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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 08:49 PM
Original message
Subprime crisis draws FBI scrutiny as Fed meets
Source: REuters via Yahoo

By Kevin Drawbaugh
41 minutes ago



WASHINGTON (Reuters) - The shadow of an FBI investigation spread across the subprime mortgage crisis on Tuesday...The FBI said it is investigating 14 corporations over possible accounting fraud and insider trading violations in a crackdown on subprime lending. The companies were not named.

The agency said they include developers, lenders and financiers that securitized ordinary home loans into exotic investment instruments, as well as banks that held them.

The FBI said it is cooperating with the Securities and Exchange Commission, which has confirmed opening at least three dozen investigations related to the subprime mortgage market.

Goldman Sachs (GS.N), Morgan Stanley (MS.N) and Bear Stearns (BSC.N) -- among Wall Street's largest banks -- each said on Tuesday that government investigators are seeking information from them about their subprime activities.



Read more: http://news.yahoo.com/s/nm/20080130/bs_nm/subprime_dc_2
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Whoa_Nelly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 09:04 PM
Response to Original message
1. Why? Why? WHY???
..am I not surprised? :eyes:

Here's and interesting blig!

http://www.mortgagefraudblog.com/

One tidbit from the homepage there...

Mortgage Broker Sentenced To 3 Years For Fraud Scheme

William D. Edgar, 49, Verona, Pennsylvania, was sentenced in a Pittsburgh, Pennsylvania federal court to 37 months of incarceration and five years supervised release on his conviction of conspiracy, bank fraud, and wire fraud.

According to the court documents and information presented to the court by Assistant United States Attorney Brendan T. Conway, Edgar, who was a mortgage broker licensed by the Pennsylvania Department of Banking, operated a mortgage brokerage business known as America’s Mortgage Outlet, Monroeville, Pennsylvania. Between May 2001, and October 2003, Edgar participated with loan officers at America’s Mortgage Outlet in a scheme to defraud banks and private lenders by making false representations in more than seventy mortgage loan applications submitted on behalf of his customers.

More here:
http://www.mortgagefraudblog.com/index.php/weblog/permalink/mortgage_broker_sentenced_to_3_years_for_fraud_scheme/



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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 09:13 PM
Response to Reply #1
2. Thanks for the Interesting Link!
Edited on Tue Jan-29-08 09:14 PM by Demeter
I pick up more websites this way than you'd ever believe!
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ursi Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 09:21 PM
Response to Reply #1
3. we are going to see alot more of these, alot!
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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 10:09 PM
Response to Reply #1
4. If you want to lookup any of the properties, they are ALL on line.
Edited on Tue Jan-29-08 10:28 PM by happyslug
This is done by the tax Assessment office:
http://www2.county.allegheny.pa.us/RealEstate/Search.asp

Here is a picture of the house on Arlington Avenue mentioned in the article:
http://www2.county.allegheny.pa.us/RealEstate/Image.asp?CurrBloLot=0014G00145000000&HouseNum=1419&Street=Arlington&MuniCode=1&SingleResult=True

It is now listed at $25,000 for tax purposes (Allegheny county uses 100% assessment and re-assess each year). In 2005 it sold for $65,000

Market value page:
http://www2.county.allegheny.pa.us/RealEstate/General.asp?CurrBloLot=0014G00145000000&HouseNum=1419&Street=Arlington&MuniCode=1&SingleResult=True

Previous sales:
http://www2.county.allegheny.pa.us/RealEstate/History.asp?CurrBloLot=0014G00145000000&HouseNum=1419&Street=Arlington&MuniCode=1&SingleResult=True

It sold (I believe at forecloses) for $1,500 on 1/2/2007, which was the first day after the first monday in January. Allegheny County Sell does Sheriff's sale on the first Monday of every month, in January 2007 that was on 1/1/2007 (A holiday) so was delayed a day.

http://www2.county.allegheny.pa.us/RealEstate/History.asp?CurrBloLot=0014G00145000000&HouseNum=1419&Street=Arlington&MuniCode=1&SingleResult=True
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Whoa_Nelly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jan-29-08 11:12 PM
Response to Reply #4
5. Wow!
How does one look up that all that type of info, for say, California?
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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-30-08 12:03 AM
Response to Reply #5
6. County specific, you have to look up what your county is doing.
Edited on Wed Jan-30-08 12:16 AM by happyslug
Allegheny county had a problem for over ten years in the 1990s over assessments. In the mid 1990s for the first time since the Great Depression, Allegheny County came under Republican rule (The Chief of the previous Democratic County Board of Commissioners had made a stupid statement about not needing black votes, so the blacks revolted and refused to vote for him, leaving the GOP win for one four year term). As that GOP term was ending Allegheny County then adopted a new form of Government permitted under Pennsylvania "Home Rule" Law (Which permitted local Government to form their own form of government rather than a state derived form).

As part of the Home Rule Charter Allegheny County Dropped the previous three man County Commissioner's board and opt for a Executive with a County Council. The Council has always been Democratic, with a minority of Republicans on it. The first race for County Executive was between Cyril Wecht (Who had more than enough enemies) and Rodney as the GOP candidate. The Blacks were still mad at the Democrats so avoided voting for Wecht (Who Barely lost the election even with that opposition). Rodney was for reform of taxes, i.e abolishment of Property taxes (More to ease business property tax rates, but that was NEVER mentioned, senior citizens unable to pay their taxes on their homes were the example always cited)

Anyway the GOP won office by saying they would abolish property taxes. When that failed, they lost what support they had and the Democrats won back the office. The GOP County Commissioners imposed a "Freeze" on assessments, when that was ruled by the Courts to violate State Law, the GOP tired other ways to end Property taxation, but the problem was Property Taxes is the fairest way to asses taxes. If to high, property values DROP to compensate for the excessive rates, if to low property values goes UP to reflect the low tax rate. Thus in a County where you have over 100 different taxing bodies, the only way to do any form of fair taxation is on value of property. As I said once people accepted that the GOP was out and the Democrats were back in.

Anyway, as part of the solution to the property tax mess created by the GOP in the 1990s, County Council adopted a policy of yearly assessments. As part of that Assessment system ALL PROPERTIES IN ALLEGHENY COUNTY WERE REACCESSED IN 2002 (and reassess annually ever since). As part of that Assessment it was decided to put the accessed houses on line, since that would be the easiest method for people to get the information on they new assessments and look at comparative housing to make sure it was fair. Thus the on line system you see (came out of Carnegie Mellon University, CMU for short).

I would like to say it was the first in the Country, but others had it before, it is a nice system (NOT adopted by any other County in Pennsylvania let alone the rest of the Country). The biggest dispute at present is people who do NOT want their property on line. At present that is NOT possible and defeats the whole purpose of being on line i.e. compare your property to others of the same type AND your neighbors. People don't want this information on line BUT IT WAS ALWAYS A PUBLIC RECORD. A few years ago the local Federal Judges asked that their properties be taken off, and the County did do that, but all that did was increase the calls by others that they want they name off line for "they own protection" (Remember ALL of this is Public Record, so if someone wants to find out the name of where someone lives, all he or she had to do is go to the local Courthouse and find that information, in the over 200 years it has been public record I have NEVER heard or read of a case where the Public Record was used to commit a violate Criminal act against someone and the same is true of the on line system since 2002).

For more on Wecht and his problems (Which still continue he is under Federal indictment)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3159246
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Whoa_Nelly Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-30-08 12:24 AM
Response to Reply #6
7. Thanks for for taking the time to answer
I know it can be difficult in the digging for info. I will keep in mind what you've shared.

Thanks! :hi:
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