Whistleblower: Wall Street has engaged in widespread manipulation of mortgage funds

Published 2 hours ago on May 16, 2020
By Pro Publica

Among the toxic contributors to the financial crisis of 2008, few caused as much havoc as mortgages with dodgy numbers and inflated values. Huge quantities of them were assembled into securities that crashed and burned, damaging homeowners and investors alike. Afterward, reforms were promised. Never again, regulators vowed, would real estate financiers be able to fudge numbers and threaten the entire economy.

Twelve years later, there’s evidence something similar is happening again.

Some of the world’s biggest banks — including Wells Fargo and Deutsche Bank — as well as other lenders have engaged in a systematic fraud that allowed them to award borrowers bigger loans than were supported by their true financials, according to a previously unreported whistleblower complaint submitted to the Securities and Exchange Commission last year.

Whereas the fraud during the last crisis was in residential mortgages, the complaint claims this time it’s happening in commercial properties like office buildings, apartment complexes and retail centers. The complaint focuses on the loans that are gathered into pools whose worth can exceed $1 billion and turned into bonds sold to investors, known as CMBS (for commercial mortgage-backed securities).

https://www.rawstory.com/2020/05/whistleblower-wall-street-has-engaged-in-widespread-manipulation-of-mortgage-funds/

While most "average " Americans are waiting to see what happens with the next tranche of the House passed bill to help
home owners, renters, and students with debts, hospitals, and such in the economic crises and pandemic, the GOPeeeee, and others that oppose the bill measure are whining that the "average person" doesn't deserve break.

I just wonder what they think of the same corrupt players, Deutsche Bank, Wells Fargo and this Ladder Capital and others that are mentioned in this great reporting, that the "average person" playing by rules, with there individual debt, having firms that were given money in this last two stimulus bills, have been fudging the numbers in the commercial property market over the years just so that they can get taxpayer money, and so that the big ponzi scheme called wall street can inflate the stock which the same big banks that were bailed out in the last fiasco are not held accountable or them, they saw the numbers, that had too and if they say otherwise they are lying............what is wrong with this picture...........I do see the asshole in the white house doing this..............I do......and he has been doing it for years, and I mean years, why do you think he keeps whining about Mar A Lago and his other bed bug properties ..............