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Broker gets prison term as judge wishes for bigger fish to spear

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Mortgage Professional America | 04 Sep 2013, 06:09 AM Agree 0
An Oregon judge has lamented that "bigger fish" have yet to be brought to justice for the housing meltdown, while sentencing a mortgage broker to nearly five years in prison
  • CharlieG | | 04 Sep 2013, 09:09 AM Agree 0
    What amazes me is that, with all the safeguards in place, this continues.
  • Bruce A | | 04 Sep 2013, 09:15 AM Agree 0
    Although Mr. Wilkinson got what he probably deserved, what about the Banks that made all this mess possible with mortgage policies that were born to fail and Wall Street greed which was a huge enabler. That is where the problem lies. The Judge is absolutely right.
  • Fish in the ocean | | 04 Sep 2013, 09:24 AM Agree 0
    If the Judge wants bigger fish she's fishing in the wrong pond (Brokers). She should investigate who had control over interest rates to find the real 'master manipulators' and the root cause of the boom and bust. The correlation is not a coincidence.
  • Mike Kman | | 04 Sep 2013, 09:55 AM Agree 0
    Why have the big banks and wall street non depository banks not seen executives sentenced for jumping into the mortgage market and offering such mortgages that would for sure default?
    They are the greedy ones that caused the meltdown, not the brokers. Yes, there were also some unscrupulous originators but most are gone by now. I say go after the BIG FISH.
  • Rob S | | 04 Sep 2013, 10:00 AM Agree 0
    Hey Judge: Why don't you start at the top- The top politician at the Senate Banking Committee.
  • estaban montoya | | 04 Sep 2013, 10:11 AM Agree 0
    There are lots of big fish out there. The prolem is the cases would be againt the banks that trained these brokers and encouraged the these deals coupled with the unbeievably low quality of investigators,prosecutors and judges. If they could not blackmail these brokers using laws designed for Mafia kingpins they would never get a conviction. The system destroy's 5 more families.
  • Andrea | | 04 Sep 2013, 10:34 AM Agree 0
    here we go again, make an example out of the "small" fish! I am sure the Broker got what he deserved, but the "bigger" fish got away with it and will never be held accountable, that's a shame.
  • Wm Matz | | 04 Sep 2013, 11:19 AM Agree 0
    The problem is vastly greater than the judge's limited statement would indicate. I just read a NY MBS case in which 274 mortgages had their transfer history examined. Out of the 274 the court found that NONE [!] had been legally transferred to the MBS trust that purportedly owned the trust. We believe that would hold true for virtually the estimated 60 million securitized mortgages. The significance is that any foreclosures in the names of such trusts would be void under a recent CA appellate case and similar cases in other states, such as NY, MA. And the trustee involved was Chase.
  • gheinecke | | 04 Sep 2013, 11:49 AM Agree 0
    Fraud is Fraud. Doesn't matter large or small.
  • Griff | | 04 Sep 2013, 01:27 PM Agree 0
    It is rather depressing that those responsible for the meltdown are not held responsible. Was this guy bad, yes he was! As the years go by it is obvious the real criminals are not being brought to justice and instead home buyers and borrowers are being forced to pay the price with higher costs and fewer choices. It is not necessary to limit choices, it is necessary to have quality underwriting.
  • Maxi Mac | | 04 Sep 2013, 03:20 PM Agree 0
    At last this guy got what he deserved. He dolled out mortgages to all these young builders in Bend by putting his own funds in their accounts so that they could qualify then promptly removed the funds after they got the mortgage. Two of these builders got mortgages for 18 west side Bend properties and lost every single one of them. It did a lot of damage to the Bend market, yes one guy can do a lot of harm no matter how "small" he is. I think the borrowers have some answering to do as well.
  • Todd | | 05 Sep 2013, 08:15 AM Agree 0
    Fraud is Fraud! and is independent of the melt down. Go after them and weed them out... they make us all look bad! But get real and quit blaming the broker and LO for the melt-down! go after the big banks that really created this and clean that house! and promote good underwriting! but quit blaming the melt down of the ENTIRE mortgage industry on the Broker-LO's they are but a pebble of sand on a beach! Wag the dog!
  • Joe O | | 07 Sep 2013, 09:45 AM Agree 0
    Why is it the guys who made the least, have the least, did the least are the ones going to jail why the ones who profited the most sit back and spend there money without any consequences is it because they have all the money and influence
  • WLHarris | | 09 Sep 2013, 11:37 AM Agree 0
    It is frustrating to hear brokers continue to "push" the blame uphill. Integrity and honesty are personal responsibilities. It is like a thief blaming the merchant for not taking better measures to keep the thief out. Brokers and Loan Officers "chose" to hide, fake, create, or alter documentation just so they could get a mortgage done. Like gheinecke said..."fraud is fraud". Have a little personal accountability and quit using the excuse that someone else should have prevented you from doing it.
  • Tom Elder | | 09 Sep 2013, 01:02 PM Agree 0
    CharlieG, I think you will find that a lot of these mortgages were likely originated prior to the new safeguards and rules and are just now being prosecuted. These types of mortgages would typically trhow flags today. That is not to say it would be entirely impossible today.
    This is not a meltdown issue, this is a greedy criminal issue and rightfully prosecuted. Bad is Bad. Thanks
  • Blue Eyes | | 11 Sep 2013, 07:19 AM Agree 0
    Sadly, the enforcement agencies have looked the other way for years prior to the melt down.
    There have always been laws and consequences for breaking them but the
    GSE's looked the other way to compliment a political agenda.
  • WLHarris | | 11 Sep 2013, 11:19 AM Agree 0
    There is a lot of blame to go around... starting as high as the Credit Ratings agencies. Marketing staff for lenders aided and abetted to help their bottom line. Put simply, anyone who was complicit in the fraud should be prosecuted. The fact that it was so common place seemed to make many feel that it was then acceptable... which is not the case. This is like cheating on your taxes. As long as you get by with it, you don't think you are a crook.
  • Bill S. | | 13 Sep 2013, 04:18 PM Agree 0
    There was no more fraud in 2004-2008 than there was from 1938-2003. In fact, it was LESS, due to automated underwriting and better controls. Even if 10% of the mortgages were fraudulent, most end up performing. The guidelines were just too loose. MORTGAGE BROKERS DID NOT CAUSE THE FINANCIAL CRISIS PEOPLE! It DID start at the top; the Federal Reserve, the Ratings Agencies, the FDIC, and the SEC who allowed the Investment Banks, led by good ole' Hank Paulson, to increase leverage from 11:1 to 40:1 in 2004, were all culpable. They're also the ones claiming "mortgage broker fraud" caused the crisis to deflect the public's attention on the truth.
  • John | | 17 Sep 2013, 10:44 AM Agree 0
    Unfortunately, nobody can legislate ethics, integrity, much less morality. If you do not have strong character, the large amounts of money in our industry will make people lose sight of the above. The weak will will always be looking for a 'shortcut', whether it be lenders, brokers, or BORROWERS. Therefore, crooks looking for a shortcut, will always be with us. Unfortunately.
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