patrick.net

It's not that mortgage fraud does not exist or is not a problem, it's that the concentration of resources and attention given to loan applications takes attention away from the very much larger issue of lender abuse.

Do you really think that all the mortgage fraud in the world impacts as many people as rigging the LIBOR? Do you think that robo-signing is not a crime?

If unqualified people got loans then the only way they got them was to pass through lender underwriting systems. Do you think that lender systems which approved such borrowers were fooled? Or complicit?

Thanks.

My father got financing under the GI bill for service in the Pacific.

My father is deceased but I would imagine that it was a no-money down deal.

Interestingly, VA loans have the lowest rate of foreclosure when compared with FHA, subprime and prime loans. See:

http://www.mortgagebankers.org/NewsandMedia/PressCenter/80807.htm

I think, though, that this makes the quality point. VA loans have been very-well underwritten and that's a better protection for lenders then big down payments.

The Wall stree piggies had no interest in the quality of loans. They bought as many loans as they could get. Then repackaged loans they knew were bad as AAA bonds through the crooked rating agencies. Then they bought credit default swaps against the bad bonds and shorted the bonds. Someone needs to do something about this. Its obvious the federal gov is not going to indite the piggies. I'm in anything that goes down!