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 "Wells Fargo":

"… Wells Fargo Home Mortgage. …"

"… air-lending laws, the Justice Department announced Thursday. Wells Fargo, the nation's largest residential home mortgage originator, allegedly enga …"

"… gin rather than because of differences in credit-worthiness. Wells Fargo also will pay $50 million in direct down payment assistance to borrowers i …"

"… l surtax for African Americans in Miami in 2007 was $3,657." Wells Fargo noted in a statement that it has denied the claims. "Wells F …"

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 "GE":

"… ghly half a billion dollars to buy California-based WMC MortgaGE Corp.What GE got in the bargain, former WMC employees say, was a place where erstwhile …"

"… l, Riedel claims, went so far as to declare: “Fraud pays.”How well did GE address WMC’s fraud problems?GE says it did plenty to deal with the issu …"

"… o declare: “Fraud pays.”How well did GE address WMC’s fraud problems?GE says it did plenty to deal with the issue. Some ex-employees counter …"

"… it did plenty to deal with the issue. Some ex-employees counter that GE officials didn’t do enough to rein in illicit practices, despite warning …"

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

Excerpts from this story referencing "judge":

"… islead borrowers about how the loans worked and how much they would cost.A judge ordered the case into arbitration last year. It could be months befor …"

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 "Countrywide Financial Corp.":

"… f America will pay $335 million to settle allegations of discrimination at Countrywide Financial Corp., the troubled lender it bought in 2008. Countrywide was the nation’ …"

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

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

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 "National Credit Union Administration":

"… homes, and education without the profit motive of traditional banks. The National Credit Union Administration (NCUA), which supervises and insures about 4,600 federally-chartered credi …"

"… are permitted to charge for any other product.  Last September, the National Credit Union Administration raised the annual interest rate cap to 28 percent from 18 percent for cred …"

Report: Car loans include billions in undisclosed charges

By Keith Epstein

Beyond regulation, auto lenders charge billions in hidden rate markups

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

Excerpts from this story referencing "Citigroup":

"… work of “rogue” employees.Ameriquest stopped making loans in 2007, and Citigroup acquired its loan-servicing unit and its sister company, Argent Mortgage.A …"

Buyer beware

By David Heath

New consumer agency powerless against dishonest auto lending practices

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

Excerpts from this story referencing "Freddie Mac":

"… s for the recent financial crisis – mortgage underwriters Fannie Mae and Freddie Mac. The assessment stands at odds with the Center’s recent FactWatch which …"

"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. ...

Excerpts from this story referencing "Bank of America":

"… yment contract, it will be paid instead by Countrywide’s insurers and by Bank of America, which bought Countrywide in 2008.The government settled for less than it …"

"… ’re following someone off a cliff to know when to stop.”In early 2008, Bank of America purchased Countrywide, once worth as much as $26 billion, for a fire-sale …"

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

Excerpts from this story referencing "Ameriquest Mortgage":

"… created fake W-2 tax forms that exaggerated loan applicants’ earnings.At Ameriquest Mortgage, one of the companies I focus on in my new book about the subprime mortgag …"

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

Excerpts from this story referencing "Investment":

"… roup Inc. agreed to pay $60 million to settle similar charges, and Fremont Investment & Loan agreed to pay $10 million. The Massachusetts attorney general a …"

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 "bank executives":

"… One of the central unanswered questions of the financial crisis is whether bank executives knew fraud was rampant within their mortgage loans.A Senate committee tomo …"

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 "bank executives":

"… One of the central unanswered questions of the financial crisis is whether bank executives knew fraud was rampant within their mortgage loans.A Senate committee tomo …"

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 "Florida":

"… he previous seven years buying large financial institutions in California, Florida, Illinois and New York to make Washington Mutual — once a regional playe …"

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

Excerpts from this story referencing "First Franklin Corp.":

"… d buy National City Bank, a major subprime lender through its ownership of First Franklin Corp. (No. 4 on the Center’s subprime 25 list), reportedly with help from gove …"

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 "Bank of America":

"… k back to about $27 billion.Mozilo resigned from Countrywide in June 2008. Bank of America bought Countrywide for $4 billion in July 2008. While Countrywide did not …"

"… in July 2008. While Countrywide did not receive any federal bailout money, Bank of America has been given government protection against losses on $118 billion in ass …"

"… states for predatory lending practices. That settlement was reached after Bank of America acquired the lender, but was related to Countrywide loans. …"

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

Excerpts from this story referencing "bank":

"… assachusetts investigation of subprime lending sends a sobering message to banks that have backed subprime lenders.The amount is a pittance for a company …"

"… for securitization were sound. Investigators also looked into whether the banks were breaking state lending laws by financing “unfair” loans.Coakley …"

"… onday that “Goldman Sachs is pleased to have resolved this matter.”The bank has supplied funding to a number of other subprime lenders, according to t …"

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 ***

Excerpts from this story referencing "Charlotte":

"… ional, which became HSBC Finance Corp. in December 2004. The deal included Charlotte, N.C.-based Decision One, which was bought by Household in 1999. HSBC Fina …"

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

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

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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