JOE NOCERA – The Mortgage Fraud Fraud

The Mortgage Fraud Fraud

Second, though, it seemed incredible to me that with all the fraud that took place during the housing bubble, the Justice Department was focusing not on the banks that had issued the fraudulent loans, but rather on those who had taken out the loans, which invariably went sour when housing prices fell.

As I would later learn, Charlie Engle was no aberration. The current meme — argued most recently by Charles Ferguson, in his new book “Predator Nation” — is that not a single top executive at any of the firms that nearly brought down the financial system has spent so much as a day in jail. And that is true enough.

But what is also true, and which is every bit as corrosive to our belief in the rule of law, is that the Justice Department has instead taken after the smallest of small fry — and then trumpeted those prosecutions as proof of how tough it is on mortgage fraud. It is a shameful way for the government to act.

“These people thought they were pursuing the American dream,” says Mark Pennington, a lawyer in Des Moines who regularly defends home buyers being prosecuted by the local United States attorney. “Right here in Des Moines,” he said, “there was a big subprime outfit, Wells Fargo Financial. No one there has been prosecuted. They are only going after people who lost their homes after the bubble burst. It’s a scandal.”

Full column here…

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4closureFraud.org

Comments
4 Responses to “JOE NOCERA – The Mortgage Fraud Fraud”
  1. To Tell The Truth says:

    Actually, it seems as if the mortgage brokers and banks looked for those who would become delinquent within ninety 90 + 1 day so they could collect the insurance…they wanted buyers who would not be able to pay after a while as we now know that there is more money to be made with fraudclosures…

  2. Pamela Edwards says:

    I so agree with both of the previous posts.Won’t end anytime soon either.

  3. Judith McDonald says:

    When injustice becomes law then Resistance becomes duty. Thomas Jefferson

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