Congressman Says $20 Trillion Mortgage Bubble Could Blow Up the System

Congressman Says $20 Trillion Mortgage Bubble Could Blow Up the System

larouchepac.com

Rep. Paul Kanjorski (D-PA) and New York Attorney General Andrew Cuomo, along with other legislators and organizations, held a press conference on Capitol Hill today on a regulatory crackdown against fraudulent home appraisals, and the mortgage lenders' demand for appraisal fraud in building up the now-collapsing mortgage bubble.

Kanjorski put the bubble at $20 trillion in his opening remarks, and said that its losses "are having an incredible impact on financial markets right now..."

(visit the link for the full news article)

Article goes on to call the problem "systematic" in the mortgage problems floating across the rest of the first world(s). (the UK have been having similar problems.)

larouchepac.com
(visit the link for the full news article)

[edit on 6-11-2007 by anhinga]

Just a little insight into this scam: a individual has a mortgage placed on a home they are interested in. They then forge the mortgage documents, making it look like the loan has been paid off (fooling the mortgage company). They have a friend who is legally qualified to make home appraisal give them a huge appraisal amount for their home (most of the time, double or more of what the mortgage was for). So for example, the home's value would be $200,000 and the appraiser would say it's not $500,000. They have another individual take out another mortgage for $500,000 and one again, forge documents to make it look like the mortgage has been paid off. They then own this home and also keep all the profits made by scamming the mortgage agency.

People make millions, but completely ruin other people's chances for getting a mortgage, because once the agency loses such vast amounts of money, they have to turn more and more people away from having a mortgage. I wont even begin to say how many people have been screwed over in N.O. because of scamers.

[edit on 6-11-2007 by DJMessiah]

reply to post by DJMessiah


Absolutely right -- and the worst part, which'll probably be the death knell for the U.S. economy is the loss isn't 'counted' until the property re-sells. So, you got A LOT of losses out there, unaccounted for, as of now.

Also, we MUST remember the last stats on mortgage, 3rd quarter numbers:
1 in 196 foreclosure -- 30%.

Congress -- wake up, please.

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[edit on 6/11/2007 by Mirthful Me]