[Rick Lee]

I'm sure it's far more than 1% fraud. But that doesn't mean fraud is the cause of the subprime implosion. Fraud has always been around and always will be and always will be involved in more than 1% of mortgages. Way, way too generous credit and underwriting guidelines are the cause. That does not constitute fraud. If it did, why haven't we seen investors and heads of all the bankrupt big lenders doing the perp walk? And I think it also goes to prove that our current credit reporting system, while seemingly arbitrary and unfair, is actually a pretty good forecasting tool for people's ability and willingness to repay loans. If you have a 580 FICO, you have no business getting anything close to 100% financing on stated income for around 8% interest. And that was a pretty common and LEGAL thing about a year ago.