Thursday, Jun 19, 2008
Is this a sign of things to come?
BBC News: FBI holds 406 for mortgage fraud
The FBI says it has arrested 406 property market players as part of its crackdown on mortgage fraud.
The arrests include estate agents and loan originators, who help homebuyers to take out loans.
Reported mortgage fraud has soared in the past year, with the most common type being mis-statement of assets.
Posted by flintster1994 @ 06:55 PM (447 views) Add Comment
4 Comments
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1. p. doff said...
I would so dearly love to see some brokers of my acquaintance frogmarched off and interrogated. Despite my dislike of the fuzz, I would happily point them in the right direction. Can't see it happening on a large scale here though.
2. flintster1994 said...
Can you imagine? All those self cert mortgages! Jings!
3. Imminent_plunge said...
We've seen people claim money for unfair bank charges and mis-selling of endowment policies. The FSA became very strenuous with compliance regulations for investment products - only AFTER mis-selling of 'precipice bonds' in 2001/2002 (FTSE capital at risk investments). The risks were never adequately explained, people thought they were on to a good ROI.
When the people who have bought their one-bedroomed hovels at peak prices on 125% mortgages and encouraged by exploitative brokers to lie about their income are in serious NE, they will want compensation. They were sold on the premise that property prices could only ever go UP and the fear factor that if they didn't buy now, they would never own their own home. Simply showing a graph of historical house prices, like the one on this site, would probably have set alarm bells ringing in sensible people.
The FSA have been very quiet about mortgage sales, despite evidence of dubious applications... This mis-selling on an unprecedented scale.
Watch the claims come pouring in.
4. layers said...
Yeah but I can't help feeling that these 'token' guys are just scape-goats - the pr**ks at the top - or even 'ol Bubbles Green S are the architects of these financial WMDs, and should be rounded up accordingly. Truly they are going after the middle-class, so to speak.