Posted on 12/08/2011 6:34:35 AM PST by Wolfie
Ex-Countrywide Exec Blows The Lid Off The Systemic Fraud At The Company
Eileen Foster, a former senior executive at Countrywide Financial, told CBS's "60 Minutes" Steve Kroft that mortgage fraud was a way of business.
"From what I saw, the types of things I saw, it was — it appeared systemic. It, it wasn't just one individual or two or three individuals, it was branches of individuals, it was regions of individuals," she told Kroft.
Foster, an ex-senior vice president at the mortgage lender tasked with monitoring and investigating possible fraud, said she found evidence of widespread mortgage fraud during an investigation in Boston.
"All of the — the recycle bins, whenever we looked through those they were full of, you know, signatures that had been cut off of one document and put onto another and then photocopied, you know, or faxed and then the — you know, the creation thrown — thrown in the recycle bin," she said.
What's more is she told "60 Minutes" that Countrywide employees had a financial incentive to make these risky loans.
"The loan officers received bonuses, commissions. They were compensated regardless of the quality of the loan. There's no incentive for quality. The incentive was to fund the loan. And that's — that's gonna drive that type of behavior."
In 2008, Bank of America agreed to acquire Countrywide for basically scrap change. Foster received a promotion at BofA.
Shortly after, the mortgage lender was being investigated for possible fraud and she was going to have to speak with government regulators. However, she was ousted by the company before she could answer regulators' questions.
(Excerpt) Read more at articles.businessinsider.com ...
ACORN....
Obama worked on a lawsuit against Citibank forcing them to lower their credit standards for mortgages.
Now after having lied to the American people for over a decade while the problem got out of control, 60 Minutes is finally reporting on one small part of the problem as if it were news. They are conveniently ignoring the the active participants like Barney Frank and other Democrats who caused the problem.
The MSM are liars, it is as simple as that.
Bonuses, baby.
How appropriate that they used the recycle bins.
I wonder if this is the lady who called Rush yesterday, concerned about her identity for fear of lawsuits. She said she was going to be testifying in 2 or 3 cases as a fact witness. She was very impressive (Rush held her over a break, that says a lot!)
“Now after having lied to the American people for over a decade...”
THAT is more than mendacity. It is complicity!
I think of this as a preemptive, cover-the-gov’t-butt strike against a woman who called Limbaugh’s show yesterday, with a comprehensive, easy-to-follow explanation of the housing collapse. I rather expected that Rush would’ve posted this call prominently on his website, but don’t know if he has.
The woman spoke of her experience in the loan industry, where credit reporting agencies, acting under pressure from - guess who? - the government, were doing rapid credit rating resets to qualify prospective home buyers who would not otherwise be eligible.
These temporary boosts to credit scores would only last long enough for someone to qualify for a mortgage. At the next reporting cycle, the rating would revert to its former, non-qualifying level. Everybody knew that these loans would become toxic, but what the hell...
While not the sole reason for the collapse, this woman indicated that Fannie & Freddie were at the heart of the whole thing.
That would be because the Fed made it clear that denying a loan to one of Eric Holder's people for any reason was racist.
Government Pamphlet Taught Banks How To Finance A $70,000 Home With A $500 Downpayment
BIBLIOGRAPHY: Effective Strategies for Community Development Finance
LINK TO PDF: Effective Strategies for Community Development Finance
Once you abandon rational underwriting policies for one set of borrowers, you abandon them for all.
He could be heard saying. . . "It's only Rock-n-Roll but I like it". . . . .
http://en.wikipedia.org/wiki/Angelo_Mozilo
A place to start.
I predict Angelo will be killed in prison and so will Blago. However, their silences re ObamaAllah will protect their families.
And the Movie Lobby hires Dodd, incredible, even the Mafia has more honor for honesty.
And so were idiot soulless robot money grubbing capitalists. Private sector. Wall Street. Banksters. Don't fall for that stupid Rush Limbaugh stuff about it all being Gov't fault. Barney and Dodd are scum but are they worth millions today due to the real estate bubble? No.
Follow the money. See who profited the most. See who made millions and who made tens of millions
A Mortgage Broker on Rapid Credit Rescores for Subprime Loans
Honestly, dw, you’re wasting your breath. There is a contingent who refuses to believe that the banks and mortgage companies did anything wrong. If any loan was required to be approved by the government, then why would the loan officers have to falsify the data so the borrower could qualify? That’s what was going on, coupled with senior executives signing patenly false financial statements in violation of Federal law. Is the government complicit? Absolutely. Which is why the SEC and Justice Department haven’t even questioned the whistleblowers who have come forward.
Actually, ABC did a piece around 2004 or so about the housing bubble. It was on 20/20 I think. I remember a cartoon illustration of people (homeowners) chewing bubble gum and blowing bubbles that got progressively larger. The prediction was that all the chewing gum bubbles would pop and the people would have gum on their faces. I wish they’d pull that piece from the archives.
back at ya W
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