“In regards to The 2016 Economist article on the state of U.S. mortgage market it is spot on, except for one issue, mortgage defects/”fraud”. The headline figure for the government in its settlements has been 25% to 45% serious mortgage defects/”fraud” during the crisis…

…Well FHA has roughly those same serious mortgage defect rates on current loans 2014-2016 on their website…yet, that is an initial figure…when the adversarial process (of contract dispute) occurs between lender and FHA…FHA shows this “serious mortgage deficiency rate” goes down by 85% to 90% or so…to 2% to 5% defects!!!! These numbers are right on FHA’s website. The issue is the Obama Administration’s Justice Department deliberately suspended this adversarial process for crisis era mortgage loans, so they could tout the false headline number in their settlements. And all these banks, the officers like me where gone, so the new officers had no incentive to go in and perform the adversarial process when the government was determined to coerce settlements. That’s part of the false, liberal narrative of the financial crisis.”, Mike Perry, former Chairman and CEO, IndyMac Bank, responding to a friend who sent me The Economist article, “Housing in America”, August 19, 2016

Housing in America

Posted on November 30, 2016, in Postings. Bookmark the permalink. Leave a comment.

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