Relevant:
- ‘Ghost collateral' haunts loans across China's debt-laden bank system
- Four Whistleblowers Who Sounded the Alarm on Banks' Mortgage Shenanigans
- Mortgage industry whistleblower wins case against Bank of America
- Sue Your Bank, Keep Your Home, Repeat (BLOOMBERG ON BROOKSTONE LAW)
- Investors Putting Bad Loans Back To Lenders - This Is Only The Beginning.
2010-05-11 — go.com
"In interviews and in court records, 10 former fraud investigators at seven of the nation’s biggest banks and lenders—including Wells Fargo (WFC), IndyMac Bank, and Countrywide Financial—describe corporate cultures that allowed fraud to thrive in the pursuit of loan volume and market share. Mortgage salesmen stuck homeowners into loans they couldn’t afford by exaggerating borrowers’ assets and, in some cases, forging their signatures on disclosure documents. In other instances, banks opened their vaults to professional fraudsters who arranged millions of dollars in loans using “straw buyers,†bogus identities, or, in a few instances, dead people’s names and Social Security numbers."
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Comments:
Dinochick at 09:38 2010-05-12 said:
I am surprised this story did not have a thread created. It is one of the best stories regarding the collapse of the industry.. Yes, I admit, I blew the whistle a few times. I am from old school mortgage banking, with a career that spans decades, and I did not like the direction it was going since the 90's. The truth is out. Wall Street would not have had bad loans to sell if there had been diligence from the beginning. I still hear that comment, "just fund it" or "just approve it" ... in my nightmares. Permalinkadd a comment | go to forum thread
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