Federal regulator investigating bonds sold to GSEs for fraud

July 13, 2010 by · Leave a Comment
Filed under: Legal News 

Glad to hear something is actually being done in this area after the taxpayers have been hosed from the subprime crisis.  It was not right that the loan originators basically let all lending standards go out the door to make fees while selling them to Freddie Mac and Fannie Mae.  If they followed the standards in place then it was our fault and not their’s on a technical level.

On a moral level this was obviously not okay but that is not how we run our society, we run it on incentives and loan originators operated under the incentives that were laid out.  What we need to figure out is if they did not follow those standards and committed fraud to make fees and bonuses.   If so, those money needs to be recouped and any crimes need to be punished to the fullest extent of the law.   We can not allow such lawless behavior in our country.  If you let criminals operate with a free hand then they tend to continue to commit crimes and even bring their friends into it.

Good job on the investigations, this was a huge debacle so many more should be coming down the pipe.

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FTC moves against mortgage modification and foreclosure relief scams

June 18, 2010 by · Leave a Comment
Filed under: Legal News 

We should be glad to see the FTC stepping up and doing its job against fraudsters of all kind.  Today in other news, the Attorney General’s office is cracking down on companies that have been committing mortgage fraud.  We have to persecute any and all wrong doing in this crisis or we will set up the precedent that is it okay to steal and loot the American people at will.  The people that are taking these types of programs are already vulnerable because of their financial situation.  We have to protect them from being exploited by these types of scams.

Consumer Reports – The Federal Trade Commission announced this week that it is taking legal action against more than a dozen marketers accused of offering bogus mortgage modification or foreclosure relief services. Foreclosure rescue companies that charge high upfront fees for help that never comes were among five financial traps we advised readers to steer clear of in a March 2009 Consumer Reports story describing scams that were flourishing in the wake of the economic meltdown.

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