Who should be blamed for mortgage fraud? - BloggingStocks

Posted April 3rd 2008 5:31PM by Filed under: , , , Inch a remark on about an internal memorandum demonstrating that (NYSE: ) was advising its employees to help place proprietors in committing mortgage fraud, one reader had this to say:

This is all bull. They don't cognize who to point there thumb at! Some people just have got selective memory loss and they simply cannot retrieve that they to had a say so when they got their place loans! Lets not just fault it on the Realtor or the mortgage broker! The message here looks to be that consumers should have got told the existent estate people that they were behaving unethically and, in many cases, illegally.That's not an statement that I purchase for a second. If a prospective place purchaser lies to a loaner of his ain volition, that's 1 thing. But if the loaner or Realtor is complicit, he should bear duty for the enactment -- not the place buyer.The fact is that most people who are buying places don't really cognize how the procedure plant and are reliant on on people to supply them with good-faith counsel. The impression that place purchasers have got a duty to make certain that their agents aren't piquant in fraud is not one that I subscribe to.In many cases, naif place purchasers were led to believe that they weren't doing anything incorrect -- that inflating income is just what you do. A into a auto loan military officer who inflated the incomes of loan appliers characteristics him advising the client that "You can't acquire in problem for this. This is just something we make to acquire the loan approved."The loaning industry should take full and complete duty for ethical lapses: no incrimination should be placed on consumers who followed the advice of professionals.