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 "Bank of America":

"… le consumers nearly 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 r …"

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 "General Electric Co.":

"… these people should have to answer to somebody about what happened.” …"

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 "Mortgage":

"… rs as a high-earning salesman at a smaller lender in Los Angeles, Citizens Mortgage, before he took a job in mid-2007 as a Mortgage sales rep at a Washington …"

"… it did on fixed-rate home loans, according to internal company documents. Mortgage investors on Wall Street loved them because their growing loan balanc …"

"… other question.As early as 2006, BusinessWeek had called them “Nightmare Mortgages,” declaring they “might be the riskiest and most complicated home loa …"

Bank of America to pay record settlement over Countrywide abuses

By John Dunbar

Bank of America to pay record settlement over Countrywide abuses

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 "president":

"… time, even for repeat borrowers. Kinecta Alternative Financial Solutions president Randy Dotemoto told iWatch News that the federal truth-in-lending law know …"

"… with six months to repay. There are no additional fees. John Milazzo, the president of Campus Federal Credit Union, said it loses about $30 on each payday-sty …"

"… an 100 percent. But the architect of the loan program, Douglas Fecher, the president of Wright-Patt Credit Union in Dayton, Ohio said that annualized inte …"

"… he credit unions from the third-party payday vendor. Orlando credit union president John Neusaenger said that his credit union makes “very little” in refe …"

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

Excerpts from this story referencing "general manager":

"… ice departments probably should review them carefully.Brian Pritchard, the general manager who reported the car stolen, declined to respond to Center requests for co …"

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

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 "New Century":

"… to pay $102 million to settle an investigation into its relationship with New Century Financial Corp.Morgan Stanley packaged risky loans “that were destined t …"

"… .Morgan Stanley packaged risky loans “that were destined to fail” from New Century into securities and loaned the now-defunct lender billions of dollars, Coa …"

"… or poor underwriting,” but were lucrative for subprime lenders, she said.New Century was once the third-biggest subprime lender in the United States, according …"

"… lic Integrity investigation into the financial meltdown. From 2005 to 2007 New Century made at least $76 billion in high interest loans.As part of the agreement, …"

WaMu bank executives aware of rampant fraud

By David Heath

WaMu bank executives aware of rampant fraud but failed to act

WaMu bank executives aware of rampant fraud

By David Heath

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

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 "Investigative Fund":

"… at Long Beach Mortgage were quickly going into default.The Huffington Post Investigative Fund analyzed a bundle of mortgages sold to investors, known as Long Beach Mort …"

"… of the loans were in default before they were even sold on Wall Street.The Investigative Fund matched the addresses of the loans to real estate records as well as to fo …"

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

Excerpts from this story referencing "finance":

"… ’s report were striking. At least 21 of the top 25 subprime lenders were financed by banks that received bailout money — through direct ownership, credit …"

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 "Florida":

"… ties backed by subprime loans.Ocwen Financial Corp. Inc., West Palm Beach, Florida — $553.4 millionIn April 2004, Ocwen Federal Savings Bank’s chairman a …"

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

Excerpts from this story referencing "New Century":

"… ranked No. 2 in the Center’s recent list of Top 25 Subprime Lenders, or New Century Financial, ranked No. 3. That’s a significant gap, because those non-dep …"

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 ***

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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