Comments on: Up to 70% of Mortgage Defaults Linked to Misrepresentation http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to.html Mon, 23 Nov 2009 03:54:45 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Monday’s Linkfest Value Plays http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to.html#comment-54834 Monday’s Linkfest Value Plays Tue, 08 Sep 2009 04:53:11 +0000 http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to-misrepresentation/#comment-54834 [...] This study found most defaults are due to overstatement of income on the mortgage [...] [...] This study found most defaults are due to overstatement of income on the mortgage [...]

]]> By: Yves Smith http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to.html#comment-1043 Yves Smith Sat, 13 Oct 2007 20:24:00 +0000 http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to-misrepresentation/#comment-1043 Tanta, <br/><br/>That thought never occurred to me, but I have no doubt you are on to something.<br/><br/>Anon of 1:44 PM.<br/><br/>The way things are going, the US is going to get its rude awakening, not via the IMF but by the dollar losing its reserve currency status. That will impose discipline that we haven't had to live with heretofore. Tanta,

That thought never occurred to me, but I have no doubt you are on to something.

Anon of 1:44 PM.

The way things are going, the US is going to get its rude awakening, not via the IMF but by the dollar losing its reserve currency status. That will impose discipline that we haven’t had to live with heretofore.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to.html#comment-1042 Anonymous Sat, 13 Oct 2007 17:44:00 +0000 http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to-misrepresentation/#comment-1042 I am coming to the conclusion that the only way we are going to get away with this is repudiation: repudiation of American moral triumphialism.<br/><br/>When the Asian crisis hit, suddenly all the ooh-ing and aah-ing about Asian values and their work ethic disappeared in an avalanche of tut-tutting over "crony capitalism".<br/><br/>Well, it seems that Americans are disproportionately dishonest and corrupt compared with the rest of us, and took advantage of the weakness of their institutions.<br/><br/>Sounds like they need an IMF program. That would teach them. I am coming to the conclusion that the only way we are going to get away with this is repudiation: repudiation of American moral triumphialism.

When the Asian crisis hit, suddenly all the ooh-ing and aah-ing about Asian values and their work ethic disappeared in an avalanche of tut-tutting over “crony capitalism”.

Well, it seems that Americans are disproportionately dishonest and corrupt compared with the rest of us, and took advantage of the weakness of their institutions.

Sounds like they need an IMF program. That would teach them.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to.html#comment-1036 Anonymous Sat, 13 Oct 2007 13:15:00 +0000 http://www.nakedcapitalism.com/2007/10/up-to-70-of-mortgage-defaults-linked-to-misrepresentation/#comment-1036 Here's the research I'd like to see:<br/><br/>Take a nice big sample of a bunch of nice 80% or less purchase money loans, full doc, to subsequent (not first-time) homebuyers. (The "upgrade" crowd.)<br/><br/>Pull out the ones where the down payment came from proceeds of the sale of the prior home. Take those, and look at the terms of financing of the prior home.<br/><br/>I would bet you a pot of money that you would find that a significant number of the "non-fraudulent" nice loans to the sanctimonious middle class who are bitching loudly about "bailouts" were enabled by fraudulent lending to the buyers of their previous home. After all, there has to have been a property seller in all these fraudulent transactions. And those sales proceeds have to have gone somewhere.<br/><br/>Bottom line: the ugly rock we don't want to lift up is where a lot of these "homeowners with equity" got that equity.<br/><br/>Tanta Here’s the research I’d like to see:

Take a nice big sample of a bunch of nice 80% or less purchase money loans, full doc, to subsequent (not first-time) homebuyers. (The “upgrade” crowd.)

Pull out the ones where the down payment came from proceeds of the sale of the prior home. Take those, and look at the terms of financing of the prior home.

I would bet you a pot of money that you would find that a significant number of the “non-fraudulent” nice loans to the sanctimonious middle class who are bitching loudly about “bailouts” were enabled by fraudulent lending to the buyers of their previous home. After all, there has to have been a property seller in all these fraudulent transactions. And those sales proceeds have to have gone somewhere.

Bottom line: the ugly rock we don’t want to lift up is where a lot of these “homeowners with equity” got that equity.

Tanta

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