http://www.latimes.com/business/la-fi-malibu1-2008jul01,0,6094738.story
It appears to me that the HML should do their due diligence when it comes to the appraised value and other aspects of the deal. Maybe these HML’s didn’t have a list of appraisers/ brokers that they trust. However, I don’t think the govt. should get involved in regulation of private investor affairs. I also don’t think ANY lender/borrower should be bailed out by the govt./ taxpayers.