Ten Years of Evidence: Was Fraud a Force in the Financial Crisis?

This article synthesizes the large literature regarding the role of various players in residential mortgage-backed securities (RMBS) securitization at the center of the 2008–09 US housing and financial crisis. Underwriting banks facilitated wide-scale mortgage fraud by knowingly misreporting key loan characteristics underlying mortgage-backed securities (MBS). Under the cover of complexity, credit rating agencies catered to investment banks by issuing increasingly inflated ratings on both RMBS and collateralized debt obligations (CDOs). Originators who engaged in mortgage fraud gained market share, as did CDO managers who catered to underwriters by accepting the lowest-quality MBS collateral. Appraisal targeting and inflated appraisals were the norm. RMBS and CDO prices indicate that the marginal AAA investor was unaware of pervasive mortgage fraud and ratings inflation, but these factors were strongly related to future deal performance. The supply of fraudulent credit was not uniform, but clustered in certain geographic regions and zip codes. As these dubious originators extended credit to those who could not afford the loans, the credit expansion led to house price booms and subsequent crashes in these zip codes. Overall, a consistent narrative based on substantial research indicates that conflicts of interest, misreporting, and fraud were focal features of the financial crisis. (JEL G01, G21, G28, K42, R30)

7. The Purchase Deed and Mortgage

The principal purpose of the purchase deed is to transfer the legal estate in the property from the seller to the buyer. The transfer of a legal estate is void unless it is made by deed. This chapter discusses types of purchase deed; joint representation of borrower and lender; commercial mortgages; the mortgage deed; and post-completion steps; and mortgage fraud.

A Practical Approach to Conveyancing

A Practical Approach to Conveyancing takes a pragmatic, rather than academic, approach to conveyancing. It provides practical solutions to everyday problems encountered by conveyancing practitioners wishing to offer a cost-effective and efficient service. This volume offers a detailed and up-to-date exposition of the key principles and procedures underpinning the conveyancing process. The volume provides practical guidance on each stage of commercial and residential conveyances, with realistic sample documentation to aid in an approach of all aspects of a conveyancing transaction with confidence. This 22nd edition has been fully updated with recent developments in the area, including new SRA Standards and Regulations, the updated Conveyancing Protocol and Property Information Form, and the latest Law Society practice notes dealing with important issues such as client information requirements, flood risk, mortgage fraud, contaminated land, and money laundering. It also considers the new code for leasing business premises.

Mortgage lending in Ukraine: analysis of influence factors and scammers

This article reveals the concept of "mortgage lending", defines the subject of mortgage lending, determines the percentage of buyers from the total population in the region who bought a mortgage loan in Ukraine and analyzes items related to the concept of mortgage.The work studies the factors that affect the demand for mortgage bank lending in Ukraine. Uneven demand for mortgages in different regions of Ukraine has been revealed. Among the reasons for the decline in mortgage lending, the level of per capita income in the regions of Ukraine was analyzed, the migration of the population was studied, and the cost of one square meter of housing in the regions of Ukraine was determined. The dynamics of the change in the exchange rate of the US dollar against the hryvnia was also analyzed. The US dollar in 2010-2020 was not stable, which became a huge lever in the development of mortgage lending. Graphically shows the change in inflation indices for 2017-2020 in percent. This article examines the dynamics of mortgage loans over the past 10 years and their share in the total loan portfolios of households. Due to this, it is determined that in Ukraine mortgage loans make up only a small share of all loans in general. The concept of "fraud" is also analyzed and its types are defined, in particular those related to mortgage bank lending. Examples of the most high-profile mortgage lending scams in Ukraine are given, such as the Elite Center, Wojciechowski's new buildings, Villa Sofia Residential Complex, and Kotsyubynsky Residential Complex. The most common mortgage fraud schemes are highlighted. Scams have been analyzed in terms of the subjects of fraudulent schemes. Based on the study, the main measures to avoid negative consequences from various parties to the loan agreement were identified.