None of them are connected. The mortgage fraud that he commited was very typical pre 2006 since the banks/ and an unregulated mortgage industry were giving away mortgages with very little down payments.
You apply for a mortgage, inflate your income, give a phone w2( if they even ask for it), put very little down, and then get a 500 k mortgage. Now 6 months later, your home is appraised at 600k and you get a home equity, now you pocket 100 k and buy a few more homes and get home equities on those. thats basically what he did and many others.
How bout the millions who went out and obtained mortgages they really couldnt afford. Everyone blames wall street. Of course no one blames themself.
Walls streets trading of mortgage backed securities is a part of the mortgage downfall but not nearly the whole reason. Everyone thought they were real estate pro's and blindly dove into real estate despite having no experience. Hence all those fuckin house flipping shows, the bubble always bursts .