Mortgage woes could be ‘tip of the iceberg’

[Bugs]

Good post.

I’d love to see some agressive litigation and even criminal prosecution for some of these guys. Strip them of some of these ill-gotten gains. Crime should not pay.

[kicksavedave]

I agree Bugs, and I think that will happen. Maybe not all, but some execs from the Worldcoms and Enrons of the world have been sentenced to serious prison terms, to enjoy their retirement years.

If the big wigs at the top are guilty of fraud or other crimes, I expect they’ll pay the appropriate penalty, as naieve as that may sound. Many of these brokers and LOs who used shady prqactices to make a quick buck during this frenzy, will end up back where they came from, Jiffy Lube, soon enough. I know one who is freaking about about A) what he’s going to do for a new career, and B) how he’s going to pay for his condo that he bought on a no doc stated income loan that even he couldn’t afford 3 years ago, let alone now.

As far as all those MBS’s coming back to hurt Average Joe’s retirement… well there again, if Average Joe isn’t monitoring and understanding his investments, who’s to blame when they go down the toilet?

I don’t know about “stealing from the MBS’s by misrepresenting” The MBS buyers had to know they were buying junk risky loans, they just all expected non stop appreciation. And again, if there was fraud, then individual people are liable. We’ll see how that plays out, how many get caught and pay the price.

[bob007]

Boeing is based on mainly domestic components.

[CostaMesa]

How many successful exporters like Boeing are there in the USA? Sounds like Americans better hope that other people keep buying their planes.

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I’d be more willing to accept the viewpoints of the majority of posters to this thread if they were equally indignant towards ALL who could have done better. Singling out any of the players as the root cause of the problem is a pretty clear example of foolishness. There’s clearly a lot of blame to go around.

It’s most important to put energy into ensuring that the markets work properly by fixing the whole problem than falling prey to the temptation of pursuing the quick fix. Isn’t that what got us into this mess in the first place?

First to go should be the ‘new-economy’ belief that homeownership should be higher than the low-mid 60% range. As long as people believe the number should be well into the 70% area, the system will try to find ways to keep it that way. It wasn’t that way ten years ago and I don’t see why it should be that way now.

[Raybyrnes]

7 or 8 years ago these Morgage Brokers were doing the same thing they are doing today and managed to take a number of ordinary individuals and make them millionaires in a very short period of time. They were many peoples angels. There job is to sell product. They are doing the same thing today. The resiult might be difference but there job is the smae. They compete on rates, points, and payments. I don;t see them as being scoundrels or con men. There role is to sell product. The market will ultimately dictate whether or not the products make sense in the end. Brokers are simpley a part of the transaction.

[kev374]

Regarding the Enron type scandals within the mortgage industry…it will start soon enough most definitely.

http://www.suenewcentury.com

[patb]

One way to avoid this fraud is do business with people you know.

I did my first mortgage with the local small town bank,
I did my replacement mortgage with my credit union.

Now granted they only have a couple of products, but,
they don’t have an incentive to rip off their customers.

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