Fraud By Mortgage Companies Key Cause of Foreclosures

May 11, 2009

Figuring out just how much junk major banks have on the books was a goal of the federal government’s just released “stress test” for the 19 major banks receiving federal bail-out dollars. There’s still no clear answer, but we continue to see more evidence that a high percentage of sub-prime mortgages were steeped in fraud and have a high probability of failure.

The American News Project just released the video above which reports fraud carried out by employees of major sub-prime lenders, like Ameriquest, was a key factor in the mortgage meltdown. Consumer Warning Network first reported our findings on this very issue more than a year ago, and is cited in the ANP report. ANP reporter Lagan Sebert talks with a former Ameriquest employee who says her company promoted a system rife with fraud as a way to make profits faster.