“To hear some on Wall Street tell it, no one saw the financial crisis coming. As Jamie Dimon, the chairman and CEO of JPMorgan Chase, explained to the Financial Crisis Inquiry Commission, “In mortgage underwriting, somehow we just missed … that home prices don’t go up forever.” The program in its entirety can be viewed here. It is definitely a must watch!Continue reading →
The turn of the century mortgage lending fiasco was built like a 21st Century casino.
The entire scheme started with the homeowner who wanted to buy a home or refinance at unbelievable interest rates… too good to be true… and they were!
It all started with a loan application called a “1003.” EVERY lender in the scheme used the same loan application software. In fact, Fannie Mae patented the sucker. Inside this specific patent are numerous patents related to and referenced that make up the beloved 1003 loan application. These patents are listed on line in the USPTO.