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Originally Posted by dalakhani
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.
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Sorry its passing it down. The loan officers that had been in the game a long time KNEW it was wrong. They questioned the outrageous loans and some got stiffed and fired by their employers, the Mortage companies. It was happening all over the country. So hell yes the people at the top(primary lenders) of the scheme knew it was wrong... imo. Now this might have been made easy by other entities but with loan officers smelling fish early on... the dadgumb loan officers with experience knew. Thats bad.