Reply #46: More on the continuation of housing market mortgage racket [View All]

[Robbien]

from Singular over at Agonist

European CMO market expanding :-)

Banks securitize their mortgages, sell these structured products to themselves and exchange them to cash on ECB counter

http://agonist.org/singular/20090529/european_cmo_market_expanding

Then from the Mortgage Lender we find out that banksters are trying to keep control of their inflated mortgage appraisal racket:

Despite calls for reform, Countrywide is still showing signs of committing the same predatory lending sins under new owner Bank of America. As Congress rushes the lending reforms through the House this month, banks are still fighting to keep control of how they run the mortgage business, and keep collecting lucrative fees in every step of the lending process.

Exhibit A is a $2.8 billion class action lawsuit filed on March 7th against a BofA subsidiary called Countrywide-KB Home Loans and its wholly owned appraisal firm Landsafe, Inc. The suit accuses the two subsidiaries of an appraisal inflation scheme affecting over 14,000 borrowers

http://ml-implode.com/article/buhl-banks_appraisals

The Mortgage Lender piece is full of interesting info such as:

Sources who've worked for the firm and spoke on the condition of anonymity for fear of retribution told us about a secret database so-called "UVL" or "unapproved vendor list." The list keeps track of all appraisers who've been blackballed for not meeting the lender's price target. In fact, when employees log onto the list, a warning flashes on the screen and tells the user not to disclose the list's existence.

A person who currently works at Landsafe says "At BofA's Landsafe, when the in-house reviewer does his check-off on the appraisal, the first thing we're told is to check the UVL list. If the appraiser is on it, out goes the appraisal in the trash."


The banksters are trying their best to keep the system as it currently is. They truly believe nothing they have done or plan to do is wrong and it is so very profitable. Why are people bitching?