Countrywide Mortgage Hustle Turns Out Not to Be Fraud
ByLet’s say that there are two kinds of mortgages in the world: Acceptable and Unacceptable. You want to buy Acceptable mortgages, but not Unacceptable ones. I make the mortgages, in my mortgage factory, and I know which ones are Acceptable and which are Unacceptable. But you do not. I sell the mortgages to you.
One day I come to you with 100 mortgages to sell. And you ask: “Are these Acceptable?” And I say: “They sure are.” And they are. And you buy them. And it is good. Next week, I come back and sell you 100 more, and promise you that they are all Acceptable, and they are. But later, I decide to change things up. I once again come to you with 100 mortgages and tell you that they are all Acceptable, and you once again buy them. But actually, this time, 30 of them are Unacceptable. And I know that, and you don’t. You find out eventually. This is a thing that happens from time to time, in the mortgage market, and elsewhere. We call it Fraud. And if I do it every week for several years, and you end up buying thousands of Unacceptable mortgages before realizing it, we call that Really Quite a Lot of Fraud…
Countrywide Mortgage Hustle Turns Out Not to Be Fraud
