What's amazing to me about this video is everyone involved in the process of closing and selling these loans seemed to know they were both putting people in a position to lose their home and selling bogus securities into the market, but no one took steps to fix the system. It's like you said in the post above, greed outweighs common sense. That brokers were fraudulently finishing paperwork to push loans through the door that borrowers weren't comfortable with is just terrible, the executives in those companies should really be charged criminally.
I am shocked that the bubble burst took so many people by surprised. It sounds like most people who worked in the mortgage and banking industries were aware of these high risks and fraud. When there is so much shady business being conducted, it is impossible for an industry to maintain its growing profits. I wonder why nobody really saw this coming. I think that not only a lack of regulations, but communications had something to do with it. I don't think (at least i hope) that the people on wall street would have been so eager to obtain the CODs if they were aware of all fraud being conducted throughout the process of obtaining the mortgage. And I don't think that most of borrowers would have wanted the mortgages if they were aware of the increased interest rates later on. When something seems to good to be true it usually is.
Amazing what people are willing to do to one another. Common sense and morals have gone out the door. In some cases I do not believe that all of the people giving out loans thought they were doing a disservice to the borrowers, others knew exactly what they were doing to these people. This is a case where the loan approval process has become so complicated in terms of the number of people involved that it has escalated to a point of no return. Not until it was too late and the word “crisis” became involved did anyone stop to think of what was really happening. Employees were just doing their job and homeowners did not want to hear the truth about not being able to own their own home. The entire process was full of lies. Lies to one another and to ones self.
On a side note I think it’s interesting Tamara is now a lawyer helping people in New Jersey (the same place she used to work approving loans) to keep their home. How does that look to a judge? Especially if she were to be involved somewhere in the clients case, other than as the lawyer.
What's amazing to me about this video is everyone involved in the process of closing and selling these loans seemed to know they were both putting people in a position to lose their home and selling bogus securities into the market, but no one took steps to fix the system. It's like you said in the post above, greed outweighs common sense. That brokers were fraudulently finishing paperwork to push loans through the door that borrowers weren't comfortable with is just terrible, the executives in those companies should really be charged criminally.
ReplyDeleteI am shocked that the bubble burst took so many people by surprised. It sounds like most people who worked in the mortgage and banking industries were aware of these high risks and fraud. When there is so much shady business being conducted, it is impossible for an industry to maintain its growing profits. I wonder why nobody really saw this coming. I think that not only a lack of regulations, but communications had something to do with it. I don't think (at least i hope) that the people on wall street would have been so eager to obtain the CODs if they were aware of all fraud being conducted throughout the process of obtaining the mortgage. And I don't think that most of borrowers would have wanted the mortgages if they were aware of the increased interest rates later on. When something seems to good to be true it usually is.
ReplyDeleteAmazing what people are willing to do to one another. Common sense and morals have gone out the door. In some cases I do not believe that all of the people giving out loans thought they were doing a disservice to the borrowers, others knew exactly what they were doing to these people. This is a case where the loan approval process has become so complicated in terms of the number of people involved that it has escalated to a point of no return. Not until it was too late and the word “crisis” became involved did anyone stop to think of what was really happening. Employees were just doing their job and homeowners did not want to hear the truth about not being able to own their own home. The entire process was full of lies. Lies to one another and to ones self.
ReplyDeleteOn a side note I think it’s interesting Tamara is now a lawyer helping people in New Jersey (the same place she used to work approving loans) to keep their home. How does that look to a judge? Especially if she were to be involved somewhere in the clients case, other than as the lawyer.
It's quite shocking that "a person with common sense" could see the problem but they still become ignorant.
ReplyDelete