Top mortgage banksters propped up appraisals — the biggest scam in American history . . . are they getting away with it?
In our last mortgage banking article, you learned about the savings and loan crisis of the 1990s that led to the conviction and incarceration of well over a thousand CEOs and CFOs of major S&Ls throughout the U.S. But this same scenario has been repeated during the last decade as major mortgage banksters have manipulated the stock market with mortgage-backed securities and other instruments in ways that have allowed corporate officers to avoid criminal prosecutions. How could this happen?
Their plan included achieving the repeal of substantially all of the consumer protections of the Banking Act of 1933, by bribing politicians in Washington D.C. to pass the Gramm-Leach-Bliley Act, and infiltrating the federal government by placing former banking executives into strategic regulatory positions in the SEC and other key regulatory offices to create a mortgage lending and securitization environment where the federal banks are substantially self-regulating, and accountable to no one.
In order to “grow like crazy”, these mortgage banking institutions needed to make large numbers of loans, and in relatively high dollar amounts. They conducted massive marketing campaigns offering easy credit to consumers, together with instigating the inflation of property appraisals in order to create the illusion of steadily raising property values and the false belief that real estate had become a safe investment offering a decent rate of return, resulting in a rush by consumers to divert their savings into purchasing property. The bankers then bundled their inflated mortgage loans by the thousands to obtain bogus AAA-rated mortgage bonds, which they sold to institutional investors in exchange for a handsome profit.
Beginning in 1998, federal banking institutions began causing the inflation of real property appraisals on a nationwide scale by using these banks’ own appraisal management companies to inflate appraisals, together with maintaining a policy of black-listing any independent appraiser that did not “meet the numbers” on the loan documents. This unethical and illegal policy effectively put independent appraisers out of work if they did not cooperate with the lending underwriters.
These bank’s own appraisal management companies instigated 20% per year inflation of property appraisals nationwide for five years in a row between the years 2001 through 2006, to achieve nearly two hundred percent average inflation of real property appraisals. The overall appraisal inflation took eight or nine years to reach its peak in 2006, and will not fully subside back to the true property values found in the beginning of 1998, until about 2014 or 2015.
Does this story disgust you? It should. Banking executives (supposedly) are getting away with major white-collar crimes apparently scot-free.
What if you could do something about it? Would you believe it? Well, you can; join the Revolution! Get your free membership at toolsforjustice.com and become part of our army of legal activists working together to restore the American Dream!
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