So, I was disgussing this mortgage thing:

[glowing]

He said that there was unbelievable corruption throughout the entire system... He knew people who would write a loan for $250,000.00 on a $50,000.00 home. You can literally pay off the $50,000.00 home, use the capital from the overage and buy more the same way. When homes stopped selling, they pocket their money, and walk away from the scene leaving a pile of bad debt. Seriously, this is what we are bailing out? I know some lost homes the good old fashioned way, but how much of this is the over writing of loans?

[dysfunctional press]

1. sounds like something out of the sopranos...

how hard would it be to separate the honest from the not-so in all of this...? :shrug:

[Greyhound]

8. Almost impossible at this point. The industry spawned several layers

of companies to cover the scam.

The scam laid out in the OP give some indication of the problem and also why this corporate welfare giveaway won't work. From mortgage brokers to appraisers to home warranties are some of the cover they've laid over their tracks.

This really just boils down to creating a system to artificially inflate the value of their holdings to make up, or add to, the .com money, which was spawned by the influx of retirement money from the looting of the pensions and S&Ls.

[trumad]

2. You got it reversed---

Some did these scams while millions got scammed.

[mrreowwr_kittty]

3. That shit is so illegal.

We had a big problem with in here in AZ a couple years ago until the Atty. Gen. cracked down on it. Our problem is anyone can be a mortgage broker, they're not required to be licensed and the department that's supposed to regulate them has been cut down to nothing.

[glowing]

7. We are in FL, so anything really goes down here..

[knowbody0]

4. as a former mortgage banking accountant

what he said is true and runs rampid. appraisers can be bought and they are. I watched as my own boss accumulated 1/2 million dollars in one broad stroke.

[Warpy]

5. A lot of that went on in boom markets

mostly because shady outfits like Countrywide never did the most prudent things like home inspections. One house that changed hands three times, its value pumped with each sale, had a corpse rotting inside it for at least five years. No one had even opened the front door to make sure the roof hadn't fallen in.

If you read Dr. Housing Bubble in the Economy forum, it's where most of his "Homes of Genius" came from, shacks that had the paper value pumped beyond all reason by successive sales with no vigilance.

[sandnsea]

6. The price of homes skyrocketed

Somebody who bought a home 30 years ago might have paid $50,000 for it. Yes, people use the equity in their homes to invest in businesses, or in making money off buying other homes. The pushing of these lousy loans caused its own panic, where people felt like they had to get into a home and get that price/mortgage set. That pushed the prices even higher.

If banks hadn't written shitty teaser mortgages - none of his would have happened.

[Greyhound]

9. kick