Over the past couple of years there has been a lot of speculation as to who was responsible for the mortgage meltdown. Was it the appraisers for over estimating the value on properties in order to make a mortgage broker happy? How about the Realtors and mortgage brokers who pushed higher price homes upon people who they new were approved but could not afford the homes that they were buying. Maybe the underwriters who turned a blind eye on the files that were incomplete and managers pushed the loans through anyway.
The mortgage lending industry has been under investigation for quite some time and finally arrests were made. 2 hedge fund managers from Bear Stearns were arrested and charged with securities fraud for not supplying correct information as to the performance of their subprime portfolios. Another four hundred plus mortgage industry and housing professionals were also arrested on various charges of mortgage fraud.
This is only the beginning of the mayhem to come. Thousands of lenders, Realtors and appraisers are currently being investigated in order to hold someone accountable. There is a lot of blame to go around and every industry is passing the buck to the next. Things are going to heat up fast so get ready for a wild ride.
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