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Deception and lies

Prior to the subprime crisis, the mortgage industry was blase about fraud, despite it reportedly accounting for a 25% underperformance rate in residential mortgage-backed securities between 2005 and 2006. But as the regulators weigh in, change is afoot reports Sarfraz Thind

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The US mortgage industry is trying to shake off the nightmare of the past nine to 10 months. Lessons are being learnt, and bitter pills swallowed. The lax lending and underwriting standards in the subprime business have been well documented. Now the spotlight is being shone on another key element of the subprime saga - mortgage fraud.

Last November, rating agency Fitch stated that poor underwriting

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