Old habits are hard to break, and in the United States of America, there are few “habits� as common as mortgage-fraud. In 2006, the world discovered that the U.S. housing market was the most-fraudulent market in history. However, since that time, even that level of fraud has been surpassed – by the U.S. housing market of 2010.
Incredibly, four years after learning that the U.S. housing market was the global fraud-capital, U.S. mortgage-fraud has continued to increase every year. There is simply too much material here to cover even a small portion. For inquisitive readers, I recommend doing a simple Google-search for “U.S. mortgage-fraud increasing�.
In addition to coming up with an endless list of articles covering the last four years, one of the first “results� which readers will encounter is a Reuters article from June. That article reported a large haul of fraudsters: 1,215 people were charged in numerous frauds, totaling $2.3 billion in losses for victims. Thanks to the “magic� of search-engines, readers will also encounter a further list (on the left side of the page) of the recent Reuters articles on “U.S. mortgage-fraud increasing�.
One of the more hilarious/disturbing search-results was a Reuters article from April 2009, where the U.S. Justice Department “urged Congress� to force U.S. banks to keep records of their mortgages. The Justice Department stated unequivocally that such record-keeping would make it much easier to crack-down on fraud.
Naturally, nothing has been done on that front – since the U.S. government likes mortgage-fraud. Here's why. A Reuters article released today on U.S. mortgage-fraud reported the case of a run-down Chicago home, which sold for $25,000 in a foreclosure auction, and then was quickly “flipped� in a fraudulent transaction for $355,000.
Pull out your calculator, and you'll discover that this phony transaction resulted in a (fraudulent) price-rise of more than 1,300%. Put another way, if there were 100 non-fraudulent transactions, each of which reported a 5% decline in prices, and we add in the one fraudulent “sale�, suddenly those 101 sales show a “rising� U.S. housing market, once averaged-out (instead of the falling market which exists in the real world).
Of course, with U.S. mortgage-fraud steadily increasing (even though total sales in this market have plummeted to a tiny fraction of their bubble-peak), obviously the rate of fraud is much higher than merely 1% of transactions. This is especially true given that the vast majority of offenders are “insiders�: “mortgage brokers, appraisers, real estate agents or loan officers�. In other words, the supposed “rising prices� which the Obama regime and media-parrots cited to conclude that the U.S. housing market had “stabilized�, were in fact nothing more than a fraud-induced mirage.
Equally disturbing, even in the FBI “crackdown� on mortgage-fraud, of the $2.3 billion in victim-losses, only a paltry $147 million was recovered – less than 10%. This is of tremendous significance to U.S. taxpayers, since their government has made them “guarantors� of all U.S. mortgage-debt – including this endless stream of fraudulent transactions.
Even the “detected� fraud is leading to losses of 90+% for taxpayers. Meanwhile, the much larger mountain of undetected fraud naturally means losses of virtually 100%. For readers who dispute the premise that mortgage-fraud is a “way of life� in the United States, I will simply refer them to a superb, PBS expose on the U.S.'s fraudulent markets.
“The Warning� is a PBS documentary which goes back to the roots of current, U.S. mortgage-fraud, during the years of the Clinton regime. Of principal note was the position of U.S. Federal Reserve Chairman, Alan Greenspan – who was adamant that “market fraud� should not even be illegal in the U.S. Greenspan's position was that the market should be left alone to “resolve� this fraud “in its own way� (i.e. through the fraudsters taking every last dime of the “sheep�).
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