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 Post subject: Borrowers caused the mortgage crisis
PostPosted: 04 Apr 2008, 13:33 
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There has been plenty of talk about “predatory lending,” but “predatory borrowing” may have been the bigger problem. As much as 70 percent of recent early payment defaults had fraudulent misrepresentations on their original loan applications, according to one recent study. The research was done by BasePoint Analytics, which helps banks and lenders identify fraudulent transactions; the study looked at more than three million loans from 1997 to 2006, with a majority from 2005 to 2006. Applications with misrepresentations were also five times as likely to go into default.

Many of the frauds were simple rather than ingenious. In some cases, borrowers who were asked to state their incomes just lied, sometimes reporting five times actual income; other borrowers falsified income documents by using computers. Too often, mortgage originators and middlemen looked the other way rather than slowing down the process or insisting on adequate documentation of income and assets. As long as housing prices kept rising, it didn’t seem to matter.

In other words, many of the people now losing their homes committed fraud. And when a mortgage goes into default in its first year, the chance is high that there was fraud in the initial application, especially because unemployment in general has been low during the last two years.


http://www.nytimes.com/2008/01/13/busin ... ref=slogin

FBI Will Not Go After Borrowers Who Lied on Mortgage Applications



http://www.freerepublic.com/focus/f-news/1974459/posts

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So there you have it. Even though it's a federal crime to lie on your loan application, which is a fine of $10,000 and up to 99 years in jail, the FBI is not going to investigate or prosecute any liars. None at all.

In the end, this part of the story will be forgotten. The populist and liberal views of the crises are what will transform the new policies of the nation, as can be seen with all the new proposed Fed regulation over the banks. It's all bullshit. Let me know what you think. Sorry this post was so long.
pikeshouse88 is online now Reply With Quote


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 Post subject: Re: Borrowers caused the mortgage crisis
PostPosted: 05 Jun 2008, 20:16 
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They should go after the people who lied about their finances. They should not forgive any loan nor should the govn't intervene.


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 Post subject: Re: Borrowers caused the mortgage crisis
PostPosted: 06 Jun 2008, 10:10 
Buster Himen
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Its stupid. I will never understand of all the things to lie about why lie about your income. It means you cant pay for it so why buy it.

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"I went to a general store. They wouldn't let me buy anything specifically."


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 Post subject: Re: Borrowers caused the mortgage crisis
PostPosted: 18 Jun 2008, 15:50 
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what sucks about a democracy is the people will vote for anyone who will give them something free (a bailout) and the lazy end up enslaving the wealthy and hard working


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 Post subject: Re: Borrowers caused the mortgage crisis
PostPosted: 18 Jun 2008, 17:01 
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Why would people even try to live within their means anymore though, it so easy to be percieved as "the Jones'".


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