Vancouver Condo Info

FBI investigating sub-prime fraud

Looks like the FBI is checking up on the whole sub-prime debacle:

America’s Federal Bureau of Investigation is investigating senior banking executives for insider dealing and fraud as part of a criminal inquiry into the sub-prime crisis, the agent leading the inquiry said yesterday.

Neil Power, the head of the FBI’s economic crimes unit, is heading the most far-reaching criminal investigation into the practices of the mortgage industry since it began to melt down last year, after years of increasingly lax lending finally fed through into an increase in defaults on home loans.

The FBI is investigating every level of the conspiracy that it believes perpetuated the housing boom and ultimately resulted in millions of Americans losing their houses, investment banks losing billions of dollars and the chief executives of Citigroup, Merrill Lynch, Bear Stearns and UBS resigning.

Some pretty strong language there: ‘economic crimes’, ‘conspiracy’, etc.  How much responsibility do lenders have for the housing bubble and crash in the US?  How much more conservative are lenders in BC?

Hat-tip to scullboy for the link.

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15 Responses to “FBI investigating sub-prime fraud”

1. 1
   paulb Says:
   February 4th, 2008 at 4:27 pm
   Fraser Valley

   There were 956 MLS® sales processed in January, a decrease of 4 per cent compared to the 1,001 sales processed the same month in 2007. However, there was an 18 per cent increase in new listings in January 2008 compared to the number received in January last year – 2,850 news listings compared to 2,425. January’s total active inventory at 7,554 listings finished 24 per cent higher than the 6,099 active listings during January 2007.

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2. 2
   mohican Says:
   February 4th, 2008 at 4:57 pm
   I posted a full analysis of the Fraser Valley numbers over at my place http://langley-financial-planning.blogspot.com/

   The numbers are the most bearish yet.

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3. 3
   Anonymous Says:
   February 4th, 2008 at 6:15 pm
   Fraser Valley January Stats

   http://tinyurl.com/2dddgz

   Prices down from December

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4. 4
   Anonymous Says:
   February 4th, 2008 at 6:17 pm
   Prices still up yoy though.

   Must be a shock for some that prices could fall in January?

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5. 5
   Strataman Says:
   February 4th, 2008 at 7:34 pm
   “The FBI is investigating every level of the conspiracy ” I have to admit I have a fair amount of skepticism when it comes to this. My feeling is that in a lot of cases the FBI (or the RCMP) like to find a mid to upper level fall guy (Enron?) so the heat is off the REALLY top dogs. I think with no proof (other then knowing the nature of people) that the people that profit the most thru fraudulent white collar dealings, are rarely actually caught up. Your opinions?

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6. 6
   ex-vancouverite Says:
   February 4th, 2008 at 7:49 pm
   The FBI is investigating every level of the conspiracy that it believes perpetuated the housing boom…

   I’m sorry, but, that’s just flat-ass funny.

   But people will actually take it seriously, and that isn’t funny.

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7. 7
   Bizznitch Says:
   February 4th, 2008 at 8:16 pm
   I’ll be posting some numbers from Northern BC in a few days on my northernaffairs.blogspot.com blog. Interesting to see what the market is doing up there. How do you get the average prices without going through every darn listing?

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8. 8
   Clarke Says:
   February 4th, 2008 at 8:20 pm
   If it was a conspiracy, it was a really big conspiracy, and it would be really hard to prove there was that much collusion between all the players in the industry. I think many targets of this investigation could reasonably rely on a defense of poor judgement vs. criminal intent. While there was likely no shortage of unethical behaviour, this mess was more a case of regulatory failure.

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9. 9
   paulb Says:
   February 4th, 2008 at 8:57 pm
   Looks like another month of rising prices in Greater Van…Although very small.

   Breif analysis here:
   http://paul-northvancouverhomes.blogspot.com/

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10. 10
    ex-vancouverite Says:
    February 4th, 2008 at 9:35 pm
    If it was a conspiracy, it was a really big conspiracy…

    Oh, for the love of Pete, it’s not a conspiracy. It’s simply an agenda. A handful of oligarchs got together and formulated a plan that works really well for them. Everything else falls into place. Everybody follows the agenda for self-preservation and, to greater and lesser degrees, self-advancement.

    A ‘conspiracy’ suggests a covert, secret scheme. There’s nothing secret going on; especially when these egregious financial manipulations are being done right in front of your face, everyday.

    Not much of a conspiracy.

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11. 11
    Anonymous Says:
    February 4th, 2008 at 11:11 pm
    Hat tip to Sofia,

    FBI investigating sub-prime fraud ahan fbi is hunting for fbi may be not clear ok lets go this way…
    Federal Bureau of Investigation(FBI) is hunting for Fuc#ing Big Idiots(FBI)seem like sounds correct?checking all over USA may be not clear ok checking under skirts area (USA).

    well while the area is under investigation I won’t comment farther otherwise they are going to yell at me by calling me FBI.

    what ever the decision will be, every one must take care of type of problems. we have similar type of provision over mortgage default but on just around 1% expensive than the regular rate or preety much similar to the ongoing rate.

    1.First of all if buyer do not pay 20% down payment your interest rate to your mortgage will be high ratio little bit differant than the regular.

    2.when buyers do not pay their monthly payment on time there is little bit of panelty lets say $50 over $1500 monthly payments
    3.Some people do not pay their assessments to the strata management. in that case strata management can freez your account through court order you must pay them the owing balance to bring your account back in action.most of time they are likely to recover fee for their lawyers plus you have to pay to your own lawyer too.
    4.your other debt like mc,visa or other loan trap you in some circumastances then your mortgage company must tie your neck to pay the remaining balance.

    5.from the reason #3 to save your property you must get other mortgage company to back you up otherwise your unit will be on sale by bank. they will get their money back if their is more than balance they will pay those mc,visa companies if there is still balance you got it.

    6.in the reason #4 This alternate mortgage is little expensive than the regular or high ratio but still better than subprime mess.Better be careful and keep your eyes on your balance and update you payment always.

    One of the best Idea to keep it safe is if your are having hard time and environment is not really good in your family life,if their are lots of changes in your circumastances do not wait for any letters.

    1.Talk to your bank.2.talk to your debt companies.3.talk to strata,city or where ever you are involved in financial crisis free advice will be given because they are all expert with financial back up they are helpful if you are before time.

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12. 12
    krrish1 Says:
    February 4th, 2008 at 11:13 pm
    that was me above but yeah login option has been fixed so I am here to say Sofia.

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13. 13
    anonymaker Says:
    February 5th, 2008 at 12:28 am
    krrrish - You seem to be very well versed in the processes. Have you been checking above your belt in the navel area (or naval, as the case might be) for possible options in your dilemna for registering your fire sale with a fire arm that you have mistakenly adjoined through the universe with you Fine Big Ideas under the FBI long skirrrt and thigh length leather boots in your banking hours?

    I only wondered because maybe when you logged in you got the log in your eye and you can see no way toward what you promised to be your own. I that case I cannot help you anymore because you only listened to your deaf ear telling you that wisdom will come before it is too late to pay your renting at the banking table. And that means that you cannot be paing your mortgidge insurment either because it will be above your head in the water with the mort gage payment only one part of what you know.

    And did you know that mort gage has the french and latin and italeen and spanash words for dead in it because only way to escape is after 40 years when you dead from working and worry to hard and you selfish son laughs and sais thanks poppa.

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14. 14
    Anonymous Says:
    February 5th, 2008 at 7:45 am
    The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, “dead,” and gage, “pledge.” It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt. If the mortgagor does not, then the land pledged to the mortgagee as security for the debt “is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the [mortgagee].” This etymology, as understood by 17th-century attorneys, of the Old French term morgage, which we adopted, may well be correct. The term has been in English much longer than the 17th century, being first recorded in Middle English with the form morgage and the figurative sense “pledge” in a work written before 1393.

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15. 15
    Anonymous Says:
    February 5th, 2008 at 8:10 am
    D.H.,

    There are two way to act in the financial market either you lend the bank money or you borrow the money.
    when the bank lend you money you invest in your style.
    when you lend them they invest in their style.

    BTW.What’s wrong with you?where do you deposit your salary?and why?.

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