Latest piece from CBS News on mortgage fraud

[opihiman2]

Hard hitting journalism from CBS News:

 

http://www.zerohedge.com/article/thanks-60-minutes-report-fraudclosure-us-gdp-about-soar-50-billion

 

The stream is on the page.  It's a must watch, I think.  Zero hedge also cites a report from a JPM analyst that shows the benefits of squatters rents on GDP and rental income.  This report is quite interesting as it highlights some important implications on the economy going forward.  As more people walk away from their mortgages and squat (that's not hard to see in my neck of the woods), there should be a bigger boost to GDP and rental income.  Of course, the problem with this thinking is there will be a day of reckoning. The banks will take a hit as they foreclose and mark those assets to market, or people will be forced out of squatting and into paying real rents. The net loss will be to the GDP.

 

The mortgage fraud, though, is probably the most interesting part. 

[ubuy2wron]

The scope of the fraud that has transpired at every step of the process is simply mind boggling.... and many think regulation is a bad thing. the bankers who farmed out processing are like Sgt Schultz on Hogans Heros "I know nothing"

[DynamicPerception]

Very interesting.

[value-is-what-you-get]

I'm almost speechless! 

 

Especially when Sheila Bair, Chairman of the FDIC says "This litigation could easily get out of control . . . we'd like to get ahead of it" it meaning foreclosed homeowners exercising their rights by taking lenders to court to require the lenders to prove they own the home and the debt because the lenders didn't have any paperwork saying they owned it and then produced the paperwork fraudulently in forgery sweatshops.

 

The litigation is merely a response to how out of control the banks and their contractors were and it is now coming home to roost.  The FDIC would like to get ahead of it - well the average taxpayer should expect the FDIC to have been ahead of it!

 

Wow!