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Thursday, Jan. 24, 2008 | None of the fraud would be possible, at least a good percentage of it, would not be possible, if the lenders had not set up the programs which encouraged this practice. Liability rests with the lender because the underwriting of such loan criteria is verifiable. Lenders wanted the loans on their books and scammers wanted to place them there. False income tax documentation – how is that possible unless the lender waived their right to the 4506 which would have directly and within hours verified whether or not the information was correct? The lenders did it on purpose. And realtors in the state of Texas can also originate loans, another huge conflict of interest. Shame on us for allowing it. The very ones that could have done something to stop this kind of thing were allowed to join in if you will. Forty years in the business has shown that it did indeed take a village to lead us down this path. I worked on this same type of case in California just last week.

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