getagrip_already (9,497 posts)
4. Actually there were banks that did that - it caused the last banking meltdown.......
There was something the banks called liars loans. Really. There was no income verification, or verification of valuations of assets.
But when the bubble burst.......
The need of some DUpipo for this to be true is
PATHETIC! Along with residential mortgages and commercial mortgages being different marketplaces with different rules and regs (e.g. the Clinton MalAdministration rule that banks wanting approval to open new branches had to give more home loans to minorities, qualification be damned), in the years before the 2008-2009 crash home equity loans that reduced owners' equity to 5% or 0% or possibly -5% were quite the thing.
FBaggins (25,010 posts)
10. Unfortunately, that isn't true
These aren’t consumer mortgages that are being sold to Fannie Mae (and thus need to be underwritten to a specific standard).
Banks making commercial loans can look at a statement claiming that the collateral is worth $300 million and decide for themselves that it’s only worth $200 million… but still make the loan because they only need it to be worth $150 million to serve as collateral.
If anything, the fact that the banks involved didn’t just take his word (combined with the fact that the loans didn’t go bad) hurts the case against him (and may be why it isn’t a criminal prosecution)
MIRT Alert!
MIRT Alert! MIRT Alert! Member committing truth!!! REEEEEEEEEEEEEE!!!!!!!!!!James is also using civil court because the burden of proof is significantly lower, to the point that Trump all but has to prove he, his family members, and companies are innocent.
