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On Sun, 2 May 2010 23:49:11 -0700, "nom=de=plume"
wrote:

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On Sun, 2 May 2010 10:16:15 -0700, "nom=de=plume"
wrote:

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m...
On Sat, 1 May 2010 22:01:42 -0700, "nom=de=plume"
wrote:

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On Thu, 29 Apr 2010 09:01:09 -0700, "nom=de=plume"
wrote:

If you knew people that faked income or committed some other kind of
fraud,
did you turn them in? Probably not, so you can't be blameless
either.

Who would you turn them in to?

Dial 911?

There were no cops who were going to care, nor was the federal
government concerned Fannie and Freddy were writing NINJA loans
themselves.


I'd start with the FBI.


You would not get very far. The FBI does not have any jurisdiction
over what is considered a local fraud case involving a home buyer and
a loan officer. There is even a pretty good question about who was
committing the fraud. The loan people (calling them "officer" is
ridiculous), were coaching the buyers on how to fill out the
application so it would go through and there was no real credit
checking going on.
These mortgage companies were getting money in $50 million dollar
blocks and getting bonuses if they could write loans.



I'm betting I would get quite far. At the minimum, they would recommend
who
to call. Banking fraud, if it is that, is a federal crime.


You would end up at Fannie and Freddie if you followed the money,
eventually getting to congress.
That was another thing that got de facto deregulation. The lenders
were discouraged from trying to hard to disqualify marginal buyers and
when this thing crashed, otherwise very credible buyers were suddenly
marginal. Nobody really believed the market could crash and they
thought that if a buyer defaulted, they would just sell the house to
the next guy on the list at a higher price
If this was just who wrote a bad loan, you could easily bust a lot of
$35,000 a year loan clerks but how high did you want to go? Do you
want to go up to told them it was OK, or even those who made it a
condition of employment.




They aren't enforcement agencies... the FBI is one.


The FBI would not look into a case where somebody fudged a loan
application.


Never said they would or wouldn't. I said I would start with them and they
would certainly direct me to the proper authority.