LS202 Study Guide - Final Guide: Lanny A. Breuer, Actus Reus, Predatory Lending
13 May 2015
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Document Summary
Relevance: predatory lending is a branch of fraudulence in corporate crime, ultimately shows the complexity in the obviously underdeveloped white collar crime scope. Facts: practice where a financial service provider measures potential risk in lending money and determining the appropriate premium that needs to be charged to insure the risk. Important process to ensure that the mortgagee/payee can pay back the loan. Due diligence underwriter" accesses risk in loans (buying risk portfolios), they are contract workers that do not get the big bonuses o o. Issues: mortgage industry drive to loosen standards of underwriting based on demand by new york - speculation that. Wall street was in control of underwriting rather than the mortgage industry itself. Largely discouraged to accuse any documents to be fraud despite suspecting that they were. Lacking power of whistleblowing in the legal and financial system.
