Easy to say BS.
Impossible for you to even articulate some other conjecture.
I see it every day in loans by the thousands. Loans we buy and resell servicing, and loans we make and sell outright.
I oversee LDA policy. POLICY. That is our internal standards by which we conform to the lending laws, and still try and make a profit.
Those laws are the problem. And yes, when the law changes the credit worthiness of a borrower based upon outside demographic and geographic criteria, that is forcing us to make bad loans. Loans we would not have made 10, 20, 30 years ago. Loans we would not willingly choose to make today. If we were able to set our own independent standards.
So your “bs” post is based on what? Wishful thinking?
You need to post an alternate description of the events if you wish to be taken seriously.
Otherwise, my reply to your Bravo Sierrra is Delta Uniform Bravo Mike Alpha Sierra Sierra.
I believe you articulated the point in your original post. Summary: Banks are required to make bad loans - and they package them with good loans to make them more palatable to investors. However, some (most?) banks sold more bad loans than were required to get the high closing fees and packaged them to unwitting investors who took the loss.
Explain what element of fraud is missing from that description.
I don't care if you're the bank president. If you're knowingly making what you describe as bad loans and knowingly reselling them to investors without their knowledge then you are committing fraud. FRAUD. That isn't conjecture, that is the law.
Those laws are the problem. And yes, when the law changes the credit worthiness of a borrower based upon outside demographic and geographic criteria, that is forcing us to make bad loans.
What laws? There are no laws that do that. You can't name the statute(s) that 'forces' your big five client to make bad loans,(much less hide them in a bundle of good loans for resale), and you know it.
You need to post an alternate description of the events if you wish to be taken seriously.
No, I stand by my remarks and so does the Office of Thrift Supervision . If anyone needs to provide an 'alternate description' of events here it is you.