[quote=beatrix]Agree that the loan originating and servicing industries have repeatedly gamed the system…as illustrated by (lest anyone forget):
1) manipulating compensation to brokers to escape disclosure requirements in ways that cost consumers;
2) herding consumers into misleading, negative amortization mortgage schemes (not referring here to real estate speculators, but those who were induced to take mortages they did not understand);
3) either knowingly or with gross negligence selling or approving mortgage loans based on inflated appraisals, assuming ever-rising prices, and accepting documentation showing no income, or worse, blatantly falsified information;
4) fostering, and basing entire business models on, the sell-first, fill-later and spin-gold-from-dross environment in mortgage securitization; and
5) either knowingly or with gross negligence causing the rating agencies to misapprehend the risks associated with the mortgages which formed the basis of the securities[/quote]
