When there is a lot of money, even dirty money, to be had many people will overlook the law. And when 'everyone' is doing it, well, they call this phenomenon situational psychopathy. These folks are not psychopaths they are just easily influenced. Here are the characteristics of psychopathy according to Dr. Robert Hare, a respected expert.
Example – a paralegal is told by the wealth attorney he or she works for to ignore the fact a trustee sale is scheduled for less than a month after the Notice of Trustee Sale was recorded in the county.
The paralegal thinks this must be alright. Of course, the paralegal is wrong. But it takes a lot to stand up to your boss when the money is good.
The smartest people working for one of the oldest and most prestigious law firm in the United States mapped out how securitizations would take place. Did they know it was a scam? Yes, because they were smart – but also greedy.
Bernie Madoff used to walk the halls of Cadwalader, Wickersham & Taft (CWT) in New York City. This is the company who took on the Excel Mortgage Project which launched registering bonds for sale to the public, which bonds were based on pooled notes, a hybrid of debt and equity interests in and contingent claims to realty. This type of financial instrument had never before been sold to the public, though it had existed for about 25 years in the “private placement” market.
The entire staff of CWT, underwritten by the Bank of New York, supporting Excel, were charged getting these new-fangled “derivative” instruments past examination by the Securities & Exchange Commission (SEC).
And then you need more mortgages to be securitized to be added to these 'bonds,' right? No problem, house loans made to the unwary were rapidly available to be recycled as new notes.
And to facilitate this process mortgage electronic registration systems (MERS) came online. No more those old-fashioned ideas records mattered. And to finish the recycling guys like Tom and Kevin were needed to run sleazy operations like 'Quality Loan Servicing Corporation.' Yes, sell those homes to bottom feeders who are too dumb to even know they are breaking the law, and the cycle can begin again.
Scary? Yep. And as large and the Mortgage Fraud is it is only a symptom of the greed and avaricious behavior which you can see in what President Eisenhower called the Multi-National Corporations. The wealthy elite who own the media and our government.
So, why pick on poor little Tom and Kevin? Because they know better and we aim to make an example of them.