Cory Frey wrote on March 21, 2008 03:31 PM: Easy guys. The quote Hubble ended with stating that I in know way blame the bwr etc. was submitted to hubble as a response to his question about mtg fraud. It was then followed up with another sentence stating many are at fault etc.. To be clear, the mtg. mess is a result of many. from the borrower to the bank to the bond ratings to the secondary markets and so much more. Of most importance is that many learn from this debacle and move on.

yes man wrote on March 16, 2008 02:05 PM: Cora, I beg to differ.....builders might set the asking price for a new construction home but they do not determine the price of a resale house. Have you ever seen a completed appraisal form? The value of the subject home is determined by using 3 comparable sales that have already closed and making adjustments to those prices depending upon the differences with the subject. If the builder sets a price and the appraiser disagrees the bank would not make the loan, end of story...unless there is something foul going on. If builders set prices are you saying a 15 year old home would sell today for the same price as a new one? Why would anyone elect to buy a resale house when they can get a new one for the same price? You're comparing two different products, a new construction house to a resale. Again I have to ask are you an appraiser? I'm not looking to blame anyone, when it's all said and done people are responsible for their own actions. All I am saying is that real estate and mortgage fraud has hurt alot more people than these reports indicate. People base their prices of homes on what neighboring houses sold for...it you based that value on inflated fraudulent purchases then you too have incurred an injustice.

Michael in Cincinnati wrote on March 16, 2008 04:12 AM: Quoting mark, who wrote on March 15, 2008 10:35 PM: "It is the Federal Reserve and a corrupt political body that allowed this to happen."

You're half right, but it wasn't the Fed, though. It was the Office of the Comptroller General (OCG) who in February 2004, assuming powers it was never statutorily granted, wrote rules into the Federal Register exempting federally and nationally chartered banks from state anti-predatory lending laws that were coming into effect. The actions of the Fed under Alan Greenspan in the years preceeding OCG's unlawful rulings, were intended to protect the US against China's import dominance into US markets and contain our balance of payments. Unfortunately and unintentionally Fed actions contributed to the mortgage market greed spawned by the OCG's unlawful exemption rules. Ron Paul may be correct about some things, which is true about everyone with opinions, but IMHO he is wrong about the Fed. Reserve banking is a risky and even tricker business, but without it and a return to gold-backed currencies, we would have suffered far more and deeper recessions than we have had. Life has been hard enough for most of us without also having had to suffer deeper and longer lasting recessions and unemployment every other year or so. Actually this is not an IMHO, it's a fact of US economic history prior to the advent and use of Federal Central Banking powers. Ron Paul is a hardcore Libertarian, but for his personal affluence (wealth) he would not live in such a "fantasy, make-believe world that believes everyone can be accomplished and wealthy." Jesus said it best, "The poor you will always have with you, and you can help them any time you want." (Mark 14:7)

Michael in Cincinnati wrote on March 16, 2008 03:23 AM: A BANKER ACTUALLY IMPLIES THAT IT WAS THE BANK'S FAULT AND NOT THE BORROWER?

"Not in any way, shape or form do I intend to place the burden on the borrower," said Cory Frey, senior loan officer for Southern Fidelity Mortgage in Las Vegas.

Banks have forever operated with unbridled greed when they could legally get away with it. The Great Depression era Glass-Steagall Act was a bridle placed on Banks to help prevent another Great Depression. Well the bridle was removed in 1999 when Congress, under lobbyist pressure from Citigroup Bank and CEO Prince, repealed the Glass-Steagall Act and once again allowed Banks to enter markets in ways where they could not be regulated. I remember complaining to my Dad in 1999 that the horse was out of the corral again without a rider, saddle or bridle.

Is it any wonder that Citigroup was the first to suffer massive losses in a mortgage-greed market? They were the "inspiration" that started this mess and did not see the greed spreading outside the bank and infecting all real estate insiders (real estate brokers, mortgage brokers, title companies, real estate appraisers, and later even amature flippers).

All of this has happened before, during the 1920's (Roaring Twenties) the decade "irrationally irrational exuberence" that spawned the massive bank failures that took that generation into the GREAT DEPRESSIon. But back then it was the stock market, not the real estate market.

Will we avoid GREAT DEPRESSION II? Don't bet on it! Though the 100-1 longshot appears to be upfront on this first quarter turn, there are three more quarter turns before the stretch and finish line. By then the longshot's endurance will have petered and it will in last place.

scratch dat wrote on March 15, 2008 11:28 PM: these borrowers were either not explained or did not care to understand the exact features relating to their loan's low payment."

Ok, you say the borrower 'didn't care' yet you won't hold them responsible?

Talking out of your a$$ is right.

shantel wrote on March 15, 2008 11:25 PM: Funny how these 'large institutions' haven't been brought to light for dismaying the Fair Housing Act.......hmmmmmmmmmm. Not a one. Why? Because he's making a false statement to make his little chop shop look good. Not one has been names. Come on Cory, who are they? Oh, you can't say because none have been guilty of this. NONE.

You are talking out of your a$$.

Frey Cory wrote on March 15, 2008 11:21 PM: Many are at fault in predatory lending, said Cory Frey, senior loan officer for Southern Fidelity Mortgage in Las Vegas.

Looks like Cory Frey is trying to drum up some business here.

I wonder if he'll loan me a million and when I get my first mortgage payment and $h1t my pants I can say "i didn't know i had to pay this back". Think it'll work?

patti wrote on March 15, 2008 11:18 PM: "Not in any way, shape or form do I intend to place the burden on the borrower," Frey said.

Frey was the kid in school who spilled his milk on the table and said to the other kids "look what you made me do". Yep, he's the one.

assume this wrote on March 15, 2008 11:17 PM: Large institutions were advertising rates and payments to the unassuming public as if they were standard 30-year, fixed-rate mortgages when in fact they were not, he said.

Yeah, right. Nobody advertised this way and you know it. This is a false statement, cop out. UnASSuming public? I don't think so. They ASSumed it was a fixed rate. His statement makes no sense at all.

chillin wrote on March 15, 2008 11:15 PM: There's the borrower playing the market who had to buy, despite his or her ability to pay back the obligation, just so they could realize a future return. And there's the loan officer who, with no hesitation, would do anything to make a buck and not explain certain parameters, Frey said.

The borrower HAD to buy? HAD to buy what? Why? Oh, to realize a future return. Ah, greed, I see now. They HAD to buy.....

ok, got it.

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