BMO: How much is that house worth?

in Bank, Bank Fees, Banks

Not only was the Bank of Montreal a victim of a mortgage fixing scam which could cost upwards of $30 million, they started having worries about this 4 years ago? Good lord how long does it take to figure out you are being defrauded of millions?

I can’t find anything on the BMO web site talking directly about the Fraud investigation, but it sounds like some very shady tricks buying less valuable houses and then getting mortgages at much higher valuations, because the neighbourhood these houses are in, are highly valued. Interesting trickery, hopefully whomever is responsible will get their time in court.

This sounds like a strictly criminal activity (i.e. a real fraud), whereas the housing bubble in the US and the derivative low interest high risk loan trickery, was more implied malfeasance, but still not a good thing to read about (especially given I am a BMO share holder).

As can be seen the stock has taken a wee bit of a beating because of this:

Looks like the bank is looking for folks to drag into this investigation as well. Stay tuned this one might get very smelly and messy very quickly.

{ 1 comment }

  • Thicken My Wallet May 7, 2010, 9:01 AM

    The entire risk management surrounding mortgage applications needs to be revisited.

    Reply

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