huffpostfund.org/stories/2009/12 … tion-fraud
At Top Subprime Mortgage Lender, Policies Were Invitation to Fraud David Heath
First of two articles about the roots of the subprime lending bubble.
Long Beach Mortgage Employees Say Firm Routinely Ignored Warnings
Diane Kosch had one of the most thankless jobs in the subprime lending craze.
Sitting elbow to elbow with colleagues at a conference table in a northern California office building, Kosch’s job was to review a huge stack of loans each day at Long Beach Mortgage for problems, including evidence of fraud. She was given 15 minutes per file.
However, even when Kosch noticed clues of mortgage fraud – suspicious income, questionable appraisals or missing documents – the loans usually got approved anyway. Senior managers at Long Beach Mortgage, one of the nation’s biggest subprime lenders, aggressively pushed loans through. As far as the company was concerned, Kosch’s quality-assurance team was just slowing things down.
…(cont’d)
huffpostfund.org/video/video-fat … s-mortgage
The Fate of a Subprime Loan: Can This Man Hold On to His Mortgage? Christine MacDonald
Second of two articles about the roots of the subprime lending bubble.
https://www.youtube.com/watch?v=auH0qTSTYTw
With the housing boom still in full force in early 2006, Long Beach Mortgage Co., one of the nation’s biggest subprime lenders, sent its eager Wall Street investors yet another package containing thousands of new home loans.
Among them was a mortgage for a modest, two-bedroom home on a quiet suburban street outside Washington, D.C. – taken out by a borrower who could not afford it.
The mortgage was rolled into a bundle of bonds worth $1.7 billion, assembled and marketed by Goldman Sachs and other venerable financial companies. The bonds were blessed as the highest possible quality by the major credit raters and then purchased by some of the world’s most savvy institutional investors.
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onlyone
December 28, 2009, 3:40pm
#2
What happened to personal responsibility and choice in the land of the free. Whats even better is Edwardo(?), can jingle mail the keys, declare bankrupt, and be up and running again in twelve months. In Ireland its 12 years. Nobody whatsoever was forced to borrow, greed made them do it, ambtion maybe, but forced …NO
The sub-prime implosion also has it’s roots in the yen carry trade unwinding. That was a key source of funds.
Yen Carry Trade and the Subprime Crisis -> princeton.edu/~hsshin/www/ye … bprime.pdf
World Liquidity Crisis Emerging as the Yen Carry Trade Unravels -> marketoracle.co.uk/Article525.html
Mortgage Fraud - The Root of America’s Economic Malaise -> seekingalpha.com/article/179903- … ic-malaise
Mortgage Fraud is a very unpopular topic. It is simply not something anybody wants to talk about at all, let alone trace the corrosive effects of the dishonesty of our neighbors and fellow citizens on the fabric of the economy. However, it is not something that will go away. Indeed, the longer this fundamental problem is ignored or swept under the carpet, the more futile will all economic remedies be to alleviate the weakness and fragility of our financial system.
there is more
