“We see this news as evidence that troubles in the residential mortgage market are spreading beyond subprime,” Standard & Poor’s equity analyst Jason Willey said in a research note.
In national surveys, Georgia has been identified as a fraud hot spot. But Fulmer says that is because people there have become so aggressive about identifying the problem. She says she wonders how many homeowners across the country bought in neighborhoods where values were driven up by fraud but don’t know it yet.
“It happens everywhere and anywhere,” said Fulmer, who is now vice president of Interthinx, an anti-mortgage-fraud company. “If the true scope was discovered, I think it would cause a major crisis.”
Also Bloomberg is running a series on the subprime – Alt-A mess. This is not going to end well.
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