Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWHOA: US Attorney sues Bank of America for $1 billion over mortgage fraud
http://www.bloomberg.com/news/2012-10-24/bofa-sued-by-u-s-for-1-billion-over-alleged-mortgage-fraud.htmlNice.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
3 replies, 808 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (9)
ReplyReply to this post
3 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
WHOA: US Attorney sues Bank of America for $1 billion over mortgage fraud (Original Post)
WilliamPitt
Oct 2012
OP
Enrique
(27,461 posts)1. expect to hear a lot about "the Hustle"
According to their claims Countrywide initiated the Hustle program, or HSSL which stands for High-Speed Swim Lane, in 2007 just as loan default rates were rising and Fannie and Freddie were tightening their loan purchasing requirements.
The goals of the Hustle, according to the suit, were high-speed and high-volume where loans move forward, never backward in the origination process. From the suit:
The goals of the Hustle, according to the suit, were high-speed and high-volume where loans move forward, never backward in the origination process. From the suit:
To accomplish these goals, the Hustle removed necessary quality control toll gates that could slow down the origination process. For example, the Hustle eliminated underwriters from loan production, even for many high-risk loans, such as stated income loans. Instead, the Hustle relied almost exclusively on unqualified and inexperienced clerks, called loan processors. Although loan processors had not been previously considered competent or knowledgeable enough to be permitted even to answer borrower questions, they were now required to perform critical underwriting duties.
bigtree
(86,005 posts)2. woot!
(I was just told - here at ole DU - that it's not a big deal)
bigtree
(86,005 posts)3. crickets
go figure . . . couldn't have predicted that response