Saturday, March 14, 2009
Now this is what we want to see more of
As the mortgage market was imploding and creating a disaster in the financial world and the destruction of numerous banks heavily into the home market, we were treated to stories of the scams and frauds that laid so many futures low. Thankfully, law enforcement has been working on this and mare activity can be expected.
Across the country, attorneys general have already begun indicting dozens of loan processors, mortgage brokers and bank officers. Last week alone, there were guilty pleas in Minnesota, Delaware, North Carolina and Connecticut and sentences in Florida and Vermont — all stemming from home loan scams.It remains to be seen how many big fish they can land, but according to one lawyer, “We’ll all sing the stupidity song,” a soon to be popular tune.
With the Obama administration focused on stabilizing the banks and restoring confidence in the stock market, it has said little about federal civil or criminal charges. But its proposed budget contains hints that it will add to this weight of litigation, including money for more F.B.I. agents to investigate mortgage fraud and white-collar crime, and a 13 percent raise for the Securities and Exchange Commission.
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