Consumer Side of the Sub-Prime Mortgage Industry

Eunjoe, Cleve, Anush and I will be presenting this afternoon on the consumer side of the sub-prime mortgage industry.  We will be discussing the various types of sub-prime loans, what laws govern lending practices, and possible fraud in the appraisal and lending market.  

Here is the link to our presentation. 

Here are some links with useful background information:

http://www.ft.com/cms/s/0/1ed1d3e2-f4f3-11dd-9e2e-0000779fd2ac.html?nclick_check=1

http://www.appraisalfoundation.org/s_appraisal/index.asp

USPAP 2008 - 2009 EDITION:

 http://commerce.appraisalfoundation.org/html/USPAP2008/index.htm

http://www.ofheo.gov/media/news%20releases/HVCCFinalCODE122308.pdf

https://www.namb.org/images/namb/GovernmentAffairs/NAMB_Lawsuit_HVCC%20(Feb%2023,%202009).pdf

http://www.businessweek.com/magazine/content/09_07/b4119042628146.htm

http://www.msnbc.msn.com/id/19750780/

http://money.cnn.com/2005/05/23/real_estate/financing/appraisalfraud/index.htm

http://articles.latimes.com/2008/mar/04/business/fi-appraise4

http://latimesblogs.latimes.com/laland/2008/03/cuomo-sees-ramp.html

http://www.searchlightcrusade.net/2007/04/appraisal-fraud-1.html

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/home_valuation_code_of_conduct/

Illinois Real Estate Appaiser Licensing Act of 2002: http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=1368&ChapAct=225%26nbsp%3BILCS%26nbsp%3B458%2F&ChapterID=24&ChapterName=PROFESSIONS+AND+OCCUPATIONS&ActName=Real+Estate+Appraiser+Licensing+Act+of+2002.

CA regs guidelines: www.orea.ca.gov/html/fed_regs.shtml

http://www.bis.org/publ/work259.pdf?noframes=1

http://www.fdic.gov/regulations/laws/rules/6500-2515.html
http://www.bis.org/publ/wgpapers/cgfs26lehnert.pdf
http://www.fdic.gov/news/news/financial/2007/fil07006a.html
http://www.access.gpo.gov/nara/cfr/waisidx_04/12cfr226_04.html
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea19.shtm
http://www.economist.com/finance/displaystory.cfm?story_id=13062194
http://www.newyorkfed.org/mortgagemaps/
Mortgage Fraud - Sources:

2007 Mortgage Fraud Report (FBI): http://www.fbi.gov/publications/fraud/mortgage_fraud07.htm

Warrant issued for Christopher J. Warren: http://www.examiner.com/x-2965-LA-Fraud-Examiner~y2009m2d10-Arrest-warrant-issued-for-man-who-bragged-of-mortgage-fraud

Arrest warrant for Christopher J. Warren: http://ml-implode.com/info/Arrest-Warrant.pdf

Warren made $275,000 on fraud in a single day: http://www.news10.net/news/story.aspx?storyid=54484&catid=2
Google Cache of Warren's confession (also available in the appendix to
his arrest warrant): http://74.125.95.132/search?q=cache:Szjk5BFVh1gJ:www.triduanum.com/memo.pdf+memo.pdf+site:www.triduanum.com&hl=en&ct=clnk&cd=1&gl=usAmeriquest Lending Practices, via L.A. Times: http://articles.latimes.com/2005/feb/04/business/fi-ameriquest4
Warren Apprehended After Fleeing the Country: http://www.huffingtonpost.com/2009/02/12/christopher-warren-fraud-_n_166340.html
Ameriquest Lending Practices: "Workers Say Lender Ran 'Boiler Rooms'",
via L.A. Times: http://articles.latimes.com/2005/feb/04/business/fi-ameriquest4
Ameriquest settles with states for $325 million: http://www.oag.state.tx.us/oagnews/release.php?id=2093

The Ameriquest settlement:  http://www.oag.state.tx.us/newspubs/releases/2006/012306ameriquest.pdf

Comments

[Darius Horton]

This is a link to our power point presentation:

http://picker.uchicago.edu/bailouts/ConsumerMortgages.ppt