I just finished the rounds of watching Sunday morning pundit t.v. Again, one republican after another bashed homeowners in needs of stimulus help, and not one word was said about mortgage and accounting fraud. Nothing. I did not hear a single discussion about how these sub prime mortgage companies allegedly violated TILA and RESPA laws in the servicing of these loans and how this could contribute to people being "under water" or how these violations have a domino effect in escalating the problem. According to William K Black, in testimony before the Agriculture Nutrition and Forestry Committee in October of 2008, a former banking regulator turned whistle blower, this represents 40% of the foreclosures today.
http://www.shareholdercoalition.com/...
He says that in those loans 80% contain accounting fraud. Why is no word of this mentioned in response to the stimulus bill and attacks by republicans or democrats. Why is there a complete black out on this topic?
