Many banks and consumers are claiming fraud when it comes to the subprime mortgage problems, and yet we need to ask ourselves how much is really due to fraud. The New York Times did an interesting piece on this, it had a few examples of how at least some of the fraud was committed, as appraisers, mortgage brokers, and others were in cahoots.

On the consumer, side folks are saying that they were duped into taking loans that they did not understand or that were not properly explained to them. They claim that the mortgage broker deceived them and purposely held back information in order to secure a high commission in brokering the loans. Many Hispanic Consumer Rights Groups claimed that, Hispanics who did not properly understand all the ramifications or even have good use of the English language and therefore, were taken advantage of.

Many realtors know of less than ethical mortgage brokers, but say that that is indeed a low-percentage of the total of all mortgage brokers and most homebuyers knew darn good and well exactly what they were getting into. Still, there was some fraud, misrepresentation or deception going on at the height of the bubble and the NYT has pointed out some rather high profile cases of outright criminal activity.

Linking all or most of the foreclosure problems to fraud is ridiculous say many in the industry and banking analysts. Yet, we see politicians pushing on podiums and making a scene in order to garner votes in upcoming elections. Adding more regulation, lawyers, paper work and on-going education to the real estate industry - Well, I ask is that really needed?

Learn more about the scams and a scheme and the scenarios that make you want to scream:

http://online.wsj.com/article/SB119820566870044163.html?mod=djemWMP