(i) Sub-prime and (ii) solicitors: a question.

A chairde go léir,

Could anyone point me to good (and preferably simplified!) online sources that:

(i) explain how exactly the sub-prime debacle has seeped so far into the financial markets (parcelling debt and selling on as securities, et al), and

(ii) what a certain two Dublin solictors were allegedly up to and how they have come unstuck (ie, what exactly was their function/role during the alleged transactions. Where they also acting as mortgage brokers?).

Go raibh míle maith agaibh uile.

Johnny.

This is a pretty good article on the first part of your question.

On the second part, It is alleged that they did a number of things.

  1. Used money from their client account for personal use.

  2. Raised multiple mortgages against the same properties.

  3. Got mortgages based on assurances to the banks (they being solicitors), but didn’t follow up with the necessary paperwork (possibly because it might have tipped off the banks that there were multiple mortgages on some of the properties.

The seem to have come unstuck because of Whistleblowers more than anything else.

-Rd

They must have been living way beyond their means, ie. spending way more than what they were earning.

It should never have reached a point that they were allegedly dipping into client funds and securing multiple mortgages on properties.

You would want to ask some serious questions of someone in their position who couldn’t make money in the property game over the last 10 years,even the numpties were coining it in !.

Go raibh maith agat, a chara mhóir.

making money wasn’t the problem. That’s easy.

Making enough money. That’s where they got into trouble.

-Rd

The role of securitization in mortgage lending
chicagofed.org/publications/ … 07_244.pdf [adobe acrobat required]