DISQUS

DISQUS Hello!  The comments on this profile are unclaimed and thus are unverified.

Do they belong to you? Claim these comments.

mikew's picture

Unregistered

Feeds

aliases

  • mikew

mikew

Hace 11 meses

in Another (large) nail in the coffin - Wachovia closes wholesale on Blown Mortgage
Dwight, Interesting that you think brokers create more fraud than retail reps. As a broker i can lose everything i own if fraud happens. I have to pay for multiple insurance policys, have seminars for my employees, do several hours of continuing ed every year about fraud.

A retail rep --at worse-loses their job and gets another one with another large retail mortgage operation.

I for one am sick of everyone thinking fraud only occurs at the wholesale level. I have been in the biz for about 20 years and have numerous friends on both sides of the origination. Believe me when i tell you the retail originators are or were very much willing to do fruad.

Wachovia and Wamu are in the mess they are because of they tried to be too big in an industry that was poised to contract. Both companies we apparently run by idiots.
1 reply
rcarrillo Mikew- Not only was their fraud at all levels, but banks are the ones that set the rules by which brokers had to work. The bank sets the guidelines and hires, trains and supervises the underwriters that approve these loans. They gave away "free money" at ridiculous standards, brokers just sold them (irresponsibly in some cases).

Dwight - In some states, like NC, brokers need to have background checks, credit reports, take a class and exam. While I feel the requirements could still be higher, bank loan officers (like Wachovia ones) are exempt from even these regulations... they are in no database and the state has 0 knowledge of who they are. Brokers have far higher standards to enter the industry and remain there.

Of course there are bad brokers that commit fraud. There are also lenders that do the same.


Speaking of "sane and honest lending practices" ignores that Wachovia sought out and purchased one of the largest Option ARM lenders there was. They advertised their happy, dancing people about the "Pick-a-Pay" Option ARM until 2 months ago.... well past when warnings were clear that these programs were sold by their loan officers inappropriately. Plenty of reports showed how their own loan officers were given incentives to sell this product to anyone that would call. Now they have to pay the price for that business decision.

Hace 11 meses

in Wachovia posts record $8.9 billion quarterly loss on Blown Mortgage
Wachovia is in big trouble. This is what you get when managaement can't stop buying new banks and lenders. I remember when they were First Union bank. They came into Philadelphia to buy Corestates (who had already purchases too many banks). They promised the great city of Philadelphia that they would keep the home office in Philly. As soon as the deal closed they shut down philadelphia headquarters.

Sorry for no tears they were a greedy greedy bank.
Returning? Login