Watching the PBS FRONTLINE | Untouchables left a lot of questions about the approach our U.S. government has taken to correct the securities corruption.
More importantly, nothing much has changed much since 2003 when the chaos that took down our economy ramped up into a full blown man made financial force majeure… Continue reading
PBS FRONTLINE - Watch closely - click here.
“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!
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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.
One of the reference patents is a gem called the “Online system for fulfiling loan applications from loan originators” and it describes how technological methodology is integrated into the mortgage lending process. Continue reading