CSBS Conference Amelia Island Plantation

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CSBS ConferenceAmelia Island Plantation

• May 22, 2008

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• MORTGAGE FRAUD
• Bob Simpson
• IMARC

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Lets talk about

• Smart People
• Tulips in crisis
• Used cars and home loans
• Greenspan
• Monty Python
• I love Perris (CA) in the Springtime
• BBQ Wisdom
• Wheres the end of this?

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Lets Start Here
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Smart People

• You know who you are

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2. Tulips in Crisis

• Lesson One Supply and Demand

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Tulips in CrisisLesson Two Mania
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Pamphlet from 1637
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4. Used Cars and Home LoansWhat can I do to get
you in a new house today?
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Loans for everyone

• Dropped standards
• No ratios
• No income verification
• Complete speeding without the lights on

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Approved!
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How was the trip?
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Greenspan
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Greenspan

• The players from top to bottom
• Policy Makers Greenspan Mr. Irrational
  Exuberance
• Investors Wall Street - didnt you know these
  loans were bad?
• Lenders sure but you kept buying them
• Rating Agencies thumbs up, life is good
• Originators They deserve everything I gave them
• Realtors real estate always goes up
• Buyers you mean I can afford this?
• Flippers by night, parking valet, by day, real
  estate mogul
• Indicted this is just too easy

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Monty Python

• Youre Not Qualified!!!!!!!

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Who Makes What?
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Whos Not Qualified?
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Funded

• 500,000 loan to a hairdresser
• She makes 3,000 per month
• She knew nothing about the rentals

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Funded

• 450,000 loan to Pizza Guy
• He makes 2,300 per month

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Funded

• 400,000 loan to 11/hr Car Mover
• One phone call would have saved huge loss

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I love Perris in the Springtime
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BBQ Wisdom

• Stated problem, not sub-prime
• Lenders created the problem
• Sothebys Auction
• No money in common sense

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History it may not repeat, but it rhymes
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Historical Prices relative to income
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Flipping on the headlightsWhere does this all
end?

• Gains since 2000 will be gone
• No more real estate shows on TV
• People wont talk about real estate
• Regulation hand me those car keys!
• Pretenders gone 10, 9, 8, 7, 6, 5
• Normal people can qualify for home

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• MORTGAGE FRAUD
• Bob Simpson
• IMARC