Mortgage Fraud
September 29th, 2006 by 
reality
There is much anecdotal evidence that one of the inflators of the housing bubble has been mortgage fraud - fraudulent appraisals, “cash back to buyer”, straw buyers and credit fraud, especially on stated-income loans.
The mainstream press is finally starting to pick up on this elephant in the room. Here is a report from the L.A. Times, and here a CBS video on “liar’s loans”.
Moving with its usual alacrity, the government is finally closing the stable door, at least on the lying about income. It is also finally issuing guidance on the most toxic loans, option-ARMS. That must mean it’s really over.
Posted in Real Estate, Rogues and Rascals | 