Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Whistleblower says bank knew loans were shoddy

Notify me of new replies via email
Mortgage Professional America | 02 Oct 2013, 05:00 AM Agree 0
The Justice Department got a little help making its case against JPMorgan Chase & Co. from a company insider
  • Chris Hanna | | 02 Oct 2013, 06:27 AM Agree 0
    A classic line in American Greed , " I never saw it coming " , Angelo Mozilo , testifying in a government hearing after the monumental collapse of our American Economy , worse , Our government fueled this by buying the worst possible mortgages , Sold them , and gambled Millions of dollars away from our American citizens , a lesson of : Government , stay out of the / our business and govern only like it was intended to be .....
  • Cary Michael | | 02 Oct 2013, 09:39 AM Agree 0
    Ah JP Morgan Chase who had the NINJA to 95% LTV with a 680 FICO - but said it was the brokers that were to blame.

    The CEO is ultimately responsible for the actions of his company and/or employees.

    It's time for Mr. Dimon to be charged prosecuted and jailed for the financial fraudulent actions for JP Morgan/Chase.

    BTW there isn't an innocent person alive that would have to spend $18 Billion defending themselves.

    Until they put these bankers in prison they will continue to do the same.

    Look at Goldman Sachs they made $5Billion and only paid a $500,000,000 fine with ZERO prison time for anyone.

    If you could commit fraud for $5 Billion and only pay a 10% fine with no jail time, dollars to donuts says that the thought if not the action would cross your mind.
  • gheinecke | | 02 Oct 2013, 09:47 AM Agree 0
    The greedy pigs should be fried. Jamie Dimon kicked off the Board for a fierce conflict of interest. Stop blaming the brokers and play by the same rules the smaller entities have been forced to. Be careful what you ask for as change is all we will have left after Obama and the other cronies meddle further into the middle classes(if such a class exists anymore) business.I support the shut down only if Congress and Senate lose their benefits and pay!!!!!! Maybe they will learn how to cut down the outrageous spending this way.
  • Chris Hanna ~ GRI , REMAX | | 02 Oct 2013, 01:31 PM Agree 0
    Ah JP Morgan Chase who had the NINJA to 95% LTV with a 680 FICO - but said it was the brokers that were to blame. ~
    Typical , never assume responsibility , This is totally false , Brokers do not create mortgage products , the accounting dweebs calculate the yield of the product , time value of money , ROI , etc. , then counsel with the strategic thinkers who factor in risk and get it approved , then distribute it to the Broker , clearly much lower on the food chain , no offense to the broker . It all starts either at the top or near the top and only then is it introduced and implemented to the Broker and to the retail level , As a Realtor , we knew a bad mortgage will always be a bad mortgage , and with little or know regulation , this type of garbage mortgage will ultimately fail . Everyone knew it , it was only a matter of when ; Freddie and Fannie fueled it , by buying the mortgage , backing the mortgage and reselling the mortgage , they played the role as regulator , buyer and seller ...criminal is an understatement ..This travesty all could of been avoided had they upheld there duties to properly regulate , The Government has no business running any business , plain and simple , see how they run Obama Care ??

  • Wm Matz | | 02 Oct 2013, 03:35 PM Agree 0
    This is the ultimate irony. JPMorgan whiz kids invent the derivatives. But JPMChase risk quant Krishna Varikooty warns not to use with residential, only commercial. So JPMC did much less of the derivatives. Still, Chase had a big subprime arm.

    Further irony is that JPMC is fighting with FDIC over liability for WaMu mortgages FDIC sold to JPMC.

    I have previously posted my published rebuttal to Dimon's ill-considered attempt to blame brokers for the crisis. No sympathy there, Jamie. But you do have a legitimate beef with FDIC. As I recall reading that purchase agreement 3 years ago, FDIC was supposed to indemnify you for the WaMu garbage.
  • Karl Gerber | | 02 Oct 2013, 03:35 PM Agree 0
    How many of you Brokers told their clients, "say that you work overtime", "say that you have a second job", or this one "don't worry, you can refinance in 6 months". It's fraud and you all committed it!
  • Fix My Report | | 02 Oct 2013, 09:07 PM Agree 0
    The impact of the actions taken years ago, have been spilling out all over.

    Brokers sold mortgages and didn't have complete knowledge of the products. Banks didn't provide Brokers with he knowledge they needed.

    I would say that each party is 100% responsible for the actions taken and not taken. Attorneys representing financial institutions knew very little - as they usually do. They too are equally responsible here.

    But, has anyone heard of a law firm getting sued?
Post a reply