Fraud related to the mortgage market crash occurred at each end. The two ends are — (1) The consumer end. Home-buyers contracted with banks and mortgage sellers like Countryside for loans. These are debt contracts. (2) The banking end. Banks sold “securities” using bundles of mortgages as the underlying “thing of value” to its largest (and often, most gullible) customers.
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US Politics | AMERICAblog News: Taibbi on Schneiderman’s task force—plus a primer on mortgage fraud (via robot-heart-politics)
There was also fraud in the middle—where unscrupulous mortgage brokers made false representations to both their borrower-clients and to the lenders. And where the lenders paid the mortgage brokers to breach their duties to the borrowers. And there’s fraud on the other other end where banks are trying to foreclose. And fraud in the other middle where lenders are pretending to regulators that they are living up to all the obligations they are ignoring.
(via robot-heart-politics)
