ABSOLUTELY! Laws were broken in this mess. I am an accountant who saw this for years. I would love to talk to the FBI about it.
They faked appraisals for mortgage companies who then sold the loans and did not have to worry about them not being repaid.
Banks trained employees to NOT ask any questions or VERIFY data on mortgage applications. I was told by a banker that if a person put down they worked for McDonald’s and earned $100,000.00 annually, they were to take their word for it.
Banks sold the mortgages and did not have to worry about repayment.
5 to 10 credit offers with 0 % interest arrived in the mail to almost EVERYONE suckering them in. Many filed bankruptcy.
The financial industry standards of the past few years were insane compared to when I bought my home in the 1980’s.
Yes, these people need to go to jail! All of them, not just a few scapegoats.
“I was told by a banker that if a person put down they worked for McDonald’s and earned $100,000.00 annually, they were to take their word for it.”
You were misled. When you get a mortgage from either a bank or a mortgage broker, you have to provide real documentation to backup your income. In North Carolina, you have to provide your paystubs, w2 form, and a copy of your most recent filed taxes.
That’s how it worked in the early 90’s, and it’s still how it worked in the 2000’s.I doubt any of this stuff is true that the Democrats are claiming. They’re just trying to mislead the voters into thinking the fault is with the banks, rather than government run mortgage industry (Fanny and Freddie).
A college acquaintance who became a Broward real estate attorney went to Federal jail for 1½ years, as he was the only one of 20 real estate attorneys who pled "not guilty" to these charges. I don't know what happened to the others.
The judge said he had to get out of his RE-attorney business, so his old firm was bought by a friend, and he was hired there as a "law clerk" at a $200K annual salary.
(Federal Court / Broward County, FL., about five years ago.)
I got a couple full cavity searches when we got our loan this year. The process was brutal!