Divide by Nought

Archive for April 2010

According to the FBI, 80% of mortgage fraud is committed by the lender.

leave a comment »

This is an excerpt from Zach Carter’s “Live Blogging the Washington Mutual Hearing“:

Levin: out of 132 loans reviewed in a WaMu audit, 115 involved confirmed fraud, and 80 had “unreasonable” income– meaning the borrower’s income listed on the loan documents was so totally outrageous than any reasonable person would have called it into question.

WaMu’s lending standards and practices didn’t change as a result of this audit. At all.

According to the FBI, 80% of mortgage fraud is committed by the lender. We’re not talking about stupid loan officers allowing borrowers to get away with something crazy that is bad for the bank. We’re talking about clever loan officers pushing fraudulent documents in order to score bigger paychecks, and bank executives looking the other way so that they can keep getting big paychecks from the securitization machine.

This isn’t a problem unique to WaMu. This is how the U.S. mortgage system operated for half a decade.

Written by me

Wednesday, April 14, 2010 at 1:51 pm

Posted in Uncategorized

Ah, unapportioned-tax how I love thee.

leave a comment »

The following excerpt is from “The joy of tax” in the April 10-16th 2010 issue of The Economist:

“The federal tax code, which was 400 pages long in 1913, has swollen to about 70,000. Americans now spend 7.6 billion hours a year grappling with an incomprehensible tangle of deductions, loopholes and arcane reporting requirements. That is the equivalent to 3.8 [million] skilled workers toiling full-time, year-round, just to handle the paperwork. By this measure, the tax-compliance industry is six times larger than car making.”

Written by me

Saturday, April 10, 2010 at 11:10 am

Posted in Learning, Musings, Uncategorized

Tagged with ,