International Law

Mortgage Fraud News

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Two sane views the mortgage fraud crisis.

First, Ed Dickson, writing at his Fraud Phishing and Financial Misdeeds blogs states:

"Thus far, in what has been termed the mortgage crisis, we've seen the banking industry get bailed out (at taxpayer's expense), a lot of people getting arrested, but so far very little help for the people getting foreclosed on

I've seen this being rationalized as it's their own fault because they knew they were getting in over their heads. While this is true -- especially in the case of the big players in the mess -- many of the smaller players were being wooed, coerced and simply taken advantage of. To me at least, this bears consideration.

I've seen this being rationalized as it's their own fault because they knew they were getting in over their heads. While this is true -- especially in the case of the big players in the mess -- many of the smaller players were being wooed, coerced and simply taken advantage of. To me at least, this bears consideration."

Second, Judge Roy Bean, writing at his blog Loan Sharks states:

"I'm starting to get more than just a little annoyed at the holier-than-thou crowd and Monday morning quarterbacks in the "news" media who are buying the industry-driven mantra that the problems in the debt markets and the economic fallout are because of mortgage lending to people who shouldn't have gotten loans.

Trust me - it's their PR machine at work, diligently trying to shape public opinion and point the finger at the consumers as opposed to the perpetrators. The stakes are high - as in trillions, so you can't expect the folks who actually run Washington to shy away from getting the media to help them in pointing fingers at easy targets."

It is easy to blame people who purchased houses that they couldn't afford - but what sense does this really make?

How on earth can an entire industry devoted to prudent lending ignore the fact that after they securitized these crappy loans, the liabilities were off their books?

Playing musical chairs is all fun, until someone gets poked in the eye.

Full post as published by Misleading Advertising Law on July 29, 2008 (boomark / email).