michaelblomquist

Mortgage Fraud Is on the Rise, Infecting the GSEs

I highly doubt the fraud is up; the problem is depreciation. I know some of you may find this hard to believe, but the Lenders, I-banks and credit rating agencies were looking the other way and knowingly funding fraudulent loans. In they heyday there was little reporting of fraud, but it did exist. Today, there is no double digit appreciation to bail out the defaulting borrowers, Lenders, etc. so they are stuck with a bad loan instead of being able to sell it or refi the turd.

Dinochick: Did you work for any of the I-banks, which lenders?