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Wall Street titan hit with $5.1 billion in penalties over shoddy mortgage bonds

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Mortgage Professional America | 11 Apr 2016, 11:45 AM Agree 0
A key financial firm will pay billions to settle a probe into its handling of mortgage-backed securities
  • Gman | | 11 Apr 2016, 03:06 PM Agree 0
    This won't penalize Sachs at all. They will recoup this fine from there customers. Let's quit fining these companies and start holding people accountable and putting them in jail.
  • BAILEY M CAMPBELL ABBM | | 11 Apr 2016, 04:10 PM Agree 0
    It's NOT their JOB to VET the mortgages. The investor sets the guidelines and it's the lenders job to VET the mortgages prior to selling them to the investor. Where do all those mortgages come from to be sold off on the market? INVESOTRS such as but not necessarily Fannie Mae, Freddy Mac, ect. Securities companies are not required to have underwriters for mortgage! Nor do they have to have a mortgage mortgage originators license!!!

    Further, most investors like Fannie Mae have to come with an approved/eligible report from Fannie Mae it's self prior to purchase any mortgage. Put the responsibility of these bad CMO's on the original purchasing investor who wrote the f'n guidelines! If they are bad mortgages then they are bad guidelines and never should have made it to the trading desk in the first place.
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