The red light nightmare began with the ones who said, “But my credit’s a little questionable.” To this statement, the realtor replied, “”Now is the time to buy!” The buyer said,“Can I really afford this though?” To which the realtor replied, “I have this friend, actually we’re talking about a husband wife team. He’s a loan officer, she’s an underwriter. They may be able to work with you.” The buyer said, “Great, can I get a number?”
For those who bought a $200,000 home that is now worth $110,000, how do they get even? They walk, who wants to pay that much for something with so little value. What is the excuse of those who purchased a $10M home, which is now worth $6M filing for bankruptcy? “The economy is bad for everyone, and arena football doesn’t pay like the pros’.” Was it pissed away, or did the lender drink it dry? It’s hard to say when the light turned green for everyone, all at once.
The targets are stuck with the bill, unless the insurance picks it up. At the lenders discretion, folks who could have never qualified for an FHA loan opened the door to their new home. “Fire at will”, much like the online game, the predators can reload with the touch of a key. Those in control were armed and dangerous, as they played a part in taking down an international economy. It’s hard to rob a stagecoach, when that stagecoach’s driver is the lead bandit.
Was the money they made away with legal tender? Wells Fargo is sticking with the answer “yes,” as they deny the accusations that they acted irresponsibly. They have provided the affordable FHA loan to more new homeowners than any other lender. More than a hundred thousand of which were said to meet the guidelines when in fact they did not, is the grounds for the “US vs. Wells Fargo” case.
Taking more than their share is to be determined. Some went belly up with the crash, while other financial giants, such as Wells Fargo, continued on in spite of the foreclosures. Some big banks have already settled in the mortgage fraud cases brought against them. Citibank settled for $158M. After cleaning out the pockets of folks worldwide, they drained the funds from the mortgage backers (government). “What do you mean it was fraud?”
It’s too late for Fannie and Freddie, as they have their own lawsuits to cover for tax evasion and misleading information on their mortgage pools. However, the FHA is determined for their books to return to black. They have been awarded 1 billion from Bank of America/Countrywide, and a few hundred million each from other large lenders. Their most recent lawsuit was brought against Wells Fargo, according to news sources on Oct. 9, 2012. We must wait and see how much they settle for. The stagecoach will remain a fixture of the Wild West. In the meantime, we have become more worrisome of the ride they're taking us for, than of being scalped by a third party.