Suing Big Banks over Mortgages??

[petros]

I wonder if we had gone to one of the big mortgage firms it would be different. Meaning we would have had to send checks to different banks as the loans were swapped back and forth.

Small local banks and Credit Unions are the only place I'd put my moolah if I lived in US.

 

[EagleSmack]

double post!

Small local banks and Credit Unions are the only place I'd put my moolah if I lived in US.

Thats where its at brothaaaa!

 

[Ocean Breeze]

The federal agency overseeing Fannie Mae and Freddie Mac filed lawsuits against 17 financial institutions in an attempt to recover losses from risky mortgage investments.



The lawsuits were filed against many of the nation's largest Wall Street and financial firms, including Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase.



In the complaints, the Federal Housing Finance Agency contends the institutions misrepresented the quality of the investments' underlying loans


Source: CNN breaking news mailing.

 

[taxslave]

If the government requires subpoenas to investigate, just how do you expect investors to perform due diligence? The ratings agencies were saying green light.

It is called knowing the industry you are investing in. Just the fact that these are bundled mortgages should make an investor leery. I have held mortgages on occasion and I made dam sure there was enough equity to cover my investment should a problem arise. Didn't get top rate but they were secure.
A good example in Canada is Sino Canadian Forest Products. We thought it looked too good to be true. Turns out we were right. But I know a fair amount about forestry and lumber.