by California Lawyer, TF Metals Report:
As a follow-up to some earlier posts, this post brings into view the public perception component of the housing crisis, in real time, in a definitive, compelling manner.
Last week, in a quiet, bucolic part of this lovely state of California, the jury rendered a verdict in a predatory lending case.
Let’s recall the basic story:
(1) Lenders recklessly created residential real estate loans, out of thin air, granting loans to anyone who could fog a mirror. Radical new loan products emerged, such as no income no job loans, option loans, pick a payment, etc. This loan generation process generated fees to the lender for the loan origination. Other fees were tacked on to the loan, and many industries benefited, such as appraisers, realtors, insurers, as well as companies who built houses, and provided goods to furnish all the new houses filled with brand new home owners. The govt was fully supportive of this massive effort, too.
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