Fraud or Simply Unethical and Foolish Subprime Lending

According to Reuters, the FBI is currently conducting approximately 1,300 mortgage fraud investigations, and it has established a new mortgage fraud website to facilitate their investigations, and in response to “public demand,” which of course is just another hey we’re doing something about it knee jerk response to the total collapse of the subprime lending industry.

While the FBI may find a few prosecutable mortgage lending fraud cases, what will mostly be brought to light by their investigations will be the foolishness of the underwriting guidelines utilized by the subprime lending industry, and the unethical, but not illegal, methods which were utilized to suck subprime borrowers in.

FBI says targets major insiders in mortgage probe

Posted by on 04/01 at 11:17 AM

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