Mortgage Fraud Is on the Rise, Infecting the GSEs

`` This would lead one to conclude that underwriters are still churning out loans to sell them into the secondary market to keep afloat, borrower representations and appraisal review be damned. The only difference is, the investment bankers who participated in the private market for these Mortgage Backed Securities [MBS] will no longer create or trade these ticking time bombs amongst themselves. Instead, underwriters now need Fannie Mae and Freddie Mac to pass along these tin nickels to some poor investor. Guess who is going to foot the bill to pass along these lemons?''