Chorniki

Number of U.S. Homes With Negative Equity Is Stunning

The following has been published before: There was no need to make a
fraudulent application to the bank to get a loan to buy a house. The bank, with no help from the applicant house buyer, prepared the fraudulent loan docs. If anyone were serious about bringing the criminals to justice, the procedure needed to put them in jail is stunningly simple.
Advertise for applicants who refused to sign the fraudulent loan docs prepared by the banks. Hopefully they kept copies of the phony papers.
Offer ample financial rewards for whistle blowers that worked at the banks. Immunity from prosecution is, of course, a must. The best source
of evidence is the ambulatory notary who worked for several banks. If he/she kept copies of the fraudulent bank prepared docs we will have to build more jails to house all the guilty parties.
The banks at the retail Countrywide level were being offered ample
rewards to supply product to the investment banks to slice and dice. This
phony paper was sold throughout the world for huge fees. The role of our
Treasury Secretary between Jan.2006 and June 2006 should be investigated. As chief honcho
he had to have approved the role of his two 10 million dollar bonus babies. These worthies operated under a restricted budget. To do what
they accomplished(shorting the WaMus & Wachovias of this world) and
making billions for their firm had to have approval from the CEO of the firm where they worked because they needed a whole lot more cash to operate than what was allotted to them.
And let's , please, not forget other major players in this fiasco: the real
estate brokers. The brokers had lists of "buyers" that they used to "flip"
the properties. These "buyers" were paid a fee for lending their name.
A broker of my acquaintance was paid $8,000.00 per package by the
banks for whom he worked. He astutely shared this wealth with his buyers. Add in sales commissions and other fees received for processing
the "sale" of the property, times the number of times in one year that the
property was "flipped", and you will quickly get the idea of the incentive
propelling the fraud train. Plus, please do not forget, Harry Reid and Barney Frank, et al, urging all parties to make home buying for the
underpriviledged a priority to allow them to share in the American Dream.
That the Dream is now a nightmare is not really a problem. Just throw
more funny money at it and everything will turn out all right.




On Nov 12 07:19 AM Useral7899 wrote:

> The people that got the loans, based upon farlse information, are
> also fraudulant. How many have been prosecuted since this began?
> These are the same people that are seeking a bailout.
> What are we teaching our kids? Fraud pays !

Wells-Wachovia: Good for Everybody but Citi

As a retired real estate broker, I can remember when, if a loan could not be placed anywhere, it could be placed at World Savings. Wachovia bought out World and now Wells Fargo has bought out Wachovia. All
those dodgy loans will cause WFC more than a minor headache. A further ten per cent drop in real estate prices, perhaps more, is a given.
Extending the time to 240 days before declaration of default won't help either. Option ARM loans often did not even require the payment of the
monthly interest. World Savings was specially good at devising creative ways to qualify dodgy borrowers chasing the American dream.
The jingle mail should be heavy in the coming months as unemployment numbers gather steam.
Disclosure: Own synthetic shorts in WFC.