by Calculated Risk on 3/25/2011 09:38:00 PM
Friday, March 25, 2011
Joe Nocera at the NY Times has a strange tale: In Prison for Taking a Liar Loan
Mr. Engle’s is a tale worth telling for a number of reasons, not the least of which is its punch line. Was Mr. Engle convicted of running a crooked subprime company? Was he a mortgage broker who trafficked in predatory loans? A Wall Street huckster who sold toxic assets?This sounds more like "fraud for housing" than "fraud for profit" - although from Nocera's description, it doesn't sound much like fraud at all (and the reasons Engle was investigated are bizarre). Read the story ... but it is actually rare for the government to prosecute "fraud for housing" cases. Why this one?
No. Charlie Engle wasn’t a seller of bad mortgages. He was a borrower. And the “mortgage fraud” for which he was prosecuted was something that literally millions of Americans did during the subprime bubble. Supposedly, he lied on two liar loans.
Also this story prompted me to reread Tanta's brilliant piece: Unwinding the Fraud for Bubbles
Posted by Calculated Risk on 3/25/2011 09:38:00 PM