Mortgage Frauds And Originators

Mortgage originators outwitted borrowers about the terms of the loans and sold them to borrowers who were unable to pay due to give the amount of wealth they accumulated. Banks bundled up the mortgages into Mortgage backed securities without further assurance of what they are doing is right or not. Issuers of mortgage backed securities made false claims about their assets and created frauds when selling them to clients and others. Profits were made so why stop? The amount of wealth given to the financial institutions persuaded their originators to keep up the good work. Fees were crucial in the mortgage business, it’s the way banks and others made their money. Over a course of 10 years, Firms tripled the amount of revenue given by the mortgage back securities. …show more content…
The firms created these horrible mortgages and began selling them and sellers like banks, formed bundles and sold them off without informing their customers of the risks they are taking. Firms and originators resulted in making the market of mortgage industry unsafe for customers to purchase. Banks and firms worked closely together to situate a price in the market for the mortgage back securities. Plentiful actors play crucial roles in the mortgage securitization market, but the key players who create and sell these securities originators, issuers, and