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No fraud in mortgage Hustle, former exec claims

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Mortgage Professional America | 16 Oct 2013, 06:00 AM Agree 0
A former Countrywide Financial executive testified Tuesday that the troubled Bank of America subsidiary wasn’t trying to defraud Fannie Mae and Freddie Mac when it sold them thousands of defective mortgages
  • Bruce A | | 16 Oct 2013, 08:23 AM Agree 0
    The Sub Prime product was available for reasons that God only knows putting aside greed. Fannie and Freddie purchased them based on underwriting guidelines at the time. We're supposed to feel sorry for the B of A making one of dumbest deals ever. I don't think so.
  • Elaine R | | 16 Oct 2013, 08:32 AM Agree 0
    Best deal ever for Countrywide, but worst deal ever for B of A. I feel sorry for Mairone.
    The only person to be actually named in the lawsuit, when there were so many others that could have been included. On the up-side, I don't believe they intentionally committed fraud. They just discovered a better way to do "stupid" mortgages that FNMA/FHLMC were buying in bulk from every lender.
  • gheinecke | | 16 Oct 2013, 09:32 AM Agree 0
    NONSENSE- The executive for bank of America had been trying to acquire Countrywide for years from Angelo Mozillo. Did anyone forget about the deals made for Christopher Dodd that were privileged deals that no one else could get? The co-sponsor of the Frank Dodd ACT? Bank of America figured that if they could remove the strongest wholesaler that consistently beat out their pricing that worked with mortgage brokers than the brokers had nowhere else to go. Dirty pool. The four largest banks and Wallstreet and the Federal Reserve had to find someone else to blame while they got rich. The bailout money over 50 billion to BOA bank of America took and bought the bank of CHINA.Jamie DImon the chairman of Chase so happens to be a board member . Can anyone say conflict.? Anyone know that Dianne Feinstein's husband was just awarded the contract to dismantle and sell the post offices for the hundreds of billions by OBAMA?
  • Chris | | 16 Oct 2013, 09:36 AM Agree 0
    No misrepresentation = representing all those bad mortgages were grade A quality. Countrywide made out like bandits when they were acquired by BOA. BOA I have some investment grade bridges for sale.
  • Rick | | 16 Oct 2013, 09:48 AM Agree 0
    I recall "stated income only" mortgages were common at the time. If you even tried to doubt the word of an applicant I bet some government agency would come down on you. Correct me if wrong, I wasn't involved in the business at this time but I remember "stated income only" mortgages were out there.
  • gheinecke | | 16 Oct 2013, 10:05 AM Agree 0
    Government blamed the Poster Child Countrywide for "liar Loans". Reality is these buyers had 720 scores and higher and substantial equity. Now once FNMA and FHLMCC wanted to do what they wanted to do the brainchilds of Washington came up with something called HARP. I was recently offered a refinance for an investment property simply because it fit the criteria. I gave them full tax returns and was creditworthy and BOA sent me a 1003 showing I was a housewife. SO called Liar mortgages never applied to non-owner occupied, but it was OK for the Gov't to allow this. Do as I say not as I do!! Time to oust the crooks!!
  • Diane | | 16 Oct 2013, 11:47 AM Agree 0
    Hey - how much did BoA make (and is still making) on servicing all those mortgages inherited from Countrywide that didn't go into default? What are the bottom line numbers really?
  • Mr B | | 16 Oct 2013, 12:11 PM Agree 0
    There is plenty of blame to go around, people can blame the Obama administration since they are the ones in the fish bowl now but weren't involved in any of the sub prime meltdown fiasco. You can blame the Clinton or Bush administration but they had no idea how bad it really would get. The one group no one dare go after is Wallstreet who was not only the conductor of this orchestra but the bus driver also!
  • Joe C | | 16 Oct 2013, 02:04 PM Agree 0
    And how much in SRP's did BOA hold back in recouping the money from correspondents after taking over Countrywide? How many companies did they shut down in their witch hunt? The big guys got the breaks and the small guys got the shaft. And the government took control of the mortgage
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