Comes The Mortgage Mess Crackdown
June 20th 2008 01:06
On June 11th, I posted about "Jingle Mail" and "Buy and Bail". Jingle mail is the sound your home keys make when you mail them to the bank. Buy and bail is fraud. You and your mortgage broker swear your home will be rented as you buy a second. Once you are firmly ensconced in the new home, you mail the first home's key back.
Tom Hayes at Yahoo reports that two hedge fund managers at Bear Sterns were arrested today, "charged with lying to investors about the collapse of the subprime mortgage market"
The article notes that since March, the Justice Department has arrested over 400 mortgage brokers, including 60 on Wednesday in a crackown on mortgage fraud.
That alleged fraud includes misstatement of income or assets, forged documents, inflated appraisals and misrepresentation of a buyer's intent to occupy a property as a primary residence (My emphasis).
Meanwhile, the Senate wants to spend $300 billion to underwrite failing home loans. The Guardian.co.uk writes "It would also offer billions of dollars in emergency housing relief. Proponents say the bill could save 400,000 homeowners from foreclosure."
Isn't government's main duty to serve and protect? Isn't it comforting to know that the cavalry has arrived, too late once again?
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