July 13, 2008

HousingPANIC Quote of the Day

"I would reject a loan and the insanity would begin. It would go to upper management and the next thing you know it’s going to closing. I’m like, ‘What the Sam Hill? There’s nothing in there to support this loan.’”

—Audrey Streater, former Indymac underwriting team leader, June 2008


Anonymous said...

That's called mortgage fraud

Anonymous said...

Any why didn't she call the cops?

Anonymous said...

Because Mgmt wanted to help put people in a home, they where helping with home ownership.

Anonymous said...

"Any why didn't she call the cops?"

Because whistle blowers lose their jobs, homes, and usually their families. You could look it up. I've been there done that. I can't afford ethics anymore.

Anonymous said...

Yes, TRUE. I know of managers in other companies who also did the same and when the loan was approved anyway because they "needed the commissions", they were complacent and did not see themselves as conspirators because after all "they didn't approve it". Too many Pontius Pilates washing their hands after handing the matter over.
In fact, let's start nominating Pontius Pilates and exposing them. P. S. The guy/girl who said about whistle blowers and ethics-Yes, they do lose their job, house, etc. but if you recall what we are told about evil in our society, who was in charge of all the possessions of this world anyway? A deal with the devil, no matter how small is still an agreement condoning evil. Yes, you may have to lose your shirt in whistle blowing, but remember sometimes your very life may be required of you when you try to stand up for what is right. They stoned Stephen to death didn't they? This is what is WRONG. Too many people are caught up in possessions. They are afraid of losing them. Well, soon you are going to lose them anyway. There is going to be a depression and you won't have your job, car or house. Ask yourself then if it was all worth it to deal with evil and remain silent.

Underwriter said...

That's right, whistleblowers lose their jobs.

This kind of fraud happens all the time, are you kidding. Especially when a manager or senior manager needs that loan to hit a goal and qualify for an over-ride commission or a free trip to Hawaii.

If you're the loan that can make that happen at the end of the month or year, the borrower could be a homeless guy and it would get funded.

Afterthought said...

To anonymous # 2:

Have you noticed that the DoJ has been completely disemboweled over the past 8 years?

There is no justice in America.

And we kNWO why.

Anonymous said...

Who the hell is Sam Hill?

Anonymous said...

When management wants something to happen, you don't want to be on the other side.

If the taxpayers have to bail out the bankers, than the banks should be run as Public Utilities. Lots of regulations. If management wants a pay raise, let 'em run it through four or five public oversight bodies, and then have the taxpayers vote on it.

Susan said...

Ugh, that's awful. I'm not looking forward to 2009.

Anonymous said...


I am sure all these lenders felt this way. And now we get to "enjoy" the flood. RIP America

Anonymous said...

Would it be a fair assumption 80% of first loans approved in 2004-2006 will fail?

Anonymous said...

all the while she's getting paid, if she felt like this was just like so wrong, quit. because she has a mortgage and a BMW payment, kids in private school and soccer and she wears Prada and has a Rolex watch, that is why she kept her mouth shut. You can't get all that working at McDonald's. Now they are going to be unemployed anyway and it wasn't her that told.

Anonymous said...

As far as being a whistle blower goes ,when you deal with evil ,you end up getting a lot of spears thrown at you .
These people are evil and they will resort to anything to destroy you and what your trying to expose .

The evil ,greedy ,lazy people usually end up crashing and burning because their evildoing becomes so extreme and destructive that it brings the house down ,such as we are seeing now .The problem is they try to bring the innocent down with them ,or transfer the blame,such as we are seeing now .

The evil market makers made up a big lie about homeowners needing to be bailed out ,so they could bail themselves out . Why are we allowing the evildoers ,that allowed and promoted this fraudulent housing mania to be the same parties that attempt to solve the housing crash ?

Why isn't there a independent investigation of Dodds and the whole group . Why is Dodds conducting bogus Congressional hearings when he should be on the stand ? Get rid of all of them before they put America into a pine box .Evil won't stop until it destroys everything ,so evil has to be stopped .

shtove said...

I sympathise with that woman.

Whistle blowers are issuing themselves with a personal invitation to hell.

How do you fix that?

Heavy reward for the whistle blower? That just leads to bullshit allegations.

Heavy punishment for the corrupt? They can afford lawyers who will spin it out to infinity.

I think the right to defend oneself has been stretched in to nonsense - push it in to the sort of shape where procedure can't be abused at great expense, and justice can be done quickly.

Anonymous said...

These are the opinions of Robert Sheridan, the CEO of a successful Chicago real estate & development company, Robert Sheridan & Partners. Their site is www.sheridanpartners.com/market.php.

All Financial Woes Are Created Equal

The failure of Indymac Bank – according to The New York Times the largest lender to fail in more than two decades – can be laid squarely at the feet of the lax (or nearly non-existent) underwriting that is part of (a big part of) the sub-prime mess. The chickens simply came home to roost.

The troubles of Fannie Mae and Freddie Mac are quite different. Freddie and Fannie underwrote loans carefully; their difficulties are a result of the unprecedented decline of home values.

In 2006, going against the conventional wisdom that single-family home prices never decline (they might stop rising for awhile, but they never decline), we predicted that single-family prices could decrease 10 to 20 percent. Painfully, that forecast turned out to be very correct – but also optimistic. We’re in a cycle now in which housing declines already are greater than at any time since the Great Depression of the 30s. And we’re not at the bottom yet.

If you don’t want to be disappointed by housing performance in the near term, disregard forecasts that the bottom is just around the corner – unless that corner is in Timbuktu. The bottom is NOT coming soon. And when it does arrive, it will not be obvious, like the bottom in the chart of the DJIA. The housing “bottom” will become apparent only in the rear-view mirror, when you realize that prices have stopped falling. Don’t expect a sharp rebound.

We will stay at the bottom for quite a while. How long that lasts will vary, as always, market-by-market.

Phil Collins