FBI saw mortgage fraud early

FBI saw mortgage fraud early

seattlepi.nwsource.com

The FBI was aware for years of "pervasive and growing" fraud in the mortgage industry that eventually contributed to America's financial meltdown, but did not take definitive action to stop it.

"It is clear that we had good intelligence on the mortgage-fraud schemes, the corrupt attorneys, the corrupt appraisers, the insider schemes," said a recently retired, high FBI official. Another retired top FBI official confirmed that such intelligence went back to 2002.

(visit the link for the full news article)

If fraud was being committed and this helped get us into the financial crisis that we find ourselves in, shouldn't this be investigated and those guilty be jailed.

Why should white collar criminals just be ignored.

I think that it's time that the current administration start investigating those crimes and cracking down on criminal behavior from those people.

Also, I think that the true victims of crimes like this are people who got loans that they could never afford. Restitution should be made to the victims.

seattlepi.nwsource.com
(visit the link for the full news article)

Originally posted by Wildbob77
If fraud was being committed and this helped get us into the financial crisis that we find ourselves in, shouldn't this be investigated and those guilty be jailed.

Why should white collar criminals just be ignored.

the question is, who, exactly, is guilty?

the mortgage brokers who doctored the applications?
the appraisers who gave phony appraisals?
the sub prime lenders who came up with the most ridiculous loan programs and then sold the loans to banks?
the real estate lawyers who didn't inform their clients of the insanity of these loans?
the government for not putting some kind of restrictions in place that would have limited the amount of screwing around the above folks could pull off on the american public?
the FBI for not acting on the supposed fraud?
the state banking departments?
or the american people themselves who knew they were taking insane risks with programs that would, eventually, put them in a hole they'd never climb out of?

The FBI sees everything but does diddley. They said the same thing about 9/11 and the hundreds of Israeli 'art students' and then did diddley.

Maybe the FBI only investigates lone individuals and not groups in case its a black ops project from one of the alphabet agencies. Professionals don't like to step on each other's toes you know.

[edit on 113131p://am3139 by masonwatcher]

reply to post by Crakeur


I'll let the FBI figure out who committed the crimes.

If mortgage brokers doctored documents.... guilty.

If appraisers falsified appraisals.... guilty.

Others, I'm not so sure about. I worked in real estate and one of the things that we were real clear about is that it is up to the home buyer to get their own loan. We didn't specify a lender, or a type of loan. The home buyers were free to make their own choices and we didn't comment on them.

But I was active in real estate a long time ago and my info may not be current.

reply to post by Crakeur


You forgot the people who took the loans, knowing full well that the Apps were false and that they couldn't pay the loans off

reply to post by lost in the midwest


Good point.

If you committed fraud while filling out a mortgage application then you are part of the problem.

reply to post by lost in the midwest


nope, they would be the last ones mentioned on my list - the american people.

guilty as charged

Ever notice how after anything significantly bad happens all of these retired FBI folks come out of the woodwork to state that we had the information and knew what was going on but we didnt have the authority or people of funds to act on it?

Never someone actually with an alphabet org, always retired, usually 4-8 years removed. Wonder what that is?

Of course they knew what was happening, just didnt care. People were getting rich and the economy was great. Only after a collapse will anyone ever say that something was wrong, a whistleblower during the build up will likely be fired at best.

Whos to blame? Everyone. Just like the junk bond mess years ago. The Fed forced banks to give loans they shouldnt have, people signed onto loans they couldnt afford, real estate agents and appraisers saw the market was wide open and they stood to benefit. How do you prosecute that? Not sure you can prosecute greed by an entire nation including the government. Hell, we cant even properly jail Madoff, imagine how impossible this mess would be.

So in the end, those in the know or the greedy happy scum of our nation lined their pockets and now the lowly taxpayer gets to try and save the worlds economy in the form of bailouts. Happy days.

Remember, the FBI reports to the President. Actions they take, or don't take, are at the behest of, and with authority delegated by, the President of the United States (hence the nickname "The Feds").

Any report of the evidence they collected MUST have passed through channels which categorized the potential crimes as actionable or not. Apparently, Economic Terrorism is just called 'good business' by some amongst the circles of power in these United States.

As for blaming the applicants for the transgression, I would have to assume they were 'advised' by the all-knowing and ever-wise financial representatives of the companies in question that what they were doing was economic suicide.

Do you think they were?

Or don't you think it more likely that they were actually encouraged to apply?

Crakeur is right on. I think the biggest problem was the mortgage lenders and the american people going with the Adjustable Rate Mortgages. Those are so dangerous but people wanted to live beyond their means and look what happened.

TWO WORDS- STATED LOANS

Also called "Liar Loans", these loan gave the customer the right to "state" what income they earned. The banks knew full well that the customer was mis-stating his income, but they got a new loan on the books and was able to package it in a mortgage backed security and sell it to the highest bidder. You can thank the administaration of William Jefferson CLINTON for relaxing those standards that enabled the banks to do that.

Also at fault, but not entirely, was the pushing of ARM's. (Adjustable Rate Mortgages), also called "band-aid" loans. Attractive to customers with a less than stellar credit rating, it enabled them to get a low-fixed rate, for 2-3-or 5 years, then the loan would adjust according to market conditions. The theory was the customer would make the low-fixed rate payment over the fixed rate period, improve his credit rating, then re-finance in a conforming low interest regular 30 year fixed rate loan. (The industry standard). The problem was, these borrowers had a "less than stellar" credit rating for a reason. Fixed rate terms ended, customer didn't always pay as agreed to improve their credit, rates adjusted, monthly payments sky-rocketed, loans failed, securities deemed worthless.

So, if ANYONE in particular is to blame, I believe it was the people who made all this possible from the start.

The Clinton administration.

Good comments.

My response, similar to the Queen of Hearts in Alice in Wonderland.


"Off with their heads"


That would get some attention.

Originally posted by Maxmars
Remember, the FBI reports to the President. Actions they take, or don't take, are at the behest of, and with authority delegated by, the President of the United States (hence the nickname "The Feds").

The FBI reports to the Justice Department, Not the President. Its up to Justice to make the decisions on when and to what degree any charges that will be brought against an individual or group. The only two things a President can do is pardon those that get prosecuted or ask for an investigation. He has NO say in the development of a case or how a case is interpreted or investigated! If the Preseident ever had any say with the FBi, Hoover would have been gone many years before he was!
Zindo

[edit on 1/28/2009 by ZindoDoone]

reply to post by ZindoDoone


I guess I was just imagining that people inside the Bush administration are being investigated for politicizing the DOJ.

Jon

The list of potential criminals could be huge.

It would keep the lawyers busy for years.

I think that we as a county need to go after all those who've brought about the present calamity.

reply to post by ZindoDoone


You are so correct!

I toyed with the idea of claiming I was fishing for an informed post, but truth is, I was completely misremembering the facts.

Of course, the DoJ is another matter. Politics in justice..., oy!