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Originally Posted by pgardn
I will interject.
I can't help it.
imo they(Mortage companies) were pulling people off the street and giving them mortages that looked very attractive to 2ndary and on investors who did not do their homework (the majority of the people would not be able to pay these rising rate pile o crap loans). Basically a pyramid scheme destined to fail. And now we see who ends up holding the cleaning products that wont sell. Stupidity and greed are fantastic partners for the get rich quick.
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Yes, fraud was ramapant. But you have to understand the climate of the industry during that period of time 2003-2007. Investment banks were creating products that all but screamed "we dont care if its fraud or not". Are you telling me its the mortgage broker's fault for originating a loan that required no income, no assets and no JOB with an LTV of 100%? These were wall st creations and their appetite was INSATIABLE. And why? Because they knew they could package it up in a CDO and have a ratings company slap triple A on it.
I think the notion that loan officers and consumers can get away with that level of fraud without Wall St. being compliant is totally naive. It was Indeed systemic.