Would Real Estate and Mortgage Fraud make employnment worse?

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I just read incredible article in local Florida newspaper of a police roundup of dozens of real estate, mortgage, appraisars, accountants, attorneys, etc. in two different cases. And many more of these arrests for different companies and individuals is expected.

So I wonder, been the market the way it is now, with wall street being thankfully helped by the U.S. Government, due to the real estate mess, how about the thousands of people who are left jobless once their bosses go to jail, or while the trials go on. People only tend to think of the homes not being sold, which is pretty bad in itself. But there are apparently thousands of people around the country who made those loans illegally to start with. And now the poor employees for those companies will have no job.

3 Comments
  1. Reply
    mortgagelns
    April 30, 2011 at 11:26 pm

    I never thought about it that way, but you are right. Many innoncent people could lose their jobs due to working for dishonest employers. Look at what happened to Enron.

  2. Reply
    financing_loans
    May 1, 2011 at 12:01 am

    Totally disagree.

    Never did one. I refused. Shame on the people that did but I never did one. Any loan officer that had 1 second of training would have known this would be a nightmare.

    Any loan officer or loan broker that did one of these loans… Should go to JAIL. Period.

  3. Reply
    Shawna Marie
    May 1, 2011 at 12:02 am

    The thousands of people that are out of jobs are not out of jobs because of the loan fraud. The criminals are out of work because of loan fraud. There are two different situations you’re talking about. The people who are going to jail deserve to be there, and the consumers they screwed over should be in court suing them. The job loss is due to lenders shutting down. It had nothing to do with breaking the law, it has to do with giving very high risk loans, as well as supply and demand. The majority of loans are sold on the secondary market to investors on wall street and the like. Those investors are no longer buying the high risk loans, thus putting companies out of business. Those “poor people” knew this was coming, and the smart one’s prepared for it and already found other jobs. There are those who are going to have to find a different line of work, and most of those people had no business being in the mortgage world to begin with. But for the one’s that are good at the job, there are plenty of jobs out there for them. I’m hiring here in Charlotte, NC 🙂

    Maybe no one remembers that there were no subprime loans 20 years ago, and in the late 90’s the subprime market dissapeared all together as well. The world is not going to shut down because subprime loans aren’t available anymore. It’s a hype, it always bounces back.

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