Alt-AyeAyeAye

[HereWeGo]

What a post over at Housing Wire.

17.4% delinquincies in Alt-A??? Up to 70% fraudulent???

Wow.

[svelte]

We’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)

[HereWeGo]

No biggie … Ambac and MBIA have it covered.

[donaldduckmoore]

What kind of fraud are they talking about? Anyone has any insights?

[cr]

Given 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.

[pencilneck]

I 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.

[pencilneck]

I 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.

[pencilneck]

I 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.

[pencilneck]

I 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.

[pencilneck]

I 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.

[cr]

Given 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.

[cr]

Given 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.

[cr]

Given 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.

[cr]

Given 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.

[donaldduckmoore]

What kind of fraud are they talking about? Anyone has any insights?

[donaldduckmoore]

What kind of fraud are they talking about? Anyone has any insights?

[donaldduckmoore]

What kind of fraud are they talking about? Anyone has any insights?

[donaldduckmoore]

What kind of fraud are they talking about? Anyone has any insights?

[HereWeGo]

No biggie … Ambac and MBIA have it covered.

[HereWeGo]

No biggie … Ambac and MBIA have it covered.

[HereWeGo]

No biggie … Ambac and MBIA have it covered.

[HereWeGo]

No biggie … Ambac and MBIA have it covered.

[svelte]

We’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)

[svelte]

We’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)

[svelte]

We’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)

[svelte]

We’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)

[Author]

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