Bill Black: Judge rules that Flagstar, a big mortgage lender that gave “liars loans”, is liable to insurance company – same issues at stake in Bank of America case.
“MASSIVE BUSINESS BUILT ON FRAUD”
And the insurance players are, you know, a relatively moderate to modest group. The other folks who would have been defrauded in this fashion of course include Fannie and Freddie and all the investment banks and random cities in Norway and such. So all of those entities’ potential to win their cases just went up rather considerably if other judges approach the law the way Judge Rakoff did. Now, that’s the first thing.
Here’s the second thing that is, however, getting absolutely no press and is completely insane. So remember there are only lawyers for the lender and lawyers for the insurance company arguing to the judge. And so a bizarre version of reality emerged from all of this in which 75 percent of the time the lender lies deliberately to the insurer, lies to the people who buy the bonds. All of these people are, you know, supposedly among the most sophisticated financial players in the world. But as soon as they get to fraud in the origination, in the making of the loan, with no discussion, everybody involved assumes that it must have been the borrowers that did all the lying, not the lenders.
And of course this is completely insane, completely contrary to the accounting control fraud recipe, in which the lender deliberately makes—grows enormously by making incredible numbers of crappy loans at a premium yield with extreme leverage and next to no reserves against losses. And guess what? That’s exactly what the lender did in these cases.
But because there is no one representing the borrower, and because there is no one bringing criminology theory and findings and research findings in front of the judge, they just all assume that all of this fraud had to arrive from the borrowers, even in a case where they’re saying that the lender repeatedly lied to everybody else involved.
Read the case: Assured Guaranty Municipal Corp v Flagstar Bank, FSB | NY judge finds Flagstar liable for $90.1 mln in mortgage case
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
This should be HEADLINE NEWS across the nation! WOW, that is a BFD!!! WOW!
BANK OF AMERICA TOO BIG TO FAIL ARE MEAN CROOKS BUT THEY ARE PROTECTED BY POWERFULL GOVRENMENT PEOPLE
” everybody involved assumes that it must have been the borrowers that did all the lying, not the lenders.”
Less people are buying this propaganda effort, whether it’s being hacked by some shill at George Mason or published in American Bankster. Also, these cases seem like the same issues a average Joe-Schmo homeowner could raise, if things weren’t stacked against them, to prevent them from every doing so.