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    the entitlement reform that's needed is on wall street..., 2010-05-04 12:09:24 | Main | what jack shafer misses about what ross douthat misses about fringe thinkers when he removes his western blinders..., 2010-05-05 01:06:11

    mortgage fraud:

    I almost forgot the brief mention in Capitalism that the FBI estimated, when they warned in late 2004 of a mortgage fraud epidemic, that 80% of the fraud was on the part of lenders, hence:

    The FBI investigates mortgage fraud in two distinct areas: Fraud for Profit and Fraud for Housing. Fraud for Profit is sometimes referred to as "Industry Insider Fraud" and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties. Based on existing investigations and mortgage fraud reporting, 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders [emph. added]. Fraud for Housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan.

    I didn't know they'd reported the percentage or that it was that high. It speaks to the somehow continuing nonsense about the Community Reinvestment Act forcing lenders in the 2000s to give mortgages to dishonest black people because of a weak law passed in the 70s that just obliged a bank to lend back to the communities it took deposits from. Not that you would have needed an FBI statistic to figure out that it was dishonest lenders defrauding borrowers into scam mortgages.

    C.f. Rosser; Galbraith.

:: posted by buermann @ 2010-05-04 18:45:28 CST | link

    go ahead, express that vague notion

    your turing test:

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