In a statement, FDIC spokesman said the agency “will initiate lawsuits against former officers, directors and other professionals of failed institutions when the case has merit and is expected to be cost-effective.” As of March 15, the FDIC’s board had authorized the filing of lawsuits seeking to recover $3.57 billion from 158 officers and directors of failed banks. Lawsuits were filed against former directors and officers of about one-fourth of the 1,800 institutions that died in the savings-and-loan crisis of the 1980s and 1990s.
All I can say after reading about this is WOW! Is it possible that some of the people who were part of the problem are going to be punished? Is there really a possibility that Bankers will have to PAY and be held ACCOUNTABLE for the crimes they committed? Is there a shred of hope that the American People will see JUSTICE?
I guess my biggest issue with the whole situation is that I was in the business during those famous subprime days. I was both Processing and Underwriting during those “cash cow” days. I can (sadly) say that I was familiar with at least half of the (now imploded) sub prime lenders, and everyone knew that what we were doing was wrong. It was on the surface wonderful for those who were in the business and for people who wanted to buy a house, almost everyone qualified! So what was the problem? Well…let me share some of the things that I was aware of (and reported but NOBODY CARES!) I was aware of an Account Rep (the liaison who works for the Lending/Funding Institution and the Broker) who actually had an Appraisal Template and changed values on properties prior to loan submission. I knew of more than one Loan Officer who would “fill out” people’s tax returns with income and other tax related numbers and submit them to the processor/underwriter as “what the borrower provided”. I knew of a few Loan Officers (and Processors) who would “design” W-2’s complete with EIN numbers and deductions properly calculated to support the income required for approval of the loan. I once knew a Processor who created 36 months of money orders, complete with bar codes to support a non-existent rental history. SPEAKING from PERSONAL experience, I was terminated by my last employer (2010!)for FAILURE to ALTER FEDERAL DOCUMENTS! Yes readers, I was given a choice to resign or be terminated and I chose to be FIRED for NOT cutting people s signatures and pasting them on FEDERAL DISCLOSURES. For anyone who is wondering YES I reported to HUD, FHA, FDIC, and the FTC but it seems that nobody really cares. I had even reported and showed actual examples to several of the Employees Bank’s Corporate Employees, but the C.Y.A motto was put into place and yet again the Bank dirt was swept under the rug. The one theme that runs through ALL these examples is THE ACTUAL CLIENT/BORROWER DID NOTHING WRONG!!!! In most cases they were in no way, shape, or form AWARE of the fraud and deception that was going on. Is it fair they are the ones who may have gone to foreclosure because they really were not in a good position for a mortgage? Is it fair that the Loan Officer/Rep/Bank/Servicer all made the big bucks and in a lot of cases at least one of those people were completely aware of the incapacity of the borrowers ability to repay?
On a positive note I really want to give a “shout out” to one company Cardinal Financial Company located in PA. (I know that there are many companies who are just as ethical and are probably very deserving of the same high praises, but I have PERSONAL experience with this company) Alan Michael’s is the “Face” of this company, and his “back-room” are some of the most qualified people in the industry. His underwriters are some of the most educated and “common sense” underwriters in the business. They do not just look at a loan, they really do LOOK at a loan. They call upon the collective YEARS of experience and make underwriting decisions that BENEFIT the borrower. They APPROVE loans that are going to be “Good for the Borrower“; They DENY loans that are setting up a borrower for failure. Now my purpose for the Shout Out is because of the dedication and ethical way that this company has always conducted themselves, they turned away the loans that would have ended up in disaster for the homeowners forgoing perhaps a huge chuck of the subprime earnings. They chose ethics over huge profits and for this I really want to give Kudos.
One of my favorite people in the world is Elizabeth Warren, and I am fascinated by what she is brave enough to do with the Consumer Financial Protection Bureau http://www.nytimes.com/2011/03/19/business/economy/19nocera.html?_r=1&hp=&adxnnl=1&adxnnlx=1300550410-KqfT%20kU8v0KRZ2Is/sAoKw&pagewanted=all, I only wish I could have about 30 minutes of her time and blow the cover on some of the horrible lending practices I have witnessed. I think she might actually care.
My Mortgage Loan Coach 