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eric pebble

Liar Loans: A Long, Technical But Interesting Document.

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LIAR LOANS:

THE poison in the mud:

A long, technical but interesting document.

A good read for those prepared to put the time in.

Upload from attachment below.

I don't believe that someone wrote a long technical document of the subject and titled it "liar loans"

tim

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I see it's an American document. It's about time someone did some serious research in the UK to quantify the extent of it in the UK. I'm sure it's massive. As soon as people thought that house prices would increase more than interest on the loan plus inflation it was a simple no brainer for them to criminally lie about their income to get more leverage on their investment. I say prosecute and fine the liars.

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William Black, one of the few people who blew the whistle on the Savings and Loans crisis of the 1980's.

He wrote a book about it too.

http://en.wikipedia.org/wiki/William_K._Black

Thanks for that Bandwagon.

TOTALLY confirms my long held opinion that LIAR LOANS are the Weapons of Mass Destruction - that really ARE out there - and are sitting around like the Elephant in the Room that is SO MAMMOTH in size that, weirdly, a lot of people can't see it! :rolleyes::rolleyes:

SO - Worth reading this bit from that link: [ http://en.wikipedia.org/wiki/William_K._Black ]:

-----------------------------

Testimony before Congress on the bankruptcy of Lehman Brothers

On April 20, 2010, Black testified before the House Financial Services Committee in a hearing titled "Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner." He testified about the role that Alt-A mortgages, what he called "liars loans," on residential real estate played in the downfall of Lehman Brothers. His testimony was that "Lehman’s failure is a story in large part of fraud. And it is fraud that begins at the absolute latest in 2001, and that is with their subprime and liars’ loan operations."[9]As explained in his prepared statement, his reference was to Aurora Loan Services, Inc., which was a subsidiary of Lehman: "Lehman’s principal source of (fictional) income and real losses was making (and selling) what the trade accurately called 'liar’s loans' through its subsidiary, Aurora. (The bland euphemism for liar’s loans was 'Alt-A.') Liar’s loans are 'criminogenic' (they create epidemics of mortgage fraud) because they create strong incentives to provide false information on loan applications."[10]

On the same page in his prepared testimony Black referenced an article from the Denver Post dated September 16, 2008, the day after Lehman filed for bankruptcy. The article reported on the uncertain fate of Aurora Loan Services, which was based nearby, and quoted Lehman's chief financial officer as saying the previous week that, "The majority of our write-downs were in Alt-A driven by an increase in.. . delinquencies and loss expectations." The article also said that Lehman was "among the first of its peers to originate home loans and securitize them for sale across the globe, and it fueled the growth of the Alt-A loan."[11]

http://en.wikipedia.org/wiki/William_K._Black

Edited by eric pebble

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I see it's an American document. It's about time someone did some serious research in the UK to quantify the extent of it in the UK. I'm sure it's massive. As soon as people thought that house prices would increase more than interest on the loan plus inflation it was a simple no brainer for them to criminally lie about their income to get more leverage on their investment. I say prosecute and fine the liars.

not just the borrower.

the valuer.

the broker.

the banker

The banker makes the biggest lies to his investors....

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LIAR LOANS:

THE poison in the mud:

Why do they allow low rank employees to make loans that will never be paid off?

Answer - A fraudulent system that allows bankers to create money from nothing with a few keystrokes on a computer. (That's why bankers are rich)

It's the monetary system that is the cause of it, it must be changed but probably reform will only come when it fails.

It's not good, a monetary system failure is a disaster for a country.

Edited by Compounded

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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