Comments on: Step right up folks…state your income… get your home… step right up

By: azmortgageguru

azmortgageguru — Fri, 22 Jun 2007 22:46:09 +0000

Morgan,

That is true. Occupancy fraud has gotten a lot of people in trouble.

Thanks,
Shailesh

By: Morgan

Morgan — Wed, 20 Jun 2007 20:20:02 +0000

It was not only was the stated income fraud, it was also the Occupancy Fraud. Saying it as an owner occupied loan or a Second Home, then running a For Rent ad in the local newspaper with the property ADDRESS WITH THE REALTOR’S HOME TELEPHONE NUMBER, WITHOUT THE REQUIRED BROKER DISCLOSURES, just before or at close of escow, and renting it out. That fraud gave the illusion of rising demand.

By: Shailesh

Shailesh — Wed, 20 Jun 2007 16:03:45 +0000

Christoph,

You are right. Things start to stink from the top. Top management knew exactly what they were getting into and pushed it very hard. You make an excellent point.

Thanks,
Shailesh

By: Christoph Schweiger

Christoph Schweiger — Wed, 20 Jun 2007 14:21:31 +0000

It is not only to blame on the loan originators. I know of cases where wholesale representatives and account managers of large mortgage companies “trained” mortgage brokers and loan originators on how to “package” a stated income loan “properly” to pass the “scrutiny” of their very own underwriters. No and I am not going to go into the ethical issue of exploiting loopholes legally…

How about all the mid level executives of the big mortgage corporations being under pressure from the top to keep their sales numbers up? The fish always starts to stink from the head….

How about the borrowers and investors themselves who choose to to business with lenders who “promised” to get it done “one way or the other”? There are always at least two parties to dance.

The one thing I am getting tired about is the finger-pointing of everybody. Mortgage originators are not the only ones to blame!

Everybody go to confession now!