Tuesday, April 21, 2009
Mortgage Fraud: The Truth Slowly Seeps Out
William K. Black (fraud expert, former regulator during Savings and Loan crisis) writes in the Huffington Post about mortgage fraud. By 2004, the FBI was warning of extensive mortgage fraud going on in the banks but they were ignored. Lenders completed bypassed basic regulations and checks to originate as many liar loans as they could in order to make astronomical profits. Black outlines why the current crisis has its origins in this fraud and demands an inquiry.