HUD’s Report to Congress on the Root Causes of the Foreclosure Fraud Crisis

“Control fraud is when the CEO of a company uses the corporation as a weapon to commit fraud”. William Black

“The result is – we have seen zero prosecutions of the specialty non-prime lenders that caused the crisis,” Black said. “The mortgage bankers are going to position themselves as the victims. This has been so successful that the FBI now has a mantra. They are saying there are two kinds of mortgage fraud. Fraud for profit and fraud for housing. And neither of them is control fraud. They have effectively said – control fraud is impossible. Even though it was the entire story behind the savings and loan crisis, the Enron wave, and the creation of the most recent housing bubble.”

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HUD’s Report to Congress on the Root Causes of the Foreclosure Crisis