US Atty Gen Launching Investigations
According to MSNBC, a massive investigation will soon be launched by the US Attorney General’s office of banks and subprime lenders as they relate to the mortgage crisis. “I think we are going to see some fairly dramatic results in the near future,” U.S. Attorney Thomas O’Brien told The Associated Press. “Mortgage fraud is an extremely important issue to me and to the people of this district.”
Countrywide, IndyMac and New Century are currently under investigation by a grand jury and it sounds like more will be joining them. Reports indicate that the investigation will be done as quickly as possible so as not to drag it out for several years and to me, the goal appears to be to indict those who committed criminal acts of fraud.
But What About…
I have mixed feelings about it as it could turn into a witch hunt slash blame game but on the same hand, for the individuals and companies that knowingly defrauded homeowners (innocent or otherwise) should be weeded out from the responsible lenders that keep the housing industry afloat.
This casual observer wonders if the US Attorney General will make the 2008 election year October Surprise a similar raid on Congress and the Senate along with the halls of Fannie Mae and Freddie Mac, given that this is what the people see as the epicenter of this mortgage crisis.
photo credit
Steve Simon
October 17, 2008 at 5:53 pm
This citizen agrees with your post’s last paragraph more than the rest…
The fraud and actions of those mentioned in the beginning of your article holds my interest; but the Officials, and Quasi-governmental agency bosses are where my real anger is aimed…
I was in office ofr eight years and never took a personal call on the “House Phone”.
There should be no mercy for those that profited from the pain of the public while in those positions!
Glenn fm Naples
October 18, 2008 at 5:36 am
Lani – it seems like we left the gate open to the corral and horse ran out and now we are closing the gate.
There were individuals that did knowingly place their own personal interests above those of their clients and these individuals should be prosecuted to the full extent of the law as possible.
There were borrowers that were greedy and lied in their attempts to profit.
I truly hope that it does not turn into a witch hunt as witch hunts are consumers of time and resources with insignificant results.
And maybe they should look into the actions of Fannie and Freddie along with Congress. 🙂
Mack
October 18, 2008 at 5:40 am
To start placing blame you don’t have to look any further that campaign contributions. Examine the banking and finance committee members of the house and senate, see who got the big contributions from the 26 or so institutions under investigation and bingo, you have your initial list of possible guilty parties. Then take this list and examine how they voted or turned their head on the issues that have brought us to this massive bailout. Next let the average American taxpayer be involved in the trials instead of their piers in Washington. Finally SHOOT THE GUILTY.
Vance Shutes
October 18, 2008 at 5:56 am
Lani,
Whether an October suprise or not, I, for one, hope the investigation also leads into the Congress. It strikes me, with all I’ve read and heard in the media, that some members of Congress were complicit in their actions. They fostered and enacted laws which directly led to the abuses we now learn about. Some may have even had financial benefit from the laws they enacted.
Further, I fully expect that some (many?) leaders of Fannie and Freddie will be investigated and charged. Again, from the news reports, it strikes me that they knew that there problems and did nothing about them. One specific leader reaped a huge golden handshake after only a few weeks of work. What I’d really like to see are embarassing news reports with names and faces. Mushrooms wilt in the sunshine.
LIke any active agent, I know many mortgage loan officers – whether direct lenders for banks, or mortgage brokers. Speaking only for myself, I cannot recall any individual loan officer who acted with anything other than total integrity. Perhaps the investigations you cite will lead all the way down to individual loan officers, perhaps not. Instead, I suspect that the investigators will be plenty busy with the corruption and deceipt at the top – and that’s as it should be.
Matthew Rathbun
October 18, 2008 at 9:45 am
What we really need is a list, maybe a blacklist just like the successful (sarcasm) Hollywood Blacklist on the late 1940’s – or better yet let’s throw all the lenders and Realtors in the lake, while bound and see who floats. Those who do float are obviously criminals…
Look, it’s the government trying to act too tough, too late. There is an overwhelming amount of regulation out there – the legislators could have intervened long before now.
It’s all a show.
Thomas Johnson
October 18, 2008 at 11:04 am
I would caution my fellow komrades from casting any negative comments toward the wise and merciful kongresspeople and their generous financial backers at FNMA and Wall Street. Once we finally get the Hope and Change regime under the most merciful and wise Messiah in January, these unpatriotic comments might subject you to rendition as a subversive terrorist under the provisions of the Patriot Act. In order for us to have Hope and Change, we cannot tolerate any subversion from enemies of the state. Again, please be careful about your comments about our wise komrades in Kongress.
Jack McCabe
October 20, 2008 at 7:45 am
I also hope they go after other top donaters to the politicians who have created the laws that made stealing from the American public a legal enterprise in real estate. In my opinion, add to the list the NAR, MBA, and the NAHB leadership and lobbyists.
It’s also my opinion the powers that should go after the top heads of the NAR that proliferated propaganda and misconceptions of homeownership risks and rewards to continue the gravy train of commissions to their affiliated associates. they played as great or greater of a role as any politician or wall street derivative and credit swap dealer.
Go after Congress (yes), go after Wall Street (yes) and go after the real estate consortium of associations, the VERY LARGE contributors to the politicians. Go after the self grandizing liars, cheats, and thieves.
May be a bitter pill to swallow for NAR members that their leadership should also be held accountable, but they proliferated the Ponzi scheme, house of cards real estate market for their own best interests. Time for them to also pay the piper.
And, if you cultivated or sold homes and condos to investor/flippers during the artificial boom, if you steered any clients toward certain mortgage brokers or companies because they could make a loan to your very uncreditworthy clients, if you continued to hype the boom when the bust was imminent and convinced people to buy homes that have them upside down or in foreclosure, perhaps their should be a pair of cuffs waiting for you for despicable role you played.for greed.
Glenn fm Naples
October 21, 2008 at 6:50 am
@Matthew –
Agree with you too late. But is there some neglience involved?
The show is called election year.