)