. . . and scream.
Via Calculated Risk, a series in the Voice of San Diego about post-bubble real estate swindles. The cost to taxpayers is $7.5 million, and the swindle happened in 2008.
A quote about this from Tim Cavanaugh at Reason: "One of the horribly fascinating things about following the real estate market from 2006 until, well, today actually, has been watching how long the body managed to keep running and twitching after the head was blown clean off".
Sunday, March 7, 2010
It Just Makes You Want to Scream
Posted by Harriet at 2:40 PM
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3 comments:
A link to Reason? I'm on the same side, here and even I find that to be less than fair and balanced news coverage.
I don't know anything about Voices of San Diego though.
On the facts of the situation, I really hope no one is surprised that in a huge market turning moment, where the government is the only operating entity, that fraud has occured? FNM/FRE are designed to facilitate the creation of mortgages--not to investigate fraud. As they have little real investment themselves, they have no additional reason to.
One of the interesting things, to my mind, is how the risk factors have not been mitigative at all. States that were no recourse have been hit just as hard, if not harder than states that are full recourse. Perhaps with bankruptcies there's not all that much of a difference, but risks of all sorts, including those, should have played much bigger roles in anyone and everyone's decisions to underwrite.
Except the government, for whom there is no monetary risk.
strikes me as fraud all the way around. The developers, mcconville,
appraisers, straw buyers and even the mortgage brokers.
10 seconds of reserach would find comps at 180K.
i'd indict everyone.
Pat,
Too late to cb?
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