Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Published: Saturday, October 13, 2007

Mortgage crisis should surprise no one
The mortgage crisis should have surprised no one. The U.S. Census Bureau recently added another piece to the mortgage meltdown puzzle.

Across the nation, incomes couldn’t keep up with the increasing price of homes, the bureau said. Those prices were going up because of unconscionably low teaser mortgage interest rates and risky borrowing. That, in turn, created artificial wealth in real estate, making the recent boom in housing prices fizzle.

So now, some home buyers who fibbed or were vague about their income and assets to get those dicey subprime — questionable credit — loans have to sell the house, dump the mortgage or pay the foreclosure piper. The same with those who were living on the edge and simply got caught in the crossfire.

That’s too bad, but those are lessons learned. Don’t gamble with money for shelter. Buy only what you can afford. Still, the subprime situation made homeowners out of many who otherwise couldn’t afford it. The Census Bureau says that home ownership in the U.S. now is at a record level — 68.2 percent. People had a chance to buy — and for a great majority, keep — a home. The American dream.

went way oThe real blame for the mortgage mess much of the nation is in rests with the greedy lenders who ut on what already was a tenuous financial limb to lure borrowers. In some instances it was out and out predatory. Of course, there are the Wall Street companies that put the questionable subprimes together and made them tradable securities. And there are the hedge funds and others who wanted to squeeze every last dime out of their investments.

These people should have seen it coming. Crash and burn. Now investors are suing the hedge funds. Others are suing lenders. The Securities and Exchange Commission is involved. Congress is calling for hearings.

It is eerily reminiscent — even if the impact is much less serious — of the savings and loan fiasco of the 1980s. Remember that? More than 500 thrifts across the nation went belly-up because of bad management, fraud and poor state and federal oversight.

The government had to ride to the rescue to the tune of $200 billion, largely on the backs of taxpayers.

That’s certainly not a viable option this time around.

Many believe the market will right its own ship. Stronger subprime guidelines, more borrower and lender caution, refined monetary prudence, as well as what the industry calls ‘‘repricing of risk,’’ would help.

For those who took losses at the hand of their own greed — especially the predatory lenders and the hedge funds, who knew these were risky investments walking in — let’s make sure a taxpayer bailout isn’t a part of the picture.

They got what they deserved.


THE SAGINAW NEWS, Saginaw
http://www.mininggazette.com/stories/articles.asp?articleID=9006

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