by John Galt
February 5, 2012 11:15 ET
Gretchen Morgenson has produced a story in this morning’s edition of the New York Times which is a must read as a primer regarding the severity of fraud within the mortgage and real estate industry:
(Click on the title to read the story in full)
The one portion, excerpted from the story above, which should tantalize my readers and cause great pause is as follows:
Now he splits his time between Orlando and Boca Raton, advising lawyers as an expert witness. “From my own personal experience and 20 years of research and investigation, nothing — and I mean nothing — that a bank, lender, loan servicer or their lawyer says or puts on paper can be trusted and accepted as true,” Mr. Lavalle said.
The bottom line from this story, in my honest opinion is as follows:
Only a fool would sign a contract with any agency or lender until the entire United States financial system has been reformed with the renewed emphasis on due process for both lenders and borrowers enforced in such a manner to make fraud a dangerous criminal proposition. If you’re stupid enough to buy a home under the circumstances as the system of laws and lack of enforcement exists at this time, you are a fool.
When you take a moment to read the story referred to above, make sure you take a moment to read the legal documentation from the report submitted to Fannie Mae by their own lawyers. If there is ever any doubt that fraud, theft, and criminal wrongdoing has been engaged in for a long duration of time by not just the GSE’s but the financial industry, this article and the report included should change your mind.