This document summarizes the predatory lending practices that contributed to the subprime mortgage crisis and financial crisis. It describes how loan originators and brokers did not properly underwrite loans and verify borrowers' income and assets in their pursuit of high fees. These predatory loans were then bundled into complex financial instruments and sold to investors, spreading risk throughout the global financial system. The outcome was a rise in foreclosures that devastated communities and led to the failures of over 300 major US lending institutions since 2006.

1. Reclaimed Space

2. And Mummified a System

3. For a 300 Year Old Ponzi's

4. Predatory Structured Finance
The simple fact of the matter is that originating lenders (and the brokers who
bring borrowers to them) too often do not have to live with the consequences of
the loans they originate. If they were to have to take the loss on a predatory
loan, they would be less likely to originate such loans in the first place. There is
no doubt that the secondary, securitized market enables predatory lending.
But it is also that market which is often the real target of lending scams. (Equity-
skimming loans aside.) Many predatory loans cannot be justified under either an
income analysis or an asset analysis. The scam is designed by brokers (and
originating lenders) to get the money from the lender (or the secondary market).
The damage inflicted on the borrower is merely collateral. Why do you rob
banks? That's where the money is.

5. Hired Puppets For

6. Who Paid Loan Originators
To Have Borrowers, Sign here...

7. And Close, BUT
Disregard
Underwriting Guidelines
and
IRS FORM 4506-T
Verification

8. Striking Out Suitability and Sustainability

9. For Tier 1 Pay Grade: 4-5 figures

10. Directed Loan Servicers
(Tier 2 Pay Grade: 5-6 figures)

11. Bundle Mortgages
Create Mortgage Backed Securities (MBS)

12. Then Bundle Pools of Mortgage Backed Securities

13. Creating a Subprime Mortgage Derivative
This Subprime Vehicle Will Then Be

14. Sliced Up Into 5 Different Pieces Called Tranches
AAA all the way up, where 24% of the losses are below
that.
Taking Subprime Notes
AA
and Created
GE Quality Paper
Sold To Investors
A
Worldwide
What happens Next?
BBB
They are going to take the first losses from whoever
BBB- is in the pool (somebody stops paying)all the way to
about 8% of the losses they are are assuming in
return for a relatively high % rate

15. Loss Causation
The Analytics Of Loss Causation
A Material Misrepresentation
(or omission)
Scienter, i.e. wrongful state of
mind
A Connection With The Purchase
or Sale of a Security
Reliance, often referred to in
cases involving public securities,
markets (fraud on the market)
Economic Loss
“Loss Causation” i.e. a casual
connection between the material
misrepresentation and the loss.

16. Financial Armageddon

17. Since late 2006
311
Major U.S. Lending
Operations
Have quot;implodedquot;
special thanks to: www.ml-implode.com

18. 265. Lehman Brothers SBF
311. BankUnited - Wholesale
264. IndyMac Bancorp
310. Solstice Capital Group - HSBC
263. Mortgages Ltd.
309. MortgageIT
262. Wilmington Finance - Wholesale
308. HCL Finance Inc. - Wholesale
261. Accredited Home Lenders, Home Funds Direct
307. LIME Financial Svcs. - Wholesale
260. Assured Lending Corp. - Wholesale
306. Mortgage Network Inc. - Wholesale
259. Homewide Lending Corporation
305. Fortes Financial - Wholesale
258. Vanguard Mortgage & Title, Inc.
304. HSBC Mortgage Corp. - Wholesale
257. Chase Home Equity - Wholesale
303. CBRE Realty Finance
256. Chase Subprime - Wholesale
302. Franklin Bank, SSB
255. Evergreen Investment & Carnation Banc
301. Mortgage Lion, Inc. - Wholesale
254. Casa Blanca Mortgage/Shearson - Wholesale
300. HMS Capital, Inc.
253. Guaranty Bank - Correspondent
299. American Sterling Bank - Wholesale
252. Citi Residential Lending
298. CTX Mortgage Co. - Retail
251. Montgomery Mortgage Capital Company
297. Equity One Commercial
250. E*Trade Wholesale Lending
296. Coldstream Financial Svcs.
249. Shearson Financial Network, Inc.
295. Banco Popular North America - Wholesale
248. American Bank Mortgage Group - Wholesale
294. Ace Mortgage Funding, LLC
247. AmeriBanc Corp.
293. E-Loan
246. Washington Mutual - Wholesale
292. Gateway Bank, F.S.B. - Wholesale
245. Century Bank, F.S.B. - Wholesale
291. First Call Mortgage Co.
244. Diversified Mortgage, Inc.
290. Downey Savings and Loan - Wholesale
243. National Wholesale Funding
289. Prospect's Metrocities Mortgage - Wholesale
242. Centennial Mortgage and Funding, Inc./Award Mortgage
288. ComCor Mortgage - Wholesale
241. Fidelity Home Mortgage Corp.
287. Chevy Chase Bank - Wholesale
240. LMI Funding, Inc.
286. Washington Mutual - Retail and Warehouse
239. Millennium Mortgage - Wholesale
285. Hometown Commercial Capital
238. Origen Financial, Inc. (Correspondent)
284. Mid Atlantic Capital LLC
237. CitiMortgage - Home Equity Wholesale
283. Kemper Mortgage, Inc.
236. Bear Stearns Residential Mortgage
282. Liberty Mortgage Funding Co.
235. East West Mortgage Co. of VA
281. Freddie Mac
234. New Vision Residential Lending
280. Fannie Mae
233. Washington Savings Bank, F.S.B. - Wholesale
279. Pacific Community Mortgage, Inc. - Gold Reverse, Inc.
232. Macquarie Mortgages USA Inc.
278. Homecomings Financial, LLC
231. Global Mortgage, Inc.
277. Thornburg Mortgage
230. Unique Mortgage Solutions (UMS, LLC)
276. CSB Mortgage
229. First Franklin - Merrill Lynch
275. Carteret Mortgage Corporation
228. First National Mortgage Sources
274. Accredited Home Lenders, Lone Star Funds - Wholesale
227. Resource Mortgage (Wholesale)
273. Western Residential Mortgage
226. KH Financial
272. Liberty Home Lending
225. Lydian Mortgage
271. Equipoint Financial Network, Inc.
224. OMG Wholesale Lending
270. Ideal Mortgage Bankers, Ltd. - Wholesale
223. Saxon Mortgage (Wholesale)
269. Silver State Bank - Wholesale
222. Beazer Mortgage Corp.
268. Irwin Union Bank & Trust Co. - Wholesale
221. Allpointe Mortgage (Broker Program)
267. SunTrust Bank Equity Wholesale
220. Popular Warehouse Lending
266. Wachovia Mortgage, FSB - Wholesale
219. Allied Lending Corp. (Wholesale)

19. 168. Honor State Bank
167. Spectrum Financial Group
218. BF Saul Wholesale Lending
166. Priority Funding Mortgage Bankers
217. Community Resource Mortgage
165. BrooksAmerica Mortgage Corp.
216. Lehman/Aurora Loan Services
164. Valley Vista Mortgage
215. Residential Mortgage Capital
163. New State Mortgage Company
214. Maverick Residential Mortgage
162. Summit Mortgage Company
213. Countrywide Financial Corp.
161. WMC
212. First NLC Financial Services
160. Paragon Home Lending
211. First American Bank (Wholesale)
159. First Mariner Wholesale
210. Soma Financial
158. The Lending Connection
209. National City Corp. (Wholesale)
157. Foxtons, Inc.
208. Heartland Wholesale Funding
156. SCME Mortage Bankers
207. Homefront Mortgage Inc.
155. Aapex Mortgage (Apex Financial Group)
206. PNC Bank H.E.
154. Wells Fargo (various Correspondent and Non-prime divisions)
205. Family First Mortgage Corp.
153. Nationstar Mortgage
204. First Fidelity Financial
152. Decision One (HSBC)
203. BSM Financial
151. Impac Lending Group
202. 1st Choice Mortgage
150. Long Beach (WaMu Warehouse/Correspondent)
201. Wescom Credit Union
149. Expanded Mortgage Credit Wholesale
200. Coast Financial Holdings/Coast Bank
148. The Mortgage Store Financial
199. WaMu (Subprime)
147. C & G Financial
198. First Madison Mortgage
146. CFIC Home Mortgage
197. Southern Star Mortgage
145. All Fund Mortgage
196. TransLand Financial
144. LownHome Financial
195. Secured Bankers Mortgage Company (SBMC)
143. Sea Breeze Financial Services
194. ComUnity Lending
142. Castle Point Mortgage
193. Delta Financial Corp
141. Premium Funding Corp
192. BayRock Mortgage
140. Group One Lending
191. Empire Bancorp
139. Allstate Home Loans / Allstate Funding
190. Option One - H&R Block
138. Home Loan Specialists (HLS)
189. Citigroup - FCS Warehouse
137. Transnational Finance Wholesale
188. Charter One (Wholesale)
136. CIT Home Lending
187. Wells Fargo - Home Equity
135. Capital Six Funding
186. Paul Financial, LLC
134. Mortgage Investors Group (MIG) - Wholesale
185. Webster Bank (Wholesale)
133. Amstar Mortgage Corp
184. Fieldstone Mortgage Company
132. Quality Home Loans
183. Tribeca Lending Corp. (Wholesale)
131. BNC Mortgage (Lehman)
182. WAMU Comm. Correspondent
130. First National Bank of Arizona
181. Marlin Mortgage Company
129. Chevy Chase Bank Correspondent
180. Countrywide Specialty Lending
128. GreenPoint Mortgage - Capital One Wholesale
179. UBS Home Finance
127. NovaStar, Homeview Lending
178. MortgageIT-DB (Retail)
126. Quick Loan Funding
177. Edgewater Lending Group
125. Calusa Investments
176. ResMAE Mortgage Corp.
124. Mercantile Mortgage
175. Citimortgage Correspondent (2nds)
123. First Magnus
174. AMC Lending
122. First Indiana Wholesale
173. Liberty American Mortgage
121. GEM Loans / Pacific American Mortgage (PAMCO)
172. Exchange Financial (Wholesale)
120. Kirkwood Financial Corporation
171. FirstBank Mortgage
119. Lexington Lending
170. Bank of America (Wholesale)
118. Express Capital Lending
169. Diablo Funding Group Inc.

20. 117. Deutsche Bank Correspondent Lending Group (CLG) 66. Home Equity of America
116. MLSG 65. Opteum (Wholesale, Conduit)
115. Trump Mortgage 64. Innovative Mortgage Capital
114. HomeBanc Mortgage Corporation 63. Home Capital, Inc.
113. Mylor Financial 62. Home 123 Mortgage
112. Aegis 61. Homefield Financial
111. Alternative Financing Corp (AFC) Wholesale 60. First Horizon Subprime, Equity Lending
110. Winstar Mortgage 59. Platinum Capital Group (Wholesale)
109. American Home Mortgage / American Brokers Conduit 58. First Source Funding Group (FSFG)
108. Optima Funding 57. Alterna Mortgage
107. Equity Funding Group 56. Solutions Funding
106. Sunset Mortgage 55. People's Mortgage
105. Nations Home Lending 54. LowerMyPayment.com
104. Entrust Mortgage 53. Zone Funding
103. Alera Financial (Wholesale) 52. First Consolidated (Subprime Wholesale)
102. Flick Mortgage/Mortgage Simple 51. EquiFirst
101. Dollar Mortgage Corporation 50. SouthStar Funding
100. Alliance Bancorp 49. Warehouse USA
99. Choice Capital Funding 48. H&R Block Mortgage
98. Premier Mortgage Funding 47. Madison Equity Loans
97. Stone Creek Funding 46. HSBC Mortgage Services (correspondent div.)
96. FlexPoint Funding (Wholesale & Retail) 45. Sunset Direct Lending
95. Starpointe Mortgage 44. Kellner Mortgage Investments
94. Unlimited Loan Resources (ULR) 43. LoanCity
93. Freestand Financial 42. CoreStar Financial Group
92. Steward Financial 41. Ameriquest, ACC Wholesale
91. Bridge Capital Corporation 40. Investaid Corp.
90. Altivus Financial 39. People's Choice Financial Corp.
89. ACT Mortgage 38. Master Financial
88. Alliance Mortgage Banking Corp (AMBC) 37. Maribella Mortgage
87. Concord Mortgage Wholesale 36. FMF Capital LLC
86. Heartwell Mortgage 35. New Century Financial Corp.
85. Oak Street Mortgage 34. Wachovia Mortgage (Correspondent div.)
84. The Mortgage Warehouse 33. Ameritrust Mortgage Company (Subprime Wholesale)
83. First Street Financial 32. Trojan Lending (Wholesale)
82. Right-Away Mortgage 31. Fremont General Corporation
81. Heritage Plaza Mortgage 30. DomesticBank (Wholesale Lending Division)
80. Horizon Bank Wholesale Lending Group 29. Ivanhoe Mortgage/Central Pacific Mortgage
79. Lancaster Mortgage Bank (LMB) 28. Eagle First Mortgage
78. Bryco (Wholesale) 27. Coastal Capital
77. No Red Tape Mortgage 26. Silver State Mortgage
76. The Lending Group (TLG) 25. ECC Capital/Encore Credit
75. Pro 30 Funding 24. Lender's Direct Capital Corporation (wholesale division)
74. NetBank Funding, Market Street Mortgage 23. Concorde Acceptance
73. Columbia Home Loans, LLC 22. DeepGreen Financial
72. Mortgage Tree Lending 21. American Freedom Mortgage, Inc.
71. Homeland Capital Group 20. Millenium Bankshares (Mortgage Subsidiaries)
70. Nation One Mortgage 19. Summit Mortgage
69. Dana Capital Group 18. Mandalay Mortgage
68. Millenium Funding Group 17. Rose Mortgage
67. MILA 16. EquiBanc

21. 15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

22. It's Bad Enough That We Go Through:
Depression
Mass Layoffs
Unemployment
Homelessness
Bankruptcies
Stress
Suicide

23. Worse, We PAY

25. Created by These Puppets

26. Who Executed As Ordered:
Privatize Gains and Socialize Losses
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 12 Dec 2008 at
04:45:11 AM GMT is:
The estimated population of the United States is 305,258,550
so each citizen's share of this debt is $34,899.04.
The National Debt has continued to increase an average of
$3.74 billion per day since September 28, 2007!!

27. If You Love Our Country And Care For The World
Wake Up

28. Fight Back!!! Save Your Home, Save The Economy.
www.avenue-s.us www.avenue-s.info