The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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From: ChanceIs	11/15/2008 3:40:58 PM
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Sex, Lies, and Subprime Mortgages The sexual favors, whistleblower intimidation, and routine fraud behind the fiasco that has triggered the global financial crisis By Mara Der Hovanesian and..... But as the housing bubble inflated, wholesalers—though hidden from public view—became high-earning superstars. Lane, a manicurist before joining now-defunct subprime lender New Century Mortgage in 1997, says she brought home $1 million in 2002 and $1.2 million in 2003. Eventually the deal-making turned frenetic. Multiple wholesalers began inundating mortgage brokers with offers for the same applications. Some brokers chose to exercise their power by asking for something extra in exchange for their business: sex. Dozens of former brokers and wholesalers say the trading of sexual favors was so common that it came to be expected. Lane recalls one visit to a mortgage brokerage near San Jose (Calif.) in which the manager lewdly propositioned her in his office. She says she declined the advance, and he didn't sell her any applications. But other female wholesalers didn't have the same qualms about crossing the line. "Women who had sex for loans were known very quickly," says Lane, who left New Century before it failed in 2007 and now works as a $200-an-hour life coach and motivational speaker in New York. "I didn't want to be a mortgage slut." businessweek.com ____________________________________________________ Edit: Regulations were the problem??? Excuse me. Do you need a freaking regulator in Washington to tell you not to trade sex for rotten loan applications. I can't say what part of the criminal code applies here, but I am sure that there are at least 20 ways to throw both sides of the transaction in jail for at least five years. Face it boys and girls, the whole financial crisis is due to poor morals. Hate to sound simplistic and preachy, but there it is. People knew they were engaging in risky behavior and the greater fool theory.

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