Scam of the century
July 21, 2010
Your April 17, 2010, article about Goldman Sachs connects the final “dots” about the “sub-prime” mortgage frauds. Someone high up on Wall Street came up with the “greediest” plan of all time.
Realtors are told by a mortgage company that we have a way to approve borrowers with bad credit. So, submit applications regardless. Then, they package these “loans” and sell them to Wall Street firms who then push them to their unsuspecting customers knowing that many of these loans will fail.
As your article points out – insiders short these package owners stock if they are a publicly traded company. The Paulson Co. made $15 billion in less than a year as these mortgages “tanked.” They were designed to fail.
A friend told me about a landscaper, an illegal alien with a “fake” Social Security card, who was able to buy a $250,000 home with a “note” for the 10 percent deposit, and the balance financed at 8 percent (with escalating clauses) payable in five years. The first monthly payment was never made.
When he received his foreclosure notice, it was not from a company he had ever heard of. But, with good advice he asked to see the “notes” he signed. Because his mortgage was sold over and over again in a “package,” the notes were lost. He’s still enjoying his home. Why? No “note,” no loan. After a few years, he hasn’t even gotten demands for payment.
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I’ve connected the dots, I hope our government can.
Richard C. Goodwin