November 24, 2006

Gee, what a shock - a corrupt mortgage broker forges papers to collect her commissions

Just watch the video report.

And then tell me this out of control scummy industry full of con men, liars, cheats and fraudsters powered by the lure of big commissions doesn't need oversight and regulation.

We (and the Chinese bag-holders) look back on these days and wonder how we let the system run so out of control for so long.

10 comments:

Anonymous said...

Why have they not arrested the mortgage broker yet? What are the waiting for -- a signed confession? Oh wait a second she would probably forge that one too.

Anonymous said...

The chinese are holding a lot of bags but not that many.

If you want to know where most of all these defaulted loans will ultimately end up. Look no further than your pension plans.

keith said...

there are so many to arrest for mortgage fraud (why is Casey Serin still scott-free) that I don't think the government has the resources or where-with-all to start

Anonymous said...

it has become a free-for-all...! kind of like illegal immigration. "Come-on in and break are laws..."

buzz kill said...

Mortgage fraud is not illegal. They will never prosecute even half of these people, ever. If you are single and have no money you may as well go for it!!

Anonymous said...

I can see less than 10% of everyone who committed fraud ever see the inside of a courtroom let alone jail. However I see a ton of regulations comming our way and I can totally see a new army of IT engineers at the mortgage lenders writing code to help enforce the new standards. Like SOX for financial industry.
Cool.
Cow_tipping.

Metroplexual said...

I thought you embraced less gov't Keith? friedman would have said the free market will control for its excesses. B.S.

Anonymous said...

friedman would have said the free market will control for its excesses. B.S.

I agree, let's stop with the Friedman-worship.

He has the same problem with all fundamentalists: everything is always the same problem and has the same solution. Communists had the same problem. Dick Cheney thinks the answer to anything is "more tax cuts for the rich".

Specifically what the Ayn Randian-deluded libertarians (M.F. and A.G.) ignore is the major frequency of "information crimes"---mortgage fraud is one of them.

Real economics, which includes behavioral economics, and empirical study of what happens in reality as opposed to what they THINK people ought to be doing, is more complicated than the fundies want to believe.

Anonymous said...

Couldn't watch the video because of computer problems, so maybe this was about the Seattle case.

But if not, some broker in Seattle was caught taking money from would-be homebuyers who could not, really qualify for loans and then writing up paperwork for other unsuspecting previous clients who *could* have bought another home.

The person who "bought" the house ends up with no home a few months after they move in and the person with the better financials whose signature was forged on the mortgage docs finds out they own a home that's now in foreclosure and their credit is ruined of course.

How much jail time for the broker???? Lots of sleaze out there. the cases get more bizarre by the week.

Mortgage victim said...

Here is a good one for ya. Here in Arizona there is a mortgage "specialist" that put some unsuspecting people in to mortgages. Of course along the way collecting big commissions. Well guess what this guy used to do? Anyone....Anyone. He used to be a Judge. You got it, a judge. Well on the surface that seems like "Hey this guy is an ex-Judge, he is trustworthy right" Yea, it all looks good until you dig under the surface. And you ask yourself, why would a Judge leave a lucrative career, fortune, a great pension, prestige etc. Well folks -This "Judge" was indicted in Tempe Arizona for embezzling - are you ready for this - 2 million dollars from not only the City of Tempe, but from old ladies that he conned in to investment schemes. Seems the Judge had a bit of a gambling problem, and took the ill - gotten gains from the older folks and the city and went to Vegas. He went to jail for years. Then when he was released from prison - naturally he gravitated to the mortgage industry - while still on parol. It gets better, apparently the lure of big money was not enough working for someone else, he then went out and got a banking license through another broker that has recently been indicted by the DA for major mortgage fraud. I can only imagine the pain that the families this con man got in to "loans" must be dealing with. Yes folks, the truth IS stranger than fiction. I think that the "Judge" is currently wanted and probably living in hiding. Now, anyone that thinks there is not a reason for regulation in this industry is either living on another plane of existance or is drawing commissions themselves....plain and simple.