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Its A Real Liar Loan

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Its in the US, but here is the anatomy of a LIAR loan, not on a self Cert, not on anything other than a declared income mortgage.

http://4closurefraud.org/2011/01/13/fraudclosure-smoking-gun-liar-loans-jp-morgan-chase-loan-officer-lied-on-borrowers-loan-applications-to-make-numbers-work/

Over and over again, this is how loans were “funded”. It was not the borrower that knew what “numbers” to plug into the loan application to get them to go through. It was the “loan officers” who “massaged the numbers to make it work.

Check out the documents below. They represent a borrower who showed concern for how the “loan officer” filled out the loan application and his response. I have pulled out the key parts due to the fact that it is somewhat difficult to read.

From the exchange…

Concerns from the borrower…

I have the following concerns with the documents you sent me:

(1) I do not make $34,000 per month nor anything close to this figure. I am not

comfortable signing a document with a number I cannot document in some form.

(2) There are repeated mentions that this is an adjustable rate mortgage. I could find

no mention of the frequency and amount of the adjustment. I need this.

(3) I do not wish to escrow insurance or taxes. I will pay these.

(4) Apparently this is a $417,000 first and a $70,000 second. Where are the

documents for the second? What is the rate, how adjustable, what are the costs,

what IS the term’? Why are we doing it this way?

I will need the information and answers requested before I can execute and return the

documents.

Response from the “Loan Officer”

My comments in italics…

I hope all is going well. This email is in response to the fax you had sent me. I’ll’ address each numbered concern:

1. This is a stated income deal. We had to state an amount that will be consistent through each deal. There are certain ratios that have to be met for income to debt… This is the figure that made the ratio fit. Since you have ample equity (from an inflated appraisal) and assets (that are now gone), along with great credit, (not anymore) this is where the luxury of a stated program comes in. It will not need to be documented. There is a form 4506 (request for tax transcript) in the package that needs to be signed, it is only to verify that you FILE your taxes (this is why so many thought they were submitting documented income).

2. Talks about the adjustable rate, see document below…

3. Talks about the escrows, again see document below…

4. The route we took to get the best absolute rate, (biggest commission) was keeping the first mortgage at a “conforming” or “conventional” amount. $417,000 is that maximum amount. Once it went to a “JUMBO” or “Non-Conforming loan amount, the rate jumps .25%. The second mortgage of $70,125 is to avoid mortgage insurance and allow you to put less down. The idea goal would be to pay that one down as use it for future purchases.

I appreciate all of your business (sucker) and want you to be as comfortable with me as possible. I know we’ve had some delays (manipulating the numbers) that seem a bit silly, but I guarantee that I’m laying the foundations fore these deals and several more. Once we get these first few initial closed, it’s smooth sailing from there on out. If you’d prefer a sit down sometime this week please let me know. I know you gentlemen are busy, but I want you to be confident AND comfortable with me.

Respectfully

Marc

Marc S. Bristol

Senior Loan Officer

JP Morgan Chase Home Mortgage

Well, as you can imagine, the home is now in foreclosure…

Moral to the story is the Loan Officers were the Liars in the Liar Loans. How else could of the game worked?

Documents below…

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Its in the US, but here is the anatomy of a LIAR loan, not on a self Cert, not on anything other than a declared income mortgage.

http://4closurefraud...e-numbers-work/

Over and over again, this is how loans were "funded". It was not the borrower that knew what "numbers" to plug into the loan application to get them to go through. It was the "loan officers" who "massaged the numbers to make it work.

Check out the documents below. They represent a borrower who showed concern for how the "loan officer" filled out the loan application and his response. I have pulled out the key parts due to the fact that it is somewhat difficult to read.

Well, as you can imagine, the home is now in foreclosure…

Moral to the story is the Loan Officers were the Liars in the Liar Loans. How else could of the game worked?

You can start seeing the bigger internal (New York bankers) picture when you may recall that we found out the fraudsters [AAA] okaying & packaging up the bent CDOs with these non-mortgages were getting internal percentage payments from the bonuses of the bankster frauds who sold them on to other Global institutions.

See the quote I attached on the 12th post on The anatomy of a LL thread (for ref.)

Oh here it is again!

'Two years before the financial crisis hit, Merrill Lynch confronted a serious problem. No one, not even the bank's own traders, wanted to buy the supposedly safe portions of the mortgage-backed securities Merrill was creating.

Bank executives came up with a fix that had short-term benefits and long-term consequences. They formed a new group within Merrill, which took on the bank's money-losing securities. But how to get the group to accept deals that were otherwise unprofitable ?

They paid them. The division creating the securities passed portions of their bonuses to the new group, according to two former Merrill executives with detailed knowledge of the arrangement.

The executives said this group, which earned millions in bonuses, played a crucial role in keeping the money machine moving long after it should have ground to a halt.

"It was uneconomic for the traders" - that is, buyers at Merrill - "to take these things," says one former Merrill executive with knowledge of how it worked.

Within Merrill Lynch, some traders called it a "million for a billion" - meaning a million dollars in bonus money for every billion taken on in Merrill mortgage securities. Others referred to it as "the subsidy." One former executive called it bribery. The group was being compensated for how much it took, not whether it made money.

The group, created in 2006, accepted tens of billions of dollars of Merrill's Triple A-rated mortgage-backed assets, with disastrous results. The value of the securities fell to pennies on the dollar and helped to sink the iconic firm. Merrill was sold to Bank of America, which was in turn bailed out by taxpayers.

What became of the bankers who created this arrangement and the traders who took the now-toxic assets ?

They walked away with millions. Some still hold senior positions at prominent financial firms.

Edited by erranta

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Moral to the story is the Loan Officers were the Liars in the Liar Loans. How else could of the game worked?

Documents below…

:rolleyes::rolleyes::rolleyes::rolleyes:

And it did NOT only "happen in America".......... See all below. :rolleyes:

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:rolleyes::rolleyes::rolleyes::rolleyes:

And it did NOT only "happen in America".......... See all below. :rolleyes:

Yes, it didnt just happen in the US.

You had predatory liar loans, where if you walked into a lending office, they would fill out the documents for you, to gain a fee of course.

The banks new this, which is why they didnt verify the income when accepting the mortgage. They were going to make a few fees on top of the same mortgage.

They incorrectly accounted for the loan on the books, balance sheet fraud. The strong balance sheet allowed them to attract new funding.

The new funding allowed new loans to be made at higher prices, keeping the machine going. Like any fraud though, it gets discovered.

The shareholders of the banks were in the dark over this, they were victims of the fraud too.

The officers of the banks were the ones who perpetrated and gained from this fraud. The way that they conveyed the profits of this fraud to their own bank accounts was via excessive salaries and the BONUS.

This is why everyone is so mad about the bailout. It compensated bankers, for the frauds they committed!

And this is why everyone is so mad about ongoing bonuses at publically owned banks, RBS and Lloyds. The bonus is the means by which the profits from the fraud are conveyed to the perpetrators of the fraud.

Cameron and Clegg could stop the fraud at these two banks, as the government has a controlling interest. Instead it says their hands are tied? If I had a controlling interest, things would be different.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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