Jay Jay

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    • Sat Apr 14th 11:04 AM
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      Subprime Revelation: Early Payment Default-ers Just Don't Care
      You've hit the nail on the head here. Its the perfect "free money" fraud. At first I was thinking, who would sell there credit for $90k, maybe a bum or someone terminal, but then I realized, if you do this scam on half a dozen places at once, you'd have enough money to live until your credit cleared itself. If anyone asks, you just say you were an agressive investor and the market didn't go the way you were hoping, and you lost your investments.

      The losers in this scam are first the holders of the MBS that contain these bad loans, and secondly, too a greater degree, the multitude of later legitimate buyers that then over pay based on a comps loaded with an exta $100k cash back.

      For flippers they look at the intro payment as a monthly option fee to retail right to sell at a later date, but to fraudsters it was just an up front cash payment. No intention to ever pay.

      The RE "professionals&qu... complicit in these deals probably figure the worst that will happen is that they'll be barred from practicing for a period of time, a slow period that they don't want to be part of anyway. These types need hard time. The formula I suggset is to take the amount of money misappropriated, divided by the avergage yearly pay of the people it was stolen from, and thats the sentence.
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