Many times we hear that it is exotic mortgages with resetting ARMS that are fueling the sub-prime foreclosure melt-down. A new report from the State Foreclosure Prevention Working Group suggests something far more nefarious.
“A significant percentage of subprime adjustable-rate loans are delinquent before they experience payment shock from their first adjustment, reflecting weak underwriting or fraud in the origination of the loan,” the report concluded.
More here and here (see link, upper right).
My question is this: they have found the fraud….now when are the indictments coming?
Related posts:
- Refinance Reality Check
- Barnstable County Foreclosure Rate Highest in State
- Storm Preparation: Letting Go and Moving On
- South of the Border: Foreclosures in Rhode Island
- The Road to Foreclosure: Non-traditional Mortgages
Tags: Consumer Protection, In the News, Mortgages and Foreclosures