The Mortgage Meltdown of 2006-2010: A Crisis of Fraud, Plausible Deniability, and Failed Legal Oversight

By Daniel Edstrom *
September 24, 2024

The mortgage meltdown of 2006-2010 wasn’t just the result of risky loans or Wall Street’s greed. It was a perfect storm where nearly every step of the process—from mortgage origination to foreclosure—was marred by misrepresentation, fraud, and systemic negligence. Central to this crisis was the culture of plausible deniability, where every participant could claim ignorance of wrongdoing, allowing the entire system to collapse without anyone being held fully accountable. And even when the crisis hit, the legal and regulatory system showed significant leniency toward financial institutions while homeowners were left to face severe consequences.

Continue reading “The Mortgage Meltdown of 2006-2010: A Crisis of Fraud, Plausible Deniability, and Failed Legal Oversight”

Title Crisis – Part II – The Documents used to Foreclose are Fraudulent

Title Crisis – Part II – The Documents used to Foreclose are Fraudulent

By Daniel Edstrom
DTC Systems, Inc.

The following was just posted on Neil Garfield’s blog, livinglies.wordpress.com.  It is reposted here with the following comments.  These are fabricated documents placed into the title record at the county recorders.  In non-judicial states these documents do not need to be recorded to foreclose as those foreclosing can instead file a judicial foreclosure and prove their claim.  Because they have no claim and cannot prove it, they knowingly, willingly and without any regard for the consequences, choose to corrupt the land title records instead.  To read about this choice, read the Hooker vs. BofA ruling from a Federal District Court judge out of Oregon: Hooker-v-BofA_and_MERS – Congratulations to Oregon Attorney James Stout for his work on this case.

From Neil Garfield and Lynn Szymoniak (see Lynn Szymoniak in action on 60 Minutes here: http://www.cbsnews.com/8301-504803_162-20049744-10391709.html)

EDITOR’S NOTE (Neil Garfield): We know the foreclosures were gross misrepresentations of fact to the Courts, to the Borrowers and to the Investors. This article shows the crossover between the MegaBanks — sharing and diluting the responsibility for these fabrications as they went along. If you are talking about one big bank you are talking about all the megabanks. Continue reading “Title Crisis – Part II – The Documents used to Foreclose are Fraudulent”

Who to Contact Regarding Mortgage Fraud

Who to Contact Regarding Mortgage Fraud

By Daniel Edstrom
DTC Systems, Inc.

The following is a press release issued by the  Department of Justice FBI’s Sacramento Office.  It represents a fairly comprehensive list of who is going after mortgage fraud.  While this press release covers the Sacramento and Fresno areas of California, it is highly likely there is a similar task force in your area.

Department of Justice Press Release

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For Immediate Release
June 16, 2011
United States Attorney’s Office
Eastern District of California
Contact: (916) 554-2700 (916) 554-2700

U.S. Attorney Announces Results of Mortgage Fraud Prosecutions in 12 Months Since Operation Stolen Dreams Continue reading “Who to Contact Regarding Mortgage Fraud”