New task force investigates Liar Loans

Government officials have stepped up an investigation into whether crimes were committed when the subprime-mortgage market collapsed. Although a task force was announced in January this is a new effort. Primary focus will be on non-doc and liar loans, what the lenders knew about them, and how they were packaged and sold on the secondary market. Many of our readers sent reports about funding of illegal loans.

One lender/broker that seems to raise questions is Accredited Home Lenders. Many of their loans were purchased by HSBC Finance, formerly known as predatory lender Household International. When loans fail to meet federal guidelines they pose a problem. Here is one report concerning HSBC and Accredited.