A Policy's 'Flip' Side
Safeguards that the mortgage industry's aggregators have adopted to avoid fraudulent flipping schemes could be hurting the nascent recovery in housing prices.
Matthew Pineda, the president of Castle & Cooke Mortgage in Salt Lake City, said some markets in Nevada and Arizona have bottomed and are drawing investors who are bidding up property values.
But many purchases are falling through because there is no outlet for the loans.
If a property has previously changed hands in the past year, and the new buyer wants to pay 20% or more above what the last one paid, the aggregators — large banking companies — won't buy the loan, Pineda said. That effectively prevents his firm from making such a loan.
Take a Number?
When David Lowman, JPMorgan Chase & Co.'s mortgage chief, invited distressed borrowers to "
During a
"Come to me," Lowman replied.
Minutes later,
They probably would have done so even if Lowman had answered differently. The borrowers were organized by Bruce Marks, the chief executive of Neighborhood Assistance Corp. of America, who is known for his
Quotable …
"Loan originators constantly threatened to quit and go to Countrywide or elsewhere if their loan applications were not approved."
James G. Vanasek, chief risk and chief credit officer at Washington Mutual from 1999 to 2005, at a
"I don't trust Goldy on this. They are smart, but this is swimming with the sharks. They were
Former Wamu CEO Kerry Killinger, referring to Goldman Sachs Group Inc., which his subordinates wanted to retain as an adviser, and to Countrywide Financial Corp., in a