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Wed Oct 24, 2012, 12:54 PM

WHOA: US Attorney sues Bank of America for $1 billion over mortgage fraud

http://www.bloomberg.com/news/2012-10-24/bofa-sued-by-u-s-for-1-billion-over-alleged-mortgage-fraud.html

Nice.

3 replies, 494 views

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Reply WHOA: US Attorney sues Bank of America for $1 billion over mortgage fraud (Original post)
WilliamPitt Oct 2012 OP
Enrique Oct 2012 #1
bigtree Oct 2012 #2
bigtree Oct 2012 #3

Response to WilliamPitt (Original post)

Wed Oct 24, 2012, 01:04 PM

1. expect to hear a lot about "the Hustle"

According to their claims Countrywide initiated the Hustle program, or HSSL which stands for High-Speed Swim Lane, in 2007 just as loan default rates were rising and Fannie and Freddie were tightening their loan purchasing requirements.

The goals of the Hustle, according to the suit, were high-speed and high-volume where loans “move forward, never backward” in the origination process. From the suit:

To accomplish these goals, the Hustle removed necessary quality control “toll gates” that could slow down the origination process. For example, the Hustle eliminated underwriters from loan production, even for many high-risk loans, such as stated income loans. Instead, the Hustle relied almost exclusively on unqualified and inexperienced clerks, called loan processors. Although loan processors had not been previously considered competent or knowledgeable enough to be permitted even to answer borrower questions, they were now required to perform critical underwriting duties.

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Response to WilliamPitt (Original post)

Wed Oct 24, 2012, 01:31 PM

2. woot!



(I was just told - here at ole DU - that it's not a big deal)

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Response to WilliamPitt (Original post)

Wed Oct 24, 2012, 02:17 PM

3. crickets

go figure . . . couldn't have predicted that response

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