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86<br />
A former Vice President of Standard & Poor’s, Moe Saceriby<br />
agreed that homeowners were unfairly stigmatized. “Someone<br />
can talk about a poor homeowner who maybe didn’t deserve<br />
[a] $120,000 home but on the other hand there was someone<br />
on Wall Street making a $12 million bonus because of that<br />
deal. So we need to be sure that we allocate accountability<br />
properly.”<br />
Former Loan originator Dan Osso told me that the money<br />
that Wall Street was making was obscenely high, “from the<br />
Wall Street perspective, they realized that on [a] $100,000<br />
note, they can make $186,000 in real money. So the more<br />
loans they had, the more loans they could flip over. If the loan<br />
was $100,000 and they sold it for $120,000 they made $20,000<br />
immediately, in addition to getting their capital back.”<br />
I pressed him to elaborate, “There were reports that there<br />
was, what was called, suction from Wall Street. In other words<br />
Wall Street investment houses began to make billions on these<br />
securitized loans, on CDOs and other derivatives were pressuring<br />
the mortgage people at the local level. Give us more.<br />
Give us more. Give us more.”<br />
He replied: “Well the reason why Wall Street was putting<br />
the pressure, or the sucking sound that you referred to, on the<br />
loan originators is because of the profits that they were generating.<br />
When this whole concept first opened up and people<br />
realized the money that was to be made on the back end, trading<br />
the paper, they were essentially creating liquid cash from<br />
nothing. There was nothing there to back it up.”<br />
So as we see, the first level of the crime driven by massive<br />
mortgage fraud led to the second level, manipulation and<br />
exploitation/extraction by Wall Street.
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