CNBC's Diana Olick(she's a hottie) just did a report on the FBI's report of rampant mortgage fraud investigations. Our clueless leader President Obama just signed a half a billion dollar mortgage fraud investigation and prosecution bill. Why the heck would we spend 500 million on this now??!! The damage has been done. This is like trying to put out a house fire by pissing on it. What a joke. Where was the FBI, the SEC and our clueless leaders when Julio(an illegal immigrant) with no verifyable income, and no way to repay a loan was given a mortgage for 500k. Where were they when Joe Blow bought a new Mercedes and a big screen with a 100% LTV cash out refi where the property appraised even though there were no comps to support the appraisal. I remember in 2006 when a client of mine wanted to buy a 1.2 million dollar house. She had a 750 credit score and made about 45k a year selling Amway multi level marketing. She was approved for a 97% LTV option ARM loan even though her entire yearly income barely covered the negative amortized payment. Thankfully I talked her into buying a 300k home for 225k so the sellers could settle a deceased estate. I found the fact that she actually qualified for this loan appalling, and it was at that moment I knew this housing run was caused by pure geed and fraud.
So NOW we find out that there was rampant mortgage fraud LOL. I could have told you that back in 2005. I guess possibly I should be an FBI agent, or even better our next president. I could have save our country billions of dollars by telling them of all the fraud going on. Oh wait, that's right, I did try to tell everyone. The fact is no one wanted to listen.
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She's probably glad you talked her into the cheaper house, now, even if it's probably would go for what, $150k now?
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