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I think it was illegal. 1) Appraisal fraud was rampant, known, and encouraged by the mortgage industry. 2) "Stated-Income" loans were created whereby borrow

I think it was illegal. 1) Appraisal fraud was rampant, known, and encouraged by the mortgage industry. 2) "Stated-Income" loans were created whereby borrowers were again encouraged to falsify applications by the industry. This is fraud.

rmah 11y ago
Banks making mortgages did not pay for appraisals, sellers did. So prosecute the appraisers and sellers. Banks did not falsify borrower income, borrowers did. So prosecute the borrowers. Why blame banks for other people's lies? Or do you think that banks should be responsible for the statements of all parties in any transaction they underwrite or engage in?
- JoeAltmaier 11y ago
  That's whitewashing the banks' participation in a scheme that everybody knew was corrupt. The quality of the mortgages was several ranks lower than presented. Its arguable the banks knew that. If you know other people are lying, and pretend they aren't, you are complicit in the lie.