- This topic has 25 replies, 5 voices, and was last updated 15 years ago by
pencilneck.
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AuthorPosts
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March 20, 2008 at 3:13 PM #12196
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March 20, 2008 at 3:21 PM #173881
svelte
ParticipantWe’re goin off the rails on this crazy train.
That’s not the figure that caught my eye the most…it was this one:
Clayton reported that subprime first lien average loss severity increased to 45.80 percent in February, up from 42.56 percent in January
Lenders are getting back only about 54 cents on the dollar when taking back a subprime home! (if I read that right)
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March 20, 2008 at 3:31 PM #173896
HereWeGo
ParticipantNo biggie … Ambac and MBIA have it covered.
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March 21, 2008 at 12:12 PM #174301
donaldduckmoore
ParticipantWhat kind of fraud are they talking about? Anyone has any insights?
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March 21, 2008 at 5:00 PM #174446
cr
ParticipantGiven the tendency to a lax nature for Alt-A loans I gather the fraud to be in the income claiming area.
This article and others that find “prime” mortgage holders walking from them before the rates even reset seem to indicate that a lot more people bought homes hoping to make a quick $100 Grand 3 years later when their loans reset and their house doubled in value again.
Thus a speculative bubble.
It will likely all come back to the false income claimed, but I’m interested to see if a judge finds that the borrower signed with the flase amount, or if the broker is found to have changed to amount to get the loan through.
I tend to believe the former.
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March 21, 2008 at 5:18 PM #174456
pencilneck
ParticipantI had a cocktail conversation a few years ago with a lady who worked for Accredited Lending (LEND), and her job was to provide documents that justified the lies made by the real estate agents and borrowers long enough they could repackage the loans and sell them to Countrywide so that Countrywide could repackage them and sold them to Fannie Mae.
She said that both buyers and agents would sign and do anything to get the home sale done (buyers are stupid and agents need their commission) and she said that making the loans look presentable was a challenge. She mentioned a procedure that was called “Cut and Paste” but didn’t go into much detail. I mentioned that her job sounded a lot like loan fraud and the conversation sort of ended.
My own personal belief, based on very little evidence, is that fraud was very widespread and at every level of the foodchain.
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March 21, 2008 at 5:18 PM #174804
pencilneck
ParticipantI had a cocktail conversation a few years ago with a lady who worked for Accredited Lending (LEND), and her job was to provide documents that justified the lies made by the real estate agents and borrowers long enough they could repackage the loans and sell them to Countrywide so that Countrywide could repackage them and sold them to Fannie Mae.
She said that both buyers and agents would sign and do anything to get the home sale done (buyers are stupid and agents need their commission) and she said that making the loans look presentable was a challenge. She mentioned a procedure that was called “Cut and Paste” but didn’t go into much detail. I mentioned that her job sounded a lot like loan fraud and the conversation sort of ended.
My own personal belief, based on very little evidence, is that fraud was very widespread and at every level of the foodchain.
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March 21, 2008 at 5:18 PM #174808
pencilneck
ParticipantI had a cocktail conversation a few years ago with a lady who worked for Accredited Lending (LEND), and her job was to provide documents that justified the lies made by the real estate agents and borrowers long enough they could repackage the loans and sell them to Countrywide so that Countrywide could repackage them and sold them to Fannie Mae.
She said that both buyers and agents would sign and do anything to get the home sale done (buyers are stupid and agents need their commission) and she said that making the loans look presentable was a challenge. She mentioned a procedure that was called “Cut and Paste” but didn’t go into much detail. I mentioned that her job sounded a lot like loan fraud and the conversation sort of ended.
My own personal belief, based on very little evidence, is that fraud was very widespread and at every level of the foodchain.
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March 21, 2008 at 5:18 PM #174817
pencilneck
ParticipantI had a cocktail conversation a few years ago with a lady who worked for Accredited Lending (LEND), and her job was to provide documents that justified the lies made by the real estate agents and borrowers long enough they could repackage the loans and sell them to Countrywide so that Countrywide could repackage them and sold them to Fannie Mae.
She said that both buyers and agents would sign and do anything to get the home sale done (buyers are stupid and agents need their commission) and she said that making the loans look presentable was a challenge. She mentioned a procedure that was called “Cut and Paste” but didn’t go into much detail. I mentioned that her job sounded a lot like loan fraud and the conversation sort of ended.
My own personal belief, based on very little evidence, is that fraud was very widespread and at every level of the foodchain.
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March 21, 2008 at 5:18 PM #174902
pencilneck
ParticipantI had a cocktail conversation a few years ago with a lady who worked for Accredited Lending (LEND), and her job was to provide documents that justified the lies made by the real estate agents and borrowers long enough they could repackage the loans and sell them to Countrywide so that Countrywide could repackage them and sold them to Fannie Mae.
She said that both buyers and agents would sign and do anything to get the home sale done (buyers are stupid and agents need their commission) and she said that making the loans look presentable was a challenge. She mentioned a procedure that was called “Cut and Paste” but didn’t go into much detail. I mentioned that her job sounded a lot like loan fraud and the conversation sort of ended.
My own personal belief, based on very little evidence, is that fraud was very widespread and at every level of the foodchain.
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March 21, 2008 at 5:00 PM #174794
cr
ParticipantGiven the tendency to a lax nature for Alt-A loans I gather the fraud to be in the income claiming area.
This article and others that find “prime” mortgage holders walking from them before the rates even reset seem to indicate that a lot more people bought homes hoping to make a quick $100 Grand 3 years later when their loans reset and their house doubled in value again.
Thus a speculative bubble.
It will likely all come back to the false income claimed, but I’m interested to see if a judge finds that the borrower signed with the flase amount, or if the broker is found to have changed to amount to get the loan through.
I tend to believe the former.
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March 21, 2008 at 5:00 PM #174799
cr
ParticipantGiven the tendency to a lax nature for Alt-A loans I gather the fraud to be in the income claiming area.
This article and others that find “prime” mortgage holders walking from them before the rates even reset seem to indicate that a lot more people bought homes hoping to make a quick $100 Grand 3 years later when their loans reset and their house doubled in value again.
Thus a speculative bubble.
It will likely all come back to the false income claimed, but I’m interested to see if a judge finds that the borrower signed with the flase amount, or if the broker is found to have changed to amount to get the loan through.
I tend to believe the former.
-
March 21, 2008 at 5:00 PM #174806
cr
ParticipantGiven the tendency to a lax nature for Alt-A loans I gather the fraud to be in the income claiming area.
This article and others that find “prime” mortgage holders walking from them before the rates even reset seem to indicate that a lot more people bought homes hoping to make a quick $100 Grand 3 years later when their loans reset and their house doubled in value again.
Thus a speculative bubble.
It will likely all come back to the false income claimed, but I’m interested to see if a judge finds that the borrower signed with the flase amount, or if the broker is found to have changed to amount to get the loan through.
I tend to believe the former.
-
March 21, 2008 at 5:00 PM #174894
cr
ParticipantGiven the tendency to a lax nature for Alt-A loans I gather the fraud to be in the income claiming area.
This article and others that find “prime” mortgage holders walking from them before the rates even reset seem to indicate that a lot more people bought homes hoping to make a quick $100 Grand 3 years later when their loans reset and their house doubled in value again.
Thus a speculative bubble.
It will likely all come back to the false income claimed, but I’m interested to see if a judge finds that the borrower signed with the flase amount, or if the broker is found to have changed to amount to get the loan through.
I tend to believe the former.
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March 21, 2008 at 12:12 PM #174648
donaldduckmoore
ParticipantWhat kind of fraud are they talking about? Anyone has any insights?
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March 21, 2008 at 12:12 PM #174651
donaldduckmoore
ParticipantWhat kind of fraud are they talking about? Anyone has any insights?
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March 21, 2008 at 12:12 PM #174663
donaldduckmoore
ParticipantWhat kind of fraud are they talking about? Anyone has any insights?
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March 21, 2008 at 12:12 PM #174750
donaldduckmoore
ParticipantWhat kind of fraud are they talking about? Anyone has any insights?
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March 20, 2008 at 3:31 PM #174240
HereWeGo
ParticipantNo biggie … Ambac and MBIA have it covered.
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March 20, 2008 at 3:31 PM #174247
HereWeGo
ParticipantNo biggie … Ambac and MBIA have it covered.
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March 20, 2008 at 3:31 PM #174259
HereWeGo
ParticipantNo biggie … Ambac and MBIA have it covered.
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March 20, 2008 at 3:31 PM #174342
HereWeGo
ParticipantNo biggie … Ambac and MBIA have it covered.
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March 20, 2008 at 3:21 PM #174225
svelte
ParticipantWe’re goin off the rails on this crazy train.
That’s not the figure that caught my eye the most…it was this one:
Clayton reported that subprime first lien average loss severity increased to 45.80 percent in February, up from 42.56 percent in January
Lenders are getting back only about 54 cents on the dollar when taking back a subprime home! (if I read that right)
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March 20, 2008 at 3:21 PM #174233
svelte
ParticipantWe’re goin off the rails on this crazy train.
That’s not the figure that caught my eye the most…it was this one:
Clayton reported that subprime first lien average loss severity increased to 45.80 percent in February, up from 42.56 percent in January
Lenders are getting back only about 54 cents on the dollar when taking back a subprime home! (if I read that right)
-
March 20, 2008 at 3:21 PM #174242
svelte
ParticipantWe’re goin off the rails on this crazy train.
That’s not the figure that caught my eye the most…it was this one:
Clayton reported that subprime first lien average loss severity increased to 45.80 percent in February, up from 42.56 percent in January
Lenders are getting back only about 54 cents on the dollar when taking back a subprime home! (if I read that right)
-
March 20, 2008 at 3:21 PM #174328
svelte
ParticipantWe’re goin off the rails on this crazy train.
That’s not the figure that caught my eye the most…it was this one:
Clayton reported that subprime first lien average loss severity increased to 45.80 percent in February, up from 42.56 percent in January
Lenders are getting back only about 54 cents on the dollar when taking back a subprime home! (if I read that right)
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