This morning Joe Nocera demonstrated that the biggest bankers were very much involved in the worst elements of the subprime mortgage mess.
Nocera supplied a big bunch of documents that JP Morgan Chase sent out to mortgage brokers promoting no-doc home loans and other dodgy subprime practices.
Here’s some more evidence of the culpability of big banks. This advertisement from “Home & Land,” a Monmouth County, New Jersey real estate promotional magazine from the summer of 2005 shows just how loose lending practices became towards the end of the boom. Apparently, Chase’s ‘Simply Signature’ mortgage program involved very little beyond just signing up for a mortgages.
This is so bad it’s almost entertaining. It’s good to keep this kind of thing in mind whenever someone tells you that only non-bank mortgage lenders were engaging in the worst kind of home lending during the boom. The banks were certainly very deeply involved in this practice.