That’s great but the big fraud was the open secret that people were lying about their income on no-doc loans, aka, Liar’s Loans. There was HUGE fraud there. They knew those loans were terrible and they lied about the quality when they sold them off.
Has anyone been indicted for that HUGE fraud that ended up costing American taxpayers many billions of dollars? I doubt it. Those people are too rich and too powerful.
Here are some of my posts on Liar’s Loans from 2007 and 2008.
- ” Lie to Me” – Why subprime lenders are in pain
- Mortgage fraud encouraged my sub-prime lenders
- ” Lie to Me” New Century and mortgage fraud
- Inside the Liar’s Loan
The Bigger the Lie…
I see that contrary to my expectations at the time, no one ultimately became the poster boy for Liar’s Loans.
I guess the big boys were all too rich to allow that to happen so Liar’s Loans were forgotten and the players moved on without being forced to take responsibility for their fraud.
It doesn’t seem quite fair that a few small time scumbag mortgage fraudsters get caught but the really big scumbag mortgage fraudsters didn’t. And these big fraudsters make Bernie Madoff look like an Arizona mortgage fraudster.