fraud @ countrywide yet no arrests have ever been made

[crockett]

If it was some guy stealing a bag of potato chips he's probably get 3 years.. Yet company wide fraud that helped cause the collapse of this countries housing markets as well as banks going under and the country's credit rating being dropped but no one gets charged with anything.

a bit from the 60 minutes investigation..

http://www.cbsnews.com/8301-18560_16...ctionContent.0


Kroft: How much fraud was there at Countrywide?

Foster: From what I saw, the types of things I saw, it was-- it appeared systemic. It, it wasn't just one individual or two or three individuals, it was branches of individuals, it was regions of individuals.

Kroft: What you seem to be saying was it was just a way of doing business?

Foster: Yes.

In 2007, Foster sent a team to the Boston area to search several branch offices of Countrywide's subprime division - the division that lent to borrowers with poor credit. The investigators rummaged through the office's recycling bins and found evidence that Countrywide loan officers were forging and manipulating borrowers' income and asset statements to help them get loans they weren't qualified for and couldn't afford.

Foster: All of the-- the recycle bins, whenever we looked through those they were full of, you know, signatures that had been cut off of one document and put onto another and then photocopied, you know, or faxed and then the-- you know, the creation thrown-- thrown in the recycle bin.

Kroft: And the incentive for the people at Countrywide to do that was what?

Foster: The loan officers received bonuses, commissions. They were compensated regardless of the quality of the loan. There's no incentive for quality. The incentive was to fund the loan. And that's-- that's gonna drive that type of behavior.

Kroft: They were committing a crime?

Foster: Yes.


further on to show Bank of America was also in on trying to cover it all up..


Foster, with the support of her boss, took the information up the corporate chain of command and to the audit department, which confirmed many of her suspicions, but no action was taken. In late 2008, with Countrywide sinking under the weight of its bad loans, it merged with Bank of America. Foster was promoted and not long afterwards was asked to speak with government regulators to discuss Countrywide's fraud reports. But she was fired before the meeting could take place.

Kroft: What would you have told 'em?

Foster: I would have told 'em exactly-- exactly what I've told you.

Kroft: Did you have any discussions with anybody at Countrywide or Bank of America about what you should say to the federal regulators when they came?

Foster: I got a call from an individual who, you know, suggested how-- how I should handle the questions that would be coming from the regulators, made some suggestions that downplayed the severity of the situation.

Kroft: They wanted you to spin it and you said you wouldn't?

Foster: Uh-huh (affirm).

Kroft: And the next day you were terminated?

Foster: Uh-huh (affirm).

Kroft: I mean, it seems like somebody at Countrywide or Bank of America did not want you to talk to federal regulators.

Foster: No, that was part of it, no, they absolutely did not.

[Failed]

We should not worry about such small issues as this and focus on stopping welfare, and other social services that are the real problems.

[Evil Chris]

That's just plain wrong.

[spunky99]

and the people who got the loan that they shouldnt have been able to are just as greedy as the people giving the loans.. so lets arrest them too

[Failed]

Originally Posted by spunky99

and the people who got the loan that they shouldnt have been able to are just as greedy as the people giving the loans.. so lets arrest them too

Come on, you can't possibly be that pro bank? You really believe those people were greedy? It couldn't possibly be that at the time, before the banks destroyed the economy, they were employed. It couldn't possibly be that the interests rates were jacked, or that other unfair practices were implemented by a corporation that operated with corruption as their playbook.

[crockett]

Originally Posted by spunky99

and the people who got the loan that they shouldnt have been able to are just as greedy as the people giving the loans.. so lets arrest them too

Did you read or are you just posting typical stupid right wing bullshit.. The people whom got the loans applied for a loan and gave country wide their correct financial info.

Countrywide then often refilled out new applications changing the financial info so that the people could then afford the loan "on paper". The customers were not committing fraud, countrywide was.

Not to mention a large amount of these loans were adjustable rate so the customers would see a much lower payment that they could likely afford not realizing that it would balloon up to something they couldn't.

The simple fact is the customers hired "professionals" for their loan services and the professionals committed fraud and mislead the consumers.

[JFK]

Originally Posted by crockett

Did you read or are you just posting typical stupid right wing bullshit.. The people whom got the loans applied for a loan and gave country wide their correct financial info.

Countrywide then often refilled out new applications changing the financial info so that the people could then afford the loan "on paper". The customers were not committing fraud, countrywide was.

They were hustling the comissions

[Nikki_Licks]

Well, country wide was bought by BofA, they merged the employees together and there still is fraud and criminal activity by BofA all the time and nothing is being done.

BofA is a piece of shit and should be held accountable as well as countrywide.

[Tempest]

Originally Posted by spunky99

and the people who got the loan that they shouldnt have been able to are just as greedy as the people giving the loans.. so lets arrest them too

And you're not greedy? EVERYONE is "greedy"... How many things do you own or have bought on credit? That's a wanting it now and not willing to save up for it and then buy it greed mentality...

[crockett]

Originally Posted by JFK

They were hustling the comissions

Pretty much this but the the guys at the top let it continue and tried to cover it up.

I saw it first hand just before the housing crash. I was shopping for a place out in Austin and was pre-approved for a loan up to what I wanted to spend. The Realtor I was using kept telling me he could get me much more loan than what I was approved for but I wasn't really interested in more because it was a for investment.

I did however let him see what he could do just to see if I could get a better rate with the guy he worked with (was countrywide). He ended up getting me pre-approved through country wide for a shit load more than I knew I could afford and it was also a ARM which I specifically stated that I wouldn't do as I'd only accept a fixed rate.

I mean I told the loan guy straight up that I would not accept a ARM loan and he still came back with one thinking I wouldn't notice or would just do it.

I was a bit turned off at how the realtor and the loan guy was trying to push me into more than what I wanted so I decided to hold off on buying. It wasn't but 6 or 7 months later that the housing market started crashing, so I guess they saved my ass for being dirty rat bastards.

[PiracyPitbull]

Originally Posted by Tempest

EVERYONE is "greedy"...

Not exactly.

A percentage of people choose to save their money and only buy whats necessary with saved funds.

Keeping up with the Jonses or buying the "latest and greatest" items on credit, that's for suckers. IMO anyway.

[crockett]

Originally Posted by PiracyPitbull

Not exactly.

A percentage of people choose to save their money and only buy whats necessary with saved funds.

Keeping up with the Jonses or buying the "latest and greatest" items on credit, that's for suckers. IMO anyway.

Well it's kinda hard to do that with a house. Buying a car or normal stuff with cash is likely doable for most people if they have a strict budget, but most can't afford to do the same with a house.

In reality in most situations it would be stupid to do so anyway. Say it takes some average Joe 15 years to save 100k to buy a average house with cash. If he had bought the house 15 years prior with a 100k loan he would likely have much more money in the bank at the end, because the house he bought 15 years ago for 100k would more than likely be worth much more even with interest paid. (assuming he wasn't in middle of housing bubble or crash)

[PiracyPitbull]

Originally Posted by crockett

Well it's kinda hard to do that with a house. Buying a car or normal stuff with cash is likely doable for most people if they have a strict budget, but most can't afford to do the same with a house.

In reality in most situations it would be stupid to do so anyway. Say it takes some average Joe 15 years to save 100k to buy a average house with cash. If he had bought the house 15 years prior with a 100k loan he would likely have much more money in the bank at the end, because the house he bought 15 years ago for 100k would more than likely be worth much more even with interest paid. (assuming he wasn't in middle of housing bubble or crash)

Yup, a house is a purchase on a totally different scale and I certainly agree on that.

Just not with Tempests comment that "everyone is greedy". Also, when he asks "How many things do you own or have bought on credit?" (I'm assuming that this just means general purchases bought via credit and not cars and houses lol) some people are going be able to say "none" simply because they're not tempted by the latest "must have accessories" and prefer instead to use the perfectly good previous versions that they already own and have bought with cash.

[Tempest]

Originally Posted by PiracyPitbull

Yup, a house is a purchase on a totally different scale and I certainly agree on that.

Just not with Tempests comment that "everyone is greedy". Also, when he asks "How many things do you own or have bought on credit?" (I'm assuming that this just means general purchases bought via credit and not cars and houses lol) some people are going be able to say "none" simply because they're not tempted by the latest "must have accessories" and prefer instead to use the perfectly good previous versions that they already own and have bought with cash.

I include a car in the entire "greed" thing.. Not a house as that's more of a long term investment and not something you can realistically save up for unless you're making a ton of cash every year... Which, some people actually do so they could but instead they buy a house that's more than they really need... The vast majority of people lease a car or take out a loan so they can get more than they actually need and so they don't have to be seen driving a "shit box" for a few years until they can save up the money to buy something better.

I still stand by the comment that everyone is greedy.. Everyone wants more, more, more... It's a fundamental aspect of humanity. The world revolves around greed... Do you actually need a lot of the "toys" you have? We all buy so much shit that clutters up our houses, fills our time and takes away from the more important things in life like family and friends. That xBox360 ain't going to be sitting next to your hospital bed when you're dieing.

[porno jew]

Originally Posted by spunky99

and the people who got the loan that they shouldnt have been able to are just as greedy as the people giving the loans.. so lets arrest them too

thanks for regurgitating right wing talking points. links pulled from your dead program.

[Barry-xlovecam]

Countrywide's officers got a walk in the Goverment's agreement with the Bank of America to acquire Countrywide -- maybe ... The truth will come out in time as it always does ...

[arock10]

"settled for $xxx but admit no wrongdoing"

We just need to get rid of the option for not admitting wrong doing when these cases are settled. Why they fuck would you have to spend millions of dollars to settle if you didnt do anything wrong?

[_Richard_]

Originally Posted by crockett

Pretty much this but the the guys at the top let it continue and tried to cover it up.

I saw it first hand just before the housing crash. I was shopping for a place out in Austin and was pre-approved for a loan up to what I wanted to spend. The Realtor I was using kept telling me he could get me much more loan than what I was approved for but I wasn't really interested in more because it was a for investment.

I did however let him see what he could do just to see if I could get a better rate with the guy he worked with (was countrywide). He ended up getting me pre-approved through country wide for a shit load more than I knew I could afford and it was also a ARM which I specifically stated that I wouldn't do as I'd only accept a fixed rate.

I mean I told the loan guy straight up that I would not accept a ARM loan and he still came back with one thinking I wouldn't notice or would just do it.

I was a bit turned off at how the realtor and the loan guy was trying to push me into more than what I wanted so I decided to hold off on buying. It wasn't but 6 or 7 months later that the housing market started crashing, so I guess they saved my ass for being dirty rat bastards.

interesting story

no market crash where i am, been hearing about 'the big one' for about 10 years now

kinda scary as i move into that age

[crockett]

Originally Posted by _Richard_

interesting story

no market crash where i am, been hearing about 'the big one' for about 10 years now

kinda scary as i move into that age

Yea truth be told, I bet the properties I was looking at would have been OK investments. It's not like I was looking to buy a McMansion, I was just looking at basic single family homes that were short sales or needed a bit of work. Basically stuff I could get cheap.

I was buying one and one of my good friends was also buying one and we were both going to work together to fix them up to flip. Being Austin is a city that people want to live in I kinda figure reasonable priced homes are probably still doing good out there.