SMALL FRY ALSO PLAYED A ROLE

The investment banksters weren't the only players in the Great Housing Bubble...

Former Phoenix loan officer pleads guilty to fraud
Associated Press
Posted on May 31, 2011 at 3:32 PM
Updated today at 3:32 PM

PHOENIX (AP) — A former Phoenix loan officer has pleaded guilty in two separate fraud cases.

The U.S. Attorney's Office said Tuesday that Paige Kinney entered guilty pleas to 13 charges of mortgage, bankruptcy, bank and mail fraud in federal court on Friday.

In one case, Kinney admitted to her leadership role in a $40 million mortgage fraud involving Countrywide Home loans.

From January 2005 to December 2007, Kinney admits that she and others recruited straw buyers to purchase homes by obtaining loans using false information.

The loans, totaling nearly $40 million, were obtained based on inflated property appraises, and the extra $9 million was diverted to Kinney and others in the case.

The U.S. Attorney's Office says Kinney also declared bankruptcy and tried to hide assets and liabilities by changing her name.