July 12, 2008

ARRESTTALK - Open thread to talk about the upcoming arrests of Michael Perry, Angelo Mozilo and the thousands of REIC who got us into this mess

Frog marches all around...

Posted by blogger at 7/12/2008

20 comments:

Anonymous said...

What's a "frog march"? Is it anything like a "perp walk"?

July 12, 2008 12:49 AM
Anonymous said...

soon one ounce of gold will buy a house

July 12, 2008 1:11 AM
E said...

Finally, an appropriate punishment:

Michael Perry on death row.

July 12, 2008 2:07 AM
Anonymous said...

Is michael perry gay too?He looks lie casey serins friend.Hope he has fun with bubba in the can.

July 12, 2008 2:47 AM
Anonymous said...

Arrest Greg Swann

July 12, 2008 4:01 AM
Anonymous said...

How the master idiot G Bush

July 12, 2008 5:10 AM
blogger said...

I've got a feeling that Mozilo and Perry will be arrested on the same day and that it will happen by the end of August

July 12, 2008 2:26 PM
Anonymous said...

Examples of mortgage fraud

Occupancy fraud: Frequently this is seen where the borrower wishes to obtain a mortgage to acquire an investment property, but instead the borrower claims on the loan application that they will occupy the property as their primary residence or second home. If undetected, the borrower typically obtains a lower interest rate than was warranted. Because lenders typically charge a higher interest rate for non-owner-occupied properties, which historically have higher delinqency rates, the lender receives insufficient return on capital and is over-exposed to loss relative to what was expected in the transaction.

Employment/income fraud: Borrowers may overstate income in order to qualify for a larger loan amount. This is most often seen with so-called "stated income" (popularly referred to as "liar loans") mortgage loans, where the borrower declares their income without verification. It is sometimes seen in traditional full-documentation loans where the borrower alters an employer-issued Form W-2 to overstate income. Another example is to claim income from self-employment without documentation to prove that the borrower's business even exists.

Failure to disclose liabilities: Borrowers may conceal obligations, such as mortgage loans on other properties or newly acquired credit card debt, in order to reduce the amount of monthly debt declared on the loan application. This is pertinent because the debt-to-income ratio is a key underwriting criterion to determine eligibility for most mortgage loans, and the omission of liabilities artificially lowers the debt ratio, allowing the borrower to qualify for a bigger loan.

Mortgage fraud ring: A more complex scheme involving multiple parties in a financially motivated attempt to defraud the lender of large sums of money. One possible scheme includes a straw borrower whose credit report is used, a dishonest appraiser who intentionally and significantly overstates the value of the subject property, a dishonest attorney who prepares two sets of HUD closing documents, and a property owner, all in a coordinated attempt to obtain an inappropriately large loan. If undetected, a bank may lend hundreds of thousands of dollars against a property that is actually worth far less. The parties involved share the ill-gotten gains and disappear without making payments on the mortgage.

Appraisal fraud: If a home's appraised value is deliberately overstated, more money can be obtained by the borrower in the form of a cash-out refinance or obtained by the seller in a purchase transaction. A dishonest appraiser may inflate the value, or someone with knowledge of graphic editing tools such as Adobe Photoshop can alter an appraisal. In many cases of mortgage fraud, the appraisal is involved..

Cash-Back Schemes: The buyer and seller or the buyer and real estate agent collude to deceive the lender as to the true sale price of a property. The seller or the real estate agent gives the buyer a cash rebate which is not disclosed to the lender. As a result the lender lends too much, and the buyer and/or seller pocket the overage. This scheme usually requires appraisal fraud to deceive the lender. "Get Rich Quick" real-estate gurus' courses frequently rely heavily on this mechanism for profitability.

Shotgunning: When a person takes out multiple loans for the same home simultaneously the term is shotgunning. Typically after committing the mortgage fraud, the person or persons leave the country. This method fraud has become much less common with the advent of on-line computerized credit reporting.

Identity Theft: When a person assumes the identity of a home owner and takes out a mortgage on their property. Sometimes this is part of a mortgage fraud ring where a seller assumes the identity of the home owner, and a buyer who seeks the mortgage to buy the house; both of whom are using false identities, share the ill-gotten gains and disappear without making payments on the mortgage.

July 12, 2008 3:17 PM
Anonymous said...

No frog marches, No perp walks, No nothing. Just massive amounts of fraud money taken.

They all get away scott free less their bribe monies paid to dishonest Senators and Conresspeople, et. al.

America/ns are corrupt and shameless. The financial markets are melting down, fast.

Look for a Bushco-Cheneyburton engineered tragedy/attack soon to take your sheeple infantile mind off of the reality that America is now a socialist nation and democracy and rule of law no longer exists.

Enjoy your cheese doodles and 11 mpg vehicles shit for brains.

I will teach every youngster I can influence to lie, cheat and steal as much as they can.

Lying, cheating and stealing are the New American Values. Ask any 'politician' professional or otherwise.

Fuck America.

July 12, 2008 3:22 PM
Anonymous said...

Keith, IF these guys are arrested, it will not be this year. Neither political party wants the public to know of their level of corruption during an election year.

Think about it.

July 12, 2008 3:45 PM
Anonymous said...

Fannie overstated its earnings by $10.6 billion from 1998 through 2004, and its chief executive Franklin Raines lost his job, before joining the Obama campaign as an expert on the "New Type of Politics".

Things that make you go Hummm.

July 12, 2008 6:42 PM
Anonymous said...

Hey! If the dollar is now worth 42% less than it was in 2001,and 95% less than 1933 then gasoline ,even at 5.00 dollars/gal is still lower at the pump.Right?So quit whining ,and vote,everything is cool,don't worry we got it.

July 12, 2008 10:29 PM
Anonymous said...

I doubt those corrupt bastards are going to end up in jail... but I'm hoping.

July 13, 2008 12:41 AM
Anonymous said...

Too_Big_To_Fail...

NONE of these guys will be arrested. Maybe a fake CONgressional hearing ot two, but NO jail time for any of the big guys.

July 13, 2008 12:42 AM
Anonymous said...

This whole national/global financial fiasco has organized crime written all over it. And while the word 'organized' is rarely used in conjunction with any rational analysis of this administration's woeful track record, it soon will be.

July 13, 2008 3:08 AM
Anonymous said...

Arrest rich and well connected criminals? That is so not going to happen in Bush's America.

July 13, 2008 3:42 AM
Peahippo said...

Keith, the Tanman won't be arrested. By the time the damage he did becomes too obvious to ignore, the nation will be in the midst of a Great Depression, therefore the FBI will have a lot more violent crimes to pursue.

The Tanman wins. I'm sorry that that happened, but it's still true. He robbed shareholders, but he didn't do it BLIND, since he did it only by the cooperation of the people he was stealing from.

And until we return to actually REGULATING this thing called "Capitalism", guys like the Tanman will very likely win all the time. We also need a cultural shift, since there are few people who wouldn't have done what the Tanman did. You see, even if the Tanman gets 5-to-10, he'll still have tens of millions salted away where no individual government can get to it. Even if by some bizarre and wholly unlikely twist of fate he's jailed, he'll still be one of the wealthiest men on earth.

July 13, 2008 5:44 AM
E said...

Michael Perry may or may not be gay, but he's married. Wife Nancy also donated $2,300 to Dodd.

Anyone wanting to ask Mike and Nancy why a San Marino, California couple would be giving $4,600 to a Connectictut Senator can find their phone numbers on Zabasearch.

July 13, 2008 3:21 PM
Anonymous said...

"...Congress said...

Hey! If the dollar is now worth 42% less than it was in 2001,and 95% less than 1933 then gasoline ,even at 5.00 dollars/gal is still lower at the pump.Right?So quit whining..."

Wrong.

I don't know about quitting, but suggest more reading for you.

Keep up the ignorant rants though; they're a hoot!

July 14, 2008 5:26 PM
Anonymous said...
This comment has been removed by a blog administrator.
March 15, 2013 10:07 PM

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