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Mortgage Fraud

Massachusetts Courts to Banks on Foreclosures: The Law Matters

Richard Zombeck | Posted 05.25.2011 | Business
Richard Zombeck

In the past, a bank representative or attorney for the bank would walk into court, point out that the "deadbeat homeowners" weren't paying their mortgage and the family would get kicked out. But that may have finally changed.

CHART: Florida AG's Disturbing Foreclosure Fraud Presentation

The Huffington Post | Abby Wendle | Posted 05.25.2011 | Business

In their effort to sniff out foreclosure fraud, Florida regulators followed the trails of mortgage and foreclosure paperwork into a world of alleged f...

Why Mortgage-Backed Securities Aren't (Backed by Securities): How MERS Toasted the Banks

L. Randall Wray | Posted 05.25.2011 | Business
L. Randall Wray

It is clear now that the banks have got to take the whole lot of toxic waste securities back. Trillions of dollars worth. The banks are toast. There is no cooking of the books that will turn this blackened toast back to bread.

Why Cash Incentives for Whistleblowers Are So Useful Against Control Frauds

William K. Black | Posted 05.25.2011 | Business
William K. Black

If control fraud were rare then the proposed financial incentives for whistleblowers would be more dubious. But the current epidemic of accounting control frauds has caused massively greater damage than did their S&L counterparts.

No Home for Xmas: Can Labor -- or Anyone -- Stop the Foreclosure Mess?

Art Levine | Posted 05.25.2011 | Business
Art Levine

Protesters' voices should be heard if the Democrats have a chance of showing the public that they're willing to stand for the needs of average citizens against Wall Street.

Mortgage Fraud Summit Reveals Both Systemic Fraud and FBI's Seeming Blind Eye

Suzanne O'Keeffe | Posted 05.25.2011 | Business
Suzanne O'Keeffe

To combat mortgage and foreclosure fraud, we first need to understand the nature of the fraud. There are the small-potato schemes -- the loan modifica...

Anatomy of Mortgage Fraud, Part III: MERS'S Role in Facilitating the Mother of All Frauds

L. Randall Wray | Posted 05.25.2011 | Business
L. Randall Wray

By design, Wall Street created a home finance system that is both unable to accommodate borrower distress and that is strongly incentivized to foreclose as soon as possible.

Anatomy of Mortgage Fraud, Part II: The Mother of All Frauds

L. Randall Wray | Posted 05.25.2011 | Business
L. Randall Wray

The destruction of mortgage notes and the creation of falsified documents by "Burger King" robo-signers probably wasn't planned back in 1999. But it is still go-to-jail fraud.

Shahien Nasiripour

FCIC Delays Report Despite Republican Opposition, Citing 'Very Powerful Interests' Seeking To Undermine Investigations | Shahien Nasiripour | Posted 05.25.2011 | Business

The bipartisan panel created to investigate the roots of the financial crisis voted Wednesday to delay the Dec. 15 publication of their report despite...

Lenders Put the Lies in Liar's Loans

William K. Black | Posted 05.25.2011 | Business
William K. Black

Inducing endemic appraisal fraud is an optimal strategy for a lender that is engaged in "accounting control fraud." Accounting control frauds drove the second phase of the S&L debacle, the Enron era crisis, and the ongoing crisis.

Dan Froomkin

Nine Stories The Press Is Underreporting -- Fraud, Fraud And More Fraud | Dan Froomkin | Posted 05.25.2011 | Business

If it wasn't already blindingly obvious that pervasive fraud was at the heart of the financial crisis and the ensuing foreclosure catastrophe, you wou...

The Subprime Swindle and the Foreclosure Fraud Cover-Up

Zach Carter | Posted 05.25.2011 | Business
Zach Carter

Fraud in the foreclosure process conceals a second, more massive fraud: the astonishing levels of mortgage fraud perpetrated by subprime lenders during the housing bubble.

Automated Greed Factories: How Soulless Banking Is Crushing the Economy

Richard (RJ) Eskow | Posted 05.25.2011 | Business
Richard (RJ) Eskow

Financing has become a robotic form of mass production, designed to generate ever-increasing wealth within an artificial system by draining it from the real world. In a word, banks have lost their souls.

White House: No Need For National Foreclosure Moratorium

AP | ALAN FRAM | Posted 05.25.2011 | Politics

WASHINGTON — A top White House adviser questioned the need Sunday for a blanket stoppage of all home foreclosures, even as pressure grows on the...

Boiler Rooms and Foreclosure Mills: A Brief History of America's Mortgage Industry

Michael W. Hudson | Posted 05.25.2011 | Business
Michael W. Hudson

Washington failed to act the first time around -- when lenders were engaged in a frenzy of predatory lending. The foreclosure scandal is a second chance for lawmakers to prove they can ferret out the truth.

Colossal Judgement Failures in Mortgage Mess

The 14th Banker | Posted 05.25.2011 | Business
The 14th Banker

Once again, our largest banks have botched things up. The banking industry is still reeling and in denial on this one. What has newly developed in the last several days is the following.

Banks Pay Fines -- Won't Admit to Crimes Or Do Time

Danny Schechter | Posted 05.25.2011 | Business
Danny Schechter

As banks settle fraud complaints, what has really been settled in the conflict with the bankers?

Goldman, SEC Consider All-In-One Settlement | SUSANNE CRAIG and KARA SCANNELL | Posted 05.25.2011 | Business

Goldman Sachs Group Inc. and the Securities and Exchange Commission recently held discussions about a possible settlement to simultaneously resolve th...

Mortgage Fraud Incidents Up 7% Last Year

AP | ADRIAN SAINZ | Posted 05.25.2011 | Business

MIAMI — Incidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent...

John Paulson Defends His Toxic CDOs by Insulting Everyone's Intelligence

David Fiderer | Posted 05.25.2011 | Business
David Fiderer

There are countless ways to discredit Paulson's recent statements, just as there are countless ways to discredit his claim that he operated in "good faith."

'Operation Stolen Dreams': DOJ Arrests Nearly 500 In Mortgage Fraud Crackdown

AP | KEN RITTER | Posted 05.25.2011 | Business

LAS VEGAS — Some 500 people have been arrested in a nationwide crackdown on mortgage fraud, and federal officials pointed to Las Vegas as one of...

WaMu Executives Knew Of Rampant Mortgage Fraud And Failed To Act

HuffPost Investigative Fund | David Heath | Posted 05.25.2011 | Business

One of the central unanswered questions of the financial crisis is whether bank executives knew fraud was rampant within their mortgage loans. A Sen...

Mamas, Don't Let Your Babies Grow Up To Be Banksters

Terrance Heath | Posted 05.25.2011 | Politics
Terrance Heath

It turns out, toddlers who tell lies do better as adults. Whether this is surprising news about child development, or a sad statement about the kind of society we live in depends on how you define "better."

Ted Harvey Investigated For Fraud

The Denver Post | Posted 05.25.2011 | Denver


States May Sue Banks For Fraud | DAVID STREITFELD and JOHN COLLINS RUDOLF | Posted 05.25.2011 | Business

Frustrated by the banks' inability or unwillingness to stop an avalanche of foreclosures, the states are considering lawsuits over the creation and ma...