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Yes, but in order to give low-income and high risk borrowers access to home ownership, HUD and the GSEs began accepting "nontraditional" qualifications for approved loans in 1994 when Clinton and the Dem Congress rewrote the CRA.
As Mircea said, no fraud was committed by the loan originators, e.g. Mozilo at Countrywide, they were just functioning under their affordable housing agreements with HUD , etc. Where the fraud came in was when the GSEs bundled and sold the loans as MBS, not disclosing the "nontraditional" loan documentation and leaving the securities buyers thinking that the loans backing the MBS had met all traditional documentation requirements.
There have been no prosecutions of loan originators because the federal government was complicit. And there will be no prosecution of the GSEs' nondisclosure of adverse loan conditions because, again, the government was complicit.
No, Mozilo still signed off on inaccurate financial statements. Sarbanes/Oxley was supposed to have addressed that after Enron. One should note that he is guilty even if he was not aware that the statements were inaccurate. (he was).
That out of the way, you will note that many who worked for Countrywide tell the story about actual fraud outside of accepting non verifiable income. They changed contracts after the fact along with a whole list of other things that could not be described as anything but fraud.
No, Mozilo still signed off on inaccurate financial statements. Sarbanes/Oxley was supposed to have addressed that after Enron. One should note that he is guilty even if he was not aware that the statements were inaccurate. (he was).
Look into this a little more carefully...
Quote:
"In its civil complaint, the SEC accuses Mozilo and two of his top lieutenants, former Countrywide Chief Operating Officer David Sambol and former Chief Financial Officer Eric Sieracki, of misleading investors about the risk underlying the billions in mortgages the company sold.
Which is EXACTLY what the GSEs did, as well.
Quote:
Mozilo's attorney, David Siegel... "The SEC's allegations are baseless," he said. "Mr. Mozilo acted properly and lawfully at all times."
And THIS is KEY:
Quote:
"Countrywide's investors, bondholders, rating agencies, and the financial industry were all well aware that mortgage lending practices were liberalized at Countrywide and almost all other financial institutions."
LIBERALIZED. The government-initiated liberalized lending policies (nontraditional documentation) affected virtually every mortgage originator. AND a great many mortgages are bought from the originators, bundled, and resold as MBS by the GSEs. Trillions of dollars worth.
Quote:
Originally Posted by pknopp
That out of the way, you will note that many who worked for Countrywide tell the story about actual fraud outside of accepting non verifiable income. They changed contracts after the fact along with a whole list of other things that could not be described as anything but fraud.
...to MEET the requirements in the deal they signed with HUD to provide affordable housing.
Given all of that and their own complicity... the government's solution to making it look like they were pursuing what everyone else would normally consider fraud was to settle with Mozilo for a ridiculously low fine (given the circumstances), say justice is done, and sweep their own complicity and guilt under the rug.
And how many of you fell for that?
Last edited by InformedConsent; 02-10-2013 at 11:14 AM..
Bankers create money out of thin air and loan it to you at interest.
You then have to pay the principle and interest back out of your work, blood, sweat, and tears.
This is nothing short of slavery.
Right now as we speak, the federal reserve (which is a privately owned corporation - owned by private central bankers), prints out of thin air $85 billion each month. They use this to purchase 'mortgage backed securities' and other bonds. Meanwhile the bankers pay themselves multi-million dollar bonuses.
You on the other hand must work much of your whole life to pay off your $300,000 mortgage.
This system is unsustainable and will collapse at some point.
Yes, I agree that the government decided to not pursue the charges because they did not want to take the risk of what would be said in a trial.
They could have easily convicted Mozilo based upon the law.
Which would have exposed the government's own complicity and guilt in violating the exact same law. That's why a Mozilo conviction on such never happened.
Bankers create money out of thin air and loan it to you at interest.
You then have to pay the principle and interest back out of your work, blood, sweat, and tears.
This is nothing short of slavery.
Right now as we speak, the federal reserve (which is a privately owned corporation - owned by private central bankers), prints out of thin e air $85 billion each month. They use this to purchase 'mortgage backed securities' and other bonds. Meanwhile the bankers pay themselves multi-million dollar bonuses.
You on the other hand must work much of your whole life to pay off your $300,000 mortgage.
This system is unsustainable and will collapse at some point.
Here's a simple solution. If you don't have the means to pay back a loan don't take one out. Other than that that I think you have Obammie and the Banks switched.
Which would have exposed the government's own complicity and guilt in violating the exact same law. That's why a Mozilo conviction on such never happened.
Quote:
Originally Posted by InformedConsent
Look into this a little more carefully...
Which is EXACTLY what the GSEs did, as well.
And THIS is KEY:Inside the SEC Case Against Mozilo
LIBERALIZED. The government-initiated liberalized lending policies (nontraditional documentation) affected virtually every mortgage originator. AND a great many mortgages are bought from the originators, bundled, and resold as MBS by the GSEs. Trillions of dollars worth.
...to MEET the requirements in the deal they signed with HUD to provide affordable housing.
Given all of that and their own complicity... the government's solution to making it look like they were pursuing what everyone else would normally consider fraud was to settle with Mozilo for a ridiculously low fine (given the circumstances), say justice is done, and sweep their own complicity and guilt under the rug.
And how many of you fell for that?
That would be the long and short of it. The government will never admit its guilt or complicity to anything.
I'm really curious to know why just a few banks ended up holding that debt -- and collapsed because of it. It smells like they were targeted.
Here's a simple solution. If you don't have the means to pay back a loan don't take one out. Other than that that I think you have Obammie and the Banks switched.
Taxpayers never signed off on the billions in loans they are on the hook for paying back.
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