U.S. Must Continue Propping Up Mortgage Market Says Bank Execs.

Or this about Wall Street:

By design ... Wall Street set out to sell insurance policies in order to entice investors to purchase their mortgage backed securities.

By design ... Wall Street purposely chose to call these insurance policies "credit default swaps" ... in an attempt to evade insurance industry regulation ... which included capital reserve requirements adequate to pay potential claims.

By design ...Wall Street collected the insurance premiums ... knowing they had no means of paying the potential claims.

This is the definition of a crime ... this is is illegal.

As foreclosures began to increase ... owners of these worthless credit default insurance policies began to file claims ... and Wall Street's insurance crime was quickly exposed.

Wall Street had sold the insurance policies ... collected the massive premiums ... but failed to set aside any reserves to pay the claims.

Wall Street then turned to their corrupt political friends in Washington DC for help.

Our corrupt government urgently and hurriedly took "our" taxpayer money and handed it over to "their" Wall Street friends ... SO THEY COULD PAY THEIR CREDIT DEFAULT SWAP CLAIMS ... and that included payments to overseas Banks !

TARP was an awkward attempt to hide the enormity of this crime ... as well as our government's complicity in this crime.

Wall Street's reckless criminal behavior caused the financial crisis ... not sub-prime loans, mortgage brokers, or foreclosures.

The financial crisis had a genesis ... and it was Wall Street.

The secondary market collapsed because the primary market collapsed. We've already discussed our beliefs on why the primary market collapsed.

Quote:

---

Originally Posted by Havakasha

http://www.publicintegrity.org/blog/entry/1664/

From Sept., 2009

"An analysis of federal mortgage data found that fully half of all subprime loans were made by non-bank mortgage companies, subject to little oversight and regulation. Further reporting uncovered that these nonbank lenders were not required to file reports of suspicious activities to the federal gov't, unlike almost every other player in the financials services realm, from banks to casinos to check cashers."

" And one year from the collapse of Lehman, many of the loans that crippled the financial system could still be made today. High-cost, o documentation subprime loans are still perectly legal. But that could be changing, as the proposal for the Consumer Financial Protection Agency and other regulation plans move forward"

Note: The Consumer Financial Protection Agency was proposed and passed by Democrats. Republicans were opposed.

You really are going to have to stop your steady diet of Fox news. You could end up like a lot of those listeners believing all kinds of crazy stories. :)

---

OK, so these mysterious private mortgage companies supplied 50% of the sub prime loans. Who did they sell them to?

I still reject this as the root cause. The culture governments roll of home ownershiphas a far more reaching history. It's impossible to ignore as you can see by current debate.

You can reject all you want. Its seems to be a fact. Oh, maybe you can contact the studies authors and the website?

Well like i have said many times i believe i have clearly demonstrated the financial crisis is more complex and less about just Fannie and Freddie than you seem to WISH it to be. Its obvious your not open to any new insights.
Sa la vie

Tell me more about these private mortgage companies, or can't you?? This is my second request. Maybe you're simply listening to the talking point of unFox News and simply repeating "private mortgage companies". Tell me the inevitability of these companies. What happened to them? What did they do with the mortgages? Tell me how this works.

I've explained my beliefs. Expain yours.

You sound like you dont believe that non bank mortgage lenders exist? LOL.
i only have so much time in the day. I kind of was hoping you were going to research a little about Mr. Poole (but i quess since you rejected his knowledge out of hand maybe that wasnt such a smart assumption. ) and dig a little into all those non-bank mortgage companies.
Sorry i dont have all the names at my fingertips.
When i get some time i will try to pass some info to you.

in answer to your previous question i would quess that these non-bank mortgage companies sold mortgages to people. Now how is that for some
swift thinking? LOL.

P.S. HEY S&L I JUST SIMPLY PUT NON BANK MORTGAGE LENDERS INTO GOOGLE AND A WHOLE SLEW OF INFO JUST CAME UP. HERE IS ONE SIMPLE ARTICLE WHICH PICKS UP ON WHAT I QUOTED EARLIER. THERE IS A LOT MORE WHERE THIS CAME FROM. IM HEADED TO BED. GOODNIGHT.

U.S. TREASURY DEVELOPS NON-BANK MORTGAGE LENDER RULES.
July 15 (Reuters) - Cash reporting requirements for U.S. banks may be expanded to non-bank residential mortgage lenders and originators, a federal agency that polices financial crimes said on Wednesday.

The Financial Crimes Enforcement Network (FinCEN), a division of the Treasury Department, notified the mortgage industry that it is considering whether to move ahead with proposed anti-money laundering and suspicious activity reporting regulations.

"As primary providers of mortgage finance who generally deal directly with consumers, these lenders and originators are in a unique position to assess and identify money laundering risks and possible mortgage fraud while directly assisting consumers with their financial needs and protecting them from the abuses of financial crime," FinCEN Director James Freis said in a statement.

The announcement comes as Congress ramps up efforts to reform the financial services industry and protect consumers. Some lawmakers have already urged federal regulation of mortgage lenders and non-bank financial institutions.

FinCEN works to protect the financial system from illicit activity, such as terrorist financing and money laundering, by collecting and analyzing financial intelligence.

In March, FinCEN said that perpetrators of mortgage fraud were likely to participate in other financial crimes, citing 2,360 of about 156,000 mortgage fraud subjects that were reported for suspicious activity in other financial areas. A concern is that non-bank residential mortgage lenders could present a significant chink in the system's armor of protection. (Reporting by Wendell Marsh, editing by Gerald E. McCormick)

Quote:

---

Originally Posted by SiriuslyLong

OK, so these mysterious private mortgage companies supplied 50% of the sub prime loans. Who did they sell them to?

I still reject this as the root cause. The culture governments roll of home ownershiphas a far more reaching history. It's impossible to ignore as you can see by current debate.

---

Where the hell did you get the idea they are "mysterious"? Just because you dont know a lot about them? All that tells us is that you (I put myself in the category as well) obviously dont know everything about the mortgage market or the financial crisis. If they supplied 50% of bad subprime loans they are obviously not quite mysterious to people in the know.
As i said before simply google non bank mortgage lenders and you will find a load of material.

Non bank mortgage is still not clear to me, and yes, I have googled it and nothing striking came of it. You say these non banks made shitty loans? Did they go bankrupt? You see, I am trying to learn here. For me, non bank mortagage loans is a talking point. I want to understand structurally what happened to these shitty loans. Did Lehman Bros buy them? Did Fannie and Freddie buy them? It's easy to SAY they caused the crisis, but that's simply parroting.

On the flip side, structurally speaking, federal policies have been in place to make home ownership a reality for everyone since 1934. To me, that's poingnant. The charter of Fannie and Freddie was to help banks make more mortgages. Thats' poingnant. It's well documented. The policy created a culture of easy money.

Again, I readilty admit several factors caused the bubble, but underlying problem is federal policy from all the way back to 1934. Now we have a big complicated mess of government involvement in free markets, and we've (you and I other like us who pay our taxes) have pumped $150,000,000,000 into Freddie and Fannie. And because of the tangled mess made, it's going to be all the harder to solve. Big government at work.

I see there is another banner month for jobs creation. The first trillion clearly didn't make enough ARRA road signs LOL.

When in doubt

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

Or better yet a nice graphic. Note that the factors are not weighted. I would weigh "government" the highest lol.

http://en.wikipedia.org/wiki/File:Le...-_10_19_08.png

oooooooooooooooh, love this line.

"For decades, GSE-Government Sponsored Entities (Ginnie Mae, Fannie Mae & Freddie Mac) have purchased mortgage from a variety of mortgage companies and banks and sold bonds. These bonds represent the first mortgage-backed securities (MBS). These loans are referred to as "qualifying" or "prime" when they meet the GSE underwriting standards. The GSEs have missions that included helping provide housing to lower-income Americans by purchasing mortgages from originating firm. A small percentage of these loans are non-prime. A variety of politicians supported this mission both formally and informally.[2]"