Former subprime executive making risky loans again

By Daniel Wagner

Andy Pollock, who led First Franklin's bad loan factory, is pushing interest-only loans at new firm.

Excerpts from this story referencing "WDB Funding":

"… r out. The veteran subprime executive has been named president and CEO of WDB Funding, the company announced last week. WDB is a national lender that provi …"

"… ly sank Merrill Lynch, which was forced to sell itself to Bank of America. WDB Funding is the third mortgage company Pollock has helped lead since rejoining the …"

"… not qualify for government guarantees because they carry more risk. WDB Funding’s managing partner said he is “ecstatic” to have nabbed Pollock. “ …"

Center 'Meltdown' series continues to expose abuses that could lead to the next economic crisis

By Bill Buzenberg

Four years after answering 'Who's behind the financial meltdown,' we follow up and see where those people are now.

Excerpts from this story referencing "Subprime lending":

"… five years later and their lavish lifestyles. The second installment, “Subprime lending execs back in business five years after crash,” tells the story of how m …"

Wells Fargo to pay $175M in lending settlement

By The Associated Press

Justice Dept: Wells Fargo to pay $175M to settle allegations of bias against blacks, Hispanics

Excerpts from this story referencing "Bank":

"… Home Mortgage. …"

Fraud and folly: The untold story of General Electric’s subprime debacle

By Michael Hudson

High-paid employees of fraud-plagued, GE-owned WMC Mortgage included ex-porn star, strippers

Excerpts from this story referencing "Amy Brandt":

"… ure helped it survive and grow.One of the forces behind its resurgence was Amy Brandt, who had gone from practicing law to peddling mortgages for WMC, quickly r …"

"… aid less than $200 million for the lender seven years before.GE asked Amy Brandt to stay on. She added CEO to her title. Internal documents obtained by&nbs …"

"… rime loan defaults were starting to rise across the industry in late 2006, Amy Brandt stepped down as WMC’s top executive. She told a trade publication t …"

"… o industry data tracker Inside Mortgage Finance.‘Living it up’And Amy Brandt?She was “living it up,” at least according to Businessweek.  …"

Ex-WaMu worker claims he was shunned for refusing to push toxic loans on borrowers

By Michael Hudson

Ex-WaMu employee says he fought pressure to sell toxic loans

Bank of America to pay record settlement over Countrywide abuses

By John Dunbar

Bank of America to pay record settlement over Countrywide abuses

Excerpts from this story referencing "Bank of America":

"… s occurred between 2004 and 2007, the peak of the subprime borrowing craze. …"

"… anic victims are identified in the complaint and will receive compensation.Bank of America in a statement said that it does not discriminate. The abuses occurre …"

Worst may be yet to come in foreclosure crisis, study says

Millions more homes at 'imminent risk of default' study says

Excerpts from this story referencing "Center for Responsible Lending":

"… diate, serious risk” of default, according to the study, released by the Center for Responsible Lending Thursday.Minorities are particularly at risk, according to the study. Alth …"

"… s in foreclosure or more than 90 days delinquent at about five million.The Center for Responsible Lending is a consumer-focused nonprofit advocacy group. …"

Credit unions remake themselves in image of payday lenders

By Ben Hallman

Credit unions remake themselves in image of payday lenders

Excerpts from this story referencing "Loans":

"… d employees of Louisiana State University, offers a “Money-Wise” loan. Loans from $100 to $345 are available, at an 18 percent interest rate, with six …"

Report: Car loans include billions in undisclosed charges

By Keith Epstein

Beyond regulation, auto lenders charge billions in hidden rate markups

Excerpts from this story referencing "Center for Responsible Lending":

"… efaulting on the loan and losing the car, according to a new report by the Center for Responsible Lending, a nonprofit, nonpartisan research and policy group.The report, which exam …"

"… ut of reach of the fledgling U.S. Consumer Financial Protection Bureau.The Center for Responsible Lending report examines hidden rate markups, the interest rate car dealers can add …"

"… f 2.5 percent on hidden markups,” says Delvin Davis, a researcher at the Center for Responsible Lending, “the added interest on that loan can be nearly $1700 for a new vehicle …"

Data shows Deutsche Bank was key patron of questionable mortgage lenders

By Michael Hudson

Data shows Deutsche Bank was key patron of questionable mortgage lenders

Buyer beware

By David Heath

New consumer agency powerless against dishonest auto lending practices

Excerpts from this story referencing "financial reform law":

"… said Rep. Barney Frank, a Massachusetts Democrat who co-authored the 2010 financial reform law. “We felt that consumers need protection in this.”The National Automob …"

"… cal deal in Congress last year that freed the industry from the Dodd-Frank financial reform law. Elizabeth Warren, the Harvard professor now advising President Barack Oba …"

Conservative think tank's plan would limit securitization of mortgages

By Amy Biegelsen

The American Enterprise Institute offered a plan today to eliminate the “bubble-inducing distortion” it blames for the recent financial cris

"The Monster": A guide to the subprime crisis

By Julie Vorman

Congratulations to my Center for Public Integrity colleague, Michael Hudson, whose new book debuted today as the No. 1 bestseller on Amazon.

16 cents on the dollar: Doing the math on Mozilo settlement

By Michael Hudson

In the end, Angelo Mozilo settled for pennies on the dollar. ...

Boiler rooms, foreclosure mills: The story of America’s mortgage industry

By Michael Hudson

The news about the nation’s foreclosure scandal has been coming fast and furious, driven by tales of backdated documents, false affidavits a

Morgan Stanley latest to settle with Massachusetts

Before Massachusetts Attorney General Martha Coakley gained notoriety as a failed Democratic candidate for the U.S. Senate, she was best kno

WaMu bank executives aware of rampant fraud

By David Heath

WaMu bank executives aware of rampant fraud but failed to act

Excerpts from this story referencing "false bank statements":

"… ge office that sales people sometimes cut and pasted borrowers’ names on false bank statements. As a result of shoddy lending practices, Washington Mutual had default ra …"

WaMu bank executives aware of rampant fraud

By David Heath

WaMu executives knew of fraud yet they failed to act, Senate investigation finds

Excerpts from this story referencing "false bank statements":

"… ge office that sales people sometimes cut and pasted borrowers’ names on false bank statements. As a result of shoddy lending practices, Washington Mutual had default ra …"

At top subprime mortgage lender, policies Were invitation to fraud

By David Heath

Long Beach Mortgage employees say firm routinely ignored warnings

Excerpts from this story referencing "Long Beach Mortgage Loan Trust":

"… estigative Fund analyzed a bundle of mortgages sold to investors, known as Long Beach Mortgage Loan Trust 2006-4. Even before Long Beach Mortgage sold this bundle of $1.9 billion w …"

"… sure, according to the Mortgage Bankers Association of America. But in the Long Beach Mortgage Loan Trust 2006-4, at least 44 percent of these mortgages ultimately ended up in fore …"

One year later: A meltdown retrospective

By Kat Aaron

Today marks a year since the collapse of Lehman Brothers, the biggest bankruptcy in U.S. history. As President Obama delivers a major speech

You broke it? You fix it.

By John Dunbar

Firms that fed off the subprime lending frenzy that devastated the banking system are lining up to collect more than $21 billion in taxpayer

Subprime loans were big business for struggling lender CIT

By Kat Aaron

Troubled lender CIT Group found itself on the brink of bankruptcy Monday, as concerns regarding its liquidity and debt mounted. The company

Mortgage fraud reports rise, but some fraud may still be undetected

By Kat Aaron and Nick Schwellenbach

Reports of suspected mortgage fraud — fueled by the current economic crisis — are up in 2008, according to two new reports by the FBI and th

Leaders of the nation’s No. 1 subprime lender charged by the SEC

By Kat Aaron

Angelo Mozilo, founder and former CEO of Countrywide Financial — the No. 1 subprime lender in America, according to a Center for Public Inte

Excerpts from this story referencing "chief financial officer":

"… Countrywide chief operating officer and president David Sambol and former chief financial officer Eric Sieracki are also facing fraud charges.The SEC alleges that Mozilo, S …"

Goldman settlement sends shiver through banking world

By John Dunbar

Goldman Sachs & Company’s agreement to pay up to $60 million to settle a Massachusetts investigation of subprime lending sends a sobering me

The Financial Meltdown: A Glossary

By Kat Aaron

Key terms about the financial meltdown

Excerpts from this story referencing "Subprime lending":

"… if a borrower defaulted on the loan without engaging in arbitration first. …"

"… rs.” According to former Federal Reserve Governor Edward M. Gramlich, “Subprime lending can be defined simply as lending that involves elevated credit risk.”Sub …"

No. 9 of The Subprime 25: HSBC Finance Corp./HSBC Holdings plc

Total high-interest loans 2005-2007: At least $50.3 billion ***

No. 11 of The Subprime 25: BNC Mortgage Inc./Lehman Brothers

Total high-interest loans 2005-2007: At least $47.6 billion ***

Excerpts from this story referencing "Lehman Brothers":

"… any overview Status: CLOSED. Aurora is still active, however. History: Lehman Brothers took an ownership stake in BNC in 2000 and acquired the lender in 2003. Fo …"

"… op managers, took the company private. In 2004, one of its partial owners, Lehman Brothers, bought it. In addition to owning subprime lenders, Lehman was also a top …"

"… rora Loan Services LLC (acquired in 1997). CEO: CEO: Richard Fuld (CEO of Lehman Brothers since 1994). Steven Skolnik replaced Kelly Monahan as CEO of BNC Mortgage …"

"… 0 5. Barack Obama $338,816 Investigations Settlements: • In 2003, Lehman Brothers was ordered by a jury to pay $5.1 million in civil damages to about 4,500 …"

No. 13 of The Subprime 25: Accredited Home Lenders Inc./Lone Star Funds V

Total high-interest loans 2005-2007: At least $29.0 billion

No. 15 of The Subprime 25: CitiFinancial / Citigroup Inc.

Total high-interest loans 2005-2007: At least $26.3 billion

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