Friday, December 24, 2010

Geithner on Foreclosure Fraud: What’s the Problem? | MyFDL

Geithner on Foreclosure Fraud: What’s the Problem? | MyFDL: "Comments with regard to the Congressional Oversight Panel hearing Dec. 16, 2010, with Treasury Secretary Timothy Geithner:

Mr. Geithner disingenuously blamed the American public for borrowing too much credit without acknowledging that homeowners relied upon (albeit inflated) appraisals and lenders telling them they could continue to refinance and pull out their investment gains. Originating lenders treated homeowners like stock market investors. Lenders lied about the value of the homes, the fact that refinancing would be available, and that investing in a home was better than renting. Lenders received enough documentation to determine the borrower’s ability to maintain the investment — they just didn’t pass it along to Wall Street investors… because Wall Street didn’t want it. The defective financial product that Wall Street designed was not made, intended or conducive to long-term lending.

There was a complete disconnect between"

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